Proactiveinvestors United Kingdom RM Secured Direct Lending https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom RM Secured Direct Lending RSS feed en Mon, 22 Jul 2019 04:17:12 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Investment Manager's Holding ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190718153718_14155153/ Thu, 18 Jul 2019 15:37:18 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190718153718_14155153/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190715070006_14148542/ Mon, 15 Jul 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190715070006_14148542/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190617070006_14112406/ Mon, 17 Jun 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190617070006_14112406/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190604144243_14098264/ Tue, 04 Jun 2019 14:42:43 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190604144243_14098264/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190516070006_14075860/ Thu, 16 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190516070006_14075860/ <![CDATA[RNS press release - Dividend Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190501145626_14059776/ Wed, 01 May 2019 14:56:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190501145626_14059776/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190501145236_14059769/ Wed, 01 May 2019 14:52:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190501145236_14059769/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190501145202_14059767/ Wed, 01 May 2019 14:52:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190501145202_14059767/ <![CDATA[RNS press release - Investment Manager's Holding ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190417070004_14043840/ Wed, 17 Apr 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190417070004_14043840/ <![CDATA[Media files - RM Secured Direct Lending off to a busy 2019 with five new investments ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13016/rm-secured-direct-lending-off-to-a-busy-2019-with-five-new-investments-13016.html Tue, 16 Apr 2019 11:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13016/rm-secured-direct-lending-off-to-a-busy-2019-with-five-new-investments-13016.html <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190416070013_14042084/ Tue, 16 Apr 2019 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190416070013_14042084/ <![CDATA[RNS press release - Portfolio Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190408070007_14031660/ Mon, 08 Apr 2019 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190408070007_14031660/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190401182517_14024387/ Mon, 01 Apr 2019 18:25:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190401182517_14024387/ <![CDATA[News - RM Secured Direct Lending pays out 6.5p dividend as investment yields increase in 2018 ]]> https://www.proactiveinvestors.co.uk/companies/news/217306/rm-secured-direct-lending-pays-out-65p-dividend-as-investment-yields-increase-in-2018-217306.html RM Secured Direct Lending PLC (LON:RMDL) has paid out a total dividend of 6.5p per share for its latest full year, in line with its targets, following an increase in the average yield of its investment portfolio.

The investment trust, which specialises in secured debt investments, reported that in the year ended 31 December 2018 its total loan investments had risen to £102mln from £76.9mln in 2017, while the average yield had increased to 8.55% from 8.23%.

READ: RM Secured Direct Lending to boost its firepower

Going forward, RM said it was aiming to pay out the same dividend in 2019, adding that there was a “strong pipeline of attractive opportunities” in sectors that were less exposed to the business cycle and wider equity markets.

RM’s net asset value (NAV) also rose in the year to £95.7mln from £56.3mln, while the NAV per share had fallen to 96.96p from 98.2p.

The total return, counting the ordinary share NAV and dividends, had risen to 5.5% from 2.8%.

The group’s portfolio had also grown to 35 debt investments from 23 in the prior year, while the number of sectors had widened to 14 from 11.

Post-period end, RM said it had made three new investments and one divestment, while the NAV per share had risen to 98.38p by the end of February.

Norman Crighton, RM’s chairman, said in the currently “volatile” market, the company offered shareholders “capacity to preserve capital, guard against inflation and rising rates, while generating attractive risk-adjusted returns”.

“The board remains confident in the long-term future of RMDL and believes the foundations are firmly in place for the portfolio to deliver strong and sustainable performance for our shareholders."

Crighton added that the company’s house view was the market was moving “into the latter stages of the credit cycle” and that they intended to focus on similar sectors which are currently within the portfolio.

“The weaker credit markets globally have allowed returns to increase and we also expect greater levels of investor protections to be included within lending documents as liquidity and credit starts to flow out of the market.”

In early trading on Wednesday, RM's shares were down 1.3% at 100.1p.

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Wed, 27 Mar 2019 08:25:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217306/rm-secured-direct-lending-pays-out-65p-dividend-as-investment-yields-increase-in-2018-217306.html
<![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190327070004_14016882/ Wed, 27 Mar 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190327070004_14016882/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190318070006_14005012/ Mon, 18 Mar 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190318070006_14005012/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190313102531_14000614/ Wed, 13 Mar 2019 10:25:31 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190313102531_14000614/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190313102308_14000608/ Wed, 13 Mar 2019 10:23:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190313102308_14000608/ <![CDATA[RNS press release - Result of Placing under Placing Programme ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190308070003_13994806/ Fri, 08 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190308070003_13994806/ <![CDATA[News - RM Secured Direct Lending to boost its firepower ]]> https://www.proactiveinvestors.co.uk/companies/news/215488/rm-secured-direct-lending-to-boost-its-firepower-215488.html RM Secured Direct Lending PLC (LON:RMDL) has announced plans to place shares to satisfy the demand for new shares and increase its investment firepower.

The company intends to issue shares at a pound a pop, 1.5p below last night's closing mid-market price.

READ:RM Secured Direct Lending shifts focus to non-cyclical sectors amid market volatility

The investment trust, which specialises in secured debt investments, said it has deployed all cash available for investment, including the money available from its £10mln revolving credit facility, but it still has plenty of attractive investment opportunities it wants to pursue.


 

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Thu, 28 Feb 2019 07:48:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215488/rm-secured-direct-lending-to-boost-its-firepower-215488.html
<![CDATA[RNS press release - PROPOSED PLACING UNDER PLACING PROGRAMME ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190228070015_13984444/ Thu, 28 Feb 2019 07:00:15 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190228070015_13984444/ <![CDATA[RNS press release - Dividend Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190227163239_13984182/ Wed, 27 Feb 2019 16:32:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190227163239_13984182/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190218070008_13971963/ Mon, 18 Feb 2019 07:00:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190218070008_13971963/ <![CDATA[RNS press release - Investment Manager's Holding ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190129133351_13950611/ Tue, 29 Jan 2019 13:33:51 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190129133351_13950611/ <![CDATA[News - RM Secured Direct Lending confident on delivering sustainable income and returns for shareholders ]]> https://www.proactiveinvestors.co.uk/companies/news/213540/rm-secured-direct-lending-confident-on-delivering-sustainable-income-and-returns-for-shareholders-213540.html Norman Crighton, chairman

What RM Secured Direct Lending does:

RM Secured Direct Lending PLC (LON:RMDL) is a UK-based closed-ended investment trust focused on secured debt.  

The company aims to generate attractive and regular dividends through loans sourced or originated by its asset management arm, RM Capital Markets Limited, with a degree of inflation protection through index-linked returns where appropriate.

The loans the company invests in are mainly secured against such assets as real estate, plant and machine or income streams like account receivables.

What it owns:

The group owns RM Capital Markets Limited, which provides advisory, capital raising and risk management services, a direct lending platform, and currency and fixed income trading services.

Within RM Capital Markets is credit asset management business, RM Funds, a fixed-income specialist with a focus on secured lending and debt investments.

RM Secured Direct Lending has the VT RM Alternative Income Fund, which invests primarily in listed equities within the alternative income sector, including real estate investment trusts and other trusts in areas such as asset lending, direct lending, peer-to-peer lending, infrastructure debt and equity, property, structured credit investments and renewables.

Inflection points: The net asset value at the end of February was 98.38p per share, compared to 96.96p at the end of last year.  For the 2018 financial year, total loan investments had risen to £102mln from £76.9mln in 2017, while the average yield had increased to 8.55% from 8.23%. The total return, counting the ordinary share NAV and dividends, rose to 5.5% in 2018 from 2.8% the previous year. RM paid a total dividend of 6.5p per share in 2018 and aims to increase the payout this year. The group’s portfolio has grown to 35 debt investments last year from 23 in 2017, while the number of sectors widened to 14 from 11. Since the start of the 2019 fiscal year, RM has made five new investments including in two hotel brands, Praetura Commercial Finance, the invoice discounting sector and a business that installs boilers for energy efficiency in homes. What the chairman says:

Norman Crighton, chairman of the company, said: "RMDL continues its track record of sourcing strong credit opportunities and actively deploying funds into high quality investments. We remain confident in our investment manager's approach in ensuring the portfolio is well balanced and set to deliver sustainable income and returns for shareholders."

What analysts think:

Analysts at Hardman & Co Research said: “RM Secured Direct Lending offers investors an ongoing 6.5% dividend yield, whose sustainability is supported by multi-year assets, a rising revenue yield and economies of scale.

“Credit, we believe, is well controlled, and we provide readers with a detailed review of its assessment, monitoring and recovery.”

The analysts added that it thinks the company’s gearing level is appropriate, the investment manager's interests are aligned to shareholders, and that any discount will be actively managed.

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Tue, 29 Jan 2019 07:26:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213540/rm-secured-direct-lending-confident-on-delivering-sustainable-income-and-returns-for-shareholders-213540.html
<![CDATA[Media files - RM Secured Direct Lending delivers 'strong' Q4 given wider challenging market ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11878/rm-secured-direct-lending-delivers--strong--q4-given-wider-challenging-market-11878.html Thu, 17 Jan 2019 14:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11878/rm-secured-direct-lending-delivers--strong--q4-given-wider-challenging-market-11878.html <![CDATA[News - RM Secured Direct maintains defensive stance as world economy slows ]]> https://www.proactiveinvestors.co.uk/companies/news/212799/rm-secured-direct-maintains-defensive-stance-as-world-economy-slows-212799.html Specialist debt trust RM Secured Lending PLC (LON:RMDL) is shifting its investment stance more towards non-cyclical sectors as it believes the world economy is slowing.

“Looking ahead into Q1 2019, the investment manager expects volatility to remain elevated and with investors focusing their attention on the macro-economic data, credit and equity markets will remain generally weak.

READ: RM Secured Direct Lending says all cash available for investment deployed during month of December

“Poor industrial production figures across Europe, released in January 2019, reinforced the widely held view that the global economy is slowing.

"Late-stage lending can be advantageous for the company as lending rates can rise, however, caution is warranted as these areas can still be affected by asset price declines."

Net asset value or NAV at the end of December was 96.98p or 1.22p lower than the end of November.

During the quarter there was one significant repayment (Exterion Media) one refinancing (Children’s Nurseries) and new investments in property bridging (3); receivables financing; Praetura Asset Finance and in a hostel property in Glasgow.

Shares are trading at 101.5p.

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Thu, 17 Jan 2019 13:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212799/rm-secured-direct-maintains-defensive-stance-as-world-economy-slows-212799.html
<![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190116070003_13935913/ Wed, 16 Jan 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190116070003_13935913/ <![CDATA[News - RM Secured Direct Lending says all cash available for investment deployed during month of December ]]> https://www.proactiveinvestors.co.uk/companies/news/212134/rm-secured-direct-lending-says-all-cash-available-for-investment-deployed-during-month-of-december-212134.html RM Secured Direct Lending PLC (LON:RMDL) said it has deployed all cash available for investment, during the month of December, and has subsequently utilised £2.40mln of its £10mln Revolving Credit Facility (RCF).

The FTSE Fledgling firm, which specialises in providing tailored debt solutions, said the cash has been deployed across four new transactions in the following sectors: telecommunications equipment, receivables & asset financing and real estate.

READ: RM Secured Direct says BoE rate rise should benefit its portfolio

It added that all four transactions, which were originated and structured by its investment manager, are consistent with the firm's stated investment policy, offering robust security packages and yielding cash coupons in excess of 8.00% per annum.

The group noted that the RCF, provided by OakNorth Bank, offers it flexible capital for general corporate purposes including to invest in its substantial pipeline of opportunities. RM pointed out that it does not incur any non-utilisation fees in connection with the facility.

The group said further details regarding the transactions will be detailed in the quarterly factsheet expected to be published on or around the 16 January 2019.

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Tue, 08 Jan 2019 10:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212134/rm-secured-direct-lending-says-all-cash-available-for-investment-deployed-during-month-of-december-212134.html
<![CDATA[RNS press release - Full Deployment of Cash & Utilisation of RCF ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190108100001_13927369/ Tue, 08 Jan 2019 10:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20190108100001_13927369/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181217070006_13905297/ Mon, 17 Dec 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181217070006_13905297/ <![CDATA[RNS press release - Dividend Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181127155056_13882424/ Tue, 27 Nov 2018 15:50:56 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181127155056_13882424/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181116070004_13869334/ Fri, 16 Nov 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181116070004_13869334/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181023115531_13839241/ Tue, 23 Oct 2018 11:55:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181023115531_13839241/ <![CDATA[RNS press release - Investment Manager's Holding ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181016133037_13830838/ Tue, 16 Oct 2018 13:30:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181016133037_13830838/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181016070012_13829661/ Tue, 16 Oct 2018 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20181016070012_13829661/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180920182145_13799124/ Thu, 20 Sep 2018 18:21:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180920182145_13799124/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180917070008_13792288/ Mon, 17 Sep 2018 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180917070008_13792288/ <![CDATA[RNS press release - Net Asset Value(s) ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180816114404_13758268/ Thu, 16 Aug 2018 11:44:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180816114404_13758268/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180814153345_13755323/ Tue, 14 Aug 2018 15:33:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180814153345_13755323/ <![CDATA[RNS press release - Capital Markets Day ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180813070003_13752182/ Mon, 13 Aug 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180813070003_13752182/ <![CDATA[News - RM Secured Direct says BoE rate rise should benefit its portfolio ]]> https://www.proactiveinvestors.co.uk/companies/news/202645/rm-secured-direct-says-boe-rate-rise-should-benefit-its-portfolio-202645.html RM Secured Direct Lending PLC (LON:RMDL) is well positioned to benefit from the recent increase in the Bank of England’s key lending rate.

The quarter-point rise in interest rates will see additional income flow through on the 55% of the portfolio that sterling floating rate loan exposures and which do not have a Libor floor, the company said in its interim results.

The investment trust, which specialises in secured debt investments, had already revealed details of its net asset value (NAV) performance in an update last month and confirmed in Friday’s interims that it generated a net asset value total return of 2.98% (dividends re-invested at NAV) and the ordinary share price has traded consistently at a modest premium to NAV.

READ: RM Secured Direct Lending says further market weakness would provide opportunities

At the half-year end, the ordinary share portfolio had grown significantly to 30 debt investments totalling more than £106mln, which represented roughly 98% of the committed capital excluding the undrawn revolving credit facility.

The average yield on investments is currently above the 8% target level at 8.27% but the investment manager is looking to raise it further over the coming months.

“There are some key takeaways from the portfolio statistics, the first being that during the six months to June 2018 there has been a steady rise in the number of investments linked to Libor from 39% to 55% of the portfolio, which is in line with the investment manager's desire to reduce duration risk within the portfolio, and not to take significant fixed rate exposure at this point of the interest rate cycle,” said Norman Crighton, the chairman of RM Secured.

“The investment manager has positioned the company's investments so that should interest rates start to move higher, investments linked to Libor will see an up-tick in financial return for the company,” he added.

“Secondly, the investment manager has increased the proportion of investments in the senior part of the capital structure, this has risen from 69% to 74%. The rationale for this adjustment reflects the investment manager's view around the overall economic environment, and the defensive nature of the company. Investments in the senior part of the capital structure, on average, have higher recovery rates than that of investments in subordinated, holding company or mezzanine positions.

“Finally, investments are spread across 15 sectors which provides broad sector diversity and are consistent with the desire to spread risk. Other key statistics are that the average yield on investments is 8.27% and there is one US dollar investment and two euro-denominated investments. These currency exposures are largely hedged back into sterling,” Crighton said.

The half-yearly target of a 3.25p dividend has been achieved and for the full year, the expectation is for a dividend of 6.5p.

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Fri, 10 Aug 2018 07:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/202645/rm-secured-direct-says-boe-rate-rise-should-benefit-its-portfolio-202645.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180810070103_13750719/ Fri, 10 Aug 2018 07:01:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180810070103_13750719/ <![CDATA[News - RM Secured Direct Lending's focus on non-cyclicals paying dividends ]]> https://www.proactiveinvestors.co.uk/companies/news/202666/rm-secured-direct-lending-s-focus-on-non-cyclicals-paying-dividends-202666.html Secured debt-focused investment trust RM Secured Direct Lending PLC (LON:RMDL) had a strong finish to 2017 and a solid first half of 2018.

Its net asset value (NAV) at the end of June eased to 97.85p from 98.59p at the end of 2017 but factoring in the 3.25p interim dividend, the trust generated a net asset value total return of 2.98% (dividends re-invested at NAV) in the first half of the year and the ordinary share price has traded consistently at a modest premium to NAV.

READ RM Secured Direct Lending says further market weakness would provide opportunities

After listing on the premium segment of the main market of the London Stock Exchange on December 15 2016, the company exceeded its first-year target return of 4% and remains on track to increase this to 6.5% for 2018.

The portfolio continues to grow

In its interim results, the company revealed the ordinary share portfolio had grown significantly to 30 debt investments totalling more than £106mln, which represented roughly 98% of the committed capital excluding the undrawn revolving credit facility.

Passing the £100mln assets milestone could be significant as it is generally accepted that a trust starts to attract the interest of institutional investors once it passes this level.

The average yield on investments is currently above the 8% target level at 8.27% but the investment manager is looking to raise it further over the coming months.

The company chairman, Norman Crighton, said the recent quarter-point hike in the Bank of England’s base rate should work out well for the trust’s portfolio, 55% of which has sterling floating rate loan exposure and does not have a Libor floor.

A steady rise in the number of investments linked to Libor from 39% to 55% of the portfolio is in line with the investment manager's desire to reduce duration risk within the portfolio, and not to take significant fixed rate exposure at this point of the interest rate cycle.

RM believes interest rates are still below sustainable levels despite recent upward adjustments.

Strong pipeline of opportunities

At the beginning of 2018, RM Capital Markets was particularly keen on two sectors: Property Bridging and Asset Finance.

Anyone who has bought a house but not yet completed the sale of their own knows all about bridging loans.

Property Bridging is the term for when loans are made on a very limited loan-to-value basis over property in circumstances where a bank cannot cough up the money quickly enough. RM believes it can fill this gap within the unregulated space by providing the "bridge" and adds value by conducting the due diligence and legal process within an expedited time period.

Funding Asset Finance opportunities are attractive due to recourse to a wide pool of hard assets, guarantees from underlying borrowers and significant sponsor equity, RM Capital said.

“We continue to see a number of bespoke, higher-yielding lending opportunities to established businesses that offer attractive returns profiles across a number of sectors," said James Robson, the chief investment officer of RM Funds.

Come August 2018, the company revealed its largest exposures were to the Health and Social care sector (16% of the loan portfolio) and Asset Finance (14%).

Overall, the theme is to focus on non-cyclical sectors, such as Social Infrastructure.

In all, its investments are spread across 15 sectors, thus providing broad sector diversity.

Other key statistics highlighted at the time of the interim results (in August) are that the average yield on investments is 8.27% and there are one US dollar investment and two euro-denominated investments. These currency exposures are largely hedged back into sterling, the trust revealed.

A portfolio yielding more than 8% opens the door to decent dividends

The company declared 4.2p per share of dividends for 2017, which was above the 4p per share target set at the time of the initial public offering.

In 2018, the half-yearly target of a 3.25p dividend has been achieved and for the full year, the expectation is for a dividend of 6.5p.

At the current share price (at the time of writing) of 102.5p, the shares are on a projected dividend yield of 6.34%.

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Fri, 10 Aug 2018 07:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/202666/rm-secured-direct-lending-s-focus-on-non-cyclicals-paying-dividends-202666.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180810070003_13750680/ Fri, 10 Aug 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180810070003_13750680/ <![CDATA[RNS press release - Holdings in Company and Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180809070014_13749059/ Thu, 09 Aug 2018 07:00:14 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180809070014_13749059/ <![CDATA[RNS press release - Dividend Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180807151412_13747017/ Tue, 07 Aug 2018 15:14:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180807151412_13747017/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180801174116_13740502/ Wed, 01 Aug 2018 17:41:16 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180801174116_13740502/ <![CDATA[Media files - RM Secured Direct Lending PLC's pipeline 'continuing to build well' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9907/rm-secured-direct-lending-plc-s-pipeline-continuing-to-build-well--9907.html Thu, 19 Jul 2018 15:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9907/rm-secured-direct-lending-plc-s-pipeline-continuing-to-build-well--9907.html <![CDATA[RNS press release - RM Secured Direct Lending ]]> https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180716172001_13719692/ Mon, 16 Jul 2018 17:20:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15592/LSE20180716172001_13719692/