P2P to pay higher dividends, buy back shares
Alternative Credit Investments
n/a
n/a
P2P Global Investments said it expected to pay a higher dividend and buy back more shares to boost shareholder returns.
Equity Investment Instruments
11,723.53
17:09 24/04/24
FTSE 250
19,719.37
17:09 24/04/24
FTSE 350
4,419.71
17:09 24/04/24
FTSE All-Share
4,374.06
16:44 24/04/24
In a strategy update, the investment company said it had "increased confidence" it would achieve returns sufficient to pay a quarterly dividend of at least 15p by the end of the second quarter of 2018.
It will also buy back more shares to close the gap between its net asset value and share price, which was 20% at the end of October.
P2P said: "The investment manager is acutely aware of the dislocation between the current share price and the underlying value of the portfolio. The investment manager is therefore committing to a more pro-active share buyback programme."
The shares rose 10% to 78p at 09:29 GMT.
The company said it was increasing its exposure to assets with a higher risk-adjusted return through partnerships with greater control of underwriting and servicing. It has identified £400m of assets with "attractive returns and measured risk".
P2P buys credit assets such as loans to consumers and small businesses, real estate loans and trade receivables made through peer-to-peer lenders. It seeks to take advantage of a gap left by banks that is being filled by non-bank lenders. Its investments are managed by PSC Eaglewood Europe.