**Summary of ICG-Longbow Senior Secured UK Property Debt Investments Limited Half-Year Report (30 September 2025):**
**Financial Highlights and Key Developments:**
**Portfolio Reduction** The company now holds only two investments after selling the Affinity loan asset, which was sold <mark style="background-color:yellow">above</mark> its carrying value. This sale led to a £9.70 million capital return to investors.
**Pending Sales** The Southport hotel asset is under offer, but completion is uncertain. The RoyaleLife portfolio is managed by a new operator with a focus on value enhancement and is being prepared for a formal marketing campaign.
**NAV Increase** Adjusted for capital returns, the Net Asset Value (NAV) per share increased by 0.04 pence compared to January 2025.
**Financial Performance** NAV as of July 2025 was £23.27 million, with a profit after tax of £0.05 million for the six months. NAV per share was 19.19 pence, and a distribution of 8.00 pence per share was made in July 2025.
**Investment Portfolio**
As of July 2025, the portfolio consists of two loans with a principal balance of £41.88 million and a carrying value of £20.47 million after Expected Credit Loss (ECL) provisions.
The company aims to realize these investments through enforcement processes or open market sales, with the Investment Manager working to maximize recoveries.
**Corporate and Strategic Overview**
The company is in an orderly realization phase, as approved by shareholders in January 2021, focusing on exiting investments and returning capital.
Structured as a non-cellular company in Guernsey, listed on the London Stock Exchange, with ICG Alternative Investment Limited as the Investment Manager.
**Chairmans Statement**
The company is making progress in exiting investments, with the Affinity sale completed and capital returned. The property market remains challenging, but financing conditions have improved, aiding liquidity.
The Southport hotel sale is pending, and the RoyaleLife portfolio is being prepared for a formal sale process. A legal claim against Avison Young is ongoing.
The Board remains focused on cost control and maximizing shareholder value, with no dividends planned.
**Investment Managers Report**
The Southport hotel is trading profitably but is cashflow negative due to holding costs. Additional funding of £0.70 million was provided to support the sales process.
The RoyaleLife portfolio is being rebranded and sales are increasing, with a formal marketing process expected in October 2025.
The Affinity sale was completed in June 2025, with net proceeds of £10.10 million.
**Financial Risk and Outlook**
Principal risks include delays in asset sales, valuation imprecision, and market deterioration. The company is managing these risks through active portfolio management and cost control.
The outlook remains cautious, with challenges in exiting the remaining assets, but the company is committed to maximizing recoveries and returning capital to shareholders.
**Financial Statements**
Profit for the period was £0.05 million, with basic earnings per share of 0.04 pence.
NAV per share decreased to 19.19 pence, reflecting capital returns and adjustments.
Cash and cash equivalents stood at £2.998 million as of July 2025.
**Conclusion**
ICG-Longbow is navigating a challenging property market by focusing on asset realization and capital returns. While progress has been made, the company faces ongoing risks in exiting its remaining investments, particularly in a subdued economic environment. The Board and Investment Manager remain committed to protecting and enhancing shareholder value.