RM Infrastructure Income : Annual report to 31 Dec 2021

RM Infrastructure Income PLC

Annual Report & Accounts

for the year ended 31 December 2021

Responsible investing

Through active stakeholder engagement combined with the integration of environmental, social and corporate governance considerations throughout the investment process.

RM Infrastructure Income PLC
Annual Report & Accounts 2021
Contents
Strategic report	Page
About us	1
Portfolio at a glance	2
Market	7
The Good Economy - Impact Report April 2022	8
Company objectives	10
Sector objectives	11
Chair's statement	12
Investment Manager's report	14
Investment policy, results and other information	18
Risks and risk management	20
Stakeholder engagement	23
Environmental, Social and Governance ("ESG")	26
Governance
Directors' report	28
Corporate governance	34
Directors' remuneration report	38
Report of the Audit and Management Engagement Committee	40
Statement of Directors' responsibilities	42
Independent Auditor's report	43
Financial statements
Company statement of comprehensive income	52
Statement of financial position	53
Statement of changes in equity	54
Statement of cash flows	55
Notes to the financial statements	57
Other information
Alternative Performance Measures ("APMs")	76
Glossary	79
Directors, Investment Manager and Advisers	81
Notice of Annual General Meeting	82
Notes to Notice of Annual General Meeting	84
Form of Proxy	87

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Strategic report >	RM Infrastructure Income PLC
Governance	Company and sector objectives	Annual Report & Accounts 2021
Financial statements	Chair's statement
Investment Manager's report
Other information	Investment policy, results and other information
Risks and risk management
Stakeholder engagement
ESG

About us

RM Infrastructure Income plc ("RMII" or the "Company") aims to generate attractive and regular dividends through investment in secured debt instruments of UK Small and Medium sized Enterprises ("SMEs") and mid-market corporates including any loan, promissory notes, lease, bond, or preference share (such debt instruments, as further described on page 18, being "Loans") sourced or originated by RM Capital Markets Limited (the "Investment Manager") with a degree of inflation protection through index-linked returns where appropriate.

Company highlights (as at 31 December 2021)

6.5p	£130.8m
25.5% of GAV
Dividend pence per share	CBILS* and RLS** loans	Gross assets
1.01x	7.6%
50.8% of NAV
Portfolio exposure to	Dividend cover	NAV Total return
Social & Environmental
Infrastructure sectors

*Coronavirus Business Interruption Loan Scheme ** Recovery Loan Scheme

1

RM Infrastructure Income PLC Annual Report & Accounts 2021

Portfolio at a glance

Operational highlights

• > Diversified portfolio with gross assets of £130.8 million invested across 34 loans and one wholly owned asset, across 12 sectors and 16 sub-sectors

• > RM Funds further accreditation by the British Business Bank as an accredited lender for the RLS with RMII as a funding partner

• > 25.5% of the portfolio invested into partially government guaranteed CBILS & RLS eligible loans

• > Approximately 50.8% of the portfolio NAV is invested into Social & Environmental Infrastructure sectors with a strong pipeline and expectation that allocations to these areas in 2022 will further increase as the portfolios maturing investments are recycled within those core sectors

• > The Good Economy annual impact report assessment noted that weighted average portfolio impact score rose from 18.56 as at July 2021 to 22.4 as at March 2022 and that loans within the RMII portfolio have supported the creation of 1,115 jobs

Financial highlights

• > 6.5 pence dividend for full year meeting target set at IPO

• > Dividend fully covered by earnings 1.01 times

• > NAV total return for the year 7.6%

Year ended	Year ended
Financial information	31 December 2021	31 December 2020
Gross asset value (£'000)1	£130,821	£132,822
Net Asset Value ("NAV") (£'000)	£111,250	£110,384
NAV per Ordinary Share (pence)	94.41p	93.26p
Ordinary Share price (pence)	95.00p	87.00p
Ordinary Share price premium/(discount) to NAV1	0.6%	(6.7%)
Ongoing charges1	1.92%	1.91%
Gearing (net)1	14.6%	18.3%
Accrued entitlement of Zero Dividend Preference ("ZDP") Share (pence)2	-	109.87
Performance summary	% change3,5	% change4,5
Total return - Ordinary Share NAV and dividends1	+7.6%	+3.1%
Total return - Ordinary Share price and dividends1	+16.7%	-5.3%

• 1. These are Alternative Performance Measures ("APMs").

• 2. Based on the net assets attributable to the ZDP Shares as at 31 December 2020. The Final Capital Entitlement in respect of the ZDPs was paid to ZDP Shareholders on 6 April 2021 following which the ZDPs and its listing were cancelled.

• 3. Total returns for the year to 31 December 2021, including dividend reinvestment.

4.Total returns for the year to 31 December 2020, including dividend reinvestment.

5. Source: Bloomberg.

Alternative Performance Measures ("APMs")

The financial information and performance summary data highlighted in the footnote to the above tables are considered to represent APMs of the Company. Definitions of these APMs together with how these measures have been calculated can be found on pages 76 to 78.

2

Strategic report > Governance Financial statements Other information

Company and sector objectives Chair's statement

Investment Manager's report

Investment policy, results and other information Risks and risk management

Stakeholder engagement ESG

RM Infrastructure Income PLC Annual Report & Accounts 2021

Sector breakdown (as at 31 December 2021)

Other

Hotel & Leisure

Hotel: 25.6%

Accommodation

Student accommodation: 15.8%

Healthcare

Care home: 12%

Health and well-being: 6.1%

Specialist care: 9.1%

Asset Backed Lending

Asset backed lending: 11.4%

Invoice finance: 2.1%

Manufacturing

Auto parts manufacturer: 6.5%

Other manufacturing: 3.6%

Other

Construction: 3.1%

Ports business: 1.3%

School: 1.6%

Restaurant: 0.6%

Energy efficiency: 0.4%

Renewable heat incentive: 0.4%

Wealth management: 0.4%

Fund performance since inception

% Total returns to date

35

S&P Global Leveraged Loan Index GBP Hedged Total Return of: 14.3% 30

RMII Share Price Total Return of: 29.6% 25

RMII NAV Total Return of: 30.7% 20

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