RM Infrastructure Income PLC Annual Results: Wind-Down Progress and NAV Decline

The company reported total losses on investments of £8.8 million and a total return after tax loss of £7.1 million. Revenue income also dropped to £3.4 million from £7.6 million, which is not surprising given the portfolio is shrinking, but it does mean there is less natural income support left.

There is another wrinkle here. A lot of the remaining loans are PIK, or payment in kind, meaning interest is rolled up rather than paid in cash. That can flatter accounting income in theory, but RM says it has taken a conservative approach and written down most of that PIK revenue where recoverability is uncertain. Frankly, that is the right approach in a wind-down. Cash matters more than paper income.

Portfolio quality matters more now than ever

At 31 December 2025, the portfolio had net assets of £56.9 million invested across 16 loans, 2 equity positions and one wholly owned asset across 6 sectors. But the investment portfolio itself was valued at only £33.9 million, with cash of £21.6 million doing a lot of the heavy lifting.

That cash pile was boosted by two material repayments in December 2025 – loan reference 88 for £15,142,631 and a £5,000,000 loan to Voyage Care. Those repayments are important because they de-risk the story and funded the next capital return.

The issue is concentration. Around 67% of the portfolio valuation relates to the three largest exposures: Trianco, Energie Fitness and Beinbauer. In a shrinking fund, concentration risk rises naturally, and that means each exit can move the dial.

Beinbauer: biggest exposure, cautious valuation

Beinbauer, a German auto parts manufacturer, is now the largest exposure. The company had about £8.2 million of market value in the position at year end, and the manager says it is marked conservatively to reflect weaker trading conditions across FY24 and FY25.

There is a sale process under way with preliminary due diligence from potential bidders. That is encouraging, but management is clearly cautious because tariff risks and geopolitical instability could still affect timing and value.

Energie Fitness: higher upside, higher execution risk

Energie Fitness is one of the more interesting assets. RMII has a secured loan marked at about £5.9 million, but the shareholder loan note and the 43% equity stake were both marked at nil.

The company plans to provide up to £3 million of additional capital to support acquisitions of performing gym clubs. That is allowed under the wind-down rules because it is aimed at preserving or enhancing value in an existing exposure. I can see the logic, but investors should recognise the trade-off – more capital is being committed into a business marked partly at nil, so the manager is effectively backing an active recovery strategy rather than a simple cash exit.

Trianco: performing well, but policy risk is real

Trianco looks like the steadiest of the big holdings. RMII has about £8.8 million exposed to the business, marked at around par, while its 61% ordinary equity stake is still marked at nil.

Trading has exceeded budget, which is clearly positive. The catch is that the ECO4 scheme, described as a major revenue driver, is expected to end in April 2026. A replacement scheme called Warm Homes is expected, but the details are not disclosed. So this is a good asset with a policy overhang.

Property-backed loans are not dead, but they are slow

There are five investments secured against three properties, representing about 31% of the loan portfolio by market value. The manager spent much of 2025 dealing with cladding, façade surveys, fire safety work and sale preparation.

That sounds tedious because it is. But it is also exactly the kind of work that decides whether recoveries are respectable or disappointing. On the Glasgow student accommodation asset, the company is now pursuing a credit bid process to take ownership rather than accept what it sees as a discounted insolvency sale. On the Morecambe Travelodge-backed exposure, remedial works are expected to complete by mid-2026 before a sale in H2 2026.

My read is simple: there may be value here, but the timing risk is real. The company itself now expects exits through to the end of 2027.

Dividend cut and ongoing charges: sensible, but not exactly exciting

The dividend payment frequency has moved from quarterly to semi-annual. That is not a sign of strength, but it is a sensible cost-saving move for a fund in wind-down.

Total dividends paid in the year were 1.2500p per share, down from 6.5000p in 2024. Ongoing charges rose to 1.96% from 1.79%, which is also unsurprising when assets are shrinking. Fixed costs do not disappear just because the portfolio gets smaller.

What retail investors should take away from RM Infrastructure Income’s 2025 results

• The wind-down is working operationally – capital is being returned and major loans were repaid.
• The asset value is still slipping – NAV fell hard and the remaining book is riskier and more concentrated.
• Cash is strong at £21.6 million year end, which supports further tenders.
• The remaining exits depend heavily on a handful of complicated assets, especially Beinbauer, Energie Fitness, Trianco and the property-backed positions.
• The board and manager expect liquidation in 2027, not tomorrow.

Final verdict on RM Infrastructure Income PLC annual results

This is not a disaster, but it is not a clean victory either. RM Infrastructure Income is doing the practical work of returning capital, and that deserves credit. But the easier exits have largely happened, while the remaining portfolio looks more specialist, more concentrated and more dependent on successful workouts.

If you own the shares, the case now rests on whether the manager can turn those remaining assets into decent recoveries without further heavy markdowns. The 14.98% discount to NAV tells you the market still has doubts. That feels fair.