RM Infrastructure Income : Annual Report and Financial Statements Full Year 2022

RM Infrastructure Income PLC

Annual Report & Accounts

for the year ended 31 December 2022

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 2022

Contents

Strategic report	Page
About us	1
Portfolio at a glance	2
Market	7
Company objectives	8
Sector objectives	9
Chair's statement	11
Investment Manager's report	14
Investment policy, results and other information	17
Risks and risk management	19
Stakeholder engagement	22
Environmental, Social and Governance ("ESG")	25
Governance
Directors' report	28
Corporate governance	34
Directors' remuneration report	40
Report of the Audit and Management Engagement Committee	42
Directors' responsibility statement	44
Independent Auditor's report	45
Financial statements
Company statement of comprehensive income	54
Statement of financial position	55
Statement of changes in equity	56
Statement of cash flows	57
Notes to the financial statements	59
Other information
Alternative Performance Measures ("APMs")	78
Glossary	81
Directors, Investment Manager and Advisers	83
Notice of Annual General Meeting	84
Notes to Notice of Annual General Meeting	86
		rm-funds.co.uk
Form of Proxy	89

Strategic report >

Governance Financial statements Other information

Portfolio at a glance Market

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 2022

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 17, 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 2022)

6.5p		28.0%ofGAV	£126.1m
Dividend pence per share		CBILS* and RLS** loans	Gross assets

59.1%of NAV		0.975x	5.0%
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 2022

Portfolio at a glance

Operational highlights

• Diversified portfolio with gross assets of £126.1 million invested across 37 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: 28% of the portfolio invested into partially government guaranteed CBILS & RLS eligible loans
• Approximately 59.1% of the portfolio NAV is committed to Social & Environmental Infrastructure sectors reflecting an increase of 8.3% over 2022, with a strong pipeline and expectation that further allocations to these areas in 2023 will continue to increase as the portfolio's maturing investments are recycled within those core sectors
• A short dated, high yielding portfolio that has outperformed many other fixed income comparables during 2022

Financial highlights

Financial information		Year ended		Year ended
	31 December 2022		31 December 2021
Gross asset value (£'000)1		£126,076		£130,821
Net Asset Value ("NAV") (£'000)		£108,805		£111,250
NAV per Ordinary Share (pence)		92.49p		94.41p
Ordinary Share price (pence)		85.00p		95.00p
Ordinary Share price (discount)/premium to NAV1		(8.1%)		0.6%
Ongoing charges1		1.86%		1.92%
Gearing (net)1		13.1%		14.6%
Performance summary		% change2,4		% change3,4
Total return - Ordinary Share NAV and dividends1		+5.0%		+ 7.6%
Total return - Ordinary Share price and dividends1		+3.7%		+ 16.7%

1. These are Alternative Performance Measures ("APMs").
2. Total returns for the year to 31 December 2022, including dividend reinvestment.
3. Total returns for the year to 31 December 2021, including dividend reinvestment. 4.Source: Bloomberg.

As at 20 April 2023, the latest date prior to the publication of this document, the Ordinary Share price was 79p per share and the latest published NAV was 92.10p per share as at 31 March 2023.

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 78 to 80.

2

Strategic report >

Governance Financial statements Other information

Portfolio at a glance Market

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 2022

Sector breakdown (as at 31 December 2022)
				Other
Hotel & Leisure	Hotel: 26.3%			10%	Hotel & Leisure
Accommodation	Student accommodation: 14.6%	Manufacturing		26%
Healthcare	Care home: 17.9%		9%
	Health and well-being:7.3%
	Specialist care: 3.5%
Asset Backed Lending	Asset backed lending: 10.5%
Manufacturing	Auto parts manufacturer: 8.0%	Asset Backed
Lending	11%
	Other manufacturing: 0.6%
Other	Construction: 3.1%
	Energy efficiency: 2.8%
	Childcare: 2.4%				15%
	Ports business: 1.4%
	Restaurant: 0.6%
	School: 0.4%
	Wealth management: 0.4%		Healthcare	29%	Accommodation
	Renewable heat incentive: 0.2%

Fund performance since inception

% Total returns to date

40

RMII NAV Total Return of: 37%

RMII Share Price Total Return of: 25%

30

S&P Global Leveraged Loan Index GBP Hedged Total Return of: 10%

20

10

0

-10

-20	Dec 18	Dec 19	Dec 20	Dec 21	Dec 22
Jan 17

Distribution record

40.00p	6.50p	37.225p	36.5p
30.00p	6.50p
	6.50p
20.00p	7.025p
10.00p	6.50p
	4.20p
0.00p

2017 2018 2019 2020 2021 2022 Achieved Target

Investment portfolio since inception

Environmental Infrastructure
Social Infrastructure		9.3%
Other (Non Core)
	51.8%	38.9%
48.2% of portfolio to

date invested in ongoing focus sectors

3