UK Mortgages Ltd - Strategic Review

THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION (IN WHOLE OR IN PART) DIRECTLY OR INDIRECTLY IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES.

27 October, 2020

UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration number 60440)

The Board of UK Mortgages Limited (the "Company" or “UKML”) can announce that it has completed the review of strategy which it commenced following the withdrawal of proposals by M&G Investment Management Ltd (“MAGIM”) on August 17 2020.

The review has identified two potential options that would, in the view of the Board and its advisors, provide a clear path to the Company’s objectives announced in August of enhanced liquidity as well as a narrowing and removal of the discount at which UKML shares trade versus UKML’s Net Asset Value.

The options are to either:

• continue operating as a publicly traded investment company under a revised mandate offering increased focus on enhancing liquidity and returns;

or

• to proceed with an orderly wind-down of the Company and  returns of capital to its shareholders (“the Shareholders”).

Following the review, in which the Board has been supported by Twenty Four Asset Management LLP (“the Manager”), the Company’s portfolio manager and Numis Securities Limited as corporate broker, the Board has concluded that there is a reasonable case to be made for both options, taking into account both the improved and improving outlook for the UK mortgage market and housing market, the success of the recent Oat Hill securitisation and the potential for further successful securitisation issues. At the same time, prospects for 2021 remain uncertain with a resurgence of COVID 19, rising unemployment and the planned ending of the stamp duty holiday.

Mindful of earlier feedback from the Shareholders, the Board intends to embark on a further round of consultation with Shareholders with a view to ascertaining their appetite for each of those two options. Following that consultation, it is intended that the Board should make a firm recommendation and convene an Extraordinary General Meeting of Shareholders before the end of the year to vote on the proposals.

The Chairman, Chris Waldron comments:

“Having taken stock of the feedback we received from Shareholders in August, the Board has been working intensively with the Manager and with our advisory team to evaluate the various options for improving liquidity and narrowing the discount to NAV. Having narrowed the choices down to two viable options, we will now go back to Shareholders in order to present those options in detail and hear their views on how they wish to proceed.”

Enquiries:

UK Mortgages Limited
Christopher Waldron (Chairman)           020 7260 1000

Numis Securities Limited, Financial Adviser and Corporate Broker
Hugh Jonathan                                       020 7260 1000
Nathan Brown
Vicki Paine

Garfield Advisory, Public Relations Adviser
Andrew Garfield                                     079 7498 2337
Jason Nisse                                           077 6968 8618

Further information

This announcement is not intended to and does not constitute an offer to buy or the solicitation of an offer to subscribe for or sell or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction. The release, publication or distribution of this announcement in whole or in part, directly or indirectly, in, into or from certain jurisdictions may be restricted by law and therefore persons in such jurisdictions should inform themselves about and observe such restrictions.

Numis Securities Limited (“Numis”), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for UK Mortgages Limited and no one else in connection with the matters set out in this announcement and will not regard any other person as its client in relation to the matters in this announcement and will not be responsible to anyone other than UK Mortgages Limited for providing the protections afforded to clients of Numis, nor for providing advice in relation to any matter referred to herein.

Forward looking statements

This announcement, oral statements and other information published by UK Mortgages Limited may contain statements which are, or may be deemed to be, “forward-looking statements”. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of UK Mortgages Limited about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as “plans”, “expects” or “does not expect”, “is expected”, “is subject to”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Although UK Mortgages Limited believes that the expectations reflected in such forward-looking statements are reasonable, UK Mortgages Limited can give no assurance that such expectations will prove to be correct. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors. Neither UK Mortgages Limited, nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations (including under the Disclosure Guidance and Transparency Rules of the FCA), UK Mortgages Limited is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MAR

The information contained within this announcement is deemed by UKML to constitute inside information as stipulated under the Market Abuse Regulation.  Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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