The Lemon Fool

Interesting disposal in yesterdays Crown Place RNS of earnshaw energy, especially when rhe sharesoc report of the last AGM, Nov '18, states that in the Q&A's to the board it was asked if HMRC were putting pressure on, or a timeframe to sell, renewable energy holdings.
Answer was negative, "no plans to sell for some time yet so they may be the last ones out"
Odd that 5 months later they are disposed of at £1.4m (in accounts at £1.38).

No commentary from them on the subject.

Can you expand on that comment about HMRC pressure? I was under the impression that, as usual with rule changes, existing investments got 'grandfather' rights to continue. If that's wrong, surely it's the end for Foresight Solar, Hazel/Gresham, and Ventus? Though at least there's buoyant demand from their non-VCT cousins, including new share issues being regularly oversubscribed.

Uncle
You are, as far as I know, quite correct about Grandfathering rights.
What I was quoting was a question asked, according to the sharesoc account of the AGM in November, where the board were asked by a shareholder if there was any pressure from HMRC re asset backed holdings.
The answer was no, followed by the comment that renewable energy assets might well be the last to go.
I can't give a link to this account of the AGM as it is in the sharesoc members section, so effectively behind a paywall & I was unable to attend that AGM personally, but I have always found the sharesoc accounts of AGM's to be very accurate.
This is why I found this disposal announced on Friday rather interesting.
I hope this clarifies my first post ?

I am very sad that Albion have divested themselves of an asset backed 'green' company. As you have said, UncleE they have grandfathering rights (and an Uncle should know all about relationships ).

Interestingly they can (indirectly) still continue to invest in asset backed green bolt ons via their portfolio companies.

This is from the recent half year report from FORESIGHT SOLAR & INFRASTRUCTURE VCT PLC

"During the period, existing portfolio companies completed the
acquisition of five UK solar assets, Basin Bridge, Stables, Dove View,
Beech Farm and Hurcott, adding a total of 25.8MW of capacity to the
portfolio.

Existing portfolio companies also committed an amount into ForVEI II,
the second joint venture partnership between Foresight and VEI Capital.
During the period, ForVEI II successfully completed the acquisition of
two plants totalling 1.9MW, each located in Apulia, Italy.

These additions support the Company's objective of continuing to deliver
its target dividends and maximising long-term future returns for
Shareholders."

The rules are simple - so long as a portfolio company does not change what it is doing (in this case selling electricity from solar panels) - it can continue to invest without jeopardising the VCT status of its shareholders. So, the portfolio company can invest monies it would have paid out in dividends etc in asset backed - and disallowed investments such as solar panels and wind turbines and ... and ... : Provided it was already doing that it should in the medium to long term, benefit the VCT that owns the shares in that company.

So Albion is missing a trick here, I think - as are the others UncleE mentions .

BusyBumbleBee wrote:I am very sad that Albion have divested themselves of an asset backed 'green' company. As you have said, UncleE they have grandfathering rights (and an Uncle should know all about relationships ).

Heh.

I suspect I wasn't the only one to carry a username from TMF without giving it a second thought. But there it wasn't my first choice: I had tried many (including just plain Ebenezer) only to find they were not available. I first used UncleE to sign xmas pressies to my brother's then-young (under-10) offspring, and was rewarded by hearing from the next room a junior voice asking "Do we have an Uncle Ebenezer?", and their mother correctly guessing his identity.

Interestingly they can (indirectly) still continue to invest in asset backed green bolt ons via their portfolio companies.

Indeed, I think we've discussed that here before, especially when we were trying to extract information from Ventus on what they were doing to

Foresight Solar wrote: support the Company's objective of continuing to deliver its target dividends and maximising long-term future returns for Shareholders.[/i]"

So Albion is missing a trick here, I think - as are the others UncleE mentions .

One to question Albion about, next time Fools make it to an Albion shareholder event?

On a related note, is this acquisition of assets within portfolio companies - as opposed to using a new company - normal behaviour for the non-VCT Renewable Infrastructure Funds (especially FSFL)? Or is that not a question you addressed in your research?

UncleEbenezer wrote:On a related note, is this acquisition of assets within portfolio companies - as opposed to using a new company - normal behaviour for the non-VCT Renewable Infrastructure Funds (especially FSFL)? Or is that not a question you addressed in your research?

Interesting question, UncleE. I said in the Green Infrastructure thread (viewtopic.php?f=8&t=17343) that I would tabulate some more info on the six of them. I am in the throes of preparing the first of these but am just going thru FSFL accounts so your question is topical (to me at least!).

Note 15 "Subsidiaries and associates" of their annual report details their subsidiaries which together with note 16 "Interests in unconsolidated structured entities" runs to 4 pages. All the investments seem to be in SPVs (Special Purpose Vehicles) which are in turn held by other structures which in their turn are held by another structure which is held by FSFL. There is then a web of loans between them. Very complicated and difficult to see initially what they gain from the complexity here.

The other five seem to have simpler structures but all seem to have SPVs for each 'farm'.

Albion uses SPVs for most of its investments and I suppose I should go thru and see exactly what proportion of each is held by Albion funds and what by other entities - but don't have the time at the moment.

Hope that answers your question - kind regards BBB