KEY POINTS :
Constituent of FT-250 In April 2019 :
the Company's ordinary shares were included in the FTSE-250 Index. The Board is aware of the additional reporting and disclosure requirements that this involves.
NAV:
At the year end, the Company's ordinary NAV was GBP645m, equivalent to 110.9p per ordinary share (2018: NAV of GBP605m, 105.1p per ordinary share).
Dividend:
The Company continues to achieve all its dividend objectives. For the year 2018/19, the Company will have paid out a total dividend of 6.65p per ordinary share (2017/18: 6.42p).
For the year 2019/20, the UK RPI applicable to the value of ROCs is 3.3% (as published by the Office for National Statistics). We are therefore targeting to grow the total dividend to 6.87p per ordinary share.
Subsidy free investment :
We expect to continue taking advantage of the new-build opportunities we have secured in the subsidy-free solar sector in the UK. Having identified this opportunity early, we have been able to secure development opportunities at attractive valuations. This will facilitate the construction of new plants with satisfactory financial returns. We are targeting a total of between 100 and 150 MW in subsidy-free solar plants. We shall seek to achieve attractive risk-adjusted returns from these activities via corporate PPAs or direct-wire agreements with off-takers.
Extra info : would that all the Green Infrastructure funds did the same!
The Company sets out below its KPIs which it utilises to track its performance over time against its objectives. Alternative Performance Measures used by the Company are defined on page 102.
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Year ended Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March 31 March
Financial KPI 2019 2018 2017 2016 2015
Ordinary shares in issue 581.7m 575.7m 456.4m 278.0m 240.3m
Ordinary share price 117.5p 111.0p 110.5p 97.75p 103.75p
Market capitalisation of ordinary shares GBP683m GBP639m GBP504m GBP272m GBP249m
NAV per ordinary share* 110.9p 105.1p 104.9p 98.5p 103.3p
Total ordinary NAV* GBP645m GBP605m GBP479m GBP274m GBP248m
Premium/(discount) to NAV* 6.0% 5.6% 5.3% (0.8%) 0.4%
Earnings per ordinary share 12.37p 5.88p 13.81p 0.78p 9.13p
Dividend per ordinary share 6.65p 6.42p 6.31p 6.25p 5.25p
Dividend yield* 5.66% 5.78% 5.71% 6.39% 5.06%
Cash dividend cover - pre-scrip dividends* 1.3x 1.1x 1.1x 1.2x 1.8x
Preference shares in issue 100m - - - -
Debt outstanding at subsidiaries level GBP269m GBP270m GBP270m GBP217m GBP0m
Gearing level (debt + preference shares/GAV)* 36% 31% 36% 44% 0%
GAV GBP1,014m GBP875m GBP749m GBP489m GBP248m
Weighted average cost of capital 5.4% 5.8% 5.9% 5.8% 7.5%
Weighted average lease life 25.2 years 23.3 years 24.6 years 25.7 years 26.2 years
Ordinary shareholder total return - cumulative since IPO 46.7% 33.6% 26.7% 6.1% 5.9%
Ordinary shareholder total return - annualised since IPO 9.5% 8.5% 9.1% 3.2% 6.3%
Ordinary shareholder total return 11.8% 6.2% 21.1% 0.2% 5.9%
FTSE All-Share total return 8.8% 1.4% 20.9% (3.6%) 5.5%
Ordinary NAV total return* 11.8% 6.3% 14.4% 3.7% 3.3%
Ordinary NAV total return - annualised since IPO* 8.1% 7.0% 4.9% 1.9% 4.0%
Invested capital* GBP896m GBP734m GBP522m GBP481m GBP252m
Ongoing charges ratio* 1.1% 1.1% 1.2% 1.2% 1.5%
Weighted average discount rate 7.0% 7.3% 7.9% 7.7% 7.5%
Operational KPI
Number of assets 87 63 41 33 16
Total installed capacity 691 MW 569 MW 454 MW 414 MW 217 MW
Annual generation 693 GWh 451 GWh 394 GWh 225 GWh 23 GWh
% increase (year-on-year) 54% 14% 75% 878% -
Generation since IPO 1.8 TWh 1.1 TWh 0.6 TWh 0.2 TWh 0.0 TWh
Irradiation (delta vs. budget) +9.0% (0.9%) (0.3%) +0.4% (0.4%)
Generation (delta vs. budget) +9.1% +0.9% +3.3% +4.1% +4.8%
Asset Management Alpha* +0.1% +1.8% +3.6% +3.7% +5.2%
All in all, seems to be well managed and has some novel features which others do not have. For example Zero Dividend Preference shares
The preference shares form part of the Company's share capital but, for accounting purposes, they are treated as liabilities. Accordingly, for the purpose of the borrowing limit in the investment policy the Company has classified the preference shares as liabilities, and the investment management fee is calculated based on ordinary shareholders' NAV.
It will also be interesting to see how much money they can make from subsidy free installations.
This is the latest table of returns from the Green Funds (I have added GORE (GSF) the battery storage company as they seem to be entering the main stream.
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BSIF 129.00 130.50 7.68 5.95% 5.89% 113.44 15.04%
Jlen 118.00 119.00 6.66 5.64% 5.60% 104.70 13.66%
TRIG 127.00 127.40 6.64 5.23% 5.21% 111.60 14.16%
FSFL 118.50 119.00 6.76 5.70% 5.68% 110.00 8.18%
UKW 139.80 140.00 6.94 4.96% 4.96% 123.10 13.73%
NESF 120.50 121.00 6.87 5.70% 5.68% 110.90 9.11%
GSF 89.00 92.00 7.00 7.87% 7.61% 92.90 -0.97%
Gore is the highest yielder and is trading at (roughly) 'NAV par'. If it uses its first mover advantage to the full it could be an interesting investment. I have bought 12,000 to see how they do.
Of the others it seems that FSFL and NESF are the 'best buys' at the moment taking into account the yield and premium to NAV but also (in my view) the way they are run.
Hope this is useful - regards - BBB