- Net Asset Value ("NAV”) increased from £279.1 million as at 31 December 2015 to £279.8 million as at 30 June 2016, taking the NAV per Ordinary Share to 99.3 pence (31 December 2015: 99.0 pence).
- Equity discount rate remains unchanged at 7.5%.
- The Company reached Financial Close on a £160 million long-term debt facility at attractive terms compared to other similar facilities closed within the renewable sector during the period. The facility wholly refinanced the Company's £150 million short-term acquisition facility previously in place.
- In addition, the Company has entered into a new, short-term revolving acquisition facility of £40 million with Santander. The short-term facility will provide the Company with the flexibility to take advantage of future pipeline opportunities.
- Having delivered the target dividend of 6.10 pence for the year to 31 December 2015, the first interim dividend of 1.54 pence per share was paid on 24 June 2016. The Company has paid all seven target dividends to date and remains on target to deliver a dividend of 6.17 pence for the financial year ended 31 December 2016.
- The 16 asset, 338MW portfolio is fully operational and accredited following the 30MW Copley asset successfully qualifying for 1.3 Renewable Obligation Certificate ("ROC”) banding.
- Performance of the assets for the period was below the expectations of the Investment Manager due to a grid outage at the Bournemouth site and other isolated, non-recurring incidents. Energy generated from the portfolio amounted to 163.9 Gigawatt Hours ("GWh”), resulting in revenue of £8.6 million across the Company’s portfolio, excluding compensation expected from insurable events and contracted liquidated damages.
- Reported profit after tax for the period was £9.3 million and earnings per share of 3.30 pence.
- The Company continued the asset optimisation process having entered a five-year Power Purchase Agreement for 15 of the 16 assets in the portfolio following a wide tender process. The agreement represented a significant improvement in passthrough rates and embedded benefit prices.
- The Company has identified an attractive pipeline of 200MW which will support the growth of the Fund over the next 12 months, including several secondary opportunities which it expects to complete before year end.
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|Ex Dividend Date||15 September 2016|
|Record Date||16 September 2016|
|Payment Date||30 September 2016|
|Net Asset Value
|Dividends per Share declared for the period
|NAV per Share
|Gross Asset Value
|Total NAV Return*
|Number of Shares with Voting Rights
|Total Shareholder Return*||3.54%|
* Annualised from IPO and calculated in line with AIC methodology, which does not include dividends approved but not paid.
"The Board is pleased with the progress made by the Company over the period. In a challenging regulatory and trading environment, the Company has taken a prudent approach to acquisitions and focused on the consolidation and optimisation of the portfolio. This has resulted in significant improvements to the commercial terms of many of the Company’s contracts and subsequent cost reductions across the portfolio. The Board is particularly pleased with the attractive terms that were achieved on the long-term financing strategy implemented in March, especially when compared to similar facilities closed in the renewable sector during the period. This highlights the value that can be created from the experience of the Investment Manager, and further underpin returns to investors.
The Company has achieved all seven target dividends to date and is on track to deliver a 6.17 pence dividend for the year ended 31 December 2016. The 16 asset portfolio is now fully operational and accredited and generating revenue for the benefit of the Company’s Shareholders.
We believe the UK solar sector remains attractive, particularly given the emergence of an active UK secondary market and the recent recovery in UK wholesale power prices. The Investment Manager has identified an attractive 200MW pipeline of assets that will support the growth of the Company over the next 12 months, and is actively pursuing several opportunities which it expects to complete before the end of the year.”