Portfolio update

At 31 March 2025, the Company was exposed to a diversified, partially inflation protected, portfolio of 48 investments, with an unaudited valuation of £902.9 million. The portfolio had a principal value of £932.7 million with a weighted average annualised yield of 8.0% and an average life of 11 years.

NAV movements

At 31 March 2025, the unaudited net asset value per ordinary share of the Company was 102.28 pence (31 December 2024: 105.18 pence), a decrease of 2.90 pence per ordinary share.

The movement in the NAV was driven by an increase in discount rates, asset specific revaluations and updated long-term electricity price forecasts. The Company’s independent valuation agent applied an increase of 25 bps to the discount rates applicable to the Company’s PFI / PPP portfolio to reflect their view of market conditions for this asset class, resulting in a negative movement of 0.41 pence per ordinary share. The Company revised the long-term availability forecasts for a gas-to-grid anaerobic digestion portfolio and waste wood biomass project, both of which are owned by the Company following past enforcement. Together with other asset specific valuation updates, this resulted in a net negative revaluation of 2.46 pence per ordinary share.

Capital allocation

The Company’s Board of Directors reconfirms their commitment to the Company’s capital allocation policy set out in the 2024 Annual Report and Accounts, continuing to prioritise further reduction in leverage, as well as reducing equity-like exposures and exposures in certain sectors, whilst also facilitating the return of £50.0 million of capital to shareholders. At 31 March 2025, the Company had £41.0 million (31 December 2024: £61.0 million) outstanding under its revolving credit arrangements, representing a net debt position of £29.2 million (31 December 2024: £42.5 million) which compares to the Company’s unaudited NAV of £871.7 million (31 December 2024: £910.7 million).

As announced on 30 January 2025, and in line with the Company’s capital allocation policy, during the period the Company disposed of its interest in two operational onshore wind farms, generating day one cash proceeds of £16.5 million. There is continued focus on additional opportunities for refinancings or disposals within the portfolio, with a number of active processes.

Further supporting the capital allocation policy, the Company bought back 13,610,093 ordinary shares in the quarter, contributing a 0.49 pence per ordinary share increase to NAV.

Annual general meeting

On 13 February 2025, the Company held its annual general meeting and all resolutions proposed by the Company were duly passed by shareholders.

Annual results

On 12 December 2024, the Company published its audited annual results for the year ended 30 September 2024. The full annual report and financial statements can be accessed here.