Greencoat UK Wind - Half Year Results, NAV & Dividend Announcement

7/29/2021 @ 6:00:00 AM

RNS Number : 8163G
Greencoat UK Wind PLC
29 July 2021
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, NEW ZEALAND, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN.

 

29 July 2021

GREENCOAT UK WIND PLC (the "Company")

 

Half year results to 30 June 2021, Net Asset Value and Dividend Announcement

Greencoat UK Wind PLC today announces the half year results for the period to 30 June 2021.

Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in UK wind farms. The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cashflow and the prudent use of gearing.

The Company provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.

Highlights

·    The Group's investments generated 1,476GWh of zero carbon electricity.

 

·    Net cash generation (Group and wind farm SPVs) was £103.6 million.

 

·  Acquisition of the remaining 50 per cent interest in Braes of Doune wind farm increased net generating capacity to 1,209MW as at 30 June 2021.

 

·    Issuance of further shares raising £198 million.

 

·    The Company declared total dividends of 3.59 pence per share with respect to the period.

 

·    £940 million outstanding borrowings as at 30 June 2021, equivalent to 28 per cent of GAV.

 

Commenting on today's results, Shonaid Jemmett-Page, Chairman of Greencoat UK Wind, said:

We are pleased to report another solid performance and continued strong cash generation as we deliver against our simple, low risk strategy.

During the period we acquired the remaining 50 per cent of Braes of Doune wind farm, increasing our net generating capacity to over 1.2GW. We were also pleased with the strong support shown by both existing and new investors in February's oversubscribed share placing.

Gearing remains conservative at 28 per cent of GAV and the Group is fully funded to execute our commitments to acquire Windy Rig, Twentyshilling and Glen Kyllachy as each commences commercial operation later this year, which will add a further 130MW of generating capacity to our portfolio of high quality assets.

 

NAV

The Company announces that its unaudited Net Asset Value as at 30 June 2021 is £2,474.1 million (125.2 pence per share). The Company's June 2021 Factsheet is available on the Company's website, www.greencoat-ukwind.com.

Dividend Announcement

The Company also announces a quarterly dividend of 1.795 pence per share in respect of the period from 1 April 2021 to 30 June 2021.

Dividend Timetable

Ex-dividend date:        12 August 2021

Record date:               13 August 2021

Payment date:             27 August 2021

Key Metrics

As at 30 June 2021:

Market capitalisation

£2,501.1 million

Share price

126.6 pence

Dividends with respect to the period

£70.9 million

Dividends with respect to the period per share

3.59 pence

GAV

£3,414.1 million

NAV

£2,474.1 million

NAV per share

125.2 pence

 

Details of the conference call for analysts and investors:

There will be a conference call at 9.00am today for analysts and investors. To register for the event please notify Headland, either by email to [email protected] or by telephone on +44 (0)20 3805 4822.

Presentation materials will be posted on the Company's website, www.greencoat-ukwind.com, from 9.00am.

For further information, please contact:

Greencoat UK Wind PLC                  020 7832 9400

Stephen Lilley

Laurence Fumagalli

Tom Rayner

Headland                                             020 3805 4822

Stephen Malthouse

Rob Walker

All capitalised terms are defined in the list of defined terms below unless separately defined.

 

Chairman's Statement

 

I am pleased to present the Half Year Report of Greencoat UK Wind PLC for the six months ended 30 June 2021.

 

Performance

Portfolio generation for the period was 20 per cent below budget at 1,476GWh. Low wind resource was partially offset by high power prices, which were above budget as a result of high gas and carbon prices. Net cash generated by the Group and wind farm SPVs was £103.6 million, providing cover of 1.5x dividends paid during the period. Full year dividend cover is forecast to be 1.7x.

 

Dividends and Returns

The Company's aim is to provide investors with an attractive and sustainable dividend that increases in line with RPI inflation while preserving capital on a real basis. In line with our stated target of 7.18 pence per share for 2021, the Company has paid a quarterly dividend of 1.795 pence per share with respect to Q1 2021 and has declared a dividend of the same amount per share with respect to Q2 2021, giving a total of 3.59 pence per share for the period (compared to 3.55 pence per share for the first half of 2020). NAV per share increased in the period from 120.4 pence per share (ex-dividend) on 31 December 2020 to 123.4 pence per share (ex-dividend) on 30 June 2021, primarily reflecting an increase in forward power prices over the period 2021-2024.

 

Acquisitions and Investment

During the period, the Group invested £48 million to acquire the remaining 50 per cent of Braes of Doune wind farm, increasing net generating capacity to 1,209MW. The Company also invested a further £16 million into Douglas West wind farm which is expected to commence commercial operation in September 2021. Further acquisitions are expected to complete in the second half of 2021 as Windy Rig, Twentyshilling and Glen Kyllachy each commences commercial operation.

 

Equity Issuance

In order to finance our continuing growth and pursue value creating opportunities, we issued 151 million new shares on 19 February 2021 at a price of 131 pence per share, raising gross proceeds of £198 million. The equity issuance was oversubscribed and issued at a price higher than NAV per share and was therefore NAV accretive per share.

 

Gearing

At the start of the period, Group borrowings amounted to £1.1 billion (33 per cent of GAV). Following the acquisition of the remainder of Braes of Doune and the equity issuance detailed above, as at 30 June 2021 Group borrowings amounted to £940 million (28 per cent of GAV), of which £700 million was fixed rate term debt. The Group will generally avoid using non-recourse debt at wind farm level and aims to keep overall Group level borrowings at a prudent level (the maximum is 40 per cent of GAV). Over the medium term we would expect gearing to be between 20 and 30 per cent of GAV.

 

Principal Risks and Uncertainties

The principal risks and uncertainties affecting the Group were identified in detail in the Company's Annual Report to 31 December 2020, summarised as follows:

• dependence on the Investment Manager;

• financing risk; and

• risk of investment returns becoming unattractive.

 

Also, the principal risks and uncertainties affecting the investee companies were identified in detail in the Company's Annual Report to 31 December 2020, summarised as follows:

• changes in government policy on renewable energy;

• a decline in the market price of electricity;

• risk of low wind resource;

• lower than expected life span of the wind turbines; and

• health and safety and the environment.

 

To date, the COVID-19 pandemic has caused only minor portfolio operational issues and we remain vigilant to mitigate any further impacts.

 

The principal risks outlined above remain the most likely to affect the Group and its investee companies in the second half of the year.

 

Outlook

The Company is investing in a mature and growing market, and the Board believes that there should continue to be further opportunities for investments that are beneficial to shareholders. The Board believes that there will be opportunities to invest in more projects operating under the ROC regime and in a balance of subsidy free wind farms and those operating under the CFD regime.

 

The Company will continue to maintain a strictly disciplined approach to acquisitions, only investing when it is considered to be in the interests of shareholders to do so.

 

The Board and Governance

Following the advice of the government on social distancing and measures to prohibit public gathering in order to minimise the spread of COVID-19, the Company held its AGM with the minimum necessary quorum of two shareholders present. A recording of the AGM was made and is available for shareholders on the Company's website (www.greencoat-ukwind.com). The Company realises that such an arrangement is not ideal and is keen to provide the opportunity for investors to meet with the Board and executive management as normal in 2022.

 

 

 

Shonaid Jemmett-Page

Chairman

28 July 2021
 

Investment Manager's Report

 

Investment Portfolio

 

Operating portfolio as at 30 June 2021:

 

Wind Farm

Turbines

Operator

PPA

Total MW

Ownership Stake

Net MW

 
 

Bicker Fen

Senvion

EDF

EDF

26.7

80%

21.3

 

Bin Mountain

GE

SSE

SSE

9.0

100%

9.0

 

Bishopthorpe

Senvion

BayWa

Axpo

16.4

100%

16.4

 

Braes of Doune

Vestas

BayWa

Centrica

72.0

100%

72.0

 

Brockaghboy

Nordex

SSE

SSE

47.5

100%

47.5

 

Carcant

Siemens

BayWa

Axpo

6.0

100%

6.0

 

Church Hill

Enercon

Energia

Energia

18.4

100%

18.4

 

Clyde

Siemens

SSE

SSE

522.4

28.2%

147.3

 

Corriegarth

Enercon

BayWa

Centrica

69.5

100%

69.5

 

Cotton Farm

Senvion

BayWa

Sainsbury's

16.4

100%

16.4

 

Crighshane

Enercon

Energia

Energia

32.2

100%

32.2

 

Deeping St. Nicholas

Senvion

EDF

EDF

16.4

80%

13.1

 

Drone Hill

Nordex

BayWa

Statkraft

28.6

51.6%

14.8

 

Dunmaglass

GE

SSE

SSE

94.0

35.5%

33.4

 

Earl's Hall Farm

Senvion

BayWa

Sainsbury's

10.3

100%

10.3

 

Glass Moor

Senvion

EDF

EDF

16.4

80%

13.1

 

Humber Gateway

Vestas

RWE

RWE

219.0

37.8%

82.8

 

Kildrummy

Enercon

BayWa

Sainsbury's

18.4

100%

18.4

 

Langhope Rig

GE

Natural Power

Centrica

16.0

100%

16.0

 

Lindhurst

Vestas

RWE

RWE

9.0

49%

4.4

 

Little Cheyne Court

Nordex

RWE

RWE

59.8

41%

24.5

 

Maerdy

Siemens

BayWa

Statkraft

24.0

100%

24.0

 

Middlemoor

Vestas

RWE

RWE

54.0

49%

26.5

 

North Hoyle

Vestas

RWE

Erova

60.0

100%

60.0

 

North Rhins

Vestas

BayWa

E.ON

22.0

51.6%

11.4

 

Red House

Senvion

EDF

EDF

12.3

80%

9.8

 

Red Tile

Senvion

EDF

EDF

24.6

80%

19.7

 

Rhyl Flats

Siemens

RWE

RWE

90.0

24.95%

22.5

 

Screggagh

Nordex

SSE

Energia

20.0

100%

20.0

 

Sixpenny Wood

Senvion

BayWa

Statkraft

20.5

51.6%

10.6

 

Slieve Divena

Nordex

SSE

SSE

30.0

100%

30.0

 

Slieve Divena II

Enercon

SSE

SSE

18.8

100%

18.8

 

Stronelairg

Vestas

SSE

SSE

227.7

35.5%

80.9

 

Stroupster

Enercon

BayWa

BT

29.9

100%

29.9

 

Tappaghan

GE

SSE

SSE

28.5

100%

28.5

 

Tom nan Clach

Vestas

Natural Power

CFD

39.1

75%

29.3

 

Walney

Siemens

Orsted

SSE

367.2

25.1%

92.2

 

Yelvertoft

Senvion

BayWa

Statkraft

16.4

51.6%

8.5

 

 

 

 

 

 

 

 

 

Total (1)

 

 

 

 

 

1,209.2

 

 

(1)    Numbers do not cast owing to rounding of (0.2)MW.

 

Portfolio Performance

 

Portfolio generation for the six months ended 30 June 2021 was 1,476GWh, 20 per cent below budget, reflecting low wind resource.

 

Notable issues affecting portfolio availability were:

 

·  various unplanned outages at Corriegarth, with extended periods of shutdown due to adverse weather conditions and restricted site access in January and February and due to a shortage of operation and maintenance resources;

·    pitch motor faults at Dunmaglass, with repair and replacement work hindered by adverse weather conditions;

·    several grid outages affecting North Hoyle in March, April and May, including overhead line repairs; and

·   a shortage of operation and maintenance resources at Middlemoor, following the transition of turbine operation and maintenance from Vestas to RWE and including a COVID-19 outbreak in January.

 

Last year's large offshore investments are performing well, with above budget availability during the period at both Humber Gateway and Walney.

 

During the period, BayWa acquired part of the operational management business of DNV-GL, which included Operational Management Agreements at Braes of Doune, Carcant, Maerdy and North Rhins. BayWa now operates 13 sites in the Group's portfolio.

 

A new PPA with Erova is in place at North Hoyle, with ROCs being sold to Total under a separate agreement. The new offtake agreements benefit from significantly higher pricing and replace the previous PPA with RWE which covered power and ROCs.

 

Health and Safety

 

Health and safety is of key importance to both the Company and the Investment Manager.

 

The Investment Manager is an active member of SafetyOn, the UK's leading health and safety focussed organisation for the onshore wind industry. The Investment Manager also has its own health and safety forum, chaired by Stephen Lilley, where best practice is discussed and key learnings from incidents from across the industry are shared.

 

Acquisitions and Investment

 

On 23 February 2021, the Group acquired the remaining 50 per cent interest in Braes of Doune wind farm from Hermes for a consideration of £48.1 million. The Group has been invested in this wind farm since listing and the wind farm receives 1 ROC per MWh.

 

During the period, the Group funded incremental investment of £16 million in the 45MW Douglas West subsidy free wind farm project, which is expected to commence full commercial operation in September 2021. The wind farm exported its first power on 7 July 2021 and is in the final stages of commissioning. A total of £44 million was invested as at 30 June 2021 (in line with the total investment budget of £50 million).

 

The following further subsidy free wind farm acquisitions are expected to complete in H2 2021 as each wind farm commences commercial operation (commitments made in 2019):

 

Wind Farm

MW

£m

COD

Windy Rig

43.2

52.7

Sep 2021

Twentyshilling

37.8

51.4

Oct 2021

Glen Kyllachy

48.5

57.5

Nov 2021

Total

129.5

161.6

 

 

The Company has £160 million undrawn commitments available under its revolving credit facility (£400 million total commitments).

 

Equity Issuance

 

On 19 February 2021, the Company issued 151 million new shares at a price of 131 pence per share, raising gross proceeds of £198 million.

 

Gearing

 

As at 30 June 2021, the Group had £940 million of debt outstanding, equating to 28 per cent of GAV (limit 40 per cent).

 

Debt outstanding comprised term debt of £700 million (together with associated interest rate swaps) and £240 million drawn under the Company's revolving credit facility.

 

All borrowing is at Company level (no debt at wind farm level).

 

Financial Performance

 

Power prices during the period were above budget as a result of high gas and carbon prices. The average N2EX Day Ahead price was £68.45/MWh (H1 2020: £28.48).

 

Net cash generated by the wind farm SPVs was £103.6 million.

 

Dividend cover for the period was 1.5x, reflecting low generation and high power prices. Full year dividend cover is forecast to be 1.7x.

 

Cash balances (Group and wind farm SPVs) increased by £1.3 million to £95.1 million.

 

Group and wind farm SPV cashflows

For the six months ended
30 June 2021

 
 

 

£'000

 

 

 

 

Net cash generation (1)

103,574

 

Dividends paid

(67,846)

 

 

 

 

Acquisitions (2)

(64,264)

 

Acquisition costs (3)

(4,848)

 

 

 

 

Equity issuance

197,618

 

Equity issuance costs

(2,933)

 

 

 

 

Net repayment under debt facilities

(160,000)

 

Upfront finance costs

(43)

 

 

 

 

Movement in cash (Group and wind farm SPVs)

1,258

 

Opening cash balance (Group and wind farm SPVs)

93,820

 

Closing cash balance (Group and wind farm SPVs)

95,078

 

 

 

 

Net cash generation

103,574

 

Dividends

67,846

 

Dividend cover

1.5x

 

 

(1)  Alternative Performance Measure as defined below.

(2)  £48.1m Braes of Doune plus £16.1m incremental investment in Douglas West (£20.4m injected less £4.3m increase in Douglas West cash balance).

(3)   £4.4m Humber Gateway plus £0.2m Kype Muir Extension plus £0.2m Braes of Doune.

 

The following 2 tables provide further detail in relation to net cash generation of £103.6 million:

 

Net Cash Generation - Breakdown

For the six months ended
30 June 2021

 

£'000

Revenue

211,626

Operating expenses

(74,484)

Tax

(10,135)

Other

(206)

Wind farm cashflow

126,801

 

 

Management fee

(10,024)

Operating expenses

(863)

Ongoing finance costs

(11,240)

Other

300

Group cashflow

(21,827)

 

 

VAT (Group and wind farm SPVs)

(1,400)

 

 

Net cash generation

103,574

 

 

 

Net Cash Generation - Reconciliation to Net Cash Flows from Operating Activities

For the six months ended
30 June 2021

 

£'000

Net cash flows from operating activities (1)

129,561

Decrease in cash balances of wind farm SPVs (2)

(16,191)

Increase in Douglas West cash balance (2)

(4,255)

Repayment of shareholder loan investment (1)

5,699

Finance costs (1)

(11,283)

Upfront finance costs (cash) (3)

43

Net cash generation

103,574

 

(1) Consolidated Statement of Cash Flows.

(2) Note 8 to the financial statements.

(3) Movement in other finance costs payable (note 11 to the financial statements).

 

Investment Performance

 

 

£'m

NAV at 31 December 2020

2,229.9

Investment

64.3

Movement in portfolio valuation

14.9

Movement in cash (Group and wind farm SPVs)

1.3

Movement in other relevant assets/liabilities

3.9

Movement in Aggregate Group Debt

160.0

NAV at 30 June 2021 (1)

2,474.1

 

(1)        Numbers do not cast owing to rounding of £(0.2) million.

 

The increase in the portfolio valuation of £14.9 million equates to approximately 1 pence per share, which can be further broken down as follows: +4 pence from an increase in forward power prices over the period 2021-2024; -2 pence from an increase in the modelled corporation tax rate over the medium term; and -1 pence other.

 

Total dividends of £67.8 million were paid in the period.

 

Reconciliation of Statutory Net Assets to Reported NAV

 

 

As at
30 June 2021

As at
31 December 2020

 
 

 

£'000

£'000

 

Operating portfolio

3,278,659

3,216,563

 

Construction portfolio

44,323

27,273

 

Cash (wind farm SPVs)

69,741

85,932

 

Fair value of investments

3,392,723

3,329,768

 

Cash (Group)

25,337

7,888

 

Other relevant liabilities

(3,925)

(7,783)

 

GAV

3,414,135

3,329,873

 

Aggregate Group Debt

(940,000)

(1,100,000)

 

NAV

2,474,135

2,229,873

 

Reconciling items

-

-

 

Statutory net assets

2,474,135

2,229,873

 

 

 

 

 

Shares in issue

1,975,598,608

1,824,129,348

 

NAV per share (pence)

122.2

 

 

NAV Sensitivities

 

NAV is equal to GAV less Aggregate Group Debt.

 

GAV is the sum of:

• DCF valuations of the Group's investments;

• cash (at Group and wind farm SPV level); and

• other relevant assets and liabilities of the Group.

 

The DCF valuation of the Group's investments represents the largest component of GAV and the key sensitivities are considered to be the discount rate used in the DCF valuation and assumptions in relation to inflation, energy yield, power price and asset life.

 

The base case discount rate is a blend of a lower discount rate for fixed cash flows and a higher discount rate for merchant cash flows. The blended portfolio discount rate as at 31 December 2020 was 6.9 per cent. The blended portfolio discount rate as at 30 June 2021 increased to 7.0 per cent, reflecting a slightly greater proportion of merchant cash flows. The underlying discount rates that are applied to fixed and merchant cash flows have not changed since December 2020.

 

As there is no debt at wind farm level, the DCF valuation is produced by discounting the individual wind farm cash flows on an unlevered basis. The equivalent levered discount rate would be approximately 2 per cent higher than the unlevered discount rate.

 

Base case long term inflation assumptions are 3.3 per cent to 2030 and 2.3 per cent thereafter for RPI and 2.3 per cent (all years) for CPI.

 

Base case energy yield assumptions are P50 (50 per cent probability of exceedance) forecasts based on long term wind data and operational history. The P90 (90 per cent probability of exceedance over a 10 year period) and P10 (10 per cent probability of exceedance over a 10 year period) sensitivities reflect the future variability of wind and the uncertainty associated with the long term data source being representative of the long term mean.

 

Long term power price forecasts are provided by a leading market consultant, updated quarterly, and may be adjusted by the Investment Manager where more conservative assumptions are considered appropriate.

 

The power price sensitivity assumes a 10 per cent increase or decrease in power prices relative to this base case forecast for every year of the asset life.

 

The base case asset life is 30 years.

 

Outlook

 

There are currently over 25GW of operating UK wind farms (14GW onshore plus 11GW offshore). In monetary terms, the secondary market for operating UK wind farms is over £70 billion. The Group currently has a market share of approximately 5 per cent. As at 30 June 2021, the average age of the portfolio was 7 years (versus 5 years at listing in March 2013).

 

In November 2020, in advance of the delayed COP26 conference scheduled for November 2021 in Glasgow, the Prime Minister announced a 10 point plan for the delivery of the 2050 net zero emissions target. A key part of that plan is a 40GW offshore wind target for 2030, supported by the CFD regime. New build onshore wind and solar are also expected to contribute, both on a subsidy free basis and supported by the CFD regime.

 

It is anticipated that the Group will continue to invest in ROC wind farms, with CFD wind farms and subsidy free wind farms continuing to provide further diversified pipeline opportunities. At all times, the Group will maintain a balanced portfolio, in line with the Company's investment objective.

 

Power prices have increased materially from lows seen in 2020, both in terms of H1 2021 (£68.45/MWh) and in terms of the forward curve (H2 2021 £94/MWh, 2022 £74/MWh, 2023 £60/MWh, 2024 £58/MWh). In the current year, fixed cash flows represent 48 per cent of total cash flows (52 per cent merchant) and fixed cash flows contribute 59 per cent of the total DCF value over the life of the portfolio (41 per cent merchant).

 

In general, the outlook for the Group is very encouraging, with proven operational and financial performance from the existing portfolio, combined with a healthy pipeline of attractive further investment opportunities.

 

Statement of Directors' Responsibilities

 

The Directors acknowledge responsibility for the interim results and approve this Half Year Report. The Directors confirm that to the best of their knowledge:

 

a)  the condensed financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" and give a true and fair view of the assets, liabilities and financial position and the profit of the Group as required by DTR 4.2.4R;

 

b) the interim management report, included within the Chairman's Statement and Investment Manager's Report, includes a fair review of the information required by DTR 4.2.7R, being the significant events of the first half of the year and the principal risks and uncertainties for the remaining six months of the year; and

 

c)  the condensed financial statements include a fair review of the related party transactions, as required by DTR 4.2.8R.

 

The Responsibility Statement has been approved by the Board.

 

Shonaid Jemmett-Page

Chairman

28 July 2021

 

Condensed Consolidated Statement of Comprehensive Income (unaudited)

For the six months ended 30 June 2021

 

 

Note

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

 

£'000

£'000

 

 

 

 

Return on investments

3

140,171

52,889

Other income

 

889

534

Total income and gains

 

141,060

53,423

 

 

 

 

Operating expenses

4

(12,256)

(10,710)

Investment acquisition costs

 

(339)

(796)

Operating profit

 

128,465

41,917

 

 

 

 

Finance expense

12

(11,792)

(9,448)

 

 

 

 

Profit for the period before tax

 

116,673

32,469

Tax

5

-

-

 

 

 

 

Profit for the period after tax

 

116,673

32,469

 

 

 

 

Profit and total comprehensive income attributable to:

 

 

 

Equity holders of the Company

 

116,673

32,469

 

 

 

 

Earnings per share

 

 

 

Basic and diluted earnings from continuing operations in the period (pence)

6

6.03

2.14

 

The accompanying notes form an integral part of the financial statements.

 

Condensed Consolidated Statement of Financial Position (unaudited)

As at 30 June 2021

 

 

Note

30 June 2021

31 December 2020

 

 

£'000

£'000

 

 

 

 

Non current assets

 

 

 

Investments at fair value through profit or loss

8

3,392,723

3,329,768

 

 

3,392,723

3,329,768

Current assets

 

 

 

Receivables

10

444

634

Cash and cash equivalents

 

25,337

7,888

 

 

25,781

8,522

Current liabilities

 

 

 

Payables

11

(4,369)

(8,417)

Net current assets

 

21,412

105

 

 

 

 

Non current liabilities

 

 

 

Loans and borrowings

12

(940,000)

(1,100,000)

 

 

 

 

Net assets

 

2,474,135

2,229,873

 

 

 

 

Capital and reserves

 

 

 

Called up share capital

14

19,756

18,241

Share premium account

14

2,028,397

1,834,477

Retained earnings

 

425,982

377,155

Total shareholders' funds

 

2,474,135

2,229,873

Net assets per share (pence)

15

125.2

122.2

 

 

Authorised for issue by the Board on 28 July 2021 and signed on its behalf by:

 

Shonaid Jemmett-Page                                  Caoimhe Giblin

Chairman                                                       Director

 

 

 

The accompanying notes form an integral part of the financial statements.

 

Condensed Consolidated Statement of Changes in Equity (unaudited)

For the six months ended 30 June 2021

 

For the six months ended
30 June 2021

Note

Share capital

Share premium

Retained earnings

Total

 

 

£'000

£'000

£'000

£'000

Opening net assets attributable to shareholders (1 January 2021)

 

18,241

1,834,477

377,155

2,229,873

Issue of share capital

14

1,515

196,853

-

198,368

Share issue costs

14

-

(2,933)

-

(2,933)

Profit and total comprehensive income for the period

 

-

-

116,673

116,673

Interim dividends paid in the period

7

-

-

(67,846)

(67,846)

 

 

 

 

 

 

Closing net assets attributable to shareholders

 

19,756

2,028,397

425,982

2,474,135

 

The total reserves distributable by way of a dividend as at 30 June 2021 were £314,050,860.

 

For the six months ended
30 June 2020

 

Share capital

Share premium

Retained earnings

Total

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Opening net assets attributable to shareholders (1 January 2020)

 

15,175

1,442,218

385,373

1,842,766

Issue of share capital

 

6

744

-

750

Profit and total comprehensive income for the period

 

-

-

32,469

32,469

Interim dividends paid in the period

 

-

-

(53,282)

(53,282)

 

 

 

 

 

 

Closing net assets attributable to shareholders

 

15,181

1,442,962

364,560

1,822,703

 

The total reserves distributable by way of a dividend as at 30 June 2020 were £303,387,756.

 

The accompanying notes form an integral part of the financial statements.

 

Condensed Consolidated Statement of Cash Flows (unaudited)

For the six months ended 30 June 2021

 

 

Note

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

 

£'000

£'000

 

 

 

 

Net cash flows from operating activities

16

129,561

81,723

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of investments

8

(68,519)

(56,494)

Investment acquisition costs

 

(4,848)

(851)

Repayment of shareholder loan investments

8

5,699

14,792

Net cash flows from investing activities

 

(67,668)

(42,553)

 

 

 

 

Cash flows from financing activities

 

 

 

Issue of share capital

14

197,618

-

Payment of issue costs

14

(2,933)

-

Amounts drawn down on loan facilities

 

-

27,000

Amounts repaid on loan facilities

12

(160,000)

-

Finance costs

 

(11,283)

(9,227)

Dividends paid

7

(67,846)

(53,282)

Net cash flows from financing activities

 

(44,444)

(35,509)

 

 

 

 

Net increase in cash and cash equivalents during the period

 

17,449

3,661

 

 

 

 

Cash and cash equivalents at the beginning of the period

 

7,888

24,717

 

 

 

 

Cash and cash equivalents at the end of the period

 

25,337

28,378

 

The accompanying notes form an integral part of the financial statements.

 

Notes to the Unaudited Condensed Consolidated Financial Statements

For the six months ended 30 June 2021

 

1.    Significant accounting policies

 

Basis of accounting

The condensed consolidated financial statements included in this Half Year Report have been prepared in accordance with IAS 34 "Interim Financial Reporting". The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the preparation of the Group's consolidated annual financial statements for the year ended 31 December 2020 and are expected to continue to apply in the Group's consolidated financial statements for the year ended 31 December 2021.

 

The Group's consolidated annual financial statements were prepared on the historic cost basis, as modified for the measurement of certain financial instruments at fair value through profit or loss, and in accordance with UK adopted international accounting standards.

 

These condensed financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2020. The audited annual accounts for the year ended 31 December 2020 have been delivered to the Registrar of Companies. The audit report thereon was unmodified.

 

Review

This Half Year Report has not been audited or reviewed by the Company's Auditor in accordance with the International Standards on Auditing (ISAs) (UK) or International Standard on Review Engagements (ISREs).

 

Going concern

As at 30 June 2021, the Group had net assets of £2,474.1 million (31 December 2020: £2,229.9 million) and cash balances of £25.3 million (31 December 2020: £7.9 million) which are sufficient to meet current obligations as they fall due.

 

In the period since early 2020 and up to the date of this report, the outbreak of COVID-19 has had a negative impact on the global economy. The Directors and Investment Manager are actively monitoring this and its potential effect on the Group and its SPVs. In particular, they have considered the following specific key potential impacts:

·    Unavailability of key personnel at the Investment Manager or Administrator;

·    Disruptions to maintenance or repair at the investee company level; and

·    Allowance for expected counterparty credit losses. 

 

In considering the above key potential impacts of COVID-19 on the Group and SPV operations, the Directors have assessed these with reference to the mitigation measures in place. At the Group level, the key personnel at the Investment Manager and Administrator have successfully implemented business continuity plans to ensure business disruption is minimised, including remote working, and all staff are continuing to assume their day-to-day responsibilities.

 

SPV revenues are derived from the sale of electricity, and although 52 per cent of the portfolio's revenue during the period is exposed to the floating power price, revenue is received through power purchase agreements in place with large and reputable providers of electricity to the market and also through government subsidies. In the period since early 2020 and up to the date of this report, there has been no significant impact on revenue and cash flows of the SPVs. The SPVs have contractual operating and maintenance agreements in place with large and reputable providers. Therefore the Directors and the Investment Manager do not anticipate a threat to the Group's revenue.

 

Wind farm availability has not been significantly affected: wind farms may be accessed and operated remotely in some instances; otherwise social distancing has been possible in large part and personal protective equipment has been used where not possible, for instance where major component changes have been necessary. The Investment Manager is confident that there are appropriate continuity plans in place at each provider to ensure that the underlying wind farms are maintained appropriately and that any faults would continue to be addressed in a timely manner.

 

Based on the assessment outlined above, including the various risk mitigation measures in place, the Directors do not consider that the effects of COVID-19 have created a material uncertainty over the assessment of the Group as a going concern.

 

The Directors have reviewed Group forecasts and projections which cover a period of at least 12 months from the date of approval of this report, taking into account foreseeable changes in investment and trading performance, which show that the Group has sufficient financial resources to continue in operation for at least the next 12 months from the date of approval of this report.

 

On the basis of this review, and after making due enquiries, the Directors have a reasonable expectation that the Company and the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of this report. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 

Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors, as a whole. The key measure of performance used by the Board to assess the Group's performance and to allocate resources is the total return on the Group's net assets, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements. For management purposes, the Group is organised into one main operating segment, which invests in wind farm assets. All of the Group's income is generated within the UK. All of the Group's non-current assets are located in the UK.

 

Seasonal and cyclical variations

The Group's results do not vary significantly during reporting periods as a result of seasonal activity.

 

2.         Investment management fees

 

Under the terms of the Investment Management Agreement, the Investment Manager is entitled to a combination of a Cash Fee and an Equity Element from the Company.

 

The Cash Fee and Equity Element are calculated quarterly in advance, as disclosed on page 66 of the Company's Annual Report for the year ended 31 December 2020.

 

Investment management fees paid or accrued in the period were as follows:

 

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

 

£'000

£'000

 

 

 

 

Cash Fee

 

10,038

8,114

Equity Element

 

750

750

 

 

10,788

8,864

 

As at 30 June 2021, total amounts payable to the Investment Manager were £nil (31 December 2020: £13,474 receivable).

 

3.         Return on investments

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

£'000

£'000

 

 

 

Dividends received (note 17)

121,101

82,991

Interest on shareholder loan investment received

18,935

10,758

Unrealised movement in fair value of investments (note 8)

135

(40,860)

 

140,171

52,889

 

4.         Operating expenses

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

£'000

£'000

 

 

 

Management fees (note 2)

10,788

8,864

Group and SPV administration fees

434

382

Non-executive Directors' fees

135

136

Other expenses

830

1,277

Fees to the Company's Auditor:

 

 

for audit of the statutory financial statements

65

47

for other audit related services

4

4

 

12,256

10,710

 

The fees to the Company's Auditor includes £3,838 (30 June 2020: £3,800) payable in relation to a limited review of the Half Year Report and estimated accruals proportioned across the year for the audit of the statutory financial statements.

 

5.         Taxation

 

Taxable income during the period was offset by management expenses and the tax charge for the period ended 30 June 2021 is £nil (30 June 2020: £nil). The Group has tax losses carried forward available to offset against current and future profits as at 30 June 2021 of £23,032,849 (30 June 2020: £18,931,040).

6.         Earnings per share

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

 

 

Profit attributable to equity holders of the Company - £'000

116,673

32,469

Weighted average number of ordinary shares in issue

1,933,649,612

1,517,908,160

Basic and diluted earnings from continuing operations in the period (pence)

6.03

2.14

 

Dilution of the earnings per share as a result of the Equity Element of the investment management fee as disclosed in note 2 does not have a material impact on the basic earnings per share.

 

7.         Dividends declared with respect to the period

 

Interim dividends paid during the period ended 30 June 2021

Dividend per share

Total dividend

 

pence

£'000

With respect to the quarter ended 31 December 2020

1.775

32,384

With respect to the quarter ended 31 March 2021

1.795

35,462

 

3.570

67,846

 

Interim dividends declared after 30 June 2021 and not accrued in the period

Dividend per share

Total dividend

 

pence

£'000

With respect to the quarter ended 30 June 2021

1.795

35,467

 

1.795

35,467

 

As disclosed in note 18, on 29 July 2021, the Board approved a dividend of 1.795 pence per share with respect to the quarter ended 30 June 2021, bringing the total dividends declared with respect to the period to 3.59 pence per share. The record date for the dividend is 13 August 2021 and the payment date is 27 August 2021.

 

8.         Investments at fair value through profit or loss

 

For the period ended 30 June 2021

Loans

Equity interest

Total

 

£'000

£'000

£'000

 

 

 

 

Opening balance

607,956

2,721,812

3,329,768

Additions

20,381

48,138

68,519

Repayment of shareholder loan investments

(5,699)

-

(5,699)

Unrealised movement in fair value of investments (note 3)

(1,926)

2,061

135

 

620,712

2,772,011

3,392,723

 

 

For the period ended 30 June 2020

Loans

Equity interest

Total

 

£'000

£'000

£'000

 

 

 

 

Opening balance

360,698

2,062,508

2,423,206

Additions

27,758

28,736

56,494

Repayment of shareholder loan investments

(14,792)

-

(14,792)

Restructure of shareholder loan investments

50,500

(50,500)

-

Unrealised movement in fair value of investments (note 3)

25

(40,885)

(40,860)

 

424,189

1,999,859

2,424,048

 

The unrealised movement in fair value of investments of the Group during the period was made up as follows:

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

£'000

£'000

 

 

 

Increase/(decrease) in portfolio valuation

14,882

(39,323)

Repayment of shareholder loan investments (note 17)

5,699

14,792

Decrease in cash balances of SPVs

(16,191)

(16,329)

Increase in Douglas West cash balance

(4,255)

-

 

135

(40,860)

 

 

Fair value measurements

As disclosed on pages 70 and 71 of the Company's Annual Report for the year ended 31 December 2020, IFRS 13 "Fair Value Measurement" requires disclosure of fair value measurement by level. The level of fair value hierarchy within the financial assets or financial liabilities ranges from level 1 to level 3 and is determined on the basis of the lowest level input that is significant to the fair value measurement.

 

The fair value of the Group's investments is ultimately determined by the underlying net present values of the SPV investments. Due to their nature, they are always expected to be classified as level 3 as the investments are not traded and contain unobservable inputs. There have been no transfers between levels during the six months ended 30 June 2021.

 

Sensitivity analysis

The fair value of the Group's investments is £3,392,722,935 (31 December 2020: £3,329,768,023). The analysis below is provided in order to illustrate the sensitivity of the fair value of investments to an individual input, while all other variables remain constant. The Board considers these changes in inputs to be within reasonable expected ranges. This is not intended to imply the likelihood of change or that possible changes in value would be restricted to this range.

 

Input

Base case

Change in input

Change in    fair value of investments

Change in NAV per share

 

 

 

£'000

pence

 

 

 

 

 

Discount rate

7.0 per cent

+ 0.5 per cent

(101,328)

(5.1)

 

 

- 0.5 per cent

107,074

5.4

 

 

 

 

 

Long term inflation rate

RPI: 3.3 per cent to 2030, 2.3 per cent thereafter
CPI: 2.3 per cent

- 0.5 per cent

(102,935)

(5.2)

 

+ 0.5 per cent

108,222

5.5

 

 

 

 

 

Energy yield

P50

10 year P90

(197,837)

(10.0)

 

 

10 year P10

197,848

10.0

 

 

 

 

 

Power price

Forecast by leading consultant

- 10 per cent

(168,463)

(8.5)

 

+ 10 per cent

168,022

8.5

 

 

 

 

 

Asset life

30 years

- 5 years

(125,028)

(6.3)

 

 

+ 5 years

83,172

4.2

 

 

 

 

 

 

The sensitivities above are assumed to be independent of each other. Combined sensitivities are not presented.

 

9.         Unconsolidated subsidiaries, associates and joint ventures

 

The following table shows subsidiaries of the Group acquired during the period. As the Company is regarded as an investment entity under IFRS, this subsidiary has not been consolidated in the preparation of the financial statements:

Investment

Ownership interest as at
30 June 2021

 
 

Braes of Doune

Scotland

100%

 

 

As at 31 December 2020 the Group had an associate holding representing 50 per cent of Braes of Doune. During the period the Group acquired the remaining 50 per cent interest and therefore has reclassified its investment in Braes of Doune as an unconsolidated subsidiary.

 

There are no other changes to the unconsolidated subsidiaries or the associates and joint ventures of the Group as disclosed on pages 72 and 73 of the Company's Annual Report for the year ended 31 December 2020.

 

There are no changes to guarantees and counter-indemnities provided by the Group, as disclosed on page 73 of the Company's Annual Report for the year ended 31 December 2020.

 

10.       Receivables

 

 

30 June 2021

31 December 2020

 

£'000

£'000

 

 

 

VAT receivable

251

480

Prepayments

131

90

Other receivables

62

64

 

444

634

 

11.       Payables

 

 

30 June 2021

31 December 2020

 

£'000

£'000

 

 

 

Loan interest payable

3,741

3,045

Commitment fee payable

185

328

Acquisition costs payable

21

4,538

Other finance costs payable

-

43

Other payables

422

463

 

4,369

8,417

 

12.       Loans and borrowings

 

 

30 June 2021

31 December 2020

 

£'000

£'000

 

 

 

Opening balance

1,100,000

600,000

Revolving credit facility

 

 

                Drawdowns

-

780,000

                Repayments

(160,000)

(380,000)

Term debt facilities

 

 

                Drawdowns

-

100,000

Closing balance

940,000

1,100,000

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

£'000

£'000

 

 

 

Loan interest

11,410

8,452

Commitment fees

312

926

Other facility fees

70

70

Finance expense

11,792

9,448

 

The loan balance as at 30 June 2021 has not been adjusted to reflect amortised cost, as the amounts are not materially different from the outstanding balances.

 

In relation to non-current loans and borrowings, the Board is of the view that the current market interest rate is not significantly different to the respective instruments' contractual interest rates therefore the fair value of the non-current loans and borrowings at the end of the reporting periods is not significantly different from their carrying amounts.

 

There are no changes to the terms of the Company's revolving credit facility as disclosed on page 75 of the Company's Annual Report for the year ended 31 December 2020.

 

As at 30 June 2021, the balance of this facility was £240,000,000 (31 December 2020: £400,000,000), accrued interest was £965,723 (31 December 2020: £410,767) and the outstanding commitment fee payable was £185,205 (31 December 2020: £327,671).

 

The Company's term debt facilities and associated interest rate swaps, with various maturity dates, are set out in the below table:

 

Provider

Maturity date

Loan margin

Swap fixed rate

Loan principal

Accrued interest at 30 June 2021

 

 

%

%

£'000

£'000

 

 

 

 

 

 

NAB

7 June 2022

0.75

0.0464

50,000

60

CBA

22 July 2022

1.65

1.9410

75,000

457

CBA

22 July 2022

1.65

1.2260

25,000

122

NAB

1 November 2023

1.20

1.4280

75,000

297

NAB

1 November 2023

1.20

0.7725

25,000

74

CBA

7 December 2023

1.00

0.1130

50,000

95

CBA

 

14 November 2024

1.35

 

0.8075

 

50,000

 

183

 

CBA

6 March 2025

1.55

1.5265

50,000

261

CIBC

3 November 2025

1.50

1.5103

100,000

454

NAB

1 November 2026

1.50

1.5980

75,000

350

NAB

1 November 2026

1.50

0.8425

25,000

88

CIBC

 

14 November 2026

1.40

 

0.81325

 

100,000

 

334

 

 

 

 

 

700,000

2,775

 

13.       Contingencies and commitments

 

As at 30 June 2021, the Group has invested £44 million in the Douglas West wind farm project. Commercial operation is scheduled to commence in September 2021 with a total expected investment of £50 million.

 

In October 2019, the Group announced that it had agreed to acquire the Glen Kyllachy wind farm project for a headline consideration of £57.5 million. The investment is scheduled to complete in November 2021 once the wind farm is fully operational.

 

In December 2019, the Group announced that it had agreed to acquire the Windy Rig and Twentyshilling wind farm projects for a combined headline consideration of £104.1 million. The investments are scheduled to complete in September 2021 and October 2021 respectively, once each wind farm is fully operational.

 

In April 2020, the Group announced that it had agreed to acquire the South Kyle wind farm project for a headline consideration of £320 million. The investment is scheduled to complete in Q1 2023 once the wind farm is fully operational.

 

In December 2020, the Group entered into an agreement to acquire 49.9 per cent of the Kype Muir Extension wind farm project for a headline consideration of £51.4 million, to be paid once the wind farm is fully operational (target Q4 2022). The Group will also provide construction finance of up to £47 million.

 

14.       Share capital - ordinary shares of £0.01

 

Six months to 30 June 2021

 

 

 

 

Date

Issued and fully paid

Number of shares issued

Share capital

Share premium

Total

 

 

 

£'000

£'000

£'000

1 January 2021

 

1,824,129,348

18,241

1,834,477

1,852,718

Shares issued to the Investment Manager

 

 

 

 

5 February 2021

True-up of 2020 and
Q1 2021 Equity Element

308,798

3

372

375

7 May 2021

Q2 2021 Equity Element

306,862

3

372

375

 

 

615,660

6

744

750

 

 

 

 

 

 

Other

 

 

 

 

19 February 2021

Capital raise

150,853,600

1,509

196,109

197,618

19 February 2021

Less share issue costs

-

-

(2,933)

(2,933)

30 June 2021

 

1,975,598,608

19,756

2,028,397

2,048,153

 

15.       Net assets per share

 

 

30 June 2021

31 December 2020

 

 

 

Net assets - £'000

2,474,135

2,229,873

Number of ordinary shares issued

1,975,598,608

1,824,129,348

Total net assets - pence

125.2

122.2

 

16.       Reconciliation of operating profit for the period to net cash from operating activities

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

£'000

£'000

Operating profit for the period

128,465

41,917

Adjustments for:

 

 

Movement in fair value of investments (notes 3 & 8)

(135)

40,860

Investment acquisition costs

339

796

Decrease/(increase) in receivables (note 10)

190

(90)

Decrease in payables

(48)

(2,510)

Equity Element of Investment Manager's fee (note 2)

750

750

Net cash flows from operating activities

129,561

81,723

 

17.       Related party transactions

 

During the period, the Company increased its loan to Holdco by £48,400,000 (30 June 2020: £27,000,000) and Holdco made repayments of £103,273,112 (30 June 2020: £71,166,228). The amount outstanding at the period end was £2,080,082,580 (31 December 2020: £2,134,955,692).

 

The below table shows dividends received in the period from the Group's investments.

 

 

For the six months ended
30 June 2021

For the six months ended
30 June 2020

 

£'000

£'000

Humber Holdco (1)

15,760

-

Clyde

14,954

12,128

Walney

11,525

-

Stroupster

6,673

2,291

Braes of Doune

6,330

2,712

Brockaghboy

6,170

5,454

Corriegarth (2)

5,859

2,723

SYND Holdco (3)

4,622

3,865

Fenlands (4)

4,436

2,876

Stronelairg Holdco (5)

4,379

9,231

Rhyl Flats

4,266

3,343

ML Wind (6)

3,528

3,479

Dunmaglass Holdco (7)

3,072

3,772

North Hoyle

2,788

3,756

Maerdy

2,708

2,558

Bishopthorpe

2,405

2,032

Cotton Farm

2,376

3,289

Tappaghan

2,361

2,320

Little Cheyne Court

2,296

2,993

Kildrummy

2,248

2,771

Slieve Divena

1,989

1,799

Earl's Hall Farm

1,806

1,809

Langhope Rig

1,713

1,786

Bicker Fen

1,478

1,274

Slieve Divena II

1,416

-

Screggagh

1,383

1,312

Bin Mountain

984

830

Carcant

916

1,013

Church Hill

660

-

Tom Nan Clach

-

1,575

 

121,101

82,991

 

1 The Group's investment in Humber Gateway is held through Humber Holdco.

2 The Group's investment in Corriegarth was previously held through Corriegarth Wind Energy Holdings Limited, until 27 April 2020, at which point the investment was restructured. Corriegarth Wind Energy Holdings Limited was dissolved in September 2020.

3 The Group's investments in Drone Hill, North Rhins, Sixpenny Wood and Yelvertoft are held through SYND Holdco.

4 The Group's investments in Deeping St. Nicholas, Glass Moor, Red House and Red Tile are held through Fenlands.

5 The Group's investment in Stronelairg is held through Stronelairg Holdco.

6 The Group's investments in Middlemoor and Lindhurst are held through ML Wind.

7 The Group's investment in Dunmaglass is held through Dunmaglass Holdco.

 

 

The table below shows the Group's shareholder loans with the wind farm investments.

 

 

Loans at 1 January 2021(1)

Loans advanced in the period

Loan repayments in the period

Loans at 30 June 2021

Accrued interest at 30 June 2021

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Walney

        172,727

                 -  

                    -  

  172,727

         1,732

174,459

Stronelairg

          86,619

                 -  

                    -  

     86,619

          1,296

  87,915

Tom nan Clach

          85,874

                 -  

         (3,685)

     82,189

          1,054

  83,243

Clyde

          71,503

                 -  

                    -  

     71,503

          1,052

  72,555

Dunmaglass

          56,864

                 -  

                    -  

     56,864

             851

  57,715

Corriegarth

          42,553

                 -  

                    -  

     42,553

             637

  43,190

Douglas West

          19,217

       20,381

                    -  

     39,598

          1,566

  41,164

Crighshane

          24,665

                 -  

          (1,641)

     23,024

             217

  23,241

Slieve Divena II

          22,182

                 -  

                    -  

     22,182

             208

  22,390

Church Hill

          15,075

                 -  

             (373)

     14,702

             138

  14,840

 

 

 

 

 

 

 

 

        597,279

       20,381

          (5,699)

   611,961

          8,751

620,712

 

(1) Excludes accrued interest at 31 December 2020 of £10,675,825.

 

18.       Subsequent events

 

On 29 July 2021, the Board approved a dividend of £35.5 million equivalent to 1.795 pence per share. The record date for the dividend is 13 August 2021 and the payment date is 27 August 2021.

 

Company Information

 

Directors (all non-executive)

Registered Company Number

Shonaid Jemmett-Page (Chairman)

08318092

William Rickett C.B.

 

Martin McAdam

Registered Office

Lucinda Riches C.B.E

27-28 Eastcastle Street

Caoimhe Giblin

London W1W 8DH

 

 

 

 

Investment Manager

Registered Auditor

Greencoat Capital LLP

BDO LLP

4th Floor, The Peak

55 Baker Street

5 Wilton Road

London W1U 7EU

London SW1V 1AN

 

 

 

 

 

Administrator and Company Secretary

Joint Broker

Ocorian Administration (UK) Limited

RBC Capital Markets

The Innovation Centre

100 Bishopsgate

Northern Ireland Science Park

London EC2N 4AA

Queen's Road

 

Belfast BT3 9DT

 

 

 

 

 

Depositary

Joint Broker

Ocorian Depositary (UK) Limited

Jefferies International Limited

The Innovation Centre

100 Bishopsgate

Northern Ireland Science Park

London EC2N 4JL

Queen's Road

 

Belfast BT3 9DT

 

 

 

 

 

Registrar

 

Computershare

 

The Pavilions

 

Bridgewater Road

 

Bristol BS13 8AE

 

 

 

 

Defined Terms

 

Aggregate Group Debt means the Group's proportionate share of outstanding third party borrowings

AGM means Annual General Meeting of the Company

Alternative Performance Measure means a financial measure other than those defined or specified in the applicable financial reporting framework

Balancing Mechanism means the system by which electricity demand and supply is balanced by National Grid in close to real time

BDO LLP means the Company's Auditor as at the reporting date

Bicker Fen means Bicker Fen Windfarm Limited

Bin Mountain means Bin Mountain Wind Farm (NI) Limited

Bishopthorpe means Bishopthorpe Wind Farm Limited

Board means the Directors of the Company

Braes of Doune means Braes of Doune Wind Farm (Scotland) Limited

Breeze Bidco means Breeze Bidco (TNC) Limited

Brockaghboy means Brockaghboy Windfarm Limited

Carcant means Carcant Wind Farm (Scotland) Limited

Cash Fee means the cash fee that the Investment Manager is entitled to under the Investment Management Agreement

CBA means Commonwealth Bank of Australia

CFD means Contract For Difference

Church Hill means Church Hill Wind Farm Limited

CIBC means Canadian Imperial Bank of Commerce

Clyde means Clyde Wind Farm (Scotland) Limited

COD means Commercial Operation Date

Company means Greencoat UK Wind PLC

Corriegarth means Corriegarth Wind Energy Limited

Cotton Farm means Cotton Farm Wind Farm Limited

COVID-19 means an infectious disease discovered in late 2019 and caused by the corona virus

CPI means the Consumer Price Index

Crighshane means Crighshane Wind Farm Limited

DCF means Discounted Cash Flow

Deeping St. Nicholas means Deeping St. Nicholas wind farm

Douglas West means Douglas West Holdco and Douglas West Wind Farm

Douglas West Wind Farm means Douglas West Wind Farm Limited

Drone Hill means Drone Hill Wind Farm Limited

DTR means the Disclosure Guidance and Transparency Rules sourcebook issued by the Financial Conduct Authority

Dunmaglass means Dunmaglass Holdco and Dunmaglass Wind Farm

Dunmaglass Holdco means Greencoat Dunmaglass Holdco Limited

Dunmaglass Wind Farm means Dunmaglass Wind Farm Limited

Earl's Hall Farm means Earl's Hall Farm Wind Farm Limited

Equity Element means the ordinary shares issued to the Investment Manager under the Investment Management Agreement

EU means the European Union

Fenlands means Fenland Windfarms Limited

GAV means Gross Asset Value

GB means Great Britain consisting of England, Scotland and Wales

Glass Moor means Glass Moor wind farm

Group means Greencoat UK Wind PLC and Greencoat UK Wind Holdco Limited

Holdco means Greencoat UK Wind Holdco Limited

Humber Gateway means Humber Holdco and Humber Wind Farm

Humber Holdco means Greencoat Humber Limited

Humber Wind Farm means RWE Renewables UK Humber Wind Limited

IAS means International Accounting Standard

IFRS means International Financial Reporting Standards

Investment Management Agreement means the agreement between the Company and the Investment Manager

Investment Manager means Greencoat Capital LLP

Kildrummy means Kildrummy Wind Farm Limited

Langhope Rig means Langhope Rig Wind Farm Limited

Lindhurst means Lindhurst Wind Farm

Little Cheyne Court means Little Cheyne Court Wind Farm Limited

Maerdy means Maerdy Wind Farm Limited

Middlemoor means Middlemoor Wind Farm

ML Wind means ML Wind LLP

NAB means National Australia Bank

Nanclach means Nanclach Limited

NAV means Net Asset Value

NAV per Share means the Net Asset Value per Ordinary Share

North Hoyle means North Hoyle Wind Farm Limited

North Rhins means North Rhins Wind Farm Limited

N2EX means the N2EX Day Ahead auction price

PPA means Power Purchase Agreement entered into by the Group's wind farms

RBC means the Royal Bank of Canada

RBS International means the Royal Bank of Scotland International Limited

Red House means Red House wind farm

Red Tile means Red Tile wind farm

Review Section means the front end review section of this report (including but not limited to the Chairman's Statement and the Investment Manager's Report)

Rhyl Flats means Rhyl Flats Wind Farm Limited

ROC means Renewable Obligation Certificate

RPI means the Retail Price Index

Santander means Santander Global Banking and Markets

Screggagh means Screggagh Wind Farm Limited

Sixpenny Wood means Sixpenny Wood Wind Farm Limited

Slieve Divena means Slieve Divena Wind Farm Limited

Slieve Divena II means Slieve Divena Wind Farm No. 2 Limited

SPVs means the Special Purpose Vehicles which hold the Group's investment portfolio of underlying wind farms

Stronelairg means Stronelairg Holdco and Stronelairg Wind Farm

Stronelairg Holdco means Greencoat Stronelairg Holdco Limited

Stronelairg Wind Farm means Stronelairg Wind Farm Limited

Stroupster means Stroupster Caithness Wind Farm Limited

SYND Holdco means SYND Holdco Limited

Tappaghan means Tappaghan Wind Farm (NI) Limited

Tom nan Clach means Breeze Bidco and Nanclach

TSR means Total Shareholder Return

UK means the United Kingdom of Great Britain and Northern Ireland

Walney means Walney Holdco and Walney Wind Farm

Walney Holdco means Greencoat Walney Holdco Limited

Walney Wind Farm means Walney (UK) Offshore Windfarms Limited

Yelvertoft means Yelvertoft Wind Farm Limited

 

Alternative Performance Measures

 

Performance Measure

Definition

NAV per share

 

The Net Asset Value per ordinary share.

Net cash generation

 

 

The operating cash flow of the Group and wind farm SPVs.

Total Shareholder Return

The movement in share price, combined with dividends paid during the year, on the assumption that these dividends have been reinvested.

 

Cautionary Statement

 

The Review Section of this report has been prepared solely to provide additional information to shareholders to assess the Company's strategies and the potential for those strategies to succeed. These should not be relied on by any other party or for any other purpose.

 

The Review Section may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology.

 

These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs or current expectations of the Directors and the Investment Manager concerning, amongst other things, the investment objectives and Investment Policy, financing strategies, investment performance, results of operations, financial condition, liquidity, prospects, and distribution policy of the Company and the markets in which it invests.

 

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual investment performance, results of operations, financial condition, liquidity, distribution policy and the development of its financing strategies may differ materially from the impression created by the forward-looking statements contained in this document.

 

Subject to their legal and regulatory obligations, the Directors and the Investment Manager expressly disclaim any obligations to update or revise any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

 

In addition, the Review Section may include target figures for future financial periods. Any such figures are targets only and are not forecasts.

 

This Half Year Report has been prepared for the Company as a whole and therefore gives greater emphasis to those matters which are significant in respect of Greencoat UK Wind PLC and its subsidiary undertakings when viewed as a whole.

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR SEIFMAEFSEEW ]]>