Half Year Results, NAV & Dividend Announcement

RNS Number : 9749T
Greencoat UK Wind PLC
28 July 2022
 

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.

 

28 July 2022

GREENCOAT UK WIND PLC

(the "Company")

 

Half year results to 30 June 2022, Net Asset Value and Dividend Announcement

 

Greencoat UK Wind PLC today announces the half year results for the period to 30 June 2022.

 

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 cash flow.

 

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 2,175GWh of renewable energy.

 

· Net cash generation (Group and wind farm SPVs) was £328.8 million.

 

· Acquisition of Twentyshilling increased the portfolio to 44 operating wind farm investments and net generating capacity to 1,460MW as at 30 June 2022.

 

· Agreement to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm, with the transaction expected to complete in Q3 2022.

 

· The Company declared total dividends of 3.86 pence per share with respect to the period.

 

· £900 million outstanding borrowings as at 30 June 2022, equivalent to 20 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, with continued strong cash generation as we deliver against our simple, low risk strategy and build on our well-established track record.

 

"During the period we acquired Twentyshillling wind farm and were delighted to announce our investment in Hornsea 1, the world's largest offshore wind farm. Upon completion of this investment in Q3 2022, we will have grown our portfolio to 45 operating wind farms and increased our net generating capacity to over 1.6GW, which underlines the size and scale the Group has attained since listing in 2013.

 

"We continue to see an attractive pipeline of investments, both onshore and offshore, and remain well positioned to deliver more value-accretive acquisitions and extend our track record of strong shareholder returns."

 

 

Net Asset Value

The Company announces that its unaudited Net Asset Value as at 30 June 2022 is £3,559.7 million (153.6 pence per share). The Company's June 2022 Factsheet is available on the Company's website, www.greencoat-ukwind.com .

Dividend Announcement

The Company also announces a quarterly dividend of 1.930 pence per share in respect of the period from 1 April 2022 to 30 June 2022.

Dividend Timetable

Ex-dividend date:  11 August 2022

Record date:  12 August 2022

Payment date:             26 August 2022

 

Key Metrics

As at 30 June 2022:

Market capitalisation

£3,566.8 million

Share price

153.9 pence

Dividends with respect to the period

£89.5 million

Dividends with respect to the period per share

3.86 pence

GAV

£4,459.7 million

NAV

£3,559.7 million

NAV per share

153.6 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 ukwind@headlandconsultancy.com 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 2022.

 

Performance

Portfolio generation for the period was 2,175GWh, 1 per cent above budget. Net cash generated by the Group and wind farm SPVs was £328.8 million, above budget due to high power prices, primarily reflecting high gas prices, providing cover of 3.8x dividends paid during the period.

 

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 its stated target of 7.72 pence per share for 2022, the Company has paid a quarterly dividend of 1.93 pence per share with respect to Q1 2022 and has declared a dividend of the same amount per share with respect to Q2 2022, giving a total of 3.86 pence per share for the period (compared to 3.59 pence per share for the first half of 2021). NAV per share increased in the period from 131.7 pence per share (ex-dividend) on 31 December 2021 to 151.7 pence per share (ex-dividend) on 30 June 2022, reflecting an increase in forward power prices over the period 2022-2025 and an increase in short term inflation.

 

Investment

During the period, the Group invested £50 million to acquire the Twentyshilling wind farm from Statkraft, increasing net generating capacity to 1,460MW. During the period, the Group also provided a further £18 million of construction finance to the Kype Muir Extension wind farm project (target commissioning in Q4 2022).

 

In Q3 2022, we expect to complete on our £400 million investment in the Hornsea 1 wind farm, through reinvestment of cash flow alongside a modest utilisation of our revolving credit facility, increasing generating capacity to 1,610MW.

 

Gearing

As at 30 June 2022, the Group had £900 million of debt outstanding, equating to 20 per cent of GAV (limit 40 per cent).

 

Debt outstanding comprised £900 million of fixed rate term debt at Company level. There was zero outstanding under the Company's £600 million revolving credit facility (the £250 million balance at the beginning of the period having been refinanced with £200 million AXA term debt and £50 million repaid from excess cash flow during the period).

 

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 2021, 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 2021, 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 asset life; and

• health and safety and the environment.

 

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 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

The Board was pleased that the Company could hold its AGM in person for the first time in 3 years in April 2022. At the AGM, Willy Rickett retired and Lucinda Riches assumed the role of Senior Independent Director. I would like to thank Willy once again for his wisdom and service to the Company since 2013.

 

The Company and its Investment Manager also renewed the Investment Management Agreement, reducing the management fee on NAV above £3 billion.

 

 

Shonaid Jemmett-Page

Chairman

27 July 2022

 

 

Investment Manager's Report

 

Investment Portfolio

 

Operating portfolio as at 30 June 2022:

 

Wind Farm

Turbines

Operator

PPA

Total MW

Ownership Stake

Net MW

Andershaw

Vestas

Statkraft

Statkraft

35.0

100%

35.0

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

Erova

72.0

100%

72.0

Brockaghboy

Nordex

SSE

SSE

47.5

100%

47.5

Burbo Bank Extension

Vestas

Orsted

CFD

258.0

15.7%

40.4

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

Douglas West

Vestas

Natural Power

BT

45.0

100%

45.0

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

Glen Kyllachy

Nordex

Natural Power

Tesco

48.5

100%

48.5

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

40.0

75%

30.0

Twentyshilling

Vestas

Statkraft

Statkraft

37.8

100%

37.8

Walney

Siemens

Orsted

Total

367.2

25.1%

92.2

Windy Rig

Vestas

Statkraft

Statkraft

43.2

100%

43.2

Yelvertoft

Senvion

BayWa

Statkraft

16.4

51.6%

8.5

Total






1,459.8

 

Portfolio Performance

 

Portfolio generation for the six months ended 30 June 2022 was 2,175 GWh, 1 per cent above budget.

 

Notable issues affecting portfolio availability were:

 

· several grid outages due to storms at Clyde, Kildrummy and other sites in January and February, with extended periods of downtime due to adverse weather conditions (no material damage);

· a blade failure at Windy Rig in January;

· long duration outages at Corriegarth due to generator issues and a shortage of skilled technicians;

· various stops due to major component replacements at North Hoyle and Burbo Bank Extension; and

· various pitch motor exchanges and generator issues at Dunmaglass.

 

In general, the portfolio performed well, in line with expectations.

 

Health, Safety and the Environment

 

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 focused 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.

 

The Company has continued to give to local community funds and invest in a range of local environmental and social projects. In addition, we have been investigating ways to provide research funding to improve the sustainability of wind farms over the long term and are likely to start investing in a number of new initiatives shortly.

 

In the first half of 2022, the portfolio generated sufficient electricity to power 1.5 million homes and avoided CO2 emission of approximately 0.9 million tonnes through the displacement of thermal generation.

 

Investment

 

On 24 June 2022, the Group acquired the 37.8MW Twentyshilling subsidy free wind farm from Statkraft for £49.6 million (commitment made in 2019).

 

During the period, the Group provided a further £18.2 million of construction finance to the Kype Muir Extension subsidy free wind farm project (target commissioning in Q4 2022). As at 30 June 2022, the Group's total investment in Kype Muir Extension (including accrued interest) was £29.3 million.

 

On 16 May 2022, the Group announced that it had agreed to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm from Global Infrastructure Partners ("GIP") for a total cash consideration (including cash and working capital) of approximately £400 million. The acquisition is expected to complete in Q3 2022. Hornsea 1 benefits from a 15 year CFD at a price of £175.25/MWh (real 2022) and is currently 50 per cent owned by Orsted and 50 per cent owned by GIP, with GIP's 50 per cent stake part funded by £2.9 billion of limited recourse debt. The Group's pro rata share of this limited recourse debt is £0.7 billion, giving a total enterprise value of £1.1 billion for the Group's net 12.5 per cent stake.

 

Gearing

 

As at 30 June 2022, the Group had £ 900 million of debt outstanding, equating to 20 per cent of GAV (limit 40 per cent).

 

Debt outstanding comprised £900 million of fixed rate term debt at Company level. There was zero outstanding under the Company's £600 million revolving credit facility (the £250 million balance at the beginning of the period having been refinanced with £200 million AXA term debt and £50 million repaid from excess cash flow during the period).

 

Financial Performance

 

Power prices during the period were well above budget, primarily reflecting high gas prices. The average N2EX Day Ahead auction price was £ 176.05 /MWh (H1 2021: £ 68.45/MWh ).

 

Net cash generated by the wind farm SPVs was £ 328.8 million and dividend cover for the period was 3.8 x.

 

Cash balances (Group and wind farm SPVs) increased by £ 119.1 million to £ 236.2 million.

 

Group and wind farm SPV cash flows

For the six months ended
30 June 2022

 

£'000

 


Net cash generation (1)

328,847

Dividends paid

(86,326)



Acquisitions (2)

(70,386)

Acquisition costs

(1,953)



Equity issuance

-

Equity issuance costs

(42)



Net repayment under debt facilities

(50,000)

Upfront finance costs

(1,076)



Movement in cash (Group and wind farm SPVs)

119,064

Opening cash balance (Group and wind farm SPVs)

117,099

Closing cash balance (Group and wind farm SPVs)

236,163

 


Net cash generation

328,847

Dividends

86,326

Dividend cover

3.8x

 

(1)  Alternative Performance Measure as defined below.

(2)  Includes £2,579k deferred consideration in relation to Windy Rig.

 

The following 2 tables provide further detail in relation to net cash generation of £ 328.8 million:

 

Net Cash Generation - Breakdown

For the six months ended
30 June 2022

 

£'000

Revenue

491,862

Operating expenses

(96,679)

Tax

(40,127)

Other

(1,582)

Wind farm cash flow

353,474

 


Management fee

(14,928)

Operating expenses

(1,000)

Ongoing finance costs

(10,545)

Other

2,679

Group cash flow

(23,794)

 


VAT (Group and wind farm SPVs)

(833)



Net cash generation

328,847

 

 

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

For the six months ended
30 June 2022

 

£'000

Net cash flows from operating activities (1)

309,426

Movement in cash balances of wind farm SPVs (2)

24,694

Repayment of shareholder loan investment (1)

5,272

Finance costs (1)

(11,621)

Upfront finance costs (3)

1,076

Net cash generation

328,847

 

(1) Consolidated Statement of Cash Flows.

(2) Note 8 to the financial statements.

(3)  Note 12 to the financial statements.

 

Investment Performance

 


£'m

NAV at 31 December 2021

3,093.7

Investment

70.4

Movement in portfolio valuation

228.6

Movement in cash (Group and wind farm SPVs)

119.1

Movement in other relevant liabilities

(2.1)

Movement in Aggregate Group Debt

50.0

NAV at 30 June 2022

3,559.7

 

The increase in the portfolio valuation of £ 228.6 million equates to approximately 10 pence per share, which can be further broken down as follows: +13 pence from an increase in forecast power prices, +6 pence from an increase in inflation assumptions, -3 pence from an increase in the discount rate used in the DCF valuation and -6 pence attributable to depreciation and other assumption changes.

 

Total dividends of £ 86.3 million were paid in the period.

 

Reconciliation of Statutory Net Assets to Reported NAV

 


As at
30 June 2022

As at
31 December 2021


£'000

£'000

Operating portfolio

4,199,950

3,919,545

Construction portfolio

29,311

10,702

Cash (wind farm SPVs)

136,992

112,298

Fair value of investments

4,366,253

4,042,545

Cash (Group)

99,171

4,801

Other relevant liabilities

(5,738)

(3,647)

GAV

4,459,686

4,043,699

Aggregate Group Debt

(900,000)

(950,000)

NAV

3,559,686

3,093,699

Reconciling items

-

-

Statutory net assets

3,559,686

3,093,699

 

 

 

Shares in issue

2,317,603,896

2,317,097,822

NAV per share (pence)

153.6

133.5

 

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 2021 was 7.2 per cent. The blended portfolio discount rate as at 30 June 2022 has increased to 7.7 per cent, reflecting (i) a greater proportion of merchant cash flows and (ii) an increase in the underlying discount rate following an increase in relevant benchmark rate.

 

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 3.5 per cent to 2030 and 2.5 per cent thereafter for RPI and 2.5 per cent (all years) for CPI. Higher inflation assumptions are applied to 2022.

 

Base case energy yield assumptions are P 50 ( 50 per cent probability of exceedance) forecasts based on long term wind data and operational history. The P 90 ( 90 per cent probability of exceedance over a 10 year period) and P 10 ( 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. Short term power price assumptions reflect the forward curve as at 4 July 2022 with an appropriate discount applied, reflecting high volatility and market uncertainty.

 

Over the life of the portfolio, fixed cashflows are forecast to contribute 50 per cent of the total DCF value (50 per cent merchant).

 

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 27GW of operating UK wind farms (14GW onshore plus 13GW offshore). In monetary terms, the secondary market for operating UK wind farms is over £90 billion. The Group currently has a market share of approximately 5 per cent. As at 30 June 2022, the average age of the portfolio was 7 years (versus 5 years at listing in March 2013).

 

Driven by recent security of supply and cost concerns, as well as by net zero climate objectives, the UK is now targeting 50GW of offshore wind by 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. Over 10GW of total capacity was awarded in CFD Allocation Round 4, announced on 7 July 2022.

 

It is anticipated that the Group will continue to invest in ROC, CFD and subsidy free wind farms. At all times, the Group will maintain a balanced portfolio, in line with the Company's Investment Objective.

 

Power prices during the period were well above budget, primarily reflecting high gas prices driven by the recovery in global demand, supply chain constraints and the war in Ukraine. The average N2EX Day Ahead auction price was £ 176.05 /MWh (H1 2021: £ 68.45/MWh ). Forward power prices over the period 2022-2025 remain high. High power prices drove strong cash generation in H1 2022 and the Group should continue to benefit from strong cash generation over the next few years through its balanced exposure to power prices.

 

Short term power prices have been modelled on an appropriately conservative basis, reflecting high volatility and market uncertainty. In the medium term, various market design options are being considered by BEIS with a view to accommodating a higher proportion of renewable generation and storage.

 

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

27 July 2022

 

Condensed Consolidated Statement of Comprehensive Income (unaudited)

For the six months ended 30 June 2022

 


Note

For the six months ended
30 June 2022

For the six months ended
30 June 2021



£'000

£'000




Return on investments

3

582,190

140,171

Other income

 

990

889

Total income and gains

 

583,180

141,060

 




Operating expenses

4

(16,509)

(12,256)

Investment acquisition costs

 

(577)

(339)

Operating profit

 

566,094

128,465

 




Finance expense

12

(14,497)

(11,792)



 

 

Profit for the year before tax

 

551,597

116,673

Tax

5

-

-





Profit for the year after tax

 

551,597

116,673

 




Profit and total comprehensive income attributable to:

 

 

 

Equity holders of the Company


551,597

116,673

 




Earnings per share

 



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

6

23.80

6.03

 

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

 

 

Condensed Consolidated Statement of Financial Position (unaudited)

As at 30 June 2022

 


Note

30 June 2022

31 December 2021


 

£'000

£'000




Non current assets

 



Investments at fair value through profit or loss

8

4,366,253

4,042,545



4,366,253

4,042,545

Current assets

 



Receivables

10

1,268

2,632

Cash and cash equivalents

 

99,171

4,801



100,439

7,433

Current liabilities

 



Payables

11

(7,006)

(6,279)

Net current assets

 

93,433

1,154

 


 

 

Non current liabilities

 

 

 

Loans and borrowings

12

(900,000)

(950,000)

 

 

 

 

Net assets

 

3,559,686

3,093,699

 




Capital and reserves

 



Called up share capital

14

23,177

23,171

Share premium account

14

2,469,650

2,468,940

Retained earnings

 

1,066,859

601,588

Total shareholders' funds

 

3,559,686

3,093,699

Net assets per share (pence)

15

153.6

133.5

 

Authorised for issue by the Board of Greencoat UK Wind PLC (registered number 08318092) on 27 July 2022 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 2022

 

For the six months ended
30 June 2022

Note

Share capital

Share premium

Retained earnings

Total



£'000

£'000

£'000

£'000

Opening net assets attributable to shareholders (1 January 2022)


23,171

2,468,940

601,588

3,093,699

Issue of share capital

14

6

744

-

750

Share issue costs

14

-

(34)

-

(34)

Profit and total comprehensive income for the period


-

-

551,597

551,597

Interim dividends paid in the period

7

-

-

(86,326)

(86,326)

 






Closing net assets attributable to shareholders

 

  23,177

  2,469,650

  1,066,859

  3,559,686

 

The total reserves distributable by way of a dividend as at 30 June 2022 were £540,760,772.

 

 

For the six months ended
30 June 2021

 

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


1,515

196,853

-

198,368

Share issue costs


-

(2,933)

-

(2,933)

Profit and total comprehensive income for the period


-

-

116,673

116,673

Interim dividends paid in the period


-

-

(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.

 

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 2022

 


Note

For the six months ended
30 June 2022

For the six months ended
30 June 2021


 

£'000

£'000

 




Net cash flows from operating activities

16

309,426

129,561

 




Cash flows from investing activities

 



Acquisition of investments


(70,386)

(68,519)

Investment acquisition costs


(1,953)

(4,848)

Repayment of shareholder loan investments

8

5,272

5,699

Net cash flows from investing activities

 

(67,067)

(67,668)

 


 

 

Cash flows from financing activities

 



Issue of share capital

14

-

197,618

Payment of issue costs


(42)

(2,933)

Amounts drawn down on loan facilities

12

200,000

-

Amounts repaid on loan facilities

12

(250,000)

(160,000)

Finance costs


(11,621)

(11,283)

Dividends paid

7

(86,326)

(67,846)

Net cash flows from financing activities

 

(147,989)

(44,444)

 




Net increase in cash and cash equivalents during the period


94,370

17,449

 


 

 

Cash and cash equivalents at the beginning of the period


4,801

7,888





Cash and cash equivalents at the end of the period


99,171

25,337

 

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 2022

 

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 2021 and are expected to continue to apply in the Group's consolidated financial statements for the year ended 31 December 2022.

 

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 2021. The audited annual accounts for the year ended 31 December 2021 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 2022, the Group had net current assets of £ 93.4 million (31 December 2021: £1.2 million) and cash balances of £ 99.2 million (31 December 2021: £4.8 million) which are sufficient to meet current obligations as they fall due.

 

The COVID-19 pandemic 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;

· Increased volatility in the fair value of investments;

· 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 and do not consider that the effects 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 have adequate resources to continue in operational existence for at least up to July 2023. 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, 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 74 of the Company's Annual Report for the year ended 31 December 2021. Following consultation with shareholders, the Board announced on 13 June 2022 certain amendments to the Investment Management Agreement. In particular, an additional tier was added to the cash fee structure, which will see a reduction in the fee charges in respect of NAV over £3,000 million to an amount equal to 0.7 per cent, paid in quarterly instalments and applied retrospectively.

 

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

 


For the six months ended
30 June 2022

For the six months ended
30 June 2021


£'000

£'000

 

 

 

Cash Fee

13,718

10,038

Equity Element

750

750

 

14,468

10,788

 

As at 30 June 2022, total amounts receivable from the Investment Manager were £138,215 (31 December 2021: payable £1,072,061).

 

3.  Return on investments

 


For the six months ended
30 June 2022

For the six months ended
30 June 2021


£'000

£'000

 

 

 

Dividends received (note 17)

297,483

121,101

Unrealised movement in fair value of investments (note 8)

258,752

135

Interest on shareholder loan investment received

25,955

18,935

 

582,190

140,171

 

4.  Operating expenses

 


For the six months ended
30 June 2022

For the six months ended
30 June 2021


£'000

£'000

 

 

 

Management fees (note 2)

14,468

10,788

Group and SPV administration fees

439

434

Non-executive Directors' fees

178

135

Other expenses

1,309

830

Fees to the Company's Auditor:



for audit of the statutory financial statements

111

65

for other audit related services

4

4

 

16,509

12,256

 

The fees to the Company's Auditor for the period ended 30 June 2022 include £ 4,173 (30 June 2021: £3,838) 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 2022 is £ nil (30 June 2021: £nil). The Group has tax losses carried forward available to offset against current and future profits as at 30 June 2022 of £29,583,434 (30 June 2021: £ 23,032,849 ).

6.  Earnings per share

 

 

For the six months ended
30 June 2022

For the six months ended
30 June 2021

 

 

 

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

551,597

116,673

Weighted average number of ordinary shares in issue

2,317,381,121

1,933,649,612

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

23.80

6.03

 

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 significant impact on the basic earnings per share.

 

 

7.  Dividends declared with respect to the period

 

Interim dividends paid during the period ended 30 June 2022

Dividend per share

Total dividend


pence

£'000

With respect to the quarter ended 31 December 2021

1.795

41,596

With respect to the quarter ended 31 March 2022

1.930

44,730


3.725

86,326

 

Interim dividends declared after 30 June 2022 and not accrued in the period

Dividend per share

Total dividend


pence

£'000

With respect to the quarter ended 30 June 2022

1.930

44,734

 

1.930

44,734

 

As disclosed in note 18, on 27 July 2022 , the Board approved a dividend of 1.930 pence per share with respect to the quarter ended 30 June 2022, bringing the total dividends declared with respect to the period to 3.86 pence per share. The record date for the dividend is 12 August 2022 and the payment date is 26 August 2022 .

 

8.  Investments at fair value through profit or loss

 

For the period ended 30 June 2022

Loans

Equity interest

Total


£'000

£'000

£'000

 

 

 


Opening balance

924,748

3,117,797

4,042,545

Additions(1)

50,397

19,831

70,228

Repayment of shareholder loan investments (note 17)

(5,272)

-

(5,272)

Unrealised movement in fair value of investments (note 3)

1,018

257,734

258,752

 

970,891

3,395,362

4,366,253

 




(1)  Includes a true-up receivable at Glen Kyllachy of £158k (note 10).

 

 

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

 

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 2022

For the six months ended
30 June 2021

 

£'000

£'000

 

 

 

Increase in portfolio valuation

228,628

14,882

Repayment of shareholder loan investments (note 17)

5,272

5,699

Movement in cash balances of SPVs

24,694

(16,191)

True-up receivable at Glen Kyllachy (note 10)

158

-

Increase in Douglas West cash balance

-

(4,255)

 

258,752

135

 

 

Fair value measurements

As disclosed on pages 78 to 79 of the Company's Annual Report for the year ended 31 December 2021 , 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 2022.

 

Sensitivity analysis

The fair value of the Group's investments is £4,366,253,152 (31 December 2021: £4,042,545,081). The analysis below is provided 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

7.7 per cent

+ 0.5 per cent

(114,365)

(4.9)



- 0.5 per cent

120,672

5.2






Long term inflation rate

RPI: 3.5 per cent to 2030, 2.5 per cent thereafter
CPI: 2.5 per cent

- 0.5 per cent

(113,686)

(4.9)


+ 0.5 per cent

119,454

5.2






Energy yield

P50

10 year P90

(247,971)

(10.7)



10 year P10

247,939

10.7






Power price

Forecast by leading consultant

- 10 per cent

(250,965)

(10.8)


+ 10 per cent

250,479

10.8






Asset life

30 years

- 5 years

(162,556)

(7.0)



+ 5 years

109,980

4.7






 

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

Place of business

Ownership interest as at
30 June 2022

Twentyshilling

Scotland

100 %

 

There are no other changes to the unconsolidated subsidiaries or the associates and joint ventures of the Group as disclosed on pages 80 and 81 of the Company's Annual Report for the year ended 31 December 2021.

 

Security deposits and guarantees provided during the period by the Group on behalf of its investments are as follows:

 

Provider of security

Investment

Beneficiary

Nature

Purpose

Amount
£'000

The Company

Twentyshilling

Statkraft

Guarantee

Cabling, radar

12,944

The Company

Twentyshilling

Santander

Bond

Decommissioning

  1,903






14,847

 

There are no other changes to guarantees and counter-indemnities provided by the Group, as disclosed on page 81 of the Company's Annual Report for the year ended 31 December 2021.

 

10.  Receivables

 


30 June 2022

31 December 2021


 

 

 

Amounts due from SPVs

2

1,798

VAT receivable

545

407

Prepayments

187

107

True-up receivable at Glen Kyllachy (note 8)

158

-

Investment management fee receivable (note 2)

138

-

Other receivables

238

320

 

1,268

2,632

 

 

11.  Payables

 


30 June 2022

31 December 2021


£'000

£'000

 

 

 

Loan interest payable (note 12)

5,324

2,788

Commitment fee payable (note 12)

695

344

Acquisition costs payable

160

1,595

Investment management fee payable

-

1,072

Share issue costs payable

-

10

Other payables

827

470

 

7,006

6,279

 

 

12.  Loans and borrowings

 


30 June 2022

31 December 2021


£'000

£'000

 

 

 

Opening balance

950,000

1,100,000

Revolving credit facility



  Drawdowns

-

110,000

  Repayments

(250,000)

(260,000)

Term debt facilities



  Drawdowns

200,000

-

Closing balance

900,000

950,000

 


For the six months ended
30 June 2022

For the six months ended
30 June 2021

 

£'000

£'000

 

 

 

Loan interest

11,586

11,410

Commitment fees

1,748

312

Professional fees

1,076

-

Other facility fees

87

70

Finance expense

14,497

11,792

 

The loan balance as at 30 June 2022 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 83 of the Company's Annual Report for the year ended 31 December 2021.

 

As at 30 June 2022, the balance of this facility was £nil (31 December 2021: £250 million), accrued interest was £nil (31 December 2021: £12,554) and the outstanding commitment fee payable was £694,521 (31 December 2021: £343,699).

 

On 31 January 2022, the Company utilised £200 million under its 8 year term debt facility with AXA.

 

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

All-in rate

Loan principal

Accrued interest at 30 June 2022

 


%

%

%

£'000

£'000

NAB

1 November 2023

1.20

1.42800

2.62800

75,000

319

NAB

1 November 2023

1.20

0.77250

1.97250

25,000

80

CBA

7 December 2023

1.00

0.11300

1.11300

50,000

88

NAB

4 November 2024

1.15

1.06100

2.21100

50,000

179

CBA

14 November 2024

1.35

0.80750

2.15750

50,000

171

CBA

6 March 2025

1.55

1.52650

3.07650

50,000

244

CIBC

3 November 2025

1.50

1.51030

3.01030

100,000

437

NAB

1 November 2026

1.50

1.59800

3.09800

75,000

376

NAB

1 November 2026

1.50

0.84250

2.34250

25,000

95

CIBC

14 November 2026

1.40

0.81325

2.21325

100,000

321

CBA

4 November 2027

1.60

1.36800

2.96800

100,000

472

AXA

31 January 2030



3.03000

125,000

1,567

AXA

31 January 2030

1.70

1.44500

3.14500

75,000

975

 

 

 

 

 

900,000

5,324

 

13.  Contingencies and commitments

 

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 also agreed to provide construction finance of up to £47 million, of which £ 29.3 million had been utilised as at 30 June 2022.

 

In May 2022, the Group entered into an agreement to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm for a total cash consideration of approximately £400 million. The acquisition is expected to complete in Q3 2022.

 

14.  Share capital - ordinary shares of £0.01

 

Six months to 30 June 2022

 




Date

Issued and fully paid

Number of shares issued

Share capital

Share premium

Total



 

£'000

£'000

£'000

1 January 2022

 

2,317,097,822

23,171

2,468,940

2,492,111

Shares issued to the Investment Manager

 

 

 

 

4 February 2022

True-up of 2021 and
Q1 2022 Equity Element

254,855

3

372

375

5 May 2022

Q2 2022 Equity Element

251,219

3

372

375



506,074

6

744

750

 





 

Other

 



 

1 January 2022

Less share issue costs

-

-

(34)

(34)

30 June 2022

 

2,317,603,896

23,177

2,469,650

2,492,827

 

15.  Net assets per share

 

 

30 June 2022

31 December 2021

 

 

 

Net assets - £'000

3,559,686

3,093,699

Number of ordinary shares issued

2,317,603,896

2,317,097,822

Total net assets - pence

153.6

133.5

 

 

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

 


For the six months ended
30 June 2022

For the six months ended
30 June 2021


£'000

£'000

Operating profit for the year

566,094

128,465

Adjustments for:



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

(258,752)

(135)

Investment acquisition costs

577

339

Decrease in receivables

1,534

190

Decrease in payables

(777)

(48)

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

750

750

Net cash flows from operating activities

309,426

129,561

 

 

17.  Related party transactions

 

During the period, the Company increased its loan to Holdco by £ 411,425 (30 June 2021: £48,400,000) and Holdco settled amounts of £ 163,866,761 (30 June 2021: £103,273,112). The amount outstanding at the period end was £ 2,267,310,484 (31 December 2021: £2,430,765,820).

 

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

 


For the six months ended
30 June 2022

For the six months ended
30 June 2021


£'000

£'000

Clyde

35,938

14,954

Humber Holdco (1)

29,722

15,760

Stronelairg Holdco (2)

24,640

4,379

Corriegarth

17,054

5,859

Braes of Doune

14,380

6,330

North Hoyle

14,186

2,788

SYND Holdco (3)

11,670

4,622

Fenlands (4)

11,300

4,436

ML Wind (5)

10,241

3,528

Brockaghboy

9,791

6,170

Walney

9,366

11,525

Dunmaglass Holdco (6)

9,362

3,072

Douglas West

8,644

-

Rhyl Flats

8,184

4,266

Windy Rig

7,093

-

Andershaw

6,913

-

Tappaghan

5,933

2,361

Maerdy

5,427

2,708

Little Cheyne Court

5,412

2,296

Langhope Rig

4,924

1,713

Bishopthorpe

4,721

2,405

Slieve Divena

4,602

1,989

Bicker Fen

4,550

1,478

Crighshane

4,020

-

Slieve Divena II

3,991

1,416

Screggagh

3,871

1,383

Church Hill

3,124

660

Hoylake (7)

2,961

-

Nanclach

2,618

-

Glen Kyllachy

2,500

-

Kildrummy

2,221

2,248

Bin Mountain

2,202

984

Cotton Farm

1,913

2,376

Carcant

1,909

916

Earl's Hall Farm

1,100

1,806

Stroupster

1,000

6,673

 

297,483

121,101

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

(2)  The Group's investment in Stronelairg is held through Stronelairg Holdco.

(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 investments in Middlemoor and Lindhurst are held through ML Wind.

(6)  The Group's investment in Dunmaglass is held through Dunmaglass Holdco.

(7)  The Group's investment in Burbo Bank Extension is held through Hoylake.

 

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

Windfarm

Loans at 1 January 2022(1)

Loans advanced in the period

Loan repayments in the year

Loans at 30 June 2022

Accrued interest at 30 June 2022

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Andershaw

32,641

32,641

488

33,129

Church Hill

14,702

14,702

116

14,818

Clyde

71,503

71,503

1,040

72,543

Corriegarth

42,553

42,553

637

43,190

Crighshane

22,264

 (735)

21,529

170

21,699

Douglas West

43,648

43,648

216

43,864

Dunmaglass

56,864

56,864

851

57,715

Glen Kyllachy

51,470

 (2,694)

48,776

247

49,023

Hoylake

172,279

172,279

172,279

Kype Muir Extension

10,606

18,455(2)

29,061

250

29,311

Slieve Divena II

22,182

22,182

175

22,357

Stronelairg

86,619

86,619

1,296

87,915

Tom nan Clach

80,654

 (1,843)

78,811

1,478

80,289

Twentyshilling

32,190

32,190

37

32,227

Walney

172,727

172,727

852

173,579

Windy Rig

36,772

36,772

181

36,953

 






 


917,484

50,645

 (5,272)

962,857

8,034

970,891

 

(1)  Excludes accrued interest at 31 December 2021 of £7,264,193.

(2)  Includes capitalised interest of £247,838.

 

18.  Subsequent events

 

On 27 July 2022 , the Board approved a dividend of £44.7 million equivalent to 1.930 pence per share. The record date for the dividend is 12 August 2022 and the payment date is 26 August 2022 .

 

Company Information

 

Directors (all non-executive)

Registered Company Number

Shonaid Jemmett-Page (Chairman)

08318092

Martin McAdam

 

Lucinda Riches C.B.E

Registered Office

Caoimhe Giblin

5th Floor

Nicholas Winser

20 Fenchurch Street

London

EC3M 3BY

William Rickett C.B. (1)

 

Investment Manager

Greencoat Capital LLP

 

4th Floor, The Peak

Registered Auditor

5 Wilton Road

BDO LLP

London

55 Baker Street

SW1V 1AN

London


W1U 7EU

Administrator and Company Secretary

 

Ocorian Administration (UK) Limited

 

Unit 4, The Legacy Building

Joint Broker

Northern Ireland Science Park

RBC Capital Markets

Queen's Road

Riverbank House

Belfast

2 Swan Lake

BT3 9DT

London

 

EC4R 3BF

Depositary

 

Ocorian Depositary (UK) Limited

 

Unit 4, The Legacy Building

Joint Broker

Northern Ireland Science Park

Jefferies International Limited

Queen's Road

100 Bishopsgate

Belfast

London

BT3 9DT

EC2N 4JL

 

 

Registrar

 

Computershare Limited


The Pavilions


Bridgewater Road


Bristol

 

BS99 6ZZ

 



 


 

(1)  Retired from the Board with effect from 28 April 2022.

 

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

Andershaw means Andershaw Wind Power Limited

AXA means funds managed by AXA Investment Managers UK Limited

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

BEIS means Department for Business, Energy and Industrial Strategy

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

Burbo Bank Extension means Hoylake Wind Limited, Greencoat Burbo Extension Holding (UK) Limited, Burbo Extension Holding Limited and Burbo Extension 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

Corriegarth Holdings means Corriegarth Wind Energy Holdings 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 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

Glen Kyllachy means Glen Kyllachy Wind Farm Limited

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

Holdco means Greencoat UK Wind Holdco Limited

Hoylake means Hoylake Wind Limited

Hornsea 1 means Hornsea 1 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

Kype Muir Extension means Kype Muir Extension Wind Farm

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

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

Twentyshilling means Twentyshilling Limited

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

Windy Rig means Windy Rig Wind Farm 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.

 

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