Interim Management Statement

RNS Number : 8088U

Greencoat UK Wind PLC

21 October 2014

 



Greencoat UK Wind PLC (UKW)

Interim Management Statement (IMS)

21 October 2014

UKW Interim Management Statement

Greencoat UK Wind PLC ("UKW" or the "Company"), the leading renewable infrastructure fund announces its interim management statement for the period since 1 July 2014.  The Company's September 2014 Factsheet is available on the Company's website, www.greencoat-ukwind.com.

Highlights

·     Operational performance in line with management expectations

·     Dividend of 3.08p per share for the period 1 January 2014 to 30 June 2014 paid on 29 August 2014

·     Net Asset Value ("NAV") increased to £360.3m as at 30 September 2014 (104.8p per share), up from 102.7p per share (ex-dividend) as at 30 June 2014

·     Acquisition of majority stake in portfolio of four onshore wind farms from AES on 22 Aug 2014, funded through reinvestment of the Company's cash resources and acquisition debt facility (alongside Swiss Life as minority partner)

·     Net installed capacity increased from 226.4MW to 271.5MW

Tim Ingram, Chairman of Greencoat UK Wind PLC said:

"The Company continues to deliver on its investment objectives: stable and growing dividends; and real NAV growth.  Our 18 month track record demonstrates performance in line with expectations and, as the Company grows, we aim to deliver further value for existing and future shareholders."

Laurence Fumagalli, Partner of Greencoat Capital LLP said:

"We look forward to continuing to make further value accretive acquisitions. The market for utility-scale wind assets remains very favourable for independent and experienced buyers such as UKW.  We were particularly pleased to have been able to bring Swiss Life alongside us to purchase AES's UK wind portfolio in August."

Investment Performance and Dividends

30 September 2014 NAV was £360.3m (104.8p per share), up from 102.7p per share (ex-dividend) as at 30 June 2014.

The Company paid a dividend of 3.08p per share on 29 August 2014 in respect of the period from 1 January 2014 to 30 June 2014.

The target dividend for 2014 is 6.16p per share (6p for 2013 inflated by RPI) in line with the Company's long term dividend policy.

Acquisitions

During the period, UKW acquired a 51.6% shareholding in four wind farms from AES: Sixpenny Wood (20.5 MW) in the East Riding of Yorkshire; Yelvertoft (16.4 MW) in Northamptonshire; North Rhins (22.0 MW) in Dumfries and Galloway; and Drone Hill (28.6 MW) in the Borders.  The total consideration was £90.6m, which was funded through reinvestment of the Company's cash resources and its acquisition debt facility.  Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A. ("Swiss Life") co-invested alongside (48.4%).

Gearing

UKW has the ability to raise debt at the fund level as stated in the Company's investment policy.  The limit on total short term acquisition financing plus long term debt is 40% of Gross Asset Value ("GAV") at drawdown.  As at 30 September 2014, outstanding acquisition debt was £225m (38% of GAV).  Proceeds from the Company's current fundraising will be used to prepay acquisition debt.

Outlook and Pipeline of Future Acquisitions

The UK wind farm market represents £60bn of further investment opportunities in the short to medium term.  The Companybelieves its approach of maintaining no leverage at the asset level and its ability to act independently position it competitively in the market to acquire operational assets and makes it an attractive partner for utility vendors.

The Investment Manager is currently actively evaluating and performing due diligence on a number of interesting opportunities.

For further information, please contact:

Greencoat UK Wind PLC                               020 7832 9400

Stephen Lilley

Laurence Fumagalli

Tom Rayner

Tulchan                                                                  020 7353 4200

Stephen Malthouse

Christian Cowley

Notes to Editors:

Greencoat UK Wind PLC is the leading renewable infrastructure fund, solely and fully invested in ten operating UK wind farms with net generating capacity of 184MW.  The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation (6p for 2013, 6.16p for 2014) while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow and the prudent use of portfolio leverage.

UKW is managed by an experienced team of senior executives from Greencoat Capital LLP, the cleantech and renewables focused investment management firm, and overseen by a strong and experienced independent board.

UKW is incorporated in England and Wales and is a UK Investment Trust.

For more information about UKW, please visit www.greencoat-ukwind.com

For more information about Greencoat Capital LLP, please visit www.greencoat-capital.com

 

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