Net Asset Value - 30 September 2023
4 December 2023
Atrato Onsite Energy plc
(the "Company")
Net Asset Value
Atrato Onsite Energy plc (LSE: ROOF), the investment company focusing on clean energy generation, announces its unaudited net asset value ("NAV") as at 30 September 2023.
Net Asset Value
The Company's NAV as at 30 September 2023 was £138.1 million or 92.0 pence per share (30 September 2022: £139.1 million or 92.8 pence per share).
In line with the higher interest rate environment, the Company valued its portfolio on a weighted average unlevered discount rate of 7.4% (30 September 2022: 6.6%, 31 March 2023: 6.2%). As at 30 September 2023 the Company did not have any debt and hence applies an unlevered discount rate to value its portfolio.
Summary of NAV key drivers:
|
|
£m |
Pence per share |
|
NAV as at 30 September 2022 |
139.1 |
92.8 |
|
Asset revaluation |
£15.0 |
10.0 |
|
Operational movements |
£4.5 |
3.0 |
|
Net cash generated minus fund costs |
£1.0 |
0.6 |
|
Inflation |
£(1.1) |
(0.8) |
|
Power prices |
£(1.3) |
(0.9) |
|
Discount rate |
£(11.6) |
(7.7) |
|
Dividends paid |
£(7.5) |
(5.0) |
|
NAV as at 30 September 2023 |
138.1 |
92.0 |
Asset revaluation: Includes the value increase associated with projects progressing as they met specific key project milestones. The latter was predominantly driven by progress on Skeeby solar farm and Britvic's London Road project. This assume that all other variables are held equal.
Operational movements: Includes adjustments to individual assets for new contract pricing, the inclusion of REGOs in the valuation on projects where the Company benefits from REGOs and an update to the commercial operations date of installation projects where these have changed.
Net cash generated minus fund costs: Represents the net cash inflow of the Company's revenues less operating costs.
Inflation assumption: Reflects the impact of the updated inflation curves. The Company uses market forecast curves for CPI and RPI.
Power prices: Reflects the movement on the portfolio since September 2022 due to updated power price curves. The Company has one of the lowest sensitivities to power prices in the sector(1). Its high levels of contracted revenue limit its exposure to power price volatility and hence a 10% reduction in power prices would only have a 4.6% impact on the Company's NAV as at 30 September 2023.
Discount rate assumption: Represents the impact on the fair value from changes to the discount rate due to movements in interest rates, transactional prices observed in the sector and the macro-economic environment.
Dividends paid: Dividends of £7.5 million were paid during the year in respect of the period to 30 June 2023. The Company has a progressive dividend target from FY24 onwards and will announce its new target dividend as part of its FY 2023 results.
Outlook
The Company has grown rapidly over the year to become the leading commercial and industrial platform in the UK. All the Company's remaining installation projects are expected to be energised by the end of March 2024 at which point the portfolio will be generating c.173GWh of clean energy, avoiding 37,000 tonnes of CO2 emissions per annum. This is equivalent to powering 64,000 homes with clean energy.
For further information, please contact:
|
Atrato Partners Gurpreet Gujral Christopher Fearon
|
+44 (0)77 959 75560
|
|
Stifel Nicolaus Europe Limited Mark Young Rajpal Padam Madison Kominski
|
+44 (0)20 7710 7600
|
|
Kaso Legg Communications Limited Charles Gorman Charlotte Francis
|
atrato@kl-communications.com +44 (0)20 3995 6673
|
Notes to Editors
Atrato Onsite Energy plc (LSE: ROOF) is an investment company specialising in clean energy generation with 100% carbon traceability. The Company focuses on UK solar, helping its clients achieve net zero and reduce their energy bills.
The Company aims to provide investors with attractive capital growth and long dated, index-linked income, targeting a 5% dividend yield and a NAV total return of 8 - 10%(7). Its shares were admitted to trading on the premium segment of the Main Market of the London Stock Exchange on 23 November 2021. Atrato Partners Limited is the Company's Investment Adviser.
Further information is available on the Company's website www.atratorenewables.com
The Company's LEI is 213800IE1PPREDIIZB62.
(1) Renewables investment trust sector
(2) Once portfolio is fully operational
(3) The target dividend set out above is a target only and not a profit forecast. There can be no assurance that these targets will be met
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