Company Update

SDCL Efficiency Income Trust PLC

30 September 2026

 

30 September 2026

SDCL Efficiency Income Trust plc

("SEIT" or the "Company")

Company update

Following shareholder approval of the Company's revised investment objective and policy and wind-down strategy (the “Investment Policy”) in July 2026, significant progress has been made in establishing the governance, financing and operational framework required to support its implementation, as well as engaging with potential purchasers of the assets and preparing and sharing sales information. The Board and Investment Manager remain focused on delivering the wind-down in an orderly manner which seeks to achieve a balance between returning cash promptly to Shareholders and maximising value.

Since the General Meeting held in July, the priority has been to progress the strategy approved by shareholders whilst maintaining a focus on the operations of the portfolio:

• The Company agreed amendments to its financing arrangements to reflect the shareholder approved wind-down strategy, including lender approval of the revised Investment Policy.
• Enhanced governance policies, procedures and controls have been designed and implemented to ensure appropriate oversight, accountability, risk management and decision-making.
• The Company’s adviser Jefferies has been overseeing the preparation of and communication of sales information to potential purchasers.

The Company also published a Circular on 25 September 2026 in connection with the proposed appointments of Boaz Weinstein and Richard Pavry as non-executive Directors. Shareholders are encouraged to read the Circular and to vote in favour of the resolutions to be considered at the General Meeting to be held on 15 October 2026. The Board and the Company’s two largest shareholders are of the view that the additional Board appointments should contribute positively to the oversight of the realisation of the Company's portfolio of assets.

The Investment Management Agreement is under review and an update will be provided in due course.

Asset Realisations

The Company continues to prioritise asset realisations in line with the revised Investment Policy. The Board and its advisers are in active discussions with a number of potentially interested parties.

Operational Performance

The portfolio has continued to demonstrate resilience, with overall operational performance broadly in line with the Investment Manager's expectations, providing a stable platform from which to execute the Company’s wind-down strategy. The diversified nature of the portfolio continues to provide stability from macro pressures and geopolitical instability, thereby supporting continued cash generation at portfolio level which is primarily being used to reduce debt and support the value of the underlying assets. A number of portfolio companies have made further progress on strategic initiatives and delivered good operational results.

The Investment Manager remains focused on preserving portfolio value, supporting management teams and maintaining operational performance throughout the wind-down process. This includes progress on business development opportunities, operational optimisation programmes and the completion of selected development and restructuring workstreams.

Balance Sheet and Capital Allocation

As at 30 September 2026, drawings under the Company's revolving credit facility (“RCF”) were c. £188 million. The Company remains focused on reducing leverage through a combination of portfolio cash generation, project-level financing initiatives and disposal proceeds.

The approval by the RCF lenders of the revised investment policy included capping the facility at the current level, requiring disposal proceeds to be used to permanently reduce the facility, and other lender conditions. Disposal proceeds under the wind-down are therefore expected to be applied first towards RCF debt repayment and maintaining appropriate liquidity, before cash is returned to shareholders. The Board continues to monitor liquidity closely. Ongoing covenant compliance under the RCF will require a particular focus by the Investment Manager and Board during the wind-down.

Hedging Strategy

As part of its wind-down strategy, the Company will be materially reducing its foreign exchange hedging programme. The Board believes that, under the current circumstances, the cost and liquidity implications of maintaining the programme outweigh the benefits of continued long-term NAV protection that has been achieved under the programme to date, and that available resources are better directed towards supporting the orderly realisation of the portfolio and return of cash to shareholders.

-ENDS-

For Further Information

SDCL Efficiency Income Trust Tony Roper (Chair)	Via Cardew Group
Sustainable Development Capital LLP Eugene Kinghorn Purvi Sapre Ben Griffiths Tamsin Jordan	T: [phone]
Jefferies International Limited (Financial Adviser and Corporate Broker) Paul Bundred Gaudi Le Roux Harry Randall-Knowles	T: [phone]
Cardew Group Ed Orlebar Louis O’Brien	T: [phone] M: [phone] E: [e-mail]

LEI: 213800ZPSC7XUVD3NL94

About SEIT

SDCL Efficiency Income Trust plc is a constituent of the FTSE 250 index and is currently pursuing a realisation of its portfolio in accordance with the revised investment policy approved by shareholders in July 2026. The Company’s updated objective is to realise all assets in the Company’s portfolio in an orderly manner which seeks to achieve a balance between returning cash promptly to Shareholders and maximising value.  

SEIT was the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in North America, the UK and Europe and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of commercial and industrial solar and storage projects in the United States, a regulated gas distribution network in Sweden, a portfolio of on-site energy recycling, cogeneration and process efficiency projects, servicing the largest steel blast furnace in the United States and a district energy system providing essential and efficient utility services on one of the largest business parks in the United States.

Past performance cannot be relied on as a guide to future performance.

Further information can be found on the Company's website at www.seitplc.com.

Investment Manager

SEIT's investment manager is Sustainable Development Capital LLP ("SDCL"), an investment firm established in 2007, with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia.

SDCL is headquartered in London and also operates worldwide from offices in New York, Dublin and Hong Kong. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.

Further information can be found at www.sdclgroup.com.

 

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