Interim Results - 6 months ended 30 September 2025
Summary by AI BETAClose X
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
8 December 2025
SDCL Efficiency Income Trust plc
("SEIT" or the "Company")
Announcement of Interim Results for the six-month period ended 30 September 2025
SDCL Efficiency Income Trust plc (LSE: SEIT) ("SEIT" or the "Company") today announces its financial results for the six-month period ended 30 September 2025.
There will be a virtual presentation for analysts and investors at 9.30am today. To register, please follow this link: SEIT 2026 Financial Year Interim Results | SparkLive | LSEG
The Company's full Interim Report and Financial Statements for the six-month period ended 30 September 2025 can be found on the Company's website: Share price & latest news | SEIT . This has also been submitted to the National Storage Mechanism and will be available shortly at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Highlights
· Net Asset Value ("NAV") per share of 87.6p as at 30 September 2025 (31 March 2025: 90.6p), reflecting more cautious valuation assumptions amid market volatility.
· Portfolio valuation of £1,172 million as at 30 September 2025 (31 March 2025: £1,117 million).
· Investment cash inflow from the portfolio of £58 million during the period (September 2024: £48 million), including capital receipts from Onyx.
· Profit before tax of £2 million for the six months ended 30 September 2025 (September 2024: £35.1 million).
· Aggregate dividends of 3.18p per share declared for the six months ended 30 September 2025, in line with guidance.
· Dividend cash cover of 1.2x for the six months ended 30 September 2025 (September 2024: 1.1x).
· Target dividend guidance remains 6.36p per share for the year to March 2026.
· Gearing at 71.9% of NAV as at 30 September 2025, above the Investment Policy limit; disposals underway to reduce leverage.
· Disposal progress includes sale of ON Energy at an 18.75% premium to NAV and exclusivity agreed on a further disposal expected around year-end.
· Portfolio EBITDA of c.£44 million for the six months to June 2025 (calendar year 2024: £86 million).
· Weighted Average Levered Discount Rate of 9.7%, marginally up from March 2025.
Tony Roper, Chair of SEIT, said:
"The portfolio is broadly performing in line with expectations, yet we have seen little improvement in sentiment towards SEIT's segment of the investment trust market in the past six months. We are acutely aware of the need to dispose of assets in order to reduce gearing levels, notwithstanding the challenging environment for asset sales. Our priority remains to make disposals but also to take action to find an alternative to the status quo, whilst ensuring that we deliver value for all shareholders."
Jonathan Maxwell, CEO of SDCL, the Investment Manager said:
"SEIT's portfolio continues to perform and its commercial, industrial and district energy assets are now well positioned for growth. While a cautious approach has been taken to valuation at this stage, we have signposted several examples of substantial opportunities for gain.
"Our priority in the short term is to achieve well executed disposals, working closely with the Board, to reduce gearing. However, given the discount to net asset value at which SEIT's shares trade in the market and the sectoral constraints on accessing capital, we are also actively developing proposals to affect structural change to unlock value for shareholders".
For Further Information
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Sustainable Development Capital LLP Jonathan Maxwell Eugene Kinghorn Tamsin Jordan Ben Griffiths
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T: +44 (0) 20 7287 7700
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Jefferies International Limited Tom Yeadon Gaudi Le Roux
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T: +44 (0) 20 7029 8000
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Cardew Group Ed Orlebar Henry Crane |
T: +44 (0) 20 7930 0777 M: +44 (0) 7738 724 630 |
LEI: 213800ZPSC7XUVD3NL94
About SEIT
SDCL Efficiency Income Trust plc is a constituent of the FTSE 250 index. It 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.
The Company aims to deliver shareholders value through its investment in a diversified portfolio of energy efficiency projects which are driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy.
The Company is targeting an attractive total return for shareholders with a stable dividend income, capital preservation and the opportunity for capital growth. The Company is targeting a dividend of 6.36p per share in respect of the financial year to 31 March 2026. SEIT's last published NAV was 90.6p per share as at 31 March 2025.
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 Hong Kong and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.
Further information can be found on at www.sdclgroup.com.
Highlights
of the six months to 30 September 2025
Investing in energy efficiency
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87.6p Net asset value ("NAV") per share APM
(30 September 2024: 90.6p; 31 March 2025: 90.6p) |
£58m Investment cash inflow from the portfolio2 on a portfolio basis APM
(September 2024: £48m) |
3.2p Aggregate interim dividends APM per share declared for the six months ended 30 September 2025, in line with target (September 2024: 3.16p) |
1.2x Dividend cash cover APM for the six months ended 30 September 2025
(September 2024: 1.1x) |
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6.36p Target aggregate dividend1 guidance per share for the year to 31 March 2026
(31 March 2025: 6.31p) |
£2m Profit before tax
(30 September 2024: £35m) |
£1,172m Portfolio Valuation APM
(31 March 2025: £1,197m; 30 September 2024: £1,102m) |
£6m Gross disposal proceeds
From the disposal of ON Energy |
APM Alternative Performance Measure: See Glossary of Financial Alternative Performance Measures for further details on APMs used throughout this report.
1. The target dividend stated above and throughout this report by the Company is based on a projection by the Manager and should not be treated as a profit forecast for the Company.
2. Excludes disposal proceeds and refinancing receipts but includes return of capital from certain projects including Onyx.
Why Invest?
Overview
Enhancing value for the long term...
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Energy Efficiency |
Attractive Investment Returns Strategy |
Network Access and Expertise |
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Energy efficiency means using less energy to achieve the same outcome; it saves money and reduces carbon.
Energy efficiency is a key element of the energy transition, delivering critical emissions reductions and improvements in energy system resilience. Accelerating energy efficiency improvements could deliver more than 30% of all CO2 emission reductions between now and 2030 in a pathway aligned with reaching net zero emissions by 20501.
SEIT focuses on Efficient and Decentralised Generation of Energy ("EDGE") projects. This focus is a source of competitive strength, which remains unique among UK investment companies and even across other major listed equity capital markets. |
Shareholder returns are driven by both dividends and capital growth.
The portfolio is diversified and mostly operational (79%)2, the majority with creditworthy counterparties. Operational performance underpins long-term, predominantly contracted cash flows to cover SEIT's dividend.
SEIT has always sought to invest into projects that additionally offer the potential to exceed target total returns3. This potential is realised in three ways:
· Cost reductions and efficiency improvements · Investment in higher-return projects or new revenue streams · Unlocking platform value through restructuring or ensuring portfolio companies have the optimum management teams
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SEIT is the first UK-listed company of its kind to invest exclusively in the energy efficiency sector.
SDCL, the Investment Manager, is an award-winning, global team of experienced specialists, dedicated to energy efficiency.
Through its investment activity and asset management, it has built a significant reputation and a deep network of industry experts, managers, subcontractors and counterparties.
The Investment Manager, portfolio company management teams and counterparties all play a role in delivering value to SEIT's shareholders. |
1. IEA, Energy Efficiency Tracking
2. Of gross asset value.
3. Investments seeking higher returns typically carry higher risks, including development and construction risks.
Capital at Risk. The value of investments and the income from them can fall as well as rise and you may not get back the amount invested.
Chair's Statement
"Our priority remains delivering long-term value to our shareholders, through disciplined execution in challenging times."
Tony Roper
Chair
In this statement, I focus on the performance of the portfolio, the valuation, the levels of debt and the Board's focus on disposals.
The performance of the portfolio as a whole was tracking broadly in line with expectations for the six months from January to June 2025, and the Investment Manager's report discusses this in more detail. Aggregate portfolio adjusted EBITDA was £44 million for the six months to June 2025 (compared to £86 million for the full 2024 calendar year).
The Company's valuation of the portfolio was £1,172 million as at 30 September 2025, resulting in a NAV per share of 87.6 pence, a reduction of 3.0 pence from the NAV at 31 March 2025. As a result, the profit for the period before tax is £1.7 million (30 September 2024: £35.1 million). In light of volatile general market conditions, the Board and Investment Manager have taken a more cautious view of certain valuation drivers and underlying assumptions. Conditions impacted the portfolio unevenly, with certain assets more exposed to policy and regulatory changes, particularly in the U.S., and to short-term macroeconomic factors such as energy and financial market volatility, while others have been largely protected or even benefitted. Valuations were also influenced by revised timelines for assets under construction and other asset management initiatives.
The Investment Policy stipulates that aggregate consolidated borrowing shall not exceed 65% of NAV, calculated at the time of borrowing. The Company has now exceeded this limit, with a ratio of 71.9% at 30 September 2025. This is equivalent to approximately 41.8% LTV of enterprise value including NAV and total gearing. This is obviously disappointing.
There are two components to exceeding the gearing limit. The first component is passive, consequent on the NAV reduction, and is a minor contribution. The second, and more important, is the basis of the calculation of gearing which, together with the Manager, the Board has recently been examining, and specifically how to treat the tax equity bridge loan ("TEBL") facility at Onyx, which represented around 6% of NAV as at 30 September 2025, following its drawing in the period.
The Board has now agreed with the Manager that this TEBL financing is debt for the purpose of calculating the Gearing Ratio. Further detail on this facility is provided in the Manager's report.
Given the current position, the Board has issued a clear instruction to the Manager that no further borrowings are to be incurred until gearing is reduced below 65% of NAV. The Manager is in the process of making a disposal that would reduce gearing below this limit.
The Board and the Investment Manager are committed to achieving disposals to raise liquidity, to reduce gearing and in due course, to facilitate a return of capital to shareholders. However, there are also important implications for the portfolio. As debt has become the primary source of capital for growth by those investments requiring capital, there is a risk that until such sources of capital - or any alternatives that are not borrowings - are available again, this could lead to further impacts on valuation where successful future growth is assumed in current valuations. This is clearly of concern to the Board.
Whilst the Company remains fully compliant with its banking covenants, the Board's focus remains on reducing the level of the Company's RCF through successful disposals in the short term.
Corporate Activity
The M&A market for specialist infrastructure investments remains challenging. Disposals have taken longer than hoped, and whilst significant focus has been given to disposal processes, it is frustrating that they have not yet come to fruition. As I write we have a number of processes either in train or planned, with a party under exclusivity and conducting confirmatory due diligence on the most advanced proposed disposal. The outcome of this process should be known in the coming weeks. The Investment Manager is working on other disposal options and re-evaluating some options considered earlier in the year. Recognising shareholders' wishes to see successful disposals, the Board has been actively involved in overseeing the Investment Manager's processes relating to making disposals.
As a result of previous statements, the Board, as well as the Investment Manager, have had some interest from private buyers for elements of the portfolio. While not leading to a transaction, the interest helped inform us and has highlighted the complexity of valuing a portfolio of this nature. Whilst we hope the Investment Manager's current disposal initiatives will be successful, the Board continues to explore options.
Dividend
On 8 December 2025 the Company announced its second interim dividend for the year ending 31 March 2026 of 1.59 pence per share, in line with previous guidance.
Cash cover was 1.2 times, although the Board has noted that a material part of the cash cover during this period came from cashflows from Onyx which are classified as capital. However, the Company maintains sufficient distributable reserves to pay its dividends.
The Investment Manager's forward projections show, based on a similar mix of cashflows from the portfolio, an ability to cash cover projected future interim dividends. However, it should be noted that future cover could be impacted by disposals.
Governance
At the Company's AGM in September, all resolutions were passed, and we welcomed Rosemary Boot to the Board as part of our succession planning. Rosemary brings relevant experience and expertise to strengthen the Board's strategic deliberations and help ensure effective delivery by the Investment Manager.
Outlook and Next Steps
In the Company's annual accounts published in June this year, I wrote about how it was hard to see how the alternative asset segment of the UK investment trust market can solve the current market issues without either a material improvement in sentiment, consolidation or investments being sold, and capital returned to shareholders. The last six months have reinforced these views and we have seen little, if any, improvement in sentiment.
The Board recognises that newer shareholders to the register have bought in at a share price offering an attractive yield and the potential for share price appreciation. The Board considers the share register as a whole and clearly longer-standing shareholders who have supported the Company's development over the years have experienced poor shareholder total returns due to the material share price discount. Our ambition remains to find solutions to reduce the discount to NAV.
The Investment Manager has been actively considering options for the last year, to find an alternative solution to the status quo, that delivers value to all shareholders. The Board is working with them, and we will engage with shareholders when we have reached an acceptable solution for discussion.
The Company has a continuation vote at its AGM in 2026 (as set out in the Company's Articles), and without some material success in making disposals, reducing our drawing under our RCF and with the potential to return capital to shareholders, the Board is unlikely to recommend continuing in the current form. In the current market environment, it takes time to find the right investors to acquire our investments at acceptable prices, and time is limited. The Board will not wait until the AGM should we be in a position to present a solution with the Investment Manager beforehand or if we feel, acting independently, that alternatives serve the best interests of shareholders.
Whilst the portfolio is generally performing as expected, the Company must reduce gearing, cannot fund growth without more capital and we need to improve the share rating. A successful sizeable disposal or disposals remain key to achieving these objectives and this is the main focus of the Board and the Investment Manager. Once this is achieved, we will consult shareholders on next steps.
Tony Roper
Chair
Investment Manager: Markets and Outlook
Resilience in the Face of a Changing Energy Landscape
The global energy system is undergoing a profound transformation, shaped by rising demand, geopolitical volatility, and the accelerating need for climate action. Electricity demand is growing faster than overall energy supply, with renewables expanding rapidly but fossil fuels still dominating generation. Regional strategies vary and uncertainty around clean energy policy has increased, for example with a reversal of a number of federal climate policies in the United States.
Amid these dynamics, energy security and resilience have become central themes, with decentralised energy systems increasingly viewed as critical enablers of national preparedness, independence and resilience. Decentralised energy systems, such as rooftop solar, district energy networks, and on-site generation, offer faster deployment and reduced reliance on centralised infrastructure. These solutions are normally commercially viable and resilient to policy shifts, usually deployed based on direct customer demand rather than relying on regulatory incentives. Regulatory frameworks do nonetheless feature as a valuation driver for certain assets.
Demand Driven by Electrification and a Rising Need for Reliable Energy
Global electricity demand is rising sharply, driven by industrial electrification, rising demand for AI, digitalisation, and the transition away from fossil fuels. In the US, NERC stated that electricity demand3 was expected to increase 25% by 2030 and 78% by 2050 from 2023 levels in December 2024. They have since warned of even faster increases driven by cloud computing, AI, industrial resurgence and electrification. In Europe, demand is expected to increase, supported by policy-driven electrification of transport, heating and manufacturing as well as AI and data centres.
Global industrial electrification (replacing fossil fuel-dependent industrial processes with electrically powered alternatives) is a big part of this shift. The global market is forecast to grow at 8% CAGR, reaching $64.5 billion by 20321.
AI and data centres are contributing to this surge. In Europe, data centre electricity consumption is expected to more than double by 2030, rising from 62TWh to over 150TWh, and accounting for 5% of total electricity use2. Grid congestion and long interconnection timelines are slowing large-scale deployment.
SEIT's portfolio is well-positioned to benefit from these trends:
· Onyx provides decentralised solar and storage solutions to commercial and industrial customers with rising energy needs.
· RED-Rochester's infrastructure is designed to support high-load power users by providing reliable, decentralised energy.
· Primary Energy is aligned with the push for industrial efficiency and is a key enabler of energy efficiency in one of the most energy-intensive sectors, the steel industry.
· Oliva serves Iberian industrial clients with decentralised energy services.
· Driva's biogas grid and energy-as-a-service solutions support customers with site specific, sustainable energy.
Electrification and decentralisation trends support the long-term value of these assets and highlight opportunities to streamline the portfolio around scalable, efficient energy delivery.
1. North American Energy Reliability Corporation, Electricity Supply & Demand data, December 2024.
2. Coherent Market Insights, Global Industrial Electrification Market Size and Forecast - 2025-2032.
3. McKinsey & Company, The role of power in unlocking the European AI revolution.
Policy Volatility and Market Opportunity
The global policy landscape for clean energy continues to evolve, with recent developments in the United States, Europe, and the UK. While volatility in incentives and regulation presents challenges, it also reinforces the importance of decentralised and efficiency-led energy solutions.
In the United States, the One Big Beautiful Bill Act ("OBBBA"), signed into law on 4 July 2025, marked a significant rollback of the Inflation Reduction Act's clean energy incentives. The accelerated phase-out of the Investment Tax Credit ("ITC") and Production Tax Credit ("PTC") requires solar and wind projects to begin construction by July 2026 or be operational by the end of 2027 to qualify. The Act also introduced Foreign Entity of Concern ("FEOC") restrictions, limiting access to tax credits for projects with supply chain or ownership links to designated foreign entities, notably China. Residential clean energy credits and clean vehicle incentives were also terminated. Despite these changes, decentralised solar should remain cost-competitive with grid power in many regions, and projects can be financed based on direct customer demand rather than policy incentives.
In contrast to the United States, while watering down net Zero targets, the European Union has reinforced its commitment to industrial decarbonisation and energy system resilience. The Clean Industrial Deal and 2025 Energy Union Strategy aim to decarbonise energy-intensive sectors and expand clean tech manufacturing. The UK has also taken decisive steps to accelerate its energy transition. The launch of Great British Energy ("GBE") in 2025, aims to increase domestic clean energy production and public ownership of energy assets. Plus, the 2025 Spending Review introduced new funding for carbon capture and energy efficiency programmes.
Despite the political backdrop, decentralised energy solutions remain commercially viable, resilient to regulatory uncertainty and, in many ways, more important than ever. Even without subsidies, decentralised solar remains cost-competitive with grid power in many regions, and projects are financed based on direct customer demand rather than policy incentives.
Strategic Alignment
SEIT's investment strategy has consistently focused on energy efficiency and decentralised generation. The Company continues to actively evaluate how best to align its portfolio with the sectors and solutions that are resilient, scalable, and impactful. Opportunities to sharpen strategic focus include those that deliver reliable and efficient energy directly to high-demand users such as commercial and industrial customers, district energy systems and infrastructure-critical sectors.
Disposals will be guided by this strategic lens, with a view to streamlining the portfolio, enhancing financial resilience and aligning with the Company's core purpose. The Company remains committed to its objective of investing in solutions that support the transition to a more sustainable and decentralised energy system, while seeking compelling total returns for shareholders.
A Buyers' Market
As set out in the Annual Report and Accounts, disposals are required despite challenging market timing, when investment trusts are often seen as forced sellers, depressing the valuations achievable in the private markets. These markets can be categorised as favouring buyers.
Ongoing market dynamics have created a segmented environment, with mid-market infrastructure and energy transition assets offering particularly attractive entry points for buyers. High levels of infrastructure equity dry powder, coupled with pent-up supply from oil & gas majors disposing non-core assets, and extended holding periods driven by limited exit opportunities, have contributed to falling valuations and smaller deal sizes. Boston Consulting Group notes that average deal sizes in infrastructure are 40% below their 2021 peak, with volumes down by 8%, while Roland Berger confirms a 14% drop in 2024 continuing into 20251. Although pockets of higher demand remain, such as for digital infrastructure and for high quality, yielding assets, strategic buyers dominate transactions, setting deal terms and focusing on only the highest-quality assets.
Against this backdrop, many institutional and financial investors are under pressure to sell to retire financing or deliver distributions, creating excess supply and increasing demand for capital. This dynamic is enabling buyers to secure assets below intrinsic value, a clear buyers' market.
The Investment Manager has had some successes in seeking to dispose of assets for SEIT, despite contending with this dynamic in the private capital markets. Success has been achieved where strategic buyers have been identified such that the relevant assets being disposed of, match the specific objectives of buyers. Examples include the disposal of UU Solar to UK Power Network Services in 2024, and the disposal of SEIT's interest in ON Energy in 2025. Both disposals were achieved at or above NAV. Another encouraging example, referenced by the Chair, is represented by the exclusivity agreement the Company has entered into (on the basis of an acceptable price relative to the last holding value).
Despite recent successes, pricing in the private capital market remains inconsistent with offers ranging from a premium to a discount on the same asset within days. Careful timing and positioning to avoid rapid disposals that risk valuations are the key to further success.
1. BCG, Private Equity Infrastructure Investment Poised for Renewed Growth Amid Evolving Market Dynamics & Roland Berger, Infrastructure investment outlook 2025
Investment Manager: Consolidation for Growth
Financial performance of the portfolio has been maintained with active management, with total aggregate portfolio adjusted EBITDAAPM for the six months from January to June at £44 million (c.£86 million for calendar year 2024, the first time this metric was reported).
However, growth has and will continue to require capital. So long as the Company is unable to issue shares at a discount to NAV and is restricted from borrowing under its gearing limits, it cannot invest additional capital to continue to support this growth. In some cases, this could impact ongoing valuations. For example, there is an assumption in the Onyx valuation of some, although limited, ongoing funding. In this environment, it has become necessary to seek liquidity from elsewhere within the portfolio to reduce debt and support the value of the growth platforms. Benefitting from a broad portfolio of differing investments with varied revenue and cost characteristics, disposal processes can target the assets best able to deliver value for shareholders. The Investment Manager believes that in the current market environment, the best value can be achieved from the stable, yielding areas of the portfolio where potential EBITDA growth is more limited.
The Investment Manager has also been developing plans to put forward a restructuring proposal to better position the Company to derive value and secure growth from the large and profitable business assets that it has developed, acquired and grown over recent years, as well as the Company's unique position in the market. The objective is to deliver good returns, as well as improvements in marketability and liquidity, for shareholders. As the Chair has noted, shareholders will be consulted in due course.
Focus on Disposals to Streamline the Portfolio, Reduce Debt and Return Capital
Some progress has been made in executing the disposal strategy, despite a challenging macroeconomic and transaction environment. During the period, this included the sale of ON Energy for c.£6 million, which completed at an 18.75% premium to its last reported NAV. While small, the premium achieved demonstrates the quality of the underlying asset.
Other processes have progressed, with a further disposal targeted for signing on or around calendar year end. As noted by the Chair, the Company has entered into exclusivity with an institutional investor for the sale of a selection of largely stable assets and the potential buyer is carrying out confirmatory due diligence.
The commercial integrity of the investments within the portfolio is underscored by the fact that non-binding offers have been received for multiple assets and investments. Offers have however been made in an environment where private capital market participants have been offering prices closer to investment companies' share prices than NAV. Investment trust sellers are seen by buyers to be motivated and weak, and their discount to net asset value is seen by some as a benchmark for price of the underlying assets.
Most of these offers were considered unacceptable by the Investment Manager, as not representing good value for shareholders. Those processes that are being actively progressed are also factoring in the broader considerations of cash generation, total return potential and strategic focus.
The Investment Manager continues to prioritise disposals, focused on value preservation and disciplined execution, as well as on the implications for earnings, cash flow and dividend cover of any asset disposal. While highly sensitive to the time value of money and meeting the capital needs of the Company and its shareholders, priority is being placed on mitigating downward pressure on value and avoiding harming prospects for income and total return. Proceeds from disposals are expected to be used to reduce the Company's revolving credit facility ("RCF") and support return of capital in due course.
Balance Sheet Management
On 30 September 2025, total gearing was 42% of enterprise value, or 72% of NAV. Structural gearing was 28% of enterprise value and 47% of NAV. The enterprise value is calculated as the NAV plus total gearing, unlike in previous reports where it was shown as total portfolio value plus total gearing. For comparative purposes, had it previously been shown this way, at 31 March 2025, the total gearing would have been 37% enterprise value (compared to 34% reported) and structural gearing would have been 24% (compared to 22% reported). This change has been made as part of our ongoing commitment to improving disclosures.
The Company has an aggregate consolidated borrowing limit of 65% of NAV set out in its Investment Policy. The Company's total gearing is assessed on a 'look-through' basis to include gearing at Company level and gearing at project level. In the US portfolio, Onyx's construction is partially financed through Tax Equity Bridge Loans ("TEBL"s) provided through the revised Onyx financing facility secured in June 2025. These TEBLs bridge the timing gap between construction costs and the receipt of tax equity capital investment from minority investors that is pre-agreed and committed at construction commencement. These loans are repaid via contractually committed equity injections from institutional partners and do not represent a long-term claim on the Company's operational cash flows to be generated from Onyx. However the Investment Manager and the Board have now agreed the TEBLs should be included in the calculation of the Company's Gearing Ratio.
The table on page 20 provides further detail on the Gearing Ratio.
Reduction of gearing, and especially the RCF, is of the utmost importance and the highest priority for the Investment Manager. As noted by the Chair, a clear instruction has been issued by the Board, which aligns with the intention of the Investment Manager to prioritise repaying gearing above almost all other uses of capital within the portfolio.
It is important to note that although the Company has reached this limit, it remains well within the covenants of all debt facilities. In addition, the restriction on the Company and portfolio companies from drawing any further debt until gearing is back below its limit is being actively managed by the Investment Manager.
The RCF balance of c.£233 million remains broadly in line with the position of March 2025 (c.£234 million) and is expected to reduce as disposals complete. While project level financing has been used to decrease RCF levels during the period, part of the continued investment into the portfolio has drawn on that capacity. Guided by the Capital Allocation Policy and capital availability, investment has been essential to support the growth and value of some of the companies within the portfolio.
Regardless of the environment in which SEIT's shares trade, the long-term health of the underlying investments is fundamental to the value of the Company. By way of example, during the Period, the Company invested c.£49 million into Onyx for its development pipeline, in addition to c.$48 million of debt drawn from their project-level financing. This combined investment funded 2025 year to date deployment of 52MW of projects achieving "notice to proceed" and 59MW of projects achieving "mechanical completion".
Since 31 March 2025, at the asset level, new financing arrangements have been secured to enhance liquidity and support growth, including a $260 million facility at Onyx to replace and increase a previous facility and a new £17.6 million committed facility at Zood, with an additional £40 million uncommitted. Once total gearing is back within its limit, further project-level financing will be considered and may reduce reliance on the RCF or, in time, provide additional headroom.
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over 55% |
c.£8m |
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Portfolio debt amortising |
Portfolio debt amortised during the period |
In total, SEIT has c.£450 million of portfolio-level, structural gearing, displaying generally low refinancing risk and low-interest rate risk. SEIT's structural gearing includes high levels of amortising debt, a high percentage of fixed interest rates and minimal levels of refinancing needed in the medium term. Over 55% of the portfolio debt is amortising out of project level cashflow, with c.£8 million of principal repaid in the six-month period ended 30 September 2025. The weighted average life remaining is 2.7 years and the weighted average interest rate was 5.7%. The amortising nature of the project-level gearing means that in the medium term, total gearing levels can be reduced substantially without the need for new sources of capital.
As previously reported, at the Holdco level the Company has extended and refinanced its £240 million RCF in March 2025 for an additional three years, with maturity now in March 2028, with options to extend for up to a further two years. The RCF remains a temporary funding source, with repayment expected from surplus portfolio distributions, refinancing proceeds from investment-level debt, and proceeds from disposals, which remain the primary focus of the Investment Manager and the Board.
A Stable Dividend During a Period of Transition
Cash flows from the portfolio have fully covered the first and second interim dividend payments 1.2 times. Investment cash inflowAPM consists of cash receipts by SEIT from underlying long-term contracts at project level which include both regular receipts of dividends and interest and capital receipts. Capital receipts came from Onyx in the period where the acceleration of investment returns to SEIT is due to the nature of the C&I solar projects' financing structure. Tax equity is received at mechanical completion and repays the construction funding. These capital receipts are included in the Investment cash inflow of £58 million during the Period. Disposal proceeds and project level refinancing receipts are not included.
The Company declared an interim dividend for the quarter on 8 December 2025. Shares will go ex-dividend on 18 December 2025, and the dividend will be paid on 28 January 2026. This revised payment schedule is primarily to better align with the expected timing of future cash flows from certain projects. The Investment Manager anticipates that it is likely this timing adjustment of one month will apply to interim dividends for the remainder of this financial year.
In the context of a strategic shift towards disposals and deleveraging, future cash cover could be impacted as noted in the Chair's Statement. Maintaining a sustainable dividend, aligned with the Company's capital priorities remains a focus for the Investment Manager.
Discount Rates and Risk Premiums
The macroeconomic backdrop remains complex, with persistent inflationary pressures, elevated interest rates, and geopolitical uncertainty continuing to affect both portfolio performance and investor sentiment. While these factors have contributed to volatility in the Company's share price, there has been no meaningful change to the discount rates used in the September 2025 valuation.
Trading Liquidity
The Investment Manager remains conscious of the need to support liquidity, given the market dislocation across the sector and large discounts to NAV. They have continued marketing the shares to investors to attract new buyers and retain long-term shareholders. On average, 0.4% of SEIT's share register was traded each day during the period, in line with its peer group, demonstrating comfortable liquidity. There has been continued significant interest from retail investors, whose presence on the share register is very welcome.
Portfolio Performance
SEIT's investment objective is to deliver an attractive total return for investors, comprising stable dividend income, capital preservation and the potential for capital growth. SEIT's current portfolio generates predictable cash flows that support SEIT's dividend distributions. The following pages highlight the operational performance and active management that underpin these distributions.
During the period, the portfolio delivered:
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c.£44m |
c.£58m |
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Aggregate portfolio adjusted EBITDA1 |
Investment cash inflow APM 2 |
With its current portfolio construction, SEIT continues to deliver a steady stream of cash returns, as it has since IPO. This has so far enabled the Company to fully cover a progressive dividend paid to shareholders, as demonstrated in the chart below.
Investment Cash Inflows APM (GBP Millions)2
Investing for Total Return
As in previous reporting periods, the Investment Manager remains committed to investing only into the organic growth of the portfolio, aligned with the Company's Capital Allocation Policy and within investment policy gearing limits. During the period, the Company has only invested into opportunities that have met or exceeded the hurdle implied by the alternative of buying back shares at the time of investment. From a combination of capital recycling and debt, SEIT has invested a further £51 million during the Period, compared to more than £90 million for the equivalent prior period.
Upside opportunities remain, many of which would require further upfront investment, however some would not. Accretive projects during the period contributed a net uplift of c.£6 million. Other projects are well advanced with good prospects of adding further valuation uplift. As noted in previous reports, there is a potential for these opportunities to continue to add c.£150 million to the NAVAPM over the coming years, incremental to any associated capital invested, although there can be no guarantee that this would be realised. The team continues to prioritise these workstreams, noting current constraints, and expects them to continue to develop.
1. Based on the six-month period from 1 January 2025 to 30 June 2025 as the largest assets have fiscal year ends falling on 31 December, using unaudited numbers.
2. Excludes disposal proceeds and refinancing receipts but includes return of capital from certain projects including Onyx.
Operational Performance has Remained Stable
SEIT has several larger portfolio companies, which make up a significant portion of overall portfolio cash flows as well as providing established platforms to generate growth opportunities. The diversified nature of the portfolio continues to support consistent operational performance, revenue growth and dividend coverage, despite ongoing volatility. Exposure to multiple geographies and industries helps to manage structural challenges at individual assets which can be balanced by stronger performance elsewhere in the portfolio.
The projects below delivered a combined EBITDA of c.£32.5million, in line with like-for-like budgets of £33.0million for the period.
|
|
|
Project equity value at 30 September 2025 |
Project-level debt at 30 September 2025 |
|
Technical KPI H1 at 30 June 2025 |
EBITDA H1 (local currency, millions) at 30 June 2025 |
|
Oliva Spanish |
September 2025 |
c.€ 114m |
c.€0 |
June 2025 |
644,920MWh produced1 |
EUR 2.1 |
|
Cogeneration |
March 2025 |
c.€ 125m |
c.€0 |
June 2024 |
644,313MWh produced |
EUR 12.8 |
|
Primary Energy |
September 2025 |
c.$316m |
c.$147m |
June 2025 |
182MW Average net production |
USD 19.3 |
|
March 2025 |
c.$288m |
c.$155m |
June 2024 |
191MW Average net production |
USD 19.0 |
|
|
Driva (formerly Värtan |
September 2025 |
c.SEK 1,004m |
c.SEK 682m |
June 2025 |
88% green gas |
SEK 42.0 |
|
Gas) |
March 2025 |
c.SEK 1,054m |
c.SEK 682m |
June 2024 |
92% green gas |
SEK 29.0 |
|
Onyx Renewable Partners |
September 2025 |
c.$418m |
c $243m |
June 2025 |
85,475MWh produced |
USD 6.12 |
|
March 2025 |
c.$419m |
c.$165m |
June 2024 |
68,317MWh produced |
USD 5.32 |
|
|
RED-Rochester |
September 2025 |
c.$330.2m |
c.$104m |
June 2025 |
3.8mMMBtus delivered |
USD 12.3 |
|
March 2025 |
c.$299m |
c.$101m |
June 2024 |
3.4m MMBtus delivered |
USD 8.3 |
1. This a total of electrical and thermal energy.
2. Onyx EBITDAAPM is for the fully operational portfolios of assets (total of four) and does not include the portfolios still partly under construction (total of five).
Primary Energy continued to perform well across its projects. The acquisition of US Steel by Nippon Steel led to an improvement in the customer's credit rating, enhancing counterparty strength. The North Lake project was approved for increased certified capacity under the Ohio Renewable Portfolio Standard, generating additional revenue without requiring further capital investment. While accretive projects are progressing, cost inflation and tariff pressures are beginning to impact margins. The contract of one of the projects was successfully extended for a further five years (with a two-year option).
RED-Rochester delivered solid performance, supported by the successful completion of the cogeneration project, which has improved both efficiency and capacity. The first half of the calendar year benefited from colder-than-expected weather, driving higher energy loads. Business development efforts continue, with a focus on attracting new, high-load customers to the site as well as selling additional services to existing customers.
Li-Cycle, a customer at the business park, filed for Chapter 15 bankruptcy in May 2025. Following the bankruptcy process, Glencore successfully acquired selected Li-Cycle assets, including the Rochester Hub, with the deal closing in August 2025. RED‑Rochester is engaged with Glencore whilst also developing other opportunities to sell RED-Rochester's capacity.
Driva delivered good performance, driven by strong core business sales and the rollout of new energy-as-a-service contracts. Operational improvements included increased biogas injection and reduced leakage across the network. The Sodertorn capital project is progressing towards completion around the end of the calendar year, although cost overruns are being closely monitored.
Onyx experienced asset performance below budget, primarily due to site-specific issues such as snow accumulation and soiling losses. While partial recovery is expected, full‑year EBITDA is likely to fall slightly short. Deployment activity remains positive, reflecting continued commercial demand for decentralised energy solutions. The financing structure for Onyx assets has evolved, with a $260 million facility secured and further options being reviewed as a result of the evolving regulatory US environment and its impact on investment tax credits.
Oliva faced pressure from energy market volatility, which impacted financial performance. However, changes to the hedging methodology had a positive effect, helping to stabilise margins. Regulatory risks have been mitigated through proactive engagement, and strategic planning is underway to support future growth initiatives.
In aggregate, the remainder of the portfolio - continues to deliver in line with expectations. These assets remain under active review as part of the Company's broader strategic assessment.
Financial Review and Valuation Update
The Company received investment cash inflows during the six-month period to 30 September 2025 to support the dividends paid. Sensitive to the broader macro environment, valuations have experienced downward movement, mainly due to systemic market risk leading to longer term cautionary adjustments and to a lesser extent from specific asset related issues
Key Information as at 30 September 2025
Profit before tax of £2 million (Sep 2024: £35 million) is down as a result of Portfolio Valuation movements caused mainly by adverse movements related to macro assumptions for future deployment, as well as some actuals at certain projects in the six-month period. These are described further in this section. This directly impacted EPS causing it to be lower compared to the prior period.
|
£58m |
£2m |
|
Investment cash inflow APM |
Profit before tax |
|
(30 September 2024: £48m) |
(30 September 2024: £35m) |
|
£0.2p |
£1,172m |
|
EPS |
Portfolio value |
|
(30 September 2024: 3.2p) |
(30 September 2024: £1,102m) |
Ongoing Charges APM
The portfolio's ongoing charges ratioAPM, in accordance with AIC guidance, has remained in line with previous periods at 1.07% (March 2025: 1.16%). The ongoing charges percentage has been calculated on a portfolio basisAPM to take into consideration the expenses of the Company and Holdco.
|
|
September 2025 |
March 2025 |
|
Expenses - Management fees |
£8.1 million (annualised) |
£8.7 million |
|
Expenses - Other |
£2.2 million (annualised) |
£2.7 million |
|
Average NAV |
£967.0 million |
£983.0 million |
|
Ongoing charges % |
1.07% |
1.16% |
Cash Cover APM for Dividends Paid
After allowing for debt amortisation paid at project level, the cash inflow from investments (on a portfolio basisAPM ) was £58 million, (September 2024: £48 million). After allowing for fund-level costs of £15 million (September 2024: £12 million), this enabled the Company to cover its cash dividends paid in the year 1.2x on a Portfolio basis. (September 2024: 1.1x)
Dividend cash coverAPM six-month period to September 2025
|
Free cash flows at portfolio level before debt repayments1 £74m |
Investment cash inflow from the portfolio2 £58m |
Net cash inflow from portfolio £43m |
Dividends paid to shareholders £34m |
|||||
|
|
|
|
|
|||||
|
Debt repayments at project level £16m |
Fund expenses £15m |
Dividend cash cover APM 1.2x |
||||||
|
Interest |
£8m |
Finance costs |
£9m |
|
||||
|
Capital repayment |
£8m |
Management fee and other expenses |
£6m |
|
||||
1. After cash retained at project level for working capital requirements.
2. Excludes disposal proceeds and refinancing receipts but includes return of capital from certain projects including Onyx.
Analysis of Movement in NAV
NAV per shareAPM at 30 September 2025 is 87.6 pence (31 March 2025: 90.6 pence). Earnings per share for the six-month period were 0.2 pence (31 March 2025: 6.4 pence, 30 September 2024: 3.2 pence). Dividends paid during the period were 3.2 pence (31 March 2025: 6.3 pence, 30 September 2024: 3.1 pence).
|
Opening NAV 90.6p |
EPS 0.2p |
Dividends paid (3.2)p |
Closing NAV 87.6p |
|
Portfolio Valuation movements 2.4p |
Net FX movement (0.5)p |
Company expenses (1.7)p |
Dividends paid
|
|||
|
|
|
|
The Company paid a total of £34 million in dividends to shareholders in the six months. This included the last quarterly interim dividend for the year ended 31 March 2025 and the first quarterly interim dividend for the year ending 31 March 2026.
The Company is targeting a total dividend of 6.36 pence per share for the year ending 31 March 2026, as per previously announced guidance.
The Company intends to continue to pay interim dividends on a quarterly basis through four broadly equal instalments (in pence per share).
Further detail on dividend cash coverAPM can be found on page |
|||
|
Macro changes (inflation and tax) |
0.0 |
Hedging gains |
1.9 |
Management fees |
(0.6) |
|
|
Valuation - portfolio movements |
2.4 |
Portfolio Valuation losses |
(2.4) |
RCF interest |
(0.9) |
|
|
Portfolio Valuation movement |
2.4 |
NET FX movements |
(0.5) |
Other expenses |
(0.2) |
|
|
|
|
|
|
Company expenses |
(1.7) |
|
|
|
|
|
|
|
|
|
|
Portfolio Valuation movements The Portfolio Valuation movements during the Period are in aggregate reduced by c.3.5p. This is primarily the result of two distinct factors: · Actual results at Oliva and FES caused a reduction of c.1.5p · Expected future deployment at Onyx and FES has been revised down, causing a reduction of c.2.5p
For further details on these movements, see Valuation Movements section on |
FX movement The Company's hedging strategy is executed at the level of Holdco, so the Company itself is only indirectly exposed to foreign exchange movements. The objective of the Company's hedging strategy is to protect the value of both near-term income and capital elements of the portfolio from a material impact on NAVAPM arising from movements in foreign exchange rates, and the approach to achieving this objective remains unchanged from previous periods.
In line with the policy, the Investment Manager maintained hedging levels of between 75-90% of its non-GBP investment. The negative impact of foreign exchange movements on the Portfolio Valuation has been materially offset during the half year, which meant the negative impact to NAVAPM due to currency movements in the period was limited to £5 million, which is less than 1% of NAVAPM. |
Company expenses Company expenses are primarily comprised of finance and interest costs relating to the RCF (c.£9.6 million) and management fees (c.£4 million). RCF costs have increased when compared to the six months to September 2024. The Board and the Investment Manager are both committed to bringing down short-term borrowing as a matter of priority.
|
||||
Portfolio Basis NAV
|
Portfolio Valuation APM £1,172m |
Working capital £5m |
RCF £(233)m |
Cash £6m |
NAV APM £951m |
Valuation Approach
Portfolio valuations are carried out on a six-monthly basis at 31 March and 30 September each year. The methodology remains consistent with prior periods.
Valuation Movements
The Portfolio ValuationAPM as at 30 September 2025 is £1,172 million (31 March 2025: £1,197 million). Movements include investments made of £51 million1 (30 September 2025: £98 million) and cash receipts of £79 million (30 September 2025: £48 million), including £6 million of disposal and £15m of refinancing proceeds.
Valuation bridge - March 2025 to September 2025 (GBP millions)
|
i Changes in macroeconomic assumptions £1m Read more on page |
ii Changes in foreign exchange rates £(26)m Read more on page |
iii Portfolio movements £28m Read more on page |
1. Majority of investments made is through recycling return of capital back into Onyx to allow for investment in high returning investment opportunities.
i Changes in macroeconomic assumptions - impact of £1 million:
· Inflation assumptions:
· Minor adjustment to near-term inflation (next three years) based on latest inflation curves.
· Long-term inflation assumptions remain the same as applied to the March 2025 valuation.
· Tax rate assumptions:
· No changes to corporation tax rate assumptions during the period.
ii Changes in foreign exchange rates - impact of £(26) million (before hedging):
· Investment portfolio decreased £26 million during the six months from movements in foreign exchange rates, driven by the movement of GBP against the US dollar, euro, Singapore dollar and Swedish krona since 31 March 2025 or since new investments were made in the year.
· This reflects only the movement in underlying investment values, and does not account for the offsetting effect of foreign exchange hedging that SEEIT Holdco applies outside of the Portfolio ValuationAPM.
· SEEIT Holdco experienced an aggregate gain of £21 million due to foreign exchange hedging.
· Overall foreign exchange movements did not have a significant impact on NAVAPM during the six months, resulting in a net loss of c.£5 million from foreign exchange movement, staying within expected outcomes of the existing hedging strategy.
iii Portfolio movements - impact of £28 million:
· Portfolio weighted average discount rate ("WADR") of 9.7% levered
· (March 2025: 9.6%).
· The WADR is considered a reasonable proxy for the return that can be generated by the portfolio over time, all other factors remaining equal.
· The £28 million valuation uplift represents the balance of valuation movements in the period, excluding items (i) and (ii) above. This primarily reflects the net present value of cash flows unwinding over the period at the average portfolio discount rate, together with various valuation adjustments described below.
· The Portfolio ValuationAPM as at 30 September 2025, and the return achieved during the period, incorporates key estimates and management judgements of future cash flows expected from individual investments. Specific adjustments were also made to reflect events during the period that influenced actual outcomes for certain assets.
· The key factors that have had a material impact on the 30 September 2025 Portfolio ValuationAPM listed on the following page.
Weighted average discount rate at 30 September 2025
(compared to 31 March 2025 in brackets)
|
Levered/unlevered |
UK |
US |
Europe/Asia |
Combined |
|
Levered |
9.5% |
10.0% |
8.9% |
9.7% |
|
|
(9.1%) |
(9.9%) |
(8.8%) |
(9.6%) |
|
Unlevered |
9.3% |
8.7% |
7.8% |
8.6% |
|
|
(9.1%) |
(8.7%) |
(7.8%) |
(8.5%) |
Breakdown of discount rate (unlevered) at 30 September 2025 (compared to 31 March 2025 in brackets)
|
|
UK |
US |
Europe |
Combined |
|
Weighted average risk-free rate |
|
|
|
|
|
|
5.0% |
4.3% |
3.1% |
4.1% |
|
|
(5.0%) |
(4.4%) |
(3.2%) |
(4.2%) |
|
Risk premium |
|
|
|
|
|
|
4.3% |
4.4% |
4.8% |
4.5% |
|
|
(4.1%) |
(4.2%) |
(4.7%) |
(4.3%) |
|
Weighted average discount rate (unlevered) |
|
|
|
|
|
|
9.3% |
8.7% |
7.8% |
8.6% |
|
|
(9.1%) |
(8.7%) |
(7.8%) |
(8.5%) |
Additional information and sensitivities are disclosed in the critical estimates and judgements section of Note 2.
Oliva Spanish Cogeneration
Performance during the first half of the year was below expectations, primarily due to unfavourable power market dynamics and commodity price movements. In response, management has revised the hedging strategy, taking a more proactive approach by locking in positions earlier to reduce exposure to market volatility and liquidity constraints. Management remains confident in their ability to recover this underperformance over the medium term and has already seen improved performance in the second half of the year. This resulted in an adverse impact on the Portfolio ValuationAPM of £5.3 million, which is consistent with the estimated impact of this valuation assumption disclosed in Note 2 of the financial statements.
Onyx
Earlier in the year, uncertainty arising from tariff developments led to a temporary slowdown in the signing of new Power Purchase Agreements ("PPAs"). As a result, the Onyx team revised its 2025 PPA deployment targets downward to reflect these market conditions. This reduction in targeted deployment was adjusted down further by the manager for the September 2025 Portfolio Valuation over the medium and longer term to reflect a cautionary approach in light of systemic market risks and has resulted in a negative impact of approximately £23 million on the Portfolio ValuationAPM. The Manager will continue to work closely with Onyx with a view to returning to or exceeding previous expected deployment targets.
RED-Rochester
· In March 2025, a valuation reduction of approximately £17 million was recognised related to uncertainty surrounding the Li-Cycle facility. Li-Cycle's bankruptcy earlier in the year was followed by the subsequent acquisition by Glencore of the Li-Cycle assets. Electricity utilisation assumptions established in March 2025 remain unchanged. As a result, there has been no further adverse impact on the Portfolio ValuationAPM since that time.
· Management has received an updated estimate of the tax credits eligible for Cogen plant capital expenditure. With a high probability expected to crystalise in H1 2026 (calendar year), this has resulted in an uplift on the Portfolio ValuationAPM of c.£6 million.
Primary Energy
The Public Utilities Commission of Ohio ("PUCO") has issued a formal approval for North Lake to increase REC-eligible capacity from 15MW to 90MW in May 2025. The March 2025 valuation reflected a conditional approval at 80% probability. The 30 September 2025 valuation reflected the extra 20% to reflect the confirmation. This has resulted in a c.£5million uplift to Portfolio ValuationAPM.
FES
Future Energy Services (FES) operates over 1000 long term fully contracted lighting-as-a-service contracts in addition to developing and converting future pipeline of similar opportunities. Actual results in the Period were impacted on a one-off basis from the write off of several delinquent accounts. Furthermore, expected future deployment has been scaled back from previous assumptions. The combined impact on the Portfolio ValuationAPM in this Period was c. £8 million.
1. Significant other opportunities within the pipeline for which estimated quantification is ongoing, sit outside of the valuation and are therefore not included here
Consolidated Gearing APM Position
Structural gearing remains a key strategic focus for the Company. As of 30 September 2025, overall gearingAPM stood at £683 million, broadly unchanged from 31 March 2025 (£626 million).
A substantial portion of structural gearing amortises naturally through free cash flow generated by the underlying investments. While the absolute level of gearing in sterling terms has broadly remained the same, the percentage has increased due to the lower NAVAPM over the period.
|
|
% of GAV APM,1 |
Debt at 30 Sept 25 (GBP) |
Debt as a % of EV2 |
Debt as a % of NAV APM |
|
Primary Energy (USA) |
9.2% |
110m |
6.7% |
|
|
RED-Rochester (USA) |
6.5% |
77m |
4.7% |
|
|
Onyx1 (USA) |
15.2% |
181m |
11.1% |
|
|
Driva (formerly Värtan Gas) (Sweden) |
4.5% |
54m |
3.3% |
|
|
Capshare (Portugal) |
0.9% |
11m |
0.7% |
|
|
Zood (UK) |
1.5% |
18m |
1.1% |
|
|
Structural gearing |
|
450m |
27.6% |
47.4% |
|
Revolving Credit Facility |
|
233m |
14.2% |
24.5% |
|
Aggregate gearing |
|
683m |
41.8% |
71.9% |
Since 30 September 2025 overall gearingAPM levels have increased by c.£19 million at Onyx, gearing is now proforma c.74.9% of NAV.
1. EV defined as NAV plus total debt at project level.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company (and its underlying investments via Holdco) are largely unchanged from those described in the March 2025 Annual Report, although the likelihood of certain risks crystalising has moved since the Annual Report. The Manager continues to employ suitable mitigants to manage the principal risks and remains alert to the uncertainties created by current markets, geopolitical events and other macroeconomic issues. The Board and the Manager consider risks on a regular basis and conduct reviews to evaluate the risks and mitigants available to the Company, including assessment of potential impacts through targeted stress testing. Although some risks may be faced directly by the Company, most of the risks are faced indirectly through the project investments in the portfolio.
The Manager's risk assessments therefore review the impact at the underlying investment level and assess how they may influence the stated objective of the Company. These assessments are both quantitative and qualitative and may, for example, include financial performance risk, reputational risk, climate risk and market risk.
The key risk increases faced by the Company during the period are:
· The continuing discount to NAVAPM of its share price - The Investment Manager has set out its mitigating strategies in the Risk Management Framework section published in the March 2025 Annual Report.
· The Investment Manager has a focused programme to identify and execute asset disposals.
· Liquidity risk: Limited headroom in existing debt facilities could further constrain liquidity. The Investment Manager is progressing a targeted asset disposal programme and developing third-party funding options for portfolio investment to strengthen liquidity. The Company has committed to the market that it will sell an asset to improve liquidity and reduce its debt position.
· Investment funding: The Company is restricted from using debt as a source to fund future growth which could lead to further risk on the Portfolio ValuationAPM linked to further investment into the portfolio in the medium to long term.
Portfolio Diversification
The information presented below summarises the portfolio of the Company across different metrics, using the Company's gross asset valueAPM as at 30 September 2025 (and using 31 March 2025 for comparison).
Portfolio By...
Geography
as at September 2025 | March 2025
UK 7% | 8%
Europe 19% | 19%
US 72% | 70%
Asia Pacific 1% | 1%
Cash 1% | 2%
Portfolio company
as at September 2025 | March 2025
RED-Rochester 21% | 19%
Primary - Cokenergy 10% | 9%
Onyx - Nova II 8%
Driva - Core 7% | 7%
Primary - North Lake 6% | 5%
Onyx - Obsidian II 4% | 4%
Onyx - Nova I 4% | 9%
Onyx - Development Platform 3% | 5%
Capshare 3% | 3%
Zood - Operational 3% | 4%
Primary - Portside 3%
Remainder of portfolio 30% | 30%
Cash 1% | 2%
Technology
as at September 2025 | March 2025
Solar & storage 26% | 27%
District Energy 21% | 19%
CHP (Waste gases/other) 15% | 14%
CHP (Natural Gas) 8% | 8%
Gas distribution networks 7% | 7%
Biomass 6% | 5%
EV charging 4% | 5%
Industrial process efficiency solutions 4% | 4%
Lighting 3% | 4%
Bundled energy efficiency 2% | 2%
Other technologies 3% | 3%
Cash 1% | 2%
Investment stage
as at September 2025 | March 2025
Operating 79% | 77%
Construction1 15% | 15%
Development 5% | 6%
Cash 1% | 2%
1. Construction stage represents investments where construction work has commenced or there's a high degree of confidence in it commencing.
Environmental, Social and Governance ("Esg") Summary
Incorporation of SEIT's Sustainability Framework into the ESG Management Process
The Manager has worked closely with the SEIT Board's ESG Committee to establish the Company's ESG priorities based on the UN Sustainable Development Goals ("UN SDGs"). These priorities were used to establish the five principles of the SEIT Sustainability Framework (the "Framework"). The Framework is used as a guide for the Company's ESG Management Process, which refers to the integration of ESG priorities into the investment due diligence, asset management and reporting processes.
SEIT Sustainability Framework
Investment strategy
Invest in energy efficiency solutions that reduce emissions, reduce waste and improve reliability.
ESG management
Manage general ESG factors that impact the Company's portfolio companies and their operations.
Principle 1
Champion Energy Efficiency
Principle 2
Deliver Net-Zero Energy1
Principle 3
Promote Sustainable Supply Chains
Principle 4
Support Our Communities
Principle 5
Match Best Practice2
As set out in SEIT's mandatory and voluntary commitments
SEIT ESG Management Process
Investment due diligence
Go/No-go review
Initial due diligence
Detailed due diligence
ESG findings incorporated into IC papers
Asset management
Environmental performance survey
Annual ESG survey
Ongoing engagement
Reporting
Results reporting
Disclosures
Marketing & investor materials
Investor DDQs
1,000,791 tCO2e
Scope 4 emissions3,4
avoiding the equivalent amount of carbon generated by 901,621 average cars annually7
364,495 MWh
Energy saved4,5
reducing the equivalent amount of average energy demanded by 25,593 houses in the calendar year 20246
1. SEIT finances energy efficiency and decentralised low‑carbon projects aimed at reducing emissions relative to credible baselines; the portfolio is not yet net‑zero and includes exposure to gas‑fired assets.
2. SDCL is a signatory to both GFANZ and UN PRI. SEIT voluntarily aligns with TCFD and follows mandatory product-level disclosures under SFDR.
3. Scope 4 emissions refer to the reduction in GHG emissions achieved by a project compared to a relevant counterfactual, i.e. how the customer would receive the energy services in the absence of said project.
4. Based on an analysis of 99% of the portfolio by value as at 31 March 2025.
5. Energy savings refer to the electrical and thermal energy not consumed at the point of use due to a SEIT investment.
6. Calculated by comparing the energy savings of the portfolio by the average annual energy usage of a house in the UK based on Ofgem's 2023 statistic.
7. Calculated by comparing the carbon savings of the portfolio with the average annual emissions of a car in the UK. The average emissions of a UK car is based on Statistica average CO2 emissions for new cars and the average number of km driven by those cars.
Statement of Directors' Responsibilities
The Directors confirm that these condensed interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
· material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.
The maintenance and integrity of the Company's website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that might have occurred to the interim financial statements since they were initially presented on the website.
The Responsibility Statement has been approved on 5 December 2025 on behalf of the Board by:
Tony Roper
Chair
Condensed Statement of Comprehensive Income
For the six-month period ended 30 September 2025
|
|
|
Six months |
Six months |
|
|
|
ended |
ended |
|
|
|
30 September |
30 September |
|
|
|
2025 |
2024 |
|
|
|
(unaudited) |
(unaudited) |
|
|
Note |
£'millions |
£'millions |
|
Investment income |
4 |
7.3 |
40.3 |
|
Total operating income |
|
7.3 |
40.3 |
|
Fund expenses |
5 |
(5.6) |
(5.2) |
|
Profit for the period before tax |
|
1.7 |
35.1 |
|
Tax on profit on ordinary activities |
6 |
- |
- |
|
Total comprehensive income for the period after tax |
|
1.7 |
35.1 |
|
Attributable to: |
|
|
|
|
Equity holders of the Company |
|
1.7 |
35.1 |
|
Earnings per ordinary share (basic and diluted) - pence |
7 |
0.2 |
3.2 |
The accompanying Notes are an integral part of these condensed interim financial statements.
All results are from continuing operations in the period.
Condensed Statement of Financial Position
As at 30 September 2025
|
|
|
30 September |
31 March |
|
|
|
2025 |
2025 |
|
|
|
(unaudited) |
(audited) |
|
|
Note |
£'millions |
£'millions |
|
Non-current assets |
|
|
|
|
Investment at fair value through profit or loss |
10 |
952.1 |
984.2 |
|
|
|
952.1 |
984.2 |
|
Current assets |
|
|
|
|
Trade and other receivables |
|
0.1 |
0.3 |
|
Cash and cash equivalents |
|
1.1 |
0.9 |
|
|
|
1.2 |
1.2 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
(2.4) |
(1.8) |
|
Net current liabilities |
|
(1.2) |
(0.6) |
|
Net assets |
|
950.9 |
983.6 |
|
Capital and reserves |
|
|
|
|
Share capital |
11 |
11.1 |
11.1 |
|
Share premium |
11 |
756.8 |
756.8 |
|
Other distributable reserves |
11 |
236.5 |
270.9 |
|
Accumulated losses |
|
(53.5) |
(55.2) |
|
Total equity |
|
950.9 |
983.6 |
|
Net assets per shareAPM (pence) |
9 |
87.6 |
90.6 |
The accompanying Notes are an integral part of these condensed interim financial statements.
The condensed interim financial statements for the period ended 30 September 2025 of SDCL Efficiency Income Trust plc were approved and authorised for issue by the Board of Directors on 5 December 2025 and signed on its behalf by:
Sarika Patel Tony Roper
Director Director
Company registered number: 11620959
Condensed Statement of Changes in Shareholders' Equity
For the six-month period ended 30 September 2025
For the period ended 30 September 2025
|
|
|
|
|
Other |
|
|
|
|
|
|
|
distributable |
Accumulated |
|
|
|
|
Share capital |
Share premium |
reserves |
losses |
Total |
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
Note |
£'millions |
£'millions |
£'millions |
£'millions |
£'millions |
|
Balance at 1 April 2025 |
|
11.1 |
756.8 |
270.9 |
(55.2) |
983.6 |
|
Dividends paid |
8 |
- |
- |
(34.4) |
- |
(34.4) |
|
Total comprehensive income for the period |
|
- |
- |
- |
1.7 |
1.7 |
|
Balance at 30 September 2025 |
|
11.1 |
756.8 |
236.5 |
(53.5) |
950.9 |
For the period ended 30 September 2024
|
|
|
|
|
Other |
|
|
|
|
|
|
|
distributable |
Accumulated |
|
|
|
|
Share capital |
Share premium |
reserves |
losses |
Total |
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
Note |
£'millions |
£'millions |
£'millions |
£'millions |
£'millions |
|
Balance at 1 April 2024 |
|
11.1 |
756.8 |
339.3 |
(125.3) |
981.9 |
|
Dividends paid |
8 |
- |
- |
(34.1) |
- |
(34.1) |
|
Total comprehensive income for the period |
|
- |
- |
- |
35.1 |
35.1 |
|
Balance at 30 September 2024 |
|
11.1 |
756.8 |
305.2 |
(90.2) |
982.9 |
The accompanying Notes are an integral part of these condensed interim financial statements.
Condensed Statement of Cash Flows
For the six-month period ended 30 September 2025
|
|
|
Six months |
Six months |
|
|
|
ended |
ended |
|
|
|
30 September |
30 September |
|
|
|
2025 |
2024 |
|
|
|
(unaudited) |
(unaudited) |
|
|
Note |
£'millions |
£'millions |
|
Cash flows from operating activities |
|
|
|
|
Total comprehensive income for the period before tax |
|
1.7 |
35.1 |
|
Adjustments for: |
|
|
|
|
Loss/(gain) on investment at fair value through profit or loss |
|
31.2 |
(1.3) |
|
Interest income |
|
(1.5) |
(2.0) |
|
Operating cash flows before movements in working capital |
|
31.4 |
31.8 |
|
Changes in working capital |
|
|
|
|
Decrease/(increase) in trade and other receivables |
|
0.2 |
(0.1) |
|
Increase in trade and other payables |
|
0.6 |
7.8 |
|
Net cash generated from operating activities |
|
32.2 |
39.5 |
|
Cash flows from investing activities |
|
|
|
|
Additional investment in Holdco |
10 |
- |
(7.0) |
|
Loan principal repayment received |
|
0.9 |
1.5 |
|
Loan interest income received |
|
1.5 |
2.0 |
|
Net cash generated from investing activities |
|
2.4 |
3.5 |
|
Cash flows from financing activities |
|
|
|
|
Dividends paid |
8 |
(34.4) |
(34.1) |
|
Net cash used in financing activities |
|
(34.4) |
(34.1) |
|
Net movement in cash and cash equivalents during the period |
|
0.2 |
1.9 |
|
Cash and cash equivalents at the beginning of the period |
|
0.9 |
0.5 |
|
Cash and cash equivalents at the end of the period |
|
1.1 |
2.4 |
The financial information set out above does not constitute the Company's statutory financial statements for the six month ended 30 September 2025, 6 months ended September 2024or 31 March 2024 but is derived from those financial statements. Statutory financial statements for year ended 31 March 2025 have been delivered to the registrar of companies, and those for the 6 months ended 2025 will be delivered in due course. The auditors have reported on those financial statements; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
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