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Greencoat UK Wind PLC: 2013 Full Year Results

24 March, 2014
GREENCOAT UK WIND PLC

 

Final Results announcement for the period from 4 December 2012 to 31 December 2013
 
Greencoat UK Wind PLC is the leading renewable infrastructure fund, solely and fully invested in operating UK wind farms. 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.
 
Highlights
·     The Company raised proceeds of £260 million by issuing 260,000,000 ordinary shares in an oversubscribed Initial Public Offering on 27 March 2013 and acquired a seed portfolio of interests in six wind farms (126.5 MW).
·     The Group increased its portfolio to ten wind farms (184.0 MW) in October and November 2013 using its acquisition debt facility.
·     On 18 December 2013, the Company raised proceeds of £83 million by issuing 80,975,610 ordinary shares, repaying acquisition debt.
·     The Group's investments generated 291.5 GWh of electricity in the period, 7.6 per cent. above budget.
·     Net cash generation after fees, costs and expenses, was £21.6 million in the period.
·     The Company paid an interim dividend of 1.5 pence per share for the period 27 March to 30 June2013 and paid a further interim dividend on 21 February 2014 of 3 pence per share in relation to the period 1 July to 31 December 2013.
·     The target dividend for 2014 is 6.16 pence.
Key Metrics as at 31 December 2013
Market capitalisation
£351.5 million
Share price
103.0 pence
Dividends paid with respect to the period
£14.2 million(1)
Dividends paid with respect to the period per share
4.5 pence
GAV
£401.1 million
NAV
£351.1 million
NAV per share
102.9 pence
NAV growth (adjusting for dividends)
1.9 pence
Total return (NAV)
6.5 per cent.
Annualised total return (NAV) (not seasonally adjusted)
8.7 per cent.
(1)£10.2 million of which was paid after 31 December 2013
 
 
Defining Characteristics
Greencoat UK Wind PLC was designed for investors from first principles to be simple, transparent and low risk.
 
•      The Group is invested solely in operating UK wind farms.
•      Wind is the most mature and largest scale renewable technology.
•      The UK has a long established and stable regulatory regime, high wind resource and over £40 billion of wind farms in operation in the short to medium term.
•      The Group is structured to be the preferred partner of utilities, who own the significant majority of UK wind assets and who need to recycle capital.
•      The Group is wholly independent and thus avoids conflicts of interests in its investment decisions.
•      The UK-based, independent Board is actively involved in key investment decisions and in monitoring the efficient operation of the assets, and works in conjunction with the most experienced investment management team in the sector.
•      The Group only invests in wind farms that have an appropriate operational track record (or price adjustment mechanism).
•      Low leverage (including no asset level leverage) is important to ensure a high level of cash flow stability and higher tolerance to downside sensitivities.
•      The Group invests in sterling assets and thus does not incur currency risk.