Greencoat UK Wind PLC
23 February 2017
UKW - Final results
Greencoat UK Wind PLC is the
leading listed infrastructure fund, 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 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.
· The Group's portfolio of 19 wind farm investments
generated 978.1GWh of electricity, 6 per cent. below budget,
reflecting average wind speed across the UK being 6% below the long
· Net cash generation (Group and wind farm SPVs) was
Acquisitions and Equity
· The Group made two acquisitions during the year for a
total of £223.5m increasing the portfolio to 19 wind farm
investments, net generating capacity to 420MW and GAV to £900.1
million as at 31 December 2016:
o 28.2% interest in Clyde in March; and
o acquisition of Screggagh in June.
· In April, the Group launched a 300 million new share
issuance programme with the first and second tranches raising £100
million in May 2016 and £147 million in November 2016
Dividends and Returns
· NAV growth during 2016 was 4.1 pence per share (after
adjusting for dividends); since listing NAV per share has grown by
· The Company declared total dividends of 6.34 pence per
share with respect to 2016.
· In line with its policy of increasing the dividend in
line with December RPI, the Company is targeting a dividend of 6.49
pence per share for 2017.
As at 31 December 2016
Dividends with respect to the
Dividends with respect to the year
NAV per share
NAV growth per share (adjusting
Total return (NAV)
10.1 per cent.
17.4 per cent.
Greencoat UK Wind PLC was designed
for investors from first principles to be simple, transparent and
· The Group is invested solely in operating UK wind
· Wind is the most mature and largest scale renewable
· The UK has a long established regulatory regime, high
wind resource and £60 billion of wind farms in operation in the
short to medium term.
· 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
as disclosed in note 14 to the financial statements).
· 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 material currency risk.
Commenting on today's results, Tim
Ingram, Chairman of Greencoat UK Wind, said:
"We are pleased to
report the continued good performance of our portfolio and
demonstrate the robustness of the Company's business model in a
dynamic environment. We have delivered a total shareholder return
of 17.4% and NAV growth (adjusted for dividends) of 4.1 pence in
2016 and again increased our target dividend by RPI to 6.49p per
share for 2017.
During the year, we analysed many
further investment opportunities and made two significant
acquisitions increasing our net generating capacity to 420MW. We
were delighted with the support shown to us during the year in
raising £247 million."