Downing Renew& Infra - Half-year Report
15/09/2022 07:00
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RNS Number : 5169Z Downing Renewables & Infrastructure 15 September 2022
15 September 2022
Downing Renewables & Infrastructure Trust plc
("DORE" or "the Company")
Interim Report and Accounts
Downing Renewables & Infrastructure Trust plc (LSE: DORE) announces its
results for the period ended 30 June 2022.
Highlights
á Successfully raised gross proceeds during the period of £52.9
million through a placing, an open offer, an offer for subscription and an
intermediaries offer at an issue price of 111.0 pence per ordinary share,
exceeding the target size of the issue.
á Deployed £57 million through the completion of four investments.
á Acquired two operational portfolios of hydropower plants, located
in central Sweden for £20.1 million. The portfolio consists of c. 12 GWh pa
portfolio located in the SE3 electricity pricing zone and a c. 36 GWh pa
portfolio located in the SE2 zone.
á Further increased the hydropower platform through the acquisition of
two plants located in southern Sweden (the SE4 price zone) for £17 million,
increasing forecast annual generation by c.18 GWh p.a.
á Completed the acquisition of an operational 46 MW (108GWh p.a) onshore
wind farm located in north-eastern Sweden for £19.8 million.
á Net asset value ("NAV") as at 30 June 2022 of £214 million, equal
to 115.9 pence per ordinary share, up 12.4 pence per ordinary share compared
to the NAV as at 31 December 2021. Increase driven primarily by accretive
acquisitions, increased power prices and inflation.
á NAV total return of 14.1% for the six-month period to 30 June 2022
and 23.2% since IPO.
á Discount rates for hydropower portfolio increased to 7.5% from
7.3%, reflecting increased merchant power revenues.
á Interim dividends per ordinary share of 2.5 pence paid during the
period and a further 1.25 pence per ordinary share declared (but not accrued)
relating to the three months to June 2022 to be paid in September 2022.
á The Portfolio generated 172 GWh of renewable energy during the
period, avoiding 80,942 tonnes of CO2e and powering the equivalent of 59,432
UK homes for a year.
á The Company notes the recent announcements made by the European Commission
regarding the potential introduction of a cap of EUR180/MWh on energy
generated from renewable sources in Europe (not including the UK). The
Company has made a series of investments in hydropower and wind farms in
Sweden. The valuation as at 30 June 2022 included price forecasts that
exceeded this level in one market, SE4, for calendar year 2022 only. If this
cap were to be introduced from 30 September 2022, initial analysis indicates
that this would impact revenues by less than £150,000 or less than 0.01% of
NAV.
Hugh Little, Chair, Downing Renewables & Infrastructure Trust plc,
commented:
"We are delighted with what we have achieved in the first half of the year,
both in terms of the performance of the assets and the quality of the
acquisitions completed. In particular we are pleased to have introduced wind
power to the portfolio, which further diversifies our energy generation in
line with our investment strategy. The market response to our fundraise was
very encouraging. We believe we are well-placed to deploy the remaining
capital as we continue to review a strong pipeline of potential acquisitions
that will drive efficiencies and help deliver a consistent income stream as
the portfolio becomes more diversified. We look forward to updating the market
to this effect in due course."
Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP,
commented:
"We have continued to grow the portfolio through a series of strong
acquisitions, all of which have been accretive to NAV due to operational and
capital efficiencies achieved. The assets have performed well overall and have
generated strong cash flows, with solar and wind generation ahead of
expectations. Diversification is key to ensuring stability of income across
the portfolio and we are pleased to be progressing a significant pipeline of
opportunities across different technologies and sectors, including wind,
hydro, solar and utilities in lower price zone areas in Europe, with a view to
deploying the remaining capital raised in June."
Contact details:
Downing LLP - Investment Manager to the Company +44 (0)20 3954 9908
Tom Williams
Singer Capital Markets - Joint Corporate Broker +44 (0)20 7496 3000
Robert Peel, Alaina Wong, Asha Chotai (Investment Banking)
Sam Greatrex, Alan Geeves, James Waterlow, Paul Glover (Sales)
Winterflood Securities Limited - Joint Corporate Broker +44 (0)20 3100 0000
Neil Morgan, Verity Wilson (Corporate Finance)
Darren Willis, Andrew Marshall (Sales)
TB Cardew - Public relations advisor to the Company +44 (0)20 7930 0777
Ed Orlebar +44 (0)7738 724 630
Tania Wild +44 (0)7425 536 903
DORE@tbcardew.com (mailto:DORE@tbcardew.com)
About Downing Renewables & Infrastructure Trust plc (DORE)
DORE is a closed-end investment trust that aims to provide investors with an
attractive and sustainable level of income, with an element of capital growth,
by investing in a diversified portfolio of renewable energy and infrastructure
assets in the UK and Northern Europe. DORE has been awarded the London Stock
Exchange's Green Economy Mark in recognition of its contribution to the global
'Green Economy'.
The Board classifies DORE as a sustainable fund with a core objective of
accelerating the transition to net zero through its investments, compiling and
operating a diversified portfolio of renewable energy and infrastructure
assets to help facilitate the transition to a more sustainable future. The
Company believes that this directly contributes to climate change mitigation.
DORE's strategy, which focuses on diversification by geography, technology,
revenue and project stage, is designed to increase the stability of revenues
and the consistency of income to shareholders. For further details please
visit www.doretrust.com (http://www.doretrust.com)
LEI: 2138004JHBJ7RHDYDR62
About Downing LLP
Downing LLP is a London-based investment management firm that currently
manages c.£1.6 billion of equity invested into businesses across a range of
sectors - from renewable energy, care homes and healthcare, to property and
technology. Downing has a demonstrable track record in renewables, having made
more than 175 investments into solar parks, wind farms and hydroelectric
plants since 2010.
For further details please visit www.downing.co.uk (http://www.downing.co.uk)
Key Metrics
As at or for period ended 30 June 2022
Total Shareholder Return since IPO 16.6% (10.7% annualised)
NAV total return since IPO 23.2% (14.9% annualised)
Net assets £214.1 million
NAV per share 115.9 pence per share
Share price 111.50 pence per share
Market capitalisation £205.9 million
GAV £321.2 million
Dividends per Ordinary share declared to date for FY22 3.75 pence
Environmental Performance Assets avoided 80,942 tonnes of CO(2) and powered the equivalent of 59,432
homes
Chairman's Statement
On behalf of the Board, I am pleased to present the Interim report of the
Company covering the period from 1 January 2022 to 30 June 2022 (the "Interim
Report").
Additional Equity Issuance
Following the £137.4 million raised during the Company's first financial
year, the Company established a share issuance programme to enable the
issuance of up to a further 250 million ordinary shares over a 12-month
period. I am pleased to say that despite the challenging capital markets
backdrop, the Company exceeded its initial target in respect of the initial
issuance under this programme and raised additional gross proceeds of £52.9
million. Through this raise, the Board were delighted to welcome new
shareholders to the register, and we would like to thank our shareholders,
both existing and new, for their support and look forward to updating on
progress in the coming months as we seek to deliver further value for them.
An element of the proceeds of the fundraising was immediately used to repay
the Group's revolving credit facility ("RCF"), with the remainder earmarked to
invest in an attractive pipeline of opportunities and to further diversify the
portfolio. The fundraise represented c.35% of the Company's Ordinary Share
capital immediately prior to the Issue and as a result, at the reporting date
our market capitalisation has exceeded £200 million.
Acquisitions
I wrote in the Company's Annual Report about how the Investment Manager had
continued to make great progress in deploying the Company's funds in Q1 2022.
That progress has continued, and the first six months of the financial year
have been busy, with a further £57 million deployed into four new
investments. These include the Company's acquisition of a 46 MWp operational
wind farm in north-eastern Sweden for £19.8 million and three additional
hydropower acquisitions across southern and central Sweden (including a new
electricity market - Sweden's SE4 price zone) for a total of £37.2million.
Diversification remains central to our strategy - during the period we have
added wind power, an additional technology to our portfolio as well as
acquiring our first hydropower assets in Sweden's SE4 pricing zone. Investing
in different technologies in different locations reduces our reliance on any
given natural resource and provides exposure to assets with different economic
lives.
The Board was particularly pleased with the acquisition of the hydropower
portfolio in Q2 of this year. This Portfolio comprises two hydropower plants
located in Sweden's southern SE4 pricing region. The plants were
comprehensively renovated between May 2014 and September 2019 and have an
aggregate forecast annual production of c.18 GWh p.a. The newly acquired
hydropower plants will be fully integrated into the Group's existing
hydropower operations. This acquisition will increase the number of hydropower
plants to 19 and the total forecast annual production of the Group's
hydropower portfolio to c.174 GWh, a c.60% increase since 31 December 2021.
Further details on the acquisitions during the period can be found in the
Investment Manager's Report.
Debt Facilities
To allow flexibility with making new investments, the Company, via wholly
owned subsidiaries, entered into two separate loan facility agreements in
2022: a £25 million RCF with Santander and a seven-year EUR 43.5 million debt
facility with Skandinaviska Enskilda Banken AB. Further information on these
facilities can be found in the Investment ManagerÕs Report.
During the period the RCF allowed the Group the flexibility to capitalise on
its current investment pipeline. In May 2022 the Group utilised the facility
to fund a c.£17 million acquisition of a portfolio of hydropower plants. As
mentioned above, the RCF was repaid in full during the period using the
proceeds from the recent fundraising.
Financial Results
During the period to 30 June 2022 the NAV per ordinary share increased from
103.5 pence at 31 December 2021 to 115.9 pence, an increase of 12% and total
return of 14.1% including dividends paid. The NAV total return since IPO has
increased over the period to 23.2% when dividends paid of 4.75 pence per
ordinary share are included.
The Company made a profit for the period to 30 June 2022 of £23.8 million,
resulting in earnings per ordinary share of 17.1 pence.
Portfolio Performance
During the period, the Company added an additional 12 assets to the portfolio.
This takes the number of operating assets to 3,267. The portfolio produced
approximately 172 GWh of clean electricity during the reporting period.
The assets continue to operate well, with operating profit for the 12 months
to June 2022 slightly above expectations. Generation for the first 6 months
of 2022 was ahead of expectations for the wind and solar assets and generation
was below forecast for the hydropower assets which were impacted by the
exceptionally dry conditions in Sweden. The reduced generation was offset by
higher power prices (in part, caused by the lower generation from hydropower
generally in Sweden).
Dividends and Returns
The Company's third dividend in respect of the period to 31 December 2021 of
1.25 pence per share was announced and paid during the period. In addition to
this, the Board was pleased to announce two further interim dividends in
respect of the period to 30 June 2022. The first of 1.25 pence per share was
paid in June 2022 and the second of 1.25 pence announced and to be paid
following the period end.
Following the declaration of the latest dividend of 1.25 pence per share on 24
August 2022, for the period to 30 June 2022, the Board is pleased to announce
that the Company has successfully met the increased dividend guidance of 5
pence per share for the 12-month period to June 2022, which was announced in
the Company's 2021 Interim Report.
The NAV reflects the fair market valuation of the Company's portfolio based on
a discounted cash flow analysis over the life of each of the Group's assets
plus the fair value of other assets and less the Company's liabilities. The
assumptions which underpin the valuation are provided by the Investment
Manager and the Board has satisfied itself with the calculation methodology
and underlying assumptions.
Investment Policy
During the period, shareholders approved amendments to the Company's
investment policy, including to: (i) increase the geographic and technology
investment restrictions until the Company first surpasses a Net Asset Value of
£300 million; (ii) increase the limit on short-term borrowings; and (iii)
simplify the definition of Gross Asset Value in the Company's investment
policy. The new limits are set out on the Company's website and the full
investment policy is available in the shareholder circular dated 7 June 2022
and also available on the website.
Outlook
The first half of 2022 has been dominated by the ongoing conflict in Ukraine
and rising inflation. The Ukraine crisis has forced governments, companies,
and citizens across the world to take a hard look at how energy is sourced and
utilised. Over recent years renewables have been a key growth sector for
investment companies, however, since the crisis began there have been
accelerated commitments to renewables and Governments have now realised that
the energy transition is not only important for the planet, but also for
energy security. We believe that DORE can play an active part in this.
As we emerged from COVID lockdowns, supply chain bottlenecks and higher energy
prices as a result of the ongoing conflict in Ukraine have contributed to
rising inflation in many markets. This has a modest impact on operating costs
for the renewable energy sector which generally has relatively low operating
costs and high EBITDA margins. The impact has been considerable on revenues
however, particularly in the UK, where the Company has a significant number of
operating solar assets. These installations benefit from long term subsidies
which are directly linked to RPI and have experienced significant NAV
increases as a result.
The Company sees a strong pipeline of opportunities across the core renewable
energy sectors (solar, wind and hydropower) in the UK and the Nordic
countries. Numerous opportunities are being progressed to expand the
portfolio, both through the acquisition of new assets in new jurisdictions as
well as also expanding Downing Hydro AB with further bolt-on acquisitions. The
Company is well placed to deploy the remainder of the capital raised in June
2022.
To increase the Company's diversification, drive efficiencies of scale at the
portfolio level, spread the fixed costs over a wider asset base and increase
liquidity for current and future shareholders, the Board intends over time to
continue increasing the size of the Company through the issue of further
shares. Any further such issuances will be priced at a premium to the
prevailing net asset value and will also be dependent on demand from investors
as well as the availability of pipeline investments.
The Board looks forward to bringing shareholders further updates on the
excellent progress made to date.
Hugh W M Little
Chair
14 September 2022
Downing Renewables & Infrastructure Trust plc
Portfolio Summary
At the period end the Company owned 180 MWp of hydropower, wind and solar
assets with an annual generation of around 373 GWh. The portfolio is
diversified across 3,267 individual installations and across five different
energy markets.
During the period the Group added an additional 59.7 MW of wind and hydropower
assets with an additional annual generation of 174 GWh.
The Group currently has no exposure to any assets under construction.
Portfolio composition by valuation, as at 30 June 2022
Technology by GAV
Hydro 39.2%
Solar 41.6%
Wind 7.6%
Cash 11.6%
Geographic Exposure by GAV
Sweden 46.7%
Great Britain 32.2%
Northern Ireland 9.5%
Cash 11.6%
Power Market Exposure by GAV
Sweden SE2 15.1%
Sweden SE3 24.4%
Sweden SE4 7.2%
Great Britain 32.2%
Northern Ireland 9.5%
Cash 11.6%
Investment Technology Date Acquired Location Power Market / Subsidy Installed capacity (MW) Expected annual generation (GWh)
Ugsi Hydro Feb-21 Älvadalen, Sweden SE3 / n/a 1.8 10
Båthusströmmen Hydro Feb-21 Älvadalen, Sweden SE3 / n/a 3.5 14
Åsteby Hydro Feb-21 Torsby, Sweden SE3 / n/a 0.7 3
Fensbol Hydro Feb-21 Torsby, Sweden SE3 / n/a 3 14
Rödbjörke Hydro Feb-21 Torsby, Sweden SE3 / n/a 3.3 15
Väls Hydro Feb-21 Torsby, Sweden SE3 / n/a 0.8 3
Torsby Hydro Feb-21 Torsby, Sweden SE3 / n/a 3.1 13
Tvärforsen Hydro Feb-21 Torsby, Sweden SE2 / n/a 9.5 37
Sutton Bridge Ground mount solar Mar-21 Somerset, England UK / ROC 6.7 7
Andover Airfield Ground mount solar Mar-21 Hampshire, England UK / ROC 4.3 4
Kingsland Barton Ground mount solar Mar-21 Devon, England UK / ROC 6 6
Bourne Park Ground mount solar Mar-21 Dorset, England UK / ROC 6 6
Laughton Levels Ground mount solar Mar-21 East Sussex, England UK / ROC 8.3 9
Deeside Ground mount solar Mar-21 Flintshire, Wales UK / FiT 3.8 3
Redbridge Farm Ground mount solar Mar-21 Dorset, England UK / ROC 4.3 4
Iwood Ground mount solar Mar-21 Somerset, England UK / ROC 9.6 9
New Rendy Ground mount solar Mar-21 Somerset, England UK / ROC 4.8 5
Redcourt Ground mount solar Mar-21 Carmarthenshire, Wales UK / ROC 3.2 3
Oakfield Ground mount solar Mar-21 Hampshire, England UK / ROC 5 5
Kerriers Ground mount solar Mar-21 Cornwall, England UK / ROC 10 10
RSPCA Llys Nini Ground mount solar Mar-21 Swansea, Wales UK / ROC 0.9 1
Commercial portfolio Rooftop Solar Mar-21 Various, England UK / FiT 0.3 0
Commercial portfolio Rooftop Solar Mar-21 Various, England & Wales UK / ROC 5.2 4
Commercial portfolio Rooftop Solar Mar-21 Various, N. Ireland SEM / NIROC 0.7 1
Bombardier Rooftop Solar Mar-21 Belfast, N. Ireland SEM / ROC 3.6 3
Residential portfolio Residential rooftop solar Mar-21 Various, N. Ireland SEM / NIROC 13.1 10
Lemmån Hydro Jan-22 Älvdalen, Sweden SE3 / n/a 0.6 3
Ryssa Övre Hydro Jan-22 Mora, Sweden SE3 / n/a 0.7 3
Ryssa Nedre Hydro Jan-22 Mora, Sweden SE3 / n/a 0.6 2
Rots Övre Hydro Jan-22 Älvdalen, Sweden SE3 / n/a 0.7 3
Rots Nedre Hydro Jan-22 Älvdalen, Sweden SE3 / n/a 0.3 1
Gabrielsberget Syd Vind AB Wind Jan-22 Aspeå, Sweden SE2 / n/a 46.0 108
Vallhaga Hydro Jan-22 Edsbyn, Sweden SE2 / n/a 2.1 13
Österforsens Kraftstation Hydro Jan-22 Edsbyn, Sweden SE2 / n/a 1.9 12
Bornforsen 1 Hydro Jan-22 Edsbyn, Sweden SE2 / n/a 0.5 3
Bornforsen 2 Hydro Jan-22 Edsbyn, Sweden SE2 / n/a 1.5 9
Fridafors Hydro May-22 Fridafors, Sweden SE4 / n/a 4.4 18
TOTAL AS AT 30 JUNE 2022: 179.8 373
Investment Manager's Report
Introduction
The first half of 2022 has been busy but rewarding, with the Company making
four new investments during the period, spending £57 million. The assets
acquired during the period are of a high quality and strengthen the
diversification of technology, geography and power market exposure that is
central to the aims of the Company. In June the Company launched an equity
raise, raising gross proceeds of £53 million.
Acquisitions
During the first half of the year, we have continued to grow our portfolio and
have made four acquisitions in the wind and hydropower sectors. This comprises
a 46 MWp operational wind farm in north-eastern Sweden - the Company's first
wind acquisition - and three additional Swedish hydropower portfolios to
complement the Company's existing portfolio. The Company further diversified
its energy market exposure by making its first investment in the SE4 pricing
zone in Sweden. All acquisitions are owned 100% by the Group.
Hydro - Downing Hydro AB ("DHAB")
DHAB is the vehicle through which the Group acquires and owns its portfolio of
hydropower plants.
In January 2022, the Group acquired two operational portfolios of hydropower
plants located in central Sweden for £20.1 million. The acquisition comprised
of a c. 12 GWh per annum portfolio of hydropower plants and a c. 36 GWh per
annum portfolio. These acquisitions were largely funded through a drawdown on
the DHAB Swedish hydropower portfolio debt facility signed in November 2021
with Skandinaviska Enskilda Banken AB ("SEB").
The first portfolio comprises five hydropower plants located on three
different rivers in central Sweden. The sites benefit from a long
operational history and are located in the county of Dalarna, which is in the
attractive SE3 price area.
The second of the two new portfolios include four run-of-river hydropower
plants situated on a single river in central Sweden. The sites also benefit
from a long operational history and were refurbished between 2010 and 2013.
The hydropower plants are located in and around the Swedish town Edsbyn in the
SE2 pricing zone.
In May 2022, the Company acquired, through DHAB, a 100% interest in an
additional portfolio of operational run-of-river hydropower plants in Sweden
for a total consideration of approximately £17 million. The acquisition was
funded by drawing down on DORE's £25 million RCF. This was subsequently
repaid in full using part of the net proceeds of the capital raise.
The portfolio acquired in May 2022 comprises two hydropower plants located in
Sweden's southern SE4 pricing region. The plants were comprehensively
renovated between May 2014 and September 2019 and have an aggregate forecast
annual production of c.18 GWh p.a.
The newly acquired hydropower plants will be fully integrated into DORE's
existing hydropower operational organisation. This acquisition increased the
number of DHAB hydropower plants to 19 and the total forecast annual
production of the hydropower portfolio to c.174 GWh, a c.60% increase since 31
December 2021.
The acquisition in May 2022 represented DORE's first assets to be located in
the attractive southern SE4 pricing region, which has the highest wholesale
power prices in Sweden, benefitting from export cables to continental Europe.
The acquisitions in a new price zone further supports DORE's strategy of
focusing on diversification by geography, technology, revenue and project
stage, designed to increase the stability of revenues and the consistency of
income to shareholders.
The acquisitions were accretive to NAV due to operational and capital
efficiencies as a result of the integration of the assets into the Company's
platform, and also the more attractive pricing available for individual sites
or small portfolios when compared to larger facilities. The net present value
gained from the acquisitions was £5.7 million.
A framework agreement is in place with Axpo (a leading Swiss energy company)
which allows DHAB to lock in prices. DHAB has hedged positions in line with
DORE's risk management strategy. The hydropower assets do not attract material
government subsidy payments.
Wind - Gabriel Project
On 2 February 2022 the Group completed its first onshore wind investment. The
Company acquired an operational 46 MW onshore wind project located in
Nordmaling, north-eastern Sweden for approximately £19.8 million.
The project has been operational for c. 10 years and comprises 20 turbines
with an expected total annual production of 108 GWh. Gabriel has a short-term
offtake agreement with Centrica.
Portfolio Performance
In the 12 months to June 2022 the operating profit was 1.4% ahead of budget.
Budgets are agreed upon acquisition and updated annually thereafter and are in
line with the investment case and subsequent valuation models respectively.
Portfolio generation for the 12-month period was 4.7% under expectations,
driven by the exceptionally dry conditions seen across Sweden during the first
half of 2022.
For the period of operations between 1 January 2022 and 30 June 2022,
generation was ahead of expectations for the wind and solar assets but lower
than expected in the hydropower portfolio due to exceptionally dry conditions,
leading to an overall shortfall of c.8% against expectation.
The hydropower portfolio maintained good levels of efficiency and performance
was driven by the weaker than expected spring flood as well as an unusually
dry summer in Sweden. The dry weather has now abated and waterflows have
returned to normal. In addition, reservoir reserves are back to expected
levels with 70% of capacity being utilised, ahead of the wetter autumn
period.
Cash flow from the assets remain strong, supported by transitional and
transaction costs remaining below budgeted levels. The benefits of the
Company's strategy of meaningful diversification by technology type and
location is clearly evident in the variations in generation against budget
that has been experienced in the last 12 months (and which will probably
continue in the future).
We have set out a graph in the full set of Interim Report and Accounts showing
how the portfolio has performed relative to forecast to show how each of the
different technologies complement one another at times of varying resource
availability.
Portfolio and Asset Management
Downing has invested significantly in an in-house asset management team
capable of providing a full scope service to a wide range of generation and
storage technologies. Established in 2019, the team totals 21 and includes
expertise across power markets, engineering, data analytics, finance and
commercial management.
Health and Safety
Following investment into Gabriel, a 46MW wind site in northern Sweden, the
Asset Manager is developing an ice safety framework to ensure Health and
Safety management policies remain fit for purpose. During the winter months,
ice will gather on turbine blades presenting a risk of ice throw. To mitigate
this risk, the Asset Manager is currently investigating the option of a heated
blading system. Analysis is also underway to establish the most effective way
to monitor ice accumulation.
Optimisation
During the period, the Asset Manager continued to develop and implement
performance and proprietary data optimisation strategies, the latter enhancing
Downing's data driven approach to asset management.
Work has continued to further develop Green Power Monitor (GPM) integration
across the portfolio, including integration at the Gabriel wind farm. This
system allows us to monitor performance and weather conditions in real time.
The Asset Manager has also introduced a new Energy production forecasting
tool, Meteo for Energy, designed to optimise the scheduling of maintenance and
onsite works across the Ground Mount solar portfolio. The service is a 6-day
production forecast that combines satellite forecasts and meteorological
models adjusted to the conditions of each site. This will shortly be
integrated into the O&M's operating processes to optimise energy output
during maintenance.
An inverter optimisation and upgrade plan is currently underway with the
manufacturer of several inverters in the ground mount solar portfolio.
Both the ground mount and commercial solar portfolios have now achieved
compliance with the new accelerated loss of mains requirements, using the
available funding from National Grid ESO.
Several new and optimised contracts were placed during the period. With the
acquisition of several new hydropower assets during the period, the Asset
Manager has incorporated these new sites into the optimised O&M contracts
strategy.
Ongoing active power price management ensures that performance optimisations
can deliver a strong financial performance for the portfolio.
Financing and Capital Structure
The Group continues to adopt a prudent approach to leverage, with the aim that
each asset will be financed appropriately for the nature of its underlying
cashflows and their expected volatility. Long-term debt may be used where
appropriate at the SPV level to facilitate acquisitions, refinancing, capital
expenditure or construction of assets.
Total long-term structural debt will not exceed 50% of the prevailing Gross
Asset Value at the time of drawing down (or acquiring) such debt. At 30 June
2022, including project level financing, the Group's leverage stood at 33%. In
addition, the Company and/or its subsidiaries may also make use of short-term
debt, such as a revolving credit facility, to assist with the acquisition of
suitable opportunities as and when they become available. Short term debt may
be up to 20% of GAV following changes to the investment policy approved in the
period.
Revolving Credit Facility
As previously announced in the Company's 2021 Annual Report, the Group entered
into a loan agreement through its main subsidiary DORE Hold Co Limited for a
£25 million RCF with Santander. During the period, the Group utilised £17.3
million of this facility to help facilitate the acquisition of two hydropower
plants located in Sweden's southern SE4 pricing region.
Following the capital raise in June 2022, as was intended, the Group utilised
an element of the proceeds to repay the outstanding RCF balance. As at the
date of this report, there is no balance owing on the RCF.
Foreign Exchange
The Group's assets in Sweden earn revenues in EUR and incur some operational
costs in SEK. Assets in the UK operate entirely in sterling.
The Group, together with its foreign exchange advisor, has developed and
implemented its foreign exchange risk management policy in line with the June
2022 Prospectus. The policy targets hedging the short to medium-term
distributions (up to five years) from the portfolio of assets, that are not
denominated in GBP on a 'linear reducing basis', whereby a high proportion of
expected distributions in year one are hedged and the proportion of expected
distributions that are hedged reduces in a linear fashion over the following
four years. This is a rolling programme and each year further hedges are
expected to be put in place to maintain the profile.
In total, 69% of the Group's forecast EUR dividend receipts from SPVs out to
March 2026 were hedged as at the reporting date, meaning only a small portion
of these future distributions are subject to the volatility of the spot
prices.
Power markets and exposure
Through its portfolio companies, the Group adopts a medium to long-term
hedging policy for its generation assets, providing an extra degree of
certainty over the cash flows over the hedged periods. The fixed price
generation position for the portfolio as of 30 June 2022 is set out in the
full set of Interim Report and Accounts, showing the impact of the combination
of subsidy and fixed income from power sales. The hedging positions are
continuously reviewed to ensure an appropriate position is maintained and new
hedges are taken out as appropriate.
The invasion of Ukraine continues to have a major impact on power prices
throughout Europe and the UK as European gas supply is dominated by Russia.
The UK gas and UK power markets are likely to remain volatile if the
uncertainty about the Russian gas supply continues. The Company has taken
steps to reduce its exposure to this volatility, due its high level of fixed
pricing over the short to medium term.
United Kingdom
The crisis in Ukraine dominated the European and UK energy markets in H1 of
2022. UK power and gas spot prices and forward prices for the front seasons
(summer and winter 2022) surged at the beginning of March 2022 amid spiraling
supply fears.
Gas forward prices for Summer 2022 tripled when compared to the price levels
at the beginning of Q2. Forward prices for Summer and Winter 2022 eased off
from these record high levels, as the initial fears of an imminent Russian gas
supply disruption seemed to be less founded. Forward prices at the back end of
the forward curve (Summer 2023 - Winter 2025) increased, which indicates that
markets believe gas supply issues may dominate the market for a number of
years.
Nordics
During Q1 2022, forward prices in the southern zones of Sweden benefitted from
record high power prices in continental Europe, due to their cross-border
capacities with the continent. However, the central and northern zones did not
see as much benefit from these high forward prices, mainly due to the lack of
sufficient transmission capacity with the southern zones. Consequently,
forward power prices of the southern regions traded at significant premiums to
the system forward power prices, whereas the forward power prices of the
northern regions traded at significant discounts. SE3 traded around the system
price, as it is located between the southern and northern regions.
The volatility in wind generation added to the volatility in the spot market,
which was amplified by cold spells and low hydrology levels throughout the
first quarter of 2022. Forward system power prices continued to increase in
the second half of 2022 on the back of power price increases in continental
Europe. The spot market continued to remain very volatile, driven by weather
and news from the gas market about supply from Russian pipelines and LNG.
Dividends
The Board has declared to pay the Company's fifth interim dividend of 1.25
pence per share, equivalent to £1.7 million, in respect of the three months
to 30 June 2022. This will bring total dividends paid in respect of the first
half of the financial year to 2.5 pence per share. The fifth interim dividend
is not reflected in the accounts to 30 June 2022.
In the Interim Report to June 2021, the Company announced that it was
increasing its dividend guidance to target 5 pence per share for the 12 months
to June 2022. Following the declaration of the recent dividend, the Company
has now achieved that target.
The Company has chosen to designate part of each interim dividend as an
interest distribution for UK tax purposes. Shareholders in receipt of such a
dividend will be treated for UK tax purposes as though they have received a
payment of interest in respect of the interest distribution element of this
dividend. This will result in a reduction in the corporation tax payable by
the Company.
Dividends paid and declared to date are as follows:
For the Period Dividend Paid No. of Shares Total Dividend (pence per share) IPO Target Interest Element (pence per share) Dividend Element (pence per share)
June 2021 September 2021 122,500,000 1.00 1.00 0.50 0.50
September 2021 December 2021 137,008,487 1.25 1.00 0.81 0.44
December 2021 March 2022 137,008,487 1.25 1.00 0.83 0.42
March 2022 June 2022 137,008,487 1.25 1.25 0.81 0.44
June 2022 September 2022 184,622,487 1.25 1.25 0.75 0.50
Total 6.00 5.50 3.70 2.30
The Company intends to pay dividends on a quarterly basis, with dividends
typically declared in respect of the quarterly periods ending March, June,
September and December. Payment of the relevant dividend declared is expected
be made within three months of the relevant quarter end.
The June 2022 dividend is as per the stated target and will be paid in
accordance with the timetable below:
Approved: 24 August 2022
Ex-dividend Date: 1 September 2022
Record Date: 2 September 2022
Payment Date: 30 September 2022
Valuation of the portfolio
Net asset value
The Company's NAV increased during the period from £141.8 million to £214.1
million. On a pence per share basis, it increased by 12.4 pence from 103.5
pence per share to 115.9 pence per share as at 30 June 2022. The NAV increase
was driven by additional fundraising, operational performance, inflation and
increases in long term power price forecasts.
The bridge below shows the movement in NAV during the period, with each step
explained further below.
Movement in NAV (£'m)
Opening NAV (31-Dec-21) 141.8
Dividends (3.4)
Management fee (0.8)
Other costs and charges (0.8)
Performance 2.6
Power Curve 16.5
Inflation 7.5
FX (1.5)
Discount Rate (2.2)
Acquisitions 7.9
Other (5.6)
Fundraising 51.9
Closing (30-Jun-22) 214.1
Opening
Represents the audited NAV at 31 December 2021.
Dividends
Distributions paid by the Company in the period.
Management Fee
Fees charged to the Company by the Investment Manager.
Other costs and charges
Charges incurred by the Company, and its immediate subsidiary DORE Hold Co, in
its normal operations. No transaction costs are included.
Performance
Represents the balance sheet variance at the portfolio company level
representing higher cashflows than anticipated in the short term.
Power Prices
The Group uses long-term, forward-looking power price forecasts from third
party consultants for the purposes of asset valuations. In both the UK and
Sweden, an equal blend is taken from the most recent central case forecasts
from two leading consultants. In Sweden, the market forecasts are blended with
Nordpool forward pricing for the first 3 years. Where fixed price
arrangements are in place, the financial model will reflect this price for the
relevant time frame. The impact of our short-term power hedging strategy is
also included in this step.
Inflation
Since IPO, the Group has used a near-term annual inflation forecast of 2.25%
until December 2023, and a medium-term forecast of 2.75% rising to 3.0% from
2024 for the purposes of UK asset valuations. From 2030 onwards, this forecast
reduces to 2.25% because of the RPI reform announced by the UK Government in
2021.
Given the rapid increases in inflation throughout 2022, we use an increased
annual assumption of 7.8% for 2022 only.
Models are updated quarterly to reflect actual inflation to date.
For the Swedish asset valuations, the group uses a near-term inflation
forecast for 2022 of 4.0% and for 2023 and beyond, a long-term inflation
forecast of 2.0% which is reflective of the Swedish central bank's target
inflation rate.
Foreign Exchange
The impact of foreign exchange movements on foreign cash balances and on
underlying investment valuations.
Other
Reflects changes to operational contracts (such as insurance), the cost of
debt in the future, and other minor changes.
Key Valuation Assumptions
Asset life
Where land is leased from an external landlord, the operational life assumed
for the purposes of the asset valuations is valued at the earlier of planning
or lease expiry.
Where a project has an indefinite life, the land it is located on is owned and
there are no constraints regarding planning, asset valuations are based on a
perpetual life. This is the basis for the valuation of the hydropower assets.
The asset life assumed for each of the ground mounted solar sites was set
taking into consideration the length of the respective planning consent and
term of leasing agreement in place at the time of acquisition. On a
capacity-weighted basis this results in an average asset life of close to 25
years. There is an ongoing process underway to extend planning and lease terms
to allow the assets to operate for longer than initially expected. This
project is expected to increase the weighted useful life of the ground mount
portfolio to 27.8 years. The extension to asset life assumptions to this level
would, if implemented on 30 June 2022, result in a valuation gain of
approximately £1.2m.
Discount Rates
Discount rates used for the purpose of the valuation process are
representative of the Investment Manager's and the Board's assessment of the
rate of return in the market for assets with similar characteristics and risk
profile. The discount rate of Downing Hydro AB has been increased by 0.2%, due
to increased merchant power revenues as a result of the increases in the most
recent power price forecasts. There has been no change to the discount rates
used on the solar and wind assets.
Discount rates in use across the portfolio range from 5.5% to 7.5%. The
increased discount rates applied to the hydropower portfolio have been offset
by the introduction of the unlevered wind farm at the lower discount rate of
6%, resulting in a largely unchanged weighted average discount rate of 7.2%.
Foreign Exchange
Cashflows from assets that are generated in a non-sterling currency are
converted in each period they are earned using the actual hedges in place,
with the residual amounts converted at the relevant exchange rate.
The relevant exchange rate is taken from a forward curve provided by the
Company's foreign exchange advisors for ten years, at which point the exchange
rate is held constant due to the impracticalities of hedging currency further
into the future.
Portfolio Valuation sensitivities
The NAV of the Company is comprised of the sum of the discounted value of
future cash flows of the underlying investments in solar and hydropower assets
(being the portfolio valuation), the cash balances of the Company and its
holding Company and the other assets and liabilities of the Group.
The portfolio valuation is the largest component of the NAV and the key
sensitivities to this valuation are considered to be discount rate and the
principal assumptions used in respect of future revenues and costs.
A broad range of assumptions are used in the Company's valuation models. These
assumptions are based on long-term forecasts and are generally not affected by
short-term fluctuations in inputs, whether economic or technical.
The Investment Manager exercises its judgement and uses its experience in
assessing the expected future cash flows from each investment.
The impact of changes in the key drivers of the valuation are set out in the
full Interim Report and Accounts.
Discount Rate
The weighted average discount rate of the portfolio at 30 June 2022 was 7.2%.
The Investment Manager considers a variance of plus or minus 0.5% is to be a
reasonable range of alternative assumptions for discount rates.
Energy Yield
For the solar assets, our underlying assumption set assumes the so called P50
level of electricity output based on reports by technical advisors. The P50
output is the estimated annual amount of electricity generation that has a 50%
probability of being exceeded and a 50% probability of being underachieved.
For hydropower assets, the expected annual average production is applied to
the valuation, similar to the P50 assumption applied to solar and wind assets.
Given the long operational record of the hydropower assets, the annual
production forecast is derived from historic datasets and validated by
technical advisors.
The Energy Yield sensitivities uses a variance of plus or minus 5% applied to
the generation for each year of the asset life.
Power Prices
The power price sensitivity assumes a 10% increase or decrease in power prices
relative to the base case for each year of the asset life.
While power markets can experience volatility in excess of +/-10% on a
short-term basis, the sensitivity is intended to provide insight into the
effect on the NAV of persistently higher or lower power prices over the whole
life of the portfolio, which is a more severe downside scenario.
Inflation
The Company's inflation assumptions are set out above. A long-term inflation
sensitivity of plus and minus 0.5% is presented below.
Foreign Exchange
The Company's foreign exchange policy is set out above. A sensitivity of plus
and minus 10% is applied to any non-hedged cashflows derived from non-sterling
assets for each year of the asset life. The Company will also try to ensure
sufficient near-term distributions from any non-sterling investments are
hedged.
Outlook
The outlook for the Company is encouraging. The existing assets continue to
operate well and four new acquisitions have been made in 2022, including the
Company's first wind farm. The Investment Manager is progressing a
significant pipeline of opportunities across technologies and sectors
including wind, solar, hydropower and utilities and continues to work to
finalise a series of investments that would see the balance of the capital
raised in June 2022 deployed. The main geographical focus of the opportunities
in progress is the Nordic region and the UK, with certain further
opportunities across Northern Europe.
Following Russia's invasion of Ukraine, many European governments have shifted
their focus to expanding renewable energy production. As a result of this, the
Investment Manager is seeing both an increase in new build assets coming to
market and also an increase in operational assets available for sale as asset
owners recycle capital for further investments in their development pipelines.
The Investment Manager is confident that these trends will continue to
increase the pipeline of potential investment opportunities available to the
Company.
Principal Risks and Uncertainties
For the remaining six months of the year to 31 December 2022
The Chairman's Statement and the Investment Manager's Report in this Interim
Report provide details of the important events which have occurred during the
period and their impact on the financial statements. The outlook for the
Company for the remaining six months of the year ending 31 December 2022 is
discussed in the Chairman's Statement and the Investment Manager's Report.
As described in the Company's Annual Report as at 31 December 2021, the
Company's principal risks and uncertainties include the following:
á Exposure to wholesale electricity prices and risk to hedging power
prices
á Exposure to the transactional effects of foreign exchange
á Non-compliance with the investment trust eligibility conditions
á Construction risk
á Reliance on third-party service providers
á Lack of availability of suitable renewable energy projects
á Conflicts of interest
á Risks relating to the technical performance of assets
á Counterparties' ability to make contractual payments
á Risks associated with Cyber Security
The Board believes that these risks are unchanged in respect of the remaining
six months of the year to 31 December 2022.
Further information in relation to these principal risks and uncertainties may
be found on pages 59 to 64 of the Company's annual financial statements as at
31 December 2021. These inherent risks associated with investments in
renewable energy projects could result in a material adverse effect on the
Company's performance and value of ordinary shares.
Risks including emerging risks are mitigated and managed by the Board through
continual review, policy setting and regular reviews of the Company's risk
matrix by the Audit Committee to ensure that procedures are in place with the
intention of minimising the impact of the above-mentioned risks.
The Board carried out a formal review of the risk matrix at the Audit
Committee meeting held on 2 March 2022 and again on 14 September 22. The Board
relies on periodic reports provided by the Investment Manager and
Administrator regarding risks that the Company faces. When required, experts
will be employed to gather information, including tax advisers, legal
advisers, and environmental advisers.
Responsibility Statement of the Directors
In respect of the financial statements
The Directors confirm that to the best of their knowledge this condensed set
of financial statements which have been prepared in accordance with IAS 34 as
adopted by the UK, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company. The operating and
financial review in the full set of the of the Interim Report and Accounts
includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8
of the Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority namely: an indication of important events that
have occurred during the period and their impact on the condensed 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 period as disclosed in Note 18.
The Directors, all of whom are independent and non-executive, are:
á Hugh W M Little
á Jo De Montgros
á Ashley Paxton
Approval
This Directors' responsibilities statement was approved by the Board of
Directors and signed on its behalf by:
Hugh W M Little (Chair)
14 September 2022
Condensed Statement of Comprehensive Income
For the six-month period ended 30 June 2022 (unaudited)
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 30 June 2021 (unaudited)
Revenue Capital Total Revenue Capital Total
Notes £'000s £'000s £'000s £'000s £'000s £'000s
Income
Return on investment 4 3,497 21,408 24,905 2,073 1,811 3,884
Total income 3,497 21,408 24,905 2,073 1,811 3,884
Expenses
Investment management fees 3 (739) - (739) (643) - (643)
Directors' fees (63) - (63) (83) - (83)
Other expenses 5 (335) - (335) (390) - (390)
Total expenses (1,137) - (1,137) (1,116) - (1,116)
Profit before taxation 2,360 21,408 23,768 957 1,811 2,768
Taxation 6 - - - - - -
Profit after taxation 2,360 21,408 23,768 957 1,811 2,768
Profit and total comprehensive income attributable to:
Equity holders of the Company 2,360 21,408 23,768 957 1,811 2,768
Earnings per share - Basic & diluted (pence) 7 1.70 15.39 17.09 1.02 1.94 2.96
The total column of this statement is the Statement of Comprehensive Income of
the Company prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted. The supplementary revenue return and capital
columns have been prepared in accordance with the Association of Investment
Companies Statement of Recommended Practice (AIC SORP).
Condensed Statement of Financial Position
As at 30 June 2022 (unaudited)
As at 30 June 2022 As at 31 December 2021 (audited)
Notes (unaudited) £'000
£'000s
Non-current assets
Investments at fair value through profit and loss 8 178,413 131,508
178,413 131,508
Current assets
Trade and other receivables 9 870 280
Cash and cash equivalents 13 36,675 11,254
37,545 11,534
Total assets 215,958 143,042
Current liabilities (1,903)
Trade and other payables 10 (1,201)
(1,903) (1,201)
Total liabilities (1,903) (1,201)
Net assets 214,055 141,841
Capital and reserves
Called up share capital 11 1,846 1,370
Share Premium 65,878 14,506
Special distributable reserve 117,156 118,435
Revenue reserve 440 203
Capital reserve 28,735 7,327
214,055 141,841
Shareholders’ funds
Net asset value per ordinary share (pence) 12 115.9 103.5
The unaudited condensed financial statements of Downing Renewables &
Infrastructure Trust plc were approved by the Board of Directors and
authorised for issue on 14 September 2022 and are signed on behalf of the
Board by:
Hugh W M Little
Chair
Company registration number 12938740
Statement of Changes in Equity
For the six-month period ended 30 June 2022 (unaudited)
Notes Share Capital Share Premium Capital Reserve Revenue Reserve Special Distributable Reserve Total
£'000s £'000s £'000s £'000s £'000s £'000s
Balance at the start of the period 1,370 14,506 7,327 203 118,435 141,841
Gross proceeds from share issue 11 476 52,375 - - - 52,851
Share issue costs 11 - (1,003) - - 22 (981)
Dividends 16 - - - (2,123) (1,301) (3,424)
Total comprehensive income for the period - - 21,408 2,360 - 23,768
Net assets attributable to shareholders at 30 June 2022 1,846 65,878 28,735 440 117,156 214,055
For the Period from 8 October 2020 to 30 June 2021 (unaudited)
Notes Share Capital Share Premium Capital Reserve Revenue Reserve Special Distributable Reserve Total
£'000s £'000s £'000s £'000s £'000s £'000s
Balance at the start of the period - - - - - -
Gross proceeds from share issue 11 1,225 121,275 - - - 122,500
Bonus shares - (52) - - - (52)
Share issue costs - - - - (2,450) (2,450)
Transfer to special distributable reserve - (121,223) - - 121,223 -
Total comprehensive income for the period - - 1,811 957 - 2,768
Net assets attributable to shareholders at 30 June 2021 1,225 - 1,811 957 118,773 122,766
The Company's distributable reserves consist of the Special distributable
reserve, Capital reserve attributable to unrealised gains and Revenue reserve.
There have been no realised gains or losses at the reporting date.
Statement of Cash Flows
For the six-month period ended 30 June 2022 (unaudited)
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 30 June 2021
Notes £'000s (unaudited)
£'000s
Cash flows from operating activities
Profit before taxation 23,768 2,768
Adjusted for:
Interest income 4 (3,497) (2,073)
Unrealised gains on investments at fair value 8 (21,408) (1,811)
Increase in receivables (590) (206)
Increase in payables 702 907
Net cash outflows from operating activities (1,025) (415)
Cash flows from investing activities
Purchase of investments 8 (22,000) (102,481)
Net cash outflows from investing activities (22,000) (102,481)
Cash flows from financing activities
Gross proceeds of share issue 11 52,851 122,500
Bonus shares - (52)
Dividends 16 (3,424) -
Share issue costs 11 (981) (2,450)
Net cash flows from financing activities 48,446 119,998
Increase in cash and cash equivalents 25,421 17,102
Cash and cash equivalents at the start of the period 11,254 -
Cash and cash equivalents at the end of the period 13 36,675 17,102
Notes to the Financial Statements
For the six-month period ended 30 June 2022 (unaudited)
1. General Information
The Company is registered in England and Wales under number 12938740 pursuant
to the Companies Act 2006 and its registered office Beaufort House, 51 New
North Road, Exeter, England, EX4 4EP.
The Company was incorporated on 8 October 2020 and is a Public Limited Company
and the ultimate controlling party of the group. The Company's ordinary shares
were first admitted to the premium segment of the Financial Conduct
Authority's Official List and to trading on the Main Market of the London
Stock Exchange under the ticker DORE on 10 December 2020.
The interim condensed unaudited financial statements of the Company (the
'interim financial statements') are for the period from 1 January 2022 to 30
June 2022 and comprise only the results of the Company, as all of its
subsidiaries are measured at fair value in line with IFRS 10 as disclosed in
Note 2.
The Company's objective is to generate an attractive total return for
investors comprising stable dividend income and capital preservation, with the
opportunity for capital growth through the acquiring and realising value from
a diverse portfolio of renewable energy infrastructure projects.
The Company currently makes its investments through its principal holding
company and single subsidiary, DORE Hold Co Limited ('Hold Co'), and
intermediate holding companies which are directly owned by Hold Co. The
Company controls the Investment Policy of each of Hold Co and its intermediate
holding companies in order to ensure that each will act in a manner consistent
with the Investment Policy of the Company.
The Company has appointed Downing LLP as its Investment Manager (the
'Investment Manager') pursuant to the Investment Management Agreement dated 12
November 2020. The Investment Manager is registered in England and Wales under
number OC341575 pursuant to the Companies Act 2006. The Investment Manager is
regulated by the FCA, number 545025.
2. Basis of preparation
The interim financial statements included in this report have been prepared in
accordance with IAS 34 Interim Financial Reporting. The interim financial
statements have been prepared under the historical cost convention, as
modified by the revaluation of financial assets and financial liabilities at
fair value through profit or loss.
The interim financial statements have also been prepared as far as is relevant
and applicable to the Company in accordance with the Statement of Recommended
Practice: Financial Statements of Investment Trust Companies and Venture
Capital Trusts ('SORP') issued in April 2021 by the Association of Investment
Companies ('AIC').
The interim financial statements are presented in sterling, which is the
Company's functional currency and are rounded to the nearest thousand, unless
otherwise stated. The accounting policies, significant judgements, key
assumptions and estimates are consistent with those used in the latest audited
financial statements to 31 December 2021 and should be read in conjunction
with the Company's annual audited financial statements for the period ended 31
December 2021.
These interim financial statements do not include all information and
disclosures required in the annual audited financial statements. The interim
financial statements are unaudited and do not constitute statutory accounts as
defined in section 434(3) of the Companies Act 2006.
Basis of Consolidation
The sole objective of the Company and through its subsidiary DORE Hold Co
Limited is to own Renewable Energy Infrastructure Projects, via individual
corporate entities. Hold Co typically will issue equity and loans to finance
its investments.
The Directors have concluded that in accordance with IFRS 10, the Company
meets the definition of an investment entity having evaluated the criteria
that needs to be met. Under IFRS 10, investment entities are required to hold
subsidiaries at fair value through profit or loss rather than consolidate them
on a line-by-line basis, meaning Hold Co's cash, debt and working capital
balances are included in the fair value of the investment rather than in the
Company's assets and liabilities. Hold Co has one investor which is the
Company. However, in substance, Hold Co is investing the funds of the
investors of the Company on its behalf and is effectively performing
investment management services on behalf of many unrelated beneficiary
investors.
Going concern
The Directors, in their consideration of going concern, have reviewed
comprehensive cash flow forecasts prepared by the Company's Investment Manager
which are based on prudent market data and believe that it is appropriate to
prepare the financial statements of the Company on the going concern basis.
In arriving at their conclusion that the Company has adequate financial
resources, the Directors were mindful that the Group had unrestricted cash of
£36.7 million as at 30 June 2022 and an undrawn revolving credit facility
('RCF') (available for investment in new or existing projects and working
capital) of £25 million through its main subsidiary DORE Hold Co Limited. The
Company's net assets at 30 June 2022 were £214 million and total expenses for
the period were £1.1 million, which when annualised, represented
approximately 1.2% of average net assets during the period.
At the date of approval of this document, based on the aggregate of
investments and cash held, the Company has substantial operating expenses
cover. The Directors are satisfied that the Company has sufficient resources
to continue to operate for the foreseeable future, a period of not less than
12 months from the date of this report. Accordingly, they continue to adopt
the going concern basis in preparing these financial statements.
Segmental reporting
The Chief Operating Decision Maker (the 'CODM') being the Board of Directors,
is of the opinion that the Company is engaged in a single segment of business,
being investment in renewable energy infrastructure.
The Company has no single major customer. The internal financial information
to be used by the CODM on a quarterly basis to allocate resources, assess
performance and manage the Company will present the business as a single
segment comprising the portfolio of investments in renewable energy
infrastructure assets.
Seasonal and cyclical variations
The Company's results do not vary significantly during reporting periods.
3. Investment management fees
Under the terms of the Investment Management Agreement, the Investment Manager
is entitled to a management fee from the Company, which is calculated
quarterly in arrears at 0.95% of NAV per annum up to £500 million and 0.85%
per annum of NAV in excess of £500 million.
During the period, the Company paid £592,953 of management fees relating to
prior periods. At the reporting date there were outstanding investment
management fees of £1,079,816 accrued. Following the period end, the Company
paid a further £694,732 against this accrual to Downing LLP.
No performance fee is payable to the Investment Manager under the Investment
Management Agreement and there are no provisions that would entitle the
Investment Manager to a performance fee in respect of future periods.
4. Return on investment
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 30 June 2021 (unaudited)
£'000s £'000s
Unrealised movement in fair value of investments (Note 8) 21,408 1,811
Interest due on loans to investment 3,497 2,073
24,905 3,884
5. Other expenses
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 30 June 2021 (unaudited)
£'000s £'000s
Alternative investment fund manager fee 61 57
Auditor fee
- Statutory audit services 48 14
- Initial accounts audit - 85
Company secretarial fee 27 33
Legal fees 20 47
Depositary fee 24 25
Hedging advisory 12 26
Marketing fee 32 20
Broker fee 41 28
Retainer fee - 28
Other fees 70 27
335 390
Total fees payable to BDO for non-audit services during the period were
£131,000. Fees paid were for professional fees paid to BDO relating to
reporting accountant services received during the Company's most recent share
issuance program. These share issue costs were allocated against the Company's
capital reserves.
6. Taxation
Taxable income during the period was offset by expenses and the tax charge for
the period ended 30 June 2022 is £Nil.
As described above, the Company is recognised as an ITC for accounting periods
and is taxed at the current main rate of 19%. To the extent that there is
insufficient group tax relief available to eliminate taxable profits, the
Company may make interest distributions to reduce taxable profits to nil.
(a) Analysis of charge in the period
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 30 June 2021 (unaudited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Analysis of tax charge / (credit) in the period:
Current tax:
UK corporation tax on profits of the period - - - - - -
Adjustments in respect of previous periods - - - - - -
- - - - - -
Deferred tax:
Origination & reversal of timing differences - - - - - -
Adjustments in respect of previous periods - - - - - -
Tax charge / (credit) on profit on ordinary activities - - - - - -
(b) Factors affecting total tax charge for the period
The effective UK corporation tax rate applicable to the Company for the period
is 19%. The tax charge differs from the charge resulting from applying the
standard rate of UK corporation tax for an investment trust company. The
differences are explained below.
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 30 June 2021 (unaudited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Profit / (Loss) on ordinary activities before tax 2,360 21,408 23,768 957 1,811 2,768
Profit on ordinary activities multiplied by standard rate
of corporation tax in the UK of 19% 448 4,068 4,516 182 344 526
Effect of:
Capital profits not taxable - (4,068) (4,068) - (344) (344)
Non-taxable income - - - - - -
Expenses non deductible - - - -
Interest distributions (448) - (448) (182) - (182)
Timing differences - - - - - -
Group relief - - - - - -
Excess management expenses - - - - - -
Total charge / (credit) for the period - - - - - -
HM Revenue & Customs ('HMRC') has granted approval to the Company's status
as an investment trust, and it is the Company's intention to continue meeting
the conditions required to obtain approval in the foreseeable future.
Investment companies which have been approved by HMRC under section 1158 of
the Corporation Tax Act 2010, as amended are exempt from tax on capital gains.
The March 2021 Budget announced a further increase to the main rate of
corporation tax to 25% from 1 April 2023. This rate has been substantively
enacted at the balance sheet date.
There is no unrecognised deferred tax asset or liability at 30 June 2022.
7. Earnings per share
For the six-month period ended 30 June 2022 For the Period from 8 October 2020 to 30 June 2021
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000s £'000 £'000 £'000s
Revenue and capital profit attributable to equity holders of the Company 3,497 21,408 24,905 957 1,811 2,768
Weighted average number of ordinary shares in issue 139,101 139,101 139,101 93,487 93,487 93,487
Basic and diluted earnings per share (pence) 1.70 15.39 17.09 1.02 1.94 2.96
Basic and diluted earnings per share are the same as there are no arrangements
which could have a dilutive effect on the Company's ordinary shares.
8. Investments at fair value through profit and loss
For the six-month period ended 30 June 2022 (unaudited) For the Period from 8 October 2020 to 31 December 2021 (audited)
Total Total
£'000s £'000s
Fair value at start of the period 131,508 -
Loan advanced to DORE Hold Co Limited in the period 22,000 113,749
Shares issued by DORE Hold Co limited in the period - 8,000
Unrealised gain on investments at FVTPL 21,408 7,327
Loan Interest 3,497 2,432
Fair value at end of the period 178,413 131,508
The current loan agreement between the Company and DORE Hold Co Limited was
increased from £120,000,000 to £200,000,000 during the period. At the
reporting date £135,748,641 had been advanced. The rate of interest on the
loan is a rate agreed between DORE Hold Co Limited and the Company and has
been set at 6% per annum. Interest accrued at the period end and outstanding
at the reporting date amounted to £5,929,286. Interest is repayable at the
repayment date of 31 December 2030 unless otherwise agreed between the parties
to repay earlier.
Included in the fair value are cash balances at DORE Hold Co of £9.3 million.
The Company owns nine shares in DORE Hold Co Limited that were allotted for a
consideration of £8,000,000.
Fair value measurements
IFRS 13 'Fair Value Measurement' requires disclosure of fair value measurement
by level. The level of fair value hierarchy within the financial assets or
financial liabilities ranges from level 1 to level 3 and is determined on the
basis of the lowest level input that is significant to the fair value
measurement.
The fair value of the Company's investments is ultimately determined by the
underlying net present values of the SPV ('Special Purpose Vehicle')
investments. Due to their nature, they are always expected to be classified as
level 3 as the investments are not traded and contain unobservable inputs.
The fair value hierarchy consists of the following three levels:
á Level 1 - Quoted prices (unadjusted) in active markets for
identical assets or liabilities.
á Level 2 - Inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices).
á Level 3 - Inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The following table analyses the Company's assets at 30 June 2022:
For the six-month period ended 30 June 2022 (unaudited)
Level 1 Level 2 Level 3 Total
£'000s £'000s £'000s £'000s
Investment portfolio summary
Unlisted investments at fair value through profit and loss - - 178,413 178,413
Total - - 178,413 178,413
For the Period from 8 October 2020 to 31 December 2021 (audited)
Level 1 Level 2 Level 3 Total
£'000s £'000s £'000s £'000s
Investment portfolio summary
Unlisted investments at fair value through profit and loss - - 131,508 131,508
Total - - 131,508 131,508
The determination of what constitutes 'observable' requires significant
judgement by the Company. Observable data is considered to be market data that
is readily available, regularly distributed or updated, reliable and
verifiable, not proprietary, and provided by independent sources that are
actively involved in the relevant market.
The only financial instruments held at fair value are the instruments held by
the Group in the SPVs, which are fair valued at each reporting date. The
investments have been classified within level 3 as the investments are not
traded and contain unobservable inputs. The Company's investments are all
considered to be level 3 assets.
As the fair value of the Company's equity and loan investments in Hold Co is
ultimately determined by the underlying fair values of the SPV investments,
the Company's sensitivity analysis of reasonably possible alternative input
assumptions is the same as for the Group.
There have been no transfers between levels during the period.
Valuations are derived using a discounted cashflow methodology in line with
IPEV Valuation Guidelines and take into account, inter alia, the following:
i. due diligence findings where relevant;
ii. the terms of any material contracts including PPAs;
iii. asset performance;
iv. power price forecasts from leading market consultants; and
v. the economic, taxation or regulatory environment.
The DCF valuation of the Group's investments represents the largest component
of GAV and the key sensitivities are considered to be the discount rate used
in the DCF valuation and assumptions in relation to inflation, energy yield,
foreign exchange and power price.
The shareholder loan and equity investments are valued as a single class of
financial asset at fair value in accordance with IFRS 13 Fair Value
Measurement.
Sensitivity
Sensitivity analysis is produced to show the impact of changes in key
assumptions adopted to arrive at the valuation. For each of the sensitivities,
it is assumed that potential changes occur independently of each other with no
effect on any other base case assumption, and that the number of investments
in the portfolio remains static throughout the modelled life. Accordingly, the
NAV per share impacts shown below assume the issue of further shares to fund
these commitments.
The analysis below shows the sensitivity of the portfolio value (and its
impact on NAV) to changes in key assumptions as follows:
Discount rate
The weighted average valuation discount rate applied to calculate the
portfolio valuation is 7.2%.
An increase or decrease in this rate by 0.5% points has the following effect
on valuation.
Discount rate NAV per share impact -0.5% change Total portfolio Value +0.5% change NAV per share impact
pence £'000 £'000 £'000 pence
Directors' valuation - Jun 2022 4.91 9,063 178,413 (8,312) (4.50)
Directors' valuation - Dec 2021 4.05 5,547 131,508 (5,072) (3.70)
Energy yield
The table below shows the sensitivity of the portfolio valuation to a
sustained decrease or increase of energy generation by minus or plus 5% on the
valuation, with all other variables held constant. The fair value of the solar
investments is based on a 'P50' level of electricity generation for the
renewable energy assets, being the expected level of generation over the long
term. For hydropower assets, the expected annual average production is applied
to the valuation, similar to the P50 assumption applied to solar and wind
assets.
A change in the forecast energy yield assumptions by plus or minus 5% has
the following effect.
Energy Yield NAV per share impact -5% change Total portfolio Value +5% change NAV per share impact
pence £'000 £'000 £'000 pence
Directors' valuation - Jun 2022 (7.46) (13,779) 178,413 13,867 7.51
Directors' valuation - Dec 2021 (6.36) (8,718) 131,508 8,750 6.39
Power prices
The sensitivity considers a flat 10% movement in power prices for all years,
i.e. the effect of adjusting the forecast electricity price assumptions in
each of the jurisdictions applicable to the portfolio down by 10% and up by
10% from the base case assumptions for each year throughout the operating life
of the portfolio.
A change in the forecast electricity price assumptions by plus or minus 10%
has the following effect.
Power Prices NAV per share impact -10% change Total portfolio Value +10% change NAV per share impact
pence £'000 £'000 £'000 pence
Directors' valuation - Jun 2022 (7.85) (14,489) 178,413 14,530 7.87
Directors' valuation - Dec 2021 (5.89) (8,070) 131,508 8,079 5.90
Inflation
The projects' income streams are principally a mix of subsidies, which are
amended each year with inflation, and power prices, which the sensitivity
assumes will move with inflation. The projects' operating expenses typically
move with inflation, but debt payments are fixed. This results in the
portfolio returns and valuation being positively correlated to inflation. The
weighted average long-term inflation assumption across the portfolio is 2.3%.
The sensitivity illustrates the effect of a 0.5% decrease and a 0.5% increase
from the assumed annual inflation rates in the financial model for each year
throughout the operating life of the portfolio.
Inflation NAV per share impact -0.5% change Total portfolio Value +0.5% change NAV per share impact
pence £'000 £'000 £'000 pence
Directors' valuation - Jun 2022 (3.40) (6,279) 178,413 6,744 3.65
Directors' valuation - Dec 2021 (2.12) (2,899) 131,508 3,108 2.27
Foreign exchange
The Company, where appropriate, seeks to manage its exposure to foreign
exchange movements, the objective being, ensuring that the Sterling value of
known future investment commitments is fixed. The portfolio valuation assumes
foreign exchange rates based on the relevant foreign exchange rates against
GBP at the reporting date. A change in the foreign exchange rate by plus or
minus 10% (Euro against Swedish Krona), has the following effect on the NAV,
with all other variables held constant. The effect is shown after the effect
of current level of hedging which reduces the impact of foreign exchange
movements on the Company's NAV.
Foreign Exchange NAV per share impact -10% change Total portfolio Value +10% change NAV per share impact
pence £'000 £'000 £'000 pence
Directors' valuation - Jun 2022 (6.08) (11,230) 178,413 11,141 6.03
Directors' valuation - Dec 2021 (1.55) (2,130) 131,508 1,728 1.26
9. Trade and other receivables
30 June 2022 31 December 2021
(unaudited) (audited)
£'000s £'000s
Prepayments 448 14
VAT 422 266
870 280
10. Trade and other Payables
30 June 2022 31 December 2021
(unaudited) (audited)
£'000s £'000s
Accounts Payable 627 51
Accruals 1,276 1,150
1,903 1,201
11. Called up share capital
As at 30 June 2022 (unaudited) As at 31 December 2021 (audited)
Allotted, issued and fully paid: Number of Shares Number of Shares
Opening Balance at beginning of period 137,008,487 -
Allotted upon Incorporation
Ordinary Shares of 1p each - 1
Management Shares - 50,000
Allotted /redeemed following admission to LSE
Ordinary Shares issued - IPO - 122,499,999
Management Shares redeemed - (50,000)
Ordinary Shares issued 47,614,000 14,508,487
Closing Balance of Ordinary Shares at end of period 184,622,487 137,008,487
On 23 June 2022 the Company announced that gross proceeds of approximately
£52.9 million were raised through the issue of 47,614,000 Ordinary Shares at
an issue price of 111.0 pence per Ordinary Share. Admission of the Ordinary
Shares to the premium segment of the Official List of the Financial Conduct
Authority and to trading on the premium segment of the London Stock Exchange's
main market occurred on 27 June 2022.
12. Net asset value per ordinary share
The basic total net assets per ordinary share is based on the net assets
attributable to equity shareholders as at 30 June 2022 of £214,054,762 (31
December 2021: £141,841,774) and ordinary shares of 184,622,487 in issue at
30 June 2022 (31 December 2021: 137,008,487).
There is no dilution effect and therefore no difference between the diluted
total net assets per ordinary share and the basic total net assets per
ordinary share.
13. Cash and Cash equivalents
At the period end, the Company had cash of £36.7 million. This balance was
held by the Royal Bank of Scotland.
14. Unconsolidated subsidiaries, associates and joint ventures
The following table shows the subsidiaries that the Group has acquired during
the period. As the Company is regarded as an Investment Entity as referred to
in note 2, these subsidiaries have not been consolidated in the preparation of
the financial statements:
Investment Place of Business Ownership Interest as at 30 June 2022
ÄSI Produktion AB Sweden 100%
AB Rots ÖvreKraftverk Sweden 100%
EdsbynVattenkraft AB Sweden 100%
Gabrielsberget Syd Vind AB Sweden 100%
Watten i Sverige AB Sweden 100%
There are no other changes to the unconsolidated subsidiaries or the
associates and joint ventures of the Group as disclosed on pages 133 and 134
of the Company's Annual Report for the year ended 31 December 2021.
15. Contingencies and commitments
The Company has no commitments or contingencies.
16. Dividends
Dividend per share Total dividend
Interim dividends paid during the period ended 30 June 2022 pence £'000
With respect to the quarter ended 31 December 2021 - Paid 31 March 2022 1.25 1,713
With respect to the quarter ended 31 March 2022 - Paid 30 June 2022 1.25 1,713
2.50 3,426
Dividend per share Total dividend
Interim dividends declared after 30 June 2022 and not accrued in the year pence £'000
With respect to the quarter ended 30 June 2022 1.25 2,308
1.25 2,308
On 24 August 2022, the Board declared an interim dividend of 1.25 pence per
share with respect to the period ended 30 June 2022. The Dividend is expected
to be paid on or around 30 September 2022 to shareholders on the register on 2
September 2022. The ex-dividend date is 1 September 2022.
17. Events after the balance sheet date
Dividends
On 24 August 2022, The Board declared an interim dividend of 1.25 pence per
share with respect to the period ended 30 June 2022.
The Dividend is expected to be paid on or around 30 September 2022 to
shareholders on the register on 2 September 2022. The ex-dividend date is 1
September 2022.
18. Related party transactions
During the period the Company increased its loan to Hold Co by £22 million.
Interest totalling £3.5 (31 December 21: £4.98) million was charged on the
Company's long-term interest-bearing loan between the Company and its
subsidiary. At the period end, £5.9 million (31 December 21: £2.4 million)
remained unpaid.
The loan to DORE Hold Co Limited is unsecured. As at the balance sheet date,
the loan balance stood at £135.7 million.
The Investment Manager is owed £113,830 commission in respect of funds raised
during the placing, open offer, offer for subscription and intermediaries
offer. This amount remained unpaid at the period end.
Alternative Performance Measures
In reporting financial information, the Company presents alternative
performance measures, ('APMs'), which are not defined or specified under the
requirements of IFRS. The Company believes that these APMs, which are not
considered to be a substitute for or superior to IFRS measures, provide
stakeholders with additional helpful information on the performance of the
Company. The APMs presented in this report are shown below:
Gross Asset Value or GAV
A measure of total asset value including debt held in unconsolidated
subsidiaries.
As at 30 June 2022 Page £'000
NAV a 3 214,055
Debt held in unconsolidated subsidiaries b n/a 107,155
Gross Asset Value a + b 321,210
NAV Total Return
A measure of NAV performance over the reporting period (including dividends
paid). NAV total return is shown as a percentage change from the start of the
period. It assumes that dividends paid to shareholders are reinvested at NAV
at the time the shares are quoted ex-dividend.
Period Ended 30 June 2022 Page NAV
NAV at IPO pence A n/a 98.00
NAV at 30 June 2022 pence b 3 115.9
Reinvestment assumption pence c n/a 0.05
Dividends paid pence d 60 4.75
Total NAV Return ((b + c + d) / a) -1 23.2%
Total Shareholder Return
A measure of share price performance over the reporting period (including
dividends reinvested). Share price total return is shown as a percentage
change from the start of the period. It assumes that dividends paid to
shareholders are reinvested in the shares at the time the shares are quoted
ex-dividend.
Period Ended 30 June 2022 Page Share Price
Issue price at IPO (10 December 2020) pence a n/a 100.00
Closing price at 30 June 2022 pence b 3 111.50
Benefits of reinvesting dividends pence c n/a 0.37
Dividends paid pence d 60 4.75
Total Return ((b+c+d)/a)-1 16.6%
Ongoing Charges
A measure, expressed as a percentage of average net assets, of the regular,
recurring annual costs of running the Company per Ordinary Share. This has
been calculated and disclosed in accordance with the AIC methodology.
Period Ended 30 June 2022 Page £'000
Average NAV a n/a 182,463
Annualised Expenses b n/a 2,273
Ongoing charges ratio b / a 1.2%
Glossary
2016 Paris Agreement an agreement within the United Nations Framework Convention on Climate Change,
dealing with greenhouse-gas-emissions mitigation, adaption, and finance,
signed in 2016
AIC Association of Investment Companies
Asset Manager INFRAM LLP a company operated by Downing LLP. Downing LLP is the controlling
member.
CCGT Combined Cycle Gas Turbines
Corporate PPA a PPA with a corporate end-user of electricity rather than with an electricity
utility
CO2 Carbon dioxide
CO2e Carbon dioxide equivalent
COP26 The 2021 United Nations Climate Change Conference
DHAB Downing Hydro AB
distribution network low voltage electricity network that carries electricity locally from the
substation to the end-user
ESG environmental, social and governance
FiT feed-in tariff
GAV Gross asset value - the aggregate value of the Group's underlying investments,
cash and cash equivalents, and third-party borrowings.
GBP Pounds Sterling
GHG Greenhouse Gas
Group the Company and its subsidiaries
GW Gigawatt
GWh Gigawatt hours
Investment Manager Downing LLP (Company No: OC341575)
IPO Initial Public Offering
KPI key performance indicator
MW Megawatt
MWh Megawatt hour
MWp Megawatt peak
NAV Net asset value
NIROC/s Northern Ireland ROC/s
O&M operations and maintenance
Ofgem the Office of Gas and Electricity Markets
Offtaker a purchaser of electricity and/or ROCs under a PPA
PPA a power purchase agreement
PPS Pence per share
RCF revolving credit facility
Renewable Energy Directive EU Renewable Energy Directive (2009/28/EC)
RO Renewables Obligation
ROC/s renewables obligation certificate/s
SE2 South Sweden
SE3 North Sweden
SEB Skandinaviska Enskilda Banken AB
SEK Swedish Kroner
SEM Single Electricity Market
SFDR Sustainable Finance Disclosure Regulation
Solar PV photovoltaic solar
SORP Statement of recommended practise
SPV Special purpose vehicle
Sustainable Development Goals Set out in the 2030 Agenda for Sustainable Development, adopted by all United
Nations Member States in 2015
transmission network high voltage power lines that transport electricity across large distances at
volume, from large power stations to the substations upon which the
distribution networks connect
Cautionary Statement
The Chairman's Statement and Investment Manager's Report sections of this
report has been prepared solely to provide additional information to
shareholders to assess the Company's strategies and the potential for those
strategies to succeed. These should not be relied on by any other party or for
any other purpose.
The Review Section may include statements that are, or may be deemed to be,
'forward-looking statements'. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
'believes', 'estimates', 'anticipates', 'expects', 'intends', 'may', 'will' or
'should' or, in each case, their negative or other variations or comparable
terminology.
These forward-looking statements include all matters that are not historical
facts. They appear in a number of places throughout this document and include
statements regarding the intentions, beliefs or current expectations of the
Directors and the Investment Manager concerning, amongst other things, the
Investment Objectives and Investment Policy, financing strategies, investment
performance, results of operations, financial condition, liquidity, prospects,
and distribution policy of the Company and the markets in which it invests.
By their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future. Forward-looking statements are not guarantees of future
performance. The Company's actual investment performance, results of
operations, financial condition, liquidity, distribution policy and the
development of its financing strategies may differ materially from the
impression created by the forward-looking statements contained in this
document.
Subject to their legal and regulatory obligations, the Directors and the
Investment Manager expressly disclaim any obligations to update or revise any
forward-looking statement contained herein to reflect any change in
expectations with regard thereto or any change in events, conditions or
circumstances on which any statement is based. In addition, the Review Section
may include target figures for future financial periods. Any such figures are
targets only and are not forecasts.
This Interim Report has been prepared for the Company as a whole and therefore
gives greater emphasis to those matters which are significant in respect of
Downing Renewables & Infrastructure Trust plc and its subsidiary
undertakings when viewed as a whole.
Company Information
Directors (all non-executive) Hugh W M Little (Chair)
Joanna de Montgros
Ashley Paxton
Registered Office Beaufort House
51 New North Road
Exeter
EX4 4EP
AIFM and Administrator Gallium Fund Solutions Limited
Gallium House
Unit 2
Station Court
Borough Green
Sevenoaks
Kent
TN15 8AD
Investment Manager Downing LLP
6(th) Floor
St Magnus House
3 Lower Thames Street
London
EC3R 6HD
Sponsor and Financial Adviser Singer Capital Markets LLP
One Bartholomew Lane
London
EC2N 2AX
Joint Corporate Broker Winterflood Securities Limited
Cannon Bridge House
25 Dowgate Hill
London
EC4R 2GA
Company Secretary Link Company Matters Limited
Beaufort House
51 New North Road
Exeter
EX4 4EP
Solicitors to the Company Gowling WLG (UK) LLP
4 More London Riverside
London
SE1 2AU
Registrar Link Group
10th Floor
Central Square
29 Wellington Street
Leeds LS1 4DL
email: enquiries@linkgroup.co.uk (mailto:enquiries@linkgroup.co.uk)
Depositary Gallium P E Depositary Limited
Gallium House
Unit 2
Station Court
Borough Green
Sevenoaks
Kent
TN15 8AD
Auditor BDO LLP
55 Baker Street
London
W1U 7EU
National Storage Mechanism
A copy of the Half-Yearly Report will be submitted shortly to the National
Storage Mechanism ("NSM") and will be available for inspection at the NSM,
which is situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Legal Entity Identifier: 2138004JHBJ7RHDYDR62
1 (#_ftnref1) These are alternative performance measures.
2 (#_ftnref2) Total returns in sterling, including dividend reinvested.
3 (#_ftnref3) Based on NAV at IPO of £0.98/Share
4 (#_ftnref4) A measure of total asset value including debt held in
unconsolidated subsidiaries.
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