REG - EcofinGlobal U&I Tst - Half-year Report
27/05/2025 07:00
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RNS Number : 0665K Ecofin Global Utilities Inf Tst PLC 27 May 2025
ECOFIN GLOBAL UTILITIES AND INFRASTRUCTURE TRUST PLC
Half-year Financial Results for the six months ended 31 March 2025
Announcement of Unaudited Results
LEI: 2138005JQTYKU92QOF30
This announcement contains regulated information.
Ecofin Global Utilities and Infrastructure Trust plc (the "Company") is an
authorised UK investment trust whose objectives are to achieve a high, secure
dividend yield on a portfolio invested primarily in the equities of utility
and infrastructure companies in developed countries and long-term growth in
the capital value of the portfolio while preserving shareholders' capital in
adverse market conditions.
• During the half-year ended 31 March 2025, the Company's net asset value
("NAV") per share increased by +0.1% on a total return basis. The Company's
share price increased by +0.9% on a total return basis over the six months;
• Two quarterly dividends were paid during the period totaling 4.175p per
share. With effect from the dividend paid in February 2025, the quarterly
dividend was increased to 2.125p per share (8.50p per share per annum);
• The Company has continued to buy back shares when the share price has been
at a significant discount to the NAV; this is accretive to NAV total return;
• Accelerating power demand and infrastructure capital expenditure are
driving earnings growth from companies selected for the portfolio while
valuation multiples for these essential assets businesses remain low.
Financial Highlights
as at 31 March 2025
Summary As at or six months to As at or year to As at or half-year to
31 March 2025 30 September 2024 31 March 2024
Net assets attributable to shareholders (£000) 232,020 243,231 223,905
Net asset value ("NAV") per share(1) 217.39p 221.68p 196.15p
Share price (mid-market) 192.50p 195.00p 165.00p
Discount to NAV(1) 11.5% 12.1% 15.9%
Revenue return per share 1.86p 7.17p 2.25p
Dividends paid per share 4.175p 8.10p 4.00p
Dividend yield(1,2) 4.4% 4.2% 4.9%
Gearing on net assets(1,3) 14.0% 14.2% 12.6%
Ongoing charges ratio(1,4) 1.25% 1.39% 1.35%
1. Please refer to Alternative Performance Measures in the Half-year Report.
2. Dividends paid (annualised) as a percentage of share price.
3. Gearing is the Company's borrowings (including the net amounts due from
brokers) less cash divided by net assets attributable to shareholders.
4. The ongoing charges ratio is calculated in accordance with guidance issued
by the Association of Investment Companies ("AIC") as the
operating costs (annualised) divided by the average NAV (with income)
throughout the period.
Performance for periods to 31 March 2025 6 months 1 year 3 years 5 years Since admission(5) Since admission
(all total returns in £) % % % % % % per annum
NAV per share(6) 0.1 15.3 11.9 79.6 117.9 9.6
Share price(6) 0.9 22.0 -1.9 65.8 146.6 11.2
Indices(6, 7):
S&P Global Infrastructure Index 5.7 15.3 18.6 76.0 67.2 6.2
MSCI World Utilities Index 2.4 17.0 16.5 48.5 80.7 7.2
MSCI World Index 1.9 4.8 27.0 102.9 145.3 11.1
FTSE All-Share Index 4.1 10.5 23.3 76.5 69.4 6.4
FTSE ASX Utilities Index -1.9 7.7 9.7 59.3 49.8 4.9
5. The Company was incorporated on 27 June 2016 and its investment activities
began on 13 September 2016 when the liquid assets of Ecofin Water & Power
Opportunities plc ("EWPO") were transferred to it. The formal inception date
for the measurement of the Company's performance is 26 September 2016, the
date its shares were listed on the London Stock Exchange.
6. Total return includes dividends paid and reinvested immediately. Please
also refer to the Alternative Performance Measures in the Half-year Report.
7. The S&P Global Infrastructure Index and MSCI World Utilities Index are
the global sector indices deemed the most appropriate for performance
comparison purposes. The Company does not have a formal benchmark index. The
other indices are provided for general interest.
Chairman's Statement
Performance
Your Company's net asset value ("NAV") increased by +0.1%, including the
reinvestment of dividends, during the six months to 31 March 2025 and the
share price total return was +0.9%. The most comparable global indices, the
S&P Global Infrastructure Index and the MSCI Global Utilities Index
increased by +5.7% and +2.4% respectively (total returns in sterling).
Over the 12 months to 31 March 2025, the Company's NAV increased by +15.3% and
share price by +22.0% (total returns) while the S&P Global Infrastructure
Index and the MSCI Global Utilities Index rose by +15.3% and +17.0%
respectively.
At the portfolio level, company fundamentals remained strong with growth
opportunities for our listed infrastructure businesses often leading to
upgraded investment plans and forward guidance. Our Investment Manager took
partial profits in several of the North American holdings and reallocated the
cash into Europe and, with valuations still relatively low, added new names to
the portfolio.
Shareholder engagement and operational arrangements
Your board is very aware of the pressures on the investment trust sector and
of its obligations to be proactive and responsive to shareholders. This is
reflected in our efforts to improve shareholder outcomes by buying back shares
at a discount, raising the dividend by more than the rate of inflation, and
strengthening our roster of advisors.
During the half-year, to strengthen and broaden our abilities to engage with
shareholders, we appointed Montfort Communications as PR advisor. To
streamline administrative arrangements and to boost marketing and investor
relations reach, we are appointing Frostrow Capital LLP ("Frostrow"). Pending
regulatory approval, Frostrow will become AIFM with effect from 1 July 2025,
along with assuming responsibility for Company Secretarial, Administration and
Distribution functions. We expect this combination of advisors and experienced
operators to bring efficiencies and further improvements to overall
shareholder outcomes and communication.
Investment manager and management fee
As of 1 October 2024, RWC Asset Management LLP ("Redwheel") acquired the
Company's fund manager, Ecofin, and its investment team. Redwheel is a
UK-based specialist investment manager with some £17bn in assets under
management, including Temple Bar Investment Trust Plc. The transition has gone
smoothly and Ecofin's strategy and investment process remain unchanged, with
enhanced support from the wider Redwheel team. From the same date, a lower
management fee came into effect, delivering savings to shareholders.
Dividends and gearing
In view of our confidence in the long-term growth prospects for earnings per
share and your Company's strategy, we increased the quarterly dividend to
2.125p per share (8.50p per annum) with effect from the dividend paid in
February 2025. At the period end share price and taking into account the
increased dividend rate, the Company's shares yielded 4.3%.
Our investment trust structure enables the use of gearing, which has enhanced
shareholder returns by some 1.7% per year since inception. In addition to
maintaining a modest level of borrowings to increase overall returns, our
Investment Manager has used our credit facility flexibly over the period to
take advantages of opportunities in high-conviction stocks as they have
occurred.
Share buybacks
With the discount averaging around 12%, we continued to buy back shares to
limit the discount widening and to enhance NAV for the benefit of
shareholders. In total, 2,933,322 million shares were repurchased, equivalent
to £5.7 million, with an additional 686,677 shares repurchased since the end
of the half-year. Your board takes the view that, having issued new shares
when they were trading at a premium to NAV, it is our duty to buy shares back
when they trade at a material discount. Buybacks also enhance investment
returns
Outlook
Since 31 March, the Company's NAV and share price have increased by +6.23% and
+10.13% respectively.
As noted in the Investment Manager's Report, listed infrastructure remains
relatively undervalued by historical standards and the relevance of the asset
class continues to grow. The need for modern, durable infrastructure and the
transition to diversified sources of energy necessitates significant
investment in grids while the transport, water and waste management sectors
are also under-invested.
Your board views the prospects for the broad sector and your Company with
great confidence.
David Simpson
Chairman
23 May 2025
Investment Manager's Report
Markets and our sectors
After strong performance during the 2024 fiscal year (NAV total return
+25.9%), EGL's NAV and share price total returns were broadly flat over the
six months to 31 March 2025 (+0.1% and +0.9%, respectively) as interest rates
spiked and policy uncertainty, fuelled by the new US administration's tariff
and spending policies, sent shockwaves through global markets.
The past half-year's performance hides a major divide between the last quarter
of calendar year 2024 and the first quarter of 2025. In the former, NAV
declined by 10% due to concerns that the new US administration would
reconsider the support that infrastructure and renewable energy have received
over the past few years, notably from the Inflation Reduction Act. That trend
reversed in the first quarter of 2025, as utilities and infrastructure
appeared a relative safe haven in highly volatile and uncertain stock market
conditions.
We maintained a strong focus on the fundamental performance of portfolio
companies during the half-year. Across both the US and Europe, companies
generally delivered robust results, as they continued to grow dividends and
announce new capital expenditure plans aimed at enhancing long-term returns.
Power demand continued to strengthen on both sides of the Atlantic (due to
economic growth as well as General AI, datacentres, re-shoring. and electric
vehicles), while utility valuations remained well below historical standards.
Performance summary
Environmental services (Veolia, Waste Management) were the strongest
performance contributors over the six months to 31 March (+12.4%), followed by
regulated utilities (+4.7%, notably with Ameren +21.2%, Exelon +20.0%, Xcel
+14.2%). Renewables and nuclear were the worst performers as the release of
DeepSeek's latest and cheaper artificial intelligence model in January took
steam out of the AI momentum trade after a strong rally over the past two
years and raised questions on the actual size of the potential market. For
example, Constellation fell 19% over the half-year period.
By geography, APAC ex-Japan was the strongest contributor, gaining 9.9%, led
by China Water Affairs +36.4% and China Suntien +8.1%. Europe ex-UK followed,
gaining 3.7%, while the US contributed negatively (-2.2%), mostly driven by
renewables exposed names (AES, NextEra Energy) and Edison International
(exited) which operates in the region where severe wildfires took place in
January. EGL's UK book was the main performance detractor (-8.2%) as gilt
yields spiked from 3.6% in September to almost 4.8% in January before they
started to retreat.
The benchmark US 10-year Treasury yield closed the half-year at 4.2%, up c.60
basis points from the 12-month low of 3.6% reached in mid-September,
reflecting fiscally-led inflation fears and widespread policy uncertainty. UK
Gilt yields increased by an even greater extent (+ c.120bps between
mid-September lows and mid-January highs) as extra borrowing outlined in the
Labour party's first budget in October spooked bond markets. As a result, UK
utilities (Greencoat, SSE, Drax) were weak compared with global peers. Across
Europe too, bond yields were higher despite growth and inflation rates
trending lower and central bank rate cuts continuing to look likely in the
months ahead.
In March, the German CDU/CSU and SPD parties announced a €500bn
infrastructure plan as part of a wider fiscal package. This is expected to
significantly increase power demand, with an estimated growth of 2.5% per year
by 2027 - in sharp contrast with flat power demand since the early 1990s. In
our view, growing demand for electricity is likely to expose the structural
underinvestment in Germany's power system and we estimate that correcting for
this would require €0.5tn of investments in power grids, renewable energy
and flexible generation. German utility E.ON (5.1% portfolio weight at 31st
March) is ideally positioned to benefit from the modernisation of the domestic
power distribution grid, while we see RWE (3.8% portfolio weight at 31st
March) as an attractive way to play looming tightness in the German power
generation market.
Purchases & sales
Four new names were added to the portfolio over the period - Waste Management
("WM"), Brookfield Renewable Partners ("BEP"), Aena and Zurich Flughafen. WM
has a strong record of operational and financial performance while BEP is one
of the world's largest clean energy developers and producers (hydro, solar,
wind, battery storage). The company expects the power supply/demand mismatch
to persist and is seeing a lot of demand for "firm power" and very attractive
development margins. Spain-headquartered Aena is amongst the leading airport
operators globally with close to 370 million passengers in 2024. The stock
offers attractive earnings growth while continuing to trade at a substantial
discount to its historical valuation. Flughafen Zurich operates the largest
airport in Switzerland (12th largest in Europe) and is typically seen as a
high quality, defensive name thanks to its strong balance sheet, its less
cyclical traffic and exposure to the Swiss market. With the company's
investment programme normalising from 2025 onwards, we expect a sharp increase
in free cash flow which could lead to substantially higher dividend payments
in the coming years.
We added to our existing positions in Engie, 75% of whose earnings are
regulated or contracted. It trades on a forward price/ earnings ratio of 8x;
it has a 9% dividend yield and its balance sheet is healthy. We also added to
holdings in E.ON and Veolia,a global leader in environmental services. We took
partial profits from strong performers (AEP, Constellation, Vistra, Ameren,
National Grid) and decided to decrease our exposure to NextEra Energy given
increasing US uncertainty.
We also exited Edison International as the impact of California wildfires
remained a dominant concern for investors, as well as Elia given material
equity issuance risks. We sold the remaining small position in XPLR
infrastructure (formerly NextEra Energy Partners) following a disappointing
strategic update.
Overall, we reduced exposure to North America (from 45% in September 2024 to
36% of the portfolio at the end of March 2025) and reallocated assets towards
significantly undervalued European names.
Income and gearing
While income from investments has reduced in the first half of the year, we
still expect it to increase over the full year given that a large proportion
of the income is typically generated during Europe's April-July dividend
season.
Gearing averaged 14% during the half-year, higher than the average over the
previous period, reflecting our confidence in the outlook of the portfolio
holdings.
Outlook
The valuation of some parts of the stock market may be high but listed
infrastructure is still undervalued by historical standards, relative to broad
market averages and compared with valuations of private infrastructure assets.
We saw a partial rerating in March as the market took a more defensive stance,
but the sector continues to trade well below relative historical averages. We
believe the valuation gap will narrow further as infrastructure company
fundamentals remain positive against market uncertainty.
Our strategy's investment universe comprises businesses providing
infrastructure and services essential for economic activity and progress.
Serious weather events make modern, durable infrastructure all the more
important, and climate risk mitigation is fundamentally reliant on
infrastructure companies investing to facilitate the transition to a cleaner
world. The world now invests almost twice as much annually in clean energy as
it does in fossil fuels.(1) This growth is underpinned by strong demand,
continued cost reductions, emissions reduction goals and considerations of
energy security. Companies developing, owning and operating the infrastructure
behind the energy transition will, we expect, continue to be areas of
profitable opportunity.
Transportation infrastructure and environmental services (water and waste
management) businesses have limited competition and good pricing power,
operational performance is strong, and they contribute to portfolio
diversification. Stock valuations in these infrastructure segments are still
low - for example, ENAV, the monopoly provider of air traffic control services
in Italy, and Vinci, a global leader in motorway and airport concessions,
trade at valuations which are cheaper than their historical averages despite
strong cash generation supporting above market dividend yields.
The portfolio's companies will, we believe, continue to grow their earnings,
almost irrespective of the economic backdrop, helped by the proportion of
their revenues which is fully contracted or regulated.
RWC Asset Management LLP
Investment Manager
23 May 2025
Condensed Statement of Comprehensive Income
Notes Six months ended Six months ended Year ended
31 March 2025 (unaudited) 31 March 2024 (unaudited) 30 September 2024(audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments held at fair value through profit or loss - (1,134) (1,134) - 16,401 16,401 - 42,729 42,729
Foreign exchange(losses)/gains - (817) (817) - 634 634 - 1,544 1,544
Investment income 2 3,473 - 3,473 4,209 - 4,209 11,775 - 11,775
Investment management fees (400) (600) (1,000) (435) (653) (1,088) (886) (1,329) (2,215)
Administration expenses (434) - (434) (356) - (356) (858) - (858)
Net return before finance 2,639 (2,551) 88 3,418 16,382 19,800 10,031 42,944 52,975
costs and taxation
Finance costs (290) (434) (724) (228) (342) (570) (507) (760) (1,267)
Net return before taxation 2,349 (2,985) (636) 3,190 16,040 19,230 9,524 42,184 51,708
Taxation 3 (343) - (343) (602) - (602) (1,430) - (1,430)
Net return after taxation 2,006 (2,985) (979) 2,588 16,040 18,628 8,094 42,184 50,278
Return per ordinary share (pence) 4 1.86 (2.77) (0.91) 2.25 13.96 16.21 7.17 37.39 44.56
The total column of the Condensed Statement of Comprehensive Income is the
profit and loss account of the Company.
The revenue and capital columns are supplementary to this and are published
under guidance from the AIC.
All revenue and capital returns in the above statement derive from continuing
operations. No operations were acquired or discontinued during the six months
ended 31 March 2025.
The Company has no other comprehensive income and therefore the net return on
ordinary activities after taxation is also the total comprehensive income for
the period.
The accompanying notes are an integral part of the Financial Statements.
Condensed Statement of Financial Position
Notes As at As at As at
31 March 2025 31 March 2024 30 September 2024
(unaudited) (unaudited) (audited)
£'000 *restated *restated
£'000 £'000
Non-current assets 263,889 251,254 276,910
Equity securities at fair value through profit or loss
Investments held at fair value through profit or loss 263,889 251,254 276,910
Current assets
Debtors and prepayments 1,607 2,101 1,909
Cash at bank - - -
1,607 2,101 1,909
Creditors: amounts falling due within one year
Prime brokerage borrowings (32,309) (28,108) (34,569)
Other creditors (1,167) (1,342) (1,019)
(33,476) (29,450) (35,588)
Net current liabilities (31,869) (27,349) (33,679)
Net assets 232,020 223,905 243,231
Share capital and reserves
Called-up share capital 5 1,149 1,149 1,149
Share premium 50,548 50,548 50,548
Special reserve 95,247 110,298 103,473
Capital reserve 6 85,076 61,910 88,061
Revenue reserve - - -
Total shareholders' 232,020 223,905 243,231
funds
Net asset value per ordinary share (pence) 7 217.39 196.15 221.68
*As explained in note 5 of Notes to the Consolidated Financial Statements
Condensed Statement of Changes in Equity
Six months ended 31 March 2025 (unaudited)
Share capital Share premium account Special Capital Revenue Total
reserve(1)
reserve
reserve
£'000 £'000
£'000
£'000 £'000 £'000
Balance at 1 October 2024 1,149 50,548 103,473 88.061 - 243,231
Return after taxation - - - (2,985) 2,006 (979)
Buyback of ordinary shares to treasury - - (5,698) - - (5,698)
Dividends paid (see note 8) - - (2,528) - (2,006) (4,534)
Balance at 31 March 2025 1,149 50,548 95,247 85,076 - 232,020
Six months ended 31 March 2024 (unaudited) *restated
Share capital Share premium account Special Capital Revenue Total
reserve(1)
reserve
reserve
£'000 £'000
£'000
£'000 £'000 £'000
Balance at 1 October 2023 1,154 50,548 114,398 45,877 - 211,977
Return after taxation - - - 16,040 2,588 18,628
Buyback of ordinary shares for cancellation (5) - (917) - - (922)
Buyback of ordinary shares to treasury - - (1,174) - - (1,174)
Dividends paid - - (2,016) - (2,588) (4,604)
Balance at 31 March 2024 1,149 50,548 110,291 61,917 - 223,905
Year ended 30 September 2024 (audited) *restated
Share capital Share premium account Special Capital Revenue Total
reserve(1)
reserve
reserve
£'000 £'000
£'000
£'000 £'000 £'000
Balance at 1 October 2023 1,154 50,548 114,398 45,877 - 211,977
Return after taxation - - - 42,184 8,094 50,278
Buyback of ordinary shares for cancellation (5) - (917) - - (922)
Buyback of ordinary shares to treasury - - (8,958) - - (8,958)
Dividends paid - - (1,050) - (8,094) (9,144)
Balance at 30 September 2024 1,149 50,548 103,473 88,061 - 243,231
1. The special reserve may be used, where the board considers it appropriate,
by the Company for the purposes of paying dividends to shareholders and, in
particular, smoothing payments of dividends to shareholders.
*As explained in note 5 of Notes to the Consolidated Financial Statements
Condensed Statement of Cash Flows
Six months ended 31 March 2025 Six months ended Year ended
(unaudited) 31 March 2024 30 September 2024
£'000 (unaudited) (audited)
£'000 £'000
Net return before finance costs and taxation 88 19,800 52,975
(Decrease)/ increase in accrued expenses (36) 242 (16)
Overseas withholding tax (350) (639) (1,576)
Deposit interest income (5) (14) (16)
Dividend income (3,468) (4,195) (11,759)
Realised losses/(gains) on foreign exchange transactions 817 (634) (1,544)
Dividends received 3,524 4,250 11,558
Deposit interest received 5 14 16
Interest paid (605) (570) (1,267)
Losses/ (gains) on investments 1,134 (16,401) (42,729)
Increase/(decrease) in other debtors (49) 13 -
Net cash flow from operating activities 1,055 1,866 5,642
Investing activities
Purchases of investments (39,317) (45,605) (75,162)
Sales of investments 51,440 42,101 72,505
Net cash used in investing activities 12,123 (3,504) (2,657)
Financing activities
Movement in prime brokerage borrowings (2,260) 8,106 14,567
Dividends paid (4,548) (4,604) (9,144)
Buyback costs (5,553) (2,181) (9,880)
Net cash used in financing activities (12,361) 1,321 (4,457)
Increase/(decrease) in cash 817 (317) (1,472)
Analysis of changes in cash during the
year
12
12
Opening balance - - -
Foreign exchange movement 817 317 1,472
Increase/(decrease) in cash 817 (317) (1,472)
Closing balances - - -
Notes to the Condensed Financial Statements
for the six months ended 31 March 2025
1. Accounting policies
(a) Basis of preparation
The Condensed Financial Statements have been prepared in accordance with
Financial Reporting Standard ("FRS") 104 Interim Financial Reporting and with
the Statement of Recommended Practice 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts' issued in July 2022. The Condensed
Financial Statements are prepared in Sterling which is the functional currency
of the Company and rounded to the nearest £'000. They have also been prepared
on a going concern basis and approval as an investment trust has been granted
by HMRC.
The Condensed Financial Statements have been prepared using the same
accounting policies as the preceding Financial Statements which were prepared
in accordance with Financial Reporting Standard 102.
The financial information contained in this Interim Report does not constitute
statutory accounts as defined in Sections 434-436 of the Companies Act 2006.
The financial information for the periods ended 31 March 2025 and 31 March
2024 has not been audited.
The information for the year ended 30 September 2024 has been extracted from
the latest published audited Financial Statements which have been filed with
the Registrar of Companies. The report of the Auditor on those accounts
contained no qualification or statement under Section 498 of the Companies
Act 2006.
(b) Income
Income from investments, including taxes deducted at source, is included in
revenue by reference to the date on which the investment is quoted
ex-dividend. Special dividends are credited to capital or revenue, according
to the circumstances. The fixed returns on debt securities are recognised on a
time apportionment basis so as to reflect the effective yield on the debt
securities. Interest receivable from cash and short-term deposits is treated
on an accruals basis.
(c) Expenses
All expenses are accounted for on an accruals basis. Expenses are charged to
the revenue account except where they directly relate to the acquisition or
disposal of an investment, in which case they are charged to the capital
account; in addition, expenses are charged to the capital account where a
connection with the maintenance or enhancement of the value of the investments
can be demonstrated. In this respect, since 1 October 2022 the management fee
and overdraft interest have been allocated 60% to the capital account and 40%
to the revenue account (previously 50% to the capital account and 50% to the
revenue account).
(d) Taxation
The charge for taxation is based on the profit for the year to date and takes
into account, if applicable, taxation deferred because of timing differences
between the treatment of certain items for taxation and accounting purposes.
Deferred taxation is provided using the liability method on all timing
differences, calculated at the rate at which it is anticipated the timing
differences will reverse. Deferred tax assets are recognised only when, on the
basis of available evidence, it is more likely than not that there will be
taxable profits in future against which the deferred tax asset can be offset.
Due to the Company's status as an investment trust company and the intention
to continue meeting the conditions required to obtain approval in the
foreseeable future, the Company has not provided deferred tax on any capital
gains and losses arising on the revaluation or disposal of investments.
The tax effect of different items of income/gain and expenditure/loss is
allocated between capital and revenue within the Condensed Statement of
Comprehensive Income on the same basis as the particular item to which it
relates using the Company's effective rate of tax for the year, based on the
marginal basis.
(e) Valuation of investments
For the purposes of preparing the Condensed Financial Statements, the Company
has applied Sections 11 and 12 of FRS 102 in respect of financial instruments.
All investments are measured initially and subsequently at fair value and
transaction costs are expensed immediately. Investment transactions are
accounted for on a trade date basis. The fair value of the financial
instruments in the Condensed Statement of Financial Position is based on their
quoted bid price at the reporting date, without deduction of the estimated
future selling costs. Changes in the fair value of investments held at fair
value through profit or loss and gains and losses on disposal are recognised
in the Condensed Statement of Comprehensive Income as "Gains on investments
held at fair value through profit or loss". Also included within this caption
are transaction costs in relation to the purchase or sale of investments,
including the difference between the purchase price of an investment and its
bid price at the date of purchase.
(f) Cash
Cash comprises cash in hand and "On" demand deposits or "deposits repayable on
demand".
(g) Borrowings
Short-term borrowings, which comprise of prime brokerage borrowings, are
recognised initially at the fair value of the consideration received, net of
any issue expenses, and subsequently at amortised cost using the effective
interest method. The finance costs, being the difference between the net
proceeds of borrowings and the total amount of payments required to be made in
respect of those borrowings, accrue evenly over the life of the borrowings and
are allocated 40% to revenue and 60% to capital.
(h) Segmental reporting
The directors are of the opinion that the Company is engaged in a single
segment of business activity, being investment business.
Consequently, no business segmental analysis is provided.
(i) Nature and purpose of reserves
Share premium account
The balance classified as share premium includes the premium above nominal
value received by the Company on issuing shares net
of issue costs.
Special reserve
The special reserve arose following court approval in November 2016 to
transfer £123,609,000 from the share premium account. This reserve is
distributable and may be used, where the board considers it appropriate, by
the Company for the purposes of paying dividends to shareholders and, in
particular, augmenting or smoothing payments of dividends to shareholders.
There is no guarantee that the board will in fact make use of this reserve for
the purpose of the payment of dividends to shareholders. The special reserve
can also be used to fund the cost of share buy-backs.
Capital reserve
Gains and losses on disposal of investments and changes in fair values of
investments are transferred to the capital account. Foreign exchange
differences of a capital nature are also transferred to the capital account.
The capital element of the management fee and relevant finance costs are
charged to this account. Any associated tax relief is also credited to this
account.
Revenue reserve
This reserve reflects all income and costs which are recognised in the revenue
column of the Statement of Comprehensive Income.
The Company's special reserve, capital reserve and revenue reserve may be
distributed by way of dividend.
(j) Foreign currency
Monetary assets and liabilities and non-monetary assets held at fair value in
foreign currencies are translated into sterling at the rates of exchange
ruling at the Condensed Statement of Financial Position date. Transactions
involving foreign currencies are converted at the rate ruling on the date of
the transaction. Gains and losses on the translation of foreign currencies are
recognised in the revenue or capital account of the Condensed Statement of
Comprehensive Income depending on the nature of the underlying item.
(k) Dividends payable
Dividends are recognised in the period in which they are paid.
2. Income
Six months ended Six months ended Year ended
31 March 2025 31 March 2024 30 September 2024
£'000 £'000 £'000
Income from investments (revenue account)
UK dividends 429 484 1,550
Overseas dividends 2,921 3,610 9,933
Stock dividends 118 101 276
3,468 4,195 11,759
Other income (revenue account)
Deposit interest 5 14 16
Total income 3,473 4,209 11,775
During the six months ended 31 March 2025, the Company received £84,000 in
special dividends (31 March 2024: £nil and 30 September 2024: £3,000).
3. Taxation
The taxation expense reflected in the Condensed Statement of Comprehensive
Income is based on the estimated annual tax rate expected for the full
financial year. The estimated annual corporation tax rate used for the year to
30 September 2025 is 25% (2024: 25%).
During the period the Company suffered withholding tax on overseas dividend
income of £343,000 (31 March 2024: £602,000).
4. Return per ordinary share
Six months ended Six months ended Year ended
31 March 2025 31 March 2024 30 September 2024
p p p
Revenue return 1.86 2.25 7.17
Capital return (2.77) 13.96 37.39
Total return (0.91) 16.21 44.56
The returns per share are based on the following:
Six months ended Six months ended Year ended
31 March 2025 31 March 2024 30 September 2024
£'000 £'000 £'000
Revenue return 2,006 2,588 8,094
Capital return (2,985) 16,040 42,184
Total return (979) 18,628 50,278
114,886,798
Weighted average number of ordinary shares in issue 108,101,457 112,827,903
5. Ordinary share capital
31 March 2025
Total shares in issue Number Shares entitled to dividend Shares held in treasury Share capital
Number Number Number
Issued and fully paid
Ordinary shares of 1p each 114,920,697 109,721,598 5,199,099 1,149
Buyback of shares to treasury - 2,992,692 2,993,322 -
Ordinary shares of 1p each 114,920,697 106,728,276 8,192,421 1,149
31 March 2024 restated (Note)
Total shares in issue Number Shares entitled to dividend Shares held in treasury Share capital
Number Number Number
Issued and fully paid
Ordinary shares of 1p each 115,495,663 115,495,663 - 1,154
Buyback of shares for cancellation (574,966) (574,966) - (5)
Buyback of shares to treasury - (770,179) 770,179 -
Ordinary shares of 1p each 114,920,697 114,150,518 770,179 1,149
30 September 2024 restated (Note)
Total shares in issue Number Shares entitled to dividend Shares held in treasury Share capital
Number Number Number
Issued and fully paid
Ordinary shares of 1p each 115,495,663 115,495,663 - 1,154
Buyback of shares for cancellation (574,966) (574,966) - (5)
Buyback of shares to treasury - (5,199,099) 5,199,099 -
Ordinary shares of 1p each 114,920,697 109,721,598 5,199,099 1,149
Note: Subsequent to the authorisation of the 2024 annual financial statements,
an error was identified in the treatment of buybacks. Previously, all buybacks
had been disclosed as for cancellation. This error has now been rectified.
At 31 March 2025 there were 114,920,697 ordinary shares of 1p each in issue of
which 8,192,421 held in treasury (with no voting rights). (31 March 2024:
114,920,697 of which 770,179 were held in treasury; 30 September 2024:
114,920,697 of which 5,199,099 were held in treasury). During the half-year
ended 31 March 2025, 2,933,322 were bought back to treasury at a total cost of
£5,698,000 (31 March 2024: 574,966 shares were bought back for cancellation,
2,411,000 were bought back to treasury at a total cost of £2,096,000 and 30
September 2024: 5,774,065 shares were bought back to treasury for a net
payment of £9,880,000).
Since 31 March 2025 the Company has bought back 686,677 ordinary shares to
treasury for a cost of £1,394,000
6. Capital reserve
31 March 2025 31 March 2024 30 September 2024
£'000 £'000 £'000
Opening balance 88,061 45,877 45,877
Movement in investment holding gains (1,327) 17,451 36,333
Gains/(losses)on realisation of investments at fair value 192 (1,050) 6,396
Foreign exchange (losses)/gains (817) 634 1,544
Investment management fees (600) (653) (1,329)
Finance costs (434) (342) (760)
Buyback costs (34) (7) -
85,041 61,910 88,061
The capital reserve reflected in the Condensed Statement of Financial Position
at 31 March 2025 includes gains of £33,781,000 (31 March 2024: gains of
£16,226,000 and 30 September 2024: gains of £35,108,000) which relate to the
revaluation of investments held at the reporting date.
7. NAV per ordinary share
As at As at As at
31 March 2025 31 March 2024 30 September 2024
Net asset value attributable (£'000) 232,020 223,905 243,231
Number of ordinary shares in issue (excluding shares held in treasury) 106,728,276 114,150,518 109,721,598
NAV per share 217.39p 196.15p 221.68p
8. Dividends on ordinary shares
Six months ended Six months ended Year ended
31 March 2025 31 March 2024 30 September 2024
p p p
Fourth interim for 2023 of 1.95p (paid 30 November 2023) - 2,248 2,247
First interim for 2024 of 2.05p (paid 29 February 2024) - 2,356 2,356
Second interim for 2024 of 2.05p (paid 31 May 2024) - - 2,281
Third interim for 2024 of 2.05p (paid 30 August 2024) - - 2,260
Fourth interim dividend for 2024 of 2.05p (paid on 29 November 2024) 2,248 - -
First interim dividend for 2025 of 2.125p (paid on 3 March2025) 2,300 - -
4,548 4,604 9,144
A second interim dividend for 2025 of 2.125p will be paid on 30 May 2025 to
shareholders on the register on 2 May 2025. The ex-dividend date was 1 May
2025.
9. Transaction costs
During the period expenses were incurred in acquiring or disposing of
investments classified as fair value through profit or loss. These have been
expensed through capital and are included within gains/(losses) on investments
in the Condensed Statement of Comprehensive Income. The total costs were as
follows:
Six months ended Six months ended Year ended
31 March 2025 31 March 2024 30 September 2024
£'000 £'000 £'000
Purchases 47 71 146
Sales 10 17 27
57 88 173
The above transaction costs are calculated in line with AIC's Statement of
Recommended Practice (SORP). The transaction costs in the Company's Key
Information Document are calculated on a different basis and in line with the
EU's Packaged Retail Investment and Insurance-based Products (PRIIPs)
regulations.
10. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements using a fair
value hierarchy that reflects the significance of the inputs used in making
the measurements. The fair value hierarchy shall have the following levels:
Level 1: unadjusted quoted prices in an active market for identical assets or
liabilities that the entity can access at the measurement date;
Level 2: inputs other than quoted prices included within Level 1 that are
observable (i.e. developed using market data) for the asset or liability,
either directly or indirectly; and
Level 3: inputs are unobservable (i.e. for which market data is unavailable)
for the asset or liability.
The financial assets and liabilities measured at fair value in the Condensed
Statement of Financial Position are grouped into the fair value hierarchy at
the reporting date as follows:
As at 31 March 2025 Notes Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 263,889 - - 263,889
Total 263,889 - - 263,889
As at 31 March 2024 Notes Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 251,254 - - 251,254
Total 251,254 - - 251,254
As at 30 September 2024 Notes Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 276,910 - - 276,910
Total 276,910 - - 276,910
a) Equities and preference shares
The fair value of the Company's investments in equities and preference shares
has been determined by reference to their quoted bid prices at the reporting
date. Equities and preference shares included in Fair Value Level 1 are
actively traded on recognised stock exchanges. Investments categorised as
Level 2 are not considered to trade in active markets.
11. Related party transactions and transactions with the Investment Manager
Fees payable to the Directors and their interests in shares of the Company are
considered to be related party transactions and are disclosed within the
Directors' Remuneration Report on pages 29 to 31 of the Company's Annual
Report for the year ended 30 September 2024 ('2024 Annual Report'). The
balance of fees due to Directors at the period end was £nil (31 March 2024:
£nil and 30 September 2024: £nil).
The Company has an agreement as of 1 October 2024 with RWC Asset Management
LLP for the provision of investment management services.
The management fee with effect from 1 October 2024 is calculated at 0.9% per
annum of the Company's NAV on the first £200 million and 0.75% above £200
million and up to £400 million, and 0.6% thereafter, payable quarterly in
arrears. With effect from 1 October 2022 the management fee is chargeable 40%
to revenue and 60% to capital.
During the period £1,000,000 (31 March 2024: £1,088,000 and 30 September
2024: £2,214,000) of investment management fees were earned by the Manager,
with a balance of £510,000 being payable to RWC Asset Management LLP at the
period end (31 March 2024: £545,000 and 30 September 2024: £587,000 payable
to Ecofin Advisors Limited)
12. Analysis of changes in net debt
As at Currency As at
30 September 2024 Differences Cash flows 31 March 2025
£'000 £'000
£'000 £'000
Cash and short term deposits - (817) 817 -
Debt due within one year (34,569) - 2,260 (32,309)
(34,569) (817) 3,077 (32,309)
As at Currency Cash flows As at
30 September 2023 differences £'000 31 March 2024
£'000 £'000 £'000
Cash and short term deposits - 634 (634) -
Debt due within one year (20,002) - (8,106) (28,108)
(20,002) 634 (8,740) (28,108)
A statement reconciling the movement in net funds to the net cash flow has not
been presented as there are no differences from the above analysis.
Interim Management Report
The principal and emerging risks and uncertainties that could have a material
impact on the Company's performance are set out on pages 15 to 17 of the
Company's 2024 Annual Report. During the last few months, it also became
evident that, due to the prevailing low level of shareholder voting at general
meetings, an activist investor with a large shareholding could seek to pass
resolutions which may not be in the best interests of shareholders as a whole.
The Company has appointed a PR advisor and is proactively assessing steps to
improve shareholder awareness of their ability to vote.
The directors consider that the Chairman's Statement and the Investment
Manager's Report set out herein, the above disclosure on related party
transactions and the Directors' Responsibility Statement below, together
constitute the Interim Management Report of the Company for the six months
ended 31 March 2025 and satisfy the requirements of Disclosure Guidance and
Transparency Rules 4.2.3 to 4.2.11 of the Financial Conduct Authority.
The Half-year Report has not been reviewed or audited by the Company's
Auditor.
Directors' Responsibility Statement
The directors listed in the Half-year Report confirm that to the best of their
knowledge:
(i) the condensed set of Financial Statements has been prepared in accordance
with FRS 104 (Interim Financial Reporting) and give a true and fair review of
the assets, liabilities, financial position and profit and loss of the Company
as required by Disclosure Guidance and Transparency Rule 4.2.4 R;
(ii) the Interim Management Report includes a fair review, as required by
Disclosure Guidance and Transparency Rule 4.2.7 R, of important events that
occurred during the six months ended 31 March 2025 and their impact on the
condensed set of Financial Statements, and a description of the principal
risks and uncertainties for the remaining six months of the financial year;
and
(iii) the Interim Management Report includes a fair review of the information
concerning related party transactions as required by Disclosure Guidance and
Transparency Rule 4.2.8 R.
This Half-year Report was approved by the board on 23 May 2025 and the
Directors' Responsibility Statement was signed on its behalf by:
David Simpson
Director
23 May 2025
Hal-year report 2025
The Half-year Report will be available on the Investment Manager's website
www.redwheel.com/uk/en/individual/ecofin-globalutilities-and-infrastructure-trust-plc/.
(http://www.ecofininvest.com/egl) . A copy of the Half-year Report for the six
months ended 31 March 2025 will be submitted to the National Storage Mechanism
of the FCA and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The financial
information for the period ending 31 March 2025 comprises non-statutory
accounts within the meaning of Sections 434 - 436 of the Companies Act 2006.
For further information, please contact:
Grace Goudar
For and on behalf of
Apex Fund Administration Services (UK) Limited
Company Secretary
23 May 2025
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