REG - Foresight Envr - Half-Year Report
28/11/2025 07:00
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RNS Number : 3628J Foresight Environmental Infrastruct 28 November 2025
HY25 Results Highlights
28 November 2025
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED
("FGEN" or the "Company")
Half-year results for the six months ended 30 September 2025
FGEN, a leading investor in private environmental infrastructure assets across
the UK and mainland Europe, is pleased to announce the Company's interim
results for the six months ended 30 September 2025.
Ed Warner, Chair of FGEN, said:
"FGEN has delivered another period of solid progress despite persistent sector
headwinds. Our diversified portfolio continues to generate strong cash flows,
providing a dependable foundation for dividend growth and long-term value
creation.
"We remain on track to meet our full-year dividend target, supported by
proactive portfolio management and disciplined follow-on investments that
unlock further value. While the market backdrop has been challenging, our
strategy positions FGEN to deliver sustainable income and NAV growth without
reliance on new fundraising.
"Looking ahead, we are confident in our portfolio's combined ability to
deliver long-term predictable income for investors alongside attractive upside
potential from our growth assets. We remain optimistic about the structural
drivers underpinning the green economy.
"We continue to be fully committed, alongside our Investment Manager, to
closing the discount to NAV and ensuring that FGEN's share price more
accurately reflects the intrinsic value of its portfolio."
Summary of results:
Resilient Earnings and NAV :
• NAV per share of 104.7 pence, delivering positive NAV total return for
the period of 2.0% after payment of dividends.
• Annualised NAV total return of 7.2% since IPO.
• Company remains on track to deliver the full year dividend target of
7.96 pence, representing a yield of 12% on the share price at the date of this
report.
Strong operational performance:
• Strong operational performance with assets generating dividend cover
of 1.22x in the period, after amortisation of project-level debt facilities.
• Company remains on track to maintain or improve operational
performance over the remainder of the financial year.
• Generation +0.5% over budget¹, with anaerobic digestion facilities
continuing to perform particularly well.
Growth assets already delivering NAV uplift:
• CNG Fuels growing truck numbers and maintaining profitability.
• Rjukan aquaculture now fully operational, after successfully
delivering its first trout harvest in the period.
• The Glasshouse continues to onboard new customers and targets being
cash flow breakeven later this year.
1. After accounting for the anticipated recovery of downtime from operator
guarantees and insurances
Summary of changes in NAV:
NAV per share
NAV at 31 March 2025 106.5p
Dividends paid in the period -4.0p
Power price forecasts -1.0p
Battery updates -0.2p
Inflation 0.8p
Portfolio performance 0.1p
Uplift from share buyback programme 0.7p
Other movements (including discount rate unwind less fund overheads) 1.8p
NAV at 30 September 2025 104.7p
Key investment metrics
All amounts presented in £million (except as noted) Six months ended Year ended
30 September 2025 31 March 2025
Net assets¹ 652.7 678.7
Portfolio value² 751.9 765.7
Operating income and gains on fair value of investments 13.6 6.0
Net Asset Value per share³ 104.7p 106.5p
Distributions, repayments and fees from portfolio³ 39.7 90.4
Profit/(loss) before tax 9.5 (2.8)
Gross asset value 940.0 951.3
Market capitalisation³ 436.4 457.0
Share price 70.0p 71.7p
NAV total return for the period 2.0% 0.6%
Annualised NAV total return since IPO³ 7.2% 7.3%
Total Shareholder Return since IPO³ 44.8% 41.0%
Annualised total shareholder return³ 3.3% 3.2%
1. Also referred to as "NAV".
2. Classified as investments at fair value through profit or loss in the
statement of financial position.
3. Net Asset Value per share, market capitalisation, Gross Asset Value,
total shareholder return (since IPO and annualised), distributions, repayments
and fees from portfolio and annualised NAV total return since IPO are
alternative performance measures ("APMs"). The APMs can be found on pages 71
and 72 of the Half-year report 2025.
Half-year report
A copy of the half-year report has been submitted to the National Storage
Mechanism and will shortly be available at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The half-year report
will also be available on the Company's website at http://www.fgen.com where
further information on FGEN can be found.
Analyst Briefing
Chris Tanner, Ed Mountney and Charlie Wright, Investment Managers to FGEN,
will host a presentation with Q&A for equity analysts at 10:00 am GMT
today, Friday 28 November 2025.
Analysts wishing to register should contact SEC Newgate by email on
fgen@secnewgate.co.uk where further details will be provided.
The results and presentation materials will be posted on the Company's
website, www.fgen.com.
Retail Investor Webinar
The Company will present the interim results to retail investors via Investor
Meet Company on Tuesday 2 December 2025 at 12:00 pm GMT.
The event is open to all existing and potential shareholders. Questions can be
submitted before the event through the Investor Meet Company dashboard or at
any time during the live presentation.
Investors can sign up to Investor Meet Company for free, follow FGEN and gain
access to the meeting via:
https://www.investormeetcompany.com/foresight-environmental-infrastructure-limited/register-investor
Investors who already follow Foresight Environmental Infrastructure Limited on
the Investor Meet Company platform will automatically be invited.
Contacts
For further information, please visit www.fgen.com (https://www.fgen.com) or
contact:
Foresight Group +44(0)20 3667 8100
Chris Tanner institutionalir@foresightgroup.eu
Edward Mountney
Charlie Wright
Wilna de Villiers
Winterflood Securities Limited +44(0)20 3100 0000
Neil Langford
SEC Newgate +44 (0)20 3757 6882
Clotilde Gros fgen@secnewgate.co.uk
Alice Cho
Harry Handyside
Apex Fund and Corporate Services +44 (0)20 3530 3600
(Guernsey) Limited fgen@apexgroup.com
Matt Lihou
About FGEN
FGEN invests into environmental infrastructure to deliver stable returns, long
term predictable income and opportunities for growth, whilst driving
decarbonisation and sustainability.
Investing across renewable generation, other energy infrastructure and
sustainable resource management, it targets projects and businesses with an
emphasis on long term stable cash flows, secured revenues, inflation linkage
and the delivery of essential services. FGEN's aim is to provide investors
with a sustainable, progressive dividend per share, paid quarterly, alongside
the potential for capital growth.
The target dividend for the year to 31 March 2026 is 7.96 pence per share(2).
FGEN is an Article 9 fund under the EU Sustainable Finance Disclosure
Regulation and has a transparent and award-winning approach to ESG.
Further details can be found on FGEN's website www.fgen.com
(https://www.fgen.com) and LinkedIn page
(https://www.linkedin.com/showcase/foresight-environmental-infrastructure-limited/)
.
LEI: 213800JWJN54TFBMBI68
Foresight Environmental Infrastructure Limited
Half-year Report for the six months ended 30 September 2025
Chair's statement
"The underlying performance and cash generation of our diverse portfolio of
environmental infrastructure assets is robust and continues to provide a
dependable foundation for FGEN's dividend growth and long-term value
creation."
Ed Warner
Chair
On behalf of the Board, I am pleased to report that the six months ended 30
September 2025 has been another period of solid operational and financial
progress for FGEN. The underlying performance and cash generation of our
diverse portfolio of environmental infrastructure assets is robust and
continues to provide a dependable foundation for FGEN's dividend growth and
long-term value creation. Infrastructure and renewables investment companies
continue to face persistent headwinds, as stubborn inflation and elevated
interest rates prolong the wide discounts to NAV experienced across the
sector, including for our own shares.
While the market backdrop has been disappointing, FGEN's underlying
performance during the period has been strong. NAV total return growth is
positive, our dividend remains on target, and dividend cover is ahead of what
was forecast at the beginning of the year. This reflects the strength,
quality, and resilience of the Company's portfolio of operating assets.
Results
The portfolio delivered NAV total return for the six-month period of 2.0%
after the distribution of interim dividends totalling 3.94 pence per share.
FGEN remains on track to meet its full year target dividend of 7.96 pence per
share with dividend cover expected to be in the range of 1.20 - 1.30 times.
NAV as at 30 September 2025 was 104.7 pence per share, a 1.8 pence decline
from 31 March 2025. This reduction reflects several valuation updates across
the portfolio, partially offset by the positive impact of the £30 million
share buyback programme.
Portfolio performance
Over the period, performance of FGEN's individual assets has generally been
pleasing. The portfolio delivered strong cash yields resulting in dividend
cover of 1.22 times.
Our proactive approach to portfolio management has enabled several
value-enhancing follow-on investments into existing assets. This includes an
additional tranche of investment into the CNG platform in the form of a
secured debt instrument, with FGEN's commitment now across the capital stack
of both debt and equity and further investment into Vulcan Renewables as a
follow-on from the Pressure Reduction System ("PRS") value enhancement
successfully completed last year, with increased gas injection capacity now
driving higher revenues. These initiatives clearly demonstrate our ability to
unlock further value from existing holdings through disciplined and
forward-looking asset management, and highlight how the diversified nature of
the FGEN portfolio across different sectors provides more material
opportunities for value enhancement and growth when compared to wind and
solar.
These follow-on investments are in part funded by excess cash from the
portfolio, but also from our Revolving Credit Facility ("RCF"), with gearing
showing a modest increase to 30.6% compared to 28.7% at the start of the year.
We remain committed to maintaining low gearing levels. Even after the recent
increase, our gearing remains among the lowest across our peer group. The
Board believes that these follow-on investments represent an effective use of
capital when considering the target return uplifts versus broader capital
allocation measures.
Strategic update
We have continued to make good progress on our strategic aims that we set out
earlier this year. FGEN's overriding objective is to strike the right balance
between the continued delivery of the progressive dividend, which we have
grown consistently for over 10 years, and long-term NAV growth in this higher
interest rate environment.
The Board remains firmly of the view that the best route to achieving this
balance is via the ongoing proactive management of the operational part of our
portfolio to support the progressive dividend, and the continued ramp-up of
our growth assets which present opportunities for meaningful capital growth
over the medium to long term. As detailed by our Investment Manager later in
this report, this positions FGEN to generate NAV growth without having to
compromise income generation. We believe this represents a compelling and
unique investment opportunity.
Looking further forward to new investment, which the Board and Investment
Manager are actively considering, we will continue to prioritise core
environmental infrastructure across the three pillars that we have previously
set out - renewable energy generation, other energy infrastructure and
sustainable resource management. Each offers potential for attractive income
and growth beyond traditional renewables, while further diversifying our
revenue streams away from subsidy reliant sectors. During the period under
review, our focus has been on follow-on investment into the portfolio as
detailed earlier, but we are currently monitoring new opportunities that we
may pursue, again subject to returns, liquidity and broader capital allocation
measures.
Corporate matters
At the AGM held in September, shareholders gave a clear and positive
endorsement of FGEN's continuation, with 94% of votes cast in favour of the
Company continuing in its present form - which we greatly appreciate.
The current c.38% discount to NAV is of course very disappointing for the
Board and all of our shareholders, and we remain laser-focused on ensuring
that FGEN's share price properly reflects the value of its portfolio. We
continue to believe that this is best delivered by optimal delivery of the
stated strategy with the support of the Investment Manager, noting that some
of the factors driving the discount are outside of the Company's direct
control. The £30 million share buyback programme has been actively deployed
as part of our discount control strategy and to take advantage of the NAV
accretion opportunity that a wide discount presents.
In line with our focus on alignment and value for shareholders, a revised
Investment Manager fee structure came into effect on 1 October. Fees will be
calculated 50% based on Net Asset Value and 50% on market capitalisation,
further reinforcing the Board's commitment to cost efficiency and
performance-based remuneration.
Regulation
On 31 October 2025, the UK government's Department for Energy Security and Net
Zero ("DESNZ") published a consultation exploring proposed changes to the
Renewables Obligation ("RO") scheme and Feed-in Tariffs ("FiTs") that would
see renewables generators earn less for the electricity they generate.
We acknowledge the heightened uncertainty this potential retrospective change
has brought about for FGEN and the wider renewables infrastructure sector and
we are actively engaging with government, Ofgem and our peers to assess the
implications for existing RO assets and investors.
Due to the diverse nature of FGEN's portfolio, that includes both energy
generating and non-energy generating assets, we anticipate a relatively modest
downward movement on NAV of only 0.5 pence per share under Option 1(1) should
the proposed changes take effect. This further reinforces our unique
investment mandate which ensures FGEN is well placed to navigate a turbulent
political environment.
Summary and outlook
We are proud that FGEN recently joined the Association of Investment
Companies' Next Generation Dividend Hero list, having achieved over 10 years
of consecutive dividend increases. This is testament to our commitment to
delivering on our overriding purpose.
Looking ahead, we are confident in our core portfolio's ability to deliver
long-term value for investors while our growth assets offer upside potential
that could unlock additional opportunities. While we remain cautious given the
challenges that remain on a macro level, we are optimistic about the
structural drivers that underpin the green economy and the significant
investment opportunity it presents. Our broad investment mandate positions us
well to capitalise on these enormous opportunities.
We remain fully committed, alongside our Investment Manager, to closing the
discount to NAV and ensuring that FGEN's share price more accurately reflects
the intrinsic value of its portfolio.
We would like to thank our shareholders for their support and for sharing
their views during many conversations over the past few months. We look
forward to continuing this engagement in the months and years ahead.
Ed Warner
Chair
27 November 2025
1. The government consultation outlines two main options for adjusting the
RO and FiT schemes. Option 1 proposes to bring forward the date on which the
inflation index for these arrangements moves from RPI to CPI from 2030 to
2026. Option 2 proposes to temporarily freezes existing RO and FiT pricing
until CPI inflation catches up with RPI, which is estimated to occur around
2034/35. After which, CPI indexation would apply.
Our investment proposition
01. Highly diversified portfolio of environmental infrastructure assets
02. Delivering stable and predictable income with 11 years of uninterrupted
dividend growth
03. Investment strategy supported by long-term megatrends
04. Active portfolio management approach and deep origination capabilities
05. Highly contracted income and low merchant exposure
06. High quality, well-resourced and aligned investment manager
Top 10 assets
1. Cramlington
Sector: Renewable energy generation - Biomass
Location: UK
% of portfolio: 9%
2. Rjukan
Sector: Sustainable resource management - Controlled environment
Location: Norway
% of portfolio: 7%
3. CNG Fuels
Sector: Other energy infrastructure - CNG
Location: UK
% of portfolio: 6%
4. Glasshouse
Sector: Sustainable resource management - Controlled environment
Location: UK
% of portfolio: 5%
5. Amber
Sector: Renewable energy generation - Solar
Location: UK
% of portfolio: 5%
6. Llynfi
Sector: Renewable energy generation - Wind
Location: UK
% of portfolio: 5%
7. Dungavel
Sector: Renewable energy generation - Wind
Location: UK
% of portfolio: 5%
8. ELWA
Sector: Sustainable resource management - Waste management
Location: UK
% of portfolio: 5%
9. Vulcan
Sector: Renewable energy generation - Anaerobic digestion
Location: UK
% of portfolio: 5%
10. Burton Wold
Sector: Renewable energy generation - Wind
Location: UK
% of portfolio: 3%
Sector split
Split by portfolio value
39 assets
Renewable energy generation 71%
Other energy infrastructure 11%
Sustainable resource management 18%
Split by geography
UK 88%
Rest of Europe 12%
Split by operational status
Operational 97%
Construction 3%
The Investment Manager's report
About Foresight Group
Founded in 1984, Foresight is a FTSE 250 listed investment manager with a
focus on real assets, private equity and capital for growth. It manages a
range of private and public funds, including products tailored for retail
investors. The firm develops investment strategies aimed at supporting the
energy transition, industrial decarbonisation, nature recovery and the growth
of high-potential businesses. Its approach combines financial and operational
expertise to enhance asset value and deliver competitive returns.
Foresight's platform
£13.6bn(1) 7 5.0GW(2)
Assets under management Countries across the UK, Europe and Australia Renewable energy generation
Foresight Group divisions
Real Assets Private Equity Capital Management
79% 13% 8%
of assets under management of assets under management of assets under management
448 250+ 7
Infrastructure assets Portfolio companies Investment vehicles
Foresight's Real Assets division
1,000+ 185+ 16
Investment opportunities reviewed Real assets professionals Year track record
All figures as at 31 March 2025 unless otherwise stated.
1. AUM as per Foresight Group's unaudited trading update for the six months
ended 30 September 2025.
2. As defined by the London Stock Exchange Green Economy Mark.
Strategic update
In June this year, the Company announced the outcome of the Board's rigorous
evaluation of the range of strategic alternatives open to it. The overriding
objective for the Board is to strike the right balance between the continuing
generation of income to support a progressive dividend and delivering Net
Asset Value growth in the medium to longer term. The Board concluded that the
proactive management of the existing portfolio and a refocused investment
strategy was the course of action that best serves long‑term shareholder
interests, and the Company is continuing to make progress against this
strategy.
Clearly, the current discount to NAV remains frustrating for the Board, the
Investment Manager and all shareholders, although some of the factors behind
the discount are outside of the Company's control. However, what is in the
control of the Company is optimal execution of its stated strategy and the
subsequent delivery of consistent and stable NAV and dividend growth over the
medium to long term, which the Company can achieve without a reliance on new
fundraising.
Portfolio construction and the growth opportunity
Central to the Board's preferred strategic direction was consideration of the
nature and make-up of the FGEN portfolio. As previously detailed, the
portfolio is categorised across three sector pillars - renewable energy
generation, other energy infrastructure, and sustainable resource management.
Across those three pillars, approximately 85% of the portfolio is fully
operational, producing strong cash flows and actively contributing to the
progressive dividend and healthy dividend cover. The remaining 15% covers
FGEN's growth assets, i.e. The Glasshouse, CNG and Rjukan, and these assets
are generally not yielding or contributing to that healthy dividend cover.
These are the assets that have the potential to deliver meaningful capital
appreciation in the medium term, and as previously stated, this will likely be
via targeted disposals in the next two or three years once they have reached
operational maturity and we can recognise the value that's been created. If
successfully executed, this will enable the Company to recycle those disposal
proceeds into new investment opportunities under the refocused investment
strategy, targeting an appropriate balance between income and growth, to allow
the Company to grow, deliver its progressive dividend, and continue creating
further value over the long term.
Given that the growth assets are not contributing to the current dividend or
dividend cover, this strategy of targeted exits and recycling can be achieved
whilst retaining the operational assets from across other parts of the
portfolio to ensure that dividend cover can be maintained in the short term.
The Investment Manager is of the view that this puts FGEN in a strong position
versus some of its immediate peers.
Beyond the stated strategy for the growth assets, the Investment Manager
constantly assesses whether there are opportunities to realise value-accretive
exits from other parts of the portfolio to facilitate the recycling of capital
into attractive new investment opportunities to strengthen the portfolio and
support NAV growth and yield.
Driving value from the existing portfolio
Alongside the medium-term disposal and growth strategy, the Investment Manager
is focused on driving as much value as possible from the existing portfolio.
This incorporates active portfolio management to ensure operational
performance is optimised, and the delivery of value enhancements across the
portfolio.
FGEN's diversified asset base offers opportunities for material value
enhancement initiatives that cannot be so readily achieved from just wind and
solar. During the period the Company has completed value-accretive follow-on
investments into both the Vulcan anaerobic digestion facility and the CNG
platform. The Investment Manager is continuing to assess further opportunities
across the existing portfolio.
Performance summary
FGEN's diversification strategy continues to deliver meaningful benefits for
investors. The portfolio is underpinned by a substantial proportion of
contracted revenues, offering long-term, predictable cash flows with strong
inflation linkage. In addition, it benefits from income generated by
non-energy producing assets.
NAV per ordinary share at 30 September 2025 held at 104.7 pence (31 March
2025: 106.5 pence per share) after payment of interim dividends totalling 3.94
pence per share. The portfolio remains highly cash generative, driving
dividend cover of 1.22x for the first six months of the financial year - with
the Company on track to at least match that for the second half of the year -
allowing surplus funds to be reinvested back into growing the portfolio and
keeping gearing levels to one of the lowest in the sector.
The portfolio continued to deliver resilient operational performance during
the period with total renewable energy generation of 556GWh, 0.5% ahead of
budget(1) - further demonstrating the diversification benefits from the unique
mix of assets and sectors that the Company has carefully constructed.
Crop-based anaerobic digestion remained the largest contributor to portfolio
output, generating 48% of total energy and outperforming targets by 7.4%,
supported by strong operational availability and successful commissioning of
operational initiatives such as the highly value-accretive Pressure Reduction
System at Vulcan Renewables that has enabled the facility to significantly
increase the volume of gas that can be injected at the site - from which the
Company is already generating additional revenue streams. Solar assets
exceeded generation targets by 6.2% reflecting favourable irradiation and high
availability, while wind assets underperformed by 6.5% primarily due to weaker
resource, despite some months of above budget performance. Biomass and
energy-from-waste assets faced significant challenges with extended outages,
though insurance and liquidated damages claims are expected to partially
offset revenue impacts.
FGEN's construction and early-stage operational growth assets have progressed
well during the period. The Sandridge 50MW battery asset was energised in the
period with takeover expected soon. The controlled environment investments,
including The Glasshouse and Rjukan aquaculture, continued their ramp-up
phases, with Rjukan delivering its first trial harvest as it progresses its
transition from construction to early-stage operations, unlocking a valuation
uplift. CNG Fuels continues to demonstrate pleasing growth, with volumes of
gas dispensed, truck numbers and Renewable Transport Fuel Certificate ("RTFC")
pricing all up significantly since this time last year. Looking ahead, the
Investment Manager remains focused on operational optimisation, disciplined
hedging and selective growth opportunities to enhance resilience and long-term
value in a developing fuel market characterised by evolving regulatory and
pricing dynamics.
1. 0.5% ahead of budget includes expected recoveries through contractual
compensation mechanisms. 5.2% below budget excluding compensation.
Market and opportunities
The Board and the Investment Manager remain of the view that environmental
infrastructure is one of the most significant investment opportunities of this
generation. FGEN's diversified mandate ensures it is very well placed to
capitalise on this by investing across three key themes of environmental
infrastructure - renewable energy generation, other energy infrastructure and
sustainable resource management - to help address a wider range of
environmental challenges faced by society than just generation of low-carbon
electricity. Within these three pillars, the markets and opportunities remain
largely unchanged from those discussed on pages 12 to 15 in the Company's
Annual Report 2025.
The Company continues to benefit from the strength of the Investment Manager's
wider platform, where it believes it has built an origination and investment
acquisition platform which has a demonstrable track record of sourcing
high-quality pipelines of potential investments. Foresight Group's Real Assets
division consists of over 185 individuals, across offices in the UK, Italy,
Spain and Australia, and over the last 12 months has sourced c.1,000 total
prospective infrastructure investments.
These cover the value chain from operational assets providing immediate yield
through to development and construction-stage investments with an additional
focus on growth and capital appreciation across FGEN's diversified mandate.
Particular areas of interest currently being appraised include biofuels,
biomethane and heat decarbonisation, alongside more traditional sectors such
as core renewables.
Investment outlook
As set out in the markets and opportunities section, environmental
infrastructure continues to be one of the most significant investment
opportunities of this generation. FGEN's strategic mandate makes it well
placed to capitalise across the full suite of renewable generation, other
energy infrastructure and sustainable resource management technologies.
Whilst the decarbonisation agenda maintains powerful momentum, geopolitical,
geoeconomic and macroeconomic dynamics are shaping critical developments in
the UK and internationally, resulting in profound implications for
infrastructure investment. A combination of policy shifts, trade realignments
and capital market trends are influencing how and where capital flows into the
broader energy transition and other decarbonisation sectors. Therefore, an
investment mandate with a degree of strategic flexibility, like FGEN's, is
important in being able to adapt to changing market conditions whilst still
adhering to a disciplined investment framework.
Clearly, the listed infrastructure and renewables sector continues to face
challenges and the prolonged current discounts mean that equity markets will
likely remain inaccessible to FGEN and its peers in the near term. Whilst
there is a hope that external factors could lead to a re-rating in time, for
example further reductions in central bank interest rates or a wider
correction to the current supply/demand imbalance in listed stocks, the
Company's central objective is to achieve organic NAV growth without a
reliance on fundraising and it has a clear strategy to do so, as detailed
earlier.
We therefore continue to remain optimistic about the future. The fundamental
story for the growth of environmental infrastructure, and therefore the
opportunity for FGEN, is as strong as it has ever been, with the energy
transition requiring £trillions of investment over the coming decades.
Foresight is continuing to deploy and manage capital across a wide range of
infrastructure sectors at all stages of the investment lifecycle, and the core
FGEN investment management team is well placed to leverage this broader
activity. Whilst any new investment remains subject to liquidity and Board
approval, the Investment Manager is confident that it is well placed for
further investment when suitable conditions arise.
Our portfolio at a glance
Renewable energy generation
The bedrock of FGEN's portfolio in established income‑generating assets
focused on diversification across technologies to support the delivery of
attractive risk‑adjusted returns.
Renewable energy generation 71%
Wind 26%
Solar 12%
Anaerobic digestion - crop 15%
Anaerobic digestion - food waste 5%
Biomass 9%
Energy‑from‑waste 3%
Hydro 1%
Technologies(1):
Baseload generators:
• Anaerobic digestion
• Biomass
• Energy-from-waste
Intermittent generators:
• Wind
• Solar
• Hydro
Investment attractions:
• Government‑backed incentives across a range of mechanisms, including
ROCs, RHI and FITs
• Mature technologies with low operating risk and stable production
profiles
• Explicit and implicit inflation linkage
• Diversification of resource risk across different weather patterns,
forms of feedstock, and power and gas pricing
• Delivering a complementary mix of intermittent and baseload power
generation
Potential risks:
• UK government's proposed changes to the inflation indexation for RO
and FiT schemes
• Merchant electricity and gas prices
• Wind and solar resource
• Cost and supply of feedstock
• Operational issues
• REMA/regulatory change
Capacity
Asset Location Ownership (MW) Commercial operations date
Wind
Bilsthorpe England 100% 10.2 Mar 2013
Burton Wold Extension England 100% 14.4 Sep 2014
Carscreugh Scotland 100% 15.3 Jun 2014
Castle Pill Wales 100% 3.2 Oct 2009
Dungavel Scotland 100% 26.0 Oct 2015
Ferndale Wales 100% 6.4 Sep 2011
Hall Farm England 100% 24.6 Apr 2013
Llynfi Afan Wales 100% 24.0 Mar 2017
Moel Moelogan Wales 100% 14.3 Jan 2003 & Sep 2008
New Albion England 100% 14.4 Jan 2016
Wear Point Wales 100% 8.2 Jun 2014
Capacity
Asset Location Ownership (MW) Commercial operations date
Solar
Amber England 100% 9.8 Jul 2012
Branden England 100% 14.7 Jul 2013
CSGH England 100% 33.5 Mar 2014 & Mar 2015
Monksham England 100% 10.7 Mar 2014
Pylle Southern England 100% 5.0 Dec 2015
Anaerobic digestion: agricultural crop
Biogas Meden England 49% 5.0(1) Mar 2016
Egmere Energy England 49% 5.0(2) Nov 2014
Grange Farm England 49% 5.0(2) Sep 2014
Icknield Farm England 53% 5.0(1) Dec 2014
Merlin Renewables England 49% 5.0(2) Dec 2013
Peacehill Farm Scotland 49% 5.0(3) Dec 2015
Rainworth Energy England 100% 5.0(4) Sep 2016
Vulcan Renewables England 49% 5.0(2) Oct 2013
Warren Energy England 49% 5.0(2) Dec 2015
Anaerobic digestion: food waste
Codford Biogas waste management England 100% 3.8(4) 2014
Bio Collectors waste management England 100% 11.7(5) Dec 2013
Biomass
Cramlington biomass combined heat and power England 100% 32.0(6) 2018
Energy-from-waste
Energie Tecnologie Ambiente ("ETA") Italy 45%(7) 16.8 2012
Hydro
Northern Hydropower England 100% 2.0(8) Oct 2011 & Oct 2017
Yorkshire Hydropower England 100% 1.8(8) Oct 2015 & Nov 2016
Total 347.8
1. MWth (thermal) and an additional 0.4MWe CHP engine for on-site power
provision.
2. MWth (thermal) and an additional 0.5MWe CHP engine for on-site power
provision.
3. MWth (thermal) and an additional 0.25MWe CHP engine for on-site power
provision.
4. Electrical exporting plant measured as MWe.
5. 10MWth and an additional 1.7MWe capacity through two CHP engines.
6. 26MWe (electrical) and 6MWth (thermal).
7. Not including FEIP's 45% ownership. See page 26 of the Half-year 2025
report for a full list of FEIP investments.
8. Includes a 1.2MW battery storage.
Other energy infrastructure
Non-energy generating assets that support the transition towards net zero,
driven by increased demand for electrification and underpinned by
government-backed legislation. This segment includes our battery storage units
and our low‑carbon transport investment.
Other energy infrastructure 11%
Battery energy storage 5%
Low‑carbon transport 6%
Technologies(2):
• Battery Energy Storage Systems ("BESS")
• Low‑carbon transport
Investment attractions:
• Strong cash yield expected from sites once established
• Merchant revenues from the storage assets with a degree of inverse
correlation with renewable capture prices, alongside "sticky" revenues across
CNG
• Diversification of revenue sources away from power generation
• Capital growth potential
Potential risks:
• Construction risk
• Merchant nature of trading revenue streams
• Evolving market and increased competition
• Shorter track record of operations than for other technologies
Capacity
Asset Location Ownership (MW) Commercial operations date
Battery energy storage
West Gourdie battery storage Scotland 100% 50 May 2023
Clayfords battery storage Scotland 50% 50 Pre-construction
Sandridge battery storage England 50% 50 Construction complete
Low‑carbon transport
CNG Fuels England Minority stake(1.) n/a Various
1. FGEN holds 25% of CNG Foresight Holdings Ltd, which owns 60% of the
shares in CNG Fuels Ltd and holds £150.15 million in 10% preferred return
investments issued by CNG Fuels.
Sustainable resource management
Sustainable resource management means using resources with the future in mind.
It involves applying sustainable practices to ensure that resources benefit
both current and future generations. This includes areas such as waste and
wastewater concessions, as well as controlled environments for agriculture and
aquaculture.
Sustainable resource management 18%
Controlled environment 12%
Waste and wastewater concessions 6%
Technologies(1):
Controlled environment - agriculture and aquaculture
Waste and water management
Investment attractions:
• Concession-based projects benefit from inflation-linked long-term
contracts with public-sector counterparties
• Controlled environment investments in well‑established technologies
with large revenue markets
• Potential for capital growth across Rjukan and The Glasshouse
• Diversification of revenue sources away from power generation
Potential risks:
• Merchant revenues and operational ramp‑up at Rjukan and The
Glasshouse
• Handback risk at end of ELWA and Tay concessions
Capacity
Asset Location Ownership (MW) Commercial operations date
Controlled environment
Glasshouse England 10% n/a March 2025
Rjukan aquaculture system Norway 25% n/a Construction largely complete
Waste and wastewater concessions
ELWA waste management England 80%(2) n/a 2006
Tay wastewater treatment Scotland 33% n/a Nov 2001
1. Excludes FEIP. See page 26 of the Half-year 2025 report for a full list
of FEIP assets.
2. 80% of ordinary share capital plus 100% of outstanding loan notes.
Investment portfolio and valuation
Investment portfolio
Diversification is a key factor for the Company, reducing dependency on a
single market, technology type or set of climatic conditions, whilst giving
exposure to a wide opportunity set, as illustrated in the analysis below at 30
September 2025, according to share of portfolio value:
Sector split
Wind 26%
Anaerobic digestion - crop 15%
Solar 12%
Controlled environment 12%
Biomass 9%
Waste and wastewater concessions 6%
Low‑carbon transport 6%
Anaerobic digestion - food waste 5%
Energy storage 5%
Energy‑from‑waste 3%
Hydro 1%
Geography
UK 88%
Rest of Europe 12%
Remaining asset life
Up to 10 years 24%
11 to 20 years 49%
More than 20 years 27%
Weighted average remaining asset life of the portfolio is 16.2 years.
Operational status
Operational 97%
Construction 3%
Operator exposure
SGRE 16%
Future Biogas 10%
BWSC 9%
Brighter Green Engineering 7%
Hima Seafood AS 7%
Other 51%
Asset concentration
Cramlington (biomass) 9%
Rjukan (CE aq) 7%
CNG Fuels (low-carbon transport) 6%
Glasshouse (CE ag) 5%
Amber (solar) 5%
Top 6-10 22%
Other 46%
Valuation method
Discounted cash flow ("DCF") 97%
Cost 3%
Portfolio valuation
The Investment Manager is responsible for carrying out the fair market
valuation of the Company's investments, which is then presented to the
Directors for their approval and adoption. The valuation is carried out on a
quarterly basis as at 30 June, 30 September, 31 December and 31 March each
year.
The valuation is predominantly based on a discounted cash flow analysis of the
future expected equity and loan note cash flows accruing to the Group from
each operational portfolio investment. Where assets are under construction or
not yet operational, they are valued at cost until such time as the risks
associated with construction have substantially passed. For some technologies
with more complex construction activities, this will be when the asset reaches
the start of commercial operations, while for others this may be during
late-stage construction.
CNG Fuels
Since the corporate restructuring of CNG Fuels announced on 20 March 2025, the
Investment Manager has included within the DCF valuation an assumption of a
future exit of FGEN's ownership in 2028. The exit proceeds are based on a
multiple of EBITDA, informed by transactional evidence and benchmarked against
alternative valuation approaches. There has been no change to either the
valuation methodology or assumed exit multiple since this approach was
adopted, with transactional evidence continuing to indicate this remains
appropriate.
The portfolio valuation uses key assumptions which are recommended by
Foresight using its experience and judgement, having considered available
comparable market transactions and financial market data in order to arrive at
a fair market value. An independent verification exercise of the methodology
and assumptions applied by Foresight is performed by a leading accountancy
firm and an opinion is provided to the Directors. The Directors have satisfied
themselves as to the methodology used and the assumptions adopted and have
approved the valuation.
The Directors' valuation of the portfolio at 30 September 2025 was £751.9
million, compared to £765.7 million at 31 March 2025, as shown in the table
below. The decrease of £13.8 million is the net impact of divestments, new
acquisitions, cash received from investments, changes in macroeconomic, power
price and discount rate assumptions, and underlying growth in the portfolio. A
reconciliation of the factors contributing to the change in the portfolio and
the movement in value of investments during the six months ended 30 September
2025 is shown in the table below:
30 Sep 2025 £m 31 Mar 2025 £m
Valuation of the portfolio at opening balance 765.7 891.9
Acquisitions in the period (including follow-on investments) 7.9 30.7
Divestments (1.2) (89.1)
Cash distributions from the portfolio (39.7) (90.4)
Rebased opening valuation of the portfolio 732.7 743.1
Changes in forecast power prices (6.5) 8.8
Changes in economic assumptions 4.6 1.7
Changes in discount rates - -
Changes in exchange rates 1.5 (0.9)
Balance of portfolio return 19.6 13.0
Valuation of the portfolio 751.9 765.7
Fair value of the intermediate holding companies (97.4) (87.5)
Investments at fair value through profit of loss 654.5 678.2
Allowing for investments of £7.9 million (including follow-on investments and
payment of deferred consideration), divestments of £1.2 million and cash
receipts from investments of £39.7 million, the rebased valuation is £732.7
million. The portfolio valuation at 30 September 2025 is £751.9 million (31
March 2025: £765.7 million), representing an increase over the rebased
valuation of 2.6% during the period.
Valuation assumptions
Each movement between the rebased valuation and the 30 September 2025
valuation is considered below:
Forecast power prices
The project cash flows used in the portfolio valuation at 30 September 2025
reflect contractual fixed price arrangements under PPAs, where they exist, and
short‑term market forward prices for the next two years where they do not.
After the initial two-year period, the project cash flows assume future
electricity and gas prices in line with a blended curve informed by the
central forecasts from three established market consultants, adjusted by the
Investment Manager for project-specific arrangements and price
cannibalisation.
For the Italian investment, project cash flows assume future electricity
prices informed by a leading independent market consultant's long‑term
projections.
The overall change in forecasts for future electricity and gas prices compared
to forecasts at 31 March 2025, net of the Electricity Generator Levy ("EGL"),
has resulted in a reduction in the valuation of the portfolio by £6.5
million.
The graph on the right represents the blended weighted power curve used by the
Company, reflecting the forecast of three leading market consultants, adjusted
by the Investment Manager to reflect its judgement of capture discounts and a
normalised view across the portfolio of expectations of future price
cannibalisation resulting from increased penetration of low marginal cost,
intermittent generators on the GB network. The solid line represents the
weighted average realised price forecast - including short-term price fixes
under PPAs - whereas the dotted line shows the equivalent merchant price for
unhedged generation.
Illustrative blended power price curve
Guarantees of origin certificates
As the portfolio includes a number of renewable energy generation projects, it
is able to generate revenue from the sale of Renewable Energy Certificates in
addition to income from the sale of gas and electricity. A certificate is
issued by Ofgem or the Green Gas Certification Scheme for each unit of
renewable electricity or gas generated respectively, and can be sold as part
of, or separately from, the offtake contracts in place for the wholesale
electricity and/ or gas. The certificates received for UK projects are
Renewable Energy Guarantee of Origin ("REGO") and Renewable Gas Guarantee of
Origin ("RGGO") for electricity and gas, respectively. Being traded on the
open market, the price is variable and subject to typical demand and supply
dynamics.
As with forecast power prices, valuations reflect contractual fixed price
arrangements where they exist, or the following assumptions informed by
forecasts provided from a range of independent market consultants where they
do not:
Year 2025-27 2028-30 2031+
REGO £2/MWh £1/MWh £1/MWh
RGGO £9.3/MWh £9/MWh £9/MWh
Following a period of lower pricing in REGO markets in recent months, modelled
assumptions have been reduced by the Investment Manager, whereas demand for
RGGO certificates continues to remain strong, with pricing supporting a slight
increase in near-term valuation assumptions. The net result of changes is a
decrease in valuation of £4.5 million, equivalent to 0.7 pence per share.
Revenue analysis
The graph below shows the way in which the revenue mix of the portfolio
changes over time for future financial years, given the assumptions made
regarding future power prices set out on the previous page. As expected, the
proportion of merchant revenues increases in later years as the subsidies that
projects currently benefit from expire.
On a net present value ("NPV") basis (using the discount rate applicable to
each project), the relative significance of each revenue category illustrated
above is as follows:
Revenue NPV
7% Subsidy: Feed-in Tariff
17% Subsidy: ROC
12% Subsidy: Renewable Heat Incentive
24% Merchant power
8% Long-term contracts
2% Flexible generation
14% Green certificates
16% Other merchant revenues
Subsidy revenues, long-term contracts and revenues generated from gas
dispensed under contract at CNG Fuels that sit within other merchant revenues
in the pie chart, all retain contractual inflation linkage, leading to 51% of
total revenues featuring contractual inflation linkage.
Renewable generation portfolio
FGEN's renewable energy generation portfolio includes a combination of
intermittent generating wind and solar investments, alongside baseload
generating anaerobic digestion, biomass, energy-from-waste ("EfW") and
hydropower investments. Revenues in these projects typically consist of a
combination of government-backed inflation-linked subsidies, short-term price
fixes contracted under a PPA/GPA, merchant revenue or other revenues such as
those earned from private wire contracts.
The Company seeks to minimise the impact of power price volatility through its
carefully constructed portfolio of diversified asset types, as well as by
maintaining a programme of rolling price fixes for energy it generates,
typically having the majority of projects on fixed price arrangements over the
near term.
See the power price hedging section in the operational review on page 39 for
more detail about the price fixes in place across the portfolio at the year
end.
Taking the proportion of merchant revenues hedged under fixed price
short‑term PPAs, along with subsidy revenues and revenues from long-term
contracts outside of the energy generating assets, 66% of total revenues have
fixed prices for the 2026 calendar year. Accordingly merchant revenues remain
a low proportion and reflect the broader diversification of FGEN's portfolio.
Other energy infrastructure
Mitigating the effects of climate change stimulates not only opportunities
connected to energy generation, but also in supporting and enabling energy
infrastructure where significant investment is needed to further decarbonise
the economy. This is reflected in FGEN's diversified portfolio, which includes
grid-scale batteries and low‑carbon refuelling alternatives for heavy goods
vehicles.
Batteries
FGEN's portfolio includes one operational and two c.50MW Battery Energy
Storage Systems ("BESS") at varying stages of construction at 31 March 2025.
Revenues for BESS assets can be generated through multiple channels, although
third-party consultants continue to highlight the importance of prioritising
the capture of trading margins over the more limited opportunities from grid
service revenues. As a result, merchant revenues are expected to form the
largest component of the revenue model for these assets.
While the sector does not currently benefit from long-term contractual
inflation linkage, revenues are typically driven by a margin over costs, which
is expected to be sustained regardless of inflationary pressures.
Low-carbon transport
In the case of FGEN's investment into CNG Fuels, an integrated business owning
and operating CNG refuelling stations that also sources biomethane for those
stations and generates Renewable Transport Fuel Certificates ("RTFCs") in the
process, revenues are generated from CNG dispensed and trading activity in
biomethane and RTFCs.
Per the terms of its fuel supply contracts, CNG Fuels reserves the right to
revise pricing to reflect changes in the wholesale price of natural gas and
fuel duty, and will annually adjust prices (upwards only) in line with CPI
inflation. Trading revenues flow from the buying and selling of biomethane
across European markets and the sale of RTFCs created by the use of biomethane
as a transport fuel.
Sustainable resource management
Sustainable resource management means using resources with the future in mind.
It involves applying sustainable practices to ensure that resources benefit
both current and future generations. This includes areas such as waste and
wastewater treatment, as well as controlled environment for agriculture and
aquaculture.
Waste and wastewater treatment
This category currently consists of concessions structured under the Private
Finance Initiative ("PFI")/Public Private Partnership ("PPP") procurement
models where concession payments from the public-sector client are highly
predictable.
Controlled environment
Controlled environment ("CE") projects typically face a greater level of
market risk than environmental infrastructure projects with subsidy support or
with long-term contracts. Therefore, the Company has only invested in projects
that enjoy a privileged market position over competitors, for example due to
physical location, technology or product differentiation.
In the case of FGEN's Glasshouse, the investment is primarily provision of a
senior secured shareholder loan that was used to construct the Glasshouse
itself, with potential for further uplift from the Company's minority equity
investment over time as the business's operations reach maturity. The
Glasshouse is co-located with an existing FGEN anaerobic digestion facility,
which itself will receive an additional source of revenue via a private wire
supplying low-carbon heat and power to the Glasshouse. In the future, wastage
from the Glasshouse produce may also be returned to the AD digester, creating
a circular ecosystem. For more information on the Glasshouse, see the asset
spotlight on page 34 of the Half-year report 2025.
In the case of CE Rjukan, revenues will primarily be generated from the
production and sale of approximately 8,000 tonnes of trout annually, once the
site is fully ramped up into 2027. This will be sold to European and
international salmonid markets through an agreement with an established
Norwegian seafood distribution company with global reach.
The Rjukan investment case is built on the premise of achieving average
historic prices evidenced by the Fish Pool Index; however, our experienced
operational partner is targeting sales at levels between c.5% and 50% higher
than this, reflecting the higher quality of fish production at Rjukan versus
the typical fish sold in commodity-based markets.
Whilst these investments do not currently have long-term contractual inflation
linkage, the projects retain pricing power and are expected to increase prices
to maintain margins as the underlying cost base inflates. For more information
on Rjukan, see the asset spotlight on page 35 of the Half-year report 2025.
The degree of contractual inflation linkage of each category illustrated above
is as follows:
The Company's diversification strategy ensures the portfolio benefits from a
significant proportion of contracted revenues and revenues earned by
non-energy generating assets. Under current forecasts, dividend cover is
expected to be healthily covered for the years ahead.
Useful economic lives
Useful economic lives of assets are based on the Investment Manager's
estimates of the period over which the assets will generate revenue and are
periodically reviewed for continued appropriateness. The assumption used for
the useful life of investments is the lower of lease duration and 35 years for
solar assets, 30 years for wind farms and 20 years for anaerobic digestion
facilities - being the life of the RHI subsidy, after which point the
Investment Manager conservatively assumes that facilities will cease to
operate.
In light of growing evidence to suggest AD facilities may be able to
successfully operate for longer durations, the Investment Manager has provided
a sensitivity on page 26 of the Half-year report 2025 to illustrate the
potential impact on extending the lives of FGEN's AD investments.
Economic assumptions
The valuation reflects an update in inflation assumptions based on a
combination of actual historic inflation and recent independent economic
forecasts.
Valuation assumptions for operational assets are set out below:
Economic assumptions used in the portfolio valuation
Country Assumption 30 September 2025 31 March 2025
UK RPI inflation rate 2025: 4.0% 2026: 3.5% 2027-2030: 3.0% 2031+: 2.25% 2025: 3.5% 2026-2030: 3.0% 2031+: 2.25%
CPI inflation rate 2025: 2.75% 2026+: 2.25% 2025: 2.75% 2026+: 2.25%
Deposit rate 2.0% 2.0%
Corporate tax rate 25% 25%
Italy Inflation rate 2.0% 2.0%
Deposit rate 0% 0%
Corporate tax rate (IRES) 24% 24%
Regional tax rate (IRAP) 4.8% 4.8%
Norway Inflation rate 2.0% n/a
Deposit rate 1.2% n/a
Corporate tax rate 22% n/a
The euro/sterling exchange rate used to value euro-denominated investments was
€1.15/£1 and the rate for Norwegian krone-denominated investments was
NOK13.39/£1 at 30 September 2025 (€1.19/£1 and NOK13.55/£1 at 31 March
2025).
The total net increase in value resulting from changes to inflation rates,
deposit rates and foreign exchange rates in the year is £6.1 million.
Discount rates
The discount rates used in the valuation exercise represent 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 rates are
reviewed on a regular basis and updated to reflect changes in the market and
in the project risk characteristics.
UK gilt yields have softened in recent weeks but remain at elevated levels
consistent to those prevalent at the start of the year and market benchmarks
continues to indicate support for the Company's valuation assumptions;
therefore, no changes have been made to discount rates during the period.
In addition to macro-driven changes, the Investment Manager also considers
project-specific changes - such as the completion of major milestones on
construction phase investments. Whilst progress continues at these projects,
no changes have been made to discount rates this period.
Taking the above into account and including an increase in the value of assets
in construction, the overall weighted average discount rate ("WADR") of the
portfolio is 10.1% at 30 September 2025 (31 March 2025: 9.7%).
The WADR applied to each of the principal operational sectors within the
portfolio is displayed in the following table, noting this represents a blend
of levered and unlevered investments and therefore the relevant gearing of
each sector is also shown.
Unlevered discount rate Levered discount rate Sector WADRs Gearing
Wind 8.0% 8.8% 8.7% 37%
Solar 7.2% 8.0% 7.4% 20%
Anaerobic digestion - crop fed 8.6% - 8.6% -
Anaerobic digestion - food waste 9.8% - 9.8% -
Biomass 10.3% - 10.3% -
Energy-from-waste 10.0% - 10.0% -
Hydropower - 8.0% 8.0% 45%
Waste and wastewater concessions - 8.9% 8.9% 20%
Battery storage 10.3% - 10.3% -
Weighted average 10.1% 18.1%
Sectors in which the Investment Manager retains proprietary information, such
as controlled environment and low-carbon transport, are not disclosed in the
table above, although discount rates used in these sectors feed into the
portfolio WADR of 10.1%.
As in previous valuations, the discount rate used for energy generating asset
cash flows which have received lease extensions beyond the initial investment
period of 25 years retains a premium of 1% for subsequent years, reflecting
the merchant risk of the expected cash flows beyond the initial 25-year
period.
No changes have been made to discount rates during this period, therefore the
overall change in value resulting from changes to discount rates in the year
is £nil.
Balance of portfolio return
This represents the balance of valuation movements in the year, excluding the
factors noted above. The balance of the portfolio return mostly reflects the
impact on the rebased portfolio value, all other measures remaining constant,
of the effect of the discount rate unwinding and also some additional
valuation adjustments from updates to individual project assumptions. The
total represents an uplift of £19.6 million.
Of this, the key positive items are the uplift of £31.0 million from discount
rate unwind and a £3.3 million uplift from the signing of new gas injection
contracts at the Company's Vulcan Renewables anaerobic digestion facility,
following the successful completion of phase one of two operational
enhancement initiatives underway to maximise the untapped potential of the gas
injection capabilities of the site.
In addition to this, the Company's growth assets continue to make progress -
in particular at CNG Fuels where volumes of fuel dispensed (+15%), number of
vehicles fuelled daily (+18%) and average RTFC pricing (+21%) are all
significantly higher this September compared to the same month last year.
Positive developments at CNG Fuels have contributed to a £2.2 million
valuation uplift for the investment.
The Rjukan aquaculture facility in Norway carried out its first trout
harvests, achieving a key milestone as the asset enters the early phases of
operations. Following this development, the investment has been moved from
cost to DCF, resulting in a modest increase in valuation of £2.9 million.
Offsetting these positive movements were a reduction in the value of green
certificates discussed earlier and that led to a reduction in value of £4.5
million, as well as extended periods of downtime and additional capex
requirements at the Company's biomass and energy-from-waste facilities,
resulting in £3.0 million and £5.0 million valuation reductions
respectively.
In terms of operational performance, a period of low wind in April and May was
partially recovered by improved speeds in subsequent months, with the
resulting under-performance largely offset by another strong period of
production from the Company's crop-based anaerobic digestion facilities -
meaning that the underlying assets remain highly cash generative and remain on
track to maintain or slightly improve the 1.22x dividend cover achieved over
the first six months of the year.
Valuation sensitivities
The Net Asset Value ("NAV") of the Company is the sum of the discounted value
of the future cash flows of the underlying asset financial models,
construction and development spend, the cash balances of the Company and UK
HoldCo, and the other assets and liabilities of the Group less Group debt.
The portfolio valuation is the largest component of the NAV and the key
sensitivities are considered to be the discount rate applied in the valuation
of future cash flows and the principal assumptions used in respect of future
revenues and costs.
A broad range of assumptions is used in our valuation models. These
assumptions are based on long‑term forecasts and are not affected by
short‑term fluctuations in inputs, whether economic or technical. The
Investment Manager exercises its judgement in assessing both the expected
future cash flows from each investment based on the project's life and the
financial models produced for each project company and the appropriate
discount rate to apply.
The key assumptions are as follows:
Discount rate
The WADR of the portfolio at 30 September 2025 was 10.1% (31 March 2025:
9.7%). A variance of plus or minus 0.5% is considered to be a reasonable range
of alternative assumptions for discount rates.
An increase in the discount rate of 0.5% would result in a downward movement
in the portfolio valuation of £18.2 million (2.9 pence per share) compared to
an uplift in value of £19.4 million (3.1 pence per share) if discount rates
were reduced by the same amount.
Volumes
Base case forecasts for intermittent renewable energy projects assume a "P50"
level of electricity output based on reports by technical consultants. The P50
output is the estimated annual amount of electricity generation (in MWh) that
has a 50% probability of being exceeded - both in any single year and over the
long term - and a 50% probability of being underachieved. Hence the P50 is the
expected level of generation over the long term.
The P90 (90% probability of exceedance over a 10‑year period) and P10 (10%
probability of exceedance over a 10‑year period) sensitivities reflect the
future variability of wind, hydropower and solar irradiation and the
uncertainty associated with the long‑term data source being representative
of the long‑term mean.
Separate P10 and P90 sensitivities are determined for each asset and
historically the results are presented on the basis that they are applied in
full to all wind, hydro and solar assets. This implies individual project
uncertainties are completely dependent on one another; however, a portfolio
uncertainty benefit analysis performed by a third-party technical adviser
identified a positive portfolio effect from investing in a diversified asset
base.
That is to say that the lack of correlation between wind, hydro and solar
variability means P10 and P90 sensitivity results should be considered
independent. Therefore, whilst the overall P90 sensitivity decreases NAV by
5.0 pence, the impact from wind, solar and hydro separately is 3.6 pence per
share, 1.2 pence per share and 0.2 pence per share respectively, as shown in
the chart on page 26 of the Half-year report 2025.
Anaerobic digestion facilities do not suffer from similar deviations as their
feedstock input volumes (and consequently biogas production) are controlled by
the site operator.
Biomass and EfW forecasts are based on projections of future input volumes and
are informed by both forecasts and independent studies where appropriate.
Revenues in the PPP projects are not sensitive generally to changes in volumes
due to the nature of their payment mechanisms.
Electricity and gas prices
Electricity and gas price assumptions are based on the following: for the
first two years, cash flows for each project use forward electricity and gas
prices based on market rates unless a contractual fixed price exists, in which
case the model reflects the fixed price followed by the forward price for the
remainder of the two‑year period. For the remainder of the project life, a
long‑term blend of central case forecasts from three established market
consultants and other relevant information is used, and adjusted by the
Investment Manager for project‑specific arrangements and price
cannibalisation.
The sensitivity assumes a 10% increase or decrease in power prices relative to
the base case for each year of the asset life after the first two‑year
period. While power markets can experience movements in excess of +/-10% on a
short‑term basis, as has been the case recently, 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. The Directors feel that
+/-10% remains a realistic range of outcomes over this very long time horizon,
notwithstanding that significant movements will occur from time to time.
An increase in electricity and gas prices of 10% would result in an uplift in
the portfolio valuation of £33.8 million (5.4 pence per share) compared to a
downward movement in value of £33.1 million (5.3 pence per share) if prices
were reduced by the same amount.
Assuming all other factors remain constant, if electricity prices were to fall
to £50/MWh, with a corresponding decline in gas prices, the Company would
continue to maintain a resilient level of dividend cover over the next three
financial years. Even in a more conservative scenario, where prices fall to
£40/MWh, the portfolio is still expected to generate sufficient cash flows to
cover the dividend, though with a reduced margin of headroom.
Useful economic lives
In line with FGEN's original investment case for anaerobic digestion, the
Company continues to apply the conservative valuation assumption that
facilities will simply cease to operate beyond the life of their RHI tariff.
In recent periods, the Investment Manager has seen a growing case of evidence,
including several transactional datapoints, pointing towards a positive change
in market sentiment for valuing these assets - including the potential to run
anaerobic digestion facilities on an unsubsidised basis and into perpetuity -
recognising the scarcity and valuable nature of UK green gas.
In light of this evidence, the Investment Manager has modelled potential
avenues to extend the lives of its AD portfolio; expecting that revenues will
be derived through a combination of corporate offtake, green certificates
(such as RTFCs) and potentially a lower level of government support mechanism.
On this basis, the Investment Manager considers a realistic result would be to
provide a value uplift of between £10 million to £20 million (1.6 to 3.2
pence per share) and to significantly extend the weighted average life of the
Company.
The UK government is currently developing a future policy framework for
biomethane production, and these sensitivities will be refined as more
information is released.
Uncontracted revenues on non-energy generating portfolio
Non-energy generating assets, such as batteries and controlled environment
agriculture and aquaculture, are not materially affected by either scarcity of
natural resource or power price markets. Therefore, the Investment Manager has
presented an alternative sensitivity illustrating an assumed 10% increase or
decrease on all uncontracted revenues for each year of the asset lives.
An increase in uncontracted revenues of 10% would result in an upward movement
in the portfolio valuation of £18.0 million (2.9 pence per share) compared to
a decrease in value of £18.0 million (2.9 pence per share) if those revenues
were reduced by the same amount.
Feedstock prices
Feedstock accounts for over half of the operating costs of running an AD
plant. As feedstocks used for AD are predominantly crops grown within existing
farming rotation, they are exposed to the same growing risks as any
agricultural product. The sensitivity assumes a 10% increase or decrease in
feedstock prices relative to the base case for each year of the asset life.
An increase in the feedstock prices of 10% would result in a downward movement
in the portfolio valuation of £7.1 million (1.1 pence per share) compared to
an uplift in value of £7.4 million (1.2 pence per share) if prices were
reduced by the same amount.
No such sensitivity is applicable to FGEN's biomass investment, where fuel
costs are tied under long-term contracts.
Inflation
Most projects in the portfolio receive a revenue stream which is either fully
or partially inflation‑linked. The inflation assumptions are described in
the macroeconomic section on page 21 of the Half-year report 2025. The
sensitivity assumes a 0.5% increase or decrease in inflation relative to the
base case for each year of the asset life.
An increase in the inflation rates of 0.5% would result in an uplift in the
portfolio valuation of £14.1 million (2.3 pence per share) compared to a
decrease in value of £13.3 million (2.1 pence per share) if rates were
reduced by the same amount.
Government consultation on ROC/FiT indexation
On 31 October 2025, the UK's Department for Energy Security and Net Zero
("DESNZ") published a consultation exploring proposed changes to the inflation
indexation of the Renewable Obligation ("RO") and Feed-in Tariffs ("FiTs")
schemes. The consultation outlines two potential approaches:
1. To bring forward the date on which the inflation index for these
arrangements moves from RPI to CPI from 2030 to 2026.
2. Temporarily freeze existing RO and FiT pricing until CPI inflation catches
up with RPI, which is estimated to occur around 2034/35. After which, CPI
indexation would apply.
Consistent with the Company's announcement on 14 November 2025, the Investment
Manager has modelled each scenario and estimated the following potential
impact on the Company's NAV per share:
· Option 1: Estimated NAV reduction of 0.5 pence per share (0.5% of NAV)
· Option 2: Estimated NAV reduction of 6.6 pence per share (6.3% of NAV)
Estimates are based on currently available information and may evolve as the
consultation progresses.
Alongside consideration of the impact on NAV per share, the Investment Manager
has also concluded that there would be no material impact on near-term
dividend cover from either scenario.
Euro/sterling and NOK/sterling exchange rates
The proportion of the portfolio assets with cash flows denominated in foreign
currency represents 12% of the portfolio value at 30 September 2025. If
foreign currency strengthens by 5%, the value uplift will be £4.7 million
(0.8 pence per share) compared to a £4.5 million (0.7 pence per share)
decrease in value if FX weakens by the same amount.
Corporation tax
The UK corporation tax assumptions applied in the portfolio valuation are
outlined in the notes to the accounts on page 65 of the Half-year report 2025.
The sensitivity below assumes a 2% increase or decrease in the rate of UK
corporation tax relative to the base case for each year of the asset life.
An increase in the UK corporation tax rate of 2% would result in a downward
movement in the portfolio valuation of £12.5 million (2.0 pence per share)
compared to an uplift in value of £13.1 million (2.1 pence per share) if
rates were reduced by the same amount.
Sensitivities - impact on NAV at 30 September 2025
The following chart shows the impact of the key sensitivities on NAV per
share, with the £ labels indicating the impact of the sensitivities on
portfolio value.
FEIP investment portfolio
Below is a list of investments into several European opportunities through the
Company's co‑investment in Foresight Energy Infrastructure Partners
("FEIP").
Asset Location Capacity (MW) Commercial operations date
FEIP: FGEN has committed €25 million to FEIP
Avalon solar and green hydrogen Spain 137MWp Development
Carna pumped storage hydro and co‑located wind Scotland 210MW Under construction
Consortium solar Greece 267MW Under construction
ETA Manfredonia EfW Italy 16.8MW 2012
Inca pumped storage hydro Ireland 300MW Development
Kölvallen wind Sweden 277MW Under construction
MaresConnect interconnector Republic of Ireland 750MW Development and under construction
Puskakorpi wind Finland 88MW Dec 2022
Quartz battery storage England 106.5MW Development
Skaftåsen Vindkraft AB wind Sweden 231MW June 2023
Torozos wind Spain 93.5MW Dec 2019
85 Degrees geothermal heat Netherlands 53MW Operational/under construction
Beleolico offshore wind Italy 30MW July 2022
Blue Jay battery storage Scotland 99.3MW Development and under construction
Operational review
Investment performance
The NAV per share at 30 September 2025 was 104.7 pence, down from 106.5 pence
at 31 March 2025.
FGEN has announced an interim dividend of 1.99 pence per share for the quarter
ended 30 September 2025, payable on 30 December 2025, in line with the
full‑year target of 7.96 pence per share for the year ended 31 March 2026 as
set out in the Annual Report 2025.
Financial performance
The Company's operating assets delivered strong cash earnings of £39.7
million (30 September 2024: £46.6 million) in the period, driving a dividend
cover of 1.22x, down from 1.32x in the comparable period, reflecting the lower
power price environment.
The chart on page 27 in the Half-year report 2025 shows the budgeted
proportion of cash distributions forecast to be received from underlying
investments at the start of the financial year, versus the relative
sector-level over or under-performance against this target during the period
under review.
The 12.9% under‑performance versus budget is largely attributable to timing
differences at our wind portfolio that are expected to be recovered in the
next distribution cycle in December, and our Vulcan AD facility that will be
caught up before year end. Once those are taken into account, actual
performance would have been 2.2% ahead of budget.
See page 28 in the Half-year report 2025 for the equivalent chart showing
generation performance of the energy generating assets versus budget.
Across the portfolio companies, total revenue generated was £103.2 million
and total EBITDA was £29.1 million. The Company operates a diversified
portfolio of assets across multiple sectors which supports diversification of
the operating risk profile across the portfolio - with both revenues and
corresponding margins varying based on the underlying operations of each. For
example, wind and solar assets generate electricity through the use of a free
natural resource and therefore typically have a lower cost base than an
anaerobic digestion facility, which requires a feedstock as part of its energy
generation process. To compensate, these anaerobic digestion facilities will
also typically have a higher revenue base - as can be seen by the average
all-in energy price table to the right. More information on sector-level
performance and relative margins will be provided within the Annual Report
2026.
Financial performance: budget vs actual project distributions
The average all-in price received by the differing technology classes in the
UK for their energy volumes generated in the six months ended 30 September
2025 is shown in the table below:
Average all‑in energy price Six months ended 30 Sep 2025 Year ended 31 Mar 2025
Wind £141 per MWhe £201per MWhe
AD electric £261 per MWhe £262 per MWhe
AD gas-to-grid £149 per MWhth £152 per MWhth
Biomass £169 per MWhe £184 per MWhe
Energy-from-waste €126 per MWhe €133 per MWhe
Solar £235 per MWhe £313 per MWhe
Hydro £337 per MWhe £295 per MWhe
Operational performance
Overall, the underlying operating performance of the environmental
infrastructure portfolio was pleasing. The renewables segment of the portfolio
produced 556GWh (30 September 2024: 619GWh) of green energy, 5.2% below the
generation target. When expected compensation (insurance and warranty claims)
is taken into consideration, the equivalent portfolio generation was 590GWh,
0.5% above the target for the period.
Renewable energy generation
Power price hedging
FGEN's exposure to wholesale power prices is mitigated by the practice of
having a substantial proportion of generation for both electricity and gas on
fixed price arrangements for durations ranging from six months out to two
years. The extent of generation subject to fixes at 30 September 2025 is as
follows:
Winter 2025 Summer 2026 Winter 2026 Summer 2027
Wind 87% 29% 33% 19%
Solar 54% 54% 100% -
Biomass - - - -
Energy-from-waste 41% - - -
AD - electric 100% 92% 83% -
AD - gas 78% 26% 17% 14%
Weighted average 63% 24% 25% 11%
The Investment Manager continues to monitor the market for longer-dated
opportunities to fix prices to mitigate risk across the portfolio, but
currently sees greater value in maintaining a higher-than-usual proportion of
unfixed positions as prices stabilise.
Notable developments in the period include a new value-accretive corporate
offtake PPA at our 24MW Llynfi Afan wind farm in Wales. The site has agreed a
five-year contract at £73.50 per MWh until 2030, an increase of c.10% over
the average day-ahead price across September.
Renewable energy: 556.3GWh generated, 0.5% above budget(1)
Baseload generators
Anaerobic digestion - crop
The crop-based anaerobic digestion portfolio is the largest producer of energy
on a GWh basis and generated 48% of the energy produced by the FGEN portfolio.
Gas generation (measured in GWh thermal) was 267GWh(2), 7.4% ahead of target
(2025 variance was 0.1% favourable).
Seven of the nine plants were at or outperformed their generation targets,
notably Vulcan Renewables and Icknield Gas were >20% above their generation
targets. Peacehill's negative variance (-16%) was due to the planned degrit of
one of its digesters in September, while a compressor motor failure at Biogas
Meden resulted in it finishing the period 9% below its target.
The Pressure Reduction System ("PRS") that underpins the Gas Shipping value
enhancement initiative at Vulcan Renewables has successfully ramped up
operations in the period and as of 30 September has injected 16.5GWh
biomethane into the grid, with further growth targeted in the coming months as
injection ramps up.
All anaerobic digestion plants have had access to sufficient feedstock
throughout the year. Promising dry matter percentages were recorded in the
recent maize harvest while overall yields were low in some regions. The
various asset operators have already progressed with sourcing additional maize
in order to fill any shortfall.
Wholesale gas and power prices in the period peaked in June 2025 following
political tensions in the Middle East and supply constraints across Europe.
Since this point, prices have gradually declined. The Investment Manager has
taken the opportunity to hedge 75%+ of the gas grid capacity for winter 2025,
while opportunities to hedge in summer and winter 2026 are being monitored, as
seen in the table on page ● .
1. 0.5% above budget including anticipated compensation. 5.2% below budget
excluding compensation.
2. When FGEN's ownership percentage is taken into account, the generation by
the AD portfolio was 136GWh, 7.4% above the sector target.
Anaerobic digestion - food waste
The food waste anaerobic digestion portfolio has carried out a significant
amount of life cycle maintenance work in the reporting period with two
digesters successfully degritted at Riverside Bio and one at Codford Biogas.
In addition, the pre-treatment line at the latter site was successfully
upgraded to provide greater redundancy and efficiency.
The portfolio generated 39GWh, this was 7.7% below target. Despite the failure
of a CHP engine shafts in June 25, resulting in a four-week, unplanned
shutdown, Codford finished the period on budget. When the insurance claim is
for this downtime is considered, this asset would be 12% above budget.
Riverside Bio was 11% below target primarily due to a digester roof issue in
September requiring a ramp down in operations.
Biomass
Cramlington generated 46GWh representing 8% of the total energy generated by
the portfolio. This was 44.3% below target. The primary reason for this
variance was a six week extension of a planned outage in July; a liquidated
damages claim with the O&M contractor is progressing, with the shortfall
reducing to 9.5% once the minimum expected compensations are received.
Key operational initiatives delivered in the period include the acquisition of
previously leased land adjacent to the facility, to be used for storing fuel -
further derisking storage.
Energy-from-waste
As expected at the start of the year, ETA continued to be offline throughout
the reporting period following damage to the turbine alternator experienced in
early April 2025, which is believed to have been caused by a short circuit.
The majority of the repairs were complete by the end of September and the
plant resumed operations two weeks ahead of schedule in October, before
running at good performance levels for the rest of the month. An insurance
claim for the event is ongoing.
Intermittent generators
Wind
The wind portfolio generated 151GWh, representing 27% of the total energy
produced by the portfolio - and was 6.5% below target.
Gross availability across the portfolio was <1% below the targeted levels
demonstrating a marked improvement in asset uptime (4.6% below in FY25),
therefore the main driver for the negative variance in production was low wind
resource in the period. Although national wind speeds continue to sit below
long term averages, they were 3% above average compared to the past five years
- potentially giving positive signs of a shift in weather patterns. This will
continue to be monitored by the Investment Manager. When estimated
compensation (insurance and warranty claims) is taken into consideration, the
equivalent wind generation for the half year was 154GWh, 4.9% below the
target.
The average power price realised for the wind assets was 140% above the
average variable price compared to FY25 due to the high level of fixes in
place across the portfolio. 50%+ of the wind generational capacity is now
hedged until March 2026, as seen in the table on page 28 of the Half-year
report 2025.
Key operational initiatives delivered in the period include the successful
commissioning of a key value enhancement initiative at Moel Moelogan;
involving the upgrade of turbine blades to optimise airflow in order to
increase energy capture. The precise degree of benefit and optionality to
replicate at other sites will be assessed in the coming period.
Solar
The solar portfolio generated 52GWh, representing 9% of the total energy
produced by the portfolio - and was 6.2% above target.
The strong production during the period was due to combination of continued
good irradiation and high asset availability of 98%.
Key operational initiatives delivered in the period include enhanced
management of spare parts and replacement modules to address inverter issues.
A repowering programme is also underway at Branden Victoria solar farm, which
is due to be completed in the new year.
Over 50% of the solar portfolio capacity is now fixed until March 2027, as
seen in the table on page 28 of the Half-year report 2025.
Hydro
The Company's small portfolio of run-of-river hydropower facilities
experienced a disappointing combination of abnormally low river levels and a
mechanical failure at the plant in Knottingley, resulting in actual generation
of 0.5GWh against a budget of 2GWh.
FGEN's hydro investments remain a small part of the portfolio and represent
less than 1% of total portfolio value.
Other energy infrastructure
CNG Fuels (in ramp-up phase)
The CNG refuelling business continues to demonstrate positive growth potential
- with a 19% increase in fuel dispensed year-on-year as customers brought new
vehicles into service and new stations became established and a 21% increase
in the average RTFC price in September 2025 versus the same month last year.
In line with the growth objective of the business, the construction site at
Livingston was brought online in May - bringing the total to 16 operational
stations under management, and funding has been agreed for the construction of
three further sites.
FGEN invested £0.7 million into CNG during the period, bringing the total
amount invested to £28.4 million at the balance sheet date.
Battery storage assets
FGEN's 50MW operational battery, West Gourdie, maintained strong operational
reliability over the six-month period, with average availability slightly
below target at 97.7%, but within tolerance. Battery cycling averaged well
under the permitted maximum at 0.66 cycles per day.
UK power markets saw significant volatility early in summer, with day-ahead
prices swinging between £11/MWh and £93/MWh, although intraday spreads
narrowed sharply mid-period as wind output dipped and gas-fired generation
filled gaps, reducing arbitrage opportunities. Ancillary service prices
softened due to increased competition, while Balancing Mechanism dispatch
volumes fell ~21%, limiting upside for flexible assets. Therefore Dynamic
Containment remained the primary revenue stream, despite its contribution
declining as frequency response markets matured.
Other battery storage assets (in construction phase)
The Sandridge 50MW battery asset was energised in the reporting period and
Takeover is now expected ahead of the end of the financial year.
The sale of the Lunanhead battery development was completed in August 2025,
while further options are being explored for Clayfords.
Sustainable resource management
Waste and wastewater concessions
The ELWA waste project continues to deliver strong operational and financial
performance in line with expectations. Operational performance targets were
again exceeded with diversion from landfill at 99.7%, substantially ahead of
the 67% contract target, and recycling at 28.9%, also ahead of the 22%
contract target. Waste tonnages delivered remained stable throughout the year
and were in line with expectations.
Preparations for the hand back of this project to the authority in 2027
continue, with positive discussions being held between the parties.
The Tay wastewater project experienced a relatively stable year operationally.
On 16 September 2025, a fire occurred in the dryer, causing temporary
disruption to normal service. The unit was successfully restored to operation
on 19 November. No personnel were injured, although the fire brigade attended
the site as a precaution. All repair costs are expected to be fully covered
under the insurance policy.
Controlled environment - Glasshouse (in ramp-up phase)
The Glasshouse continues to make progress in its operational ramp-up, with
customers now including six of the eight largest clinics in the UK and a
backdrop of strong market growth projections representing a significant
opportunity for a well-regarded supplier in a market with high barriers to
entry.
To support the business during its ramp up, the Company extended its
convertible loan note facility by £2 million on accretive terms to FGEN,
should short-term funding be required. This facility remained undrawn at 30
September 2025.
Looking forward, the business remains on track to become cash flow breakeven
in the new year; ahead of full ramp up by 2026/27.
Controlled environment - Rjukan aquaculture (in early ramp-up phase)
Rjukan delivered a major milestone in the period - with construction work
largely now complete and first trial harvests commencing in July - with the
business now beginning the transition to its early ramp-up phase.
The initial trial harvests were delivered successfully - with promising
average fish weights being recorded despite higher-than-expected mortality as
the final stages of the growing and production systems are optimised.
Harvest volumes are on track to hit c.1,700 tonnes by the end of the financial
year, with fish largely expected to be sold to the commodity market until
production is consistently proven at steady-state levels.
As the business ramps up further, management anticipate that a larger
proportion of fish would be sold at a significant premium, with letters of
interest being received at levels significantly above the base commodity price
at multiple European markets including Germany, Poland, Lithuania, Latvia,
Estonia and Hungary.
Given the asset has now commenced operations, its valuation basis has been
moved from cost to DCF - unlocking an uplift in value of £2.9 million.
Divestments
Disposal of Lunanhead
In August 2025, the Company announced the sale of its 50% equity stake in
Lunanhead, a 50MW lithium-ion Battery Energy Storage System ("BESS")
development project located in Perthshire, Scotland.
Lunanhead was jointly owned with Foresight Solar Fund and has been sold to a
third-party buyer at a value consistent with the asset's carrying value as at
30 June 2025, which represents less than 0.2% of the Company's total portfolio
value. As previously reported, the Investment Manager continues to explore
options for Clayfords BESS, in which the Company also holds a 50% stake.
Other investments
FEIP
FGEN has committed to investing €25 million in Foresight Energy
Infrastructure Partners SCSp ("FEIP"), a Luxembourg limited partnership
investment vehicle. At 30 September 2025, FEIP has invested in 15 projects and
is no longer seeking to make new investments.
The investment in FEIP allows FGEN to further diversify its geographic and
technology exposure, while also gaining an allocation to construction‑stage
assets which is expected to enhance returns.
Given construction-stage assets can only represent a small part of the
Company's portfolio, the FEIP investment allows a greater level of
diversification than would be possible with direct investments, providing for
a more attractive risk-adjusted return profile. FGEN is excused from any FEIP
investment that is not consistent with FGEN's investment policy. No management
fees are payable on the amounts invested by FGEN. FEIP also owns a 45% stake
in ETA, the Italian EfW plant, in which FGEN is also an investor. As at 30
September 2025, €23.2 million has been invested in FEIP.
Financing
On 25 April 2025, FGEN announced that it had reduced the size of its
multi-currency revolving credit facility ("RCF") from £200 million to £150
million. The downsizing of the RCF will result in an annual cost saving of
£367,500. The reduced RCF continues to provide ample headroom to cover
outstanding portfolio commitments, including the remaining payments for the
Company's well-progressed construction-stage investments.
The £150 million RCF has an uncommitted accordion facility of up to £30
million and an uncommitted option to extend for a further year.
As at 30 September 2025, drawings under the RCF were £121.3 million (31 March
2025: £99.3 million).
The RCF provides an increased source of flexible funding outside equity
raisings, with both sterling and euro drawdowns available on attractive terms.
The facility will principally be used to make future acquisitions of
environmental infrastructure investments to add to the current portfolio, as
well as covering any working capital requirements.
The interest charged in respect of the renewed RCF continues to be linked to
the Company's ESG performance, with FGEN incurring a 5 bps premium or discount
to its margin based on performance against defined targets. Those targets
include:
• environmental: increase coverage of independent biodiversity
assessments and implement initiatives to enhance biodiversity net gain across
the portfolio;
• social: increase volume of contributions to local communities; and
• governance: maintain a low number of work-related accidents, as
defined under the Reporting of Injuries, Diseases and Dangerous Occurrences
Regulations ("RIDDOR") by the Health and Safety Executive.
Performance against these targets will be measured annually, with the cost of
the RCF being amended in the following financial year. Lenders to the facility
include HSBC, ING, Clydesdale Bank, National Australia Bank and Royal Bank of
Scotland International. The margin can vary between 205 bps and 215 bps over
SONIA (Sterling Overnight Index Average) for sterling drawings and Euribor
(Euro Interbank Offered Rate) for euro drawings, depending on performance
against the ESG targets.
In addition to the RCF, several of the projects have underlying project-level
debt. At the half-year mark, the weighted average cost of project-level debt
was 4.1%, and the weighted average cost of debt after including the RCF was
4.6% (31 March 2025: 4.4% and 4.9%).
Project-level gearing at 30 September 2025 across the portfolio was 18.1% (31
March 2025: 18.5%). Taking into account the amount drawn down under the RCF of
£121.3 million, the overall fund gearing at 30 September 2025 was 30.6% (31
March 2025: 28.7%).
As at 30 September 2025, the Group, which comprises the Company and the
intermediate holding companies, had cash balances of £14.2 million (31 March
2025: £7.8 million).
Financing at 30 September 2025
£121.3m 30.6%
drawn on RCF gearing(1)
1. Gearing is an alternative performance measure ("APM"). The APMs within
the accounts are defined on pages 71 and 72 of the Half-year report 2025.
Progress on growth assets
CNG Fuels
A UK-wide network of reliable, convenient refuelling stations for heavy duty
fleets
Investment highlights
Acquisition date December 2020
Ownership CNG Foresight Holdings is owned 25% by FGEN and 75% by Foresight ITS. CNG
Foresight Holdings owns 60% of the shares in CNG Fuels Ltd
FGEN investment to date/total commitment £28.4 million invested/£5.5 million remaining commitment
FGEN equity value £41.4 million/6% of total portfolio value
Expected return range Low to mid-teens
Investment overview
The CNG Fuels investment comprises a portfolio of 16 biomethane refuelling
stations providing compressed natural gas ("CNG") to heavy goods vehicle
("HGV") fleet operators in the UK.
The transport sector is the largest source of carbon dioxide emissions in the
UK, accounting for 34% in 2019. HGVs produce 17% of road transport emissions
and 4.5% of total UK GHGs.
HGVs fuelled by biomethane generated by AD plants are the only commercially
available, at-scale solution to substantially reduce these emissions.
Therefore, the take-up of CNG offers fleet operators the opportunity to
significantly lower their emissions, whilst also providing a cheaper
whole-life alternative to comparable diesel vehicles.
Investment attractions
• Revenues are earned from sales of biomethane fuel to customers under
contract, which include several of the largest fleet operators in the UK
• The commodity price of gas is passed through to the customer, meaning
that FGEN has no exposure to underlying merchant gas prices for these
contracts
• The government has committed to maintaining a clear advantage for
gas-powered vehicles until 2032, supporting the UK's target of net zero
emissions by 2050
• CNG Fuels is Europe's largest supplier of 100% renewable biomethane to
transport
• Attractive combination of predictable and reliable income and
potential for capital growth
• Contributes to FGEN portfolio diversification as a net user of
electricity rather than a generator
• FGEN investment structured in part via preferred equity instruments
with emphasis on downside protection
Key operational updates in the period
• Business combination completed - creating a fully integrated
biomethane sourcing and distribution platform; creating new revenue streams
• Completion of the second Scottish CNG station in Livingston
• Successful trials with customers on larger 6x2 Bio-CNG trucks;
unlocking a potentially significant new target market for the business
• Significant increases in volumes of gas dispensed, truck numbers and
RTFC pricing compared to prior year
Operational focus for the year ahead
• Solidify position as market leader by growing numbers of trucks and
volumes of gas dispensed
• Construction of three new CNG sites that have secured planning
permission
• Implement mobile refuelling units for major blue-chip customers at
private sites
Value enhancement opportunities
• Development of O&M services for third-party customers, since CNG
Fuels are SAFE compressor approved for commissioning and maintaining SAFE
compressor equipment
• Optimisation of energy costs in the CNG portfolio
The Glasshouse
Controlled environment glasshouse, utilising surplus heat and power from
co-located anaerobic digestion facility
Investment highlights
Acquisition date September 2022
Ownership Investment split between senior loan to fund construction of the glasshouse
facility and a minority 10% equity interest in the growing partner
Investment to date/total commitment £26.7 million invested/£2.0 million remaining commitment
FGEN equity value £39.0 million/5% of total portfolio value
Expected return range Double-digit IRR
Investment overview
A 2.4-hectare advanced glasshouse which completed phase 1 of construction in
September 2023 and which is co-located with an existing FGEN anaerobic
digestion facility that supplies low-carbon heat and power via a private wire.
The advanced glasshouse is capable of growing a wide array of horticultural
products, from consumable produce to cut flowers. Its current operator focuses
on the lawful cultivation of the heavily regulated tetrahydrocannabinol
cannabis flower ("THC"), conforming to tightly monitored licence requirements
for secure supply to established UK-based pharmaceutical manufacturers.
Glass Pharms is the first UK commercial grower of high‑THC cannabis flower
for lawful third parties to produce cannabis‑based products for medicinal
use in humans ("CBPMs").
Investment attractions
• Synergies from co-location of facilities, whereby the glasshouse
receives renewable heat and electricity via private wires at a discount to
market prices it would otherwise pay and the anaerobic digestion facility
benefits from receipt of revenues from the provision of otherwise waste heat
as well as selling electricity to the glasshouse at a premium to the price
available from exporting to the grid
• Attractive risk-adjusted returns with FGEN benefiting from downside
protection via a senior preferred return and opportunity for capital growth
via equity interest
• High margin business model, requiring low volumes to achieve breakeven
position whilst retaining potential for significant capital growth
• The investment generates new diversified revenue streams for FGEN
derived from glasshouses, whilst also increasing revenues from an existing
asset
Key operational updates in the period
• The Glasshouse continues to progress through its operational ramp-up
phase
• Customer base now includes six of the eight largest clinics in the UK
• Market backdrop shows strong growth projections, creating a
significant opportunity
• Positioned as a well-regarded supplier in a sector with high barriers
to entry
Operational focus for the year ahead
• Company extended its convertible loan note facility by £2 million to
support ramp-up - facility offered on accretive terms to FGEN, intended as
contingency for short-term funding needs. Facility remained undrawn as of 30
September 2025
• The business remains on track to become cash flow breakeven in the new
financial year, ahead of full ramp-up by 2026/27
• Principal focus is to continue ramp-up operations, carefully managing
costs and attracting new offtake partners which presently rely on imported
sources
Value enhancement opportunities
• Longer term, once the facility has reached its current capacity, there
is scope to undertake phase 2 of construction - intended to facilitate more
than double the current volume capacity. The expansion would be funded from
free cash generated by the Glasshouse
Rjukan
Land-based recirculating aquaculture facility in Norway
Investment highlights
Acquisition date July 2022
Ownership 58% Foresight Rjukan HoldCo Limited (FGEN and Foresight ITS) and 42% Hima
Seafood
Investment to date/total commitment £47.7 million invested/£1.1 million remaining commitment
FGEN equity value £50.6 million/7% of total portfolio value
Expected return range Low double-digit IRR
Investment overview
Rjukan is a land-based trout farm based on technology that recirculates pure,
clean mountain water. The technology is known as a recirculating aquaculture
system ("RAS") and is the most sustainable, scalable and environmentally
conscious form of aquaculture production available today. The facility is
capable of producing c.8,000 tonnes of trout (or 22,000,000 dinners) per year
which is to be sold to European and international salmonid markets.
Driven by a growing global population and an expanding middle class, the world
faces an increasing demand for quality protein amid limited resources of
usable land and water. Fish, including salmonids such as salmon and trout, are
considered one of the most efficient sources of high‑quality animal protein
due to the rate at which fish convert feed into edible mass, its high protein
retention and high rate of edible meat per kilogramme, as well as various
nutritional benefits.
Investment attractions
• Key environmental infrastructure needed to decarbonise food production
and agriculture sectors for a growing population
• Rising global demand for quality, sustainable protein sources from
sustainable practices
• Unique location providing access to a high-quality source of fresh
water and renewable electricity
• Access to established Norwegian seafood markets
• Favourable regulatory environment presenting tax advantages for fully
land-based controlled environment projects
• FGEN investment structured via preferred equity instruments with
emphasis on downside protection and alignment of incentives with developer and
minority shareholders
Key operational updates in the period
• Construction work largely complete
• Initial trial harvests completed with promising average fish weights
• System optimisation underway to minimise early mortality levels
• Asset valuation moved from cost to DCF basis, unlocking a £2.9
million uplift
Operational focus for the year ahead
• Harvest volumes on track to reach approximately 1,700 tonnes by year
end
• Early production expected to be sold into the commodity market until
steady-state achieved
• Management anticipates future premium pricing, supported by letters of
interest from multiple European markets (Germany, Poland, Lithuania, Latvia,
Estonia, Hungary)
Value enhancement opportunities
• Potential to find efficiencies including increasing fish size before
sale and additional batches etc.
• Estimated output of 4,500mt organic fertiliser which can be sold to
neighbouring industries and farming communities
Risk and risk management
The Company's approach to risk governance and its risk review process, as well
as the principal risks to the achievement of the Company's objectives, remain
unchanged to those set out in the risks and risk management section on pages
53 to 64 of the Company's Annual Report 2025.
Developments in relation to those principal risks, particularly those which
could potentially have a short to medium‑term impact during the period to 31
March 2026, are outlined below.
Energy prices
Following the period of extraordinarily high power prices during 2022 and
early 2023, prices have fallen back significantly and have been relatively
stable for the last year or so, with modest changes to price assumptions
driven by factors such as forecast energy demand, renewable build-out
expectations and their associated impact on capture pricing, as well as other
ancillary factors such as REGO and Renewable Transport Fuel Obligation
("RTFO") prices. The Company continues to take a robust mitigation approach to
the valuation risks associated with forecast power prices being different to
the actual prices achieved by using short-term price fixes and assumptions
informed by market forward prices and a blend of three different specialist
forecasters where fixes are not in place. The diversification of revenue
sources across not just power but gas and other commodities, and across
different markets, is a further mitigant in reducing exposure to power price
fluctuations in single markets.
As highlighted in the Annual Report 2025, risk for further volatility for oil
and gas prices remains escalated given the ongoing situations in Ukraine and
the Middle East, with risks to the valuation related to power price
assumptions both upside and downside.
Read more about risks and risk management on pages 53 to 64 in the Annual
Report 2025
Ramp-up risk
One of the principal risks in the Annual Report 2025 was ramp-up risk, which
refers to the operational ramp-up across three assets in the FGEN portfolio -
Rjukan, CNG and the Glasshouse - collectively referred to as the "growth
assets" given the potential for capital appreciation that the Company is
targeting across them.
The growth assets are all in various stages of ramp-up, with Rjukan having
achieved first harvest and sales in the summer and now looking to hit its
volumes target for the calendar year end, CNG continuing with further station
rollouts and higher volumes of dispensed gas, and the Glasshouse achieving
further sales and market penetration. All have generally progressed in line
with management plans during the period, noting that ramp-up risks such as
delays in timing, technical issues, production volumes being lower than
forecast, contamination risk, pricing and sales volumes all require careful
and proactive management as the businesses progress.
Regulatory risk
In general, the regulatory environment across the UK and Europe remains
supportive for the Company's wider mandate. However, focusing on the UK, there
are certain consultations and potential reforms underway which could change
the way in which revenues for FGEN's renewable electricity and battery storage
assets are determined.
This includes the review of electricity market arrangements ("REMA"), the
consultation on Fixed Price Certificates ("FPCs") into the Renewables
Obligation regime in place of ROCs, and the recently announced consultation
exploring changes to the inflation indexation of ROCs and FiTs.
With respect to REMA, the most meaningful update in the period was the UK
government's announcement that it would not introduce zonal pricing and
instead focus on reformed national pricing measures, generally seen by the
Company as a positive, although with uncertainty remaining until actual
measures are known.
The Company's initial response to the ROC and FiT inflation consultation was
published on 14 November, noting the relative impacts to NAV of the different
approaches and its plans to respond to the consultation in co-ordination with
peers and industry bodies to build the strongest possible case for
shareholders, acknowledging the goal of lowering energy costs for consumers
and the transition to a more sustainable energy market. It is not yet clear
how this interacts with the planned FPC consultation, expected to be published
by government within the next few months, but the Investment Manager is
monitoring this closely, noting that FGEN's diversified investment strategy is
well placed to navigate such political and regulatory risks. More information
on the potential impact of the proposed changes on FGEN's NAV per share can be
found in the investment portfolio and valuation section on page16 of the
Half-year report 2025.
Financial review
Analysis of financial results
The financial statements of the Company for the six‑month period ended 30
September 2025 are set out on pages 49 to 70 of the Half-year report 2025.
The Company prepared the condensed unaudited financial statements for the
six‑month period to 30 September 2025 in accordance with UK-adopted
international accounting standards as applicable to companies reporting under
those standards. In order to continue providing useful and relevant
information to its investors, the financial statements also refer to the
"Group", which comprises the Company, its wholly owned subsidiary Foresight
Environmental Infrastructure (UK) Ltd ("HoldCo") and the indirectly held
wholly owned subsidiary HWT Limited (which holds the investment interest in
the Tay project).
Key investment metrics
All amounts presented in £million (except as noted) Period ended 30 Sep 2025 Period ended 30 Sep 2024 Year ended 31 Mar 2025
Net assets¹ 652.7 720.1 678.7
Portfolio value² 751.9 806.6 765.7
Operating income and gains on fair value of investments 13.6 4.2 6.0
Net Asset Value per share³ 104.7p 109.8p 106.5p
Distributions, repayments and fees from portfolio³ 39.7 46.6 90.4
Profit/(loss) before tax 9.5 (0.5) (2.8)
Gross Asset Value³ 940.0 1,010.5 951.3
Market capitalisation³ 436.4 595.4 457.0
Share price 70.0p 90.8p 71.7p
Total shareholder return³ 44.8% 69.4% 41.0%
Annualised total shareholder return³ 3.3% 5.1% 3.2%
1. Also referred to as "NAV".
2. Classified as investments at fair value through profit or loss on the
statement of financial position.
3. Net Asset Value per share, Distributions, repayments and fees from
portfolio, Total shareholder return, Annualised total shareholder return,
Market capitalisation and Gross Asset Value are alternative performance
measures ("APMs"). The APMs within the accounts are defined on pages 71 and 72
of the Half-year report 2025.
Net assets
Net assets decreased from £678.7 million at 31 March 2025 to £652.7 million
at 30 September 2025.
The net assets of £652.7 million comprise £751.9 million portfolio value of
environmental infrastructure investments and the Company's cash balances of
£0.2 million, partially offset by £97.4 million of intermediate holding
companies' net liabilities and other net liabilities of £2.0 million.
The intermediate holding companies' net liabilities of £97.4 million comprise
a £121.3 million credit facility loan, partially offset by cash balances of
£14.1 million and other net assets of £9.8 million.
Analysis of the Group's net assets at 30 September 2025
All amounts presented in £million (except as noted) At 30 Sep 2025 At 31 Mar 2025
Portfolio value 751.9 765.7
Intermediate holding companies' cash 14.1 5.1
Intermediate holding companies' revolving credit facility (121.3) (99.3)
Intermediate holding companies' other assets 9.8 6.7
Fair value of the Company's investment in UK HoldCo 654.5 678.2
Company's cash 0.2 2.6
Company's other net liabilities (excluding cash) (2.0) (2.1)
Net Asset Value 652.7 678.7
Number of shares 623,475,335 637,443,058
Net Asset Value per share 104.7p 106.5p
At 30 September 2025, the Group (the Company plus intermediate holding
companies) had a total cash balance of £14.3 million (31 March 2025: £7.8
million), including £0.2 million in the Company's statement of financial
position (31 March 2025: £2.6 million) and £14.1 million in the intermediate
holding companies (31 March 2025: £5.1 million), which is included in the
Company's statement of financial position within "Investments at fair value
through profit or loss".
At 30 September 2025, UK HoldCo had drawn £121.3 million of its revolving
credit facility (31 March 2025: £99.3 million) which is included in the
Company's statement of financial position within "Investments at fair value
through profit or loss".
The movement in the portfolio value from 31 March 2025 to 30 September 2025 is
summarised as follows:
All amounts presented in £million Period ended 30 Sep 2025 Year ended 31 Mar 2025
Portfolio value at start of the period/year 765.7 891.9
Acquisitions/further investments (net of post‑acquisition price adjustments) 7.9 30.7
Disposals in investment assets (1.2) (89.1)
Distributions received from investments (39.7) (90.4)
Growth in value of portfolio 19.2 22.6
Portfolio value 751.9 765.7
Further details on the portfolio valuation and an analysis of movements during
the period are provided in the investment portfolio and valuation section on
pages 16 to 26 of the Half-year report 2025.
Financing at 30 September 2025
£121.3m 30.6%
Drawn on RCF Fund gearing1
Income
The Company's profit before tax for the six‑month period was £9.5 million
(six‑month period ended 30 September 2024: loss of £0.5 million), a profit
of 1.5 pence per share (six‑month period ended 30 September 2024: loss of
0.1 pence per share).
All amounts presented in £million (except as noted) Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Interest received on UK HoldCo loan notes 14.9 15.7
Dividend received from UK HoldCo 22.4 19.8
Net loss on investments at fair value (23.7) (31.3)
Operating income and gains on fair value of investments 13.6 4.2
Operating expenses (4.1) (4.7)
Profit/(loss) before tax 9.5 (0.5)
Earnings/(losses) per share 1.5p (0.1)p
In the six months to 30 September 2025, the operating income and losses on
fair value of investments was £13.6 million, including the receipt of £14.9
million of interest on the UK HoldCo loan notes, £22.4 million of dividends
also received from UK HoldCo and a net loss on investments at fair value of
£23.7 million.
The operating expenses included in the income statement for the period were
£4.1 million, in line with expectations. These comprise £3.1 million of
Investment Manager fees and £1.0 million operating expenses. The details on
how the Investment Manager fees are charged are set out in note 14 to the
condensed unaudited financial statements.
Ongoing charges
The "ongoing charges ratio"(2) is an indicator of the costs incurred in the
day-to-day management of the Fund. FGEN uses the Association of Investment
Companies ("AIC") recommended methodology for calculating this ratio, which is
an annual figure.
For the period ended 30 September 2025, the ongoing charges ratio(1) was 1.15%
(31 March 2025: 1.24%), based on an annualised six-month cost and reflecting
the decrease in the NAV. The ratio is calculated on a consolidated basis,
considering both the UK HoldCo and the Company's expenses. The expected
ongoing charges ratio for the full financial year ending31 March 2026 is
1.08%, which incorporates a reduction in the Investment Management fee over
the remaining six months, assuming no change in NAV. For the financial year
ending 31 March 2027, the expected ongoing charges ratio is 1.03%, factoring
in the full benefit of the Investment Management fee reduction and assuming no
change in NAV.
1. Gearing is an alternative performance measure ("APM"). The APMs within
the accounts are defined on pages 71 and 72 of the Half-year report 2025.
2. The ongoing charges ratio is an alternative performance measure ("APM").
The APMs within the accounts are defined on pages 71 and 72 of the Half-year
report 2025.
Cash flow
The Company had a total cash balance at 30 September 2025 of £0.2 million (31
March 2025: £2.6 million). The breakdown of the movements in cash during the
period is shown below.
Cash flows of the Company for the period (£million):
Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Cash balance at 1 April 2.6 0.3
Interest on loan notes received from UK HoldCo 14.9 15.7
Dividends received from UK HoldCo 22.4 19.8
Directors' fees and expenses (0.2) (0.2)
Investment Manager fees (3.1) (4.2)
Administrative expenses (0.9) (0.6)
Dividends paid in cash to shareholders (24.8) (25.4)
Share buybacks (10.7) (5.2)
Company cash balance at 30 September 0.2 0.2
The Group had a total cash balance at 30 September 2025 of £14.3 million (31
March 2025: £7.8 million) and borrowings under the revolving credit facility
of £121.3 million (31 March 2025: £99.3 million). The breakdown of the
movements in cash during the period is shown in the following table.
Cash flows of the Group for the period (£million):
Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Cash distributions from environmental infrastructure investments 39.7 46.6
Administrative expenses (1.3) (0.8)
Directors' fees and expenses (0.2) (0.2)
Investment Manager fees (3.1) (4.2)
Financing costs (3.2) (6.8)
Electricity Generator Levy (1.8) (3.3)
Cash flow from operations² 30.1 31.3
Acquisition of investment assets and further investments (7.9) (15.9)
Disposal of asset 1.2 68.1
Acquisition costs (including stamp duty) - (0.6)
Short-term projects debtors (1.2) (2.1)
Purchase of treasury shares (10.7) (5.2)
Debt arrangement fee cost (0.1) (2.3)
Drawdown/(repayment) under the revolving credit facility 19.9 (44.4)
Dividends paid in cash to shareholders (24.8) (25.4)
Cash movement in the period 6.5 3.5
Opening cash balance 7.8 18.0
Group cash balance at 30 September 14.3 21.5
1. The ongoing charges ratio is an alternative performance measure ("APM").
The APMs within the accounts are defined on pages 71 and 72 of the Half-year
report 2025.
2. "Cash flow from operations" is an alternative performance measure
("APM"). The APMs within the accounts are defined on pages 71 and 72 of the
Half-year report 2025.
During the period, the Group received cash distributions of £39.7 million
from its environmental infrastructure investments.
Cash received from investments in the period covered the operating and
administrative expenses and financing costs, as well as the dividends declared
to shareholders in respect of the six‑month period ended 30 September 2025.
Cash flow from operations of the Group of £30.1 million covered dividends
paid in the six‑month period to 30 September 2025 of £24.8 million by
1.22x.
The Group anticipates that future revenues from its environmental
infrastructure investments will continue to be in line with expectations and
therefore will continue to cover future costs as well as planned dividends
payable to its shareholders.
Dividends
During the period, the Company paid a final interim dividend of 1.95 pence per
share in June 2025 (£12.3 million) in respect of the quarter to 31 March
2025. Interim dividends of 1.99 pence per share were paid in September 2025
(£12.4 million) in respect of the quarter to 30 June 2025.
On 18 November 2025, the Board approved an interim dividend of 1.99 pence per
share in respect of the quarter ended 30 September 2025. The dividend is
payable on 30 December 2025 to all voting shares, excluding shares kept in
treasury.
In line with the announcement in the 2025 Annual Report, the target dividend
for the year to 31 March 2026 is 7.96 pence per share(1).
1. These are targets only and not profit forecasts. There can be no
assurance that these targets will be met.
Directors' responsibility statement
The Directors are responsible for preparing the Half-year Report and condensed
unaudited interim financial statements in accordance with applicable
regulations.
We confirm that to the best of our knowledge:
• the condensed unaudited interim financial statements have been
prepared in accordance with United Kingdom adopted International Accounting
Standard 34 Interim Financial Reporting and in accordance with the accounting
policies set out in the audited Annual Report to 31 March 2025; and
• the Chair's statement and Investment Manager's report meet the
requirements of an interim management report and include a fair review of the
information required by:
(a) DTR 4.2.7R, being an indication of important events during the
first six months of the financial year and their impact on the condensed
unaudited interim financial statements and a description of principal risks
and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R, being the disclosure of related parties'
transactions that have taken place during the first six months of the
financial year and that have materially affected the financial position or
performance of the Company during that period; and any changes in the related
party transactions described in the last Annual Report that could do so.
The Board is responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website, and for the
preparation and dissemination of financial statements. Legislation in Guernsey
governing the preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
This responsibility statement was approved by the Board of Directors on 27
November 2025 and is signed on its behalf by:
Ed Warner
Chair
27 November 2025
Independent review report
to Foresight Environmental Infrastructure Limited
Conclusion
We have been engaged by Foresight Environmental Infrastructure Limited (the
"Company") to review the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 September 2025 of the
Company, which comprises the condensed unaudited statement of financial
position, the condensed unaudited income statement, the condensed unaudited
statement of changes in equity, the condensed unaudited cash flow statement
and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025 is not prepared,
in all material respects, in accordance with IAS 34 Interim Financial
Reporting and the Disclosure Guidance and Transparency Rules ("the DTR") of
the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued by the Financial
Reporting Council for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures.
We read the other information contained in the half-yearly financial report
and consider whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Scope of review section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However future events or conditions may cause the Company to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Company will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
interim financial report in accordance with the DTR of the UK FCA.
As disclosed in note 2(a), the annual financial statements of the Company are
prepared in accordance with UK-adopted international accounting standards. The
directors are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in accordance with IAS
34 Interim Financial Reporting.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless they either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the scope of review paragraph of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our
engagement letter to assist the Company in meeting the requirements of the DTR
of the UK FCA. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached.
Barry Ryan
For and on behalf of KPMG Audit Limited
Chartered Accountants,
Guernsey
27 November 2025
Condensed unaudited income statement
for the six months ended 30 September 2025
Notes Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Operating income and gains on fair value of investments 3 13,643 4,213
Operating expenses 4 (4,106) (4,750)
Operating profit/(loss) 9,537 (537)
Profit/(loss) before tax 9,537 (537)
Tax 5 - -
Profit/(loss) for the period 9,537 (537)
Earnings/(losses) per share
Basic and diluted (pence) 7 1.5 (0.1)
The accompanying notes form an integral part of the condensed set of unaudited
financial statements.
All results are derived from continuing operations.
There are no items of other comprehensive income in either the current or
preceding period, other than the profit for the period, and therefore no
separate condensed unaudited statement of comprehensive income has been
presented.
Condensed unaudited statement of financial position
as at 30 September 2025
Notes 30 Sep 2025 (unaudited) £'000s 31 Mar 2025 (audited) £'000s
Non-current assets
Investments at fair value through profit or loss 8 654,469 678,157
Total non-current assets 654,469 678,157
Current assets
Trade and other receivables 9 48 21
Cash and cash equivalents 158 2,617
Total current assets 206 2,638
Total assets 654,675 680,795
Current liabilities
Trade and other payables 10 (1,950) (2,094)
Total current liabilities (1,950) (2,094)
Total liabilities (1,950) (2,094)
Net assets 652,725 678,701
Notes 30 Sep 2025 (unaudited) £'000s 31 Mar 2025 (audited) £'000s
Equity
Share capital account 12 664,401 664,401
Treasury shares (29,905) (19,156)
Retained earnings 13 18,229 33,456
Equity attributable to owners of the Company 652,725 678,701
Net assets per share (pence per share) 104.7 106.5
The accompanying notes form an integral part of the condensed set of unaudited
financial statements.
The condensed set of unaudited financial statements were approved by the Board
of Directors and authorised for issue on 27 November 2025.
They were signed on its behalf by:
Ed Warner
Chair
Stephanie Coxon
Director
Condensed unaudited statement of changes in equity
for the six months ended 30 September 2025
Six months ended 30 Sep 2025 (unaudited)
Notes Share capital account £'000s Treasury shares £'000s Retained earnings £'000s Total £'000s
Balance at 1 April 2025 664,401 (19,156) 33,456 678,701
Profit and total comprehensive income for the period 13 - - 9,537 9,537
Purchase of treasury shares - (10,749) - (10,749)
Dividends paid 6 - - (24,764) (24,764)
Balance at 30 September 2025 664,401 (29,905) 18,229 652,725
12 months ended 31 Mar 2025 (audited)
Notes Share capital account £'000s Treasury shares £'000s Retained earnings £'000s Total £'000s
Balance at 1 April 2024 664,401 - 86,813 751,214
Loss and total comprehensive income/(expense) for the year - - (2,835) (2,835)
Purchase of treasury shares - (19,156) - (19,156)
Dividends paid - - (50,522) (50,522)
Balance at 31 March 2025 664,401 (19,156) 33,456 678,701
Six months ended 30 Sep 2024 (unaudited)
Notes Share capital account £'000s Treasury shares £'000s Retained earnings £'000s Total £'000s
Balance at 1 April 2024 664,401 - 86,813 751,214
Loss and total comprehensive income/(expense) for the period 13 - - (537) (537)
Purchase of treasury shares - (5,179) - (5,179)
Dividends paid 6 - - (25,361) (25,361)
Balance at 30 September 2024 664,401 (5,179) 60,915 720,137
The accompanying notes form an integral part of the condensed set of unaudited
financial statements.
Condensed unaudited cash flow statement
for the six months ended 30 September 2025
Notes Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Profit/(loss) for the period 9,537 (537)
Adjustments for:
Interest received (14,931) (15,744)
Dividends received (22,400) (19,800)
Net loss on investments at fair value through
profit or loss 23,688 31,331
Operating cash flows before movements in working capital (4,106) (4,750)
Increase in receivables (27) (13)
Decrease in payables (144) (319)
Net cash outflow from operating activities (4,277) (5,082)
Investing activities
Interest received 14,931 15,744
Dividends received 22,400 19,800
Net cash generated from investing activities 37,331 35,544
Notes Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Financing activities
Purchase of treasury shares 12 (10,749) (5,179)
Dividends paid 6 (24,764) (25,361)
Net cash outflow from financing activities (35,513) (30,540)
Net decrease in cash and cash equivalents (2,459) (78)
Cash and cash equivalents at beginning of period 2,617 271
Cash and cash equivalents at end of period 158 193
The accompanying notes form an integral part of the condensed set of unaudited
financial statements.
Notes to the condensed unaudited financial statements
for the six months ended 30 September 2025
1. General information
Foresight Environmental Infrastructure Limited (the "Company" or "FGEN") is a
closed‑ended investment company domiciled and incorporated in Guernsey,
Channel Islands, under Section 20 of the Companies (Guernsey) Law, 2008. The
shares are publicly traded on the London Stock Exchange under a premium
listing. The condensed unaudited interim financial statements of the Company
are for the six‑month period ended 30 September 2025 and have been prepared
on the basis of the accounting policies set out below. The financial
statements comprise only the results of the Company as its investment in
Foresight Environmental Infrastructure (UK) Limited ("UK HoldCo") is measured
at fair value as detailed in the significant accounting policies below. The
Company and its subsidiaries invest in environmental infrastructure that
utilises natural or waste resources or supports more environmentally friendly
approaches to economic activity.
2. Material accounting policies
(a) Basis of preparation
The condensed unaudited interim financial statements, which give a true and
fair view, were approved and authorised for issue by the Board of Directors on
27 November 2025. The condensed unaudited interim financial statements
included in this Half‑year Report have been prepared in accordance with
UK-adopted International Accounting Standard 34 "Interim Financial Reporting".
As a result of adopting the amendments to IFRS 10, IFRS 12 and IAS 28 first
adopted in the Company's Annual Report to 31 March 2015, the Company is
required to hold its subsidiaries that provide investment services at fair
value, in accordance with IFRS 9 Financial Instruments Recognition and
Measurement, and IFRS 13 Fair Value Measurement.
The Company accounts for its investment in its wholly owned direct subsidiary
UK HoldCo at fair value. The Company, together with its wholly owned direct
subsidiary UK HoldCo and the intermediate holding subsidiary HWT Limited,
comprise the Group (the "Group") investing in environmental infrastructure
assets.
The net assets of the intermediate holding companies (comprising UK HoldCo and
HWT Limited), which at 30 September 2025 principally comprise working capital
balances, the revolving credit facility ("RCF") and investments in projects,
are required to be included at fair value in the carrying value of
investments.
Consequently, the Company does not consolidate its subsidiaries or apply IFRS
3 Business Combinations when it obtains control of another entity as it is
considered to be an investment entity under UK-adopted international
accounting standards. Instead, the Company measures its investment in its
subsidiary at fair value through profit or loss.
The condensed unaudited interim financial statements incorporate the financial
statements of the Company only.
The accounting policies and significant judgements are consistent with those
used in the latest audited financial statements to 31 March 2025 and should be
read in conjunction with the Company's annual audited financial statements for
the year ended 31 March 2025.
Key sources of estimation uncertainty
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The valuation is based on a discounted cash flow analysis of the future
expected equity and loan note cash flows accruing to the Group from each
operational portfolio investment. Assets under construction are valued at cost
until such time as the risks associated with construction have substantially
passed. For some technologies with more complex construction activities, this
will be when the asset reaches the start of commercial operations, while for
others this may be during late-stage construction.
Estimates such as the cash flows are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about
the fair value of assets not readily available from other sources. Actual
results may differ from these estimates.
The project cash flows used in the portfolio valuation at 30 September 2025
reflect contractual fixed price arrangements under PPAs, where they exist, and
short‑term market forward prices for the next two years where they do not.
After the initial two-year period, the project cash flows assume future
electricity and gas prices in line with a blended curve informed by the
central forecasts from three established market consultants, adjusted by the
Investment Manager for project-specific arrangements and price
cannibalisation.
For the Italian investment, project cash flows assume future electricity
prices informed by a leading independent market consultant's long‑term
projections.
The power price assumptions, including the discount to the near-term power
price assumptions, are a key source of estimation and uncertainty. Information
on the sensitivity of the portfolio to movement in power price is disclosed in
note 15.
Discount rates used in the valuation exercise represent 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 is
deemed to be one of the most significant unobservable inputs and any change
could have a material impact on the fair value of investments. Underlying
assumptions and discount rates are disclosed in note 8 and sensitivity
analysis is disclosed in note 15.
Due to the current economic environment, the Investment Manager and the Board
believe that the rate of inflation should also be considered a key source of
estimation uncertainty. Information on the sensitivity of the portfolio
valuation to movements in the inflation rate is disclosed in note 15.
(b) Going concern
The Directors, in their consideration of going concern, have reviewed
comprehensive cash flow forecasts prepared by the Company's Investment
Manager, Foresight Group, which are based on prudent market data and a
reasonable worst case scenario and believe, based on those forecasts and an
assessment of the Company's subsidiary's banking facilities, that it is
appropriate to prepare the financial statements of the Company on the going
concern basis.
In arriving at their conclusion, the Directors assessed the risks of the
volatility of energy prices, the potential impact of the principal risks (as
outlined in the Annual Report 2025), and the possible triggering of the
continuation vote (previously discontinuation vote).
In addition to the risks outlined above, the Directors have also considered
the sustainability-related risks covering environmental, social and governance
factors, including climate change (in line with the recommendations of the
Task Force on Climate-related Financial Disclosures ("TCFD"), outlined in the
financial disclosures in the Annual Report 2025). The Investment Manager has
reviewed the portfolio's exposure to these risks in the period under review
and has concluded that it is currently not material to the Fund, although it
continues to monitor the market attentively.
The Board considers the going concern assessment period of 18 months to 31
March 2027 to be appropriate. A longer period than the typical requirement of
12 months has been adopted to factor in the full payment of the December 2026
dividend. On 25 April 2025, FGEN announced that it had reduced the size of its
multi-currency revolving credit facility ("RCF") from £200 million to £150
million. The Directors considered that the Company had adequate financial
resources, and were mindful that the Group had unrestricted cash of £14.3
million (including £0.2 million in the Company) as at 30 September 2025 and a
revolving credit and accordion facility (available for investment in new or
existing projects and working capital) of £150 million. As at 30 September
2025, the Company's wholly owned subsidiary UK HoldCo had borrowed £121.3
million under the facility. All key financial covenants under this facility
are forecast to continue to be complied with for the duration of the going
concern assessment period.
The RCF, currently drawn at £121.3 million, continues to provide ample
headroom to cover outstanding portfolio commitments, including the remaining
payments for the Company's well-progressed construction-stage investments. The
£150 million RCF has an uncommitted accordion facility of up to £30 million.
All other terms of the RCF announced on 13 June 2024 remain unchanged. The RCF
provides the flexibility for the Fund to continue meeting existing funding
commitments to portfolio assets. The Company also has sufficient headroom in
its revolving credit facility to finance its hard commitments relating to
construction assets held within the portfolio. The revolving credit facility
covenants have been tested on downside risk scenarios, with the assumption of
10% lower power price projections compared to the base case, reduced
generation levels assuming a P90, a proportion of the portfolio not yielding
and a combination of these scenarios. In all scenarios run, including the
combined downside case, the Company remained compliant with its key covenants.
As outlined in the updated Articles of Incorporation, if in respect of any
full financial year of the Company commencing on or after 1 April 2025, the
ordinary shares have traded on average at a discount in excess of 10% to the
Net Asset Value per share, the Board shall put to the Members, at the next AGM
of the Company, an ordinary resolution to consider whether the Company should
continue in its present form. Given the continued discount to NAV at which the
Company's shares trade, the Board has considered the potential for a
continuation vote in September 2026, which falls within the going concern
assessment period.
Based on the above, 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 preparation of these
financial statements.
(c) Segmental reporting
The Board is of the opinion that the Company is engaged in a single segment of
business, being investment in environmental infrastructure to generate
investment returns while preserving capital. The financial information used by
the Board to allocate resources and manage the Company presents the business
as a single segment comprising a homogeneous portfolio.
(d) Statement of compliance
Pursuant to the Protection of Investors (Bailiwick of Guernsey) Law, 2020 the
Company is a registered closed-ended investment scheme. As a registered
scheme, the Company is subject to certain ongoing obligations to the Guernsey
Financial Services Commission, and is governed by the Companies (Guernsey)
Law, 2008, as amended.
(e) Seasonality
Neither operating income nor profit are impacted significantly by seasonality.
While meteorological conditions resulting in fluctuation in the levels of wind
and sunlight can affect revenues of the Company's environmental infrastructure
projects, due to the diversified mix of projects, these fluctuations do not
materially affect the Company's operating income or profit.
3. Operating income and loss on fair value of investments
Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Interest income 14,931 15,744
Dividend income 22,400 19,800
Net loss on investments at fair value through profit or loss (23,688) (31,331)
13,643 4,213
4. Operating expenses
Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Investment management fees 3,112 3,974
Directors' fees and expenses 157 175
Administration fee 50 66
Other expenses 787 535
4,106 4,750
5. Tax
Income tax expense
The Company has obtained exempt status from income tax in Guernsey under the
Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. FGEN is charged an
annual exemption fee of £1,600.
The income from its investments is therefore not subject to any further tax in
Guernsey, although the investments provide for and pay taxation at the
appropriate rates in the jurisdictions in which they operate. The underlying
tax within the subsidiaries and environmental infrastructure assets, which are
held as investments at fair value through profit or loss, is included in the
estimate of the fair value of these investments.
6. Dividends
Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Amounts recognised as distributions to equity holders during the period (pence
per share):
Final dividend for the year ended 31 March 2025 of 1.95
(31 March 2024: 1.89) 12,328 12,503
Interim dividend for the quarter ended 30 June 2025 of 1.99
(30 June 2024: 1.95) 12,436 12,858
24,764 25,361
A dividend for the quarter to 30 September 2025 of 1.99 pence per share was
approved by the Board on 18 November 2025 and is payable on 30 December 2025.
The dividend has not been included as a liability at 30 September 2025.
7. Earnings/(loss) per share
Earnings per share is calculated by dividing the profit attributable to equity
shareholders of the Company by the weighted average number of ordinary shares
in issue during the period:
Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Earnings/(loss)
Earnings/(loss) for the purposes of basic and diluted earnings per share, 9,537 (537)
being net profit attributable to owners of the Company
Number of shares
Time weighted average number of ordinary shares for the purposes of basic and 629,892,886 660,905,560
diluted earnings per share
The denominator for the purposes of calculating both basic and diluted
earnings per share is the same, as the Company has not issued any share
options or other instruments that would cause dilution. Shares held in
treasury are excluded from the calculation.
Six months ended 30 Sep 2025 (unaudited) £'000s Six months ended 30 Sep 2024 (unaudited) £'000s
Basic and diluted earnings/(loss) per share (pence) 1.5 (0.1)
8. Investments at fair value through profit or loss
As set out in note 1, the Company accounts for its interest in its 100% owned
subsidiary UK HoldCo as an investment at fair value through profit or loss. UK
HoldCo in turn owns investments in intermediate holding companies and
environmental infrastructure projects.
The table below shows the movement in the Company's investment in UK HoldCo as
recorded on the Company's statement of financial position:
30 Sep 2025 (unaudited) £'000s 31 Mar 2025 (audited) £'000s
Fair value of environmental infrastructure investments 751,872 765,674
Fair value of intermediate holding companies (97,403) (87,517)
Total fair value of investments 654,469 678,157
Reconciliation of movement in fair value of portfolio of assets
The table on the following page shows the movement in the fair value of the
Company's portfolio of environmental infrastructure assets. These assets are
held through other intermediate holding companies. The table on the following
page also presents a reconciliation of the fair value of the asset portfolio
to the Company's condensed unaudited statement of financial position as at 30
September 2025, by incorporating the fair value of these intermediate holding
companies.
Six months to 30 Sep 2025 (unaudited) Year to 31 Mar 2025 (audited)
Portfolio value £'000s Cash, working capital and debt in intermediate holding companies £'000s Total £'000s Portfolio value £'000s Cash, working capital and debt in intermediate holding companies £'000 Total £'000s
Opening balance 765,674 (87,517) 678,157 891,927 (138,355) 753,572
Acquisitions
Portfolio of assets acquired/further investment 7,923 - 7,923 30,722 - 30,722
Disposal of assets (1,175) - (1,175) (89,137) - (89,137)
6,748 - 6,748 (58,415) - (58,415)
Growth in portfolio¹ 19,124 - 19,124 22,585 - 22,585
Cash yields from portfolio to intermediate holding companies (39,674) 39,674 - (90,423) 90,423 -
Yields from intermediate holding companies
Interest on loan notes¹ - (14,931) (14,931) - (31,073) (31,073)
Dividends from UK HoldCo to the Company¹ - (22,400) (22,400) - (32,300) (32,300)
- (37,331) (37,331) - (63,373) (63,373)
Other movements
Investment in working capital in UK HoldCo - 15,225 15,225 - (19,512) (19,512)
Administrative expenses borne by intermediate holding companies¹,² - (5,481) (5,481) - (16,626) (16,626)
(Drawdown)/repayment of UK HoldCo revolving credit facility borrowings - (21,973) (21,973) - 59,926 59,926
Fair value of the Company's investment in UK HoldCo 751,872 (97,403) 654,469 765,674 (87,517) 678,157
1. The net loss on investments at fair value through profit or loss for the
period ended 30 September 2025 is £23,688,000 (year ended 31 March 2025: loss
of £57,415,000). This, together with interest received on loan notes of
£14,931,000 (year ended 31 March 2025: £31,073,000) and dividend income of
£22,400,000 (year ended 31 March 2025: £32,300,000) comprises operating
income in the condensed unaudited income statement.
2. Administrative expenses borne by intermediate holding companies includes
the payment of the Electricity Generator Levy.
The balances in the table on page 57 of the Half-year report 2025 represent
the total net movement in the fair value of the Company's investment. The
"cash, working capital and debt in intermediate holding companies" balances
reflect investment in, distributions from or movements in working capital and
are not value generating.
Fair value of portfolio of assets
The Investment Manager has carried out fair market valuations of the
investments as at 30 September 2025. The Directors have satisfied themselves
as to the methodology used and the discount rates applied for the valuation.
Investments are all investments in environmental infrastructure projects and
are valued using a discounted cash flow methodology, being the most relevant
and most commonly used method in the market to value similar assets to the
Company's. The Company's holding of its investment in UK HoldCo represents its
interest in both the equity and debt instruments. The equity and debt
instruments are valued as a whole using a blended discount rate and the value
attributed to the equity instruments represents the fair value of future
dividends and equity redemptions in addition to any value enhancements arising
from the timing of loan principal and interest receipts from the debt
instruments, while the value attributed to the debt instruments represents the
principal outstanding and interest due on the loan at the valuation date.
Assets under construction are valued at cost (which is deemed to approximate
fair value) until such time as the risks associated with construction have
substantially passed. For some technologies with more complex construction
activities, this will be when the asset reaches the start of commercial
operations, while for others this may be during late-stage construction.
The valuation techniques and methodology have been applied consistently with
the valuation performed in the Company's latest annual audited financial
statements.
Discount rates applied to the operating portfolio of assets range from 7.0% to
20.0% (weighted average 10.1%) (at 31 March 2025: from 7.0% to 18.4% -
weighted average 9.7%).
The following economic assumptions were used in the discounted cash flow
valuations:
30 Sep 2025 (unaudited) 31 Mar 2025 (audited)
UK - RPI inflation rates 4.0% for 2025, decreasing to 3.5% for 2026, decreasing to 3.0% until 2030, 3.5% for 2025, decreasing to 3% until 2030, decreasing to 2.25% from 2031
decreasing to 2.25% from 2031
Italy - inflation rates 2.0% flat rate 2.0% from 2025 onwards
Norway - inflation rates 2.0% flat rate n/a
UK - deposit interest rates 2.0% from 2026 onwards 2.0% from 2025 onwards
Italy - deposit rates 0% 0%
Norway - deposit rates 1.2% n/a
UK - corporation tax rates 25% from April 2026 onwards 25% from April 2025 onwards
Italy - corporation tax rates National rate of 24%, plus applicable regional premiums National rate of 24%, plus applicable regional premiums
Norway - corporation tax rates National rate of 22% n/a
Euro/sterling exchange rate 1.15 1.19
Refer to note 15 for details of the sensitivity of the portfolio to movements
in the discount rate and economic assumptions.
The assets in the intermediate holding companies substantially comprise
working capital, cash balances and the outstanding revolving credit facility
debt; therefore, the Directors consider the fair value to be equal to the book
values.
Details of investments made during the period
During the period, £0.7 million was invested in CNG Fuels. As at 30 September
2025, the portfolio held 16 operational stations under management, with
funding agreed for the construction of three further sites.
The Group also invested £4.8 million into the Rjukan project, £0.7 million
into a sub-portfolio of AD assets, £0.7 million into Sandridge battery
storage, €0.7 million into Foresight Energy Infrastructure Partners SCSp
("FEIP"), £0.2 million into Bio Collectors waste management and £0.2 million
to various other projects.
9. Trade and other receivables
30 Sep 2025 (unaudited) £'000s 31 Mar 2025 (audited) £'000s
Prepayments 46 19
Other debtors 2 2
Closing balance 48 21
10. Trade and other payables
30 Sep 2025 (unaudited) £'000s 31 Mar 2025 (audited) £'000s
Accruals 1,950 2,094
Closing balance 1,950 2,094
The accruals balance for the period ended 30 September 2025 includes an amount
of £1,541,000 for the investment management fee for the quarter to 30
September 2025, payable to Foresight Group LLP.
11. Loans and borrowings
The Company had no outstanding loans or borrowings at 30 September 2025 (31
March 2025: none), as shown in the Company's condensed unaudited statement of
financial position.
As at 30 September 2025, the Company held loan notes of £330.9 million which
were issued by UK HoldCo (31 March 2025: outstanding amount of £330.9
million).
As at 30 September 2025, UK HoldCo had an outstanding balance of £121.3
million under a revolving credit facility (31 March 2025: £99.3 million). The
loan bears interest between 205 bps and 215 bps over SONIA (Sterling Overnight
Index Average) for sterling drawings and Euribor (Euro Interbank Offered Rate)
for euro drawings.
There were no other outstanding loans or borrowings in either the Company, UK
HoldCo or HWT at 30 September 2025.
12. Share capital account and treasury shares
30 Sep 2025 (unaudited) 31 Mar 2025 (audited)
Number of shares £'000s Number of shares £'000s
Opening balance 637,443,058 645,245 661,531,229 664,401
Purchase of treasury shares (13,967,723) (10,749) (24,088,171) (19,156)
Closing balance 623,475,335 634,496 637,443,058 645,245
The number of voting shares at 30 September 2025 was 623,475,335 (total shares
in issue 661,531,229 less 38,055,894 shares kept in treasury as a result of
the share buyback programme that started on 30 August 2024).
13. Retained earnings
30 Sep 2025 (unaudited) £'000s 31 Mar 2025 (audited) £'000s
Opening balance 33,456 86,813
Earnings/(loss) for the period/year 9,537 (2,835)
Dividends paid (24,764) (50,522)
Closing balance 18,229 33,456
14. Transactions with the Investment Manager and related parties
Transactions between the Company and its subsidiaries, which are related
parties of the Company, are fair valued and are disclosed within note 8.
Details of transactions between the Company and related parties are disclosed
below.
This note also details the terms of the Company's engagement with Foresight
Group as Investment Manager.
Transactions with the Investment Manager
Foresight Group ("Foresight") is the Company's Investment Manager. Foresight's
appointment as Investment Manager is governed by an Investment Management
Agreement.
For the period under review, Foresight Group was entitled to a base fee equal
to:
(a) 0.95% per annum of the portfolio Net Asset Value of the
Fund(1) up to and including £500 million;
(b) 0.80% per annum of the portfolio Net Asset Value of the Fund on
the balance above £500 million up to and including £1 billion; and
(c) 0.75% per annum of the portfolio Net Asset Value of the Fund
in excess of £1 billion.
The total Investment Manager fee charged to the condensed unaudited income
statement for the six months ended 30 September 2025 was £3,112,000
(six-month period ended 30 September 2024: £3,974,000) of which £1,541,000
remained payable as at 30 September 2025 (31 March 2025: £1,530,000).
During the period, the Investment Manager, through its subsidiary Foresight
Asset Management Limited, charged asset management fees of £283,339 to the
underlying projects (30 September 2024: £218,254; 31 March 2025: £479,368).
1. Fund means the Company and Foresight Environmental Infrastructure (UK)
Limited together with their wholly owned subsidiaries or subsidiary
undertakings (including companies or other entities wholly owned by them
together, individually or in any combination, as appropriate) but excluding
project entities.
Other transactions with related parties
The Directors of the Company, who are considered to be key management,
received fees for their services for the six‑month period of £153,125
(six-month period ended 30 September 2024: £173,085). The Directors were paid
expenses of £2,831 in the six‑month period (six-month period ended 30
September 2024: £1,947).
The Directors held the following shares:
Total number of shares held 30 Sep 2025 (unaudited) Total number of shares held 31 Mar 2025 (audited)
Ed Warner 75,000 75,000
Alan Bates 25,000 25,000
Stephanie Coxon 45,000 45,000
Jo Harrison 8,066 8,066
Nadia Sood - -
All of the above transactions were undertaken on an arm's length basis.
The Directors were paid dividends in the period of £6,031 (six-month period
ended 30 September 2024: £5,465).
15. Financial instruments
Financial instruments by category
The Company held the following financial instruments at 30 September 2025.
There have been no transfers of financial instruments between levels of the
fair value hierarchy. There are no non‑recurring fair value measurements.
30 Sep 2025 (unaudited)
Cash and cash balances £'000s Financial assets held at amortised cost £'000s Financial assets at fair value through profit or loss £'000s Financial liabilities at amortised cost £'000s Total £'000s
Non-current assets
Investments at fair value through profit or loss (Level 3) - - 654,469 - 654,469
Current assets
Trade and other receivables - 48 - - 48
Cash and cash equivalents 158 - - - 158
Total financial assets 158 48 654,469 - 654,675
Current liabilities
Trade and other payables - - - (1,950) (1,950)
Total financial liabilities - - - (1,950) (1,950)
Net financial instruments 158 48 654,469 (1,950) 652,725
31 Mar 2025 (audited)
Cash and cash balances £'000s Financial assets held at amortised cost £'000s Financial assets at fair value through profit or loss £'000s Financial liabilities at amortised cost £'000s Total £'000s
Non-current assets
Investments at fair value through profit or loss (Level 3) - - 678,157 - 678,157
Current assets
Trade and other receivables - 21 - - 21
Cash and cash equivalents 2,617 - - - 2,617
Total financial assets 2,617 21 678,157 - 680,795
Current liabilities
Trade and other payables - - - (2,094) (2,094)
Total financial liabilities - - - (2,094) (2,094)
Net financial instruments 2,617 21 678,157 (2,094) 678,701
The Company's investments at fair value through profit or loss are classified
at Level 3 within the IFRS fair value hierarchy.
The Level 3 fair value measurements derive from valuation techniques that
include inputs to the asset or liability that are not based on observable
market data (unobservable inputs).
In the tables above, financial instruments are held at carrying value as an
approximation to fair value unless stated otherwise.
Reconciliation of Level 3 fair value measurement of financial assets and
liabilities
There were no transfers into or out of level 3 investments in the period.
An analysis of the movement between opening to closing balances of the
investments at fair value through profit or loss is given in note 8.
The fair value of the investments at fair value through profit or loss
includes the use of Level 3 inputs. Please refer to note 8 for details on the
valuation methodology.
Sensitivity analysis of the portfolio
The sensitivity of the portfolio to movements in the discount rate is as
follows:
30 Sep 2025 (unaudited)
Discount rate Minus 0.5% Base 10.1% Plus 0.5%
Change in portfolio valuation Increases £19.4m £751.9m Decreases £18.2m
Change in NAV per share Increases 3.1p 104.7p Decreases 2.9p
31 Mar 2025 (audited)
Discount rate Minus 0.5% Base 9.7% Plus 0.5%
Change in portfolio valuation Increases £18.0m £765.7m Decreases £17.2m
Change in NAV per share Increases 2.8p 106.5p Decreases 2.7p
The sensitivity of the portfolio to movements in inflation rates is as
follows:
30 Sep 2025 (unaudited)
Inflation rates Minus 0.5% Base 4.0% (2025), Plus 0.5%
then 3.5% to 2026,
then 3.0% to 2030,
then 2.25%
Change in portfolio valuation Decreases £13.3m £751.9m Increases £14.1m
Change in NAV per share Decreases 2.1p 104.7p Increases 2.3p
31 Mar 2025 (audited)
Inflation rates Minus 0.5% Base 3.5% (2025), Plus 0.5%
then 3% to 2030,
then 2.25%
Change in portfolio valuation Decreases £20.4m £765.7m Increases £20.6m
Change in NAV per share Decreases 3.2p 106.5p Increases 3.2p
The fair value of the 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.
Wind, solar and hydro assets are subject to electricity generation risks.
The sensitivity of the portfolio to movements in energy yields based on an
assumed "P90" level of electricity generation (i.e. a level of generation that
is below the "P50", with a 90% probability of being exceeded) and an assumed
"P10" level of electricity generation (i.e. a level of generation that is
above the "P50", with a 10% probability of being achieved) is as follows:
30 Sep 2025 (unaudited)
Energy yield: wind P90 (10 year) Base P50 P10 (10 year)
Change in portfolio valuation Decreases £22.4m £751.9m Increases £22.4m
Change in NAV per share Decreases 3.6p 104.7p Increases 3.6p
Energy yield: solar P90 (10 year) Base P50 P10 (10 year)
Change in portfolio valuation Decreases £7.4m £751.9m Increases £7.5m
Change in NAV per share Decreases 1.2p 104.7p Increases 1.2p
Energy yield: hydro P90 (10 year) Base P50 P10 (10 year)
Change in portfolio valuation Decreases £1.0m £751.9m Increases £0.9m
Change in NAV per share Decreases 0.2p 104.7p Increases 0.2p
31 Mar 2025 (audited)
Energy yield: wind P90 (10 year) Base P50 P10 (10 year)
Change in portfolio valuation Decreases £21.8m £765.7m Increases £21.2m
Change in NAV per share Decreases 3.4p 106.5p Increases 3.3p
Energy yield: solar P90 (10 year) Base P50 P10 (10 year)
Change in portfolio valuation Decreases £7.9m £765.7m Increases £8.1m
Change in NAV per share Decreases 1.2p 106.5p Increases 1.3p
Energy yield: hydro P90 (10 year) Base P50 P10 (10 year)
Change in portfolio valuation Decreases £1.2m £765.7m Increases £1.3m
Change in NAV per share Decreases 0.2p 106.5p Increases 0.2p
Electricity and gas price assumptions are based on the following: for the
first two years, cash flows for each project use forward electricity and gas
prices based on market rates unless a contractual fixed price exists, in which
case the model reflects the fixed price followed by the forward price for the
remainder of the two‑year period. For the remainder of the project life, a
long‑term blend of central case forecasts from three established market
consultants and other relevant information is used, and adjusted by the
Investment Manager for project‑specific arrangements and price
cannibalisation.
The 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 movements in excess of +/-10% on a short‑term basis, as has been
the case recently, 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. The Directors feel that +/-10% remains a realistic
range of outcomes over this very long time horizon, notwithstanding that
significant movements will occur from time to time.
The sensitivity of the portfolio to movements in electricity and gas prices is
as follows:
30 Sep 2025 (unaudited)
Energy prices Minus 10% Base Plus 10%
Change in portfolio valuation Decreases £33.1m £751.9m Increases £33.8m
Change in NAV per share Decreases 5.3p 104.7p Increases 5.4p
31 Mar 2025 (audited)
Energy prices Minus 10% Base Plus 10%
Change in portfolio valuation Decreases £35.3m £765.7m Increases £35.9m
Change in NAV per share Decreases 5.5p 106.5p Increases 5.6p
Waste & bioenergy assets (excluding Bio Collectors) do not have
significant volume and price risks and therefore are not included in the above
volume and price sensitivities.
In line with FGEN's original investment case for anaerobic digestion, the
Company continues to apply the conservative valuation assumption that
facilities will simply cease to operate beyond the life of their RHI tariff.
In recent periods, the Investment Manager has seen a growing case of evidence,
including several transactional datapoints, pointing towards a positive change
in market sentiment for valuing these assets - including the potential to run
anaerobic digestion facilities on an unsubsidised basis and into perpetuity -
recognising the scarcity and valuable nature of UK green gas.
In light of this evidence, the Investment Manager has modelled potential
avenues to extend the lives of its AD portfolio; expecting that revenues will
be derived through a combination of corporate offtake, green certificates
(such as RTFCs) and potentially a lower level of government support mechanism.
On this basis, the Investment Manager considers a realistic result would be to
provide a value uplift of between £10 million to £20 million (1.6 to 3.2
pence per share) and to significantly extend the weighted average life of the
Company.
The UK government is currently developing a future policy framework for
biomethane production, and these sensitivities will be refined as more
information is released.
The sensitivity of the portfolio to movements in AD feedstock prices is as
follows:
30 Sep 2025 (unaudited)
Feedstock prices Minus 10% Base Plus 10%
Change in portfolio valuation Increases £7.4m £751.9m Decreases £7.1m
Change in NAV per share Increases 1.2p 104.7p Decreases 1.1p
31 Mar 2025 (audited)
Feedstock prices Minus 10% Base Plus 10%
Change in portfolio valuation Increases £6.8m £765.7m Decreases £6.5m
Change in NAV per share Increases 1.1p 106.5p Decreases 1.0p
The sensitivity of the portfolio to movements in corporation tax rates is as
follows:
30 Sep 2025 (unaudited)
Corporation tax Minus 2% Base 25% Plus 2%
Change in portfolio valuation Increases £13.1m £751.9m Decreases £12.5m
Change in NAV per share Increases 2.1p 104.7p Decreases 2.0p
31 Mar 2025 (audited)
Corporation tax Minus 2% Base 25% Plus 2%
Change in portfolio valuation Increases £11.4m £765.7m Decreases £11.3m
Change in NAV per share Increases 1.8p 106.5p Decreases 1.8p
Euro/sterling and NOK/sterling exchange rates
The proportion of the portfolio assets with cash flows denominated in foreign
currency represents 12% of the portfolio value at 30 September 2025. If
foreign currency strengthens by 5%, the value uplift will be £4.7 million
(0.8 pence per share) compared to a £4.5 million (0.7 pence per share)
decrease in value if FX weakens by the same amount.
Uncontracted revenues on non-energy generating portfolio sensitivity
Non-energy generating assets, such as batteries and controlled environment
agriculture and aquaculture, are not materially affected by either scarcity of
natural resource or power price markets. Therefore, the Investment Manager has
presented an alternative sensitivity illustrating an assumed 10% increase or
decrease on all uncontracted revenues for each year of the asset lives.
An increase in uncontracted revenues of 10% would result in an upward movement
in the portfolio valuation of £18.0 million (2.9 pence per share) compared to
a decrease in value of £18.0 million (2.9 pence per share) if those revenues
were reduced by the same amount.
Government consultation on ROC/FiT indexation
On 31 October 2025, the UK government's Department for Energy Security and Net
Zero ("DESNZ") published a consultation exploring proposed changes to the
inflation indexation of the Renewables Obligation ("RO") scheme and Feed-in
Tariffs ("FiTs"). The consultation outlines two potential approaches:
1. To bring forward the date on which the inflation index for these
arrangements moves from RPI to CPI from 2030 to 2026.
2. Temporarily freeze existing RO and FiT pricing until CPI inflation catches
up with RPI, which is estimated to occur around 2034/35. After which, CPI
indexation would apply.
Consistent with the Company's announcement on 14 November 2025, the Investment
Manager has modelled each scenario and estimated the following potential
impact on the Company's NAV per share:
· Option 1: Estimated NAV reduction of 0.5 pence per share (0.5% of NAV)
· Option 2: Estimated NAV reduction of 6.6 pence per share (6.3% of NAV)
Estimates are based on currently available information and may evolve as the
consultation progresses.
Alongside consideration of the impact on NAV per share, the Investment Manager
has also concluded that there would be no material impact on near-term
dividend cover from either scenario.
The Directors consider that the carrying value amounts of financial assets and
financial liabilities recorded at amortised cost in the financial statements
are approximately equal to their fair values.
16. Guarantees and other commitments
As at 30 September 2025, the Company has provided a guarantee over the
Company's wholly owned subsidiary UK HoldCo's obligations under the £150
million revolving credit facility.
On 13 June 2024, UK HoldCo refinanced the £200 million revolving credit
facility with a three-year agreement with ING, HSBC, National Australia Bank,
Royal Bank of Scotland International and Clydesdale Bank. The contract
includes an uncommitted accordion facility of up to £30 million and an
uncommitted option to extend for a further year. Subsequently, the committed
facility of £200 million was voluntarily reduced to £150 million with effect
from 25 April 2025 with no change on the accordion facility.
As at 30 September 2025, the Group has the following future investment
obligations over a 12-month horizon: £6.0 million to Vulcan Renewables PRS,
£5.5 million to CNG Fuels, £1.5 million to a sub-portfolio of AD assets,
£2.1 million to Cramlington, £1.4 million to Sandridge battery storage,
€2.0 million (equivalent to £1.8 million) to Foresight Energy
Infrastructure Partners ("FEIP"), NOK 14.4 million (equivalent to £1.1
million) to the Rjukan project, £2.0 million to the Glasshouse project, £0.6
million to Bio Collectors waste management and £0.7 million in other
projects.
The Company had no other commitments or guarantees.
17. Subsidiaries and associates
The following subsidiaries and associates have not been consolidated in these
financial statements as a result of applying the requirements of "Investment
Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12
and IAS 27)":
Place of business Registered office Ownership interest Voting rights
Subsidiaries Category
Foresight Environmental Infrastructure (UK) Limited Intermediate holding UK A 100% 100%
HWT Limited Intermediate holding UK B 100% 100%
Easton PV Limited Project holding company UK A 100% 100%
Pylle Solar Limited Project holding company UK A 100% 100%
Second Energy Limited Operating subsidiary UK A 100% 100%
JLEAG Wind Holdings Limited Project holding company UK A 100% 100%
JLEAG Wind Limited Project holding company UK A 100% 100%
Amber Solar Parks (Holdings) Limited Project holding company UK D 100% 100%
Amber Solar Park Limited Operating subsidiary UK D 100% 100%
Bilsthorpe Wind Farm Limited Operating subsidiary UK E 100% 100%
Ferndale Wind Limited Project holding company UK E 100% 100%
Castle Pill Wind Limited Project holding company UK E 100% 100%
Wind Assets LLP Operating subsidiary UK E 100% 100%
Hall Farm Wind Farm Limited Operating subsidiary UK E 100% 100%
Branden Solar Parks (Holdings) Limited Project holding company UK A 100% 100%
Branden Solar Parks Limited Operating subsidiary UK A 100% 100%
KS SPV 3 Limited Operating subsidiary UK A 100% 100%
KS SPV 4 Limited Operating subsidiary UK A 100% 100%
Carscreugh Renewable Energy Park Limited Operating subsidiary UK E 100% 100%
Wear Point Wind Limited Operating subsidiary UK E 100% 100%
Monksham Power Ltd Project holding company UK A 100% 100%
Frome Solar Limited Operating subsidiary UK A 100% 100%
BL Wind Limited Operating subsidiary UK E 100% 100%
New Albion Wind Limited Operating subsidiary UK E 100% 100%
Dreachmhor Wind Farm Limited Operating subsidiary UK E 100% 100%
France Wind GP Germany GmbH(1) Project holding company DE F 100% 100%
France Wind Germany GmbH & Co. KG(1) Project holding company DE F 100% 100%
CSGH Solar Limited Project holding company UK A 100% 100%
CSGH Solar (1) Limited Project holding company UK A 100% 100%
sPower Holdco 1 (UK) Limited Project holding company UK D 100% 100%
sPower Finco 1 (UK) Limited Project holding company UK D 100% 100%
Higher Tregarne Solar (UK) Limited Operating subsidiary UK A 100% 100%
Crug Mawr Solar Farm Limited Operating subsidiary UK A 100% 100%
Golden Hill Solar (UK) Limited Project holding company UK D 100% 100%
Golden Hill Solar Limited Operating subsidiary UK A 100% 100%
Shoals Hook Solar (UK) Limited Operating subsidiary UK A 100% 100%
CGT Investment Limited Project holding company UK G 100% 100%
CWMNI GWYNT TEG CYF Operating subsidiary UK G 100% 100%
Moelogan 2 (Holdings) Cyfyngedig Project holding company UK G 100% 100%
Moelogan 2 C.C.C. Operating subsidiary UK G 100% 100%
Llynfi Afan Renewable Energy Park Limited Operating subsidiary UK E 100% 100%
Bio Collectors Holdings Limited Project holding company UK J 100% 100%
Bio Collectors Limited Operating subsidiary UK J 100% 100%
Riverside Bio Limited Operating subsidiary UK J 100% 100%
Riverside AD Limited Operating subsidiary UK J 100% 100%
Yorkshire Hydropower Holdings Limited Project holding company UK E 100% 100%
Yorkshire Hydropower Limited Operating subsidiary UK E 100% 100%
Northern Hydropower Holdings Limited Project holding company UK E 100% 100%
Northern Hydropower Limited Operating subsidiary UK E 100% 100%
Codford Biogas Limited Operating subsidiary UK M 100% 100%
Rainworth Energy Limited Operating subsidiary UK K 100% 100%
FS West Gourdie Limited Operating subsidiary UK A 100% 100%
Spruce Bioenergy Limited Project holding company UK A 100% 100%
Cramlington Renewable Energy Developments Limited Operating subsidiary UK L 100% 100%
Fryingdown Solar Park Limited Non-trading entity UK D 100% 100%
Five Oaks Solar Park Limited Non-trading entity UK D 100% 100%
ELWA Holdings Limited Project holding company UK L 80% 80%
ELWA Limited(2) Operating subsidiary UK L 80% 81%(3)
Green Gas Oxon Limited Project holding company UK I 52.6% 52.6%
Icknield Gas Limited Operating subsidiary UK I 52.6% 52.6%
Foresight Biomass Holding Italy S.r.l. Project holding company IT N 45% 45%
Energie Tecnologie Ambiente S.r.l. Operating associate IT N 45% 45%
Foresight Rjukan Holding Limited Project holding company UK A 43% 43%
Catchment Tay Holdings Limited Project holding company UK O 33.3% 33.3%
Catchment Tay Limited Operating associate UK O 33.3% 33.3%
Foresight Hydrogen HoldCo GmbH Project holding company DE P 40.1% 40.1%
Hima Seafood Rjukan AS Operating associate NO Q 25% 25%
HH2E Werk Thierbach GmbH Operating associate DE R 23% 23%
HH2E Werk Lubmin GmbH(3) Operating associate DE R 23% 23%
HH2E AG Project holding company DE R 23% 23%
Sandridge Battery Storage Limited Operating associate UK A 50% 50%
Clayfords Energy Storage Limited Operating associate UK S 50% 50%
AD Holdco 1 Limited Project holding company UK H 49% 49%
Egmere Energy Limited Operating associate UK H 49% 49%
Warren Energy Limited Operating associate UK H 49% 49%
Vulcan Renewables Limited Operating associate UK H 49% 49%
Grange Farm Energy Limited Operating associate UK H 49% 49%
Merlin Renewables Limited Operating associate UK H 49% 49%
Biogas Meden Limited Operating associate UK H 49% 49%
Foresight Battery Storage Holdings Limited Project holding company UK A 50% 50%
JLEAG AD Limited Project holding company UK A 49% 49%
Peacehill Gas Limited Operating associate UK T 49% 49%
CNG Foresight Holdings Limited Project holding company UK A 25% 25%
1. Underlying French wind assets were disposed of in January 2022.
2. ELWA Holdings Limited holds 81% of the voting rights and a 100% share of
the economic benefits in ELWA Limited.
3. HH2E Werk Lubmin GmbH was sold in October 2025
Registered offices
(A) The Shard, C/O Foresight Group LLP, 32 London Bridge Street,
London SE1 9SG
(B) 50 Lothian Road, Festival Square, Edinburgh, Midlothian EH3
9WJ
(C) 1 Filament Walk, Suite 203, Wandsworth, London SW18 4GQ
(D) The Long Barn, Manor Courtyard, Stratton-On-The-Fosse,
Radstock BA3 4QF
(E) C/O RES White Limited, Beaufort Court, Egg Farm Lane, Kings
Langley, Hertfordshire WD4 8LR
(F) Steinweg 3-5, Frankfurt Am Main, 60313, Germany
(G) Cae Sgubor Ffordd Pennant, Eglwysbach, Colwyn Bay, Conwy LL28
5UN
(H) 10-12 Frederick Sanger Road, Guildford, Surrey GU2 7YD
(I) Friars Ford, Manor Road, Goring, Reading RG8 9EL
(J) 10 Osier Way, Mitcham, Surrey CR4 4NF
(K) C/O Material Change, The Amphenol Building, 46-50 Rutherford
Drive, Park Farm Industrial Estate, Wellingborough NN8 6AX
(L) 8 White Oak Square, London Road, Swanley BR8 7AG
(M) C/O External Services Limited, 20 Central Avenue, St Andrews
Business Park, Norwich NR7 0HR
(N) Piazza Barberini 52, 00187, Rome, Italy
(O) C/O Infrastructure Managers Limited, 2nd Floor Drum Suite,
Saltire Court, 20 Castle Terrace, Edinburgh EH1 2EN
(P) C/O Intertrust (Deutschland) GmbH, Eschersheimer Landstraße
14, 60322 Frankfurt am Main
(Q) Skriugata 26, 3660, Rjukan
(R) Kaiser-Wilhelm-Straße 93, 20355 Hamburg
(S) Foresight Group LLP, Clarence House, 133 George Street,
Edinburgh EH2 4JS
(T) Peacehill Farm, Wormit, Fife DD6 8PJ
18. Events after statement of financial position
A dividend for the quarter to 30 September 2025 of 1.99 pence per share was
approved by the Board on 18 November 2025. Please refer to note 6 for further
details. The interim dividend will be paid on 30 December 2025.
Since the date of the condensed unaudited statement of financial position,
137,000 of the Company's shares were bought back for the total consideration
of £0.1 million and average price paid of 69.75 pence per share.
Alternative performance measures ("APMs")
APM Purpose Calculation APM value Reconciliation to IFRS
Total shareholder return (since IPO and annualised) Measure of financial performance, indicating the amount an investor reaps from Since IPO: closing share price as at 30 September 2025 plus all dividends 44.8% Calculation for total shareholder return since IPO: closing share price as at
investing since IPO and expressed as a percentage (annualised or total since since IPO assumed reinvested, divided by the share price at IPO, expressed as
30 September 2025 as per key investments metrics on page 43 of the Half-year
IPO of the Fund) a percentage (HY24: 69.4%) report 2025 plus all dividends since IPO assumed reinvested, divided by the
share price at IPO, expressed as a percentage
Annualised: closing share price as at 30 September 2025 plus all dividends 3.3% annualised Calculation for annualised total shareholder return: closing share price as at
since IPO assumed reinvested, divided by the share price at IPO, to the power
30 September 2025 as per key investment metrics on on page 43 of the Half-year
of one over the number of years since IPO, expressed as a percentage (HY24: 5.1%) report 2025 plus all dividends since IPO assumed reinvested, divided by the
share price at IPO, to the power of one over the number of years since IPO,
expressed as a percentage
Net Asset Value per share Allows investors to gauge whether shares are trading at a premium or a The net assets divided by the number of ordinary shares in issuance 104.7 pence The calculation divides the net assets as per the statement of financial
discount by comparing the Net Asset Value per share with the share price
position on page 50 of the Half-year report 2025 by the closing number of
(FY25: 106.5 pence) ordinary shares in issue as per note 12 on page 59 of the Half-year report
2025.
Market capitalisation Provides an indication of the size of the Company Closing share price as at 30 September 2025 multiplied by the closing number £436.4 million The calculation uses the closing share price as at 30 September 2025 as per
of ordinary shares in issuance
the key investment metric table on page 43 of the Half-year report 2025 and
(FY25: £457.0 million) the closing number of ordinary shares as per note 12 of the financial
statements on page 59 of the Half-year report 2025.
Gross Asset Value ("GAV") A measure of the value of the Company's total assets The sum of total assets of the Company as shown on the statement of financial £940.0 million This is the total debt (RCF drawn: £121.3 million plus project-level debt:
position and the total debt of the Group and underlying investments
£166.0 million) plus the Net Asset Value as per the statement of financial
(FY25: £951.3 million) position on page 50 of the Half-year report 2025.
Gross Asset Value on investment basis including debt held at SPV level
Gearing Ascertain financial risk in the Group's balance sheet Total debt of the Group and underlying investments as a percentage of GAV 30.6% The calculation uses the total debt (RCF drawn: £121.3 million plus
project-level debt: £166.0 million) and shows this as a percentage of the GAV
(HY24: 28.7%)
Distributions, repayments and fees from portfolio A measure of performance from the underlying portfolio Total cash received from investments in the period £39.7 million (HY24: £46.6 million) As per "Cash flows of the Group for the period", also titled "Cash
distributions from environmental infrastructure investments" on page 45 of the
Half-year report 2025.
Cash flow from operations of the Group Gauges operating revenues and expenses of the Group As per the "Cash flows of the Group for the period" table on page 45 of the £30.1 million (HY24: £31.3 million) Detailed breakdown as per page 45 of the Half-year report 2025 in the "Cash
Half-year report 2025, the calculation takes the cash distributions from flows of the Group for the period"
environmental infrastructure investments and subtracts the following:
administrative expenses, Directors' fees and expenses, Investment Manager
fees, financing costs (net of interest income)
Cash dividend cover Investors can gauge the ability of the Group to generate cash surplus after Cash flow from operations of the Group divided by dividend paid within the 1.22x The calculation uses the cash flows from operations as per "Cash flows of the
payment of dividend reporting period
Group for the period" on page 45 of the Half-year report 2025 and the
(HY24: 1.23x) dividends paid in cash to shareholders as per the cash flow statement on page
52 of the Half-year report 2025.
Ongoing charges ratio A measure of the annual reduction in shareholder returns due to operational The ongoing charges have been calculated, in accordance with AIC guidance, as 1.15% Annualised ongoing charges for the period ended 30 September 2025 have been
expenses, based on historical data annualised ongoing charges (i.e. excluding acquisition costs and other
calculated as £7.5 million. The ongoing charges ratio divides this by the
non-recurring items) divided by the average published undiluted Net Asset (FY25: 1.24%) published average Net Asset Value over the last two quarters to the
Value in the period. Total annualised ongoing charges include Investment calculation date (including 30 September 2025)
Manager fees, legal and professional fees, administration fees and Directors'
fees
Annualised NAV total return since IPO Measure of financial performance (annualised), which indicates the movement of Closing NAV per ordinary share as at 30 September 2025 plus all dividends 7.2% Calculated as the closing NAV per ordinary share as per the statement of
the value of the Company since IPO since IPO assumed reinvested, divided by the NAV at IPO, to the power of one,
financial position on page 50 of the Half-year report 2025.
over the number of years since IPO (HY24: 7.6%)
ENDS
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Copyright 2019 Regulatory News Service, all rights reservedRecent news on Foresight Environmental Infrastructure
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