REG - Foresight Envr - Net Asset Value and Dividend Announcement

Foresight Environmental InfrastructureAnnouncement

06/08/2025 07:00

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RNS Number : 1223U  Foresight Environmental Infrastruct  06 August 2025

Wednesday 6 August 2025

 

FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED

 

("FGEN" or the "Company")

 

Net Asset Value and Dividend Announcement

 

The Board of FGEN, a leading investor in private environmental infrastructure
assets across the UK and mainland Europe, announces that its unaudited Net
Asset Value ("NAV") at 30 June 2025 was £659.1 million (104.6 pence per
share). After paying the quarterly dividend of 1.95 pence per share, the
Company delivered a NAV Total Return of 0.05% for the quarter.

 

Highlights in the period

 

·   NAV of £659.1 million as at 30 June 2025 (£678.7 million as at 31
March 2025). NAV per share of 104.6 pence, down 1.9 pence (-1.8%) from 106.5
pence at 31 March 2025.

·   Delivering on dividend commitment: Quarterly dividend declared of 1.99
pence in line with the Company's target of 7.96 pence per share for the year
to 31 March 2026, a 2.1% uplift on the previous financial year.

·   Active discount control through the repurchase of 7,502,400 shares in
the quarter ended 30 June 2025. Total buybacks to date since 15 August 2024 of
£26.7 million as part of the ongoing £30 million programme.

·   Revolving Credit Facility ("RCF") downsized to £150 million in April
2025, as part of the Company's ongoing commitment to conservative management
of debt. Gearing of 30% at 30 June 2025 (28.7% at 31 March 2025).

·  Cash generation remains strong, with the Company's diversification
strategy continuing to demonstrate resilience with dividend cover of c.1.2x
anticipated for the year, after amortisation of project debt facilities.

 

Summary of changes in NAV:

                                                                       NAV per share
 NAV at 31 March 2025                                                  106.5p
 Dividends paid in the period                                          -2.0p
 Power price forecasts                                                 -1.6p
 Battery energy storage                                                -0.3p
 Inflation                                                             +0.4p
 Portfolio performance                                                 -0.3p
 Uplift from share buy-back programme                                  +0.4p
 Other movements (including discount rate unwind less fund overheads)  +1.5p
 NAV at 30 June 2025                                                   104.6p

 

Valuation factors

 

Power prices

 

The Company controls its exposure to fluctuations in power and gas pricing
through high levels of contracted revenues and considered diversification
across different sectors and technologies that reduces its reliance on energy
generation. As a result, an average downward revision to long term curves
provided by independent third-party consultants of 2.2%, led to a limited NAV
per share impact of 1.6 pence in the period to 30 June 2025.

 

Battery storage assets

 

Updates to third-party revenue curves for FGEN's 50MW operational battery
energy storage system led to a reduction in NAV per share of 0.2 pence and
increased grid costs led to a reduction in the valuation of the
pre-construction Lunanhead facility totalling 0.1 pence.

 

Inflation

 

The Company's inflation forecast for the remainder of 2025 has been increased
from 3.5% to 4.0% to reflect actual inflation to date, leading to an increase
in NAV per share of 0.4 pence.

 

Inflation assumptions beyond 2025 remain unchanged at 3.0% to 2030 and 2.25%
thereafter.

 

Portfolio performance

 

The Company's diversification strategy continues to demonstrate resilience,
with lower generation experienced by some asset classes offset by positive
performance at others - leading to an overall variance against budget of -4.8%
for the quarter ended 30 June 2025.

 

Notable sectors include underperformance from the wind portfolio primarily
driven by low wind resource over April and May and an extended period of
downtime at the Company's biomass facility, offset by strong performance
across solar and anaerobic digestion portfolios.

 

In addition, the Company continues to focus on its growth assets, in line with
the strategic update published on 3 June, where we continue to make progress.
In particular, the Rjukan aquaculture facility in Norway carried out a first
trout harvest, achieving a key milestone as the asset transitions from
construction to operational readiness and first sales in the coming weeks.

 

Gearing

 

In line with the Company's stated approach to capital allocation and prudent
debt management, FGEN continues to maintain one of the lowest gearing levels
in the sector. As at 30 June 2025 total gearing was 30%, with £112.4 million
drawn under the Company's Revolving Credit Facility.

 

Dividend

 

The Company also announces a quarterly interim dividend of 1.99 pence per
share for the quarter ended 30 June 2025, in line with the dividend target of
7.96 pence per share for the year to 31 March 2026, as set out in the 2025
Annual Report - which represents a yield of 9.7% on the closing share price on
5 August 2025.

 

Dividend Timetable

 

Ex-dividend date         4 September 2025

Record date                5 September 2025

Payment date              26 September 2025

 

This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No.596/2014.

 

Contacts

 

For further information, please visit www.fgen.com or contact:

 

Foresight
Group
+44(0)20 3667 8100

Chris Tanner
 
fgenir@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 (Guernsey)Limited +44 (0)20 3530 3600

Matt
Lihou
fgen@apexgroup.com

 

 

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 share¹.

 

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 and LinkedIn page.

 

(1) These are targets only and not profit forecasts. There can be no assurance
that these targets will be met or that the Company will make any distributions
at all.

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