REG - Foresight Envr - Net Asset Value and Dividend Announcement

Foresight Environmental InfrastructureAnnouncement

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RNS Number : 2456U  Foresight Environmental Infrastruct  25 February 2026

Wednesday 25 February 2026

 

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 31 December 2025 was £651.7 million (104.6 pence per
share). After paying the quarterly dividend of 1.99 pence per share, the
Company delivered a positive NAV Total Return of 1.8% for the quarter.

 

Highlights in the period

 

·   NAV of £651.7 million as at 31 December 2025 (£652.7 million as at 30
September 2025). NAV per share of 104.6 pence, broadly in-line with the end of
the prior quarter (104.7 pence as at 30 September 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.

·   Cash generation remains robust, underpinned by the resilience of the
Company's diversification strategy, FGEN remains on track to deliver a
dividend cover of 1.20x-1.30x for the year after amortising project debt
facilities.

·   Maintaining a conservative balance sheet remains a key priority.
Gearing of 30.9% at 31 December 2025 (30.6% at 30 September 2025).

·   Income and growth potential with Rjukan, the Glasshouse and CNG Fuels
continuing to progress through their ramp-up phases.

 

Ed Warner, Chair of FGEN said:

"FGEN has delivered another quarter of stable performance, with NAV broadly
unchanged and cash generation remaining robust. Our diversified portfolio
continues to demonstrate its resilience, supporting our confidence in meeting
the dividend target for the year while maintaining strong dividend cover.

 

"We remain firmly committed to a disciplined approach to gearing and balance
sheet management, ensuring the Company is well positioned for long‑term
sustainable growth.

 

"Our growth assets - including Rjukan, the Glasshouse and CNG Fuels - are
progressing through their ramp‑up phases and we see some encouraging signs
that support the growth and value-creation potential of the portfolio."

 

Summary of changes in NAV:

                                                                       NAV per share
 NAV at 30 September 2025                                              104.7p
 Dividends paid in the period                                          -2.0p
 Power price forecasts                                                 -0.9p
 RO/FIT consultation outcome                                           -0.5p
 Battery energy storage forecasts                                      +0.4p
 Inflation                                                             +0.1p
 Portfolio performance                                                 -0.1p
 Other movements (including discount rate unwind less fund overheads)  +2.9p
 NAV at 31 December 2025                                               104.6p

 

Valuation factors

 

Power price forecasts

 

Short-term power price forecasts provided by independent third-party
consultants have softened since the prior valuation date. While this has
reduced forward merchant pricing assumptions across the portfolio, the impact
has been partially offset by the Company's existing power price fixes and
contracted revenues across a diversified pool of underlying sectors. Overall,
the net effect of updated power price forecasts was a reduction in NAV per
share of 0.9 pence.

 

RO/FIT consultation outcome

 

In line with the Company's announcement on 14 November 2025, updated
assumptions reflecting the outcome of the UK Government's Renewable Obligation
and Feed-in Tariffs consultation have been incorporated into the valuation.
From 1 April 2026, both schemes will be indexed at the Consumer Price Index
("CPI"). The impact of these changes reduced NAV per share by 0.5 pence in the
period.

 

Battery energy storage forecasts

 

Updated third-party revenue forecasts for FGEN's 100MW operational battery
energy storage assets reflect a recovery in market conditions across South
England and Scotland. The revised assumptions resulted in an increase in NAV
per share of 0.4 pence.

 

Inflation

 

Inflation inputs have been updated to reflect the December-to-December actuals
for 2025, with RPI and CPI set at 4.18% and 3.32% respectively.

 

The CPI forecast has been revised to 2.5% from 2026 to 2030, based on
third-party forecasts, with longer-term assumptions unchanged. The net impact
of updated inflation assumptions increased NAV per share by 0.1 pence.

 

Portfolio performance

 

Overall, the portfolio performed broadly in line with expectations, with
energy generation being 1.6% under budget before any potential recoveries are
considered through either the contractual security in place with external
operators or through insurance means.

 

Within that, national wind speeds and solar irradiance performed below long
run averages and unplanned downtime occurred at FGEN's biomass facility due to
leaks in sections of the boiler which are currently being assessed. Offsetting
that is another period of exceptional above-budget performance from the
Company's crop-based anaerobic digestion investments - again showing the
importance of a diversified portfolio across technologies that include crucial
baseload assets that are less susceptible to short term fluctuations in
weather patterns.

 

After another period of resilient operational performance, the Company remains
on track to deliver a slightly improved full year dividend cover versus the
1.22x reported for the first six months of the financial year.

 

 

Other NAV movements

 

The usual discount rate unwind net of fund operating costs accounted for 2.1
pence per share of the overall positive movement of 2.9 pence per share for
the period. The majority of the balance is driven by two specific value
enhancement initiatives.

 

The Pressure Reduction System which underpins the Gas Shipping value
enhancement initiative at Vulcan Renewables contributed 0.6 pence per share to
the NAV this quarter, reflecting further value realisation through newly
agreed offtake arrangements and continued strong performance on site.

 

In addition, CNG Fuels' renewable transport fuel certificate pricing
assumptions were raised to 27p, reflecting sustained recent performance and
market expectations, adding 0.4 pence per share.

 

Update on status of FGEN's growth assets

 

CNG Fuels continues to perform strongly, with biomethane‑fuelled HGVs
remaining the leading large‑scale decarbonisation option supporting a 15%
year‑on‑year increase in fuel dispensed, alongside growing adoption of
heavier 6x2 vehicles. The RTFC business also remains strongly
cash‑generative. At the Rjukan aquaculture facility, operations continue to
be optimised and refined following first harvest in 2025 with a gradual
production ramp up to the long-term target of 8,000 tonnes of sales per annum
by 2028 and EBITDA breakeven forecast for H1 2027 as a critical milestone.
Meanwhile, the Glasshouse continues to show strong traction as the UK's
leading domestic supplier of high‑quality medical cannabis, now supplying
six of the eight largest clinics in the UK and showing gross profit and EBITDA
figures ahead of budget for the year to date - with monthly sales peaking at
270kg in November - above the breakeven level of approximately 200kg per month
required to be cash positive.

 

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 31 December 2025, total gearing was 30.9%, (30.6% at 30
September 2025) with £128.3 million drawn under the Company's £150m
Revolving Credit Facility.

 

Dividend

 

The Company also declares a quarterly interim dividend of 1.99 pence per share
for the quarter ended 31 December 2025, consistent with the full-year target
of 7.96 pence per share for the year to 31 March 2026, as set out in the 2025
Annual Report. This equates to a yield of 11.8% on the closing share price on
24 February 2026.

 

Dividend Timetable

 

Ex-dividend date         5 March 2026

Record date                6 March 2026

Payment date                         27 March 2026

 

Capital Markets Day

 

The Company intends to host a capital markets event for investors and
sell-side analysts on 12 May 2026 where an update on FGEN's growth assets will
be provided. A separate announcement will be made in due course with further
details.

 

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 not formally subject to the EU Sustainable Finance Disclosure
Regulation, but voluntarily discloses against the requirements of an Article 9
SFDR fund. It further discloses voluntarily against the UK's Sustainability
Disclosure Requirements regime as a 'Sustainability Focus' fund.  Beyond its
alignment with evolving regulation, FGEN prides itself on its transparent and
award-winning approach to ESG.

 

Further details can be found on FGEN's website http://www.fgen.com
(http://www.fgen.com) and LinkedIn page
(https://www.linkedin.com/showcase/foresight-environmental-infrastructure-limited)
.

 

(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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