REG - Foresight Solar Fund - Annual Results to 31 December 2025

Foresight Solar FundAnnouncement

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RNS Number : 7669X  Foresight Solar Fund Limited  24 March 2026

24 March 2026

 

Foresight Solar Fund Limited

("Foresight Solar", "FSFL" or "the Company")

 

Annual Results to 31 December 2025

 

Foresight Solar, the fund investing in solar and battery storage assets to
build income and growth, announces its results for the year ended 31 December
2025.

 

Financial highlights

·     Delivered a dividend of 8.10 pence per share (pps) for the year,
supported by robust operational performance and active power price hedging,
with 1.3x cover in line with the Company's target.

·     Announced a target dividend of 8.10pps for 2026, providing
flexibility to allocate surplus cash, including to build future dividend
cover. At the 23 March 2026 share price, this represents a 13.4% dividend
yield.

·     Expected 1.1x dividend cover for 2026. Production year-to-date and
current contracted revenue hedges are expected to provide 1.0x cover.
Uncontracted revenues offer additional upside as energy prices remain
elevated.

·     Maintained total gearing comfortably within investment policy
limits at 41.2%.

·     Returned £56.1 million to shareholders through a combination of
dividends and share buybacks.

 

Operational and strategic highlights

·    1,038 GWh of electricity, enough to power 381,748 UK households for a
year while avoiding 359,880 tonnes of carbon dioxide equivalent.

·    Outperformed generation forecasts across the core UK portfolio in
nine of the past 12 years.

·    Advanced the growth strategy by bringing Sandridge BESS into
commercial operations, with the Company's first battery asset creating value
for shareholders and now contributing to revenues.

·    Validated key portfolio assumptions through independent technical
analysis, supporting higher production forecasts, extended asset lives and
reinforcing confidence in long-term performance.

·    Targeted the share price discount to NAV through a range of actions,
remaining mindful of broader market challenges:

o  Revised investment management fees to better align with shareholder
interests and deliver meaningful cost savings.

o  Progressed strategic initiatives, including exploring consolidation and
options that may offer clear benefits to shareholders; initial engagement with
a peer did not progress to detailed discussions.

o  Investigating private market solutions and evaluating options to further
optimise the capital structure and release cash.

o  Progressing the divestment of an additional 75 MW of operational solar
capacity, with an update expected soon.

·    Maintained strong support from the Investment Manager following Ross
Driver's departure in 2025, with arrangements now in place for his successor,
Will Morgan, to join in April.

 

Key investment metrics

                                                                          As at 31 December 2025  As at 31 December 2024
 Net Asset Value (NAV)                                                    £545.9m                 £634.4m
 NAV per share                                                            99.2p                   112.3p
 Dividend per share declared for the year                                 8.10p                   8.00p
 Gross Asset Value (GAV)                                                  £928.2m                 £1,044.7m
 UK portfolio valuation                                                   £0.97m/MW               £1.10m/MW
 Cash flow from operations                                                £56.7m                  £61.7m
 Earnings before interest, taxes, depreciation and amortisation (EBITDA)  £112.2m                 £105.4m
 Net debt/EBITDA                                                          2.9x                    3.2x
 Enterprise value (EV)/EBITDA                                             6.0x                    7.4x

 

Key operational metrics

                   Year ended 31 December 2025                                                                                       Year ended 31 December 2024
                   Total generation (GWh)  Budgeted generation (GWh)  Generation variance to budget  Irradiation variance to budget  Total generation (GWh)  Budgeted generation (GWh)  Generation variance to budget  Irradiation variance to budget
 Global portfolio  1,038                   1,051                      (1.3)%                         4.9%                            1,009                   1,085                      (7.0)%                         (4.5)%

 

Commenting on the results, Tony Roper, Chair of Foresight Solar, said:

"Foresight Solar has delivered solid operational performance and continued to
progress its strategic objectives, despite not being immune to the regulatory
challenges and persistent discounts that have impacted the sector.

 

"We are pleased that the global portfolio delivered another year of stable
operation. Our UK assets continue to be standout performers, achieving 3.4%
above-budget production. With this year's results, our core UK portfolio has
now outperformed forecasts in nine of the past 12 years, a track record of
operational excellence we are proud of.

 

"Our robust portfolio, coupled with effective hedging, contributed to 1.3x
cover for our 8.10pps dividend for 2025.

 

"Based on our track record, I am pleased to announce a target dividend of
8.10pps for 2026. After careful consideration, the Board concluded that it is
in the best interest of shareholders to maintain the dividend target. We
recognise the importance of cash yield to our investors and remain committed
to a progressive dividend strategy. However, holding the target gives us more
flexibility to allocate surplus cash, including to build dividend cover for
future periods.

 

"We remain firmly focused on delivering for shareholders. The Investment
Manager is progressing the divestment of an additional 75 MW of operational
solar assets. We will deploy the proceeds in accordance with our capital
allocation strategy, considering, at the time, returns to shareholders, paying
down debt and re-investing in opportunities that offer higher returns.

 

"The connection of Sandridge BESS in the fourth quarter demonstrates the
growth element of our strategy in action. Building on the success of Lorca,
the commissioning of our first UK battery storage project once again proves
our capability to bring plants through construction into operations and create
financial upside for shareholders.

 

"Last year, my predecessor wrote about the need for change in the renewable
energy investment trust sector. The Board evaluated various opportunities
which culminated in a formal proposal that we were unable to ultimately
advance, and those discussions were terminated. We recognise that any public
market solution inevitably involves complex considerations and differing
vested interests but continue to evaluate all potential options to maximise
value for shareholders.

 

"We have considered - and continue to investigate - private market solutions.
In parallel, we are also looking into options to unlock cash within the
portfolio to support reinvestment and enhance our income‑generating
capacity.

 

"Foresight Solar's business model remains robust. The portfolio is operating
at a high standard, steadily generating cash to pay the dividend. We are
increasing our capabilities to create additional value from development and
construction of assets, and this is an area in which we forecast more activity
this year.

 

"We enter 2026 with clear priorities: closing the share price discount,
strengthening future dividend cover, evolving our development pipeline and
continuing to manage the portfolio to maximise returns."

 

Annual Report

A copy of the Annual Report has been submitted to the National Storage
Mechanism and will shortly be available
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The Annual Report
can also be seen on Foresight Solar's website (Reports and publications |
Foresight Solar (https://www.foresightsolar.com/reports-and-publications)
), where you can find all the information about the Company.

 

Results Presentation

Foresight Solar is holding a presentation for analysts at 10:00 today. Those
wishing to attend should contact fsfl@sodali.com (mailto:fsfl@sodali.com) .
The presentation will also be uploaded to the Foresight Solar's website.

 

Toby Virno, fund manager, and David Goodwin, head of fund finance, will
present the full-year results to retail investors via Investor Meet Company
(IMC) on Friday, 27 March 2026, at 11:00.

 

The meeting is open to all existing and potential shareholders. Questions can
be submitted before the event through the IMC dashboard or at any time during
the presentation.

 

Investors can sign up to Investor Meet Company for free, follow Foresight
Solar and gain access to the meeting
via: www.investormeetcompany.com/foresight-solar-fund-limited/register-investor
(http://www.investormeetcompany.com/foresight-solar-fund-limited/register-investor)
.

 

For more information, follow Foresight Solar on LinkedIn
(https://www.linkedin.com/showcase/foresight-solar/)  or contact:

 

 Foresight Group                                                 +44 (0)20 3911 2318

 Matheus Fierro

 (fsflir@foresightgroup.eu (mailto:fsflir@foresightgroup.eu) )

 Jefferies                                                       +44 (0)20 7029 8000

 Gaudi Le Roux

 Harry Randall

 Singer                                                          +44 (0)20 7496 3000

 Mark Bloomfield

 Sodali & Co                                                     +44 (0)20 7100 6451

 Gilly Lock

 Madeleine Gordon-Foxwell

 JTC                                                             +44 (0) 1534 700 000

 Claire Brazenall

 

LEI: 213800VO4O83JVSSOX33

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