RCS - Greencoat UK Wind - Results analysis from Kepler Trust Intelligence

Greencoat UK WindAnnouncement

06/03/2025 16:15

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RNS Number : 7054Z  Greencoat UK Wind PLC  06 March 2025

Greencoat UK Wind (UKW)

06/03/2025

Results analysis from Kepler Trust Intelligence

UKW's NAV total return, which had been previously announced, was -8.5% for the
year to 151.2p per share, with the most significant movements from downward
power price forecasts largely seen in the first half, and a revised
expectation on long term wind speeds, announced with the Q4 NAV on 29/01/2025.
The final results provided more colour on this, which has seen a number of
recent years' wind speeds incorporated into the data, serving to lower
expected long term electricity generation by 2.4%.

Underlying dividend cover for 2024 was 1.3x on a normalised basis. The board
is targeting a dividend of 10.35p per share with respect to 2025, a rise in
line with December's RPI of 3.5%.

The board and manager acknowledge the difficult market backdrop in the
alternative investment trust sector. In our view, UKW has always been managed
for the long term and by doing the right things for shareholders.  UKW was
the first to list in this sector, the first to reflect rising interest rates
through an increase in discount rates and the first to introduce a material
share buyback programme. The announcement on 10/12/2024 is another example of
UKW implementing shareholder friendly initiatives. Management fees from
01/01/2025 run on the lower of market capitalization and NAV. This level of
fee reduction is, as yet, unmatched by UKW's peers.  The manager is therefore
even more strongly aligned with shareholders in the desire to see the share
price improve.

UKW's board and manager undertake to generate and allocate capital wisely for
shareholders. UKW recently completed its initial £100m buyback programme
announced last year. UKW expects to generate over £1bn of excess cashflow in
the next five years, and to augment this with further disposals.  In the near
term, excess capital will be applied in a new £100m buyback programme, and
beyond that UKW expects to allocate further capital dynamically and between
further, or accelerated, share buy backs and repaying debt to reduce gearing.

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