REG - Greencoat UK Wind - Half year results, NAV and Dividend Announcement
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RNS Number : 0664T Greencoat UK Wind PLC 30 July 2025
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CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN.
30 July 2025
GREENCOAT UK WIND PLC
(the "Company")
Half year results to 30 June 2025, Net Asset Value and Dividend Announcement
Greencoat UK Wind PLC today announces the half year results for the period
to 30 June 2025.
Greencoat UK Wind PLC is the leading listed renewable infrastructure fund,
invested in UK wind farms. The Company's aim is to provide investors with an
annual dividend that increases in line with RPI inflation while preserving the
capital value of its investment portfolio in the long term on a real basis
through reinvestment of excess cash flow.
The Company provides investors with the opportunity to participate directly in
the ownership of UK wind farms, so increasing the resources and capital
dedicated to the deployment of renewable energy and the reduction of
greenhouse gas emissions.
Performance
· The Group's investments generated 2,581GWh of renewable electricity.
· Net cash generation (Group and wind farm SPVs) was £163.3 million
and dividend cover was 1.4x.
Net Asset Value
· The Company announces that its unaudited Net Asset Value as at 30 June
2025 is £3,182.7 million (143.4 pence per share). The Company's June 2025
Factsheet is available on the Company's website, www.greencoat-ukwind.com
(http://www.greencoat-ukwind.com) .
Capital Allocation
· The Company declared total dividends of 5.18 pence per share with
respect to the period and paid a dividend of 2.50 pence per share with respect
to Q4 2024 in the period.
· During the period the Company has bought back 35 million of its own
shares at an average cost of 115 pence per share.
· Post period end, the Company announced part disposals of three wind
farms for £181 million which will bring total divestments in the past year to
£222 million.
· Aggregate Group Debt was £2,254 million as at 30 June 2025,
equivalent to 41.5 per cent of GAV. Were the proceeds of the disposals
announced today applied to debt repayment, pro forma gearing would stand at
39.5 per cent.
Commenting on today's results, Lucinda Riches, Chairman of Greencoat UK Wind,
said:
""The Board and the Investment Manager remain fully aligned with investors and
continue to focus on driving long-term shareholder value through proactive
capital allocation and active asset management. We are pleased to have
announced further disposals, delivered at NAV, which will bring total
divestment proceeds to £215 million.
Despite lower portfolio generation due to low wind, the Group delivered robust
cash generation of £163 million to achieve dividend cover of 1.4x. The team
continues to progress a number of key initiatives aimed at optimising asset
performance and enhancing long-term value.
We are an established leader in the sector, with a simple, low risk and proven
model, a substantial portfolio of high-quality assets, and an attractive net
return for investors. We remain confident in our ability to deliver on our
objectives of growing the dividend in line with RPI and capital preservation
over the long term and extend our track record of outperforming our peers."
Dividend Announcement
The Company also announces a quarterly dividend of 2.59 pence per share in
respect of the period from 1 April 2025 to 30 June 2025.
Dividend Timetable
Ex-dividend date: 14 August 2025
Record date: 15 August 2025
Payment date: 29 August 2025
Key Metrics
As at 30 June 2025:
Market capitalisation £2,674.6 million
Share price 120.5 pence
Dividends with respect to the period £115.0 million
Dividends with respect to the period per share 5.18 pence
GAV £5,436.7 million
NAV £3,182.7 million
NAV per share 143.4 pence
Total Shareholder Return 11.5 per cent
Discount to NAV 16.0 per cent
The Company's 2025 Half Year Report is available on the Company's website,
www.greencoat-ukwind.com (http://www.greencoat-ukwind.com) , and can also be
inspected on the National Storage Mechanism website,
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Details of the webcast for analysts and investors:
There will be a virtual presentation at 9.00am today for analysts and
investors. Register and watch the event
at: https://stream.brrmedia.co.uk/broadcast/686539e0c585410013194140
(https://stream.brrmedia.co.uk/broadcast/686539e0c585410013194140)
If dialling-in via phone, the following details can be used:
UK-Wide: +44 (0) 33 0551 0200
UK Toll Free: 0808 109 0700
Password: Quote 'Greencoat UK Wind' when prompted by the operator
Presentation materials will be posted on the Company's website,
www.greencoat-ukwind.com (http://www.greencoat-ukwind.com/) , from 9.00am.
For further information, please contact:
Greencoat UK Wind PLC 020 7832 9400
Stephen Packwood
Matt Ridley
Headland 020
3805 4822
Stephen Malthouse
Rob Walker
Charlie Twigg
ukwind@headlandconsultancy.com (mailto:ukwind@headlandconsultancy.com)
All capitalised terms are defined in the list of defined terms below unless
separately defined.
Chairman's Statement
I am pleased to present the Half Year Report of Greencoat UK Wind PLC for the
six months ended 30 June 2025.
The Company is well established as the leader in the UK wind sector; a sector
to which the UK Government has recently reaffirmed its commitment. The
Department of Energy Security & Net Zero's Onshore Wind Taskforce Strategy
publication reinforces its commitment to double the deployment of onshore wind
by 2030. Together with the ambition of the upcoming CFD Allocation Round 7,
the sector remains on course to grow two to threefold over the next decade.
The portfolio provides renewable electricity for 2.2 million homes per annum
and avoids emissions of 2.4 million tonnes of CO(2) per annum.
Performance
In the six months to 30 June 2025 portfolio generation was 2,581GWh, 14 per
cent below budget owing to low wind, which has been the experience across the
industry. Despite lower than budgeted output, net cash generated by the Group
and wind farm SPVs was £163 million and underlying dividend cover for the
period was 1.4x. During the period, the Company reinvested £40 million to buy
back its own shares.
Dividends and Returns
The Company's aim remains to provide investors with an attractive and
sustainable dividend that increases in line with RPI while preserving capital
on a real basis.
The Company's target dividend for 2025 is 10.35 pence per share, and its
dividend has increased for each of the 12 years since listing by RPI or
more. This makes it one of only a small number of FTSE 250 companies to have
increased its dividend every year for the past 10 years. In Q1 2025, the
Company paid a quarterly dividend of 2.50 pence per share, bringing the 2024
dividend to 10 pence per share, and has declared a dividend of 2.59 pence per
share with respect to Q2 2025. The Company has now paid £1,302 million in
dividends to its shareholders. As well as sector leading dividend growth,
the Company has generated and reinvested £985 million of excess cashflow to
deliver long term NAV growth.
NAV per share decreased in the period from 151.2 pence per share to 143.4
pence per share as at 30 June 2025, reflecting lower than budgeted cash
generation and a reduction in forecast power prices. Despite this fall in NAV,
since listing the Company's annualised Total Shareholder Return is 11.5 per
cent - the highest of its peer group.
Whilst base rates have started to decline, longer term UK gilt rates remain
elevated. The Company aims to deliver a 10 per cent return to investors on
NAV, net of all costs. This includes the re-investment of excess dividend
cover as well as the dividend yield. At the Company's share price on 30 June
2025, the return to shareholders is 12.5 per cent. Given the nature of the
Company's business, we believe that the return profile remains favourable
against a current 10 year gilt rate of 4.7 per cent as at 29 July 2025.
Capital Allocation and Outlook
The Board and the Investment Manager continue to be disappointed that the
Company's share price is trading at a discount to its NAV, and remain
committed to improving the Company's overall attractiveness. Whilst the
Company's share price has increased by 11.9 per cent since the end of the last
quarter, shares continue to trade at a material discount to NAV. With that in
mind, the Company maintains its disciplined approach to capital allocation.
The Company has clear near-term capital allocation priorities, having
completed £131 million of share buybacks, and is pleased to announce the
partial disposals of Andershaw, Bishopthorpe and Hornsea 1 wind farms for
£181 million (including the reduction in limited recourse project finance
debt). These disposals were made at NAV.
Cumulative disposals now total £222 million, and the Company's second buyback
programme, which was announced in February of this year, provides for at least
a further £69 million to be allocated to share buybacks. Excess cashflow
beyond that is likely to be applied to a reduction in the Company's gearing.
In the medium term, we can see the significant need for capital in the sector
and expect that this should provide investment opportunities that surpass the
returns afforded by share buybacks and de-gearing, especially when viewed over
a longer term horizon. The Board and Investment Manager continue to evaluate
suitable investments and will remain strategically opportunistic.
The principal risk and uncertainties of the Group and its investee companies
are unchanged from those detailed in the Company's Annual Report to 31
December 2024 and remain the most likely to affect the Group and its investee
companies in the second half of the year.
The Company welcomes the UK Government's decision to rule out zonal pricing as
part of the REMA. The Investment Manager and many other stakeholders in the
sector engaged with Government to express concerns that the introduction of
zonal pricing could dampen the investment case for renewable energy assets in
the UK and serve to undermine its 2030 Clean Power Action Plan.
We note that the Government has set out a timetable to develop reformed
national pricing arrangements, and the Investment Manager will continue to
engage with Government with the aim of ensuring an equitable outcome for
existing renewable energy asset owners, and the maintenance of an attractive
investment climate for new renewable energy assets.
The Board and Governance
The Board comprises 6 non-executive directors, having appointed Taraneh Azad
on 1 February 2025. The Board brings a broad range of experience and
disciplines that complement the Company's strategy and operations.
The Board remains keen to demonstrate sector leadership in its alignment with
shareholders and its commitment to making the right decisions on their
behalf. In the past year the Company has implemented a market leading share
buyback programme, building on the introduction of the first material buyback
programme in the sector. Material progress on disposals has been made, with
a cumulative total of £222 million of divestments having been completed or
announced.
The Board has led the way in aligning the Investment Manager's remuneration
with the shareholder experience, announcing in December 2024 a revision to
investment management fee arrangements that saw the basis of remuneration
change to the lower of market capitalisation and NAV. None of the Company's
peers have matched the strong alignment offered by its fee arrangements.
At the AGM on 28 April 2025, the Company held a continuation vote as a
consequence of having traded at an average discount to NAV of 14 per cent over
the 12 month period ending 31 December 2024. With a turnout of 66.5 per cent,
89.5 per cent of shareholders voted for continuation, demonstrating strong
support for continuation of the business. On behalf of the Board and the
Investment Manager, I thank the shareholders for their continued support of
the Company.
Lucinda Riches C.B.E.
Chairman
29 July 2025
Investment Manager's Report
Investment Portfolio
As at 30 June 2025, the Group owned investments in a diversified portfolio of
49 operating UK wind farms with net generating capacity totalling 1,982MW.
Asset Management
The Group operates a sizeable and diverse portfolio of 49 assets with a net
generating capacity of 2GW. The Investment Manager has an experienced and
specialist asset management team, which has expanded considerably as the
portfolio has grown. The team focuses on the safe and optimal performance of
the Group's assets, as well as ensuring the delivery of the Company's long
term investment case. The team continues to move forward several key
initiatives to optimise the performance of the Group's assets, and create long
term value for shareholders. Initiatives include, for instance, lease
extensions, turbine performance upgrades, and revenue and operating cost
optimisation. Together these initiatives have, since 2016, added approximately
£143 million to NAV.
Operating and financial performance
Portfolio generation in the period was 2,581GWh, 14 per cent below budget,
primarily due to lower wind resource (12 per cent below budget). Wind speeds
were below budget for the first 5 months of the year, with DESNZ's Energy
Trends(( 1 )) showing that the period between March to May 2025 was the least
windy for this period in their data series (commencing from 2001). Wind speeds
normalised in June.
Portfolio availability was in line with expectations.
Net cash generated by the Group and wind farm SPVs was £163 million. Dividend
cover for the period was 1.4x, despite the significant lower wind speeds. In
the period, the Company reinvested £40 million through buying back its own
shares.
Group and wind farm SPV cash flows For the six months ended
30 June 2025
£'000
Net cash generation ((1)) 163,301
Dividends paid (113,954)
(Acquisitions) / disposals (176)
Transaction costs (381)
Share buybacks (40,258)
Share buyback costs (247)
Net amounts drawn under debt facilities -
Upfront finance costs -
Movement in cash (Group and wind farm SPVs) 8,285
Opening cash balance (Group and wind farm SPVs) ((2)) 155,027
Closing cash balance (Group and wind farm SPVs) ((2)) 163,312
Net cash generation 163,301
Dividends 113,954
Dividend cover 1.4x
((1)) Alternative Performance Measure defined below.
((2)) Includes security cash deposits recognised as a receivable in note 10 to
the financial statements.
The following tables provide further detail in relation to net cash generation
of £163 million:
Net Cash Generation - Breakdown For the six months ended
30 June 2025
£'000
Revenue 418,588
Operating expenses (115,324)
Tax (39,910)
SPV level debt interest (8,282)
SPV level debt amortisation (27,125)
Other (4,235)
Wind farm cash flow 223,712
Management fee (13,841)
Operating expenses (1,553)
Ongoing finance costs (46,339)
Other 3,134
Group cash flow (58,599)
VAT (Group and wind farm SPVs) (1,812)
Net cash generation 163,301
Net Cash Generation - Reconciliation to Net Cash Flows from Operating For the six months ended
Activities
30 June 2025
£'000
Net cash flows from operating activities ((1)) 200,323
Movement in cash balances of wind farm SPVs 326
Repayment of shareholder loan investment ((1)) 4,837
Finance costs ((1)) (46,339)
Movement in security cash deposits ((2)) 4,154
Net cash generation 163,301
((1)) Consolidated Statement of Cash Flows.
((2)) Note 10 to the financial statements.
Transaction Activity and Gearing
The Company continues its disciplined approach to capital allocation.
On 29 July 2025, the Group entered into an agreement to dispose of 32.65 per
cent interests in Andershaw and Bishopthorpe onshore wind farms for £42.6
million. In addition, the Group entered into an agreement to dispose of a 1
per cent interest in Hornsea 1 offshore wind farm for a GAV of £65 million,
of which £35 million related to a decrease of the Group's share of limited
recourse project finance debt. The equity consideration of these transactions
represents the NAV values of the respective wind farms as at 30 June 2025, and
the transactions are expected to complete on 30 July 2025.
The Company has also entered into an agreement to dispose of a further 0.975
per cent interest in Hornsea 1 in a separate transaction at the same GAV. The
transaction is expected to close in August 2025.
These disposals, in addition to its partial disposals of Dalquhandy and
Douglas West in December 2024, will bring total disposal proceeds to £222
million.
The Company has completed its initial £100 million buyback programme and in
February 2025 announced a further £100 million buyback programme, since then
the Company has bought back a further £31 million of its own shares. This
takes the cumulative amount spent on share buy backs to £131 million, through
the repurchase of 101 million shares at an average price of 130.0 pence per
share.
In the medium term, the Investment Manager believes that there will be
significant opportunities for investment activity that are beneficial to
shareholders in the long term and that, crucially, the returns from these
investments will surpass those afforded by buying back shares. Further
investment is an important aspect of the Company's strategy to maintain a
dividend that increases with RPI inflation along with the preservation of NAV
in real terms.
The Company will continue to explore selective disposals, with the aim of
generating further capital to deploy to the advantage of its shareholders. In
the near term, any further disposal proceeds would be expected to repay the
Company's revolving credit facility.
As at 30 June 2025, Aggregate Group Debt was £2,254 million, comprising
£1,484 million of term debt at Company level, £270 million drawn under the
Company's revolving credit facility plus £500 million being the Group's share
of limited recourse debt in Hornsea 1. Cash balances (Group and wind farm
SPVs) as at 30 June 2025 were £163 million (including £18 million of
security cash deposits).
Gearing as at 30 June 2025 was 41.5 per cent of GAV, with a weighted cost of
debt of 4.59 per cent across a range of maturities (November 2026 to March
2036), which can be seen in note 12 to the consolidated financial statements
below.
Whilst gearing is above the Company's target, this has no bearing on the terms
of its debt facilities; rather it simply restricts the Company from drawing
further debt. The Company's pro forma gearing, when taking account of the
completion of the above disposals, would stand at 39.5 per cent, assuming that
all proceeds are applied to reducing debt. The Board and Investment Manager
will closely monitor the Company's gearing level and optimising this will be a
key element of its capital allocation strategy.
Net Asset Value
The following table sets out the movement in NAV from 31 December 2024 to 30
June 2025. The key components are discussed in detail below.
£'000 Pence per share
NAV as at 31 December 2024 3,409,104 151.2
Net cash generation 163,301 7.3
Dividend (113,954) (5.1)
Depreciation (49,231) (2.2)
Power price (160,994) (7.3)
Inflation 17,409 0.8
Movement in fair value of debt (31,631) (1.4)
Share buybacks (40,505) 0.6
Other (10,847) (0.5)
NAV as at 30 June 2025 3,182,652 143.4
Reconciliation of Statutory Net Assets to Reported NAV As at As at
30 June 2025
31 December 2024
£'000 £'000
Operating portfolio 5,294,442 5,516,201
Cash (wind farm SPVs) 136,218 135,892
Fair value of investments ((1)) 5,430,660 5,652,093
Cash (Group) 27,094 19,135
Other relevant liabilities (21,042) (18,492)
GAV 5,436,712 5,652,736
Aggregate Group Debt ((1)) (2,254,060) (2,243,632)
NAV 3,182,652 3,409,104
Reconciling items - -
Statutory net assets 3,182,652 3,409,104
Shares in issue 2,219,569,227 2,254,109,306
NAV per share (pence) 143.4 151.2
(1) Includes limited recourse debt at Hornsea 1, not included in the
Condensed Consolidated Statement of Financial Position.
Health and Safety and the Environment
Health and safety and the environment is a key priority to both the Board and
the Investment Manager. Engagement with the Group's stakeholders is a central
part of this and so far in 2025, we have held 21 health and safety activities
with contractors to reiterate the importance of this to us. Activities range
from dedicated training sessions to onsite rescue drills, where processes are
tested to ensure they are robust and are improved where possible.
The Investment Manager is an active member of SafetyOn, the UK's leading
health and safety focused organisation for the onshore wind industry. The
Investment Manager also has its own health and safety forum, chaired by
Stephen Packwood, where best practice is discussed and key learnings from
incidents across the Investment Manager and industry are shared.
The Company has continued to contribute to local community funds and to invest
in a range of local environmental and social projects. On a voluntary basis,
the Company continues to fund a £250,000 programme to advance knowledge on
blade recycling and repurposing, with over half of the funding being granted
to date.
As at 30 June 2025, the portfolio powers 2.2 million homes and avoids the
emission of 2.4 million tonnes of CO(2) per annum.
Power Price
Long term power price forecasts are provided by a reputable market consultant,
updated quarterly, and may be adjusted by the Investment Manager where more
conservative assumptions are considered appropriate. Short term power price
assumptions reflect the forward curve as at 30 June 2025.
A discount is applied to power price assumptions in all years to reflect the
fact that wind generation typically captures a lower price than the base load
power price. The discount applied varies across on and offshore wind, and is
drawn from consultants' forecasts and in the longer term market based
analysis. During the period, the portfolio captured an average price of
£77.65/MWh versus an average N2EX index price of £88.03/MWh (16 per cent
discount).
In addition to the above capture discount, a further discount is applied to
reflect the terms of each PPA. The discount of some PPAs is expressed as a
percentage of a given price index, whereas other PPAs include a fixed £/MWh
discount to the price index. Other PPAs pay a fixed £/MWh price for power.
The table below of the Company's 2024 Annual Report sets out the terms of each
PPA.
The following table shows the assumed power price (post capture discount, pre
PPA discount) and also the price post a representative PPA discount (90 per
cent x index price).
£/MWh (real 2024) 2025 2026 2027 2028 2029 2030 2031
Pre PPA discount 67.83 63.44 64.01 66.95 67.85 71.50 70.11
Post representative PPA discount 61.05 57.10 57.61 60.26 61.07 64.35 63.10
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
Pre PPA discount 64.90 63.43 63.32 60.66 62.65 62.51 61.70 61.50 57.54 55.66
Post representative PPA discount 58.41 57.09 56.99 54.59 56.38 56.26 55.53 55.35 51.78 50.10
2042 2043 2044 2045 2046 2047 2048 2049 2050 2051
Pre PPA discount 54.62 54.70 55.79 55.37 53.81 53.76 53.12 54.34 53.43 53.82
Post representative PPA discount 49.15 49.23 50.21 49.83 48.43 48.38 47.81 48.90 48.09 48.44
2052 2053 2054 2055 2056 2057 2058 2059 2060 2061
Pre PPA discount 52.64 51.94 51.82 51.78 50.83 49.10 47.98 46.60 43.51 43.20
Post representative PPA discount 47.38 46.75 46.64 46.60 45.75 44.19 43.19 41.94 39.16 38.88
All numbers illustrative. Power prices real 2024, pre PPA discounts.
The portfolio benefits from a substantial fixed revenue base. Over the next
five years, 60 per cent of the portfolio's DCF is comprised of fixed cashflows
on average. Furthermore, most fixed revenues are index linked (RPI in the case
of ROCs, CPI in the case of CFDs).
The fixed revenue base means that dividend cover is robust in the face of
extreme downside power price sensitivities:
2026 2027 2028 2029 2030
RPI increase (%) 4.25 3.75 3.5 3.5 3.5
Dividend (pence / share) 10.79 11.19 11.59 11.99 12.41
Dividend (£'000) 234,094 242,872 251,373 260,171 269,277
Dividend cover (x)
Base case 1.8 1.7 1.9 1.9 2.1
£50/MWh 1.5 1.5 1.5 1.6 1.6
£40/MWh 1.4 1.4 1.4 1.4 1.4
£30/MWh 1.2 1.1 1.2 1.2 1.2
£20/MWh 1.1 1.0 1.0 0.9 0.9
£10/MWh 0.9 0.8 0.8 0.7 0.7
The Group's strategy remains to maintain an appropriate balance between fixed
and merchant revenue. Over the life of the portfolio, the portfolio's DCF is
forecast to maintain an equal blend of fixed and merchant cash flows. To the
extent that merchant revenues were to increase as a proportion of total
revenues, new fixed price PPAs would be entered into. The Investment Manager
is actively exploring fixed prices for the PPAs approaching maturity. An
appropriate revenue balance could also be maintained through the acquisition
of new fixed revenue streams (for example, onshore and offshore wind CFD
assets) or the divestment of merchant revenue assets.
Inflation
Base case assumptions in relation to inflation are:
• CPI: 3.5 per cent (2025), 3 per cent (2026), and 2.5 per cent (2027
onwards)
• RPI: 4.25 per cent (2025), 3.75 per cent (2026), 3.5 per cent (2027-2030),
and 2.5 per cent (2031 onwards).
The ROC price is inflated annually from 1 April each year based on the
previous year's average RPI. For example, on 1 April 2025, the ROC price has
increased by 3.6 per cent (average RPI over 2024).
CFD prices are also inflated annually from 1 April each year. However, in the
case of CFDs, the price is inflated based on January CPI. For example, on 1
April 2025, CFD prices have increased by 3.0 per cent (January 2025 CPI).
Given the explicit inflation linkage of a substantial proportion of portfolio
revenue (ROCs, CFDs, certain PPAs) and the implicit inflation linkage inherent
in power prices, there is a strong link between inflation and portfolio
return.
Returns
For the 30 June 2025 NAV, the portfolio average discount rate remained
unchanged, at 9 per cent. The levered portfolio IRR remains at 11 per cent.
This continues to be materially higher than at IPO over a decade ago, having
been revised upwards significantly in the past 3 years to reflect rising
interest rates.
Given that the Company's ongoing charges ratio is less than 1 per cent, the
net return to investors (assuming investment at NAV) is 10 per cent.
This 10 per cent net return at NAV is also inflation linked, as described
above. We believe that a 10 per cent inflation linked return should be very
attractive versus other investment opportunities. The Company's 12 year track
record demonstrates relatively low volatility and the historical and the
projected dividend cover is robust.
A total net return of 10 per cent and a dividend yield of 6 per cent would
imply NAV growth of 4 per cent. The total return is more important than the
dividend yield, which depends on the chosen dividend policy (the Company could
have chosen a different combination of dividend yield and NAV growth).
Since IPO, aggregate historical dividend cover has been 1.8x. The Group has
reinvested £985 million and has delivered significant NAV growth albeit
slightly behind RPI.
Outlook
UK Government policy continues to support the expansion of the wind industry
in the UK. The Clean Power 2030 Action Plan(( 2 )) remains a key pillar of
policy and lays the path for the delivery of an increase in offshore wind
capacity to 43-50GW by 2030. This means that at least 12GW of offshore wind
will need to be secured in the next two to three Allocation Rounds ("AR") -
AR7, AR8 and, depending on the speed at which projects deploy, AR9.
The Department of Energy Security & Net Zero's Onshore Wind Taskforce
Strategy(( 3 )) publication enforces a commitment to double the deployment of
onshore wind by 2030. This sets out the steps needed to deliver up to 29GW of
onshore capacity by 2030 (currently there is 15GW of installed capacity).
These key policies are expected to create an investment opportunity of around
£40 billion per annum. Alongside the recycling of operating projects, the
creation of new assets is expected to generate attractive investment
opportunities for the Company over the coming years.
It is important that the UK Government continues to recognise the views of
investors when forming policy. We are pleased to note the Government's
decision to rule out zonal pricing as part of the REMA. The Investment Manager
and many other stakeholders in the sector engaged with the UK Government to
express concerns that the introduction of zonal pricing could dampen the
investment case for renewable energy assets in the UK and serve to undermine
the Government's Clean Power 2030 Action Plan.
We note that the Government has set out a timetable to develop reformed
national pricing arrangements, and the Investment Manager will continue to
engage with Government with the aim of ensuring an equitable outcome for
existing renewable energy asset owners, and the maintenance of an attractive
investment climate for new renewable energy assets.
The Group's current market share of UK wind assets is approximately 6 per
cent. As at 30 June 2025, the average age of the portfolio was 9 years (versus
5 years at IPO in March 2013).
As progress towards a net zero electricity grid continues, the decarbonisation
of transport and home heating through electrification, and the rise of data
centres to power AI, are emerging as significant sources of demand for green
electrons by 2030. Together these sources of demand alone are expected to
require a further 30TWh per annum of electricity in the next five years. This
is approximately one tenth of the UK's current annual electrical demand and
approximately five times the Group's current annual electricity output.
Reference can be made to Ireland where last year, 22 per cent of electricity
demand came from data centres alone.
The Investment Manager expects that these sources of demand will present
further opportunities for the Company to enter into long term PPAs in due
course whilst also maintaining positive support for on power prices.
The portfolio is robust in the face of downside production and power price
sensitivities as well as remaining exposed to significant upside (power
prices, asset life extension, asset optimisation, new revenue streams,
interest rate cycle etc). The levered portfolio IRR of 11 per cent and net
return to investors of 10 per cent on NAV should be very attractive versus
other investment opportunities.
In general, the market outlook for the Group remains very encouraging.
Statement of Directors' Responsibilities
The Directors acknowledge responsibility for the interim results and approve
this Half Year Report. The Directors confirm that to the best of their
knowledge:
a) the condensed financial statements have been prepared in accordance
with IAS 34 "Interim Financial Reporting" and give a true and fair view of the
assets, liabilities and financial position and the profit of the Group as
required by DTR 4.2.4R;
b) the interim management report, included within the Chairman's Statement
and Investment Manager's Report, includes a fair review of the information
required by DTR 4.2.7R, being the significant events of the first half of the
year and the principal risks and uncertainties for the remaining six months of
the year; and
c) the condensed financial statements include a fair review of the related
party transactions, as required by DTR 4.2.8R.
The Responsibility Statement has been approved by the Board.
Lucinda Riches C.B.E.
Chairman
29 July 2025
Condensed Consolidated Statement of Comprehensive Income (unaudited)
For the six months ended 30 June 2025
Note For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Investment income 3 216,696 218,763
Movement in fair value of investments (206,628) (136,737)
Other income 2,714 3,929
Total income and movement in fair value of investments 12,782 85,955
Operating expenses 4 (14,932) (18,633)
Transaction costs (339) (196)
Operating (loss)/profit (2,489) 67,126
Finance expense 12 (49,327) (48,036)
Net movement on interest rate swaps held at fair value 13 (20,572) -
(Loss)/profit for the period before tax (72,388) 19,090
Tax 5 - -
(Loss)/profit for the period after tax (72,388) 19,090
(Loss)/profit and total comprehensive (expense)/income attributable to:
Equity holders of the Company (72,388) 19,090
Earnings per share
Basic and diluted earnings from continuing operations in the year (pence) 6 (3.23) 0.83
The accompanying notes form an integral part of the financial statements.
Condensed Consolidated Statement of Financial Position (unaudited)
As at 30 June 2025
Note 30 June 2025 31 December 2024
£'000 £'000
Non current assets
Investments at fair value through profit or loss 8 4,930,956 5,142,245
Interest rate swaps held at fair value through profit or loss 13 17,155 39,999
4,948,111 5,182,244
Current assets
Receivables 10 18,051 18,537
Interest rate swaps held at fair value through profit or loss 13 5,265 -
Cash at bank 9,600 5,795
32,916 24,332
Current liabilities
Interest rate swaps held at fair value through profit or loss 13 (3,894) -
Payables 11 (21,600) (23,690)
Net current assets 7,422 642
Non current liabilities
Loans and borrowings 12 (1,760,000) (1,760,000)
Interest rate swaps held at fair value through profit or loss 13 (12,881) (13,782)
Net assets 3,182,652 3,409,104
Capital and reserves
Called up share capital 15 23,074 23,074
Share premium 15 2,471,821 2,471,821
Capital redemption reserve 15 113 113
Treasury reserve 15 (113,282) (73,172)
Retained earnings 800,926 987,268
Total shareholders' funds 3,182,652 3,409,104
Net assets per share (pence) 16 143.4 151.2
Authorised for issue by the Board of Greencoat UK Wind PLC (registered number
08318092) on 29 July 2025 and signed on its behalf by:
Lucinda Riches
C.B.E.
Caoimhe Giblin
Chairman
Director
The accompanying notes form an integral part of the financial statements.
Condensed Consolidated Statement of Changes in Equity (unaudited)
For the six months ended 30 June 2025
For the six months ended Note Share capital Share premium Capital redemption reserve Treasury reserve Retained earnings Total
30 June 2025
£'000 £'000 £'000 £'000 £'000 £'000
Opening net assets attributable to shareholders (1 January 2025) 23,074 2,471,821 113 (73,172) 987,268 3,409,104
Issue of share capital - - - - - -
Share buybacks 15 - - - (40,595) - (40,595)
Share buyback costs 15 - - - (265) - (265)
Shares issued to the Investment Manager 15 - - - 750 - 750
Loss and total comprehensive expense for the year - - - - (72,388) (72,388)
Interim dividends paid in the year 7 - - - - (113,954) (113,954)
Closing net assets attributable to shareholders 23,074 2,471,821 113 (113,282) 800,926 3,182,652
The total reserves distributable by way of a dividend as at 30 June 2025 were
£820,925,496.
For the six months ended Note Share capital Share premium Capital redemption reserve Treasury shares Retained earnings Total
30 June 2024
£'000 £'000 £'000 £'000 £'000 £'000
Opening net assets attributable to shareholders (1 January 2024) 23,121 2,471,515 66 - 1,299,295 3,793,997
Share buybacks (47) - 47 (37,594) (6,788) (44,382)
Share buyback costs - - - - (279) (279)
Shares issued to the Investment Manager - - - 1,125 - 1,125
Profit and total comprehensive income for the period - - - - 19,090 19,090
Interim dividends paid in the period - - - - (136,381) (136,381)
Closing net assets attributable to shareholders 23,074 2,471,515 113 (36,469) 1,174,937 3,633,170
The total reserves distributable by way of a dividend as at 30 June 2024 were
£789,633,192.
The accompanying notes form an integral part of the financial statements.
Condensed Consolidated Statement of Cash Flows (unaudited)
For the six months ended 30 June 2025
Note For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Net cash flows from operating activities 17 200,323 203,842
Cash flows from investing activities
Acquisition of investments 8 (176) (251)
Disposal of investments - -
Transaction costs (381) -
Repayment of shareholder loan investments 8 4,837 11,355
Net cash flows from investing activities 4,280 11,104
Cash flows from financing activities
Share buybacks (40,258) (43,983)
Share buyback costs (247) (280)
Amounts drawn down on loan facilities - -
Amounts repaid on loan facilities - -
Finance costs (46,339) (48,082)
Dividends paid 7 (113,954) (136,381)
Net cash flows from financing activities (200,798) (228,726)
Net increase/(decrease) in cash and cash 3,805 (13,780)
Cash at the beginning of the year 5,795 21,805
Cash and cash equivalents at the end of the year 9,600 8,025
The accompanying notes form an integral part of the financial statements.
Notes to the Unaudited Condensed Consolidated Financial Statements
For the six months ended 30 June 2025
1. Material accounting policies
Basis of accounting
The condensed consolidated financial statements included in this Half Year
Report have been prepared in accordance with IAS 34 "Interim Financial
Reporting". The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated financial statements
as were applied in the preparation of the Group's consolidated annual
financial statements for the year ended 31 December 2024 and are expected to
continue to apply in the Group's consolidated financial statements for the
year ended 31 December 2025.
The Group's consolidated annual financial statements were prepared on the
historic cost basis, as modified for the measurement of certain financial
instruments at fair value through profit or loss, and in accordance with UK
adopted international accounting standards.
These condensed financial statements do not include all information and
disclosures required in the annual financial statements and should be read in
conjunction with the Group's consolidated annual financial statements for the
year ended 31 December 2024. The audited annual accounts for the year ended 31
December 2024 have been delivered to the Registrar of Companies. The audit
report thereon was unmodified.
Review
This Half Year Report has not been audited or reviewed by the Company's
Auditor in accordance with the International Standards on Auditing (ISAs) (UK)
or International Standard on Review Engagements (ISREs).
Going concern
As at 30 June 2025, the Group had net assets of £3,182.7 million (31 December
2024: £3,409.1 million), net current assets of £7.4 million, (31 December
2024: £0.6 million), cash balances of £9.6 million (31 December 2024: £5.8
million) (excluding cash balances within investee companies of £136.2 million
(31 December 2024: £135.9 million)) and security cash deposits of £17.5
million (31 December 2024: £13.3 million).
As the Company's shares traded at an average discount to NAV of 14 per cent
over the 12 month period ending 31 December 2024, a Continuation Vote was held
at the Company's AGM in April 2025 in line with its Articles of Association,
with 89.5 per cent voting in favour of continuation.
The Directors have reviewed Group forecasts and projections which cover a
period of at least 12 months from the date of approval of this report, taking
into account foreseeable changes in investment and trading performance, which
show that the Group has sufficient financial resources to continue in
operation for at least the next 12 months from the date of approval of this
report.
On the basis of this review, and after making due enquiries, the Directors
have a reasonable expectation that the Company and the Group have adequate
resources to continue in operational existence until at least July 2026.
Accordingly, they continue to adopt the going concern basis in preparing the
financial statements.
Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board, as a
whole. The key measure of performance used by the Board to assess the Group's
performance and to allocate resources is the total return on the Group's net
assets, as calculated under IFRS, and therefore no reconciliation is required
between the measure of profit or loss used by the Board and that contained in
the financial statements.
For management purposes, the Group is organised into one main operating
segment, which invests in wind farm assets.
All of the Group's income is generated within the UK.
All of the Group's non-current assets are located in the UK.
Seasonal and cyclical variations
The Group's results do not vary significantly during reporting periods as a
result of seasonal activity.
2. Investment management fees
Under the terms of the Investment Management Agreement, the Investment Manager
is entitled to a combination of a Cash Fee and an Equity Element from the
Company.
The Cash Fee and Equity Element are calculated quarterly in advance, as
disclosed on pages 79 and 80 of the Company's Annual Report for the year ended
31 December 2024.
Investment management fees paid or accrued in the period were as follows:
For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Cash Fee 11,072 15,323
Equity Element 750 750
11,822 16,073
As at 30 June 2025, total amounts payable to the Investment Manager were
£5,540,987 (31 December 2024: £6,736,678).
3. Investment Income
For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Dividends received (note 18) 177,215 186,519
Interest on shareholder loan investment received 39,481 32,244
216,696 218,763
4. Operating expenses
For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Management fees (note 2) 11,822 16,073
Group and SPV administration fees 731 653
Non-executive Directors' fees 231 202
Other expenses 1,997 1,575
Fees to the Group's Auditor:
for audit of the statutory financial statements 146 125
for other audit related services 5 5
14,932 18,633
The fees to the Company's Auditor for the period ended 30 June 2025 are an
estimated accrual proportioned across the year for the year end audit of the
statutory financial statements, this includes the fee for the limited review
of the half year report of £5,350
The fees to the Company's Auditor for the period ended 30 June 2024 include
£5,100 payable in relation to a limited review of the Half Year Report and
estimated accruals proportioned across the year for the audit of the statutory
financial statements.
5. Taxation
Taxable income during the period was offset by management expenses and the tax
charge for the period ended 30 June 2025 is £nil (30 June 2024: £nil).
6. Earnings per share
For the six months ended For the six months ended
30 June 2025
30 June 2024
(Loss) / profit attributable to equity holders of the Company - £'000 (72,388) 19,090
Weighted average number of ordinary shares in issue 2,239,147,020 2,308,212,941
Basic and diluted (losses) / earnings from continuing operations in the year (3.23) 0.83
(pence)
Dilution of the earnings per share as a result of the Equity Element of the
investment management fee as disclosed in note 2 does not have a significant
impact on the basic earnings per share.
7. Dividends declared with respect to the period
Interim dividends paid during the period ended 30 June 2025 Dividend per share Total dividend
pence £'000
With respect to the quarter ended 31 December 2024 2.50 56,173
With respect to the quarter ended 31 March 2025 2.59 57,781
5.09 113,954
Interim dividends declared after 30 June 2025 and not accrued in the period Dividend per share Total dividend
pence £'000
With respect to the quarter ended 30 June 2025 2.59 57,185
2.59 57,185
As disclosed in note 19, on 29 July 2025, the Board approved a dividend of
2.59 pence per share with respect to the quarter ended 30 June 2025, bringing
the total dividends declared with respect to the period to 5.18 pence per
share. The record date for the dividend is 15 August 2025 and the payment date
is 29 August 2025.
For the six months ended 30 June 2025
8. Investments at fair value through profit or loss
30 June 2025 31 December 2024
£'000 £'000
Opening balance (1 January 2025) 5,142,245 5,538,636
Additions 176 14,553
Disposals - (41,276)
Repayment of shareholder loan investments (note 18) (4,837) (28,439)
Movement in fair value of investments (206,628) (341,229)
4,930,956 5,142,245
The investments made in underlying assets are carried at fair value through
profit and loss. The investments are typically made through a combination of
shareholder loans and equity into the SPVs which own the underlying asset. The
nominal value of the shareholder loan investments as at 30 June 2025 was
£1,432,660,243 (31 December 2024: £1,437,028,860).
Fair value measurements
As disclosed on page 83 of the Company's Annual Report for the year ended 31
December 2024, IFRS 13 "Fair Value Measurement" requires disclosure of fair
value measurement by level. The level of fair value hierarchy within the
financial assets or financial liabilities ranges from level 1 to level 3 and
is determined on the basis of the lowest level input that is significant to
the fair value measurement.
The fair value of the Group's investments is ultimately determined by the
underlying net present values of the SPV investments. Due to their nature,
they are always expected to be classified as level 3 as the investments are
not traded and contain unobservable inputs. There have been no transfers
between levels during the period.
Sensitivity analysis
The fair value of the Group's investments is £4,930,956,010 (31 December
2024: £5,142,244,619). The analysis below is provided to illustrate the
sensitivity of the fair value of investments to an individual input, while all
other variables remain constant. The Board considers these changes in inputs
to be within reasonable expected ranges. This is not intended to imply the
likelihood of change or that possible changes in value would be restricted to
this range.
30 June 2025
Input Base case Change in input Change in fair value of investments Change in NAV per share
£'000 pence
Discount rate 11 per cent levered portfolio IRR + 0.5 per cent (140,697) (6.3)
- 0.5 per cent 148,358 6.7
Long term inflation rate RPI: 4.25 per cent (2025), 3.75 per cent (2026), 3.5 per cent to 2030, 2.5 per - 0.5 per cent (149,789) (6.7)
cent thereafter
CPI: 3.5 per cent (2025), 3 per cent (2026), 2.5 per cent thereafter
+ 0.5 per cent 157,095 7.1
Energy yield P50 10 year P90 (318,961) (14.4)
10 year P10 318,737 14.4
Power price Forecast by reputable consultant - 10 per cent (309,128) (13.9)
+ 10 per cent 308,870 13.9
Asset life 30 years - 5 years (327,385) (14.7)
+ 5 years 218,733 9.9
31 December 2024
Input Base case Change in input Change in fair value of investments Change in NAV per share
£'000 pence
Discount rate 11 per cent levered portfolio IRR + 0.5 per cent (149,622) (6.6)
- 0.5 per cent 157,924 7.0
Long term inflation rate RPI: 3.5 per cent to 2030, 2.5 per cent thereafter - 0.5 per cent (149,036) (6.6)
CPI: 2.5 per cent
+ 0.5 per cent 156,298 6.9
Energy yield P50 10 year P90 (331,025) (14.7)
10 year P10 330,927 14.7
Power price Forecast by reputable consultant - 10 per cent (324,541) (14.4)
+ 10 per cent 321,437 14.3
Asset life 30 years - 5 years (330,080) (14.6)
+ 5 years 219,042 9.7
The portfolio is valued on an unlevered basis using a lower discount rate for
fixed cash flows and a higher discount rate for merchant cash flows. This
results in a blended unlevered portfolio IRR. The equivalent levered
portfolio IRR is calculated assuming 35 per cent gearing and an all-in
interest cost of 5 per cent.
The sensitivities above are assumed to be independent of each other. Combined
sensitivities are not presented.
9. Unconsolidated subsidiaries, associates and joint ventures
There were no changes to the unconsolidated subsidiaries or the associates and
joint ventures of the Group as disclosed on pages 85 and 86 of the Company's
Annual Report for the year ended 31 December 2024.
There were no material changes to guarantees and counter-indemnities provided
by the Group, as disclosed on page 87 of the Company's Annual Report for the
year ended 31 December 2024. The fair value of these guarantees and
counter-indemnities provided by the Group are considered to be £nil (30 June
2024: £nil).
10. Receivables
30 June 2025 31 December 2024
£'000 £'000
Security cash deposits 17,494 13,340
Swap interest receivable from counterparties - 3,816
VAT receivable 271 1,191
Prepayments 232 180
Amounts due from SPVs 54 10
18,051 18,537
11. Payables
30 June 2025 31 December 2024
£'000 £'000
Loan interest payable (note 12) 13,079 13,957
Commitment fees payable (note 12) 16 12
Investment management fee payable 3,967 6,737
Amounts due to SPVs 1,931 821
Share buybacks payable 972 636
Share buyback costs payable 31 13
Transaction costs payable 339 347
Other payables 1,265 1,167
21,600 23,690
12. Loans and borrowings
30 June 2025 31 December 2024
£'000 £'000
Opening balance 1,760,000 1,790,000
Revolving credit facility
Drawdowns - 14,000
Derecognition of RCF on modification - (400,000)
Recognition of RCF on modification - 400,000
Gain / (loss) on modification - -
Repayments - (144,000)
Term debt facilities
Repayments - (25,000)
Derecognition of term debt facilities on modification - (1,365,000)
Drawdowns - 125,000
Recognition of term debt facilities on modification - 1,365,000
Gain / (loss) on modification - -
Closing balance 1,760,000 1,760,000
Reconciled as:
Current liabilities - -
Non current liabilities 1,760,000 1,760,000
For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Loan interest 57,253 46,767
Commitment fees 438 669
Letter of credit fees 250 506
Professional fees 26 -
Other facility fees 353 94
58,320 48,036
Loan income (8,993) -
Finance expense 49,327 48,036
The loan balance as at 30 June 2025 has not been adjusted to reflect amortised
cost, as the amounts are not materially different from the outstanding
balances.
The Company completed a modification of its debt facilities on 26 September
2024 as disclosed on pages 89 to 90 of the Company's Annual Report. There are
no changes to the terms of the Company's debt facilities as disclosed on page
89 of the Company's Annual Report.
There are no changes to the terms of the Company's revolving credit facility
as disclosed on page 89 of the Company's Annual Report for the year ended 31
December 2024. As at 30 June 2025, the balance of this facility was £270
million (31 December 2024: £270 million), accrued interest was £nil (31
December 2024: £nil) and the outstanding commitment fee payable was £16,384
(31 December 2024: £11,575).
The Company's term debt facilities and associated interest rate swaps, with
various maturity dates, are set out in the below table:
Provider Maturity date Loan margin Loan Principal Accrued interest at 30 June 2025 ((1))
(£ 000)
% £'000 £'000
NAB 01-Nov-26 1.50% 75,000 682
NAB 01-Nov-26 1.50% 25,000 227
CIBC 14-Nov-26 1.40% 100,000 830
Lloyds 09-May-27 1.60% 150,000 -
CBA 04-Nov-27 1.60% 100,000 910
ABN AMRO 02-May-28 1.75% 100,000 -
Virgin Money 03-May-28 1.75% 50,000 -
ANZ 03-May-28 1.75% 75,000 -
Barclays 03-May-28 1.75% 25,000 -
NAB 26-Sep-29 1.55% 100,000 1,544
ANZ 26-Sep-29 1.60% 75,000 1,168
AXA 31-Jan-30 3.03% ((2)) 125,000 1,536
AXA 31-Jan-30 1.70% 75,000 1,873
CBA 26-Sep-30 1.65% 150,000 2,355
AXA 28-Apr-31 6.434% ((2)) 25,000 -
AXA 28-Apr-31 1.80% 115,000 -
AXA 26-Sep-31 5.442% ((2)) 25,000 358
CIBC 26-Sep-31 1.75% 100,000 1,596
1,490,000 13,079
( )
(1) Loan interest is based on loan margin plus applicable SONIA rate or all in
fixed rate
(2) All in fixed rate
13. Interest rate swaps held at fair value through profit or loss
As outlined on page 91 of the Company's Annual Report for the year ended 31
December 2024, the Group holds interest rate swaps on £1,200 million of its
term loans.
The interest rate swaps have been recognised as separate financial instruments
at fair value, as summarised in the table below.
30 June 2025 31 December 2024
£'000 £'000
Opening balance (13,782) -
Fair value of interest rate swap liabilities on novation - (21,932)
Movement in fair value of interest rate swap liabilities (2,993) 8,150
Fair value of interest rate swap liabilities (16,775) (13,782)
30 June 2025 31 December 2024
£'000 £'000
Opening balance 39,999 -
Fair value of interest rate swap assets on novation - 28,462
Movement in fair value of interest rate swap assets (17,579) 11,537
Fair value of interest rate swap assets 22,420 39,999
Net fair value of interest rate swaps 5,645 26,217
Reconciled as:
Current assets 5,265 -
Non current assets 17,155 39,999
Current liabilities (3,894) -
Non current liabilities (12,881) (13,782)
IFRS 13 requires disclosure of fair value measurement by level, as further
detailed in note 8. The fair value of the interest rate swaps associated with
the Group's term debt facilities are measured at each reporting date,
calculated as the present value of estimated future cash flows under the fixed
and floating leg of each swap. Therefore, these have been classified as level
2, because they contain inputs other than quoted prices that are observable
for the asset.
Due to the nature of the interest rate swaps, they are always expected to be
classified as Level 2. There have been no transfers between levels during the
six months ended 30 June 2025.
Any transfers between the levels would be accounted for on the last day of
each financial period.
14. Contingencies and commitments
There were no contingencies and commitments for the period ended 30 June 2025.
15. Share capital - ordinary shares of £0.01
Date Authorised, issued and fully paid Number of shares issued Share capital Share premium Capital redemption reserve Treasury reserve Total
£'000 £'000 £'000 £'000 £'000
1 January 2025 2,254,109,306 23,074 2,471,821 113 (73,172) 2,421,836
Share buybacks: Repurchased and held in treasury (35,061,951) - - - (40,860) (40,860)
(35,061,951) - - - (40,860) (40,860)
Shares allotted from treasury to the Investment Manager
13 February 2025 Q1 2025 Equity Element 271,791 - - - 375 375
15 May 2025 Q2 2025 Equity Element 250,081 - - - 375 375
521,872 - - - 750 750
30 June 2025 2,219,569,227 23,074 2,471,821 113 (113,282) 2,381,726
16. Net assets per share
30 June 2025 31 December 2024
Net assets - £'000 3,182,652 3,409,104
Number of ordinary shares in issue 2,219,569,227 2,254,109,306
Total net assets - pence 143.4 151.2
17. Reconciliation of operating profit for the period to net cash from operating activities
For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Operating profit for the year (2,489) 67,126
Adjustments for:
Movement in fair value of investments (note 8) 206,628 136,737
Transaction costs 339 196
(Increase) / decrease in receivables (3,363) 1,024
Increase in payables (1,542) (1,991)
Equity Element of Investment Manager's fee (note 2) 750 750
Net cash flows from operating activities 200,323 203,842
18. Related party transactions
During the period, the Company increased its loan to Holdco by £626,129 (30
June 2024: £2,431,779) and Holdco settled amounts of £227,954,054 (30 June
2024: £244,683,789). The amount outstanding at the period end was
£2,003,369,750 (31 December 2024: £2,230,697,675).
The below table shows dividends received in the period from the Group's
investments.
For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Clyde 22,699 18,048
Humber Holdco ((1)) 14,309 18,152
Stronelairg Holdco ((4)) 13,481 12,803
South Kyle Wind 11,974 7,850
London Array Holdco ((2)) 11,095 15,554
Corriegarth 10,192 4,564
Walney Holdco ((3)) 7,410 14,084
North Hoyle 6,366 5,120
Brockaghboy 5,528 4,279
ML Wind ((7)) 5,047 3,675
Braes of Doune 4,463 6,600
Rhyl Flats 4,167 3,792
Dunmaglass Holdco ((10)) 3,842 3,194
SYND Holdco ((5)) 3,665 5,201
Andershaw 3,585 3,574
Tom nan Clach 3,272 2,230
Fenlands ((6)) 2,992 3,840
Stroupster 2,898 7,877
Screggagh 2,883 1,379
Twentyshilling 2,381 1,709
Windy Rig 2,364 2,961
Hornsea 1 Holdco ((9)) 2,171 -
Little Cheyne Court 2,132 3,321
Cotton Farm 2,083 3,231
Slieve Divena 2,074 2,148
Maerdy 2,008 2,254
Slieve Divena 2 1,975 1,429
Glen Kyllachy 1,754 2,786
Kildrummy 1,707 2,720
Kype Muir Extension 1,702 -
Hoylake ((8)) 1,661 3,921
Church Hill 1,660 1,360
Crighshane 1,548 2,333
Tappaghan 1,509 2,125
Dalquhandy 1,373 606
Bishopthorpe 1,339 2,608
Langhope Rig 1,252 1,853
Earl's Hall Farm 1,183 1,838
Bicker Fen 1,040 1,560
Douglas West 952 2,547
Bin Mountain 828 642
Carcant 651 751
177,215 186,519
(1) The Group's investment in Humber Gateway is held through Humber
Holdco.
(2) The Group's investment in London Array is held through London Array
Holdco.
(3) The Group's investment in Walney is held through Walney Holdco.
(4) The Group's investment in Stronelairg is held through Stronelairg
Holdco.
(5) The Group's investment in Drone Hill, North Rhins, Sixpenny Wood and
Yelvertoft are held through SYND Holdco
(6) The Group's investments in Deeping St.Nicholas, Glass Moor, Red House and
Red Tile are held through Fenlands
(7) The Group's investments in Middlemoor and Lindhurst are held through ML
Wind.
(8) The Group's investment in Burbo Bank Extension is held through
Hoylake.
(9) The Group's investment in Hornsea 1 is held through Hornsea 1 Holdco.
(10) The Group's investment in Dunmaglass is held through Dunmaglass Holdco.
(11) The Group's investment in Tom nan Clach is held through Breeze Bidco.
The table below shows the Group's shareholder loans with the wind farm
investments.
Loans at 1 January 2025((1)) Loan repayments in the period Loans at 30 June 2025 Accrued interest at 30 June 2025 Total
£'000 £'000 £'000 £'000 £'000
Andershaw 29,156 - 29,156 235 29,391
Church Hill 12,428 - 12,428 139 12,567
Clyde 71,503 - 71,503 992 72,495
Corriegarth 41,509 - 41,509 96 41,605
Crighshane 18,182 - 18,182 293 18,475
Dalquhandy 24,527 - 24,527 169 24,696
Douglas West 23,281 - 23,281 574 23,855
Dunmaglass Holdco ((2)) 56,864 - 56,864 770 57,634
Glen Kyllachy 46,630 - 46,630 107 46,737
Hornsea 1 Holdco ((3)) 100,465 - 100,465 3,120 103,585
Hoylake ((4)) 175,795 (2,395) 173,400 0 173,400
Kype Muir Extension 30,159 (600) 29,559 590 30,149
London Array ((5)) 127,689 - 127,689 1,381 129,070
Slieve Divena 2 20,025 - 20,025 46 20,071
South Kyle 206,791 - 206,791 2,312 209,103
Stronelairg Holdco((6)) 86,619 - 86,619 1,270 87,889
Tom nan Clach 60,604 (1,842) 58,762 517 59,279
Twentyshilling 32,190 - 32,190 360 32,550
Walney Holdco ((7)) 172,727 - 172,727 199 172,926
Windy Rig 36,772 - 36,772 411 37,183
1,373,916 (4,837) 1,369,079 13,581 1,382,660
( )
(1) Excludes accrued interest at 31 December 2024 of £13,113,116
(2) The Group's investment in Dunmaglass is held through Dunmaglass Holdco.
(3) The Group's investment in Hornsea 1 is held through Hornsea 1 Holdco.
(4) The Group's investment in Burbo Bank Extension is held through Hoylake.
(5) The Group's investment in London Array is held through London Array
Holdco.
(6) The Group's investment in Stronelairg is held through Stronelairg Holdco.
(7) The Group's investment in Walney is held through Walney Holdco
19. Subsequent events
On 29 July 2025, the Board approved a dividend of 2.59 pence per share with
respect to the quarter ended June 2025. The record date for the dividend is 15
August 2025 and the payment date is 29 August 2025.
On 29 July 2025, the Company entered into agreements to part dispose of
interests in Andershaw, Bishopthorpe and Hornsea 1 wind farms.
Company Information
Registered Company Number
Directors (all non-executive)
Lucinda Riches C.B.E (Chairman) 08318092
Caoimhe Giblin
Nick Winser C.B.E. Registered Office
Jim Smith 5(th) Floor
Abigail Rotheroe 20 Fenchurch Street
London
EC3M 3BY
Taraneh Azad ((1))
Investment Manager
Schroders Greencoat LLP Registered Auditor
1 London Wall Place BDO LLP
London 55 Baker Street
EC2Y 5AU London
W1U 7EU
Administrator and Company Secretary
Ocorian Administration (UK) Limited
Unit 4, The Legacy Building Joint Broker
Northern Ireland Science Park RBC Capital Markets
Queen's Road 100 Bishopsgate
Belfast London
BT3 9DT EC2N 4AA
Depositary
Ocorian Depositary (UK) Limited
Unit 4, The Legacy Building Joint Broker
Northern Ireland Science Park Jefferies International Limited
Queen's Road 100 Bishopsgate
Belfast London
BT3 9DT EC2N 4JL
Registrar
Computershare Limited
The Pavilions
Bridgewater Road
Bristol
BS99 6ZZ
((1) ) Appointed to the Board with effect from 1 February 2025.
Defined Terms
ABN AMRO means ABN AMRO Bank N.V.
Aggregate Group Debt means the Group's proportionate share of outstanding
third party borrowings including its share of the limited recourse debt in
Hornsea 1
AGM means Annual General Meeting of the Company
AI means Artificial Intelligence
Alternative Performance Measure means a financial measure other than those
defined or specified in the applicable financial reporting framework
Andershaw means Andershaw Wind Power Limited
ANZ means Australia and New Zealand Banking Group Limited
AXA means funds managed by AXA Investment Managers UK Limited
Barclays means Barclays Bank PLC
BDO LLP means the Company's Auditor as at the reporting date
Bicker Fen means Bicker Fen Windfarm Limited
Bin Mountain means Bin Mountain Wind Farm (NI) Limited
Bishopthorpe means Bishopthorpe Wind Farm Limited
Board means the Directors of the Company
Braes of Doune means Braes of Doune Wind Farm (Scotland) Limited
Breeze Bidco means Breeze Bidco (TNC) Limited
Brockaghboy means Brockaghboy Windfarm Limited
Burbo Bank Extension means Hoylake Wind Limited, Greencoat Burbo Extension
Holding (UK) Limited, Burbo Extension Holding Limited and Burbo Extension
Limited
Carcant means Carcant Wind Farm (Scotland) Limited
Cash Fee means the cash fee that the Investment Manager is entitled to under
the Investment Management Agreement
CBA means Commonwealth Bank of Australia
CFD means Contract For Difference
Church Hill means Church Hill Wind Farm Limited
CIBC means Canadian Imperial Bank of Commerce
Clyde means Clyde Wind Farm (Scotland) Limited
CO(2) means carbon dioxide
Company means Greencoat UK Wind PLC
Corriegarth means Corriegarth Wind Energy Limited
Cotton Farm means Cotton Farm Wind Farm Limited
CPI means the Consumer Price Index
Crighshane means Crighshane Wind Farm Limited
Dalquhandy means Dalquhandy Wind Farm Limited
DCF means discounted cash flows
DESNZ means Department of Energy Security and Net Zero
Deeping St. Nicholas means Deeping St. Nicholas wind farm
Depreciation means the unwinding of the discount rate assumptions
Douglas West means Douglas West Wind Farm Limited
Drone Hill means Drone Hill Wind Farm Limited
DTR means the Disclosure Guidance and Transparency Rules sourcebook issued by
the Financial Conduct Authority
Dunmaglass means Dunmaglass Holdco and Dunmaglass Wind Farm
Dunmaglass Holdco means Greencoat Dunmaglass Holdco Limited
Dunmaglass Wind Farm means Dunmaglass Wind Farm Limited
Earl's Hall Farm means Earl's Hall Farm Wind Farm Limited
Equity Element means the ordinary shares issued to the Investment Manager
under the Investment Management Agreement
ESG mean Environmental, Social and Governance
EU means the European Union
Fenlands means Fenland Windfarms Limited
GAV means Gross Asset Value
GB means Great Britain consisting of England, Scotland and Wales
Glass Moor means Glass Moor wind farm
Glen Kyllachy means Glen Kyllachy Wind Farm Limited
Group means Greencoat UK Wind PLC and Greencoat UK Wind Holdco Limited
Holdco means Greencoat UK Wind Holdco Limited
Hornsea 1 means Hornsea 1 Holdco and Hornsea 1 Limited
Hornsea 1 Holdco means Jupiter Investor TopCo Limited
Hoylake means Hoylake Wind Limited
Humber Gateway means Humber Holdco and Humber Wind Farm
Humber Holdco means Greencoat Humber Limited
Humber Wind Farm means RWE Renewables UK Humber Wind Limited
IAS means International Accounting Standard
IFRS means International Financial Reporting Standards
Investment Management Agreement means the agreement between the Company and
the Investment Manager
Investment Manager means Schroders Greencoat LLP
IPO means Initial Public Offering
IRR means Internal Rate of Return
Kildrummy means Kildrummy Wind Farm Limited
Kype Muir Extension means Kype Muir Extension Wind Farm Limited
KME Holdco means Greencoat KME Holdco Limited
Langhope Rig means Langhope Rig Wind Farm Limited
Levered portfolio IRR means the Internal Rate of Return with an assumed level
of gearing
Lindhurst means Lindhurst wind farm
Little Cheyne Court means Little Cheyne Court Wind Farm Limited
London Array means London Array Holdco & London Array Limited
London Array Holdco means Greencoat London Array Holdco Limited
Lloyds means Lloyds Bank PLC and Lloyds Bank Corporate Markets PLC
Maerdy means Maerdy Wind Farm Limited
Middlemoor means Middlemoor wind farm
ML Wind means ML Wind LLP
NAB means National Australia Bank
Nanclach means Nanclach Limited
NAV means Net Asset Value
NAV per Share means the Net Asset Value per Ordinary Share
North Hoyle means North Hoyle Wind Farm Limited
North Rhins means North Rhins Wind Farm Limited
PPA means Power Purchase Agreement entered into by the Group's wind farms
RBC means the Royal Bank of Canada
RBS International means the Royal Bank of Scotland International Limited
RCF means revolving credit facility
Red House means Red House wind farm
Red Tile means Red Tile wind farm
REMA means Review of Energy Markets Arrangements
Review Section means the front end review section of this report (including
but not limited to the Chairman's Statement and the Investment Manager's
Report)
Rhyl Flats means Rhyl Flats Wind Farm Limited
ROC means Renewable Obligation Certificate
RPI means the Retail Price Index
Santander means Santander Global Banking and Markets
Screggagh means Screggagh Wind Farm Limited
Sixpenny Wood means Sixpenny Wood Wind Farm Limited
Slieve Divena means Slieve Divena Wind Farm Limited
Slieve Divena 2 means Slieve Divena Wind Farm No. 2 Limited
SONIA means the Sterling Overnight Index Average
South Kyle means South Kyle Wind Farm Limited
SPVs means the Special Purpose Vehicles which hold the Group's investment
portfolio of underlying wind farms
Stronelairg means Stronelairg Holdco and Stronelairg Wind Farm
Stronelairg Holdco means Greencoat Stronelairg Holdco Limited
Stronelairg Wind Farm means Stronelairg Wind Farm Limited
Stroupster means Stroupster Caithness Wind Farm Limited
SYND Holdco means SYND Holdco Limited
Tappaghan means Tappaghan Wind Farm (NI) Limited
Tom nan Clach means Breeze Bidco and Nanclach
TSR means Total Shareholder Return
Twentyshilling means Twentyshilling Limited
UK means the United Kingdom of Great Britain and Northern Ireland
Walney means Walney Holdco and Walney Wind Farm
Walney Holdco means Greencoat Walney Holdco Limited
Walney Wind Farm means Walney (UK) Offshore Windfarms Limited
Windy Rig means Windy Rig Wind Farm Limited
Yelvertoft means Yelvertoft Wind Farm Limited
Alternative Performance Measures
Performance Measure Definition As at As at
30 June 2025 31 December 2024
Aggregate Group Debt The Group's proportionate share of outstanding third party borrowings of £2,254.1 million £2,243.6 million
£1,760 million per note 12 to the financial statements plus limited recourse
debt of £500 million at Hornsea 1, not included in the Consolidated Statement
of Financial Position.
CO(2) emissions avoided per annum The estimate of the portfolio's CO(2) emissions avoided through the 2.4 million tonnes 2.2 million tonnes
displacement of thermal generation, as at the relevant reporting date. This is
calculated based on the thermal generation displaced. In the UK, this assumes
the displacement of CCGT generation at a carbon intensity factor of 0.4
kgCO2e/KWh.
GAV Gross Asset Value £5,436.7 million £5,652.7 million
Homes powered per annum The estimate of the number of homes powered by electricity generated by the 2.2 million homes 2.0 million homes
portfolio, as at the relevant reporting date. This is calculated based on
average household consumption estimates. In the UK, this was 2.7MWh/annum
(OFGEM).
NAV Net Asset Value £3,182.7 million £3,409.1 million
NAV per share The Net Asset Value per ordinary share per note 16 to the financial statements 143.4 pence 151.2 pence
Performance Measure Definition For the six months ended For the six months ended
30 June 2025 30 June 2024
Net cash generation The operating cash flow of the Group and wind farm SPVs as broken down below. £163.3 million £165.4 million
Total Shareholder Return The theoretical return to a shareholder on a closing market basis, assuming 11.5 per cent 12.7 per cent
that all dividends received were reinvested without transaction costs into the
Ordinary Shares of the Company at the close of business on the day the shares
were quoted ex dividend.
Group and wind farm SPV cash flows For the six months ended
30 June 2025
For the six months ended 30 June 2024
£'000 £'000
Net cash generation ( ) 163,301 165,425
Dividends paid (113,954) (136,381)
(Acquisitions) / disposals (176) -
Transaction costs (381) (251)
Share buybacks (40,258) (43,983)
Share buyback costs (247) (280)
Net amounts drawn under debt facilities - -
Upfront finance costs - -
Movement in cash (Group and wind farm SPVs) 8,285 (15,470)
Opening cash balance (Group and wind farm SPVs) 155,027 221,217
Closing cash balance (Group and wind farm SPVs) 163,312 205,747
Net cash generation 163,301 165,425
Dividends 113,954 107,780
Dividend cover 1.4x 1.5x
Net Cash Generation - Breakdown For the six months ended For the six months ended
30 June 2025
30 June 2024
£'000 £'000
Revenue 418,588 419,346
Operating expenses (115,324) (102,248)
Tax (39,910) (30,219)
SPV level debt interest (8,282) (9,153)
SPV level debt amortisation (27,125) (40,514)
Other (4,235) (8,263)
Wind farm cash flow 223,712 228,949
Management fee (13,841) (15,618)
Operating expenses (1,553) (1,669)
Ongoing finance costs (46,339) (48,082)
Other 3,134 2,461
Group cash flow (58,599) (62,908)
VAT (Group and wind farm SPVs) (1,812) (616)
Net cash generation 163,301 165,425
Net Cash Generation - Reconciliation to Net Cash Flows from Operating For the six months ended 30 June 2025 For the six months ended 30 June 2024
Activities
£'000 £'000
Net cash flows from operating activities 200,323 203,842
Movement in cash balances of wind farm SPVs 326 1,254
Repayment of shareholder loan investment 4,837 11,355
Finance costs (46,339) (48,082)
Movement in security cash deposits 4,154 (2,944)
Net cash generation 163,301 165,425
Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Group were identified in
detail in the Company's Annual Report to 31 December 2024, summarised as
follows:
• dependence on the Investment Manager;
• financing risk; and
• risk of investment returns becoming unattractive.
Also, the principal risks and uncertainties affecting the investee companies
were identified in detail in the Company's Annual Report to 31 December 2024,
summarised as follows:
• changes in Government policy on renewable energy;
• a decline in the market price of electricity;
• risk of low wind resource;
• lower than expected asset life; and
• health and safety and the environment.
The principal risks outlined above remain the most likely to affect the Group
and its investee companies in the second half of the year.
Cautionary Statement
The Review Section of this report has been prepared solely to provide
additional information to shareholders to assess the Company's strategies and
the potential for those strategies to succeed. These should not be relied on
by any other party or for any other purpose.
The Review Section may include statements that are, or may be deemed to be,
"forward looking statements". These forward looking statements can be
identified by the use of forward looking terminology, including the terms
"believes", "estimates", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or comparable
terminology.
These forward looking statements include all matters that are not historical
facts. They appear in a number of places throughout this document and include
statements regarding the intentions, beliefs or current expectations of the
Directors and the Investment Manager concerning, amongst other things, the
investment objectives and Investment Policy, financing strategies, investment
performance, results of operations, financial condition, liquidity, prospects,
and distribution policy of the Company and the markets in which it invests.
By their nature, forward looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future. Forward looking statements are not guarantees of future
performance. The Company's actual investment performance, results of
operations, financial condition, liquidity, distribution policy and the
development of its financing strategies may differ materially from the
impression created by the forward looking statements contained in this
document.
Subject to their legal and regulatory obligations, the Directors and the
Investment Manager expressly disclaim any obligations to update or revise any
forward looking statement contained herein to reflect any change in
expectations with regard thereto or any change in events, conditions or
circumstances on which any statement is based.
In addition, the Review Section may include target figures for future
financial periods. Any such figures are targets only and are not forecasts.
This Half Year Report has been prepared for the Company as a whole and
therefore gives greater emphasis to those matters which are significant in
respect of Greencoat UK Wind PLC and its subsidiary undertakings when viewed
as a whole.
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