Half-year Report
01/08/2024 07:00
01 August 2024
Premier Miton Global Renewables Trust Plc (the `Company')
Legal Entity Identifier: 2138004SR19RBRGX6T68
Premier Miton Global Renewables Trust PLC's half report and accounts for the
six months to 30 June 2024 is available
at https://www.globalrenewablestrust.com/documents/.
It has also been submitted in full unedited text to the Financial Conduct
Authority's National Storage Mechanism and is available for inspection
at data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) in accordance with
DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.
PREMIER MITON GLOBAL RENEWABLES TRUST PLC
Half Year Report
for the six months to 30 June 2024
INVESTMENT OBJECTIVES
The investment objectives of the Premier Miton Global Renewables Trust PLC are
to achieve a high income from, and to realise long-term growth in the capital
value of its portfolio. The Company seeks to achieve these objectives by
investing principally in the equity and equity-related securities of companies
operating primarily in the renewable energy sector, as well as other
sustainable infrastructure investments.
GREEN ECONOMY - LONDON STOCK EXCHANGE
In January 2021, the Company received London Stock Exchange's Green Economy Mark, a classification which is awarded to companies and funds that are driving the global green economy. To qualify for the Green Economy Mark, companies and funds must generate 50% or more of their total annual revenues from products and services that contribute to the global green economy.
PRI - PRINCIPLES FOR RESPONSIBLE INVESTMENT
The Fund Manager integrates Governance and Social responsibility into its investment process. Premier Miton is a signatory to the Principles for Responsible Investment, an organisation which encourages and supports its signatories to incorporate environmental, social, and governance factors into their investment and ownership decisions.
FE FUNDINFO - CROWN FUND RATING - 4 STARS
The Crown Fund Rating is a global quantitative rating that is based on a fund's historical performance relative to an appropriate benchmark. The rating relies on three key measurements - alpha, volatility and consistent performance, to dictate the one-to-five Crown score. The ratings are designed to help investors distinguish funds that have superior performance in terms of stock picking, consistency and risk control.
COMPANY HIGHLIGHTS
for the six months to 30 June 2024
TOTAL RETURN PERFORMANCE
Six months to Year ended
30 June 31 December
2024 2023
Total Assets Total Return 1 (8.6%) (7.5%)
S&P Global Clean Energy Index (GBP) 2 (12.7%) (20.1%)
Ongoing charges 3 2.05% 1.81%
ORDINARY SHARE RETURNS
Six months to Year ended
30 June 31 December
2024 2023 % change
Net Asset Value per Ordinary Share (cum income) 4 120.28p 146.86p (18.1%)
Mid-market price per Ordinary Share 105.00p 118.50p (11.4%)
Discount to Net Asset Value (12.7%) (19.3%)
Net Asset Value Total Return 5 (18.1%) (13.5%)
Share Price Total Return 2 (8.0%) (19.2%)
RETURNS AND DIVIDENDS
Six months to Six months to
30 June 30 June
2024 2023 % change
Revenue Return per Ordinary Share 4.46p 4.43p 0.7%
Net Dividends declared per Ordinary Share 4.00p 3.70p 8.1%
HISTORIC FULL YEAR DIVIDENDS
31 December 31 December
Dividends paid in respect of the year to: 2023 2022 % change
Dividend 7.40p 7.00p 5.7%
ZERO DIVIDEND PREFERENCE SHARE RETURNS
Six months to Year ended
30 June 31 December
2024 2023 % change
Net Asset Value per Zero Dividend Preference Share(4) 119.11p 116.24p 2.5%
Mid-market price per Zero Dividend Preference Share(2) 115.00p 110.00p 4.5%
Discount to Net Asset Value (3.4%) (5.4%)
HURDLE RATES (PER ANNUM)
As at As at
30 June 31 December
2024 2023
Ordinary Shares
Hurdle rate to return the 30 June 2024 share price of 105.00p (December 2023: 118.50p) at 28 November 2025 6 (2.4%) (3.9%)
Zero Dividend Preference Shares
Hurdle rate to return the redemption share price for the 2025 ZDPs of 127.6111p at 28 November 2025 7 (41.1%) (35.9%)
BALANCE SHEET
Six months to Year ended
30 June 31 December
2024 2023 % change*
Gross Assets less Current Liabilities (excluding Zero Dividend Preference Shares) £38.9m £43.3m (10.3%)
Zero Dividend Preference Shares (£16.9m) (£16.5m) 2.5%
Equity Shareholders' Funds £21.9m £26.8m (18.1%)
Gearing on Ordinary Shares 8 77.2% 61.7%
Zero Dividend Preference Share Cover (non-cumulative) 9 2.03x 2.26x
1 Source: Premier Fund Managers Ltd ("PFM Ltd"). Based on opening and closing total assets plus dividends marked "ex-dividend" within the period.
2 Source: Bloomberg.
3 Ongoing charges have been based on the Company's management fees and other operating expenses as a percentage of gross assets less current liabilities over the period (excluding ZDPs' accrued capital entitlement).
4 Articles of Association basis.
5 Source: PFM Ltd. Based on opening and closing NAVs plus dividends marked "ex-dividend".
6 Source: PFM Ltd. The Ordinary Shares Hurdle Rate is the compound rate of growth of the total assets required each year to meet the Ordinary Share price at 30 June 2024.
7 Source: PFM Ltd. The ZDP Shares Hurdle Rate is the compound rate that the total assets could decline each year until the predetermined redemption date, for ZDP shareholders still to receive the redemption entitlement.
8 Source: PFM Ltd. Based on Zero Dividend Preference Shares divided by Ordinary Shareholders' Equity at end of each period.
9 Source PFM Ltd. Non-cumulative cover = Gross assets at period end divided by final repayment of ZDP Shares plus management fees charged to capital.
* % change is calculated on actual figures, and may be different from that which could be obtained by using rounded figures shown within this section.
CHAIR'S STATEMENT
for the six months to 30 June 2024
Introduction
Your Company's performance in the first half of 2024 was again disappointing,
as renewable energy remained out of favour in markets world-wide. With
apologies for repeating what I have already said in previous reports, your
Board believes this to be almost entirely a consequence of a macro-economic
environment which markets perceive to be negative for renewable energy
investment.
Coming into the year, it was widely expected that inflation would soon begin
to moderate, allowing for central banks to ease monetary policy by reducing
interest rates. However, in key western markets at least, inflation has proved
to be "stickier" than expected, with expectations of material rate cuts being
pushed back toward the end of 2024, and at a more gradual pace than originally
anticipated.
Despite lacklustre share prices, the portfolio has continued to perform well
operationally, as detailed in the Manager's report. Corporate activity within
the sector is picking up slightly, indicating that some private buyers are
willing to pay more for renewable energy assets than public markets, - a
positive signal.
The first half of the year has, however, seen an uptick in political risk.
Recent elections in Europe have indicated a general swing to the right.
Unfortunately, many of the parties gaining in popularity profess to be
sceptical of both clean energy and also climate change more generally, and
this could have potentially negative consequences in the longer term should
this trend continue.
The UK general election in early July, resulted in a new Labour Government. We
are not expecting any fundamental policy changes regarding renewable energy to
result from this, although there could possibly be some planning reforms which
may prove to be positive in the longer term.
November will see a presidential election in the United States. At the time of
writing, Donald Trump is the marginal favourite to regain the presidency for
the Republican Party. Although the finer points of policy are yet to be
fleshed out, Mr. Trump has, again, been vocal in his scepticism toward the
energy transition.
We believe the risks of an adverse US political environment to be lower than
perhaps perceived by the market, not least since the majority of US government
spending and tax incentives toward clean energy are directed at Republican
leaning states. Furthermore, the days of direct subsidy are behind us, and
renewable energy is exceptionally cost competitive in the US; renewable power
being transacted between willing buyers and sellers at market prices, with
little to no government interference. Demand for clean power from technology
companies is high and growing strongly.
Performance
Your Company's total assets total return, measuring the performance of the
portfolio including costs, was negative 8.6%. While undoubtedly disappointing,
this was an out-performance of the Trust's performance comparator, the S&P
Global Clean Energy Index, which recorded a negative total return, in
sterling, of 12.7%.
Renewable energy and clean technology again lagged wider equity markets, which
were in positive territory in the first half of 2024. The US market recorded
the strongest performance, with a mid-teens return in sterling, European and
Asian markets generally seeing high single digit positive returns.
Given your Company's geared capital structure, movements in gross assets are
amplified in the net assets. The net asset value ("NAV") total return was
negative 18.1%.
Pleasingly, and despite the difficult environment, the discount at which your
Company's shares trade compared to their NAV, fell from 19.3% at the end of
2023, to 12.7% at June 2024. As such, the share price total return was better
than the NAV total return, at negative 8.0%.
Review of the six months
Undoubtedly, the main headwind facing the Trust is the interest rate
environment. Markets perceive the earnings of renewable energy companies to be
relatively fixed, or "bond-like", and as such, the sector has fallen as yields
have increased.
However, this ignores the good underlying earnings momentum enjoyed by the
sector, from a combination of outright growth coupled with attractive
investment returns. Your Board shares shareholders' frustration at strong
fundamental performance and attractive prospects being met with weak share
prices.
Key commodity prices, such as gas and electricity, were relatively firm over
the six months, with weakness in the first quarter followed by a recovery and
stabilisation in the second. European gas and electricity prices remain at
relatively high levels historically and sit in something of a "sweet-spot" for
renewable energy, being high enough to provide good returns to renewable
generators, while not being so high that economic activity is severely
curtailed, with consequent political risk or windfall taxes.
We believe that the sector also provides opportunities outside of core
renewable energy generation. Indeed, the portfolio's best performing holding
over the period was offshore wind turbine installation vessel owner, Cadeler.
The Manager believes there to be a shortage of vessels capable of installing
the new generation of large offshore wind turbines. One of Cadeler's vessels
is pictured on the cover of this report.
Earnings and Dividends
Income generation has remained healthy, with a modest increase in net revenue
earnings to 4.46p per share over the first half of the year. In April the
Board declared a first interim dividend of 2.00p per share, paid at the end of
June, representing an increase of 8.1% on the prior quarterly dividend level
of 1.85p per share. This brings the quarterly dividend more into line with net
revenue earnings, following the strong earnings growth seen in the 2023
financial year.
The Board has now declared a second interim dividend of 2.00p per share, to be
paid on 30 September 2024 and will be marked ex-dividend on 29 August 2024.
Outlook
The renewable and clean energy sector has experienced a sustained period of
under-performance, as a result of which the Trust's portfolio trades at a
valuation level which could objectively be said to not represent fundamental
value. Investment companies held within the portfolio are trading at steep
discounts to NAV, and renewable energy developers tend to be valued based on
existing assets with little to no value given for projects in construction or
development.
In contrast to share prices, the underlying investee companies within the
portfolio are generally trading well, reporting higher earnings, and paying
attractive dividends. Growth expectations for global renewable energy are
being continually upgraded, and several holdings have commented that returns
on investment, over and above their cost of capital, have increased. This is
not a sector in distress.
I believe that investor patience will eventually be rewarded. In the meantime,
the sector should remain a relatively reliable source of income, with the
prospect of long-term income growth.
Gillian Nott OBE
Chair
1 August 2024
INVESTMENT MANAGER'S REPORT
for the six months to 30 June 2024
Market review
The first half of 2024 has proved to be another tough period for renewable
energy investment, which was a surprise as the underlying trading environment
was relatively benign.
The market has reassessed both the timing and pace of the current interest
rate cycle, pushing back the date at which the major western central banks
will begin to ease monetary policy. High levels of government spending, wage
pressures, and residual liquidity from Covid stimulus programmes have combined
to keep core inflation high, despite headline inflation easing somewhat as
energy prices moderated.
The performance of renewable energy companies has been highly correlated to
interest rate expectations, with fundamental company performance being
relegated to a secondary factor. This has however, had positive implications
for company valuations as earnings have continued to grow in many holdings
even while share prices have fallen.
The operational environment has become increasingly positive as the half year
progressed. Gas and electricity prices fell over the first few months of the
year, before strengthening again over the second quarter. The market price of
European carbon permits followed a similar pattern. Capital costs for new
renewable energy projects have stabilised, although with continued downward
pressure on solar costs due to over-capacity in the supply chain. Several
holdings made positive comments about the availability of attractive returns
on new investment.
An emerging positive trend is the outlook for power demand from data centres,
and in particular from artificial intelligence. Within the portfolio, several
companies have announced sales contracts with technology companies and data
centre operators.
There were no material currency headwinds during the first half of the year,
the value of the Pound holding relatively steady over the period. It declined
marginally against the US Dollar, but gained against the Euro. The portfolio
was unhedged against currency movements over the period.
Portfolio review
Most portfolio holdings lost value during the first half of the year, with
some exceptions, despite often encouraging financial results and underlying
business growth.
We have made only modest changes to the portfolio, both in terms of
geographical allocation and by sub-sector. Investment activity was relatively
low, with purchases of £3.5m and sales of £2.8m.
Two companies held at December 2023 were sold during the period. Firstly, the
remaining Chinese investment, China Suntien Green Energy as a result of a
decision to remove the residual Chinese exposure from the portfolio, and
secondly, Portuguese based renewables developer Greenvolt, which was sold into
an offer for the company.
Two new companies have been added into the portfolio. VH Global Sustainable
Energy Opportunities is an investment company with a global portfolio
including Brazilian hydro assets, Australian solar assets, and UK flexible gas
fired generation including carbon capture. It benefits from being highly
contracted with low debt, and like the rest of the sector, trades at an
attractive discount to NAV. Clean Energy Fuels is a US producer and retailer
of renewable natural gas, mainly produced from digestion of agricultural
waste, being chemically identical to natural gas, for use in the road
transportation sector, principally HGVs.
As in prior years, we categorise core renewable generation companies into two
groups. Firstly, the investment companies, often referred to as yield
companies or "yieldcos", which usually acquire built, or construction-ready,
assets paying out the majority of cash-flow to investors, and raising capital
through new equity. Secondly, integrated development companies, which develop
projects from first inception, retaining some assets and raising capital
through a combination of retained earnings and project sales. Together, these
form approximately 70% of the portfolio.
Yieldcos & Funds
Renewable energy investment companies performed relatively poorly in the first
half of the year, with share prices showing a degree of correlation to bonds
and movements in market interest rates/yields.
Of the larger UK holdings, Greencoat UK Wind, NextEnergy Solar Fund, and
Octopus Renewables Infrastructure, saw share price declines of 12.9%, 12.0%,
and 20.0% respectively. These falls mainly occurred during the first couple of
months of the year and could be attributed to a combination of a falling
electricity price and higher than expected inflation. Disappointingly, share
prices largely failed to respond positively to the recovery in energy prices
seen in the second quarter. First quarter reported NAVs showed low-single
digit declines, much less than share price movements, with the result that
share price discounts to NAV increased over the period.
Despite recent poor performance, we believe the UK listed renewable energy
investment companies remain attractive investments. Discounts to NAVs are at
high levels, and at June 2024 ranged from 17.5% for Greencoat UK Wind to above
30% for Aquila European Renewables and Octopus Renewable Infrastructure.
Dividend yields remain high, typically between 7.5% and 10.0%, with dividends
being well covered by cash flows. Several companies are buying back shares,
both absorbing excess supply and providing a modest boost to NAV per share in
the process.
In addition, some companies have sold assets to both "prove" the NAV and raise
cash to repay short term floating rate borrowings. Where companies have sold
assets, these have been transacted at a premium to NAV, with Octopus having
done particularly well in this regard.
US listed investment companies recorded a more mixed performance. Atlantica
Sustainable Infrastructure's share price increased by 2.1%, with its largest
shareholder (at 42%) Algonquin Power & Utilities, in May agreeing to sell its
stake into a takeover offer for the company from a private buyer. Clearway
Energy's shares fell by 11.4% reflecting the difficult interest rate
environment and heightened perceptions of political risk.
PORTFOLIO SECTOR ALLOCATION
30 June 2024 31 December 2023
Yieldcos & funds 38.6% 40.7%
Renewable energy developers 30.9% 33.7%
Renewable focussed utilities 8.6% 7.8%
Energy storage 6.2% 5.9%
Biomass generation and production 4.9% 5.1%
Renewable technology and service 4.5% 2.0%
Electricity networks 3.3% 2.8%
Renewable financing and energy efficiency 2.8% 2.0%
Waste to energy 0.2% 0.0%
Source: PFM Ltd
Renewable Energy Developers
The portfolio contains a larger number of investments in renewable development
companies than yieldcos, although the average investment size is smaller.
Renewable energy developers recorded a decidedly mixed market performance
during the first half of the year.
Concentrating on the larger holdings, Norwegian listed Bonheur, the holding
company for Fred Olsen Renewables, was a 5.1% position at the end of June. In
addition to its core renewable energy business, Bonheur also owns a wind
turbine installation vessel business (Fred Olsen Windcarrier) and a cruise
line (Fred Olsen Cruises). 2023 saw a fall in profitability of the renewables
business, not unexpected given exceptional results recorded for 2022, but
strongly improved results in vessels and cruise. Overall, 2023 earnings
attributable to shareholders grew by 2.6x, with the company increasing its
dividend by 20%. Despite these results, its share price fell slightly over the
period.
Spain listed Grenergy Renovables, a global solar developer and operator, is
currently constructing what we believe to be the world's largest solar plus
battery storage project, in Chile. The company has managed to pre-contract
much of the output to be generated, and with downward pressure on solar costs,
the project looks set to be highly accretive to future earnings. 2023
financial results were strong, the company managing to grow net income
fivefold with EBITDA (Earnings before Interest, Tax, Depreciation and
Amortisation) more than doubling. Like Bonheur however, its share price fell
slightly over the first half of the year.
RWE's share price performance over the period was very disappointing. The
company reported excellent results for 2023, but indicated lower earnings were
expected in 2024. This should not have been a shock to the market as recent
results have been buoyed by "artificially" high gas and electricity prices,
but RWE's shares declined by 22.4% over the first half of the year in
response. However, better than expected results so far in 2024 indicate that
the company's 2024 earnings guidance could be too conservative, so we would
not be surprised to see upgrades in the second half of the year.
PORTFOLIO GEOGRAPHIC ALLOCATION
June 2024 December 2023
United Kingdom 32.3% 35.5%
Europe (excluding UK) 32.1% 33.8%
Global 19.2% 14.7%
North America 13.0% 11.5%
Latin America 3.5% 3.2%
China 0.0% 1.4%
Source: PFM Ltd
Other sectors
Entering the 10 largest investments for the first time is offshore turbine
installation vessel owner, Cadeler (included within the Renewable Technology
and Service segment). Cadeler currently has four operational vessels, with a
further seven to be delivered between 2024 and 2027. This will make it, by
some distance, the largest player in the sector. It has continued to win
contracts, utilising both existing and to be delivered vessels, at very
encouraging rates, indicating the tightness of demand and supply. Cadeler's
share price increased by 43.6% in the six months to June.
One result of the high level of renewable energy investment is an increased
requirement for investment in utility networks. SSE's regulated utility
business is a key beneficiary, and it is now one of the fastest growing
utilities in Europe, with the company expecting the regulatory value of its
networks to increase by over 15% per year out to 2027. In addition, it is
aiming to more than double its renewable energy capacity from 2022 to 2027.
SSE's share price fell by 3.6% in the first half of the year.
National Grid conducted a £7 billion rights issue over the period, to help
fund its planned £60 billion of capital expenditure over 2025 to 2029. The
Trust supported the issue and exercised its rights. Grid's share price fell by
10.1% over the first half of the year, largely due to the hopefully short-term
impact of its share issue.
Biomass producer and generator, Drax Group, had a positive six months. The UK
government consulted on a potential transitional mechanism to remunerate power
generation at the Drax power station beyond the expiry of existing
arrangements in 2027, pre the start of carbon capture at the plant expected in
the early 2030s. We believe that an agreement between the company and the new
government is likely, possibly late this year or early next. Drax's share
price increased marginally in the period.
Finally, the energy storage companies had a difficult period of trading, with
lower power prices early in the year and a lack of market volatility combining
to reduce the earnings capability of UK batteries. Over the six-month period
Gore Street Energy Storage Fund's share price fell by 27.6%, with Gresham
House Energy Storage Fund falling by 35.5% and Harmony Energy Income Trust by
31.8%. We believe that Gore Street's share price has over-reacted as it is
internationally diversified with its non-UK assets performing well, while
Gresham and Harmony are both UK focussed. This is illustrated by Gore Street
retaining its dividend, while Gresham and Harmony have suspended theirs. The
second quarter saw an improvement in profitability of UK energy storage
assets, and we expect share prices may recover some ground as this continues
in the second half of the year.
Income
Net revenue earnings were relatively consistent with the first half of 2023.
Lower dividends from energy storage companies (detailed above), and a higher
weighting to non-dividend paying companies, were offset by net dividend
increases across the rest of the portfolio.
Some dividend cuts were also seen in a small number of European generators
that pay out a fixed percentage of earnings, given these companies had paid
large dividends in 2023 in respect of their 2022 financial years, when
earnings had been inflated by unusually high-power prices.
Outlook
We hope to see the beginning of long-awaited monetary easing in the second
half of 2024. Given that higher rates have had a very negative impact on
sector valuations, we believe it reasonable to hope that the opposite is also
true.
Irrespective of interest rate driven market sentiment, the sector is
continuing to invest and grow earnings. The current commodity price
environment is relatively benign which may reduce the earnings volatility seen
in some companies in recent years. A period where earnings growth is more
reflective of underlying business growth, rather than commodity price
movements, would be welcome.
We have recently seen a step-up in demand for renewably generated power from
technology companies and data-centres. Long term technology trends such as the
use of artificial intelligence, are likely to lead to higher electricity
demand in future. It is also illustrative of the fact that large corporate
power buyers are increasingly prioritising the purchase of renewably generated
electricity over that generated from fossil fuels.
James Smith
Premier Fund Managers Limited
1 August 2024
INVESTMENT PORTFOLIO
at 30 June 2024
Company Activity Country Value £000 % of total investments Ranking June 2024 Ranking December 2023
Greencoat UK Wind Yieldcos and Investment Companies United Kingdom 2,772 7.2 1 1
NextEnergy Solar Fund Yieldcos and Investment Companies United Kingdom 2,511 6.6 2 2
Clearway Energy `A' Yieldcos and Investment Companies North America 2,507 6.6 3 3
Octopus Renewable Infrastructure Yieldcos and Investment Companies Europe (ex. UK) 2,013 5.3 4 4
Bonheur Renewable energy developers Europe (ex. UK) 1,961 5.1 5 9
Drax Group Biomass generation and production United Kingdom 1,869 4.9 6 6
Grenergy Renovables Renewable energy developers Global 1,849 4.8 7 5
SSE Renewable focussed utilities United Kingdom 1,789 4.7 8 10
Cadeler Renewable technology and service Europe (ex. UK) 1,678 4.4 9 19
RWE Renewable energy developers Europe (ex. UK) 1,625 4.2 10 8
Foresight Solar Fund Yieldcos and Investment Companies United Kingdom 1,532 4.0 11 11
Gore Street Energy Storage Fund Energy storage Global 1,363 3.6 12 12
National Grid Electricity networks Global 1,254 3.3 13 14
Northland Power Renewable energy developers Global 1,153 3.0 14 15
Aquila European Renewables Yieldcos and Investment Companies Europe (ex. UK) 1,072 2.8 15 7
AES Corporation Renewable focussed utilities North America 1,042 2.7 16 16
Enefit Green Renewable energy developers Europe (ex. UK) 958 2.5 17 20
Cloudberry Clean Energy Renewable energy developers Europe (ex. UK) 713 1.9 18 21
Atlantica Sustainable Infrastructure Yieldcos and Investment Companies Global 695 1.8 19 17
US Solar Fund Yieldcos and Investment Companies North America 672 1.8 20 29
Greencoat Renewables Yieldcos and Investment Companies Europe (ex. UK) 658 1.7 21 18
Corp. Acciona Energias Renovables Renewable energy developers Europe (ex. UK) 652 1.7 22 13
GCP Infrastructure Renewable financing and energy efficiency United Kingdom 601 1.6 23 30
Harmony Energy Income Trust Energy storage United Kingdom 587 1.5 24 23
Polaris Renewable Energy Renewable energy developers Latin America 555 1.5 25 27
MPC Energy Solutions Renewable energy developers Latin America 476 1.2 26 32
SDCL Energy Efficiency Income Trust Renewable financing and energy efficiency Global 466 1.2 27 33
Algonquin Power and Utilities Renewable focussed utilities North America 463 1.2 28 28
7C Solarparken Renewable energy developers Europe (ex. UK) 453 1.2 29 25
Solaria Energía y Medio Ambiente Renewable energy developers Europe (ex. UK) 441 1.2 30 22
Gresham House Energy Storage Fund Energy storage United Kingdom 422 1.1 31 26
Serena Energia Renewable energy developers Latin America 313 0.8 32 34
VH Global Sustainable Energy Yieldcos and Investment Companies Global 302 0.8 33 -
Atrato Onsite Energy Renewable energy developers United Kingdom 237 0.6 34 36
Boralex Renewable energy developers Global 232 0.6 35 35
Innergex Renewable Renewable energy developers North America 176 0.5 36 37
Clean Energy Fuels Renewable fuels North America 84 0.2 37 -
Fusion Fuel Green (incl. warrants) Renewable technology and service Europe (ex. UK) 52 0.1 38 38
38,198 99.9
PMGR Securities 2025 PLC ZDP subsidiary United Kingdom 50 0.1
TOTAL INVESTMENTS 38,248 100.0
INTERIM MANAGEMENT REPORT
Premier Miton Global Renewables Trust PLC is required to make the following
disclosures in its Half Year Report:
PRINCIPAL RISKS AND UNCERTAINTIES
The Board believes that the principal risks and uncertainties faced by the
Company continue to fall into the following categories:
· Structure of the Company and gearing
· Repayment of ZDP Shares
· Dividend levels
· Currency risk
· Liquidity risk
· Market price risk
· Discount volatility
· Operational risk
· Accounting, legal and regulatory risk
· Political intervention
· Industry regulation
· Geopolitical risk
· Climate risk
Information on each of these, save for Repayment of ZDP Shares, is given in
the Strategic Report in the Annual Report for the year ended 31 December 2023.
Attention is further drawn to the new 2025 ZDP Shares' liability falling due
on 28 November 2025, the repayment of which stands in preference to the
entitlements of Ordinary Shares. A fall in value of the Company's portfolio
around that time could have a material adverse effect on the value of the
Ordinary Shares. In addition, at the Company's AGM in 2025 there will be a
continuation vote in accordance with the Company's Articles of Association.
RELATED PARTY TRANSACTIONS
The Directors are recognised as a related party under the Listing Rules and
during the six months to 30 June 2024 fees paid to Directors of the Company
totalled £41,388 (six months ended 30 June 2023: £39,860 and year to 31
December 2023: £79,888).
GOING CONCERN
The Directors believe that having considered the Company's investment
objectives (shown on page 1), the continuation vote at the AGM in 2025, risk
management policies and procedures, nature of portfolio and income and expense
projections, the Company has adequate resources, an appropriate financial
structure and suitable management arrangements in place to continue in
operational existence for a period of at least 12 months from the date these
financial statements were approved. For these reasons, they consider that the
use of the going concern basis is appropriate. The risks that the Directors
considered most likely to adversely affect the Company's available resources
over this period were a significant fall in the valuation or a reduction in
the liquidity of the Company's investment portfolio.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Year Report, in
accordance with applicable law and regulations. The Directors confirm that, to
the best of their knowledge:
· The condensed set of Financial Statements within the Half Year Report has been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and applicable law; and
· The Interim Management Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FCA's Disclosure and Transparency Rules.
For and on behalf of the Board.
Gillian Nott OBE
Chair
1 August 2024
DIRECTORS AND ADVISERS
Directors
Gillian Nott OBE - Chair
Melville Trimble - Chair of the Audit Committee
Victoria Muir - Chair of the Remuneration Committee
Alternative Investment Fund Manager ("AIFM")
Premier Portfolio Managers Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the
Financial Conduct Authority ("FCA")
Investment Manager
Premier Fund Managers Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the Financial Conduct Authority
Secretary and Registered Office
Link Company Matters Limited
Central Square
29 Wellington Street
Leeds LS1 4DU
Registrar
Link Group
Central Square
29 Wellington Street
Leeds LS1 4DL
Telephone: 0371 664 0300*
Overseas: +44 (0) 371 664 0300*
E-mail: shareholderenquiries@linkgroup.co.uk
www.signalshares.com
Depositary
Northern Trust Investor Services Limited
50 Bank Street
Canary Wharf
London E14 5NT
Authorised by the Prudential Regulation Authority ("PRA") and regulated by the
FCA and PRA
Custodian
The Northern Trust Company
50 Bank Street
Canary Wharf
London E14 5NT
Tax Advisor
(Tax services are delegated by
Premier Portfolio Managers Limited)
Northern Trust Global Services SE
50 Bank Street
Canary Wharf
London E14 5NT
Auditor
Haysmacintyre LLP
10 Queen Street Place
London EC4R 1AG
Stockbroker
Cavendish Capital Markets Limited
One Bartholomew Close
London EC1A 7BL
Telephone: 0207 220 0500
ORDINARY SHARES
SEDOL: 3353790GB
LSE: PMGR
Zero Dividend Preference Shares
SEDOL: BNG43G3GB
LSE: PMGZ
GLOBAL INTERMEDIARY IDENTIFICATION NUMBER
GIIN: W6S9MG.00000.LE.826
*Calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable
international rate. The Registrar is open between 09:00 - 17:30 Monday to
Friday excluding public holidays in England and Wales.
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