REG - SDCL Efficiency Inc. - Update and Disposal

SDCL Efficiency Income TrustAnnouncement

Thu 07:01

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RNS Number : 2308T  SDCL Efficiency Income Trust PLC   31 July 2025

31 July 2025

SDCL Efficiency Income Trust plc ("SEIT" or the "Company")

Update and Disposal

Following the publication of SEIT's 2025 Annual Results and Accounts on 23
June, both the Investment Manager and independently the Chair (on behalf of
the Board) have met with a number of SEIT's shareholders to present the
results and discuss possible strategic options for the Company.

Feedback emphasised the importance of continued portfolio performance and
sufficient cash generation to cover the dividend whilst there was also a
consensus around the importance of achieving successful asset disposals with
benefits of this including a reduction in debt levels, and the opportunity for
returning cash to shareholders in due course.

Accordingly, the Investment Manager has successfully negotiated the sale of
its convertible loan in ON Energy to the issuer for $7.6 million,
representing an 18.75% premium to the current holding value of $6.4 million
and a money on invested capital ("MOIC") including actual cash receipts to
date of 1.63x.

The sale delivers a cash realisation and removes exposure to a business
where its geographic focus has shifted away from SEIT's target markets. The
proceeds from the sale will be used to reduce SEIT's drawings on its revolving
credit facility.

Tony Roper, Chair of SEIT, commented:

"The Board remains focussed on finding solutions to narrow the discount the
Company's shares trade at with disposals being key to simplifying the
portfolio and reducing debt levels.  The Board is taking a more active role
in supporting the disposal processes the Investment Manager is working on and
will continue to explore all strategic options to achieve these important
objectives."

Jonathan Maxwell, CEO of SDCL, commented:

"The disposal reflects SEIT's continued focus on crystallising value for
shareholders, managing portfolio construction, and maintaining financial
flexibility in a challenging M&A market. Our investment in ON Energy has
generated attractive returns for SEIT. It is timely to exit as ON Energy moves
on to the next stage of its growth and we are pleased to secure an exit at a
significant premium as we continue to work hard to create further liquidity
and value."

 

For Further Information

 Sustainable Development Capital LLP  T: +44 (0) 20 3874 1460

 Jonathan Maxwell

 Eugene Kinghorn

 Ben Griffiths

 Tamsin Jordan

 Jefferies International Limited      T: +44 (0) 20 7029 8000

 Tom Yeadon

 Gaudi Le Roux

 Cardew Group                         T: +44 (0) 20 7930 0777

 Ed Orlebar                           E: SEIT@cardewgroup.com

 Henry Crane                          M: +44 (0) 7738 724 630

                                      E: henry.crane@cardewgroup.com

 Liam Kline                           M: +44 (0) 7827 130 429

                                      E: liam.kline@cardewgroup.com

 

About SEIT

SDCL Efficiency Income Trust plc is a constituent of the FTSE 250 index. It
was the first UK listed company of its kind to invest exclusively in the
energy efficiency sector. Its projects are primarily located in North America,
the UK and Europe and include, inter alia, a portfolio of cogeneration assets
in Spain, a portfolio of commercial and industrial solar and storage projects
in the United States, a regulated gas distribution network in Sweden, a
portfolio of on-site energy recycling, cogeneration and process efficiency
projects, servicing the largest steel blast furnace in the United States and
a district energy system providing essential and efficient utility services on
one of the largest business parks in the United States.

The Company aims to deliver shareholders value through its investment in a
diversified portfolio of energy efficiency projects which are driven by the
opportunity to deliver lower cost, cleaner and more reliable energy solutions
to end users of energy.

The Company is targeting an attractive total return for shareholders with a
stable dividend income, capital preservation and the opportunity for capital
growth. The Company is targeting a dividend of 6.36p per share in respect of
the financial year to 31 March 2026. SEIT's last published NAV was 90.6p per
share as at 31 March 2025.

Past performance cannot be relied on as a guide to future performance.

Further information can be found on the Company's website at www.seitplc.com
(http://www.seitplc.com/) .

Investment Manager

SEIT's investment manager is Sustainable Development Capital LLP ("SDCL"), an
investment firm established in 2007, with a proven track record of investment
in energy efficiency and decentralised generation projects in the UK,
Continental Europe, North America and Asia.

SDCL is headquartered in London and also operates worldwide from offices in
New York, Dublin Hong Kong and Singapore. SDCL is authorised and regulated in
the UK by the Financial Conduct Authority.

Further information can be found on at www.sdclgroup.com
(http://www.sdclgroup.com/) .

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