TIDMBSIF
RNS Number : 2162R
Bluefield Solar Income Fund Limited
28 February 2023
28 February 2023
Bluefield Solar Income Fund Limited
('Bluefield Solar' or the 'Company')
Interim Report and Unaudited Condensed Interim Financial
Statements
for the six months ended 31 December 2022
Bluefield Solar (LON:BSIF), the London listed income fund
focused on acquiring and managing renewable energy and storage
assets predominately in the UK, is pleased to announce its Interim
Report for the six months ended 31 December 2022.
The Interim Report has been submitted to the National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Highlights
As at 31 December 2022/ 30 June 2022
Net Asset Value (NAV) Dividend Target per Share
GBP870.7m GBP858.4m FY23 8.40pps 8.12pps
NAV per share
142.40p 140.39p
Six month period to 31 December 2022 / 31 December 2021
Underlying Earnings(1) Total Shareholder Return(2)
(pre amortisation of debt) 6.98% 5.68%
GBP51.4m GBP21.4m
Total return to Shareholders
Underlying Earnings per share(1) since IPO
(pre amortisation of debt) 101.59% 81.69%
8.41p 4.31p
Total Return(3)
4.38% 9.61%
Underlying Earnings per share
available for distribution(1)
(post amortisation of debt)
6.26p 2.57p
Environmental, Social and Governance (ESG)
Forecast annual CO2e savings of over 163,000 tonnes (2022: 120,000
tonnes)
Approximately 292,000 homes powered with renewable energy (2022: 215,000)
4
Over GBP200,000 to be paid to community benefit schemes (2022: GBP154,000)
5
Construction and Development Pipeline
-- 49 MW under construction
-- 466 MW approved 1.38 GW
-- 216 MW in planning (956 MW Solar, 424 MW
battery)
-- 649 MW potential capacity
1. Underlying earnings is an alternative performance measure
employed by the Company to provide insight to the Shareholders by
linking the underlying financial performance of the operational
projects to the dividends declared and paid by the Company. Further
detail is provided below.
2. Total Shareholder Return is based on share price movement and
dividends paid in the period . It is defined in the Alternative
Performance Measure appendix.
3. Total Return is based on the NAV movement and dividends paid
in the period . It is defined in the Alternative Performance
Measure appendix.
4. For a year, based on forecasted annual generation.
5. During the 2022/23 financial year.
Results Summary:
Six months ended Six months ended 31 December 2021
31 December 2022
------------------------------------------------------- ------------------------- ----------------------------------
Total operating income GBP38,845,159 GBP54,510,638
Total comprehensive income before tax GBP37,642,084 GBP53,699,532
Total underlying earnings(1) GBP51,438,238 GBP21,389,077
Earnings per share (per below) 6.16p 11.05p
Underlying EPS available for
distribution(2) 6.26p 2.57p
Underlying EPS brought forward(3) 3.39p 2.67p
Total underlying EPS available for
distribution 9.65p 5.24p
1(st) interim dividend for the year ending
30 June 2023 2.10p 2.03p
NAV per share 142.40p 122.96p
Share Price as at 31 December 136.0p 124.3p
Total Return(4) 4.38% 9.61%
Total Shareholder Return(5) 6.98% 5.68%
Total Shareholder Return since inception(6) 101.59% 81.69%
Dividends per share paid since inception 65.59p 57.39p
------------------------------------------------------- ------------------------- ----------------------------------
1 . Underlying earnings is an alternative performance measure
employed by the Company to provide insight to the Shareholders by
linking the underlying financial performance of the operational
projects to the dividends declared and paid by the Company. Further
detail is provided below.
2. Underlying EPS is calculated using underlying earnings
available for distribution divided by the weighted average number
of shares in issue through the period.
3. Underlying EPS brought forward is calculated using the number
of shares in issue.
4. Total Return is based on NAV per share movement and dividends
paid in the period.
5. Total Shareholder Return is based on share price movement and
dividends paid in the period .
6. Total Shareholder Return since inception is based on share
price movement and dividends paid since the IPO.
John Scott, Chair of Bluefield Solar, said:
"It is very pleasing to report on another successful period for
Bluefield Solar, with further growth of our asset base and delivery
of excellent returns for shareholders. With continued progress in
its proprietary development pipeline, along with construction
underway on Yelvertoft, the Company is entering an exciting period,
delivering on each of the three tenets of its development strategy:
invest, construct and the selective recycling of capital.
Bluefield Solar looks to the year ahead with great confidence
and relishes the opportunity to play an increasing role in the UK's
transition to renewable and sustainable methods of electricity
generation"
Analyst presentation
A remote call for analysts will be hosted by James Armstrong and
Neil Wood of Bluefield Partners LLP at 09:30am today, 28 February
2023. For details, please contact Buchanan on
BSIF@buchanan.uk.com.
A copy of the presentation is available via the Company's
website and an audio webcast of the presentation will also be made
available after 12pm today.
https://bluefieldsif.com/
For further information:
Bluefield Partners LLP (Company Investment Tel: +44 (0) 20 7078 0020
Adviser) www.bluefieldllp.com
James Armstrong / Neil Wood / Giovanni
Terranova
Numis Securities Limited (Company Broker) Tel: +44 (0) 20 7260 1000
Tod Davis / David Benda www.numis.com
Ocorian Administration (Guernsey) Limited Tel: +44 (0) 1481 742 742
(Company Secretary & Administrator) www.ocorian.com
Patrick Ogier
Media enquiries: Tel: +44 (0) 20 7466 5000
Buchanan (PR Adviser) www.buchanan.uk.com
Henry Harrison-Topham / Henry Wilson BSIF@buchanan.uk.com
Notes to Editors
About Bluefield Solar
Bluefield Solar is a London listed income fund focused on
acquiring and managing renewable energy and storage projects
predominantly in the UK, to provide stable, long term dividends for
its shareholders whilst furthering the decarbonisation of the
energy system. Not less than 75% of the Company's gross assets will
be invested into UK solar assets. The Company can also invest up to
25% of its gross assets into wind, hydro and storage technologies.
The majority of the Company's revenue streams are regulated and
non-correlated to short term UK energy market fluctuations.
Bluefield Solar owns and operates one of the UK's largest,
diversified portfolios of solar assets with a combined installed
power capacity in excess of 812 MWp.
Bluefield Solar is listed on the Main Market of the London Stock
Exchange and is a member of the FTSE 250, classified within the
Closed End Investments subsector.
Further information can be viewed at www.bluefieldsif.com
About Bluefield Partners
Bluefield Partners LLP was established in 2009 and is an
investment adviser to companies and funds investing in renewable
energy infrastructure. It has a proven record in the selection,
acquisition and supervision of large-scale energy assets in the UK
and Europe. The team has been involved in over GBP6 billion
renewable funds and/or transactions in both the UK and Europe,
including over GBP1 billion in the UK since December 2011.
Bluefield Partners LLP has led the acquisitions of, and
currently advises on, over 100 UK based solar PV assets that are
agriculturally, commercially or industrially situated. Based in its
London office, it is supported by a dedicated and experienced team
of investment, legal and portfolio executives. Bluefield Partners
LLP was appointed Investment Adviser to Bluefield Solar in June
2013.
Corporate Summary
Investment objective
The investment objective of the Company is to provide
Shareholders with an attractive return, principally in the form of
quarterly income distributions, by being invested primarily in
solar energy assets located in the UK. The Company also has the
ability to invest a minority of its share capital into wind, hydro
and energy storage assets.
The Board seeks to adopt a progressive dividend strategy,
although the ability to maintain or grow dividends is dependent
upon a number of factors, including future power prices in the
UK.
Structure
The Company is a non-cellular company limited by shares
incorporated in Guernsey under the Law on 29 May 2013. The
Company's registration number is 56708, and it is regulated by the
GFSC as a registered closed-ended collective investment scheme and
it is accredited as a Green Fund after successful application to
the GFSC under the Guernsey Green Fund Rules on 16 April 2019 . The
Company's Ordinary Shares were admitted to the Premium Segment of
the Official List and to trading on the Main Market of the LSE
following its IPO on 12 July 2013. The issued capital during the
year comprises the Company's Ordinary Shares denominated in
Sterling.
The Company has the ability to use long term and short term debt
at the holding company level as well as having long term,
non-recourse debt at the SPV level.
Investment Adviser
The Investment Adviser to the Company during the period was
Bluefield Partners LLP which is authorised and regulated by the UK
FCA under the number 507508. In May 2015 Bluefield Services Limited
(BSL), a company with the same ownership as the Investment Adviser,
commenced providing asset management services to the investment
SPVs held by the UK limited company parent, which changed from
Bluefield SIF Investments Limited (BSIFIL) to Bluefield Renewables
1 Limited (BR1) in May 2022 to facilitate arrangement of the new
RCF. In August 2017 Bluefield Operations Limited (BOL), a company
with the same ownership as the Investment Adviser, commenced
providing operation and maintenance services to the Company and
provides services to 70 sites (585MW) of the investment portfolio
held by BR1 as at period end.
In December 2020 Bluefield Renewables Devlopment Limited (BRD),
a company with the same ownership as the Investment Adviser,
commenced providing BSIF with new build development opportunities
in addition to arrangements in place with the Company's other
development partners.
Please refer below for the details of Company's corporate
structure.
Chair's Statement
Introduction
Following a successful financial year to 30 June 2022, which saw
the Company's generating capacity grow by 25%, during the six
months to 31 December 2022 ("H1 22/23", or the "Period") we have
continued to deliver excellent results, notwithstanding various
external challenges. Power prices reached record highs during H1
22/23 and the Company's ability to maximise the value of energy
sales through its policy of typically fixing prices 18 months ahead
means the Company's near- term earnings projections are very
strong.
Allied to this is the excellent progress seen with the Company's
development programme, with 865MW under active development and
446MW in pre-construction, providing a platform for significant
growth in our business.
The main features of the Period are:
-- The Company completed the purchase of an operating 47MWp
subsidised solar portfolio with an enterprise value of
approximately GBP56m.
-- The Company committed GBP34m of funding as it commenced
construction of Yelvertoft, a CfD-backed 49MW solar plant.
-- Obtaining consent on 215MW of solar developments within the
Company's proprietary pipeline, adding c.2pps to the December 2022
NAV.
-- Progressing the pipeline of solar and storage currently under
development by the Company, which stands at 1.38 GW (956 MW solar
and 424 MW battery storage).
-- The NAV per share rose to 142.40pps as at 31 December 2022
(30 June 2022: 140.39pps), reflecting principally the positive
effect of higher electricity prices, offset by the cost of the
Electricity Generator Levy (the "Levy").
-- The dividend target for FY 22/23 has been set at not less
than 8.40pps, up from the 8.20pps dividends paid in respect of FY
21/22, which itself had an initial target of 8.12pps.
-- A first interim dividend for the current FY of 2.10pps was declared on 23 January 2023.
-- Effective application of the Company's power fixing strategy
provides strong earnings over the next 24 months, with expectation
of achieving over 2x dividend cover for the full year.
-- The Company was promoted to the FTSE 250 index.
At the time of writing, the Group's total outstanding debt has
increased to GBP531.1 million and its leverage level stands at
c.38% of GAV, at the lower end of our preferred range of
35%-45%.
Acquisitions
During the Period, the Company completed the acquisition of a
1.4 ROC 46.4MWp solar portfolio located in Lincolnshire (39.3MWp)
and Cumbria (7.1MWp). This purchase grows the Company's generating
portfolio to 812.6MWp (June 2022: 766.2MWp), and increases the
proportion of solar (85%) to onshore wind (15%). The Company's
mandate allows for diversification of up to 25% of its GAV into non
solar renewables.
The Company has seen continued success with its proprietary
development pipeline; consents were achieved on 215MW of solar
assets, contributing an uplift over costs of c.GBP15m (c.2pps) and
a small element of capital recycling was achieved through the
disposal of an existing development for c.GBP1.8m.
With construction underway on Yelvertoft, itself a product of
the Company's proprietary development programme, and the growth of
the wider pipeline to 1.38 GW, the Company is delivering on each of
the three tenets of its development strategy; invest, construct,
selectively recycle capital.
Underlying Earnings and Dividend Income
The Underlying Earnings for the Period, before amortisation of
long-term finance, were GBP51.4m, or 8.41pps, and underlying
earnings for distribution, post debt repayments of GBP13.2m
(2.15pps), were GBP38.2m (December 2021: GBP12.8m). Including
carried forward earnings from June 2022 of 3.39pps, the total funds
available for distribution as at 31 December 2022 were 9.65pps
(December 2021: 5.24pps).
The Company's portfolio has once again performed well, with
solar generation 6.17% above budget, the material factor behind the
strong financial performance having been the significant increase
in UK wholesale power prices, driven up by the price of natural
gas. As a result, the Company has been able to secure significantly
higher power price fixes during the Period across 140MWp at an
average price of 262.84/MWh. The higher prices on these contracts
have been locked in typically for 18 months and in some cases for
over 24 months.
Valuation and Discount Rate
The Company faced a number of political challenges during the
Period, with Britain seeing three Prime Ministers and four
Chancellors in 15 weeks. Unsurprisingly, this fostered a period of
considerable confusion over energy policy, including whether and
how Government might impose extra taxes on some or all electricity
generators. The financial turmoil arising from the short-lived
Truss administration rattled the capital markets, but demand for
renewable projects, at all stages of their lifecycle, has remained
strong. We have benefitted from higher power prices and to an
extent from rising inflation, but these effects have been partially
offset by the impact of the Levy and by the increased cost of
debt.
The Investment Adviser continues to see pricing for secondary
market solar portfolios within the range of GBP1.25m to
GBP1.45m/MWp. Higher interest rates and the inclusion of onshore
wind within BSIF's portfolio have caused the Board to increase to
7.25% the portfolio discount rate for the 31 December 2022
Directors' Valuation (30 June 2022: 6.75%). T
he resultant enterprise value of the Company's operational
portfolio is GBP1,222m (c.GBP1.38m/MW for the solar assets vs.
GBP1.39m/MW in June 2022). The Directors' Valuation as at 31
December 2022 is in line with recent market transactions and
consistent with the Company's valuation methodology of 'willing
buyer/willing seller'.
Inflation
During 2022, inflation reached levels not seen since the 1980s,
as higher commodity and energy prices pushed RPI to 13.4% and CPI
to 10.5% in December 2022.
Since the turn of the year there have been encouraging signs
that inflation has peaked, but expectations remain that inflation
will remain well above the Bank of England's 2% target for the
foreseeable future. Since our income grows with inflation,
resulting from the indexation provisions in our regulated revenues,
increases in RPI have the effect of boosting both our earnings and
the valuation of our assets.
Reflecting the latest economic forecasts, as well as the
transition from RPI to CPIH post 2030, inflation assumptions
supporting the valuation are 10.9% in 2022, 5.5% in 2023 (June
2022: 3.4%) and thereafter 3.0% until 2029, before dropping to
2.25%.
Power Prices
Russia's war in Ukraine has had a profound effect on energy
markets worldwide. Severe supply disruptions continue to affect
Europe and, with the UK still heavily dependent on imported methane
for the generation of electricity (over 40% in 2022), record gas
prices drove electricity prices to new highs towards the end of the
summer. In recent months UK wholesale electricity prices have eased
considerably, as natural gas prices have fallen sharply from the
highs touched in August 2022 of over GBP500/MWh, dropping to below
GBP118/MWh in February 2023.
Due to the Company's PPA sales strategy of fixing power for
between one and three years ahead, it enters 2023 with more than
80% of its merchant revenue hedged to March 2024, so has limited
revenue exposure to the recent declines in the electricity market.
Thanks to some well-timed sales contracts agreed during the Period,
the Board has a high degree of confidence in achieving dividend
cover in excess of 2.0x (including carried forward earnings and
post debt amortisation) in the financial years ending June 2023,
June 2024 and June 2025.
The Electricity Generator Levy
In November 2022, in response to demands for "windfall tax", the
UK government announced the introduction of a temporary 45% tax -
the "Levy" - on the extraordinary profits made by electricity
generators late last year while European energy prices soared in
the wake of Russia's invasion of Ukraine. The Levy will be in place
from 1 January 2023 until 31 March 2028, with the benchmark price
of GBP75 per MWh linked to UK Consumer Price Inflation.
Revenues earned from assets under Feed in Tariffs, Renewable
Obligation Certificates, or Contracts for Differences with the Low
Carbon Contracts Company are exempt. Given that around 53% of
BSIF's revenues out to the mid-2030s are derived from such subsidy
schemes, the Company is reasonably well positioned to absorb the
Levy and is pleased to be part of the solution to the energy
crisis, an issue that is affecting every section of the economy and
is in danger of causing real hardship to the most vulnerable
households in the country.
The Board and its Committees
We continue the process of refreshing the BSIF Board. After nine
highly successful years as Chair, John Rennocks decided that it was
time for him to relinquish that position and stepped down at the
November 2022 AGM, retiring from the Board in February 2023. John
had been in the Chair since the formation of the Company in 2013
and was instrumental in its formation and flotation. I know my
colleagues join me in recognising the immense contribution which
John has made to BSIF's evolution from that of a fledgling
participant in an untested area, to that of a major constituent of
what has now become the GBP16 billion renewable power sector. John
has led the Company with vision and great distinction; the Board
looks forward to extending his legacy.
I am delighted to welcome Michael Gibbons as our new Senior
Independent Director. Michael has a wealth of energy markets
experience from his time at ICI and then PowerGen and has spent
almost nine years chairing the British Government's independent
Regulatory Policy Committee. Michael brings to BSIF a considerable
body of knowledge in supporting the Company's further growth in the
face of a rapidly evolving regulatory landscape.
During the Period, three new committees were established by the
Board: a Nomination Committee, a Management Engagement and Service
Providers Committee and an Environmental, Social and Governance
Committee. Meanwhile Paul Le Page, who has chaired the Audit and
Risk Committee since the foundation of the Company, intends to
retire from that role with effect from the 2023 AGM, whereupon that
role will be assumed by Elizabeth Burne. A key task for the Audit
and Risk Committee during the current year is to conduct an audit
tender; KPMG has been our auditor from inception and, in line with
best practice, after ten years it is time to assess our options in
this area.
Environmental, Social and Governance ("ESG")
The Company continues to make great progress with the
implementation of its ESG strategy and has recently satisfied its
Level 2 reporting requirements under the Sustainable Finance
Disclosure Regulation (SFDR). As part of this, a recent assessment
determined that the Company's current portfolio is 100% aligned
with the EU Taxonomy, an achievement of which the Board is very
proud and one which reflects well on our Investment Adviser,
Bluefield Partners.
Conclusion
Despite a very choppy political backdrop, the second half of
2022 saw further progress by your Company, which continued to
deliver excellent returns for its shareholders, while at the same
time growing its asset base. Dividends increased and your Board is
confident of delivering an earnings stream which will continue to
grow in the coming years. The Board also has great confidence in
its Investment Adviser, Bluefield Partners, who have steered us
with skill since our foundation nearly a decade ago.
One of the many lessons which we derive from the continuing and
tragic war in Ukraine is the need for greater energy security.
Domestically generated solar electricity has an enormous role to
play in achieving the shift away from imported hydrocarbons, while
simultaneously decarbonising the economy. Although the achievements
of the renewable energy sector are remarkable, for example in
providing (by some measures) over 40% of the UK's domestically
generated electricity in the period January-September 2022, there
remains a considerable amount still to do if we are to wean
ourselves off our thirst for fossil fuels and play our part in the
global efforts to reach net zero.
Your Company is well placed to participate in the enormous
programme of investment that is required in the coming years if we
are to meet the ambitious goals set by the UK government and the
United Nations. As we approach our tenth anniversary, BSIF has
shown what can be achieved through a steady programme of investment
and astute management of its assets. Your Board looks to the years
ahead with great confidence.
John Scott
Chair
27 February 2023
The Company's Investment Portfolio
[chart]
Analysis of the Company's Investment Portfolio
[chart]
Report of the Investment Adviser
1. About Bluefield Partners LLP
Bluefield was established in 2009 and is an investment adviser
to companies and funds investing in renewable energy
infrastructure. Our team has a proven record in the selection,
acquisition and supervision of large scale energy and
infrastructure assets in the UK and Europe. The Bluefield team has
been involved in over GBP6.5 billion of renewable funds and/or
transactions in both the UK and Europe, including over GBP1 billion
for BSIF in the UK since December 2011.
Bluefield was appointed Investment Adviser to the Company in
June 2013. Based in its London office, Bluefield's partners are
supported by a dedicated and highly experienced team of investment,
legal and portfolio executives. As Investment Adviser, Bluefield is
responsible for the origination and selection of investment
opportunities, which are then proposed to the Board of BSIF.
Bluefield has executed over 200 individual SPV acquisitions on
behalf of BSIF and other European vehicles through geographically
dedicated teams.
2. Structure
The Company's corporate structure is summarised below:
[chart]
3. Portfolio: Acquisitions, Performance and Value
Enhancement
Portfolio Overview
As at 31 December 2022, the Company held an operational solar
portfolio of 129 PV plants (consisting of 87 large scale sites, 39
micro sites and 3 roof top sites), 6 wind farms and 109 small scale
UK onshore wind turbines with a total capacity of 812.6MWp.
During the period to 31 December 2022, the combined solar and
wind portfolio generated an aggregated total of 391.8GWh,
representing a Generation Yield of 511.4MWh/MW.
Acquisitions in the Period
In December 2022 the Company completed the acquisition of a
46.4MWp operational solar portfolio from Fengate Asset Management.
The enterprise value of the portfolio is GBP56.0 million, including
the economic benefit of all cashflows from May 2022. The portfolio
contains GBP27.3 million of long-term amortising debt provided by
Macquarie Bank Limited.
The portfolio consists of two ground mounted solar photovoltaic
('PV') plants, a 39.3MWp plant (Raventhorpe) located in Scunthorpe,
Lincolnshire and a 7.1MWp facility (Roanhead) located in
Barrow-in-Furness, Cumbria.
Both solar sites are accredited under the Renewable Obligation
Certificate ('ROC') regime with a tariff of 1.4 ROCs.
Portfolio Performance and Optimisation
Solar PV Performance
In the 6-month period to 31 December 2022, irradiation levels
were 9.7% higher than the Company's forecast and 13.3% higher than
the same period in FY 2021/22.
During the reporting period, the solar portfolio achieved a Net
PR of 76.96% (FY 2021/22: 79.5%) against a forecast of 79.5% and
generated 327.4GWh of power, 6.2% above expectations. Higher than
expected irradiation was the principal driver behind the generation
exceeding expectations, however above forecasted irradiation lowers
PR due to the increased effects of inter row shading losses and
higher component temperatures.
Notwithstanding the lower PR, total generation increased by
26.6% when compared to the six months to 31 December 2021 due to
the combined impact of the solar portfolio capacity increasing by
10.1% and the irradiation during the period having been 13.3%
higher As a result of these factors, the generation yield
(generation per MW of installed capacity) increased by 9.6% to
462.55MWh/MWp when compared to the same period in the 2021/22
reporting year.
Table 1. Summary of Solar Fleet Performance for H1 2022/23:
Delta Delta 22/23
H1 H1 to H1 to
Forecast 21/22 Actual
2022/23 2022/23 (% 2021/22 (%
Actual Forecast change) Actual6 change)
========== ========== ========= ============= =============
Solar Portfolio
Total Installed 707.76 707.76 - 613.00 15.46%
Capacity (MWp)(1)
========================
Weighted Average 601.03 548.03 9.67% 530.40 13.32%
Irradiation (Hrs)(2,3)
========================
Total Generation
(MWh) 327,377 308,363 6.17% 258,646 26.57%
======================== ========== ========== ========= ============= =============
Generation Yield 462.55 435.69 3.80% 421.9 9.64%
(MWh/MWp)
========================
Average Revenue GBP180.96 GBP171.80 5.33% GBP135.40(5) 33.65%
(GBP/MWh)(4)
========================
Notes to Table 1.
1. Excludes 2 solar plants acquired in late December 2022 (46.4 MWp )
2. Periods of irradiation where irradiance exceeds the minimum
level required for generation to occur (50W/m(2) )
3. Excluding grid outages and significant periods of constraint
or curtailment that were outside the Company's control (for
example, DNO-led outages and curtailments)
4. Average Revenue includes all income associated with the sale
of power, all subsidy payments, liquidated damages and insurance
claims amounts. ROC recycle revenue is included assuming a 10%
recycle rate for both Actual and Forecast Revenue
5. H1 2021/22 Average Revenue includes ROC recycle amounts
received. These amounts were not received by 31 Dec 21, therefore
not included in the published 2021/22 interim results
6. Includes 30.1 MWp of solar assets acquired in January 2022,
not included in the published 2021/22 interim results (performance
data now available to 1 July 2022)
Total Revenue for the period was GBP59.24m, 16.39% higher than
forecasts and 69.16% higher than the previous FY. Favourable fixed
PPA agreements which commenced during the period were the principal
reason for increased revenue, as the average power price rose from
GBP135.40/MWh in the previous FY to GBP180.96/MWh, representing a
33.65% increase.
Operational costs for the period (incorporating all fixed,
contracted costs such a lease payments, O&M fees etc.) totalled
c.GBP15.18m, including expenditure associated with the optimisation
& enhancement projects (see below).
Solar PV Optimisation & Enhancement Activity
A core focus of the Investment Adviser's activities is
protecting, optimising, and enhancing the value of the Company's
operational portfolio.
Principally this is done through in-depth performance monitoring
and carefully tailored preventative maintenance programmes,
ensuring that capital spend across the Company's portfolio
(expected to be GBP4-5m annually over the next decade) is completed
during periods of low irradiation (being October to February).
A rolling capital works programme is essential for optimising
the long-term operational performance of the portfolio.
As at 31 December 2022, 494.6 MWp (30 June 2022: 401 MWp) of the
PV portfolio have leases that allow for terms beyond 30 years
(being 60.87% of the solar PV portfolio), with 338.2 MWp (100% of
applications successful) benefitting from planning terms in excess
of 30 years with the Investment Adviser continuing to pursue lease
extensions on the remaining assets in the portfolio.
Onshore Wind Performance
As at 31 December 2022, the Company held an operational onshore
wind portfolio of 135 installations , comprising 109 small scale
turbines (55-250kW) and 26 turbines (850kW-2.3MW), with an
aggregated capacity 58.36MW.
During the reporting period, the portfolio generated 64.42GWh,
-21.7% below forecasts. This was largely due to continued reduced
availability of 3 turbines at Delabole Wind Farm. As a result, the
Investment Adviser elected to replace the O&M provider in
December 2022; following this, all faulty turbines returned to
service within 4 weeks. Significant O&M LDs are expected to be
recovered for the underperformance.
Compared to the UK 2o-year mean, national average windspeeds
were down 10% during the first three months of the period (July -
September 2022), and down 6% during the whole six month reporting
period, further impacting generation. The average onsite windspeeds
were 6% higher than the previous year (FY 2021/22), a period of
historically low wind resource.
Table 2. Aggregated Wind Portfolio Performance, H1 2022/23
H1 H1 Delta to H1 Delta 22/23 to
2022/23 2022/23 Forecast (% 2021/22 21/22 Actual (%
Actual Forecast Change Actual2 change)
=============================== ========== ========== ============ ========== ================
Portfolio Total Installed 58.36 58.36 - 30.01 94.47%
Capacity (MW)
=========================== ========== ========== ============ ========== ================
Total Generation (MWh) 64,392 82,182 -21.65% 29,888 115.45%
============================== ========== ========== ============ ========== ================
Generation Yield 1,103.36 1,408.18 -21.65% 995.92 10.79%
(MWh/MW)
=========================== ========== ========== ============ ========== ================
Average Revenue (1) GBP203.59 GBP197.78 2.93% GBP199.84 1.87%
(GBP/MWh)
============================== ========== ========== ============ ========== ================
Notes to Table 2.
1. Average Revenue includes all income associated with the sale
of power, all subsidy payments, liquidated damages and insurance
claims amounts. ROC recycle revenue is included assuming a 10%
recycle rate for both Actual and Forecast Revenue
2. Includes 17.4MW of onshore wind assets acquired in January
2022, not included in the published 2021/22 interim results
(performance data now available to 1 July 2022)
The portfolio achieved a Generation Yield of 1,103.36 MWh per MW
of installed capacity, equivalent to a 10.8% increase to FY
2021/22, largely due to the improved wind resource.
Despite lower than forecast generation, the portfolio provided a
total revenue of GBP13.1m, with an average revenue per MWh of
GBP203.59, +2.9% above expected levels, due to significantly higher
wholesale power prices.
Onshore Wind Optimisation & Enhancement Activity
In Northern Ireland, 17 of the 29 small-scale turbines have been
identified for repowering with replacement EWT 250kW turbines.
These assets will be repowered to increase efficiency and output,
whilst maintaining their respective NIRO accreditation status.
As at 31 December 2022, 4 turbines have been repowered and
returned to operation, with a further 9 having received planning
approval for repowering, with a new 25-year term. By end-February
2023, an additional 2 turbines will be repowered with the EWT
model, and further 3 planned for repowering before 30 June 2023.
The remaining projects have planning applications submitted to the
relevant Local Planning Authority.
General Portfolio
OFGEM Audits
As part of the industry-wide audits of FiT and RO-accredited
generating assets, the Investment Adviser and Asset Manager have
been working closely with the regulator on those assets (randomly)
selected for audit. All of the Company's assets to have completed
OFGEM audits to date have been classified as 'satisfactory'.
Health & Safety Activities
The Investment Adviser continues to ensure H&S awareness,
policies, processes and procedures remain at the forefront of every
activity around the portfolio. H&S policies and logs are
reviewed at least annually. All main contractors (including asset
management and O&M providers) are audited annually by a
qualified third-party specialist consultant, with new retained
contractors (associated with operational projects acquired by BSIF,
for example) audited immediately following acquisition.
4. Power Purchase Agreements
The Company maintained its strategy of fixing power price
contracts for periods between 12 and 36 months, with most contracts
continuing to be struck for a minimum of 18 months. As at 31
December 2022, the average term of the fixed-price PPAs across the
portfolio is 28.4 months (FY 2021/22: 25.8 months).
Contract renewals are spread evenly throughout any 12-month
period, with competitive tender processes involving several
offtakers run for each PPA renewal in the 3 month period prior to
the commencement of a new fixing period. PPA counterparties are
selected on a competitive basis, but with a clear focus on
achieving value and diversification of counterparty risk.
The Investment Adviser continues to believe this is the best
strategy for shareholders, who are looking for stable revenues and
forecastable, sustainable dividends, and provides very high
visibility of revenues over the next few years, where other
strategies do not. This approach delivered almost a decade of
sector leading dividend cover (covered by in year earnings and post
debt amortisation).
As at 31 December 2022, the Company has a price confidence level
of 92% to June 2023 and c.90% to December 2023 over the pricing of
both power and subsidy revenue streams.
The ability of the Company to capture the wholesale power market
prices when they are at their highest is reflected in the BSIF
average seasonal weighted power price. The average seasonal
weighted power price for the 12 months ending 31 December 2022 has
increased by 70.75% from the year ended 31 December 2021, from
GBP50.30 per MWh to GBP85.80 per MWh. These values contain price
fixes made from up to two years prior.
The impact of power prices on NAV is set out in the valuations
section.
During the period, the wholesale market continued to offer
opportunities to fix contracts, up to 36 months in tenure, at
historically high prices. As shown below, those contracts fixed
during the reporting period (aggregated capacity: 140MWp) were at
prices significantly above the portfolio average.
Chart 1. PPA Fixed Power Prices (Average Vs Average for Fixes
completed during Reporting Period)
1 Jan 1 July 1 Jan 1 Jul
Price as at: 23 23 24 24
BSIF Portfolio Weighted Average
Contract Price (GBP/MWh) 189.14 169.72 183.51 167.39
------- ------- ------- -------
Weighted Average for Contract
Prices fixed during the reporting
period (GBP/MWh) 523.16 293.56 311.98 210.23
------- ------- ------- -------
The Investment Adviser notes that the majority of the gains from
these high PPA fixes will be offset by the impact of the
Electricity Generator Levy ("the Levy"), a temporary 45% tax on the
extraordinary returns made by electricity generators late last year
while European energy prices soared in the wake of Russia's
invasion of Ukraine. The Levy will be in place from 1 January 2023
until 31 March 2028, with the benchmark price linked to UK Consumer
Price Inflation.
6. Power Market Summary
Power markets reached record highs in August 2022, as Russia's
continuing war against Ukraine exacerbated concerns surrounding gas
supplies to Europe ahead of Winter 2023.
Chart 2. UK Natural Gas & Wholesale Power Prices (1 July
2020 - 31 December 2022)
[chart]
Source data: Bloomberg
As a result, power prices within the UK remained extremely
volatile throughout the period, predominantly following the same
patterns as the gas market, as shown in Chart 2, with day-ahead
baseload power prices reaching extreme highs on 25 August and 9
December, at GBP565/MWh and GBP654.65/MWh, respectively.
However, high gas prices during the 2022 summer attracted strong
LNG deliveries to Europe amid periods of reduced consumption which
allowed EU countries to enter the winter season with gas stocks at
89% of capacity, above the EU target for 1 November 2022. This in
turn eased concerns about shortages for winter, putting downward
pressure on both European gas prices.
Whilst season ahead pricing has fallen from the highs of H1
22/23, in the absence of hydrocarbons from Russia both gas and coal
markets remain tight, and expectations remain that energy prices
will be considerably higher than historic long term averages.
7. Construction Programme
As at the end of the Period, BSIF had 340 MW solar and 125 MW
battery storage assets that are fully consented and are in
pre-construction. The projects have connection dates between 2023
and 2028. In addition, the first development to enter the
construction phase is the Yelvertoft 49MW Solar PV project, which
signed a fixed price EPC contract with Bouygues in September 2022
and is targeting operation in Q4 2023.
As the EPC agreements require contractors to provide full
procurement activity and to supply all materials, the Investment
Adviser completes a full assessment of each contractor's
procurement and supply chain management processes to ensure
compliance with the Company's ESG policies and standards. For
further information relating to the Company's wider ESG activity,
please refer to the ESG section below.
Projects with CfDs
In July 2022, the Investment Adviser successfully secured CfDs
on 62.4MW of ready to build PV plants (Yelvertoft 49.9MW, Romsey
6.5MW and Oulton 6.0MW). By securing a CfD contract, the plants
will benefit from index linked revenues (to CPI) over a 15 year
duration at the AR4 solar PV strike price of GBP45.99/MWh (in 2012
equivalent prices), or GBP57.48/MWh in 2022. The contracts commence
from 31 March 2025, at which point the strike price referenced
above will include inflation from 2023 and 2024.
The Investment Adviser is monitoring the upcoming allocation
round (AR5).
8. Development Programme - Outline of developments and valuation approach
The Investment Adviser has been pursuing its development
strategy since 2019 to enable BSIF to continue to be a key player
in the UK renewable energy market. Since this time, a portfolio of
approximately 950 MW of solar and over 400 MW of batteries has been
built up across 28 projects. At any one time, outstanding
commitments to fund development projects are less than 1% of
GAV.
Currently, no value is attributed to projects without planning
consent. However, once developments receive planning consent, and
move from the development stage to pre-construction, the Investment
Adviser believes it is appropriate to reflect this change in the
Company valuation.
At this point in their lifecycle, the projects will have
received all the necessary planning consents, land rights and valid
grid connection offers and so have discernable value beyond the
direct costs of development.
The current pipeline status and valuation is summarised in the
graphic below.
Current pipeline status and valuation
[chart]
9. Analysis of underlying earnings
The total generation and revenue earned (including ROC recycle
estimate) in the 6 months to 31 December 2022 by the Company's
portfolio, split by subsidy regime, is outlined below.
Subsidy Regime Generation PPA Revenue Regulated
(MWh) (GBPm) Revenue (GBPm)
FiT 32,021 2.7 5.7
----------- ------------ ----------------
4.0 ROC 6,269 0.9 1.5
----------- ------------ ----------------
2.0 ROC 12,366 0.7 1.3
----------- ------------ ----------------
1.6 ROC 55,835 6.6 5.4
----------- ------------ ----------------
1.4 ROC 134,474 11.3 14.0
----------- ------------ ----------------
1.3 ROC 33,482 4.6 2.7
----------- ------------ ----------------
1.2 ROC 65,816 6.7 5.2
----------- ------------ ----------------
1.0 ROC 14,953 1.5 0.9
----------- ------------ ----------------
0.9 ROC 36,611 5.0 1.9
----------- ------------ ----------------
Total 391,827 40.0 38.6
----------- ------------ ----------------
The Company includes ROC Recycle assumptions within its long
term forecasts and applies a market based approach on recognition
within any current financial period, including prudent estimates
within its accounts where there is clear evidence that participants
are attaching value to ROC Recycle for the current accounting
period.
In October 2022, Ofgem announced the value for ROC Recycle for
the period April 2021 to March 2022 (CP20) was GBP7.04/ROC
(equivalent to 13.9% of CP20 ROC buyout prices). This was slightly
ahead of the 12.5% ROC Recycle estimate the Company had recognised
in its 30 June 2022 Financial Statements.
The key drivers behind the changes in Underlying Earnings
between H1 2021/22 and H1 2022/23 are the combined effects of the
acquisitions within the period and higher PPA pricing.
Underlying Portfolio Earnings
Half year Half year Full year Full year
period to period to to to
31 Dec 22 31 Dec 21 30 June 30 June
22 21
(GBPm) (GBPm) (GBPm) (GBPm)
Portfolio Revenue 78.6 40.0 111.4 73.1
----------- ----------- ---------- ----------
Liquidated damages
and Other Revenue* 0.8 0.3 1.6 2.0
----------- ----------- ---------- ----------
Net Earnings from Acquisitions
in the period 0.0 0.0 0.0 5.1
----------- ----------- ---------- ----------
Portfolio Income 79.4 40.3 113.0 80.2
----------- ----------- ---------- ----------
Portfolio Costs -16.1 -11.0 -27.8 -17.6
----------- ----------- ---------- ----------
Project Finance Interest
Costs -5.5 -1.0 -4.7 -1.8
----------- ----------- ---------- ----------
Total Portfolio Income
Earned 57.8 28.3 80.5 60.8
----------- ----------- ---------- ----------
Group Operating Costs(#)
** -4.6 -4.5 -8.3 -7.5
----------- ----------- ---------- ----------
Group Debt Costs -1.8 -2.4 -5.4 -4.7
----------- ----------- ---------- ----------
Underlying Earnings 51.4 21.4 66.8 48.6
----------- ----------- ---------- ----------
Group Debt Repayments -13.2 -8.6 -13.8 -9.3
----------- ----------- ---------- ----------
Underlying Earnings
available for distribution 38.2 12.8 53.0 39.3
----------- ----------- ---------- ----------
Half year Half year Full year Full year
to to to to
31 Dec 22 31 Dec 21 30 June 30 June
22 21
(GBPm) (GBPm) (GBPm) (GBPm)
Brought forward reserves 20.9 13.4 13.4 8.4
----------- ----------- ---------- ----------
Total funds available
for distribution -1 59.1 26.2 66.4 47.7
-------------------------- ----------- ----------- ---------- ----------
Target distribution*** N/A N/A 45.2 34.3
-------------------------- ----------- ----------- ---------- ----------
Actual Distribution
-2 12.8 10.1 45.5 34.3
----------- ----------- ---------- ----------
Underlying Earnings
carried forward
(1-2) N/A N/A 20.9 13.4
----------- ----------- ---------- ----------
*Other Revenue includes insurance proceeds, ROC Recycle late
payment and Mutualisation, O&M settlement agreements and
rebates received
#Includes the Company, BR1 and BSIFIL (the UK HoldCos) and any
tax charges within the UK HoldCos.
**Excludes one-off transaction costs and the release of up-front
fees related to the Company's debt facilities
***Target distribution is based on funds required for total
target dividend for each financial period.
The table below presents the underlying earnings on a per share
basis.
Half year Half year Full year Full year
period to period to to to
31 Dec 22 31 Dec 21 30 June 30 June
22 21
Target Distribution
- GBPm N/A N/A 45.2 34.3
------------ ------------ ------------ ------------
Total funds available
for distribution
(inc. reserves)
- GBPm 59.1 26.2 66.4 47.7
------------ ------------ ------------ ------------
Average number of
shares in the period* 611,452,217 496,067,602 554,042,715 429,266,617
------------ ------------ ------------ ------------
Target Dividend
(pps) N/A N/A 8.16 8.00
------------ ------------ ------------ ------------
Total funds available
for distribution
(pps) - 1 9.65 5.24 12.22 11.19
------------ ------------ ------------ ------------
Total Dividend Declared
for the period (pps)**
- 2 2.10 2.03 8.20 8.00
------------ ------------ ------------ ------------
Reserves carried
forward
(pps) *** - 1-2 N/A N/A 3.39 2.67
------------ ------------ ------------ ------------
*Average number of shares is calculated based on shares in issue
at the time each dividend was declared.
**Half year period to 31 Dec 2022 dividend of 2.10pps declared
23 Jan 2023, with a payment date on or around 3 March 2023.
***Reserves carried forward are based on the shares in issue at
the point of Annual Accounts publication (being c.611m shares for
30 June 2022 and c.496m shares for 30 June 2021).
10. NAV and Valuation of the Portfolio
The Investment Adviser is responsible for advising the Board in
determining the Directors' Valuation.
Formal valuations are carried out on a six-monthly basis at 31
December and 30 June each year, with the Company committed to
commissioning an independent review as and when the Board believes
it benefits Shareholders.
Following consultation with the Investment Adviser, the
Directors' Valuation adopted for the portfolio as at 31 December
2022 was GBP987.6m (30 June 2022, GBP939.9m).
The table below shows a breakdown of the Directors' valuations
over the last four reporting periods:
Valuation Component (GBPm) Dec 2022 June 2022 Dec 2021 June 2021
Enterprise Portfolio DCF value (EV) 1,222.2 1,180.6 861.2 770.1
--------- ---------- --------- ----------
Consented Solar and Battery Storage Development rights 30.4 13.8 7.3 1.8
--------- ---------- --------- ----------
Deduction of Project Co debt -410.1 -390.3 -119.3 -119.8
--------- ---------- --------- ----------
Project Net Current Assets 145.1 135.8 36.5 42.4
--------- ---------- --------- ----------
Directors' Valuation 987.6 939.9 785.7 694.5
--------- ---------- --------- ----------
Portfolio Size (MWp) 812.6 766.2 625.6 613.0
--------- ---------- --------- ----------
Discounting Methodology
Competition for operational assets remains high and so multiples
for subsidised solar assets have not materially changed from those
in June 2022 (being between c.GBP1.25m/MW and c.GBP1.45m/MW) for
comparable portfolios to the Company's.
The Directors' valuation is benchmarked against precedent market
transactions and compiled using Discounted Cash Flow methodology,
under IPEV Valuation guidelines and using a levered equity discount
rate based on the Company's capital structure.
Refer to Note 7 of the unaudited interim financial statements
for further details.
Key factors behind the Directors' Valuation
There have been a number of key factors that have been
considered in the Investment Adviser's recommendation to the
Directors' Valuation (and which are quantified in the NAV movement
chart below):
(i) The inclusion of the new Electricity Generator Levy ("the
Levy") on excess profits produced by electricity generators as
announced by the Chancellor of the Exchequer in the Autumn
Statement in November 2022;
(ii) The inflation forecast for 2023 was raised from 3.4% in
June 2022 to 5.5% in September 2022, reflecting expectations from
forecasters that declines from the highs of 2022 would be more
gradual than previously expected; and
(iii) The levered equity discount rate has been increased to
7.25% (6.75% in June 2022 and 6.00% December 2021) with the
discount rate for asset lives in excess of 30 years increasing to
8.75% (8.00% in June 2022 and 7.50% in December 2021). This is a
result of increases over the period in both the Bank of England
base rate (rising from 1.25% as at 30 June 2022 to 3.5% as at 31
December 2022) and 15 year debt yields (c.2.5% as at 30 June 2022
to c.4.0% as at 31 December 2022).
By reflecting the core factors above within the Directors'
Valuation for 31 December 2022, the EV of the portfolio is
GBP1,222.2m (June 2022: GBP1,180.6m) with the effective price for
the solar component holding steady at GBP1.38m/MW (June 2022:
GBP1.38m/MW).
These metrics sit within the pricing range of precedent market
transactions and the 'willing buyer-willing seller' methodology
upon which the Directors' Valuation is based.
Valuation Assumptions - Further detail
Debt
Refer to note 7 of the unaudited interim financial
statements.
Further details of the third-party debt can be found below in
the Financing section.
Power Price
The blended forecast of three leading consultants used within
the latest Directors' Valuation, as shown in the graph below, is
based on forecasts released in the quarter to December 2022. For
illustration purposes, the graph below also includes the blended
curve used in the Company's June 2022 Annual accounts.
The curves used in the 31 December 2022 Directors' Valuation
reflect the following key updates:
1. Short-term European fuel prices - gas and coal - rose since
June 2022 amid ongoing concerns about supply disruptions due to the
war in Ukraine with a similar trend reflected in the wholesale
power price curve;
2. Higher renewable generation capacity deployment levels in the
medium term (notably c.35GW offshore wind, c.22GW onshore wind and
c.22GW solar by 2030) as the UK strives to meet its net zero
targets and fully decarbonise its power system by 2035; and
3. Annual demand for power in Great Britain, driven principally
by electrification of heat and transport, is expected to rise from
310TWh in 2023 to 404TWh by 2035.
[chart]
[chart]
The main contributors to the increase in the Directors Valuation
from 30 June 2022 to 31 December 2022 were an increase in power
price forecast curves provided by the Company's three independent
advisers (18.1pps), a new acquisition (9.3pps), change in
development portfolio valuation (2.5pps) and updated near-term
inflation assumptions (0.8pps).
Directors' Valuation movement
(GBPmillion) As %
of valuation
----------------------------- -------------- ---- ----- ------------- --------------
30 June 2022 Valuation 939.9
----------------------------------- -------- ---- -------------------- --------------
New investments acquired 59.4
----------------------------------- -------- ---- -------------------- --------------
Rebased Valuation 999.3
----------------------------------- -------------- -------------------- --------------
Development uplift 17.9 1.8%
(2.6)
Cash receipts from portfolio (25.7) %
Date change, degradation, O&M (3.4)
updates (34.0) %
Power curve updates (incl. PPAs) 122.7 12.3 %
Inflation updates 4.1 0.4 %
Discount rate change (23.4) (2.3)%
Levy tax impact (87.2) (8.7)%
Balance of portfolio return 13.9 1.4%
31 December 2022 Valuation 987.6 (1.1)%
--------------------------------------------- ----------- ------------- --------------
There have been no material changes to assumptions regarding the
future performance or cost optimisation of the portfolio when
compared to the Directors' Valuation of 30 June 2022.
On the basis of these key assumptions, the Board believes there
remains further scope for NAV enhancement from the potential
extensions of asset life for further projects in the portfolio, as
well as cost optimisation on long term O&M fees.
The assumptions set out in this section remain subject to
continuous review by the Investment Adviser and the Board.
Reconciliation of Directors' Valuation to Balance sheet
Balance at Period End
Category 31 30 June 31 30 June
December 2022 December 2021
2022 (GBPm) 2021 (GBPm)
(GBPm) (GBPm)
--------------------- ---------------------- ---------------------- ----------------------
Directors'
Valuation 987.6 939.9 785.7 694.5
--------------------- ---------------------- ---------------------- ----------------------
Portfolio
Holding
Company
Working
Capital 2.9 (13.6) 37.8 26.4
--------------------- ---------------------- ---------------------- ----------------------
Portfolio
Holding
Company
Debt (121.0) (70.0) (214.7) (250.6)
--------------------- ---------------------- ---------------------- ----------------------
Financial
Assets at
Fair Value
per
Balance
sheet 869.5 856.3 608.8 470.3
--------------------- ---------------------- ---------------------- ----------------------
Gross Asset
Value 1,400.6 1,316.7 942.7 840.7
--------------------- ---------------------- ---------------------- ----------------------
Gearing (%
GAV*) 38% 35% 35% 44%
--------------------- ---------------------- ---------------------- ----------------------
* GAV is the Financial Assets, as at 31 December 2022, at Fair
Value of GBP869.5m plus RCF of GBP121m and third party portfolio
debt of GBP410.1m (giving total debt of GBP531.1m).
Directors' Valuation sensitivities
Valuation sensitivities are set out in tabular form in note 7 of
the financial statements. The following diagram reviews the
sensitivity of the EV of the portfolio to the key underlying
assumptions within the discounted cash flow valuation.
[chart]
11. Financing
Revolving Credit Facility
On 11 May 2022, the Company agreed a new and enlarged GBP100
million revolving credit facility ("RCF"), provided equally by RBSI
and Santander UK, maturing in May 2024 (with an option to extend to
May 2025). On 22 December 2022 an accordion loan facility of GBP70
million was agreed with the lenders, with a maturity of September
2023.
As at 31 December 2022 the Company's subsidiary had drawn
GBP121m from its RCF.
External Debt
Excluding the Company's RCF, total outstanding loans to 3(rd)
party lenders as at 31 December 2022 is GBP410.1m, with each loan
secured against a portfolio of assets and fully amortising within
the life of the respective asset's subsidies.
The average interest cost, excluding the Company's RCF, across
the external debt facilities in the table below is 2.9%. For
completeness, this excludes the Macquarie debt as the acquisition
of the 46.4MWp solar portfolio only occurred at the end of the
period.
The table below outlines core details of all debt facilities
within the Company, excluding the RCF, which is detailed above.
Lender Outstanding Amount Maturity Secured against
(December 2022)
NatWest - 3yr term loan GBP110m Sep 2023 (75% hedged at a 141.7MW solar portfolio
swap rate of 0.31% until
2038)
---------------------------- ---------------------------- ----------------------------
Project finance loan with GBP8.2m Sep 2029 5MW solar asset
BayernLB
---------------------------- ---------------------------- ----------------------------
BayernLB, Clydesdale, KfW - GBP55.6m (BayernLB), Dec 2033 to Jun 2034 93.2MW solar and wind
15yr amortising loans GBP10.1m (KfW), GBP8.1m portfolio
(Clydesdale)
---------------------------- ---------------------------- ----------------------------
Aviva - 18yr amortising GBP88.8m fixed, GBP64.5m Sep 2034 401.2MW solar portfolio
loan index linked
---------------------------- ---------------------------- ----------------------------
Macquarie - 15yr amortising GBP7.5m fixed, GBP20.0m Mar 2035 46.4MW solar portfolio
loan index linked
---------------------------- ---------------------------- ----------------------------
Gravis - 15yr amortising GBP37.3m Jun 2035 47.5MW solar and wind
loan portfolio
---------------------------- ---------------------------- ----------------------------
Total GBP410.1m
---------------------------- ---------------------------- ----------------------------
NatWest 3yr term loan maturity
The Company is in the process of refinancing the 3 year term
loan which is due to mature in September 2023. It is expected that
the loan will be refinanced into longer term debt and will
additionally support the construction of the Yelvertoft
project.
GAV Leverage
The Group's total outstanding debt, as at 31 December 2022, is
c.GBP531.1 million and its leverage stands at c.38% of GAV (35% as
at 30 June 22), within the 35% - 45% preferred range the Directors
have previously outlined as desirable for the Company.
11. Market Developments
UK renewable generation capacity and deployment
Latest government data shows that UK solar photovoltaic (PV)
capacity stands at around 14.1GWp, across c.1.2 million
installations. Of this amount, around 7.3GWp (c.52% of the total
solar capacity in the UK) and 5.1GWp (37%) is accredited under the
RO and FiT schemes, respectively, and c.1.7GWp (12%) is
unaccredited. Onshore and offshore wind installed capacity stands
at around 14.7GW and 13.9GW, respectively.
The UK has just under 2.1GW of operational battery storage
capacity, according to data from energy association
RenewableUK.
The UK's total renewable generation capacity is projected to
continue to rise over the coming years as the government strives to
meet its net zero targets. In July 2022, the UK government awarded
support for c.10.8GW of new build renewable generation capacity
through its Contracts for Difference renewable subsidy scheme -
with c.7GW awarded for offshore wind projects, c.2.2GW for solar
and c.888MW for onshore wind.
The chart below illustrates the distribution of total installed
capacity across different renewable generation technologies at the
end of the third quarter (the latest data available at the time of
this report) compared with a year earlier.
[chart]
Source: UK government Department for Business, Energy &
Industrial Strategy *Anaerobic Digestion includes sewage sludge
digestion, animal biomass
Secondary market transactions and subsidy-free activity
Transactional activity in the UK renewables market has remained
high, with acquisitions continuing to take place across the
established technologies of solar (c.83MW of transactions in the
period) and wind (c.1.8GW offshore wind across several shares of
sites and c.69MW onshore wind).
Activity in the UK subsidy-free market has also continued at
pace, with development activity being driven by factors such as
ambitious decarbonisation targets, increasing preferences by
customers for clean energy, demand for ESG investments and the
inclusion of solar PV and onshore wind in the most recent CfD
auction round.
Estimates from Solar Power Media indicate that there is now over
79GWp of large-scale solar projects in the
development/ready-to-build phase (June 2022: 41GWp) and c.11.6GWp
awaiting or under construction as at mid- January 2023.
Converting this significant pipeline into operational solar
projects over the next five years is dependent on mitigation of
construction costs and supply chain challenges - both of which have
been features in the aftermath of the Covid pandemic.
With 708MWp of operational solar capacity, the Company maintains
a strong position within the UK solar market, owning about 7.4% of
the country's utility-scale solar PV capacity. As an established
and experienced market participant, this predominantly regulated
revenue base provides a strong foundation for continued growth of
the Company through both primary and secondary investment in solar,
storage and wind.
12. Regulatory Environment
The regulatory environment remains under the spotlight as the
government looks to manage soaring energy costs and increase energy
security. Key themes are outlined below.
Electricity Generator Levy
The UK Chancellor announced at the Autumn Statement in November
2022 the introduction of a new temporary 45% tax - the Levy - is on
the high revenues earned by electricity generators following sharp
rises in commodity markets, driven by conflict and geopolitical
events.
The Levy will be effective from 1 January 2023 until 31 March
2028. It replaces the proposal for the Cost Plus Revenue Limit
which was announced in October 2022, and will apply to
extraordinary returns made by renewable (solar, wind, biomass),
nuclear and energy from waste generators that are connected to the
UK national transmission or local distribution networks.
Extraordinary returns will be calculated in relation to a CPI
linked benchmark price, with the initial benchmark set at GBP75/MWh
until April 2024.
The Levy will not apply to revenue sources from renewable
obligation certificates or renewable energy guarantees of origin,
CfDs with the Low Carbon Contracts Company, feed-in tariff
generation and export tariff payments. Revenues from storage -
including battery technologies, pumped hydroelectric storage, and
innovative storage technologies such as hydrogen - and grid
stabilisation will also not be subject to the Levy either, except
for hybrid assets where generators will need to identify revenues
from generation.
Update on Contracts for Differences (CfD)
In mid-December 2022, the UK government published its draft
allocation framework for the next CfD allocation round 5 (AR5).
Details on the technology pot structures, delivery years and
administrative strike prices were released. AR5 will contain two
technology pots, compared with three from allocation round 4 (AR4).
The pot reshuffle means that offshore wind and remote island wind
technologies will now compete with other established technologies
in pot 1, which include solar photovoltaic (above 5MW) and onshore
wind. The implications of this scope change are likely to be
clearer once further details on the auction parameters, including
capacity caps per technology, are released in March 2023 prior to
the opening of the AR5 application window in the same month.
Future CfD allocation rounds are still on track to run annually,
rather the previous format of every two years, as per the
Government's announcement in February 2022.
The Government has also opened a consultation on potential
changes for allocation round 6 (due to open in 2024) and beyond.
Consultation topics include possible changes to the definition of
floating offshore wind, inclusion of multipurpose interconnectors
and including CfDs for repowering projects. The consultation closed
on 7 February 2023.
UK Carbon Market
In the Autumn Budget, the UK government confirmed the Carbon
Price Floor (CPS) would be frozen for a further year at GBP18/tonne
of CO2 equivalent for 2024/25. It also promised to engage with
industry and conduct a review of the CPS beyond the announced
rates. Separately, an initial review of the UK Emissions Trading
System (UK ETS) is planned to commence this year to assess the
whole system performance during the first half of the first phase
of the scheme, which runs from 2021 - 2025. Any necessary changes
will be implemented by 2026.
The carbon price - comprising the UK ETS and CPS combined -
makes up a small portion of the total variable costs incurred by
marginal plant generators in the UK's wholesale power market.
Review of Electricity Market Arrangements
The government launched its Review of Electricity Market
Arrangements (REMA) consultation in July 2022. REMA is considering
a range of potential market reforms including nodal pricing along
with a wide range of additional options covering changes to low
carbon investment, flexibility, operability, and capacity adequacy.
The initial stage of the consultation closed in October 2022. The
government is expected to provide a REMA update to the market by
March 2023.
Bluefield Partners LLP
27 February 2023
Environmental, Social and Governance Report
1. Introduction from the Chair
ESG stands firmly at the forefront of the investor agenda. In
response to growing appetite amongst the investment community to
identify and integrate ESG considerations into decision-making,
regulators around the world have hastened efforts to introduce
mandatory non-financial disclosure. As such, we saw Level 2
disclosure requirements of the Sustainable Finance Disclosure
Regulation (SFDR) come into effect in January 2023. On this, I am
pleased to say that following a recent assessment, the Company's
current portfolio is deemed 100% aligned with the EU Taxonomy and
is classified as an Article 8 Fund. There has also been increased
focus on biodiversity and its consideration within investment,
including milestone agreements made at COP15. The Company will
continue to follow the progress of biodiversity frameworks, such as
the Task Force on Nature-related Financial Disclosures (TNFD), over
the coming year.
Following the launch of the Company's ESG strategy, work is
underway to fulfil its first-year commitments. ESG provides a
framework through which the Company can deliver environmental and
social gain whilst also taking account of its own adverse impacts.
The Board looks forward to continuing to make progress to achieve
our ESG ambition and our desire both to deliver renewable energy
and to do so responsibly.
John Scott,
Chair
2. ESG Highlights
Estimated annual figures based on forecasted generation data for
the period 1 July 2022 - 30 June 2023
Ø Over 847 GWh of renewable energy generation
Ø Over 163,000 tonnes of CO2e savings [1]
Ø Equivalent of over 292,000 houses powered with renewable
energy[2]
Ø Over GBP200,000 to be paid to community benefit schemes
Interim Achievements
Ø Completed a climate risk and vulnerability assessment (CRVA)
in line with recommendations from the Task Force on Climate-related
Financial Disclosures (TCFD)
Ø Achieved 100% alignment with the EU Taxonomy and an Article 8
fund [3]
Ø Adopted and published a Sustainable Investment Policy
3. The Company's ESG Strategy
The Company published its first ESG strategy within its 2022
Annual Report. The Company is proud to have developed its approach
and embraced a critically self-reflective practice to discover,
define and articulate an ESG strategy that reflects stakeholder
expectations, and which will deliver a positive impact across its
portfolio of investments.
Commitments & KPIs
Commitments and KPIs have been developed to enable the Company
to monitor and evidence its ESG performance. These were adopted by
the Board in August 2022 and will be reviewed by the Board
annually, to ensure they remain aligned to the evolving ESG
landscape. Data collection is ongoing to enable the Company to
first report against its KPIs later in 2023. Please refer to the
Company's 2022 Annual Report for a full breakdown of commitments
and KPIs.
Governance
ESG is considered by the Board as part of every Board meeting
and in all investment decisions, and the Board are responsible for
oversight of ESG risks and opportunities, including in relation to
climate. Figure 1 presents the Company's ESG and climate governance
structure:
Figure 1 - the Company's ESG and Climate Governance
Structure
[chart]
In recognition of the increased scrutiny applied to ESG, the
Board has recently established an ESG committee, chaired by Meriel
Lenfestey. The principal function of the Committee is to provide a
forum for mutual discussion, support and challenge to the
Investment Adviser with respect to ESG and climate matters. The
first Committee meeting took place in November 2022 and the
Committee will meet at least once a year moving forward.
Establishment of the Committee will support the delivery of the
Company's ESG strategy and wider ESG ambitions.
During the reporting period, the Company adopted and published a
Sustainable Investment Policy, available on its website:
bluefieldsif.com . The Company will develop additional policies,
including a Sustainable Procurement Policy and Supplier Code of
Conduct, over coming months.
Accreditations
In recognition of its positive environmental impact, the Company
has been awarded the following accreditations:[4](,[5],[6])
Ø Guernsey Green Fund
Ø TISE Sustainable
Ø LSE Green Economy Mark
4. Responsible Investment
On behalf of the Company, the Investment Adviser undertakes
detailed due diligence on each investment opportunity, including in
relation to ESG and climate risks and opportunities. Please refer
to the Company's Sustainable Investment Policy, available on its
website, for a full breakdown of how sustainability risks are
integrated into the Company's investment process: bluefieldsif.com
.
Principles for Responsible Investment
The Principles for Responsible Investment (PRI) are a set of
voluntary investment principles which promote the integration of
ESG considerations into investment practice. The Investment Adviser
has been signatory to the PRI since 2019.
5. Regulatory Update
Sustainable Finance Disclosure Regulation
The Company has elected to adopt an Article 8 classification
under the Sustainable Finance Disclosure Regulation (SFDR). Given
the nature of the Company's investments, Article 9 classification
has been considered. However, there is currently insufficient
detail on the level of regulatory scrutiny Article 9 funds will be
subject to compared to Article 8. As the requirements and
expectations of the SFDR become clearer, the Company will review
whether Article 8 classification remains appropriate.
For the purposes of Article 8, the environmental characteristics
promoted by the Company are to reduce reliance on fossil fuels and
facilitate the UK transition to renewable and sustainable methods
of energy generation. Please refer to the 'Climate Change
Mitigation' section of the Company's 2022 Annual Report and the
Company's Article 23 pre-contractual disclosure, available on its
website, to see how the Company has met its environmental
characteristics over the reporting period:
bluefieldsif.com/esg/sustainable-finance-disclosure-regulation/
.
The Company is currently undertaking an analysis of its
portfolio of assets to understand the Principal Adverse Impacts
(PAIs) of its investment decisions on sustainability factors, by
reference to the relevant sustainability indicators set out in the
SFDR Regulatory Technical Standards (RTS). The Company will publish
its first PAI statement before the deadline of 30 June 2023, which
will be available in the section titled 'Sustainability-related
disclosures' on the Company's website.
Please note that, as part of the Company's implementation of the
SFDR Regulatory Technical Standards, the Company's Article 23
pre-contractual disclosure was updated on 22 December 2022. This
involved the deletion of the sections titled 'Promotion of
environmental and social characteristics' and 'Taxonomy-alignment',
and the addition of the SFDR annex to provide the relevant
sustainability-related information in the format of the mandated
template. A section titled 'Consideration of principal adverse
impacts of investment decisions on sustainability factors' was also
added to inform investors of the Company's approach to implementing
the PAI requirements. These changes are intended to comply with the
Company's regulatory obligations and provide greater information to
investors about the Company's sustainability profile and
attributes.
The most recent versions of the Company's sustainability-related
disclosures are available on its website:
bluefieldsif.com/esg/sustainable-finance-disclosure-regulation/
EU Taxonomy
The Company considers that its investments substantially
contribute to the environmental objective of Climate Change
Mitigation. During the reporting period, the Company aimed to
achieve this objective through its production of clean, renewable
energy, and by investing in new renewable energy infrastructure and
energy storage facilities.
The Company engaged an external consultant to undertake a review
to determine the portfolio's alignment to the EU Taxonomy. The
results of the assessment concluded that 100% of the current
portfolio is taxonomy-aligned. The assessment was conducted in
relation to the 2022 calendar year and included the following
economic activities:
-- Electricity generation using solar photovoltaic
technology
-- Electricity generation from wind power
-- Installation, maintenance, and repair of renewable energy
technologies
It should be noted that the economic activity of 'Storage of
electricity' was excluded from this assessment as the only
constructed battery projects currently within the Company's
portfolio are offline and not yet in use (and, if operational,
would not represent a material proportion of revenues). This
economic activity will therefore form part of the Company's future
pipeline of work.
The Company acknowledges that work will be required to maintain
this level of alignment and is committed to continual improvement
in its ESG approach, in line with the commitments made as part of
its ESG strategy. For further information on the methodology used
to conduct the EU Taxonomy assessment, or how the Company is
meeting and monitoring its environmental characteristics, please
refer to the Company's website:
bluefieldsif.com/esg/sustainable-finance-disclosure-regulation/
.
Task Force on Climate-related Financial Disclosures
As a renewable energy fund, climate change poses both
opportunities and risks to the Company. Climate-related
considerations form a key element of the Company's ESG strategy,
helping ensure that climate is considered across the investment
lifecycle, including pre-investment due diligence, asset management
and reporting.
Although the Company does not currently fall within the scope of
the FCA's mandatory reporting requirement, it has chosen to
undertake TCFD reporting on a voluntary basis. The Company's first
TCFD disclosure was presented within the 2022 Annual Accounts.
6. Key Activity Update
Climate Risk and Vulnerability Assessment (CRVA)
During summer 2022, the Company undertook a climate screening
exercise to identify potential climate-related risks and
opportunities. This considered solar, wind and battery storage
assets, in addition to construction activities. Identified
potential climate-related risks included extreme heat, flooding and
storms.
Building on these findings, during the interim period the
Company undertook a Climate Risk and Vulnerability Assessment
(CRVA), to assess the materiality of these physical climate risks
on each of the Company's economic activities. The assessment
included data from the Intergovernmental Panel on Climate Change
(IPCC) reports (CMIP5) and representative concentration pathways
(RCP2.6, RCP4.5, RCP8.5), and included at least 10-to-30-year
climate projection scenarios.
The results of the assessment will be used as part of the
scenario analysis exercise that the Company is currently
undertaking, helping increase the resilience of the Company's
climate strategy over time.
Bluefield Partners LLP
27 February 2023
Statement of Principal and Emerging Risks and Uncertainties for
the Remaining Six Months of the year to 30 June 2023
As described in the Company's annual financial statements as at
30 June 2022 (with the exception of portfolio construction risk),
the Company's principal and emerging risks and uncertainties
include the following:
-- Portfolio acquisition risk;
-- Portfolio construction risk;
-- Supply chain risks;
-- Valuation error;
-- Depreciation of NAV;
-- Physical and transitional climate-related risks;
-- Changing electricity market conditions;
-- Changes in tax regime;
-- Changes to Government plans;
-- Cyber risk, and
-- Adverse publicity.
During the period since 30 June 2022, the Board added portfolio
construction risk and elevated supply chain risk to principal
risks. The addition of these risks to the Company's principal risks
is driven by the commencement of construction of the Yelvertoft
project.
The Board has considered the potential impact of portfolio
construction risk to be poorly managed construction leading to
environmental damage and the use of components that have not been
responsibly sourced. These risks are being mitigated by the
development of responsible procurement and construction
policies.
The potential impact of supply chain risk has been considered as
the availability and affordability of equipment and spare parts due
to global supply chain issues that could reduce plant availability
and delay construction projects. The Board considers the risk is
mitigated by global trade agreements, however certain tariffs and
fees may apply on goods from the EU. The Investment Adviser should
monitor accordingly and advise of any issues or changes to
financial forecasts in this regard. Equipment has been stock piled
over the winter for planned refurbishments.
The Board believes that these risks are unchanged in respect of
the remaining six months of the year to 30 June 2023.
Further information in relation to these principal risks and
uncertainties may be found on pages 15 to 19 of the Company's
annual financial statements as at 30 June 2022.
These inherent risks associated with investments in the
renewable energy sector could result in a material adverse effect
on the Company's performance and value of Ordinary Shares.
Risks including emerging risks are mitigated and managed by the
Board through continual review, policy setting and regular reviews
of the Company's risk matrix by the Audit and Risk Committee to
ensure that procedures are in place with the intention of
minimising the impact of the above mentioned risks. The Board
carried out a formal review of the risk matrix at the Audit and
Risk Committee meeting held on 28 November 2022. The Board relies
on periodic reports provided by the Investment Adviser and
Administrator regarding risks that the Company faces. When
required, experts will be employed to gather information, including
tax advisers, legal advisers, and environmental advisers.
Directors' Statement of Responsibilities
The Directors are responsible for preparing the Interim Report
and Unaudited Condensed Interim Financial Statements in accordance
with applicable regulations. The Directors confirm that to the best
of their knowledge:
-- the Unaudited Condensed Interim Financial Statements have
been prepared in accordance with IAS 34 'Interim Financial
Reporting' as adopted by the European Union; and
-- the interim management report which includes the Chair's
Statement, Report of the Investment Adviser and Statement of
Principal and Emerging Risks and Uncertainties for the remaining
six months of the year to 30 June 2023 includes a fair review of
the information required by:
a. DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
Unaudited Condensed Interim Financial Statements; and a description
of the principal risks and uncertainties for the remaining six
months of the financial year; and
b. DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place during the
first six months of the financial year and that have materially
affected the financial position or performance of the Company
during that period; and any changes in the related party
transactions described in the last annual report that could do
so.
The Board is responsible for the maintenance and integrity of
the corporate and financial information included on the Company's
website, and for the preparation and dissemination of financial
statements. Legislation in Guernsey governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
On behalf of the Board
Paul Le Page Meriel Lenfestey
Director Director
27 February 2023 27 February 2023
Independent Review Report to Bluefield Solar Income Fund
Limited
Conclusion
We have been engaged by Bluefield Solar Income Fund Limited (the
"Company") to review the condensed set of financial statements in
the half-yearly financial report for the six months ended 31
December 2022 of the Company, which comprises the unaudited
condensed statements of financial position, comprehensive income,
changes in equity, cash flows and the related explanatory
notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 31
December 2022 is not prepared, in all material respects, in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU and the Disclosure Guidance and Transparency Rules ("the
DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410 Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity ("ISRE (UK) 2410") issued by the Financial Reporting Council
for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. We read the other information contained in the
half-yearly financial report and consider whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Scope of review
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410. However future events or conditions
may cause the Company to cease to continue as a going concern, and
the above conclusions are not a guarantee that the Company will
continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the interim financial report in accordance with the
DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the
Company are prepared in accordance with International Financial
Reporting Standards as adopted by the EU. The directors are
responsible for preparing the condensed set of financial statements
included in the half-yearly financial report in accordance with IAS
34 Interim Financial Reporting as adopted by the EU.
In preparing the half-yearly financial report, the directors are
responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they
either intend to liquidate the Company or to cease operations, or
have no realistic alternative but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review. Our conclusion, including our
conclusions relating to going concern, are based on procedures that
are less extensive than audit procedures, as described in the scope
of review paragraph of this report.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the Company in accordance with the
terms of our engagement letter to assist the Company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the Company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company for our
review work, for this report, or for the conclusions we have
reached.
Barry Ryan
for and on behalf of KPMG Channel Islands Limited
Chartered Accountants, Guernsey
27 February 2023
Unaudited Condensed Statement of Financial Position
As at 31 December 2022
31 December 2022 30 June 2022
Unaudited Audited
Note GBP'000 GBP'000
------------------------------------------------------------ ----- ----------------- -------------
ASSETS
Non-current assets
Financial assets held at fair value through profit or loss 7 869,488 856,380
Total non-current assets 869,488 856,380
------------------------------------------------------------ ----- ----------------- -------------
Current assets
Trade and other receivables 8 1,275 882
Cash and cash equivalents 9 631 1,619
Total current assets 1,906 2,501
------------------------------------------------------------ ----- ----------------- -------------
TOTAL ASSETS 871,394 858,881
------------------------------------------------------------ ----- ----------------- -------------
LIABILITIES
Current liabilities
Other payables and accrued expenses 10 675 490
------------------------------------------------------------ ----- ----------------- -------------
Total current liabilities 675 490
------------------------------------------------------------ ----- ----------------- -------------
TOTAL LIABILITIES 675 490
------------------------------------------------------------ ----- ----------------- -------------
NET ASSETS 870,719 858,391
------------------------------------------------------------ ----- ----------------- -------------
EQUITY
Share capital 663,809 663,809
Retained earnings 206,910 194,582
TOTAL EQUITY 12 870,719 858,391
------------------------------------------------------------ ----- ----------------- -------------
Number of Ordinary Shares in issue
at period/year end 12 611,452,217 611,452,217
------------------------------------------------------------ ----- ----------------- -------------
Net Asset Value per Ordinary Share (pence) 6 142.40 140.39
------------------------------------------------------------ ----- ----------------- -------------
These unaudited condensed interim financial statements were
approved and authorised for issue by the Board of Directors on 27
February 2023 and signed on their behalf by:
Paul Le Page Meriel Lenfestey
Director Director
27 February 2023 27 February 2023
The accompanying notes form an integral part of these unaudited
condensed interim financial statements.
Unaudited Condensed Statement of Comprehensive Income
For the six months ended 31 December 2022
Six months ended Six months ended
31 December 2022 31 December 2021
Unaudited Unaudited
Note GBP'000 GBP'000
------------------------------------------------------------------------- ----- ----------------- -----------------
Income
Income from investments 4 437 408
437 408
Net gains on financial assets held at fair value through profit or loss 7 38,408 54,103
------------------------------------------------------------------------- ----- ----------------- -----------------
Operating income 38,845 54,511
------------------------------------------------------------------------- ----- ----------------- -----------------
Expenses
Administrative expenses 5 1,203 812
Operating expenses 1,203 812
------------------------------------------------------------------------- ----- ----------------- -----------------
Operating profit 37,642 53,699
------------------------------------------------------------------------- ----- ----------------- -----------------
Total comprehensive income
for the period 37,642 53,699
------------------------------------------------------------------------- ----- ----------------- -----------------
Attributable to:
Owners of the Company 37,642 53,699
Earnings per share:
Basic and diluted (pence) 11 6.16 11.05
------------------------------------------------------------------------- ----- ----------------- -----------------
All items within the above statement have been derived from
continuing activities.
The accompanying notes form an integral part of these unaudited
condensed interim financial statements.
Unaudited Condensed Statement of Changes in Equity
For the six months ended 31 December 2022
Number
of
Ordinary Retained
Note Shares Share capital earnings Total equity
GBP'000 GBP'000 GBP'000
------------------------------------------- ------- ------------ -------------- ---------- -------------
Shareholders' equity at 1 July 2022 611,452,217 663,809 194,582 858,391
------------------------------------------- ------- ------------ -------------- ---------- -------------
Dividends paid 12,13 - - (25,314) (25,314)
Total comprehensive income for the period - - 37,642 37,642
Shareholders' equity at 31 December 2022 611,452,217 663,809 206,910 870,719
------------------------------------------- ------- ------------ -------------- ---------- -------------
For the six months ended 31 December 2021
Number
of
Ordinary Retained
Note Shares Share capital earnings Total equity
GBP'000 GBP'000 GBP'000
------------------------ ------- ------------ -------------- ---------- -------------
Shareholders' equity
at 1 July 2021 406,999,622 413,215 58,210 471,425
------------------------ ------- ------------ -------------- ---------- -------------
Shares issued during
the period 12 89,067,980 105,100 - 105,100
Share issue costs 12 - (2,188) - (2,188)
Dividends paid 12,13 - - (18,061) (18,061)
Total comprehensive
income for the period - - 53,699 53,699
Shareholders' equity
at 31 December 2021 496,067,602 516,127 93,848 609,975
------------------------ ------- ------------ -------------- ---------- -------------
The accompanying notes form an integral part of these unaudited
condensed interim financial statements.
Unaudited Condensed Statement of Cash Flows
For the six months ended 31 December 2022
Six months ended Six months ended
31 December 2022 31 December 2021
Unaudited Unaudited
Note GBP'000 GBP'000
------------------------------------------------------------------------ ------ ----------------- -----------------
Cash flows from operating activities
Total comprehensive income for the period 37,642 53,699
Adjustments:
Increase in trade and other receivables (393) (427)
Increase in other payables and accrued expenses 185 40
Net gains on financial assets held at fair value through profit or loss 7 (38,408) (54,103)
Net cash used in operating activities* (974) (791)
------------------------------------------------------------------------ ------ ----------------- -----------------
Cash flows from investing activities
Purchase of financial assets held at fair value through profit or loss - (102,600)
Receipts from unconsolidated subsidiary** 7 25,300 18,262
Net cash generated from/ (used in) investing activities 25,300 (84,338)
------------------------------------------------------------------------ ------ ----------------- -----------------
Cash flows from financing activities
Proceeds from issue of Ordinary Shares 12 - 103,450
Issue costs paid 12 - (538)
Dividends paid 12,13 (25,314) (18,061)
Net cash (used in)/generated from financing activities (25,314) 84,851
------------------------------------------------------------------------ ------ ----------------- -----------------
Net decrease in cash and cash equivalents (988) (278)
Cash and cash equivalents at the start of the period 1,619 775
Cash and cash equivalents at the end of the period 9 631 497
------------------------------------------------------------------------ ------ ----------------- -----------------
The accompanying notes form an integral part of these unaudited
condensed interim financial statements.
*Net cash used in operating activities includes GBP437,500 (31
December 2021: GBP407,517) of investment income.
**Receipts from unconsolidated subsidiary includes GBP6.2
million (31 December 2021: GBP5.3 million) of interest.
Notes to the Unaudited Condensed Interim Financial
Statements
For the six months ended 31 December 2022
1. General information
The Company is a non-cellular company limited by shares,
incorporated in Guernsey under the Law on 29 May 2013. The
Company's registration number is 56708, and it is regulated by the
GFSC as a registered closed-ended collective investment scheme.
The investment objective of the Company is to provide
Shareholders with an attractive return, principally in the form of
quarterly income distributions, by being invested primarily in
solar energy assets located in the UK. The Company also has the
ability to invest a minority of its share capital into wind, hydro
and energy storage assets.
The Company has appointed Bluefield Partners LLP as its
Investment Adviser.
2. Accounting policies
a) Basis of preparation
The financial statements, included in this interim report, have
been prepared in accordance with IAS 34 'Interim Financial
Reporting', as adopted by the EU and the DTR. These financial
statements comprise only the results of the Company as all of its
subsidiaries are measured at fair value as explained in Note 2.c.
The financial statements have been prepared on a basis that is
consistent with accounting policies applied in the preparation of
the Company's annual financial statements for the year ended 30
June 2022, approved for issue on 29 September 2022.
These financial statements have been prepared under the
historical cost convention with the exception of financial assets
held at fair value through profit or loss and in accordance with
the provisions of the DTR.
These financial statements do not include all information and
disclosures required in the annual financial statements and should
be read in conjunction with the Company's audited financial
statements for the year ended 30 June 2022, which were prepared
under full IFRS requirements and the DTRs of the UK FCA.
Seasonal and cyclical variations
Although the bulk of the Company's electricity generation occurs
during the summer months when the days are longer, the Company's
results do not vary significantly during reporting periods as a
result of seasonal activity.
b) Going concern
The Directors, in their consideration of going concern, have
reviewed cash flow forecasts prepared by the Investment Adviser,
future projects in the pipeline and the performances of the current
solar and wind plants in operation. The conflict in Ukraine
continues to have a significant impact on the macro-economic
environment in which the Company operates. The Board and Investment
Adviser take account of the consequences of the confilct as part of
the going concern assessment.
The Board has also considered the likelihood of the Company
being asked to discontinue operations in its mandatory five year
continuation vote that is due at the 2023 AGM and regards this as
very unlikely, given the strong performance of the Company and the
support which it has received from its major shareholders. In
assessing the going concern status of the Company, the Board has
also considered the re-financing of the NatWest term loan, maturing
in September 2023, and the interest rate swaps for 75% of the
balance (being GBP82.5m) in place until 2037. The Investment
Adviser is currently in the process of refinancing into longer term
debt, which will additionally support the construction of the
Yelvertoft project.
The Board has considered the Directors' Valuation, which uses a
blend of power price forecasts from leading industry consultants.
These forecasts are based on updated analysis on European fuels and
carbon forward prices as well as the expected evolution of the UK's
overall power supply and demand position in the longer term.
Electricity prices continued to be at elevated levels during the
period, with UK day-ahead base-load price rising to around
GBP232/MWh on average in the six months to 31 December 2022, up
from c.GBP176/MWh in the six months from 1 January to 30 June 2022
and c.GBP166/MWh in the six months from 1 July to 31 December
2021.
The Directors have concluded that it is appropriate to adopt the
going concern basis of accounting in preparing these financial
statements.
c) Accounting for subsidiaries
The Board considers that the Company is an investment entity. In
accordance with IFRS 10, all subsidiaries are recognised at fair
value through profit and loss.
d) Segmental reporting
IFRS 8 'Operating Segments' requires a 'management approach',
under which segment information is presented on the same basis as
that used for internal reporting purposes.
The Board, as a whole, has been determined as constituting the
chief operating decision maker of the Company. The key measure of
performance used by the Board to assess the Company's performance
and to allocate resources is the total return on the Company's NAV,
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 these financial statements.
For management purposes, the Company is engaged in a single
segment of business, being investment in renewable energy
infrastructure assets via SPVs, and in one geographical area, the
UK.
e) Fair value of subsidiary
The Company holds all of the shares in the subsidiary, BR1,
which is a holding vehicle used to hold the Company's investments.
The Directors believe it is appropriate to value this entity based
on the fair value of its portfolio of SPV investment assets held
plus its other assets and liabilities. The SPV investment assets
held by the subsidiary, inclusive of their intermediary holding
companies, are valued semi-annually as described in Note 7 based on
referencing comparable transactions supported by discounted cash
flow analysis and are referred to as the Directors' Valuation.
3. Critical accounting judgements, estimates and assumptions in
applying the Company's accounting policies
The preparation of these financial statements under IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and other
factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making judgements about
carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates.
The area involving a high degree of judgement or complexity or
area where assumptions and estimates are significant to the
financial statements has been identified as the valuation of the
portfolio of investments held by BR1 (see Note 7).
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future period
if the revision affects both current and future periods.
As disclosed in Note 7, the Board believes it is appropriate for
the Company's portfolio to be benchmarked on a GBPm / MW basis
against comparable portfolio transactions and on this basis the
weighted average discount rate increased to 7.25% (6.75% in June
2022), which reflects the return hurdles in the market for lowly
levered assets with high levels of regulated income.
4. Income from investments
Six months ended Six months ended
31 December 2022 31 December 2021
GBP'000 GBP'000
Monitoring fee in relation to loans supplied 437 408
437 408
================= =================
The Company provides monitoring and loan administration services
to BR1 for which an annual fee is charged and is payable in
arrears.
5. Administrative expenses
Six months ended Six months ended
31 December 2022
31 December 2021
GBP'000 GBP'000
Investment advisory base fee (see Note 14) 397 236
Administration fees 289 168
Legal and professional fees 140 87
Directors' remuneration (see Note 14) 137 123
Audit fees 53 47
Regulatory Fees 50 27
Non-audit fees (interim review) 45 40
Registrar fees 35 25
Broker fees 25 25
Insurance 12 11
Listing fees 3 12
Other expenses 17 11
1,203 812
================== =================
6. Net Asset Value per Ordinary Share
The calculation of NAV per Ordinary Share is arrived at by
dividing the total net assets of the Company as at the unaudited
condensed statement of financial position date by the number of
Ordinary Shares of the Company at that date.
7. Financial assets held at fair value through profit or loss
Six months ended Twelve months ended
31 December 2022 30 June 2022
Total Total
GBP'000 GBP'000
Opening balance (Level 3) 856,380 470,282
Additions - 250,282
Change in fair value 13,108 135,816
Closing balance (Level 3) 869,488 856,380
================= ====================
Investments at fair value through profit or loss comprise the
fair value of the investment portfolio, which is valued
semi-annually by the Directors, and the fair value of BR1, the
Company's single, direct subsidiary being its cash, working capital
and debt balances. A reconciliation of the investment portfolio
value to financial assets at fair value through profit and loss in
the Unaudited Condensed Statement of Financial Position is shown
below.
31 December
2022 30 June 2022
Total Total
GBP'000 GBP'000
Investment portfolio, Directors'
Valuation 987,630 939,948
Immediate Holding Company
Cash 25,321 13,102
Working capital (22,463) (26,670)
Debt (121,000) (70,000)
------------ -------------
(118,142) (83,568)
Financial assets at fair value
through profit or loss 869,488 856,380
============ =============
Analysis of net gains on financial assets held at fair value through profit or loss (per
unaudited condensed statement of comprehensive income)
Six months ended Six months ended
31 December 2022 31 December 2021
GBP'000 GBP'000
Unrealised change in fair value of financial assets held at fair value
through profit or loss 13,108 35,841
Cash receipts from unconsolidated subsidiary* 25,300 18,262
Net gains on financial assets held at fair value through profit and loss 38,408 54,103
================= =================
*Comprising of repayment of loans and Eurobond interest
Fair value measurements
Financial assets and financial liabilities are classified in
their entirety into only one of the following three levels:
-- Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities;
-- Level 2 - inputs other than quoted prices included within
Level 1 that are observable for the assets or liabilities, either
directly (i.e. as prices) or indirectly (i.e. derived from
prices);
-- Level 3 - inputs for assets or liabilities that are not based
on observable market data (unobservable inputs).
The determination of what constitutes 'observable' requires
significant judgement by the Company. The Company considers
observable data to be market data that is readily available,
regularly distributed or updated, reliable and verifiable, not
proprietary, and provided by independent sources that are actively
involved in the relevant market.
The only financial instruments carried at fair value are the
investments held by the Company, through BR1, which are fair valued
at each reporting date. The Company's investments have been
classified within Level 3 as BR1's investments are not traded and
are valued using unobservable inputs.
Transfers during the period
There have been no transfers between levels during the six month
period ended 31 December 2022. Any transfers between the levels
will be accounted for on the last day of each financial period. Due
to the nature of investments, these are always expected to be
classified as Level 3.
Directors' Valuation methodology and process
The same valuation methodology and process for operational
assets is followed in these financial statements as was applied in
the preparation of the Company's financial statements for the year
ended 30 June 2022.
Before planning has been achieved, no value is attributed
(beyond costs incurred), to the Company's development pipeline.
However, once the projects receive planning permission they are
then valued according to the following criteria:
-- Projects purchased by the Company from developers are valued
at investment cost (deemed to be approximate fair value ).
-- Other projects in the Company's pipeline are valued on an
asset-by-asset basis and benchmarked against values from wider
market processes.
During the construction stages assets continue to be valued at
investment cost (deemed to be approximate fair value). The
Investment Adviser intends for newly built projects to be valued on
a DCF basis shortly after they become operational.
Investments that are operational are valued on a DCF basis over
the life of the asset (typically more than 25 years) and, under the
'willing buyer-willing seller' methodology, prudently benchmarked
on a GBP/MW basis against comparable transactions for large scale
portfolios.
Each investment is subject to full UK corporate taxation at the
prevailing rate with the tax shield being limited to the applicable
capital allowances from the Company's SPV investments.
The key inputs to a DCF based approach are: the equity discount
rate, the cost of debt (influenced by interest rate, gearing level
and length of debt), power price forecasts, long term inflation
rates, irradiation forecasts, average wind speeds, operational
costs, asset life and taxation. Given discount rates are a product
of not only the factors listed previously but also regulatory
support, perceived sector risk and competitive tensions, it is not
unusual for discount rates to change over time. Evidence of this is
shown by way of the revisions to the original discount rates
applied between the first renewable acquisitions and those
witnessed in recent years.
This period sees the inclusion of the new Electricity Generator
Levy ("the Levy") on excess profits produced by electricity
generators as announced by the Chancellor of the Exchequer in the
Autumn Statement in November 2022. The Levy is a temporary 45% tax
on the extraordinary returns made by electricity generators late
last year while European energy prices soared in the wake of
Russia's invasion of Ukraine. The Levy will be in place from 1
January 2023 until 31 March 2028, with the benchmark price linked
to UK Consumer Price Inflation. The Investment Adviser has sought
external advice from its legal and tax advisers on how to model the
Levy within the valuation methodology.
Given the fact discount rates are subjective, there is
sensitivity within these to the interpretation of factors outlined
above.
Judgement is used by the Board in determining the weighted
average discount rate of 7.25% (6.75% as at 30 June 2022), with
three key factors that have impacted the adoption of this rate
outlined below:
a. Transaction values have remained consistent at
c.GBP1.25-1.45/MW for large scale solar portfolios and which the
Board have used to determine that an effective price of GBP1.38/MW
is an appropriate basis for the valuation of the BSIF solar
portfolio as at 31 December 2022.
b. Inclusion of the latest blended long term power forecasts
from the Company's three providers.
c. Inclusion of an uplift with respect to asset extensions of 15
years on a subset (530 MW) of the portfolio.
The debt assumptions within the valuation reflect all
third-party loans within the Group's capital structure as at the
valuation date. Interest rates and repayment profiles are matched
to the terms of each loan. In the case of any short-term financing,
conservative assumptions are applied with respect to interest rates
and repayment profiles post maturity. As at 31 December 2022, the
Group's short term debt consisted of a GBP110m term loan with
NatWest, maturing in September 2023, and the conversion assumption
within the valuation is aligned to the percentage of the loan that
has been hedged (being 75% with 17-year swaps at a rate of 0.31%
until 2037). The interest rate applied to the converted balance
(being GBP82.5m) is 3.0%. In addition, the Company has a small
project finance loan of GBP8.2m, provided by BayernLB and fully
amortising until maturity in 2029, secured against Durrants, a 5 MW
FiT plant located on the Isle of Wight.
In order to smooth the sensitivity of the valuation to forecast
timing or the opinion taken by a single forecast, the Board
continues to adopt the application of a blended power curve from
three leading forecasters.
The fair value of operational SPVs is calculated on a discounted
cash flow basis in accordance with the IPEV Valuation Guidelines.
The Investment Adviser produces fair value calculations on a
semi-annual basis as at 30 June and 31 December each year.
Sensitivity analysis
The table below analyses the sensitivity of the fair value of
the Directors' Valuation to an individual input, while all other
variables remain constant.
The Board considers the changes in inputs to be within a
reasonable expected range based on its understanding of market
transactions. This is not intended to imply that the likelihood of
change or that possible changes in value would be restricted to
this range.
31 December 2022 30 June 2022
----------------------------------------- ------------------------------------
Change in fair Change in fair
value value
of Directors' Change in NAV per of Directors' Change in NAV
Valuation share Valuation per share
Input Change in input GBPm (pence) GBPm (pence)
------------------- ---------------- ------------------- -------------------- -------------------- --------------
Discount rate + 0.5% (20.9) (3.41) (21.8) (3.57)
-------------------
- 0.5% 18.8 3.08 23.1 3.77
------------------- ---------------- ------------------- -------------------- -------------------- --------------
Power prices +10% 53.7 8.78 62.2 10.17
-------------------
-10% (53.7) (8.78) (63.8) (10.43)
------------------- ---------------- ------------------- -------------------- -------------------- --------------
Inflation rate + 0.50% 23.5 3.85 25.0 4.09
-------------------
- 0.50% (23.5) (3.85) (26.1) (4.28)
------------------- ---------------- ------------------- -------------------- -------------------- --------------
Energy yield 10 year P90 (104.9) (17.15) (100.2) (16.39)
-------------------
10 year P10 105.6 17.27 100.5 16.43
------------------- ---------------- ------------------- -------------------- -------------------- --------------
Operational costs +10% (10.9) (1.78) (10.5) (1.72)
-------------------
-10% 10.9 1.78 10.5 1.72
------------------- ---------------- ------------------- -------------------- -------------------- --------------
Subsidiaries and Associates
The Company holds investments through subsidiary companies which
have not been consolidated as a result of the adoption of IFRS 10:
Investment entities exemption to consolidation. Below is the legal
entity name and ownership percentage for the SPVs which are all
incorporated in the UK except for Bluefield Durrants GmBH which is
incorporated in Germany .
Name Ownership percentage Name Ownership percentage
Bluefield Renewables 1 Limited 100 Gypsum Solar Farm Limited 100
Bluefield Renewables 2 Limited 100 Holly Farm Solar Park Limited 100
Bluefield SIF Investments Limited 100 Kellingley Solar Farm Limited 100
Bunns Hill Solar Limited 100 Little Bear Solar Limited 100
Place Barton Farm Solar Park
HF Solar Limited 100 Limited 100
Hoback Solar Limited 100 Willows Farm Solar Limited 100
Littlebourne Solar Farm Limited 100 Southwick Solar Farm Limited 100
Molehill PV Farm Limited 100 Butteriss Down Solar Farm Limited 100
Pashley Solar Farm Limited 100 Goshawk Solar Limited 100
ISP (UK) 1 Limited 100 Kite Solar Limited 100
Solar Power Surge Limited 100 Peregrine Solar Limited 100
West Raynham Solar Limited 100 Promothames 1 Ltd 100
Sheppey Solar Limited 100 Rookery Solar Limited 100
Capelands Solar Farm Limited 100 Mikado Solar Projects (2) Limited 100
North Beer Solar Limited 100 Mikado Solar Projects (1) Limited 100
WEL Solar Park 2 Limited 100 KS SPV 5 Limited 100
Hardingham Solar Limited 100 Eagle Solar Limited 100
Redlands Solar Farm Limited 100 Kislingbury M1 Solar Limited 100
WEL Solar Park 1 Limited 100 Thornton Lane Solar Farm Limited 100
Saxley Solar Limited 100 Gretton Solar Farm Limited 100
Frogs Lake Solar Limited 100 Wormit Solar Farm Limited 100
Old Stone Farm Solar Park Limited 100 Langlands Solar Limited 100
Bradenstoke Solar Park Limited 100 Bluefield Merlin Ltd 100
GPP Langstone LLP 100 Harrier Solar Limited 100
Ashlawn Solar Limited 100 Rhydy Pandy Solar Limited 100
Betingau Solar Limited 100 New Energy Business Solar Ltd 100
Grange Solar Limited 100 Corby Solar Limited 100
Hall Farm Solar Limited 100 Falcon Solar Farm Limited 100
Oulton Solar Limited 100 Folly Lane Solar Limited 100
Romsey Solar Limited 100 New Road Solar Limited 100
Salhouse Solar Limited 100 Blossom 1 Solar Limited 100
Tollgate Solar Limited 100 Blossom 2 Solar Limited 100
Trethosa Solar Limited 100 New Road 2 Solar Limited 100
Welbourne Energy LLP 100 GPP Eastcott LLP 100
Barvills Solar Limited 100 GPP Blackbush LLP 100
Clapton Farm Solar Park Limited 100 GPP Big Field LLP 100
Court Farm Solar Limited 100 KS SPV 5 Limited 100
East Farm Solar Park Limited 100 WSE Hartford Wood Limited 100
Galton Manor Solar Park Limited 100 Mauxhall Farm Energy Park Limited 100
Good Energy Creathorne Farm Solar
Park (003) Limited 100 Wind Energy Holdings Limited 100
Good Energy Lower End Farm Solar 100 Wind Energy Scotland (Fourteen 100
Park (026) Limited Arce Fields) Limited
Good Energy Woolbridge Solar Park 100 Wind Energy Scotland (Birkwood 100
(010) Limited Mains) Limited
Good Energy Rook Wood Solar Park Wind Energy Scotland (Holmhead)
(057) Limited 100 Limited 100
Good Energy Carloggas Solar Park
(009) Limited 100 Arena Capital MP Limited 100
Good Energy Cross Road Plantation
Solar Park (028) Limited 100 Moscliff Power 5 Limited 100
Good Energy Delabole Windfarm
Limited 100 Mosscliff Power 10 Limited 100
Good Energy Hampole Windfarm
Limited 100 Mosscliff Power 2 Limited 100
Good Energy Generating Assets No.1
Limited 100 Mosscliff Power 3 Limited 100
Good Energy Holding Company No.1
Limited 100 Mosscliff Power 4 Limited 100
Aisling Renewables Ltd 100 Mosscliff Power 6 Limited 100
Arena Wind Beragh Limited 100 Mosscliff Power 7 Limited 100
Arena Wind Camlough Limited 100 Mosscliff Power Limited 100
Arena Wind Cullybackey Limited 100 E2 Energy PLC 100
Arena Wind Dungorman Limited 100 Wind Energy One Limited 100
Arena Wind Holdings Limited 100 Wind Energy Two Limited 100
Arena Wind Killeenan Limited 100 New Road Wind Limited 100
Arena Wind Mowhan Limited 100 Yelvertoft Solar Farm Limited 100
Arena Wind Mullanmore Limited 100 Peradon Solar Farm Limited 60
Arena Wind (NI) Limited 100 Lower Tean Leys Solar Farm Limited 60
Ash Renewables No 3 Limited 100 Lower Mays Solar Farm Limited 60
Ash Renewables No 4 Limited 100 Leeming Solar Farm Limited 60
Ash Renewables No 5 Limited 100 Wallace Wood Solar Farm Limited 60
Ash Renewables No 6 Limited 100 Sweet Briar Solar Farm Limited 60
Carmoney Energy Limited 100 BF31 WHF Solar Limited 100
Errigal Energy Limited 100 BF27 BF Solar Limited 100
Galley Energy Limited 100 BF13A TF Solar Limited 100
Oak Renewables 2 Limited 100 HW Solar Farm Limited 100
Oak Renewables Limited 100 AR108 Bolt Solar Farm Limited 100
S&E Wind Energy Limited 100 BF33C LHF Solar Limited 100
Arena Capital Partners Limited 100 AR006 GF Solar Limited 100
Boston RE Ltd 100 Whitton Solar Limited 100
DC21 Earth SPV Limited 100 BF16D BHF Solar Limited 100
E5 Energy Limited 100 BF33E BHF Solar Limited 100
E6 Energy Limited 100 Twineham Energy Limited 60
E7 Energy Limited 100 Sheepwash Lane Energy Barn Limited 100
Whitehouse Farm Energy Barn
Hallmark Powergen 3 Limited 100 Limited 100
Warren Wind Limited 100 Bluefield Durrants GmBH 100
Wind Energy Three Limited 100 Trickey Warren Solar Limited 100
Lightning 1 Energy Park Limited 100 LPF UK Equityco Limited 100
Abbots Ann Farm Solar Park Limited 100 LPF UK Solar Limited 100
Canada Farm Solar Park Limited 100 LPF Kinetica UK Limited 100
Crockbaravally Wind Holdco Limited 100 Kinetica 846 Limited 100
Crockbaravally Wind Farm Limited 100 Kinetica 868 Limited 100
Dayfields Solar Limited 100
Farm Power Apollo Limited 100
Freathy Solar Park Limited 100
IREEL FIT TopCo Limited 100
IREEL FIT HoldCo Limited 100
IREEL Wind TopCo Limited 100
IREEL Solar HoldCo Limited 100
IREL Solar HoldCo Limited 100
Ladyhole Solar Limited 100
Morton Wood Solar Limited 100
Nanteague Solar Limited 100
Newton Down Wind HoldCo Limited 100
Newton Down Windfarm Limited 100
Padley Wood Solar Limited 100
Peel Wind Farm (Sheerness) Limited 100
Port of Sheerness Wind Farm
Limited 100
Sandys Moor Solar Limited 100
St Johns Hill Wind Holdco Limited 100
St Johns Hill Wind Limited 100
8. Trade and other receivables
31 December 2022 30 June 2022
GBP'000 GBP'000
Current assets
Monitoring fees receivable (see Note 4) 1,272 834
Other receivables 3 43
Prepayments - 5
1,275 882
================= =============
There are no material past due or impaired receivable balances
outstanding at the period end, the probability of default of BSIFIL
and BR1 was considered low and so no allowance has been recognised
based on 12-month expected credit loss as any impairment would be
insignificant.
The Board considers that the carrying amount of all receivables
approximates to their fair value.
9. Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Company and
short term bank deposits held with maturities of up to three
months. The carrying amounts of these assets approximate their fair
value.
10. Other payables and accrued expenses
31 December 2022 30 June 2022
GBP'000 GBP'000
Current liabilities
Investment advisory fees (see Note 14) 349 121
Administration fees 146 204
Directors' Fees (see Note 14) 75 60
Audit fees 50 95
Other payables 55 10
675 490
================= =============
The Company has financial risk management policies in place to
ensure that all payables are paid within the agreed credit period.
The Board considers that the carrying amount of all payables
approximates to their fair value.
11. Earnings per share
Six months ended Six months ended
31 December 2022 31 December 2021
Profit attributable to Shareholders of the Company GBP37,642,084 GBP53,699,532
Weighted average number of Ordinary Shares in issue 611,452,217 485,902,235
Basic and diluted earnings from continuing operations and profit for the period
(pence per
share) 6.16 11.05
----------------- -----------------
12. Share capital
The authorised share capital of the Company is represented by an
unlimited number of Ordinary Shares of no par value which, upon
issue, the Directors may designate into such classes and denominate
in such currencies as they may determine.
Six months ended Year ended
Share capital 31 December 2022 30 June 2022
Number of Number of
Ordinary Shares Ordinary Shares
Opening balance 611,452,217 406,999,622
Shares issued for cash - 204,452,595
Closing balance 611,452,217 611,452,217
================== =================
Six months ended Year ended
Shareholders' equity 31 December 2022 30 June 2022
GBP'000 GBP'000
Opening balance 858,391 471,425
Ordinary Shares issued for cash - 255,100
Share issue costs - (4,506)
Dividends paid (25,314) (38,201)
Total comprehensive income 37,642 174,573
Closing balance 870,719 858,391
================== ==============
Dividends declared and paid in the period are disclosed in Note
13.
Rights attaching to shares
The Company has a single class of Ordinary Shares which are
entitled to dividends declared by the Company. At any General
Meeting of the Company each ordinary Shareholder is entitled to
have one vote for each share held. The Ordinary Shares also have
the right to receive all income attributable to those shares and
participate in dividends made and such income shall be divided pari
passu among the holders of Ordinary Shares in proportion to the
number of Ordinary Shares held by them.
Retained earnings
Retained earnings comprise of accumulated retained earnings as
detailed in the unaudited condensed statement of changes in
equity.
13. Dividends
On 2 August 2022, the Board declared a third interim dividend of
GBP12,534,770, in respect of the year ended 30 June 2022 , equating
to 2.05pps (third interim dividend in respect of the year ended 30
June 2021: 2.00pps), which was paid on 31 August 2022 to
Shareholders on the register on 12 August 2022.
On 30 September 2022, the Board approved a fourth interim
dividend of GBP12,779,351 in respect of the year ended 30 June
2022, equating to 2.09pps (fourth interim dividend in respect of
the year ended 30 June 2021: 2.00pps), which was paid on 4 November
2022 to Shareholders on the register on 14 October 2022.
Post period end, on 23 January 2023, the Board declared its
first interim dividend of GBP12,840,497, in respect of year ending
30 June 2023, equating to 2.10pps (first interim dividend in
respect of the year ended 30 June 2022: 2.03pps), which will be
paid on 3 March 2023 to Shareholders on the register on 3 February
2023.
14. Related Party Transactions and Directors' Remuneration
In the opinion of the Directors, the Company has no immediate or
ultimate controlling party.
The total Directors' fees expense for the period amounted to
GBP136,965 (31 December 2021: GBP122,439 ) of which GBP74,760 was
outstanding at 31 December 2022 (30 June 2022: GBP59,750).
Remuneration paid to each Director is as follows:
31 December 2022 31 December 2021
GBP'000 GBP'000
John Scott 24 20
Michael Gibbons 10 N/A
Paul Le Page 26 23
John Rennocks 32 31
Meriel Lenfestey 23 20
Elizabeth Burne 22 9
Laurence McNairn N/A 20
----------------- -----------------
137 123
================= =================
The number of Ordinary Shares held by each Director is as
follows:
31 December 2022 31 December 2021
John Scott* 625,619 512,436
Michael Gibbons - N/A
Paul Le Page 35,000 35,000
John Rennocks* 320,388 316,011
Meriel Lenfestey 7,693 -
Elizabeth Burne 15,000 -
Laurence McNairn N/A 441,764
1,003,700 1,305,211
================= =================
*Includes shares held by PCAs.
John Scott and John Rennocks are Directors of BR1. Neil Wood and
James Armstrong, who are partners of the Investment Adviser, are
also Directors of BSIFIL and BR1.
Fees paid during the period by SPVs to BSL, a company which has
the same ownership as that of the Investment Adviser totalled
GBP1,971,264 (31 December 2021: GBP1,489,243).
Fees paid during the period by SPVs to BOL, a company which has
the same ownership as that of the Investment Adviser totalled
GBP3,706,826 (31 December 2021: GBP2,168,452).
Fees paid during the period by SPVs to BRD, a company which has
the same ownership as that of the Investment Adviser, totalled
GBP379,295 (31 December 2021: GBP200,396).
Under the terms of the Investment Advisory Agreement, the
Investment Adviser is entitled to a base fee. The base fee is
payable quarterly in arrears in cash, at a rate equivalent to 0.80%
per annum of the NAV up to and including GBP750,000,000, 0.75% per
annum of the NAV above GBP750,000,000 and up to and including
GBP1,000,000,000 and 0.65% per annum of the NAV above
GBP1,000,000,000. The base fee will be calculated on the NAV
reported in the most recent quarterly NAV calculation as at the
date of payment.
The Company, BSIFIL's and BR1's investment advisory fees for the
period amounted to GBP3,650,104 (31 December 2021: GBP2,420,685) of
which GBP774,179 (30 June 2022: GBP494,485) was outstanding at the
period end and is to be settled in cash. The investment advisory
fees for the period attributable to the Company amounted to
GBP397,329 (31 December 2021: GBP235,817) of which GBP349,022 (30
June 2022: GBP121,549) was outstanding at the period end.
The Company's loan monitoring fee income for the period, due
from its subsidiary BR1, amounted to GBP437,500 (31 December 2021:
GBP407,517) of which GBP1,271,387 was outstanding at the period end
(30 June 2022: GBP833,887).
15. Risk Management Policies and Procedures
As at 31 December 2022 there has been no change to financial
instruments risk to those described in the financial statements of
30 June 2022.
16. Subsequent events
On 23 January 2023, the Board declared its first interim
dividend of GBP12,840,497, in respect of the year ending 30 June
2023, equating to 2.10pps (first interim dividend in respect of the
year ended 30 June 2022: 2.03pps), which will be paid on 3 March
2023 to Shareholders on the register on 3 February 2023.
On 22 February 2023, John Rennocks, who since the Company's
launch in 2013 served as Chair until 29 November 2022 and then
served as non-executive director, retired from the Board. The
Company extends its thanks to Mr Rennocks for his hard work and
dedication during his time in office. His input has been invaluable
and the Company wishes him well in his retirement.
Glossary of Defined Terms
Administrator means Ocorian Administration (Guernsey)
Limited
AGM means the Annual General Meeting
AIC means the Association of Investment Companies
AIC Code means the Association of Investment Companies Code of
Corporate Governance
AIF means Alternative Investment Fund
AIFM means Alternative Investment Fund Manager
AIFMD means the Alternative Investment Fund Management
Directive
Articles means the Memorandum of 29 May 2013 as amended and the
Articles of Incorporation as adopted by special resolution on 7
November 2016.
Auditor means KPMG Channel Islands Limited (see KPMG)
Aviva Investors means Aviva Investors Limited
BEIS means the Department for Business, Energy & Industrial
Strategy
BEPS means Base erosion and profit shifting
Bluefield means Bluefield Partners LLP
Bluefield Group means Bluefield Partners LLP and Bluefield
Companies
BOL means Bluefield Operations Limited
Board means the Directors of the Company
BR1 means Bluefield Renewables 1 Ltd being the only direct
subsidiary of the Company
BRD means Bluefield Renewable Developments Limited
Brexit means departure of the UK from the EU
BSIF means Bluefield Solar Income Fund Limited
BSIFIL means Bluefield SIF Investments Limited
BSL means Bluefield Asset Management Services Limited
BSUoS means Balancing Services Use of System charges: costs set
to ensure that network companies can recover their allowed revenue
under Ofgem price controls
Business days means every official working day of the week,
generally Monday to Friday excluding public holidays
CAGR means compound annual growth rate
Calculation Time means the Calculation Time as set out in the
Articles of Incorporation
CCC means Committee on Climate Change
CfD means Contract for Difference
Company means Bluefield Solar Income Fund Limited (see BSIF)
Companies Law means the Companies (Guernsey) Law 2008, as
amended (see Law)
Cost of debt means the blended cost of debt reflecting fixed and
index-linked elements
CO2e means Carbon Dioxide emissions
C Shares means Ordinary Shares approved for issue at no par
value in the Company
CSR means Corporate Social Responsibility
CP means Compliance Period
CPIH means Consumer Price Index including owner occupiers'
housing costs
DCF means Discounted Cash Flow
DECC means the Department of Energy and Climate Change
Defect Risk means that there is an over-reliance on limited
equipment manufacturers which could lead to large proportions of
the portfolio suffering similar defects
Directors' Valuation means the gross value of the SPV
investments held by BSIFIL, including their holding companies
DNO means Distribution Network Operator
DSCR means Long Term Debt Service Cover Ratio calculated as net
operating income as a multiple of debt obligations due within one
year
DTR means the Disclosure Guidance and Transparency Rules of the
UK's Financial Conduct Authority
EBITDA means earnings before interest, tax, depreciation and
amortisation
EGM means Extraordinary General Meeting
EIS means Enterprise Investment Scheme
EPC means Engineering, Procurement & Construction
EPS means Earning per share
ESG means Environmental, Social and Governance
EU means the European Union
EV means enterprise valuation
FAC means Final Acceptance Certificate
FATCA means the Foreign Account Tax Compliance Act
Financial Statements means the unaudited condensed interim
financial statements
FiT means Feed-in Tariff
GAV means Gross Asset Value on investment basis including debt
held at SPV level
GDPR means General Data Protection Regulation
GFSC means the Guernsey Financial Services Commission
GHG means greenhouse gas
GHG Protocol supplies the world's most widely used greenhouse
gas accounting standards
Group means Bluefield Solar Income Fund Limited, Bluefield
Renewables 1 Limited and its subsidiaries
Guernsey Code means the Guernsey Financial Services Commission
Finance Sector Code of Corporate Governance
GWh means Gigawatt hour
GWp means Gigawatt peak
IAS means International Accounting Standard
IASB means the International Accounting Standards Board
IFRS means International Financial Reporting Standards as
adopted by the EU
Investment Adviser means Bluefield Partners LLP
IPEV Valuation Guidelines means the International Private Equity
and Venture Capital Valuation Guidelines
IPO means initial public offering
IRR means Internal Rate of Return
IVSC means The International Valuation Standards Council
KPI means Key Performance Indicators
KPMG means KPMG Channel Islands Limited (see Auditor)
kW means Kilowatt (a unit of power equal to one thousand
watts)
kWh means Kilowatt hour
kWp means Kilowatt peak
Law means Companies (Guernsey) Law, 2008 as amended (see
Companies Law)
LCOE means Levelised Cost of Electricity: average unit cost of
electricity over the lifetime of a generating asset expressed on a
net present cost basis
LD means liquidated damages
LIBOR means London Interbank Offered Rate
Listing Rules means the set of FCA rules which must be followed
by all companies listed in the UK
LSE means London Stock Exchange plc
LTF agreement means Long Term Financing agreement with Aviva
Investors
Macquarie means Macquarie Bank Limited
Main Market means the main securities market of the London Stock
Exchange
Mutualisation Rebate means the additional payments made when a
shortfall occurs if a supplier is unable to meet its obligation
under the RO Buy-Out Scheme
MW means Megawatt (a unit of power equal to one million
watts)
MWh means Megawatt hour
MWp means Megawatt peak
NatWest means NatWest International plc
NAV means Net Asset Value as defined in the prospectus
NMPI means Non-mainstream Pooled Investments and Special Purpose
Vehicles and the rules around their financial promotion
NPPR means the AIFMD National Private Placement Regime
O&M means Operation and Maintenance
Official List means the Premium Segment of the UK Listing
Authority's Official List
Ofgem means Office of Gas and Electricity Markets
Ordinary Shares means the issued ordinary share capital of the
Company, of which there is only one class
Outage Risk means that a higher proportion of large capacity
assets hold increased exposure to material losses due to
curtailments and periods of outage
P10 means Irradiation estimate exceeded with 10% probability
P90 means Irradiation estimate exceeded with 90% probability
PCA means Persons Closely Associated
PPA means Power Purchase Agreement
pps means pence per Ordinary Share
PR means Performance Ratio (the ratio of the actual and
theoretically possible energy outputs)
PV means Photovoltaic
RBSI means Royal Bank of Scotland International plc
RCF means Revolving Credit Facility
RO Scheme means the Renewable Obligation Scheme which is the
financial mechanism by which the UK government incentivises the
deployment of large-scale renewable electricity generation by
placing a mandatory requirement on licensed UK electricity
suppliers to source a specified and annually increasing proportion
of electricity they supply to customers from eligible renewable
sources or pay a penalty
ROC means Renewable Obligation Certificates
ROC recycle means the payment received by generators from the
redistribution of the buy-out fund. Payments are made into the
buy-out fund when suppliers do not have sufficient ROCs to cover
their obligation
RPI means the Retail Price Index
Santander UK means Santander UK plc
SASB means Sustainability Accounting Standards Board
SDG means the United Nations Sustainable Development Goals
SFDR means Sustainable Finance Disclosure Regulation
SONIA means Sterling Over Night Indexed Average
SPA means Share Purchase Agreement
SPV means a Special Purpose Vehicle which hold the Company's
investment portfolio of underlying operating assets
Sterling means the Great British pound currency
TISE means The International Stock Exchange (based in the
Channel Islands)
TWh means Terawatt hour
UK means the United Kingdom of Great Britain and Northern
Ireland
UK Code means the UK Corporate Governance Code
UK FCA means the UK Financial Conduct Authority
UNGC means the United Nations Global Compact
United Nations Principles for Responsible Investment means an
approach to investing that aims to incorporate environmental,
social and governance factors into investment decisions, to better
manage risk and generate sustainable, long term returns.
Alternative Performance Measures (Unaudited)
APM Definition Purpose Calculation
Total return The percentage A key measure The change in NAV
increase/(decrease) of the success for the period plus
in NAV, inclusive of the Investment any dividends paid
of dividends paid, Adviser's investment divided by the initial
in the reporting strategy. NAV.
period. (142.40-140.39+2.05+2.09)/140.39=4.4%
------------------------ -------------------------- ----------------------------------------
Total Shareholder The percentage A measure of the The change in share
Return increase/(decrease) return that could price for the period
in share price, have been obtained plus any dividends
inclusive of dividends by holding a share paid divided by
paid, in the reporting over the reporting the initial share
period. period. price.
(136.0-131.0+2.05+2.09)/131.0=7.0%
The measure excludes
transaction costs.
------------------------ -------------------------- ----------------------------------------
Total Dividends This is the sum A measure of the The linear sum of
Declared of the dividends income that the each dividend declared
in Period that the Board company has paid in the reporting
has declared relating to shareholders period.
to the reporting that can be compared
period. to the Company's
target dividend.
------------------------ -------------------------- ----------------------------------------
Underlying Total net income A measure to link Total income of
Earnings of the Company's the underlying the Company's portfolio
investment portfolio. financial performance minus Group operating
of the operational costs minus Group
projects to the debt costs.
dividends declared
and paid by the
Company.
------------------------ -------------------------- ----------------------------------------
Market Capitalisation The total value This is a key The price per share
of the Company's indicator of the multiplied by the
issued share capital. Company's liquidity. number of shares
in issue.
------------------------ -------------------------- ----------------------------------------
NAV per The Company's A measure of the The net assets attributable
Ordinary closing NAV per value of one Ordinary to Ordinary Shares
Share share at the period Share. on the statement
end. of financial position
(GBP870.7m) divided
by the number of
ordinary shares
in issue (611,452,217)
as at the calculation
date.
------------------------ -------------------------- ----------------------------------------
Sale of The total proportion A measure to understand The amount of revenue
Electricity of revenue generated the proportion attributable to
by the Company's of revenue attributable electricity sales
portfolio that to sales of electricity. divided by the total
is attributable revenue generated
to electricity by the Company's
sales. portfolio, expressed
as a percentage.
------------------------ -------------------------- ----------------------------------------
Total Revenue Total net income A measure to outline Total income of
of the Company's the total revenue the Company's portfolio
investment portfolio. of the portfolio owned for the period.
on per MW basis.
------------------------ -------------------------- ----------------------------------------
PPA Revenue Revenue generated A measure to outline Total revenue from
through PPAs. the revenue earned all power price
by the portfolio sales during the
from power sales. period from the
Company's portfolio.
------------------------ -------------------------- ----------------------------------------
Regulated Revenue generated A measure to outline Total revenue from
Revenue from the sale the revenue earned all subsidy income
of FiTs and ROCs. by the portfolio earned during the
from government period from the
subsidies. Company's portfolio.
------------------------ -------------------------- ----------------------------------------
Ongoing The recurring A measure of the Calculated in accordance
charges costs that the minimum gross with the AIC methodology
ratio Company and BR1 profit that the detailed in the table
has incurred during Company needs below.
the period excluding to produce to
performance fees make a positive
and one off legal return for Shareholders.
and professional
fees expressed
as a percentage
of the Company's
average NAV for
the period.
Weighted A relative indicator A measure of the Total Regulated Revenue
Average of the regulatory Company's portfolio received by the portfolio
ROC revenues within earnings as a divided by the product
a renewable portfolio. proportion of of the current market
its assets. value of a ROC and
the annual generation
capacity of the portfolio.
------------------------ -------------------------- ------------------------------
Weighted The average operational A measure of the The sum of the product
Average life of the Company's Company's progress of each plant's operational
Life portfolio. in extending the capacity in MW and
life of its portfolio the plant's expected
beyond the end life divided by the
of the subsidy total portfolio capacity
regime in 2036. in MW.
------------------------ -------------------------- ------------------------------
Directors' The gross value An estimate of A reconciliation of
Valuation of the SPV Investments the sum that would the Directors' Valuation
held by BR1, including be realised if to Financial assets
their holding the Company's at fair value through
companies minus portfolio was profit and loss is
Project level sold on a willing shown in Note 7 of
debt. buyer, willing the financial statements.
seller basis.
------------------------ -------------------------- ------------------------------
Gross Asset The Market Value A measure of the The total assets attributable
Value of all Assets total value of to Ordinary Shares
within the Company. the Company's on the Statement of
Assets. Financial Position.
------------------------ -------------------------- ------------------------------
Total Outstanding The total outstanding A measure that The sum of the Sterling
Debt balances of all is used to establish equivalent values
debt held within the Company's of all loans held
the Company and level of gearing. within the Company.
its subsidiaries.
------------------------ -------------------------- ------------------------------
Ongoing Charges Six month period to 31 December 2022
The Company BR1 Total
GBP'000 GBP'000 GBP'000
----------------------------- ---------------- ------------ ---------
Fees to Investment
Adviser 397 3,253 3,650
Legal and professional
fees* 160 47 207
Administration fees 289 - 289
Directors' remuneration 137 7 144
Audit fees 53 10 63
Other ongoing expenses 142 13 155
Total ongoing expenses 1,178 3,330 4,508
---------------- ------------ ---------
Average NAV 871,051
Annualised Ongoing Charges (using AIC methodology) 1.04%
---------
* Includes non-audit fee (interim review)
General Information
Board of Directors (all non-executive)
John Scott (Chair and Chair of Nomination Committee)
Elizabeth Burne (Chair of Management Engagement and Service
Providers Committee)
Michael Gibbons CBE (Senior Independent Director) (appointed
7 October 2022)
Meriel Lenfestey (Chair of Environmental, Social and Governance
Committee)
Paul Le Page (Chair of Audit and Risk Committee)
John Rennocks (retired 22 February 2023)
Registered Office Investment Adviser
PO Box 286 Bluefield Partners LLP
Floor 2, Trafalgar Court 6 New Street Square
Les Banques, St Peter Port London, EC4A 3BF
Guernsey, GY1 4LY
Administrator, Company Secretary Sponsor, Broker and Financial
and Designated Manager Adviser
Ocorian Administration (Guernsey) Numis Securities Limited
Limited 45 Gresham Street
Floor 2, Trafalgar Court London, EC2V 7BF
Les Banques, St Peter Port
Guernsey, GY1 4LY
Independent Auditor Legal Advisers to the Company
KPMG Channel Islands Limited (as to English law)
Glategny Court, Glategny Esplanade Norton Rose Fulbright LLP
St Peter Port 3 More London Riverside
Guernsey, GY1 1WR London, SE1 2AQ
Registrar Legal Advisers to the Company
Link Market Services (Guernsey) (as to Guernsey law)
Limited Carey Olsen
Mont Crevelt House PO Box 98, Carey House
Bulwer Avenue, St Sampson Les Banques, St Peter Port
Guernsey, GY2 4LH Guernsey, GY1 4BZ
Principal Bankers
Receiving Agent and UK Transfer NatWest International plc
Agent 35 High Street
Link Asset Services Limited St Peter Port
The Registry Guernsey, GY1 4BE
34 Beckenham Road, Beckenham
Kent, BR3 4TU
[1] Based on generation data aligned with the appropriate
Government CO2e conversion factor
[2] Based on Ofgem's Typical Domestic Consumption Values
[3] Please refer to the Company's sustainability disclosures for
further information, available on its website: bluefieldsif.com
[4]
https://www.londonstockexchange.com/raise-finance/equity/green-economy-mark
[5] https://tisegroup.com/sustainable
[6]
https://www.gfsc.gg/industry-sectors/investment/guernsey-green-fund
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IR BDLLLXLLZBBF
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February 28, 2023 02:00 ET (07:00 GMT)
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