TIDMNESF
RNS Number : 4303W
NextEnergy Solar Fund Limited
27 April 2016
27 April 2016
NextEnergy Solar Fund Limited ("NESF" or the "Company")
2015/16 Year-End Update and Move to Quarterly Dividends
Operating highlights
-- Portfolio installed capacity increased 90% to 414MWp spread
across 33 projects* (2015: 217MWp and 16 projects)
-- Invested capital up 89% to GBP480.1m* (2015: GBP251.6m)
-- Energy generation outperformance of 4.1% versus budget with
irradiation 0.4% above forecasts
Financial highlights
-- Total Financial debt including acquisition commitments of
GBP216.6m (2015: no financial debt)
-- Long-term fully-amortising debt of GBP100.4m and GBP116.2m of
short-term facilities drawn*
-- Final dividend of 3.125p per share expected to be declared in
June 2016; on track for a full year dividend of 6.25p per share
-- Shift to quarterly dividends; first quarterly dividend to be paid in September 2016
NESF, the specialist investment company that invests in
operating solar power plants in the UK, announces an operating
update following the end of its financial year on 31 March 2016 and
a move to a quarterly dividend payment schedule.
The Company will now pay dividends to shareholders on a
quarterly basis, starting from the first quarter of the Company's
current 2016/17 financial year. The first quarterly dividend will
cover the period from April to June 2016, and is expected to be
declared in September 2016. The second quarterly dividend will
cover the period July to September 2016, and is expected to be
declared in December 2016. The subsequent quarterly dividends will
follow accordingly.
For the year ended 31 March 2016, NESF expects to declare a
second and final dividend of 3.125p per share in June 2016. When
added to the first interim dividend of 3.125p, this represents a
total yearly dividend of 6.25p per share. The Company intends to
increase subsequent dividends in line with the Retail Price Index
("RPI") on a yearly basis, which amounts to 1.0% for the 2016/17
dividend.
At year-end, the Company's total portfolio amounted to 33 solar
plants totalling 414MWp with an invested capital of GBP480.1m* (31
March 2015: 16 projects totalling c.217MWp and invested capital of
GBP251.6m). NESF's portfolio of operating solar plants comprised 30
projects totalling 396 MWp with an invested capital of GBP461.2m.
In addition, at year-end the Company had secured three plants via
binding contracts: Ellough Phase 2 (8.0MWp, investment value
GBP8.0m), Hall Farm (5.0MWp, investment value GBP5.0m) and Green
Farm (5.0MWp, investment value GBP5.8m). Post-period end, the
Company completed the Hall Farm acquisition. In addition NESF
expects to complete the Ellough Phase 2 and Green Farm acquisitions
before the end of the first quarter of the current financial
year.
The portfolio has generated electricity significantly above
budget for the 2015/16 financial year. Total energy generated was
4.1% in excess of targets while solar irradiation recorded across
the portfolio was 0.4% above forecasts (2015: 4.8% higher energy
generation and 0.4% lower irradiation versus forecasts across the
portfolio). The continued portfolio outperformance underlines the
investment skills of the Company's Investment Advisor, NextEnergy
Capital, and the asset management capabilities of NESF's long-term
operating asset management service provider, WiseEnergy.
At 31 March 2016, inclusive of the commitments made for
acquisitions, the Company had drawn financial debt totalling
GBP216.6m* (2015: no financial debt). Of the total financial debt,
GBP100.4m was long-term fully amortising debt, while the remainder
of GBP116.2m was drawn under the Company's short-term credit
facilities. NESF expects to increase its credit facilities
marginally in the first quarter of the current financial year and
increase the portion of long-term amortising debt in the portfolio
as it refinances its short-term debt facilities.
The Company expects to publish its annual results for the year
ending 31 March 2016 on or around June 27, 2016.
NESF has been informed by NextEnergy Capital Limited ("NEC"),
the Investment Advisor, that NEC has started acquiring shares in
the Company as per its earlier communication.
Kevin Lyon, Chairman of NESF, commented:
"NESF has made strong progress during the past year, more than
doubling our portfolio of solar plants and increasing installed
capacity by 90%.* We continue to acquire assets below average
market prices, demonstrating our team's capital deployment and
investment abilities.
"We are pleased to continue an unbroken record of operating
outperformance since our IPO . Energy generation outperformed
forecasts by 4.1%, an impressive result given largely stable
irradiation.
"Our stable capital structure has benefitted from the
availability of financial debt to the solar sector and our
attractive, long-term, fully-amortising debt facilities contribute
to improving financial returns and dividend cover going
forward.
"We are looking forward to growing the Company further during
the current year."
Notes:
* Including the Radius acquisition announced on 5 April 2016 and
completed.
For further information:
NextEnergy Capital Limited 020 3239 9054
Michael Bonte-Friedheim
Aldo Beolchini
Cantor Fitzgerald Europe 020 7894 7667
Sue Inglis
Shore Capital 020 7408 4090
Bidhi Bhoma
Anita Ghanekar
Macquarie Capital (Europe)
Limited 020 3037 2000
Ken Fleming
Nick Stamp
MHP Communications 020 3128 8100
Andrew Leach
Jamie Ricketts
Gina Bell
Notes to Editors:
NextEnergy Solar Fund (NESF)
NESF is a specialist investment company that invests in
operating solar power plants in the UK. Its objective is to secure
attractive shareholder returns through RPI-linked dividends and
long-term capital growth. The Company achieves this by acquiring
solar power plants on agricultural, industrial and commercial
sites.
NESF has raised equity proceeds of GBP285.4m since its initial
public offering on the main market of the London Stock Exchange in
April 2014. It also has credit facilities of GBP223.1m in place
(Macquarie: GBP100m, MIDIS: GBP55.0m, Bayersiche Landesbank:
GBP45.4m and NIBC: GBP22.7m).
NESF is differentiated by its access to NextEnergy Capital Group
(NEC Group), its Investment Manager, which has a strong track
record in sourcing, acquiring and managing operating solar assets.
WiseEnergy is NEC Group's specialist operating asset management
division, providing solar asset management, monitoring and other
services to over 1,200 utility-scale solar power plants with an
installed capacity in excess of 1.5 GW.
Further information on NESF, NEC Group and WiseEnergy is
available at www.nextenergysolarfund.com, www.nextenergycapital.com
and www.wise-energy.eu.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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