TIDMUKW

RNS Number : 9749T

Greencoat UK Wind PLC

28 July 2022

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, NEW ZEALAND, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN.

28 July 2022

GREENCOAT UK WIND PLC

(the "Company")

Half year results to 30 June 2022, Net Asset Value and Dividend Announcement

Greencoat UK Wind PLC today announces the half year results for the period to 30 June 2022.

Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in UK wind farms. The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow.

The Company provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.

Highlights

   --    The Group's investments generated 2,175GWh of renewable energy. 
   --    Net cash generation (Group and wind farm SPVs) was GBP328.8 million. 

-- Acquisition of Twentyshilling increased the portfolio to 44 operating wind farm investments and net generating capacity to 1,460MW as at 30 June 2022.

-- Agreement to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm, with the transaction expected to complete in Q3 2022.

   --    The Company declared total dividends of 3.86 pence per share with respect to the period. 
   --    GBP900 million outstanding borrowings as at 30 June 2022, equivalent to 20 per cent of GAV. 

Commenting on today's results, Shonaid Jemmett-Page, Chairman of Greencoat UK Wind, said :

"We are pleased to report another solid performance, with continued strong cash generation as we deliver against our simple, low risk strategy and build on our well-established track record.

"During the period we acquired Twentyshillling wind farm and were delighted to announce our investment in Hornsea 1, the world's largest offshore wind farm. Upon completion of this investment in Q3 2022, we will have grown our portfolio to 45 operating wind farms and increased our net generating capacity to over 1.6GW, which underlines the size and scale the Group has attained since listing in 2013.

"We continue to see an attractive pipeline of investments, both onshore and offshore, and remain well positioned to deliver more value-accretive acquisitions and extend our track record of strong shareholder returns."

Net Asset Value

The Company announces that its unaudited Net Asset Value as at 30 June 2022 is GBP3,559.7 million (153.6 pence per share). The Company's June 2022 Factsheet is available on the Company's website, www.greencoat-ukwind.com .

Dividend Announcement

The Company also announces a quarterly dividend of 1.930 pence per share in respect of the period from 1 April 2022 to 30 June 2022.

Dividend Timetable

   Ex-dividend date:        11 August 2022 
   Record date:               12 August 2022 
   Payment date:             26 August 2022 

Key Metrics

As at 30 June 2022:

 
 Market capitalisation                            GBP3,566.8 million 
 Share price                                             153.9 pence 
 Dividends with respect to the period                GBP89.5 million 
 Dividends with respect to the period per share           3.86 pence 
 GAV                                              GBP4,459.7 million 
 NAV                                              GBP3,559.7 million 
 NAV per share                                           153.6 pence 
 

Details of the conference call for analysts and investors:

There will be a conference call at 9.00am today for analysts and investors. To register for the event please notify Headland, either by email to ukwind@headlandconsultancy.com or by telephone on +44 (0)20 3805 4822.

Presentation materials will be posted on the Company's website, www.greencoat-ukwind.com , from 9.00am.

For further information, please contact:

   Greencoat UK Wind PLC                  020 7832 9400 

Stephen Lilley

Laurence Fumagalli

Tom Rayner

   Headland                                              020 3805 4822 

Stephen Malthouse

Rob Walker

All capitalised terms are defined in the list of defined terms below unless separately defined.

Chairman's Statement

I am pleased to present the Half Year Report of Greencoat UK Wind PLC for the six months ended 30 June 2022.

Performance

Portfolio generation for the period was 2,175GWh, 1 per cent above budget. Net cash generated by the Group and wind farm SPVs was GBP328.8 million, above budget due to high power prices, primarily reflecting high gas prices, providing cover of 3.8x dividends paid during the period.

Dividends and Returns

The Company's aim is to provide investors with an attractive and sustainable dividend that increases in line with RPI inflation while preserving capital on a real basis. In line with its stated target of 7.72 pence per share for 2022, the Company has paid a quarterly dividend of 1.93 pence per share with respect to Q1 2022 and has declared a dividend of the same amount per share with respect to Q2 2022, giving a total of 3.86 pence per share for the period (compared to 3.59 pence per share for the first half of 2021). NAV per share increased in the period from 131.7 pence per share (ex-dividend) on 31 December 2021 to 151.7 pence per share (ex-dividend) on 30 June 2022, reflecting an increase in forward power prices over the period 2022-2025 and an increase in short term inflation.

Investment

During the period, the Group invested GBP50 million to acquire the Twentyshilling wind farm from Statkraft, increasing net generating capacity to 1,460MW. During the period, the Group also provided a further GBP18 million of construction finance to the Kype Muir Extension wind farm project (target commissioning in Q4 2022).

In Q3 2022, we expect to complete on our GBP400 million investment in the Hornsea 1 wind farm, through reinvestment of cash flow alongside a modest utilisation of our revolving credit facility, increasing generating capacity to 1,610MW.

Gearing

As at 30 June 2022, the Group had GBP900 million of debt outstanding, equating to 20 per cent of GAV (limit 40 per cent).

Debt outstanding comprised GBP900 million of fixed rate term debt at Company level. There was zero outstanding under the Company's GBP600 million revolving credit facility (the GBP250 million balance at the beginning of the period having been refinanced with GBP200 million AXA term debt and GBP50 million repaid from excess cash flow during the period).

Principal Risks and Uncertainties

The principal risks and uncertainties affecting the Group were identified in detail in the Company's Annual Report to 31 December 2021, summarised as follows:

-- dependence on the Investment Manager;

-- financing risk; and

-- risk of investment returns becoming unattractive.

Also, the principal risks and uncertainties affecting the investee companies were identified in detail in the Company's Annual Report to 31 December 2021, summarised as follows:

-- changes in government policy on renewable energy;

-- a decline in the market price of electricity;

-- risk of low wind resource;

-- lower than expected asset life; and

-- health and safety and the environment.

The principal risks outlined above remain the most likely to affect the Group and its investee companies in the second half of the year.

Outlook

The Company is investing in a mature and growing market, and the Board believes that there should continue to be further opportunities for investments that are beneficial to shareholders. The Company will continue to maintain a strictly disciplined approach to acquisitions, only investing when it is considered to be in the interests of shareholders to do so.

The Board and Governance

The Board was pleased that the Company could hold its AGM in person for the first time in 3 years in April 2022. At the AGM, Willy Rickett retired and Lucinda Riches assumed the role of Senior Independent Director. I would like to thank Willy once again for his wisdom and service to the Company since 2013.

The Company and its Investment Manager also renewed the Investment Management Agreement, reducing the management fee on NAV above GBP3 billion.

Shonaid Jemmett-Page

Chairman

27 July 2022

Investment Manager's Report

Investment Portfolio

Operating portfolio as at 30 June 2022:

 
 
 Wind Farm               Turbines    Operator     PPA            Total   Ownership       Net 
                                                                    MW       Stake        MW 
----------------------  ----------  -----------  -------------  ------  ----------  -------- 
 Andershaw               Vestas      Statkraft    Statkraft       35.0        100%      35.0 
 Bicker Fen              Senvion     EDF          EDF             26.7         80%      21.3 
 Bin Mountain            GE          SSE          SSE              9.0        100%       9.0 
 Bishopthorpe            Senvion     BayWa        Axpo            16.4        100%      16.4 
 Braes of Doune          Vestas      BayWa        Erova           72.0        100%      72.0 
 Brockaghboy             Nordex      SSE          SSE             47.5        100%      47.5 
 Burbo Bank Extension    Vestas      Orsted       CFD            258.0       15.7%      40.4 
 Carcant                 Siemens     BayWa        Axpo             6.0        100%       6.0 
 Church Hill             Enercon     Energia      Energia         18.4        100%      18.4 
 Clyde                   Siemens     SSE          SSE            522.4       28.2%     147.3 
 Corriegarth             Enercon     BayWa        Centrica        69.5        100%      69.5 
 Cotton Farm             Senvion     BayWa        Sainsbury's     16.4        100%      16.4 
 Crighshane              Enercon     Energia      Energia         32.2        100%      32.2 
 Deeping St. 
  Nicholas               Senvion     EDF          EDF             16.4         80%      13.1 
                                     Natural 
 Douglas West            Vestas       Power       BT              45.0        100%      45.0 
 Drone Hill              Nordex      BayWa        Statkraft       28.6       51.6%      14.8 
 Dunmaglass              GE          SSE          SSE             94.0       35.5%      33.4 
 Earl's Hall 
  Farm                   Senvion     BayWa        Sainsbury's     10.3        100%      10.3 
 Glass Moor              Senvion     EDF          EDF             16.4         80%      13.1 
                                     Natural 
 Glen Kyllachy           Nordex       Power       Tesco           48.5        100%      48.5 
 Humber Gateway          Vestas      RWE          RWE            219.0       37.8%      82.8 
 Kildrummy               Enercon     BayWa        Sainsbury's     18.4        100%      18.4 
                                     Natural 
 Langhope Rig            GE           Power       Centrica        16.0        100%      16.0 
 Lindhurst               Vestas      RWE          RWE              9.0         49%       4.4 
 Little Cheyne 
  Court                  Nordex      RWE          RWE             59.8         41%      24.5 
 Maerdy                  Siemens     BayWa        Statkraft       24.0        100%      24.0 
 Middlemoor              Vestas      RWE          RWE             54.0         49%      26.5 
 North Hoyle             Vestas      RWE          Erova           60.0        100%      60.0 
 North Rhins             Vestas      BayWa        E.ON            22.0       51.6%      11.4 
 Red House               Senvion     EDF          EDF             12.3         80%       9.8 
 Red Tile                Senvion     EDF          EDF             24.6         80%      19.7 
 Rhyl Flats              Siemens     RWE          RWE             90.0      24.95%      22.5 
 Screggagh               Nordex      SSE          Energia         20.0        100%      20.0 
 Sixpenny Wood           Senvion     BayWa        Statkraft       20.5       51.6%      10.6 
 Slieve Divena           Nordex      SSE          SSE             30.0        100%      30.0 
 Slieve Divena 
  II                     Enercon     SSE          SSE             18.8        100%      18.8 
 Stronelairg             Vestas      SSE          SSE            227.7       35.5%      80.9 
 Stroupster              Enercon     BayWa        BT              29.9        100%      29.9 
 Tappaghan               GE          SSE          SSE             28.5        100%      28.5 
                                     Natural 
 Tom nan Clach           Vestas       Power       CFD             40.0         75%      30.0 
 Twentyshilling          Vestas      Statkraft    Statkraft       37.8        100%      37.8 
 Walney                  Siemens     Orsted       Total          367.2       25.1%      92.2 
 Windy Rig               Vestas      Statkraft    Statkraft       43.2        100%      43.2 
 Yelvertoft              Senvion     BayWa        Statkraft       16.4       51.6%       8.5 
----------------------  ----------  -----------  -------------  ------  ----------  -------- 
 Total                                                                               1,459.8 
 

Portfolio Performance

Portfolio generation for the six months ended 30 June 2022 was 2,175 GWh, 1 per cent above budget.

Notable issues affecting portfolio availability were:

-- several grid outages due to storms at Clyde, Kildrummy and other sites in January and February, with extended periods of downtime due to adverse weather conditions (no material damage);

   --    a blade failure at Windy Rig in January; 

-- long duration outages at Corriegarth due to generator issues and a shortage of skilled technicians;

-- various stops due to major component replacements at North Hoyle and Burbo Bank Extension; and

   --    various pitch motor exchanges and generator issues at Dunmaglass. 

In general, the portfolio performed well, in line with expectations.

Health, Safety and the Environment

Health and safety is of key importance to both the Company and the Investment Manager.

The Investment Manager is an active member of SafetyOn, the UK's leading health and safety focused organisation for the onshore wind industry. The Investment Manager also has its own health and safety forum, chaired by Stephen Lilley, where best practice is discussed and key learnings from incidents from across the industry are shared.

The Company has continued to give to local community funds and invest in a range of local environmental and social projects. In addition, we have been investigating ways to provide research funding to improve the sustainability of wind farms over the long term and are likely to start investing in a number of new initiatives shortly.

In the first half of 2022, the portfolio generated sufficient electricity to power 1.5 million homes and avoided CO(2) emission of approximately 0.9 million tonnes through the displacement of thermal generation.

Investment

On 24 June 2022, the Group acquired the 37.8MW Twentyshilling subsidy free wind farm from Statkraft for GBP49.6 million (commitment made in 2019).

During the period, the Group provided a further GBP18.2 million of construction finance to the Kype Muir Extension subsidy free wind farm project (target commissioning in Q4 2022). As at 30 June 2022, the Group's total investment in Kype Muir Extension (including accrued interest) was GBP29.3 million.

On 16 May 2022, the Group announced that it had agreed to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm from Global Infrastructure Partners ("GIP") for a total cash consideration (including cash and working capital) of approximately GBP400 million. The acquisition is expected to complete in Q3 2022. Hornsea 1 benefits from a 15 year CFD at a price of GBP175.25/MWh (real 2022) and is currently 50 per cent owned by Orsted and 50 per cent owned by GIP, with GIP's 50 per cent stake part funded by GBP2.9 billion of limited recourse debt. The Group's pro rata share of this limited recourse debt is GBP0.7 billion, giving a total enterprise value of GBP1.1 billion for the Group's net 12.5 per cent stake.

Gearing

As at 30 June 2022, the Group had GBP 900 million of debt outstanding, equating to 20 per cent of GAV (limit 40 per cent).

Debt outstanding comprised GBP900 million of fixed rate term debt at Company level. There was zero outstanding under the Company's GBP600 million revolving credit facility (the GBP250 million balance at the beginning of the period having been refinanced with GBP200 million AXA term debt and GBP50 million repaid from excess cash flow during the period).

Financial Performance

Power prices during the period were well above budget, primarily reflecting high gas prices. The average N2EX Day Ahead auction price was GBP 176.05 /MWh (H1 2021: GBP 68.45/MWh ).

Net cash generated by the wind farm SPVs was GBP 328.8 million and dividend cover for the period was 3.8 x.

Cash balances (Group and wind farm SPVs) increased by GBP 119.1 million to GBP 236.2 million.

 
 
                                                    For the six months ended 
 Group and wind farm SPV cash flows                             30 June 2022 
-------------------------------------------------  ------------------------- 
                                                                     GBP'000 
 
 Net cash generation (1)                                             328,847 
 Dividends paid                                                     (86,326) 
 
 Acquisitions (2)                                                   (70,386) 
 Acquisition costs                                                   (1,953) 
 
 Equity issuance                                                           - 
 Equity issuance costs                                                  (42) 
 
 Net repayment under debt facilities                                (50,000) 
 Upfront finance costs                                               (1,076) 
 
 Movement in cash (Group and wind farm SPVs)                         119,064 
 Opening cash balance (Group and wind farm SPVs)                     117,099 
-------------------------------------------------  ------------------------- 
 Closing cash balance (Group and wind farm SPVs)                     236,163 
 
 Net cash generation                                                 328,847 
 Dividends                                                            86,326 
 Dividend cover                                                         3.8x 
-------------------------------------------------  ------------------------- 
 

(1) Alternative Performance Measure as defined below.

(2) Includes GBP2,579k deferred consideration in relation to Windy Rig.

The following 2 tables provide further detail in relation to net cash generation of GBP 328.8 million:

 
                                    For the six months ended 
 Net Cash Generation - Breakdown                30 June 2022 
---------------------------------  ------------------------- 
                                                     GBP'000 
 Revenue                                             491,862 
 Operating expenses                                 (96,679) 
 Tax                                                (40,127) 
 Other                                               (1,582) 
---------------------------------  ------------------------- 
 Wind farm cash flow                                 353,474 
 
 Management fee                                     (14,928) 
 Operating expenses                                  (1,000) 
 Ongoing finance costs                              (10,545) 
 Other                                                 2,679 
---------------------------------  ------------------------- 
 Group cash flow                                    (23,794) 
 
 VAT (Group and wind farm SPVs)                        (833) 
 
 Net cash generation                                 328,847 
---------------------------------  ------------------------- 
 
 
                                                 For the six months 
 Net Cash Generation - Reconciliation to Net                  ended 
  Cash Flows from Operating Activities                 30 June 2022 
----------------------------------------------  ------------------- 
                                                            GBP'000 
 Net cash flows from operating activities (1)               309,426 
 Movement in cash balances of wind farm SPVs 
  (2)                                                        24,694 
 Repayment of shareholder loan investment (1)                 5,272 
 Finance costs (1)                                         (11,621) 
 Upfront finance costs (3)                                    1,076 
 Net cash generation                                        328,847 
----------------------------------------------  ------------------- 
 

(1) Consolidated Statement of Cash Flows.

(2) Note 8 to the financial statements.

(3) Note 12 to the financial statements.

Investment Performance

 
                                                  GBP'm 
                                               -------- 
 NAV at 31 December 2021                        3,093.7 
 Investment                                        70.4 
 Movement in portfolio valuation                  228.6 
 Movement in cash (Group and wind farm SPVs)      119.1 
 Movement in other relevant liabilities           (2.1) 
 Movement in Aggregate Group Debt                  50.0 
 NAV at 30 June 2022                            3,559.7 
---------------------------------------------  -------- 
 

The increase in the portfolio valuation of GBP 228.6 million equates to approximately 10 pence per share, which can be further broken down as follows: +13 pence from an increase in forecast power prices, +6 pence from an increase in inflation assumptions, -3 pence from an increase in the discount rate used in the DCF valuation and -6 pence attributable to depreciation and other assumption changes.

Total dividends of GBP 86.3 million were paid in the period.

Reconciliation of Statutory Net Assets to Reported NAV

 
 
                                       As at               As at 
                                30 June 2022    31 December 2021 
                                     GBP'000             GBP'000 
----------------------------  --------------  ------------------ 
 Operating portfolio               4,199,950           3,919,545 
 Construction portfolio               29,311              10,702 
 Cash (wind farm SPVs)               136,992             112,298 
----------------------------  --------------  ------------------ 
 Fair value of investments         4,366,253           4,042,545 
 Cash (Group)                         99,171               4,801 
 Other relevant liabilities          (5,738)             (3,647) 
----------------------------  --------------  ------------------ 
 GAV                               4,459,686           4,043,699 
 Aggregate Group Debt              (900,000)           (950,000) 
----------------------------  --------------  ------------------ 
 NAV                               3,559,686           3,093,699 
 Reconciling items                         -                   - 
----------------------------  --------------  ------------------ 
 Statutory net assets              3,559,686           3,093,699 
 
 Shares in issue               2,317,603,896       2,317,097,822 
 NAV per share (pence)                 153.6               133.5 
----------------------------  --------------  ------------------ 
 

NAV Sensitivities

NAV is equal to GAV less Aggregate Group Debt.

GAV is the sum of:

-- DCF valuations of the Group's investments;

-- cash (at Group and wind farm SPV level); and

-- other relevant assets and liabilities of the Group.

The DCF valuation of the Group's investments represents the largest component of GAV and the key sensitivities are considered to be the discount rate used in the DCF valuation and assumptions in relation to inflation, energy yield, power price and asset life.

The base case discount rate is a blend of a lower discount rate for fixed cash flows and a higher discount rate for merchant cash flows. The blended portfolio discount rate as at 31 December 2021 was 7.2 per cent. The blended portfolio discount rate as at 30 June 2022 has increased to 7.7 per cent, reflecting (i) a greater proportion of merchant cash flows and (ii) an increase in the underlying discount rate following an increase in relevant benchmark rate.

The DCF valuation is produced by discounting the individual wind farm cash flows on an unlevered basis. The equivalent levered discount rate would be approximately 2 per cent higher than the unlevered discount rate.

Base case long term inflation assumptions are 3.5 per cent to 2030 and 2.5 per cent thereafter for RPI and 2.5 per cent (all years) for CPI. Higher inflation assumptions are applied to 2022.

Base case energy yield assumptions are P 50 ( 50 per cent probability of exceedance) forecasts based on long term wind data and operational history. The P 90 ( 90 per cent probability of exceedance over a 10 year period) and P 10 ( 10 per cent probability of exceedance over a 10 year period) sensitivities reflect the future variability of wind and the uncertainty associated with the long term data source being representative of the long term mean.

Long term power price forecasts are provided by a leading market consultant, updated quarterly, and may be adjusted by the Investment Manager where more conservative assumptions are considered appropriate. Short term power price assumptions reflect the forward curve as at 4 July 2022 with an appropriate discount applied, reflecting high volatility and market uncertainty.

Over the life of the portfolio, fixed cashflows are forecast to contribute 50 per cent of the total DCF value (50 per cent merchant).

The power price sensitivity assumes a 10 per cent increase or decrease in power prices relative to this base case forecast for every year of the asset life.

The base case asset life is 30 years.

Outlook

There are currently over 27GW of operating UK wind farms (14GW onshore plus 13GW offshore). In monetary terms, the secondary market for operating UK wind farms is over GBP90 billion. The Group currently has a market share of approximately 5 per cent. As at 30 June 2022, the average age of the portfolio was 7 years (versus 5 years at listing in March 2013).

Driven by recent security of supply and cost concerns, as well as by net zero climate objectives, the UK is now targeting 50GW of offshore wind by 2030, supported by the CFD regime. New build onshore wind and solar are also expected to contribute, both on a subsidy free basis and supported by the CFD regime. Over 10GW of total capacity was awarded in CFD Allocation Round 4, announced on 7 July 2022.

It is anticipated that the Group will continue to invest in ROC, CFD and subsidy free wind farms. At all times, the Group will maintain a balanced portfolio, in line with the Company's Investment Objective.

Power prices during the period were well above budget, primarily reflecting high gas prices driven by the recovery in global demand, supply chain constraints and the war in Ukraine. The average N2EX Day Ahead auction price was GBP 176.05 /MWh (H1 2021: GBP 68.45/MWh ). Forward power prices over the period 2022-2025 remain high. High power prices drove strong cash generation in H1 2022 and the Group should continue to benefit from strong cash generation over the next few years through its balanced exposure to power prices.

Short term power prices have been modelled on an appropriately conservative basis, reflecting high volatility and market uncertainty. In the medium term, various market design options are being considered by BEIS with a view to accommodating a higher proportion of renewable generation and storage.

In general, the outlook for the Group is very encouraging, with proven operational and financial performance from the existing portfolio, combined with a healthy pipeline of attractive further investment opportunities.

Statement of Directors' Responsibilities

The Directors acknowledge responsibility for the interim results and approve this Half Year Report. The Directors confirm that to the best of their knowledge:

a) the condensed financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" and give a true and fair view of the assets, liabilities and financial position and the profit of the Group as required by DTR 4.2.4R;

b) the interim management report, included within the Chairman's Statement and Investment Manager's Report, includes a fair review of the information required by DTR 4.2.7R, being the significant events of the first half of the year and the principal risks and uncertainties for the remaining six months of the year; and

c) the condensed financial statements include a fair review of the related party transactions, as required by DTR 4.2.8R.

The Responsibility Statement has been approved by the Board.

Shonaid Jemmett-Page

Chairman

27 July 2022

Condensed Consolidated Statement of Comprehensive Income (unaudited)

For the six months ended 30 June 2022

 
                                                                   For the six months ended   For the six months ended 
                                                            Note               30 June 2022               30 June 2021 
                                                                                    GBP'000                    GBP'000 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 
 Return on investments                                       3                      582,190                    140,171 
 Other income                                                                           990                        889 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 Total income and gains                                                             583,180                    141,060 
 
 Operating expenses                                          4                     (16,509)                   (12,256) 
 Investment acquisition costs                                                         (577)                      (339) 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 Operating profit                                                                   566,094                    128,465 
 
 Finance expense                                             12                    (14,497)                   (11,792) 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 
 Profit for the year before tax                                                     551,597                    116,673 
 Tax                                                         5                            -                          - 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 
 Profit for the year after tax                                                      551,597                    116,673 
 
 Profit and total comprehensive income attributable to: 
 Equity holders of the Company                                                      551,597                    116,673 
 
 Earnings per share 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 Basic and diluted earnings from continuing operations in 
  the period (pence)                                         6                        23.80                       6.03 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 

The accompanying notes form an integral part of the financial statements.

Condensed Consolidated Statement of Financial Position (unaudited)

As at 30 June 2022

 
                                                     Note   30 June 2022   31 December 2021 
                                                                 GBP'000            GBP'000 
--------------------------------------------------  -----  -------------  ----------------- 
 
 Non current assets 
 Investments at fair value through profit or loss     8        4,366,253          4,042,545 
--------------------------------------------------  -----  -------------  ----------------- 
                                                               4,366,253          4,042,545 
 Current assets 
 Receivables                                          10           1,268              2,632 
 Cash and cash equivalents                                        99,171              4,801 
--------------------------------------------------  -----  -------------  ----------------- 
                                                                 100,439              7,433 
 Current liabilities 
 Payables                                             11         (7,006)            (6,279) 
--------------------------------------------------  -----  -------------  ----------------- 
 Net current assets                                               93,433              1,154 
 
 Non current liabilities 
 Loans and borrowings                                 12       (900,000)          (950,000) 
 
 Net assets                                                    3,559,686          3,093,699 
--------------------------------------------------  -----  -------------  ----------------- 
 
 Capital and reserves 
 Called up share capital                              14          23,177             23,171 
 Share premium account                                14       2,469,650          2,468,940 
 Retained earnings                                             1,066,859            601,588 
--------------------------------------------------  -----  -------------  ----------------- 
 Total shareholders' funds                                     3,559,686          3,093,699 
--------------------------------------------------  -----  -------------  ----------------- 
 Net assets per share (pence)                         15           153.6              133.5 
--------------------------------------------------  -----  -------------  ----------------- 
 

Authorised for issue by the Board of Greencoat UK Wind PLC (registered number 08318092) on 27 July 2022 and signed on its behalf by:

   Shonaid Jemmett-Page                                  Caoimhe Giblin 
   Chairman                                                       Director 

The accompanying notes form an integral part of the financial statements.

Condensed Consolidated Statement of Changes in Equity (unaudited)

For the six months ended 30 June 2022

 
 For the six months ended                            Share               Share            Retained 
  30 June 2022                  Note               capital             premium            earnings               Total 
                                                   GBP'000             GBP'000             GBP'000             GBP'000 
-----------------------------  -----  --------------------  ------------------  ------------------  ------------------ 
 Opening net assets 
  attributable 
  to shareholders (1 January 
  2022)                                             23,171           2,468,940             601,588           3,093,699 
 Issue of share capital          14                      6                 744                   -                 750 
 Share issue costs               14                      -                (34)                   -                (34) 
 Profit and total 
  comprehensive 
  income for the period                                  -                   -             551,597             551,597 
 Interim dividends paid in 
  the period                     7                       -                   -            (86,326)            (86,326) 
 
 Closing net assets 
  attributable 
  to shareholders                                   23,177           2,469,650           1,066,859           3,559,686 
-----------------------------  -----  --------------------  ------------------  ------------------  ------------------ 
 

The total reserves distributable by way of a dividend as at 30 June 2022 were GBP540,760,772.

 
 For the six months ended 
  30 June 2021                                         Share capital   Share premium   Retained earnings       Total 
                                                             GBP'000         GBP'000             GBP'000     GBP'000 
---------------------------------------------------   --------------  --------------  ------------------  ---------- 
 Opening net assets attributable to shareholders (1 
  January 2021)                                               18,241       1,834,477             377,155   2,229,873 
 Issue of share capital                                        1,515         196,853                   -     198,368 
 Share issue costs                                                 -         (2,933)                   -     (2,933) 
 Profit and total comprehensive income for the 
  period                                                           -               -             116,673     116,673 
 Interim dividends paid in the period                              -               -            (67,846)    (67,846) 
 
 Closing net assets attributable to shareholders              19,756       2,028,397             425,982   2,474,135 
----------------------------------------------------  --------------  --------------  ------------------  ---------- 
 

The total reserves distributable by way of a dividend as at 30 June 2021 were GBP314,050,860.

The accompanying notes form an integral part of the financial statements.

Condensed Consolidated Statement of Cash Flows (unaudited)

For the six months ended 30 June 2022

 
                                                                   For the six months ended   For the six months ended 
                                                            Note               30 June 2022               30 June 2021 
                                                                                    GBP'000                    GBP'000 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 
 Net cash flows from operating activities                    16                     309,426                    129,561 
 
 Cash flows from investing activities 
 Acquisition of investments                                                        (70,386)                   (68,519) 
 Investment acquisition costs                                                       (1,953)                    (4,848) 
 Repayment of shareholder loan investments                   8                        5,272                      5,699 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 Net cash flows from investing activities                                          (67,067)                   (67,668) 
 
 Cash flows from financing activities 
 Issue of share capital                                      14                           -                    197,618 
 Payment of issue costs                                                                (42)                    (2,933) 
 Amounts drawn down on loan facilities                       12                     200,000                          - 
 Amounts repaid on loan facilities                           12                   (250,000)                  (160,000) 
 Finance costs                                                                     (11,621)                   (11,283) 
 Dividends paid                                              7                     (86,326)                   (67,846) 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 Net cash flows from financing activities                                         (147,989)                   (44,444) 
 
 Net increase in cash and cash equivalents during the 
  period                                                                             94,370                     17,449 
 
 Cash and cash equivalents at the beginning of the period                             4,801                      7,888 
 
 Cash and cash equivalents at the end of the period                                  99,171                     25,337 
---------------------------------------------------------  -----  -------------------------  ------------------------- 
 

The accompanying notes form an integral part of the financial statements.

Notes to the Unaudited Condensed Consolidated Financial Statements

For the six months ended 30 June 2022

   1.    Significant accounting policies 

Basis of accounting

The condensed consolidated financial statements included in this Half Year Report have been prepared in accordance with IAS 34 "Interim Financial Reporting". The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the preparation of the Group's consolidated annual financial statements for the year ended 31 December 2021 and are expected to continue to apply in the Group's consolidated financial statements for the year ended 31 December 2022.

The Group's consolidated annual financial statements were prepared on the historic cost basis, as modified for the measurement of certain financial instruments at fair value through profit or loss, and in accordance with UK adopted international accounting standards.

These condensed financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2021. The audited annual accounts for the year ended 31 December 2021 have been delivered to the Registrar of Companies. The audit report thereon was unmodified.

Review

This Half Year Report has not been audited or reviewed by the Company's Auditor in accordance with the International Standards on Auditing (ISAs) (UK) or International Standard on Review Engagements (ISREs).

Going concern

As at 30 June 2022, the Group had net current assets of GBP 93.4 million (31 December 2021: GBP1.2 million) and cash balances of GBP 99.2 million (31 December 2021: GBP4.8 million) which are sufficient to meet current obligations as they fall due.

The COVID-19 pandemic has had a negative impact on the global economy. The Directors and Investment Manager are actively monitoring this and its potential effect on the Group and its SPVs. In particular, they have considered the following specific key potential impacts:

   --    Unavailability of key personnel at the Investment Manager or Administrator; 
   --    Increased volatility in the fair value of investments; 
   --    Disruptions to maintenance or repair at the investee company level; and 
   --    Allowance for expected counterparty credit losses. 

In considering the above key potential impacts of COVID-19 on the Group and SPV operations, the Directors have assessed these with reference to the mitigation measures in place and do not consider that the effects have created a material uncertainty over the assessment of the Group as a going concern.

The Directors have reviewed Group forecasts and projections which cover a period of at least 12 months from the date of approval of this report, taking into account foreseeable changes in investment and trading performance, which show that the Group has sufficient financial resources to continue in operation for at least the next 12 months from the date of approval of this report.

On the basis of this review, and after making due enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for at least up to July 2023. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board, as a whole. The key measure of performance used by the Board to assess the Group's performance and to allocate resources is the total return on the Group's net assets, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements.

For management purposes, the Group is organised into one main operating segment, which invests in wind farm assets.

All of the Group's income is generated within the UK.

All of the Group's non-current assets are located in the UK.

Seasonal and cyclical variations

The Group's results do not vary significantly during reporting periods as a result of seasonal activity.

   2.    Investment management fees 

Under the terms of the Investment Management Agreement, the Investment Manager is entitled to a combination of a Cash Fee and an Equity Element from the Company.

The Cash Fee and Equity Element are calculated quarterly in advance, as disclosed on page 74 of the Company's Annual Report for the year ended 31 December 2021. Following consultation with shareholders, the Board announced on 13 June 2022 certain amendments to the Investment Management Agreement. In particular, an additional tier was added to the cash fee structure, which will see a reduction in the fee charges in respect of NAV over GBP3,000 million to an amount equal to 0.7 per cent, paid in quarterly instalments and applied retrospectively.

Investment management fees paid or accrued in the period were as follows:

 
                   For the six months ended   For the six months ended 
                               30 June 2022               30 June 2021 
                                    GBP'000                    GBP'000 
----------------  -------------------------  ------------------------- 
 
 Cash Fee                            13,718                     10,038 
 Equity Element                         750                        750 
---------------- 
                                     14,468                     10,788 
----------------  -------------------------  ------------------------- 
 

As at 30 June 2022, total amounts receivable from the Investment Manager were GBP138,215 (31 December 2021: payable GBP1,072,061).

   3.    Return on investments 
 
                                                              For the six months ended   For the six months ended 
                                                                          30 June 2022               30 June 2021 
                                                                               GBP'000                    GBP'000 
-----------------------------------------------------------  -------------------------  ------------------------- 
 
 Dividends received (note 17)                                                  297,483                    121,101 
 Unrealised movement in fair value of investments (note 8)                     258,752                        135 
 Interest on shareholder loan investment received                               25,955                     18,935 
                                                                               582,190                    140,171 
-----------------------------------------------------------  -------------------------  ------------------------- 
 
   4.    Operating expenses 
 
                                             For the six     For the six 
                                            months ended    months ended 
                                            30 June 2022    30 June 2021 
                                                 GBP'000         GBP'000 
----------------------------------------  --------------  -------------- 
 
 Management fees (note 2)                         14,468          10,788 
 Group and SPV administration fees                   439             434 
 Non-executive Directors' fees                       178             135 
 Other expenses                                    1,309             830 
 Fees to the Company's Auditor: 
   for audit of the statutory financial 
    statements                                       111              65 
   for other audit related services                    4               4 
----------------------------------------  --------------  -------------- 
                                                  16,509          12,256 
----------------------------------------  --------------  -------------- 
 

The fees to the Company's Auditor for the period ended 30 June 2022 include GBP 4,173 (30 June 2021: GBP3,838) payable in relation to a limited review of the Half Year Report and estimated accruals proportioned across the year for the audit of the statutory financial statements.

   5.    Taxation 

Taxable income during the period was offset by management expenses and the tax charge for the period ended 30 June 2022 is GBP nil (30 June 2021: GBPnil). The Group has tax losses carried forward available to offset against current and future profits as at 30 June 2022 of GBP29,583,434 (30 June 2021: GBP 23,032,849 ).

   6.    Earnings per share 
 
                                                                   For the six months ended   For the six months ended 
                                                                               30 June 2022               30 June 2021 
----------------------------------------------------------------  -------------------------  ------------------------- 
 
 Profit attributable to equity holders of the Company - GBP'000                     551,597                    116,673 
 Weighted average number of ordinary shares in issue                          2,317,381,121              1,933,649,612 
----------------------------------------------------------------  -------------------------  ------------------------- 
 Basic and diluted earnings from continuing operations in the 
  period (pence)                                                                      23.80                       6.03 
----------------------------------------------------------------  -------------------------  ------------------------- 
 

Dilution of the earnings per share as a result of the Equity Element of the investment management fee as disclosed in note 2 does not have a significant impact on the basic earnings per share.

   7.    Dividends declared with respect to the period 
 
 Interim dividends paid during the period ended 30 June 2022    Dividend per share   Total dividend 
                                                                             pence          GBP'000 
-------------------------------------------------------------  -------------------  --------------- 
 With respect to the quarter ended 31 December 2021                          1.795           41,596 
 With respect to the quarter ended 31 March 2022                             1.930           44,730 
                                                                             3.725           86,326 
-------------------------------------------------------------  -------------------  --------------- 
 
 
 Interim dividends declared after 30           Dividend 
  June 2022 and not accrued in the period     per share   Total dividend 
                                                  pence          GBP'000 
------------------------------------------  -----------  --------------- 
 With respect to the quarter ended 30 
  June 2022                                       1.930           44,734 
                                                  1.930           44,734 
------------------------------------------  -----------  --------------- 
 

As disclosed in note 18, on 27 July 2022 , the Board approved a dividend of 1.930 pence per share with respect to the quarter ended 30 June 2022, bringing the total dividends declared with respect to the period to 3.86 pence per share. The record date for the dividend is 12 August 2022 and the payment date is 26 August 2022 .

   8.    Investments at fair value through profit or loss 
 
 For the period ended 30 June 2022                              Loans   Equity interest       Total 
                                                              GBP'000           GBP'000     GBP'000 
-----------------------------------------------------------  --------  ----------------  ---------- 
 
 Opening balance                                              924,748         3,117,797   4,042,545 
 Additions(1)                                                  50,397            19,831      70,228 
 Repayment of shareholder loan investments (note 17)          (5,272)                 -     (5,272) 
 Unrealised movement in fair value of investments (note 3)      1,018           257,734     258,752 
-----------------------------------------------------------  --------  ----------------  ---------- 
                                                              970,891         3,395,362   4,366,253 
-----------------------------------------------------------  --------  ----------------  ---------- 
 
 

(1) Includes a true-up receivable at Glen Kyllachy of GBP158k (note 10).

 
 For the period ended 30 June 2021                              Loans   Equity interest       Total 
                                                              GBP'000           GBP'000     GBP'000 
-----------------------------------------------------------  --------  ----------------  ---------- 
 
 Opening balance                                              607,956         2,721,812   3,329,768 
 Additions                                                     20,381            48,138      68,519 
 Repayment of shareholder loan investments                    (5,699)                 -     (5,699) 
 Unrealised movement in fair value of investments (note 3)    (1,926)             2,061         135 
-----------------------------------------------------------  --------  ----------------  ---------- 
                                                              620,712         2,772,011   3,392,723 
-----------------------------------------------------------  --------  ----------------  ---------- 
 

The unrealised movement in fair value of investments of the Group during the period was made up as follows:

 
                                                        For the six months ended   For the six months ended 
                                                                    30 June 2022               30 June 2021 
                                                                         GBP'000                    GBP'000 
-----------------------------------------------------  -------------------------  ------------------------- 
 
 Increase in portfolio valuation                                         228,628                     14,882 
 Repayment of shareholder loan investments (note 17)                       5,272                      5,699 
 Movement in cash balances of SPVs                                        24,694                   (16,191) 
 True-up receivable at Glen Kyllachy (note 10)                               158                          - 
 Increase in Douglas West cash balance                                         -                    (4,255) 
                                                                         258,752                        135 
-----------------------------------------------------  -------------------------  ------------------------- 
 

Fair value measurements

As disclosed on pages 78 to 79 of the Company's Annual Report for the year ended 31 December 2021 , IFRS 13 "Fair Value Measurement" requires disclosure of fair value measurement by level. The level of fair value hierarchy within the financial assets or financial liabilities ranges from level 1 to level 3 and is determined on the basis of the lowest level input that is significant to the fair value measurement.

The fair value of the Group's investments is ultimately determined by the underlying net present values of the SPV investments. Due to their nature, they are always expected to be classified as level 3 as the investments are not traded and contain unobservable inputs. There have been no transfers between levels during the six months ended 30 June 2022.

Sensitivity analysis

The fair value of the Group's investments is GBP4,366,253,152 (31 December 2021: GBP4,042,545,081). The analysis below is provided to illustrate the sensitivity of the fair value of investments to an individual input, while all other variables remain constant. The Board considers these changes in inputs to be within reasonable expected ranges. This is not intended to imply the likelihood of change or that possible changes in value would be restricted to this range.

 
                                                                         Change in fair value        Change in NAV per 
 Input                     Base case                 Change in input           of investments                    share 
------------------------  -----------------------  -----------------  -----------------------  ----------------------- 
                                                                                      GBP'000                    pence 
 
 Discount rate             7.7 per cent               + 0.5 per cent                (114,365)                    (4.9) 
                                                      - 0.5 per cent                  120,672                      5.2 
 
                           RPI: 3.5 per cent to 
                            2030, 2.5 per cent 
 Long term inflation        thereafter 
  rate                      CPI: 2.5 per cent         - 0.5 per cent                (113,686)                    (4.9) 
                                                      + 0.5 per cent                  119,454                      5.2 
 
 Energy yield              P50                           10 year P90                (247,971)                   (10.7) 
                                                         10 year P10                  247,939                     10.7 
 
                           Forecast by leading 
 Power price                consultant                 - 10 per cent                (250,965)                   (10.8) 
                                                       + 10 per cent                  250,479                     10.8 
 
 Asset life                30 years                        - 5 years                (162,556)                    (7.0) 
                                                           + 5 years                  109,980                      4.7 
 
 

The sensitivities above are assumed to be independent of each other. Combined sensitivities are not presented.

   9.    Unconsolidated subsidiaries, associates and joint ventures 

The following table shows subsidiaries of the Group acquired during the period. As the Company is regarded as an investment entity under IFRS, this subsidiary has not been consolidated in the preparation of the financial statements:

 
 
                                        Ownership interest as at 
 Investment        Place of business                30 June 2022 
----------------  -------------------  ------------------------- 
 Twentyshilling    Scotland                                100 % 
 

There are no other changes to the unconsolidated subsidiaries or the associates and joint ventures of the Group as disclosed on pages 80 and 81 of the Company's Annual Report for the year ended 31 December 2021.

Security deposits and guarantees provided during the period by the Group on behalf of its investments are as follows:

 
                                                                                                 Amount 
 Provider of security         Investment    Beneficiary       Nature            Purpose         GBP'000 
----------------------  ----------------  -------------  -----------  -----------------  -------------- 
 The Company              Twentyshilling      Statkraft    Guarantee     Cabling, radar          12,944 
 The Company              Twentyshilling      Santander         Bond    Decommissioning           1,903 
                                                                                                 14,847 
    -----------------------------------------------------------------------------------  -------------- 
 

There are no other changes to guarantees and counter-indemnities provided by the Group, as disclosed on page 81 of the Company's Annual Report for the year ended 31 December 2021.

10. Receivables

 
                                                  30 June 2022   31 December 2021 
                                                       GBP'000            GBP'000 
-----------------------------------------------  -------------  ----------------- 
 
 Amounts due from SPVs                                       2              1,798 
 VAT receivable                                            545                407 
 Prepayments                                               187                107 
 True-up receivable at Glen Kyllachy (note 8)              158                  - 
 Investment management fee receivable (note 2)             138                  - 
 Other receivables                                         238                320 
                                                         1,268              2,632 
-----------------------------------------------  -------------  ----------------- 
 

11. Payables

 
                                                     31 December 
                                      30 June 2022          2021 
                                           GBP'000       GBP'000 
-----------------------------------  -------------  ------------ 
 
 Loan interest payable (note 12)             5,324         2,788 
 Commitment fee payable (note 12)              695           344 
 Acquisition costs payable                     160         1,595 
 Investment management fee payable               -         1,072 
 Share issue costs payable                       -            10 
 Other payables                                827           470 
                                             7,006         6,279 
-----------------------------------  -------------  ------------ 
 

12. Loans and borrowings

 
                                             31 December 
                              30 June 2022          2021 
                                   GBP'000       GBP'000 
---------------------------  -------------  ------------ 
 
 Opening balance                   950,000     1,100,000 
 Revolving credit facility 
                Drawdowns                -       110,000 
                Repayments       (250,000)     (260,000) 
 Term debt facilities 
                Drawdowns          200,000             - 
 Closing balance                   900,000       950,000 
---------------------------  -------------  ------------ 
 
 
                        For the six months ended   For the six months ended 
                                    30 June 2022               30 June 2021 
                                         GBP'000                    GBP'000 
---------------------  -------------------------  ------------------------- 
 
 Loan interest                            11,586                     11,410 
 Commitment fees                           1,748                        312 
 Professional fees                         1,076                          - 
 Other facility fees                          87                         70 
---------------------  -------------------------  ------------------------- 
 Finance expense                          14,497                     11,792 
---------------------  -------------------------  ------------------------- 
 

The loan balance as at 30 June 2022 has not been adjusted to reflect amortised cost, as the amounts are not materially different from the outstanding balances.

In relation to non-current loans and borrowings, the Board is of the view that the current market interest rate is not significantly different to the respective instruments' contractual interest rates therefore the fair value of the non-current loans and borrowings at the end of the reporting periods is not significantly different from their carrying amounts.

There are no changes to the terms of the Company's revolving credit facility as disclosed on page 83 of the Company's Annual Report for the year ended 31 December 2021.

As at 30 June 2022, the balance of this facility was GBPnil (31 December 2021: GBP250 million), accrued interest was GBPnil (31 December 2021: GBP12,554) and the outstanding commitment fee payable was GBP694,521 (31 December 2021: GBP343,699).

On 31 January 2022, the Company utilised GBP200 million under its 8 year term debt facility with AXA.

The Company's term debt facilities and associated interest rate swaps, with various maturity dates, are set out in the below table:

 
                                                                                  Accrued 
                                                                                 interest 
                                   Loan   Swap fixed    All-in         Loan    at 30 June 
 Provider       Maturity date    margin         rate      rate    principal          2022 
                                      %            %         %      GBP'000       GBP'000 
----------  -----------------  --------  -----------  --------  -----------  ------------ 
 NAB          1 November 2023      1.20      1.42800   2.62800       75,000           319 
 NAB          1 November 2023      1.20      0.77250   1.97250       25,000            80 
 CBA          7 December 2023      1.00      0.11300   1.11300       50,000            88 
 NAB          4 November 2024      1.15      1.06100   2.21100       50,000           179 
                  14 November 
 CBA                     2024      1.35      0.80750   2.15750       50,000           171 
 CBA             6 March 2025      1.55      1.52650   3.07650       50,000           244 
 CIBC         3 November 2025      1.50      1.51030   3.01030      100,000           437 
 NAB          1 November 2026      1.50      1.59800   3.09800       75,000           376 
 NAB          1 November 2026      1.50      0.84250   2.34250       25,000            95 
                  14 November 
 CIBC                    2026      1.40      0.81325   2.21325      100,000           321 
 CBA          4 November 2027      1.60      1.36800   2.96800      100,000           472 
 AXA          31 January 2030                          3.03000      125,000         1,567 
 AXA          31 January 2030      1.70      1.44500   3.14500       75,000           975 
                                                                    900,000         5,324 
 ----------------------------  --------  -----------  --------  -----------  ------------ 
 

13. Contingencies and commitments

In April 2020, the Group announced that it had agreed to acquire the South Kyle wind farm project for a headline consideration of GBP320 million. The investment is scheduled to complete in Q1 2023 once the wind farm is fully operational.

In December 2020, the Group entered into an agreement to acquire 49.9 per cent of the Kype Muir Extension wind farm project for a headline consideration of GBP51.4 million, to be paid once the wind farm is fully operational (target Q4 2022). The Group also agreed to provide construction finance of up to GBP47 million, of which GBP 29.3 million had been utilised as at 30 June 2022.

In May 2022, the Group entered into an agreement to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm for a total cash consideration of approximately GBP400 million. The acquisition is expected to complete in Q3 2022.

14. Share capital - ordinary shares of GBP0.01

 
 Six months to 30 June 2022 
                                              Number 
                 Issued and fully          of shares      Share       Share 
 Date             paid                        issued    capital     premium       Total 
                                                        GBP'000     GBP'000     GBP'000 
--------------  --------------------  --------------  ---------  ----------  ---------- 
 1 January 
  2022                                 2,317,097,822     23,171   2,468,940   2,492,111 
 Shares issued to the Investment 
  Manager 
                 True-up of 2021 
                  and 
 4 February       Q1 2022 Equity 
  2022            Element                    254,855          3         372         375 
                 Q2 2022 Equity 
 5 May 2022       Element                    251,219          3         372         375 
                                             506,074          6         744         750 
 
 Other 
 1 January       Less share issue 
  2022            costs                            -          -        (34)        (34) 
 30 June 
  2022                                 2,317,603,896     23,177   2,469,650   2,492,827 
------------------------------------  --------------  ---------  ----------  ---------- 
 

15. Net assets per share

 
                                                       31 December 
                                      30 June 2022            2021 
----------------------------------  --------------  -------------- 
 
 Net assets - GBP'000                    3,559,686       3,093,699 
 Number of ordinary shares issued    2,317,603,896   2,317,097,822 
----------------------------------  --------------  -------------- 
 Total net assets - pence                    153.6           133.5 
----------------------------------  --------------  -------------- 
 

16. Reconciliation of operating profit for the period to net cash from operating activities

 
                                                        For the six months ended   For the six months ended 
                                                                    30 June 2022               30 June 2021 
                                                                         GBP'000                    GBP'000 
-----------------------------------------------------  -------------------------  ------------------------- 
 Operating profit for the year                                           566,094                    128,465 
 Adjustments for: 
 Movement in fair value of investments (notes 3 & 8)                   (258,752)                      (135) 
 Investment acquisition costs                                                577                        339 
 Decrease in receivables                                                   1,534                        190 
 Decrease in payables                                                      (777)                       (48) 
 Equity Element of Investment Manager's fee (note 2)                         750                        750 
 Net cash flows from operating activities                                309,426                    129,561 
-----------------------------------------------------  -------------------------  ------------------------- 
 

17. Related party transactions

During the period, the Company increased its loan to Holdco by GBP 411,425 (30 June 2021: GBP48,400,000) and Holdco settled amounts of GBP 163,866,761 (30 June 2021: GBP103,273,112). The amount outstanding at the period end was GBP 2,267,310,484 (31 December 2021: GBP2,430,765,820).

The below table shows dividends received in the period from the Group's investments.

 
                             For the six     For the six 
                            months ended    months ended 
                            30 June 2022    30 June 2021 
                                 GBP'000         GBP'000 
------------------------  --------------  -------------- 
 Clyde                            35,938          14,954 
 Humber Holdco (1)                29,722          15,760 
 Stronelairg Holdco (2)           24,640           4,379 
 Corriegarth                      17,054           5,859 
 Braes of Doune                   14,380           6,330 
 North Hoyle                      14,186           2,788 
 SYND Holdco (3)                  11,670           4,622 
 Fenlands (4)                     11,300           4,436 
 ML Wind (5)                      10,241           3,528 
 Brockaghboy                       9,791           6,170 
 Walney                            9,366          11,525 
 Dunmaglass Holdco (6)             9,362           3,072 
 Douglas West                      8,644               - 
 Rhyl Flats                        8,184           4,266 
 Windy Rig                         7,093               - 
 Andershaw                         6,913               - 
 Tappaghan                         5,933           2,361 
 Maerdy                            5,427           2,708 
 Little Cheyne Court               5,412           2,296 
 Langhope Rig                      4,924           1,713 
 Bishopthorpe                      4,721           2,405 
 Slieve Divena                     4,602           1,989 
 Bicker Fen                        4,550           1,478 
 Crighshane                        4,020               - 
 Slieve Divena II                  3,991           1,416 
 Screggagh                         3,871           1,383 
 Church Hill                       3,124             660 
 Hoylake (7)                       2,961               - 
 Nanclach                          2,618               - 
 Glen Kyllachy                     2,500               - 
 Kildrummy                         2,221           2,248 
 Bin Mountain                      2,202             984 
 Cotton Farm                       1,913           2,376 
 Carcant                           1,909             916 
 Earl's Hall Farm                  1,100           1,806 
 Stroupster                        1,000           6,673 
                                 297,483         121,101 
------------------------  --------------  -------------- 
 

(1) The Group's investment in Humber Gateway is held through Humber Holdco.

(2) The Group's investment in Stronelairg is held through Stronelairg Holdco.

(3) The Group's investments in Drone Hill, North Rhins, Sixpenny Wood and Yelvertoft are held through SYND Holdco.

(4) The Group's investments in Deeping St. Nicholas, Glass Moor, Red House and Red Tile are held through Fenlands.

(5) The Group's investments in Middlemoor and Lindhurst are held through ML Wind.

(6) The Group's investment in Dunmaglass is held through Dunmaglass Holdco.

(7) The Group's investment in Burbo Bank Extension is held through Hoylake.

The table below shows the Group's shareholder loans with the wind farm investments.

 
                      Loans                                                        Accrued 
                       at 1                                            Loans      interest 
                    January   Loans advanced   Loan repayments    at 30 June    at 30 June 
 Windfarm           2022(1)    in the period       in the year          2022          2022     Total 
                    GBP'000          GBP'000           GBP'000       GBP'000       GBP'000   GBP'000 
----------------  ---------  ---------------  ----------------  ------------  ------------  -------- 
 Andershaw           32,641                -                 -        32,641           488    33,129 
 Church Hill         14,702                -                 -        14,702           116    14,818 
 Clyde               71,503                -                 -        71,503         1,040    72,543 
 Corriegarth         42,553                -                 -        42,553           637    43,190 
 Crighshane          22,264                -             (735)        21,529           170    21,699 
 Douglas 
  West               43,648                -                 -        43,648           216    43,864 
 Dunmaglass          56,864                -                 -        56,864           851    57,715 
 Glen Kyllachy       51,470                -           (2,694)        48,776           247    49,023 
 Hoylake            172,279                -                 -       172,279             -   172,279 
 Kype Muir 
  Extension          10,606       18,455 (2)                 -        29,061           250    29,311 
 Slieve Divena 
  II                 22,182                -                 -        22,182           175    22,357 
 Stronelairg         86,619                -                 -        86,619         1,296    87,915 
 Tom nan 
  Clach              80,654                -           (1,843)        78,811         1,478    80,289 
 Twentyshilling           -           32,190                 -        32,190            37    32,227 
 Walney             172,727                -                 -       172,727           852   173,579 
 Windy Rig           36,772                -                 -        36,772           181    36,953 
 
                    917,484           50,645           (5,272)       962,857         8,034   970,891 
----------------  ---------  ---------------  ----------------  ------------  ------------  -------- 
 

(1) Excludes accrued interest at 31 December 2021 of GBP7,264,193.

(2) Includes capitalised interest of GBP247,838.

18. Subsequent events

On 27 July 2022 , the Board approved a dividend of GBP44.7 million equivalent to 1.930 pence per share. The record date for the dividend is 12 August 2022 and the payment date is 26 August 2022 .

Company Information

 
 
   Directors (all non-executive)        Registered Company Number 
 Shonaid Jemmett-Page (Chairman)        08318092 
 Martin McAdam 
 Lucinda Riches C.B.E                   Registered Office 
 Caoimhe Giblin                         5(th) Floor 
                                        20 Fenchurch Street 
                                         London 
 Nicholas Winser                         EC3M 3BY 
 William Rickett C.B. (1) 
 Investment Manager 
 Greencoat Capital LLP 
 4th Floor, The Peak                    Registered Auditor 
 5 Wilton Road                          BDO LLP 
 London                                 55 Baker Street 
 SW1V 1AN                               London 
                                        W1U 7EU 
 Administrator and Company Secretary 
 Ocorian Administration (UK) Limited 
 Unit 4, The Legacy Building            Joint Broker 
 Northern Ireland Science Park          RBC Capital Markets 
 Queen's Road                           Riverbank House 
 Belfast                                2 Swan Lake 
 BT3 9DT                                London 
                                        EC4R 3BF 
 Depositary 
 Ocorian Depositary (UK) Limited 
 Unit 4, The Legacy Building            Joint Broker 
 Northern Ireland Science Park          Jefferies International Limited 
 Queen's Road                           100 Bishopsgate 
 Belfast                                London 
 BT3 9DT                                EC2N 4JL 
 
 Registrar 
 Computershare Limited 
 The Pavilions 
 Bridgewater Road 
 Bristol 
 BS99 6ZZ 
 
 
 

(1) Retired from the Board with effect from 28 April 2022.

Defined Terms

Aggregate Group Debt means the Group's proportionate share of outstanding third party borrowings

AGM means Annual General Meeting of the Company

Alternative Performance Measure means a financial measure other than those defined or specified in the applicable financial reporting framework

Andershaw means Andershaw Wind Power Limited

AXA means funds managed by AXA Investment Managers UK Limited

Balancing Mechanism means the system by which electricity demand and supply is balanced by National Grid in close to real time

BDO LLP means the Company's Auditor as at the reporting date

BEIS means Department for Business, Energy and Industrial Strategy

Bicker Fen means Bicker Fen Windfarm Limited

Bin Mountain means Bin Mountain Wind Farm (NI) Limited

Bishopthorpe means Bishopthorpe Wind Farm Limited

Board means the Directors of the Company

Braes of Doune means Braes of Doune Wind Farm (Scotland) Limited

Breeze Bidco means Breeze Bidco (TNC) Limited

Brockaghboy means Brockaghboy Windfarm Limited

Burbo Bank Extension means Hoylake Wind Limited, Greencoat Burbo Extension Holding (UK) Limited, Burbo Extension Holding Limited and Burbo Extension Limited

Carcant means Carcant Wind Farm (Scotland) Limited

Cash Fee means the cash fee that the Investment Manager is entitled to under the Investment Management Agreement

CBA means Commonwealth Bank of Australia

CFD means Contract For Difference

Church Hill means Church Hill Wind Farm Limited

CIBC means Canadian Imperial Bank of Commerce

Clyde means Clyde Wind Farm (Scotland) Limited

COD means Commercial Operation Date

Company means Greencoat UK Wind PLC

Corriegarth means Corriegarth Wind Energy Limited

Corriegarth Holdings means Corriegarth Wind Energy Holdings Limited

Cotton Farm means Cotton Farm Wind Farm Limited

COVID-19 means an infectious disease discovered in late 2019 and caused by the corona virus

CPI means the Consumer Price Index

Crighshane means Crighshane Wind Farm Limited

DCF means Discounted Cash Flow

Deeping St. Nicholas means Deeping St. Nicholas wind farm

Douglas West means Douglas West Wind Farm Limited

Drone Hill means Drone Hill Wind Farm Limited

DTR means the Disclosure Guidance and Transparency Rules sourcebook issued by the Financial Conduct Authority

Dunmaglass means Dunmaglass Holdco and Dunmaglass Wind Farm

Dunmaglass Holdco means Greencoat Dunmaglass Holdco Limited

Dunmaglass Wind Farm means Dunmaglass Wind Farm Limited

Earl's Hall Farm means Earl's Hall Farm Wind Farm Limited

Equity Element means the ordinary shares issued to the Investment Manager under the Investment Management Agreement

EU means the European Union

Fenlands means Fenland Windfarms Limited

GAV means Gross Asset Value

GB means Great Britain consisting of England, Scotland and Wales

Glass Moor means Glass Moor wind farm

Glen Kyllachy means Glen Kyllachy Wind Farm Limited

Group means Greencoat UK Wind PLC and Greencoat UK Wind Holdco Limited

Holdco means Greencoat UK Wind Holdco Limited

Hoylake means Hoylake Wind Limited

Hornsea 1 means Hornsea 1 Limited

Humber Gateway means Humber Holdco and Humber Wind Farm

Humber Holdco means Greencoat Humber Limited

Humber Wind Farm means RWE Renewables UK Humber Wind Limited

IAS means International Accounting Standard

IFRS means International Financial Reporting Standards

Investment Management Agreement means the agreement between the Company and the Investment Manager

Investment Manager means Greencoat Capital LLP

Kildrummy means Kildrummy Wind Farm Limited

Kype Muir Extension means Kype Muir Extension Wind Farm

Langhope Rig means Langhope Rig Wind Farm Limited

Lindhurst means Lindhurst Wind Farm

Little Cheyne Court means Little Cheyne Court Wind Farm Limited

Maerdy means Maerdy Wind Farm Limited

Middlemoor means Middlemoor Wind Farm

ML Wind means ML Wind LLP

NAB means National Australia Bank

Nanclach means Nanclach Limited

NAV means Net Asset Value

NAV per Share means the Net Asset Value per Ordinary Share

North Hoyle means North Hoyle Wind Farm Limited

North Rhins means North Rhins Wind Farm Limited

PPA means Power Purchase Agreement entered into by the Group's wind farms

RBC means the Royal Bank of Canada

RBS International means the Royal Bank of Scotland International Limited

Red House means Red House wind farm

Red Tile means Red Tile wind farm

Review Section means the front end review section of this report (including but not limited to the Chairman's Statement and the Investment Manager's Report)

Rhyl Flats means Rhyl Flats Wind Farm Limited

ROC means Renewable Obligation Certificate

RPI means the Retail Price Index

Santander means Santander Global Banking and Markets

Screggagh means Screggagh Wind Farm Limited

Sixpenny Wood means Sixpenny Wood Wind Farm Limited

Slieve Divena means Slieve Divena Wind Farm Limited

Slieve Divena II means Slieve Divena Wind Farm No. 2 Limited

SPVs means the Special Purpose Vehicles which hold the Group's investment portfolio of underlying wind farms

Stronelairg means Stronelairg Holdco and Stronelairg Wind Farm

Stronelairg Holdco means Greencoat Stronelairg Holdco Limited

Stronelairg Wind Farm means Stronelairg Wind Farm Limited

Stroupster means Stroupster Caithness Wind Farm Limited

SYND Holdco means SYND Holdco Limited

Tappaghan means Tappaghan Wind Farm (NI) Limited

Tom nan Clach means Breeze Bidco and Nanclach

TSR means Total Shareholder Return

Twentyshilling means Twentyshilling Limited

UK means the United Kingdom of Great Britain and Northern Ireland

Walney means Walney Holdco and Walney Wind Farm

Walney Holdco means Greencoat Walney Holdco Limited

Walney Wind Farm means Walney (UK) Offshore Windfarms Limited

Windy Rig means Windy Rig Wind Farm Limited

Yelvertoft means Yelvertoft Wind Farm Limited

Alternative Performance Measures

 
 Performance Measure        Definition 
 NAV per share              The Net Asset Value per ordinary share 
                           ---------------------------------------- 
 Net cash generation        The operating cash flow of the Group 
                             and wind farm SPVs 
                           ---------------------------------------- 
 Total Shareholder Return   The movement in share price, combined 
                             with dividends paid during the year, 
                             on the assumption that these dividends 
                             have been reinvested 
                           ---------------------------------------- 
 

Cautionary Statement

The Review Section of this report has been prepared solely to provide additional information to shareholders to assess the Company's strategies and the potential for those strategies to succeed. These should not be relied on by any other party or for any other purpose.

The Review Section may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology.

These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs or current expectations of the Directors and the Investment Manager concerning, amongst other things, the investment objectives and Investment Policy, financing strategies, investment performance, results of operations, financial condition, liquidity, prospects, and distribution policy of the Company and the markets in which it invests.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual investment performance, results of operations, financial condition, liquidity, distribution policy and the development of its financing strategies may differ materially from the impression created by the forward-looking statements contained in this document.

Subject to their legal and regulatory obligations, the Directors and the Investment Manager expressly disclaim any obligations to update or revise any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

In addition, the Review Section may include target figures for future financial periods. Any such figures are targets only and are not forecasts.

This Half Year Report has been prepared for the Company as a whole and therefore gives greater emphasis to those matters which are significant in respect of Greencoat UK Wind PLC and its subsidiary undertakings when viewed as a whole.

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END

IR SEMFIWEESEEW

(END) Dow Jones Newswires

July 28, 2022 02:00 ET (06:00 GMT)

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