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.
This information is provided by RNS, the news service of the
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END
IR SEMFIWEESEEW
(END) Dow Jones Newswires
July 28, 2022 02:00 ET (06:00 GMT)
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