02
August 2023
Premier Miton Global
Renewables Trust Plc (the
‘Company’)
Legal Entity Identifier:
2138004SR19RBRGX6T68
Premier Miton Global
Renewables Trust PLC's half report and accounts for the six months
to 30 June 2023 is available
at https://www.globalrenewablestrust.com/documents/.
It has also been submitted in full unedited text to
the Financial Conduct Authority's National Storage Mechanism and is
available for inspection
at data.fca.org.uk/#/nsm/nationalstoragemechanism in
accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's
Disclosure Guidance and Transparency
Rules.
PREMIER MITON GLOBAL
RENEWABLES TRUST PLC
Half Year
Report
for the six months to
30 June
2023
INVESTMENT
OBJECTIVES
The investment objectives of the Premier Miton
Global Renewables Trust PLC are to achieve a high income from, and
to realise long-term growth in the capital value of its portfolio.
The Company seeks to achieve these objectives by investing
principally in the equity and equity-related securities of
companies operating primarily in the renewable energy sector, as
well as other sustainable infrastructure
investments.
GREEN ECONOMY – LONDON
STOCK EXCHANGE
In January 2021, the Company received London Stock
Exchange’s Green Economy Mark, a classification which is awarded to
companies and funds that are driving the global green economy. To
qualify for the Green Economy Mark, companies and funds must
generate 50% or more of their total annual revenues from products
and services that contribute to the global green
economy.
|
PRI – PRINCIPLES FOR
RESPONSIBLE INVESTMENT
The Fund Manager integrates Governance and Social
responsibility into its investment process. Premier Miton is a
signatory to the Principles for Responsible Investment, an
organisation which encourages and supports its signatories to
incorporate environmental, social, and governance factors into
their investment and ownership decisions.
|
FE FUNDINFO – CROWN FUND
RATING – 4 STARS
The Crown Fund Rating is a global quantitative
rating that is based on a fund’s historical performance relative to
an appropriate benchmark. The rating relies on three key
measurements - alpha, volatility and consistent performance, to
dictate the one-to-five Crown score. The ratings are designed to
help investors distinguish funds that have superior performance in
terms of stock picking, consistency and risk
control.
|
COMPANY
HIGHLIGHTS
for the six months to 30
June 2023
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2023 |
2022 |
|
TOTAL RETURN PERFORMANCE |
|
|
|
Total Assets Total
Return[1] |
(6.2%) |
(7.3%) |
|
S&P Global Clean Energy Index
(GBP)[2] |
(11.5%) |
6.6% |
|
Ongoing charges[3] |
1.68% |
1.70% |
|
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2023 |
2022 |
% change |
ORDINARY SHARE RETURNS |
|
|
|
Net Asset Value per Ordinary Share (cum
income)[4] |
156.35p |
178.44p |
(12.4%) |
Mid-market price per Ordinary
Share |
132.00p |
155.50p |
(15.1%) |
Discount to Net Asset
Value |
(15.6%) |
(12.9%) |
|
Net Asset Value Total
Return[5] |
(10.4%) |
(12.1%) |
|
Share Price Total
Return[2] |
(12.9%) |
(17.7%) |
|
|
Six months to |
Six months to |
|
|
30 June |
30 June |
|
|
2023 |
2022 |
% change |
RETURNS AND DIVIDENDS |
|
|
|
Revenue Return per Ordinary
Share |
4.43p |
3.95p |
12.2% |
Net Dividends declared per Ordinary
Share |
3.70p |
3.50p |
5.7% |
HISTORIC FULL YEAR
DIVIDENDS
|
|
|
|
|
31 December |
31 December |
|
Dividends paid in respect of the year
to: |
2022 |
2021 |
% change |
Dividend |
7.00p |
7.00p |
– |
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2023 |
2022 |
% change |
ZERO DIVIDEND PREFERENCE SHARE
RETURNS |
|
|
|
Net Asset Value per Zero Dividend Preference
Share[4] |
113.42p |
110.71p |
2.4% |
Mid-market price per Zero Dividend Preference
Share[2] |
108.50p |
108.50p |
0.0% |
Discount to Net Asset
Value |
(4.3%) |
(2.0%) |
|
|
As at |
As at |
|
|
30 June |
31 December |
|
|
2023 |
2022 |
|
HURDLE RATES (PER ANNUM) |
|
|
|
Ordinary Shares |
|
|
|
Hurdle rate to return the 30 June 2023 share price
of 132.00p (December 2022: 175.50p) at 28 November
2025[6] |
(1.8%) |
(0.8%) |
|
Zero Dividend Preference
Shares |
|
|
|
Hurdle rate to return the redemption share price
for the 2025 ZDPs of 127.6111p at 28 November
2025[7] |
(30.3%) |
(27.7%) |
|
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2023 |
2022 |
% change* |
BALANCE SHEET |
|
|
|
Gross Assets less Current
Liabilities |
£ 44.6m |
£48.3m |
(7.6%) |
Zero Dividend Preference
Shares |
(£ 16.1m) |
(£15.7m) |
2.7% |
Equity Shareholders’
Funds |
£ 28.5m |
£32.5m |
(12.3%) |
Gearing on Ordinary
Shares[8] |
56.5% |
48.4% |
|
Zero Dividend Preference Share Cover
(non-cumulative)[9] |
2.32x |
2.51x |
|
1 Source: Premier Fund Managers Ltd (“PFM Ltd”).
Based on opening and closing total assets plus dividends marked
“ex-dividend” within the period. |
2 Source: Bloomberg. |
3 Ongoing charges have been based on the Company’s
management fees and other operating expenses as a percentage of
gross assets less current liabilities over the period (excluding
ZDPs’ accrued capital entitlement). |
4 Articles of Association
Basis. |
5 Source: PFM Ltd. Based on opening and closing
NAVs plus dividends marked “ex-dividend”. |
6 Source: PFM Ltd. The Ordinary Shares Hurdle Rate
is the compound rate of growth of the total assets required each
year to meet the Ordinary Share price at 30 June
2023. |
7 Source: PFM Ltd. The ZDP Shares Hurdle Rate is
the compound rate that the total assets could decline each year
until the predetermined redemption date, for ZDP shareholders still
to receive the redemption entitlement. |
8 Source: PFM Ltd. Based on Zero Dividend
Preference Shares divided by Ordinary Shareholders’ Equity at end
of each period. |
9 Source PFM Ltd. Non-cumulative cover = Gross
assets at period end divided by final repayment of ZDP Shares plus
management fees charged to capital. |
*% change is calculated on actual figures, and may
be different from that which could be obtained by using rounded
figures shown within this section. |
CHAIR’S
STATEMENT
for the six months to 30
June 2023
Introduction
Following a difficult 2022, it is disappointing to
record a further deterioration in the first half of 2023. The
renewable energy sector, despite performing well on a fundamental
basis, with higher earnings and dividends being the norm, lost
value as inflation and interest rates continued to
increase.
The macro-economic environment has proved
particularly challenging for what the market perceives to be
interest rate sensitive sectors, commonly referred to as “bond
proxies”. This includes utilities, property, and of relevance to
Premier Miton Global Renewables Trust (“PMGR”), renewable
energy.
A widely held view is that companies with highly
visible revenues in which a large part of investment return is
taken through the dividend, are comparatively less attractive when
yields on government bonds or cash increase. However, this ignores
the positive dynamics applicable to the renewable energy sector,
such as its exceptional growth, government support, and power
prices which remain relatively high despite a recent pull
back.
The primary triggers for inflation are well
understood, primarily the post-covid supply shock exacerbated by
overly loose monetary policy (although central bankers may dispute
the second reason). The debate has now moved on to the question as
to what extent inflation expectations have become “embedded”.
Central bankers, caught behind the curve, are now playing catch up.
Rates, particularly in the UK, have reached higher levels than they
might otherwise have done had monetary tightening started
earlier.
Despite this rather pessimistic macro-economic
backdrop, I believe we are closer to the end of this cycle than the
beginning, and given strong fundamentals, the renewable energy
sector is well placed to rebound when interest rates peak and
potentially start to fall again.
Performance
The Company’s total assets total return, measuring
the performance of the portfolio including costs, was a negative
6.2%. This was however better than the Company’s performance
comparator, the S&P Global Clean Energy Index (GBP adjusted),
which returned a negative 11.5%.
Renewable and clean energy was a distinct market
laggard, with the major western market indices recording gains over
the first half of the year. The US stock market performed well,
although performance was concentrated in the well-known large
capitalisation technology companies. Europe also performed well, but the UK market,
while being in positive territory, was a little way behind
Europe.
Given PMGR’s geared capital structure, movements
in gross assets are amplified in the net assets. The NAV total
return was negative 10.4%.
In common with many other investment trusts,
particularly those focussed on infrastructure, the discount at
which PMGR’s shares trade in comparison to their NAV, widened
during the period, from 12.9% at December
2022, to 15.6% at June
2023.
Despite depressed capital values, income
generation has been strong, reflecting a good operating environment
and the generally strong earnings performance of the portfolio
companies.
Review of the six
months
Renewable energy companies currently face a
variety of headwinds and tailwinds.
European power prices have pulled back from recent
highs but remain elevated in comparison to “pre-Ukraine” levels.
Gas prices, a key determinant of electricity prices, have fallen
back on weak demand from Asia and
a combination of mild weather and low demand in Europe. Europe has made good progress in securing
ship-borne liquified natural gas (“LNG”) to replace piped Russian
gas, but this major market change will inevitably lead to
structurally higher costs in future.
European governments, while increasing renewable
installation targets, have persisted with additional taxes,
increasing sector complexity and risk. The US, through the
“inflation reduction act”, appears to be on a very different track
with huge tax incentives available to the renewable energy sector
to encourage further investment.
Higher financing costs, coupled with equipment
suppliers seeking to restore profitability through higher prices
for items such as wind turbines, have increased the costs of new
build renewable projects. As such, markets have become concerned
that returns on new renewable projects might be under pressure.
However, current levels of power pricing and strong demand for
renewable power, indicate that returns on well-designed projects
should remain attractive.
As noted above, the most significant market driver
over the half was the increase in central bank interest rates. This
has been most pronounced in the UK, where the Bank of England raised its base rate from 3.50% at
December 2022 to 5.00% by
June 2023. Of more relevance to
renewable sector valuations are long dated bond yields, with UK
10-year gilt yields increasing from 3.67% at the close of 2022, to
4.39% by the end of June. By contrast, the US Treasury’s increase
in the Fed Funds rate, from 4.50% to 5.25%, was not reflected in
10-year US treasury yields which were relatively flat over the
half, from 3.87% at the end of 2022 to 3.84% at June 2023.
It is worth remembering that interest rates have
been increased in order to bring down inflation. European renewable
companies in particular often have a high degree of indexation
built into their revenues, therefore benefitting from inflation.
However, this did not stop the sector being sold down on the back
of higher rates.
Earnings and
Dividends
Earnings and dividend growth reported by the
majority of portfolio holdings was very strong, with many companies
reporting exceptionally good results on the back of high power
prices, coupled with continued growth in assets. Dividend receipts
were consequently higher, with net revenue earnings per ordinary
share increasing by 12.2% to 4.43p.
Given the healthy income picture, in April the
Board declared an increased first interim dividend, of 1.85p per
share, paid at the end of June. The Board has now declared a second
interim dividend of 1.85p per share, to be paid on 29 September 2023 and will be marked ex-dividend
on 31 August 2023. These dividends
represent an increase of 5.7% as compared to the dividends paid in
respect of the first half of 2022.
Outlook
The war in Ukraine shows little sign of ending in the
near future. Commodities, and in particular energy, remain volatile
as a result. Further, it could be argued that mild weather and an
effective voluntary rationing programme, has allowed a degree of
complacency to creep into European energy markets. Continued
conflict, a return to demand growth in Asia, and a cold 2023/24 winter could see
another sharp spike in gas and electricity
prices.
The earnings and asset performances of PMGR’s
portfolio holdings have most certainly not been reflected in share
prices over the past twelve months. Over the longer term I believe
this anomaly will be likely to correct when markets again focus on
fundamental value and business performance. Until then, investors’
patience may continue to be tested.
Gillian Nott OBE
Chair
1 August
2023
INVESTMENT MANAGER’S
REPORT
for the six months to 30
June 2023
Market review
While the first half of 2023 proved to be
successful in terms of underlying performance measured by company
earnings and dividends paid, share prices rather frustratingly took
their direction from macroeconomic issues, mainly falling in
price.
It is some consolation that the Trust’s income
levels increased as a result of the strong underlying performances,
and this has enabled the Board to declare an increased
dividend.
Over 2021 and 2022, PMGR’s portfolio has had a
higher exposure to Europe and the
UK and less in North America.
There were a few reasons for this. Firstly, European and UK
renewable energy assets tend to have a higher degree of inflation
linkage within revenues than those in the US, where renewable power
is usually sold on pre-determined fixed prices. Moving into a more
inflationary environment, European and UK companies should
therefore offer more protection against
inflation.
Secondly, we expected UK and European electricity
prices would move higher, to the benefit of renewable generators.
This was due to the structural shift in the gas market, replacing
piped Russian gas with higher priced LNG, increased carbon prices,
and the increasingly unreliable and ageing French nuclear power
stations.
On a basic level, these decisions have turned out
to be largely correct. Many of the UK and European investments have
reported very strong financial results, with increased dividends on
the back of higher power prices and inflation linked revenues.
North American holdings, although benefiting from improved
sentiment generated by the Inflation Reduction Act, have
under-performed Europe in terms of
financial results.
What has come as a disappointment, however, is
that the market has appeared to largely ignore reported financial
results and higher dividends, focussing instead on movements in
short term interest rates.
European Governments and the EU have not helped
matters by imposing windfall taxes onto renewable generators, while
at the same time calling for increased levels of investment. This
has soured investor sentiment, created asymmetric financial risks
and is a disincentive to future
investment.
Portfolio review
The portfolio was almost universally weak, with
only a few positive performances to offset falling share prices.
Despite this, most companies made good operational progress,
business plans tended to be expanded rather than reduced, and
dividends, with just one exception, were either held or
increased.
Given weak share prices, the sector is vulnerable
to corporate activity, and one holding received a takeover offer at
a substantial premium to its share price.
Both geographic and sector allocations were
relatively settled, and portfolio trading activity was lower than
previous years. The UK and Europe
remain the largest allocations, at around 33% each, with Global
(companies operating on a global basis) just over 20%. The holding
in North American companies remains relatively modest at
approximately 8% and we remain of the view that US renewables offer
lower value than European counterparts.
Emerging markets continue to be held at a low
weighting in the portfolio, with China and Latin
America each at approximately 2%.
As in prior years, we categorise core renewable
generation companies into two groups. Firstly, the investment
companies, often referred to as yield companies or “yieldcos”,
which usually acquire built, or construction ready, assets paying
out the majority of cash-flow to investors, and raising capital
through new equity. Secondly, integrated development companies,
which develop projects from first inception, retaining some assets
and raising capital through a combination of retained earnings and
project sales. Together, these form approximately 70% of the
portfolio.
Yieldcos & Funds
As noted above, the renewable energy yield
companies performed poorly in the period. Of the UK focussed names
held, Greencoat UK Wind, NextEnergy Solar, and Foresight Solar, saw
their shares fall by 5.2%, 15.0%, and 17.1% respectively over the
half year. Reported NAVs per share have been robust, with
March 2023 reported NAVs being 11.4%,
0.7% and 6.1% ahead of March 2022
respectively. Essentially, increased interest rates (used as a
“discount rate” to calculate the NAV) have been offset by higher
power price and inflation assumptions. In addition, the companies
have generated cash flows well in excess of dividends paid to
shareholders.
The three UK listed European focussed yieldcos
held also showed a similar dynamic, with Octopus Renewable
Infrastructure, Aquila European Renewables, and Greencoat
Renewables seeing share price declines of 7.9%, 3.0% and 11.4%
respectively. March 2023 NAVs were
3.6%, 6.4%, and 3.1% higher than 12 months earlier, again
demonstrating that higher interest rates have been more than offset
by other factors.
As a result of the opposing movements in share
prices (down) and NAVs (up), these companies are now trading at
meaningful discounts to their published asset values, while also
offering high dividend yields well covered by cash
flows.
The portfolio’s holdings in North American
yieldcos also lost value, with Clearway Energy’s shares falling by
9.8%. Likewise, Atlantica Sustainable Infrastructure fell by 9.5%.
UK listed US Solar Fund fell by 18.5%. The latter two have
undertaken strategic reviews in the half year, and while
Atlantica’s is still in progress, US Solar Fund’s Board has
concluded that the current market backdrop is not conducive to a
sale of the company or its assets. It will however commence a share
buyback programme.
PORTFOLIO SECTOR
ALLOCATION
|
30 June
2023 |
31 December
2022 |
Yieldcos &
funds |
38.1% |
38.9% |
Renewable energy
developers |
32.7% |
29.9% |
Renewable focused
utilities |
8.3% |
9.5% |
Energy
storage |
6.9% |
9.0% |
Biomass generation and
production |
6.0% |
6.8% |
Renewable technology and
service |
3.3% |
2.2% |
Electricity
networks |
2.6% |
2.3% |
Renewable financing and
energy efficiency |
1.3% |
0.0% |
Waste to
energy |
0.9% |
1.3% |
Numbers may not sum to 100% due to
rounding
Source: PFM Ltd
Renewable Energy
Developers
The portfolio contains a larger number of
investments in renewable development companies than yieldcos,
although the average investment size is smaller. Concentrating on
the larger holdings, the position in RWE’s shares fell by 6.5%
despite reporting excellent results for both 2022 and the first
quarter of 2023.
Spanish solar developer, Grenergy Renovables was
one of the few gainers in the portfolio, its shares improving by
1.7%. Grenergy sold one of its development projects at a good price
and sentiment was also improved following a bid for peer company
OPD Energy, also owned, but with a smaller weighting. As a result
of the bid, OPD’s shares gained 49.0% over the six months. The bid
was pre-accepted by its major shareholders and illustrates the
discrepancy between private and public market valuations in the
renewable energy sector.
Also listed in Spain, global developer Acciona Energias saw
its shares fall by 15.3% despite exceptional 2022 financial
results, with net earnings more than doubling from 2021.
Norway listed Bonheur recorded a
share price fall of 9.4%, with a fourfold increase in 2022 net
earnings over 2021 doing little to help the stock. Aside from
renewable energy, Bonheur also owns offshore wind turbine
installation vessels, a market which looks to become increasingly
under-supplied, plus the Fred Olsen Cruise line business. Both
these divisions should see improved earnings in coming
years.
Northland Power is a global renewable developer,
with a particular focus on offshore wind. 2022 results increased
sharply on higher power prices received by their three North Sea
offshore wind farms, and 2023 should see the completion of new
onshore wind assets in the US, plus a large solar farm in
Mexico. Beyond that, Northland is
developing sizable offshore wind projects in the Baltic Sea off
Poland, and off Taiwan. These are expected to commence
commercial operation over 2026 and 2027. Northland’s shares fell by
25.6% over the half year.
PMGR has held the shares of Estonia-listed Baltic developer Enefit Green
since its listing in October 2021,
and one of Enefit’s wind farms is featured on the cover of this
report. It has been a successful investment to date, showing a good
gain over book cost, and aims to more than double operating
capacity by the end of 2025. Its shares managed to hold steady over
the first half of the year.
PORTFOLIO GEOGRAPHIC
ALLOCATION
|
June
2023 |
December
2022 |
United
Kingdom |
33.70% |
36.26% |
Europe (excluding
UK) |
32.74% |
30.72% |
Global |
21.35% |
18.86% |
North
America |
7.69% |
9.16% |
Latin
America |
2.39% |
1.90% |
China |
2.13% |
3.11% |
Source: PFM
Ltd
Other sectors
Biomass producer and generator Drax Group reported
very strong earnings momentum in 2022 (adjusted net earnings up
almost fourfold compared to 2021), and this momentum should
continue into 2023 and 2024, benefitting from forward power sales
already locked in at attractive prices. The UK Government is yet to
decide on possible offtake contracts for a carbon capture plant
investment at the Drax Power station site, however the company has
now shared investment plans for biomass power generation with
carbon capture in the US, the returns on which look both very
attractive while also being less politically contentious. Drax’s
shares fell 17.5% in the first half of the
year.
Ever higher levels of intermittent renewable
energy production mean a greater requirement for energy storage
assets to match power supply with demand. For instance, pumped
hydro storage assets, of the sort owned within the portfolio by SSE
and Drax Group, have seen very good results in recent years and
both companies aim to expand these assets. However, battery storage
is quicker and cheaper to build, and can also provide frequency
regulation services which hydro is not technically able to do.
However, the three battery storage funds held, Harmony Energy, Gore
Street Energy and Gresham House Energy Storage, all lost value in
the half year, with their shares falling by 15.0%, 15.5% and 10.3%
respectively. All three now trade on material discounts to
NAV.
The Renewable focussed utilities segment was, by
some margin, the best performing section of the portfolio. The
Trust holds SSE in the UK, Iberdrola in Spain, and Algonquin Power & Utilities in
North America. Their shares
increased by 7.5%, 9.3% and 23.5% respectively. SSE out-performed
market assumptions for its March 2023
results, while also announcing an almost 50% increase in its
investment plan to 2027 together with faster predicted earnings
growth. Algonquin saw a recovery in its share price following the
poor performance seen in the latter part of
2022.
Income
Strong underlying earnings have manifested in
higher dividends received by the Trust. Notable increases include
Drax Group, which increased its full year dividend by 11.7%,
Acciona Energias increased by 150.0%, Bonheur’s payment increased
by 16.3%, and Enefit Green by 37.7%. Dividends paid by the UK
listed yieldcos sector tend to have high correlation to inflation,
and 2023 should see good dividend increases based on targets
announced during the first half.
The only company to cut its dividend was waste to
energy company China Everbright, where lower construction revenues
meant lower earnings. Its 2022 full year dividend was reduced by
29.4% compared to 2021. However, the other Chinese position, China
Suntien Green Energy, managed to increase its dividend by
15.6%.
Total income received during the half year was
£1.15m, an increase of 5.9%.
Currency
The portfolio was largely hedged against adverse
movements in the Euro and Hong Kong Dollar during the half year,
and currency hedging profits of £0.6m were recorded. Given
sterling’s recent strength against the Euro, the Euro hedge has now
been removed although the currency situation remains under
review.
Portfolio activity
Investment activity levels were relatively modest
over the half year, with purchases of £4.7m and sales also of
£4.7m.
Outlook
European power prices have now fallen back to more
normal levels although remain substantially higher than levels seen
historically. I believe that higher power pricing is a structural
shift, brought about by changes in the gas market, carbon pricing,
and a higher cost of capital for energy
companies.
Given share price movements, it is evident that
this is not necessarily a view held by financial markets, and this
creates potential opportunities for renewable energy
investors.
Further, the climate agenda is only increasing in
importance, and governments have acted to increase targets for
renewable energy production, not least the EU’s RePower EU
programme, the UK Government’s ambitions for offshore wind, and the
US Government’s targets contained within the Inflation Reduction
Act.
Macroeconomic headwinds remain for the time being,
but leading indicators give hope that inflation pressures are now
easing, including deflationary trends in China and sharply falling money supply in the
West. We hope, therefore, for an improved performance in the second
half.
James
Smith
Premier Fund Managers
Limited
1 August
2023
INVESTMENT
PORTFOLIO
at 30 June
2023
Company |
Activity |
Country |
Value£000 |
% of totalinvestments |
Ranking June 2023 |
Ranking December 2022 |
Greencoat UK Wind |
Yieldcos & funds |
United Kingdom |
2,900 |
6.6 |
1 |
2 |
RWE |
Renewable energy
developers |
Europe (ex. UK) |
2,736 |
6.2 |
2 |
4 |
NextEnergy Solar Fund |
Yieldcos & funds |
United Kingdom |
2,617 |
6.0 |
3 |
3 |
Drax Group |
Biomass generation and
production |
United Kingdom |
2,610 |
5.9 |
4 |
1 |
Octopus Renewable
Infrastructure |
Yieldcos & funds |
Europe (ex. UK) |
2,498 |
5.7 |
5 |
5 |
Aquila European
Renewables |
Yieldcos & funds |
Europe (ex. UK) |
2,291 |
5.2 |
6 |
6 |
Atlantica Sustainable
Infrastructure |
Yieldcos & funds |
Global |
2,026 |
4.6 |
7 |
7 |
Grenergy Renovables |
Renewable energy
developers |
Global |
1,815 |
4.1 |
8 |
11 |
Clearway Energy ‘A’ |
Yieldcos & funds |
North America |
1,783 |
4.1 |
9 |
10 |
SSE |
Renewable focused
utilities |
United Kingdom |
1,657 |
3.8 |
10 |
15 |
Foresight Solar Fund |
Yieldcos & funds |
United Kingdom |
1,566 |
3.6 |
11 |
12 |
Bonheur |
Renewable energy
developers |
Europe (ex. UK) |
1,527 |
3.5 |
12 |
16 |
Harmony Energy Income Trust (incl. ‘C’
Shares) |
Energy storage |
United Kingdom |
1,508 |
3.4 |
13 |
9 |
Corp. Acciona Energias
Renovables |
Renewable energy
developers |
Europe (ex. UK) |
1,313 |
3.0 |
14 |
14 |
National Grid |
Electricity networks |
Global |
1,144 |
2.6 |
15 |
18 |
Northland Power |
Renewable energy
developers |
Global |
1,032 |
2.3 |
16 |
17 |
Opdenergy |
Renewable energy
developers |
Global |
1,029 |
2.3 |
17 |
30 |
Iberdrola |
Renewable focused
utilities |
Global |
1,025 |
2.3 |
18 |
8 |
Algonquin Power and
Utilities |
Renewable focused
utilities |
North America |
974 |
2.2 |
19 |
19 |
Enefit Green |
Renewable energy
developers |
Europe (ex. UK) |
822 |
1.9 |
20 |
27 |
Gore Street Energy Storage
Fund |
Energy storage |
United Kingdom |
797 |
1.8 |
21 |
22 |
Cloudberry Clean Energy |
Renewable energy
developers |
Europe (ex. UK) |
751 |
1.7 |
22 |
29 |
Gresham House Energy Storage
Fund |
Energy storage |
United Kingdom |
715 |
1.6 |
23 |
13 |
Eneti |
Renewable technology and
service |
Global |
713 |
1.6 |
24 |
32 |
Cadeler |
Renewable technology and
service |
Europe (ex. UK) |
593 |
1.3 |
25 |
38 |
China Suntien Green
Energy |
Renewable energy
developers |
China |
562 |
1.3 |
26 |
20 |
Greencoat Renewables |
Yieldcos & funds |
Europe (ex. UK) |
513 |
1.2 |
27 |
24 |
US Solar Fund |
Yieldcos & funds |
North America |
508 |
1.2 |
28 |
26 |
7C Solarparken |
Renewable energy
developers |
Europe (ex. UK) |
505 |
1.1 |
29 |
25 |
Omega Energia |
Renewable energy
developers |
Latin America |
455 |
1.0 |
30 |
31 |
MPC Energy Solutions |
Renewable energy
developers |
Latin America |
442 |
1.0 |
31 |
28 |
SDCL Energy Efficiency Income
Trust |
Renewable financing and energy
efficiency |
Global |
371 |
0.8 |
32 |
– |
China Everbright
Environment |
Waste to energy |
China |
371 |
0.8 |
33 |
23 |
GreenVolt |
Renewable energy
developers |
Europe (ex. UK) |
288 |
0.7 |
34 |
40 |
Solaria Energía y Medio
Ambiente |
Renewable energy
developers |
Europe (ex. UK) |
241 |
0.5 |
35 |
39 |
Atrato Onsite Energy |
Renewable energy
developers |
United Kingdom |
224 |
0.5 |
36 |
33 |
Boralex |
Renewable energy
developers |
Global |
214 |
0.5 |
37 |
37 |
GCP Infrastructure |
Renewable financing and energy
efficiency |
United Kingdom |
195 |
0.4 |
38 |
– |
Fusion Fuel Green (incl.
warrants) |
Renewable technology and
service |
Europe (ex. UK) |
155 |
0.4 |
39 |
34 |
Polaris Renewable Energy |
Renewable energy
developers |
Latin America |
150 |
0.4 |
40 |
– |
Innergex Renewable |
Renewable energy
developers |
North America |
109 |
0.3 |
41 |
41 |
Clearvise |
Renewable energy
developers |
Europe (ex. UK) |
102 |
0.3 |
42 |
45 |
Alternus Energy |
Renewable energy
developers |
Europe (ex. UK) |
34 |
0.2 |
43 |
– |
|
|
|
43,881 |
99.9 |
|
|
PMGR Securities 2025 PLC |
ZDP subsidiary |
United Kingdom |
50 |
0.1 |
|
|
Total investments |
|
|
43,931 |
100.0 |
|
|
INTERIM MANAGEMENT
REPORT
Premier Miton Global Renewables Trust PLC is
required to make the following disclosures in its Half Year
Report:
PRINCIPAL RISKS AND
UNCERTAINTIES
The Board believes that the principal risks and
uncertainties faced by the Company continue to fall into the
following categories:
• Structure of the Company and
gearing |
• Repayment of ZDP
Shares |
• Dividend levels |
• Currency risk |
• Liquidity risk |
• Market price risk |
• Discount volatility |
• Operational risk |
• Accounting, legal and regulatory
risk |
• Political intervention |
• Industry regulation |
• Geopolitical risk |
• Climate risk |
Information on each of these, save for Repayment
of ZDP Shares, is given in the Strategic Report in the Annual
Report for the year ended 31 December
2022. Attention is further drawn to the new 2025 ZDP Shares’
liability falling due on 28 November
2025, the repayment of which stands in preference to the
entitlements of Ordinary Shares. A fall in value of the Company’s
portfolio around that time could have a material adverse effect on
the value of the Ordinary Shares.
RELATED PARTY
TRANSACTIONS
The Directors are recognised as a related party
under the Listing Rules and during the six months to 30 June 2023 fees paid to Directors of the
Company totalled £39,860 (six months ended 30 June 2022: £37,700 and year to 31 December 2022:
£75,375).
GOING CONCERN
The Directors believe that, having considered the
Company’s investment objectives (shown on page 1), risk management
policies and procedures, nature of portfolio and income and expense
projections, the Company has adequate resources, an appropriate
financial structure and suitable management arrangements in place
to continue in operational existence for a period of at least 12
months from the date these financial statements were approved. For
these reasons, they consider that the use of the going concern
basis is appropriate. The risks that the Directors considered most
likely to adversely affect the Company’s available resources over
this period were a significant fall in the valuation or a reduction
in the liquidity of the Company’s investment
portfolio.
DIRECTORS’ RESPONSIBILITY
STATEMENT
The Directors are responsible for preparing the
Half Year Report, in accordance with applicable law and
regulations. The Directors confirm that, to the best of their
knowledge:
• The condensed set of Financial Statements within
the Half Year Report has been prepared in accordance with
International Accounting Standards in conformity with the
requirements of the Companies Act 2006 and applicable law;
and
• The Interim Management Report includes a fair
review of the information required by 4.2.7R (indication of
important events during the first six months of the year) and
4.2.8R (disclosure of related party transactions and changes
therein) of the FCA’s Disclosure and Transparency
Rules.
For and on behalf of the
Board
Gillian Nott OBE
Chair
1 August
2023
DIRECTORS AND
ADVISERS
Directors
Gillian Nott OBE – Chair
Melville Trimble –
Chair of the Audit Committee
Victoria Muir –
Chair of the Remuneration Committee
Alternative Investment Fund Manager
(“AIFM”)
Premier Portfolio Managers
Limited
Eastgate Court
High Street
Guildford
Surrey GU1
3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the Financial Conduct
Authority (“FCA”)
Investment Manager
Premier Fund Managers
Limited
Eastgate Court
High Street
Guildford
Surrey GU1
3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by
the
Financial Conduct
Authority
Secretary and Registered
Office
Link Company Matters
Limited
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65 Gresham Street
London EC2V
7NQ
Registrar
Link Group
The Registry
Central Square
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Leeds LS1
4DL
Telephone: 0371 664 0300*
Overseas: +44 (0) 371 664
0300*
E-mail:
shareholderenquiries@linkgroup.co.uk
www.signalshares.com
Depositary
Northern Trust Investor Services
Limited
50 Bank Street
Canary Wharf
London E14
5NT
Authorised by the Prudential Regulation Authority
(“PRA”) and regulated by the FCA and PRA
Custodian
The Northern Trust
Company
50 Bank Street
Canary Wharf
London E14
5NT
Auditor
KPMG LLP
15 Canada Square
London E14
5GL
(resigned 3 July
2023)
Haysmacintyre LLP
10 Queen Street
Place
London EC4R
1AG
(appointed 13 July
2023)
Tax Advisor
Crowe U.K. LLP
55 Ludgate Hill
London EC4M
7JW
Stockbroker
finnCap Capital Markets
One Bartholomew
Close
London EC1A
7BL
Telephone: 0207 220 0500
Ordinary Shares
SEDOL: 3353790GB
LSE: PMGR
Zero Dividend Preference
Shares
SEDOL: BNG43G3GB
LSE: PMGZ
Global Intermediary Identification
Number
GIIN: W6S9MG.00000.LE.826
*Calls are charged at the standard geographic rate
and will vary by provider. Calls outside the United Kingdom will be charged at the
applicable international rate. The Registrar is open between 09:00
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