TIDMUKW
RNS Number : 8163G
Greencoat UK Wind PLC
29 July 2021
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.
29 July 2021
GREENCOAT UK WIND PLC (the "Company")
Half year results to 30 June 2021, Net Asset Value and Dividend
Announcement
Greencoat UK Wind PLC today announces the half year results for
the period to 30 June 2021.
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 cashflow and the prudent use of gearing.
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 1,476GWh of zero carbon electricity.
-- Net cash generation (Group and wind farm SPVs) was GBP 103.6 million .
-- Acquisition of the remaining 50 per cent interest in Braes of
Doune wind farm increased net generating capacity to 1,209MW as at
30 June 2021.
-- Issuance of further shares raising GBP198 million.
-- The Company declared total dividends of 3.59 pence per share with respect to the period.
-- GBP940 million outstanding borrowings as at 30 June 2021, equivalent to 28 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 and continued
strong cash generation as we deliver against our simple, low risk
strategy.
During the period we acquired the remaining 50 per cent of Braes
of Doune wind farm, increasing our net generating capacity to over
1.2GW. We were also pleased with the strong support shown by both
existing and new investors in February's oversubscribed share
placing.
Gearing remains conservative at 28 per cent of GAV and the Group
is fully funded to execute our commitments to acquire Windy Rig,
Twentyshilling and Glen Kyllachy as each commences commercial
operation later this year, which will add a further 130MW of
generating capacity to our portfolio of high quality assets.
NAV
The Company announces that its unaudited Net Asset Value as at
30 June 2021 is GBP2,474.1 million (125.2 pence per share). The
Company's June 2021 Factsheet is available on the Company's
website, www.greencoat-ukwind.com .
Dividend Announcement
The Company also announces a quarterly dividend of 1.795 pence
per share in respect of the period from 1 April 2021 to 30 June
2021.
Dividend Timetable
Ex-dividend date: 12 August 2021
Record date: 13 August 2021
Payment date: 27 August 2021
Key Metrics
As at 30 June 2021:
Market capitalisation GBP2,501.1 million
Share price 126.6 pence
Dividends with respect to the period GBP70.9 million
Dividends with respect to the period per share 3.59 pence
GAV GBP3,414.1 million
NAV GBP2,474.1 million
NAV per share 125.2 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 2021.
Performance
Portfolio generation for the period was 20 per cent below budget
at 1,476GWh. Low wind resource was partially offset by high power
prices, which were above budget as a result of high gas and carbon
prices. Net cash generated by the Group and wind farm SPVs was
GBP103.6 million, providing cover of 1.5x dividends paid during the
period. Full year dividend cover is forecast to be 1.7x.
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 our stated
target of 7.18 pence per share for 2021, the Company has paid a
quarterly dividend of 1.795 pence per share with respect to Q1 2021
and has declared a dividend of the same amount per share with
respect to Q2 2021, giving a total of 3.59 pence per share for the
period (compared to 3.55 pence per share for the first half of
2020). NAV per share increased in the period from 120.4 pence per
share (ex-dividend) on 31 December 2020 to 123.4 pence per share
(ex-dividend) on 30 June 2021, primarily reflecting an increase in
forward power prices over the period 2021-2024.
Acquisitions and Investment
During the period, the Group invested GBP48 million to acquire
the remaining 50 per cent of Braes of Doune wind farm, increasing
net generating capacity to 1,209MW. The Company also invested a
further GBP16 million into Douglas West wind farm which is expected
to commence commercial operation in September 2021. Further
acquisitions are expected to complete in the second half of 2021 as
Windy Rig, Twentyshilling and Glen Kyllachy each commences
commercial operation.
Equity Issuance
In order to finance our continuing growth and pursue value
creating opportunities, we issued 151 million new shares on 19
February 2021 at a price of 131 pence per share, raising gross
proceeds of GBP198 million. The equity issuance was oversubscribed
and issued at a price higher than NAV per share and was therefore
NAV accretive per share.
Gearing
At the start of the period, Group borrowings amounted to GBP1.1
billion (33 per cent of GAV). Following the acquisition of the
remainder of Braes of Doune and the equity issuance detailed above,
as at 30 June 2021 Group borrowings amounted to GBP940 million (28
per cent of GAV), of which GBP700 million was fixed rate term debt.
The Group will generally avoid using non-recourse debt at wind farm
level and aims to keep overall Group level borrowings at a prudent
level (the maximum is 40 per cent of GAV). Over the medium term we
would expect gearing to be between 20 and 30 per cent of GAV.
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
2020, 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 2020, 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 life span of the wind turbines; and
-- health and safety and the environment.
To date, the COVID-19 pandemic has caused only minor portfolio
operational issues and we remain vigilant to mitigate any further
impacts.
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 Board believes that there will be opportunities to invest in
more projects operating under the ROC regime and in a balance of
subsidy free wind farms and those operating under the CFD
regime.
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
Following the advice of the government on social distancing and
measures to prohibit public gathering in order to minimise the
spread of COVID-19, the Company held its AGM with the minimum
necessary quorum of two shareholders present. A recording of the
AGM was made and is available for shareholders on the Company's
website (www.greencoat-ukwind.com). The Company realises that such
an arrangement is not ideal and is keen to provide the opportunity
for investors to meet with the Board and executive management as
normal in 2022.
Shonaid Jemmett-Page
Chairman
28 July 2021
Investment Manager's Report
Investment Portfolio
Operating portfolio as at 30 June 2021:
Wind Farm Turbines Operator PPA Total Ownership Net
MW Stake MW
---------------- ---------- --------------- ------------- ------ ---------- --------
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 Centrica 72.0 100% 72.0
Brockaghboy Nordex SSE SSE 47.5 100% 47.5
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
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
Humber Gateway Vestas RWE RWE 219.0 37.8% 82.8
Kildrummy Enercon BayWa Sainsbury's 18.4 100% 18.4
Langhope Rig GE Natural 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
Tom nan Clach Vestas Natural Power CFD 39.1 75% 29.3
Walney Siemens Orsted SSE 367.2 25.1% 92.2
Yelvertoft Senvion BayWa Statkraft 16.4 51.6% 8.5
Total (1) 1,209.2
------------------------------------------------------------ ------ ---------- --------
(1) Numbers do not cast owing to rounding of (0.2) M W.
Portfolio Performance
Portfolio generation for the six months ended 30 June 2021 was
1,476GWh, 20 per cent below budget, reflecting low wind
resource.
Notable issues affecting portfolio availability were:
-- various unplanned outages at Corriegarth, with extended
periods of shutdown due to adverse weather conditions and
restricted site access in January and February and due to a
shortage of operation and maintenance resources;
-- pitch motor faults at Dunmaglass, with repair and replacement
work hindered by adverse weather conditions;
-- several grid outages affecting North Hoyle in March, April
and May, including overhead line repairs; and
-- a shortage of operation and maintenance resources at
Middlemoor, following the transition of turbine operation and
maintenance from Vestas to RWE and including a COVID-19 outbreak in
January.
Last year's large offshore investments are performing well, with
above budget availability during the period at both Humber Gateway
and Walney.
During the period, BayWa acquired part of the operational
management business of DNV-GL, which included Operational
Management Agreements at Braes of Doune, Carcant, Maerdy and North
Rhins. BayWa now operates 13 sites in the Group's portfolio.
A new PPA with Erova is in place at North Hoyle, with ROCs being
sold to Total under a separate agreement. The new offtake
agreements benefit from significantly higher pricing and replace
the previous PPA with RWE which covered power and ROCs.
Health and Safety
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 focussed 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.
Acquisitions and Investment
On 23 February 2021, the Group acquired the remaining 50 per
cent interest in Braes of Doune wind farm from Hermes for a
consideration of GBP48.1 million. The Group has been invested in
this wind farm since listing and the wind farm receives 1 ROC per
MWh.
During the period, the Group funded incremental investment of
GBP16 million in the 45MW Douglas West subsidy free wind farm
project, which is expected to commence full commercial operation in
September 2021. The wind farm exported its first power on 7 July
2021 and is in the final stages of commissioning. A total of GBP44
million was invested as at 30 June 2021 (in line with the total
investment budget of GBP50 million).
The following further subsidy free wind farm acquisitions are
expected to complete in H2 2021 as each wind farm commences
commercial operation (commitments made in 2019):
Wind Farm MW GBPm COD
Windy Rig 43.2 52.7 Sep 2021
------ ------ ---------
Twentyshilling 37.8 51.4 Oct 2021
------ ------ ---------
Glen Kyllachy 48.5 57.5 Nov 2021
------ ------ ---------
Total 129.5 161.6
------ ------ ---------
The Company has GBP160 million undrawn commitments available
under its revolving credit facility (GBP400 million total
commitments).
Equity Issuance
On 19 February 2021, the Company issued 151 million new shares
at a price of 131 pence per share, raising gross proceeds of GBP198
million.
Gearing
As at 30 June 2021, the Group had GBP 940 million of debt
outstanding, equating to 28 per cent of GAV (limit 40 per
cent).
Debt outstanding comprised term debt of GBP 700 million
(together with associated interest rate swaps) and GBP 240 million
drawn under the Company's revolving credit facility.
All borrowing is at Company level (no debt at wind farm
level).
Financial Performance
Power prices during the period were above budget as a result of
high gas and carbon prices. The average N2EX Day Ahead price was
GBP 68.45 /MWh (H1 2020: GBP 28.48 ).
Net cash generated by the wind farm SPVs was GBP 103.6
million.
Dividend cover for the period was 1.5x, reflecting low
generation and high power prices. Full year dividend cover is
forecast to be 1.7 x.
Cash balances (Group and wind farm SPVs) increased by GBP 1.3
million to GBP 95.1 million.
For the six months ended
Group and wind farm SPV cashflows 30 June 2021
------------------------------------------------- -------------------------
GBP'000
Net cash generation (1) 103,574
Dividends paid (67,846)
Acquisitions (2) (64,264)
Acquisition costs (3) (4,848)
Equity issuance 197,618
Equity issuance costs (2,933)
Net repayment under debt facilities (160,000)
Upfront finance costs (43)
Movement in cash (Group and wind farm SPVs) 1,258
Opening cash balance (Group and wind farm SPVs) 93,820
------------------------------------------------- -------------------------
Closing cash balance (Group and wind farm SPVs) 95,078
Net cash generation 103,574
Dividends 67,846
Dividend cover 1.5x
------------------------------------------------- -------------------------
(1) Alternative Performance Measure as defined below.
(2) GBP48.1m Braes of Doune plus GBP16.1m incremental investment
in Douglas West (GBP20.4m injected less GBP4.3m increase in Douglas
West cash balance).
(3) GBP4.4m Humber Gateway plus GBP0.2m Kype Muir Extension plus
GBP0.2m Braes of Doune.
The following 2 tables provide further detail in relation to net
cash generation of GBP 103.6 million:
For the six months ended
Net Cash Generation - Breakdown 30 June 2021
--------------------------------- -------------------------
GBP'000
Revenue 211,626
Operating expenses (74,484)
Tax (10,135)
Other (206)
--------------------------------- -------------------------
Wind farm cashflow 126,801
Management fee (10,024)
Operating expenses (863)
Ongoing finance costs (11,240)
Other 300
--------------------------------- -------------------------
Group cashflow (21,827)
VAT (Group and wind farm SPVs) (1,400)
Net cash generation 103,574
--------------------------------- -------------------------
For the six months ended
Net Cash Generation - Reconciliation to Net Cash Flows from Operating Activities 30 June 2021
---------------------------------------------------------------------------------- -------------------------
GBP'000
Net cash flows from operating activities (1) 129,561
Decrease in cash balances of wind farm SPVs (2) (16,191)
Increase in Douglas West cash balance (2) (4,255)
Repayment of shareholder loan investment (1) 5,699
Finance costs (1) (11,283)
Upfront finance costs (cash) (3) 43
---------------------------------------------------------------------------------- -------------------------
Net cash generation 103,574
---------------------------------------------------------------------------------- -------------------------
(1) Consolidated Statement of Cash Flows.
(2) Note 8 to the financial statements.
(3) Movement in other finance costs payable (note 11 to the
financial statements).
Investment Performance
GBP'm
--------
NAV at 31 December 2020 2,229.9
Investment 64.3
Movement in portfolio valuation 14.9
Movement in cash (Group and wind farm SPVs) 1.3
Movement in other relevant assets/liabilities 3.9
Movement in Aggregate Group Debt 160.0
NAV at 30 June 2021 (1) 2,474.1
----------------------------------------------- --------
(1) Numbers do not cast owing to rounding of GBP(0.2)
million.
The increase in the portfolio valuation of GBP 14.9 million
equates to approximately 1 pence per share, which can be further
broken down as follows: +4 pence from an increase in forward power
prices over the period 2021-2024; -2 pence from an increase in the
modelled corporation tax rate over the medium term; and -1 pence
other.
Total dividends of GBP 67.8 million were paid in the period.
Reconciliation of Statutory Net Assets to Reported NAV
As at As at
30 June 2021 31 December 2020
GBP'000 GBP'000
---------------------------- -------------- ------------------
Operating portfolio 3,278,659 3,216,563
Construction portfolio 44,323 27,273
Cash (wind farm SPVs) 69,741 85,932
---------------------------- -------------- ------------------
Fair value of investments 3,392,723 3,329,768
Cash (Group) 25,337 7,888
Other relevant liabilities (3,925) (7,783)
---------------------------- -------------- ------------------
GAV 3,414,135 3,329,873
Aggregate Group Debt (940,000) (1,100,000)
---------------------------- -------------- ------------------
NAV 2,474,135 2,229,873
Reconciling items - -
---------------------------- -------------- ------------------
Statutory net assets 2,474,135 2,229,873
Shares in issue 1,975,598,608 1,824,129,348
NAV per share (pence) 125.2 122.2
---------------------------- -------------- ------------------
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 2020
was 6.9 per cent. The blended portfolio discount rate as at 30 June
2021 increased to 7.0 per cent, reflecting a slightly greater
proportion of merchant cash flows. The underlying discount rates
that are applied to fixed and merchant cash flows have not changed
since December 2020.
As there is no debt at wind farm level, 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 3.3 per cent to
2030 and 2.3 per cent thereafter for RPI and 2.3 per cent (all
years) for CPI.
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 P90 ( 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.
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 25GW of operating UK wind farms (14GW
onshore plus 11GW offshore). In monetary terms, the secondary
market for operating UK wind farms is over GBP70 billion. The Group
currently has a market share of approximately 5 per cent. As at 30
June 2021, the average age of the portfolio was 7 years (versus 5
years at listing in March 2013).
In November 2020, in advance of the delayed COP26 conference
scheduled for November 2021 in Glasgow, the Prime Minister
announced a 10 point plan for the delivery of the 2050 net zero
emissions target. A key part of that plan is a 40GW offshore wind
target for 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.
It is anticipated that the Group will continue to invest in ROC
wind farms, with CFD wind farms and subsidy free wind farms
continuing to provide further diversified pipeline opportunities.
At all times, the Group will maintain a balanced portfolio, in line
with the Company's investment objective.
Power prices have increased materially from lows seen in 2020,
both in terms of H1 2021 (GBP68.45/MWh) and in terms of the forward
curve (H2 2021 GBP94/MWh, 2022 GBP74/MWh, 2023 GBP60/MWh, 2024
GBP58/MWh). In the current year, fixed cash flows represent 48 per
cent of total cash flows (52 per cent merchant) and fixed cash
flows contribute 59 per cent of the total DCF value over the life
of the portfolio (41 per cent merchant).
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
28 July 2021
Condensed Consolidated Statement of Comprehensive Income
(unaudited)
For the six months ended 30 June 2021
For the six months ended For the six months ended
Note 30 June 2021 30 June 2020
GBP'000 GBP'000
--------------------------------------------------------- ----- ------------------------- -------------------------
Return on investments 3 140,171 52,889
Other income 889 534
--------------------------------------------------------- ----- ------------------------- -------------------------
Total income and gains 141,060 53,423
Operating expenses 4 (12,256) (10,710)
Investment acquisition costs (339) (796)
--------------------------------------------------------- ----- ------------------------- -------------------------
Operating profit 128,465 41,917
Finance expense 12 (11,792) (9,448)
--------------------------------------------------------- ----- ------------------------- -------------------------
Profit for the period before tax 116,673 32,469
Tax 5 - -
--------------------------------------------------------- ----- ------------------------- -------------------------
Profit for the period after tax 116,673 32,469
Profit and total comprehensive income attributable to:
Equity holders of the Company 116,673 32,469
Earnings per share
--------------------------------------------------------- ----- ------------------------- -------------------------
Basic and diluted earnings from continuing operations in
the period (pence) 6 6.03 2.14
--------------------------------------------------------- ----- ------------------------- -------------------------
The accompanying notes form an integral part of the financial
statements.
Condensed Consolidated Statement of Financial Position
(unaudited)
As at 30 June 2021
Note 30 June 2021 31 December 2020
GBP'000 GBP'000
-------------------------------------------------- ----- ------------- -----------------
Non current assets
Investments at fair value through profit or loss 8 3,392,723 3,329,768
-------------------------------------------------- ----- ------------- -----------------
3,392,723 3,329,768
Current assets
Receivables 10 444 634
Cash and cash equivalents 25,337 7,888
-------------------------------------------------- ----- ------------- -----------------
25,781 8,522
Current liabilities
Payables 11 (4,369) (8,417)
-------------------------------------------------- ----- ------------- -----------------
Net current assets 21,412 105
Non current liabilities
Loans and borrowings 12 (940,000) (1,100,000)
Net assets 2,474,135 2,229,873
-------------------------------------------------- ----- ------------- -----------------
Capital and reserves
Called up share capital 14 19,756 18,241
Share premium account 14 2,028,397 1,834,477
Retained earnings 425,982 377,155
-------------------------------------------------- ----- ------------- -----------------
Total shareholders' funds 2,474,135 2,229,873
-------------------------------------------------- ----- ------------- -----------------
Net assets per share (pence) 15 125.2 122.2
-------------------------------------------------- ----- ------------- -----------------
Authorised for issue by the Board on 28 July 2021 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 2021
For the six months ended
30 June 2021 Note 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 14 1,515 196,853 - 198,368
Share issue costs 14 - (2,933) - (2,933)
Profit and total comprehensive income for the
period - - 116,673 116,673
Interim dividends paid in the period 7 - - (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.
For the six months ended
30 June 2020 Share capital Share premium Retained earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------------------- -------------- -------------- ------------------ ----------
Opening net assets attributable to shareholders (1
January 2020) 15,175 1,442,218 385,373 1,842,766
Issue of share capital 6 744 - 750
Profit and total comprehensive income for the
period - - 32,469 32,469
Interim dividends paid in the period - - (53,282) (53,282)
Closing net assets attributable to shareholders 15,181 1,442,962 364,560 1,822,703
---------------------------------------------------- -------------- -------------- ------------------ ----------
The total reserves distributable by way of a dividend as at 30
June 2020 were GBP303,387,756.
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 2021
For the six For the six
months ended months ended
Note 30 June 2021 30 June 2020
GBP'000 GBP'000
--------------------------------------- ----- -------------- --------------
Net cash flows from operating
activities 16 129,561 81,723
Cash flows from investing activities
Acquisition of investments 8 (68,519) (56,494)
Investment acquisition costs (4,848) (851)
Repayment of shareholder loan
investments 8 5,699 14,792
--------------------------------------- ----- -------------- --------------
Net cash flows from investing
activities (67,668) (42,553)
Cash flows from financing activities
Issue of share capital 14 197,618 -
Payment of issue costs 14 (2,933) -
Amounts drawn down on loan facilities - 27,000
Amounts repaid on loan facilities 12 (160,000) -
Finance costs (11,283) (9,227)
Dividends paid 7 (67,846) (53,282)
--------------------------------------- ----- -------------- --------------
Net cash flows from financing
activities (44,444) (35,509)
Net increase in cash and cash
equivalents during the period 17,449 3,661
Cash and cash equivalents at
the beginning of the period 7,888 24,717
Cash and cash equivalents at
the end of the period 25,337 28,378
--------------------------------------- ----- -------------- --------------
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 2021
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 2020 and are expected to continue to
apply in the Group's consolidated financial statements for the year
ended 31 December 2021.
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 2020. The audited annual accounts for the year ended 31
December 2020 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 2021, the Group had net assets of GBP 2,474.1
million (31 December 2020: GBP2,229.9 million) and cash balances of
GBP 25.3 million (31 December 2020: GBP7.9 million) which are
sufficient to meet current obligations as they fall due.
In the period since early 2020 and up to the date of this
report, the outbreak of COVID-19 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;
-- 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. At the Group
level, the key personnel at the Investment Manager and
Administrator have successfully implemented business continuity
plans to ensure business disruption is minimised, including remote
working, and all staff are continuing to assume their day-to-day
responsibilities.
SPV revenues are derived from the sale of electricity, and
although 52 per cent of the portfolio's revenue during the period
is exposed to the floating power price, revenue is received through
power purchase agreements in place with large and reputable
providers of electricity to the market and also through government
subsidies. In the period since early 2020 and up to the date of
this report, there has been no significant impact on revenue and
cash flows of the SPVs. The SPVs have contractual operating and
maintenance agreements in place with large and reputable providers.
Therefore the Directors and the Investment Manager do not
anticipate a threat to the Group's revenue.
Wind farm availability has not been significantly affected: wind
farms may be accessed and operated remotely in some instances;
otherwise social distancing has been possible in large part and
personal protective equipment has been used where not possible, for
instance where major component changes have been necessary. The
Investment Manager is confident that there are appropriate
continuity plans in place at each provider to ensure that the
underlying wind farms are maintained appropriately and that any
faults would continue to be addressed in a timely manner.
Based on the assessment outlined above, including the various
risk mitigation measures in place, the Directors do not consider
that the effects of COVID-19 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 has adequate resources to continue in operational existence
for at least 12 months from the date of approval of this report.
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 of Directors, 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 66 of the Company's Annual Report for
the year ended 31 December 2020.
Investment management fees paid or accrued in the period were as
follows:
For the six months ended For the six months ended
30 June 2021 30 June 2020
GBP'000 GBP'000
---------------- ------------------------- -------------------------
Cash Fee 10,038 8,114
Equity Element 750 750
-----------------
10,788 8,864
---------------- ------------------------- -------------------------
As at 30 June 2021, total amounts payable to the Investment
Manager were GBPnil (31 December 2020: GBP13,474 receivable).
3. Return on investments
For the six months ended For the six months ended
30 June 2021 30 June 2020
GBP'000 GBP'000
----------------------------------------------------------- ------------------------- -------------------------
Dividends received (note 17) 121,101 82,991
Interest on shareholder loan investment received 18,935 10,758
Unrealised movement in fair value of investments (note 8) 135 (40,860)
140,171 52,889
----------------------------------------------------------- ------------------------- -------------------------
4. Operating expenses
For the six months ended For the six months ended
30 June 2021 30 June 2020
GBP'000 GBP'000
--------------------------------------------------- ------------------------- -------------------------
Management fees (note 2) 10,788 8,864
Group and SPV administration fees 434 382
Non-executive Directors' fees 135 136
Other expenses 830 1,277
Fees to the Company's Auditor:
for audit of the statutory financial statements 65 47
for other audit related services 4 4
--------------------------------------------------- ------------------------- -------------------------
12,256 10,710
--------------------------------------------------- ------------------------- -------------------------
The fees to the Company's Auditor includes GBP3,838 (30 June
2020: GBP3,800) 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 2021 is
GBPnil (30 June 2020: GBPnil). The Group has tax losses carried
forward available to offset against current and future profits as
at 30 June 2021 of GBP 23,032,849 (30 June 2020:
GBP18,931,040).
6. Earnings per share
For the six months ended For the six months ended
30 June 2021 30 June 2020
---------------------------------------------------------------- ------------------------- -------------------------
Profit attributable to equity holders of the Company - GBP'000 116,673 32,469
Weighted average number of ordinary shares in issue 1,933,649,612 1,517,908,160
---------------------------------------------------------------- ------------------------- -------------------------
Basic and diluted earnings from continuing operations in the
period (pence) 6.03 2.14
---------------------------------------------------------------- ------------------------- -------------------------
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 material impact on the basic earnings per
share.
7. Dividends declared with respect to the period
Interim dividends paid during the period ended 30 June 2021 Dividend per share Total dividend
pence GBP'000
------------------------------------------------------------- ------------------- ---------------
With respect to the quarter ended 31 December 2020 1.775 32,384
With respect to the quarter ended 31 March 2021 1.795 35,462
3.570 67,846
------------------------------------------------------------- ------------------- ---------------
Interim dividends declared after 30 Dividend
June 2021 and not accrued in the period per share Total dividend
pence GBP'000
------------------------------------------ ----------- ---------------
With respect to the quarter ended 30
June 2021 1.795 35,467
-----------
1.795 35,467
------------------------------------------ ----------- ---------------
As disclosed in note 18 , on 29 July 2021 , the Board approved a
dividend of 1.795 pence per share with respect to the quarter ended
30 June 2021, bringing the total dividends declared with respect to
the period to 3.59 pence per share. The record date for the
dividend is 13 August 2021 and the payment date is 27 August 2021
.
8. Investments at fair value through profit or loss
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
----------------------------------------------------------- -------- ---------------- ----------
For the period ended 30 June 2020 Loans Equity interest Total
GBP'000 GBP'000 GBP'000
----------------------------------------------------------- --------- ---------------- ----------
Opening balance 360,698 2,062,508 2,423,206
Additions 27,758 28,736 56,494
Repayment of shareholder loan investments (14,792) - (14,792)
Restructure of shareholder loan investments 50,500 (50,500) -
Unrealised movement in fair value of investments (note 3) 25 (40,885) (40,860)
----------------------------------------------------------- --------- ---------------- ----------
424,189 1,999,859 2,424,048
----------------------------------------------------------- --------- ---------------- ----------
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 2021 30 June 2020
GBP'000 GBP'000
----------------------------------------------------- ------------------------- -------------------------
Increase/(decrease) in portfolio valuation 14,882 (39,323)
Repayment of shareholder loan investments (note 17) 5,699 14,792
Decrease in cash balances of SPVs (16,191) (16,329)
Increase in Douglas West cash balance (4,255) -
135 (40,860)
----------------------------------------------------- ------------------------- -------------------------
Fair value measurements
As disclosed on pages 70 and 71 of the Company's Annual Report
for the year ended 31 December 2020 , 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 2021.
Sensitivity analysis
The fair value of the Group's investments is GBP 3,392,722,935
(31 December 2020: GBP3,329,768,023). The analysis below is
provided in order 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 7.0 per cent + 0.5 per cent (101,328) (5.1)
- 0.5 per cent 107,074 5.4
RPI: 3.3 per cent to
2030, 2.3 per cent
Long term inflation thereafter
rate CPI: 2.3 per cent - 0.5 per cent (102,935) (5.2)
+ 0.5 per cent 108,222 5.5
Energy yield P50 10 year P90 (197,837) (10.0)
10 year P10 197,848 10.0
Forecast by leading
Power price consultant - 10 per cent (168,463) (8.5)
+ 10 per cent 168,022 8.5
Asset life 30 years - 5 years (125,028) (6.3)
+ 5 years 83,172 4.2
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 2021
---------------- ------------------- -------------------------
Braes of Doune Scotland 100%
As at 31 December 2020 the Group had an associate holding
representing 50 per cent of Braes of Doune. During the period the
Group acquired the remaining 50 per cent interest and therefore has
reclassified its investment in Braes of Doune as an unconsolidated
subsidiary.
There are no other changes to the unconsolidated subsidiaries or
the associates and joint ventures of the Group as disclosed on
pages 72 and 73 of the Company's Annual Report for the year ended
31 December 2020.
There are no changes to guarantees and counter-indemnities
provided by the Group, as disclosed on page 73 of the Company's
Annual Report for the year ended 31 December 2020.
10. Receivables
31 December
30 June 2021 2020
GBP'000 GBP'000
------------------- ------------- ------------
VAT receivable 251 480
Prepayments 131 90
Other receivables 62 64
444 634
------------------- ------------- ------------
11. Payables
30 June 2021 31 December 2020
GBP'000 GBP'000
----------------------------- ------------- -----------------
Loan interest payable 3,741 3,045
Commitment fee payable 185 328
Acquisition costs payable 21 4,538
Other finance costs payable - 43
Other payables 422 463
4,369 8,417
----------------------------- ------------- -----------------
12. Loans and borrowings
30 June 2021 31 December 2020
GBP'000 GBP'000
--------------------------- ------------- -----------------
Opening balance 1,100,000 600,000
Revolving credit facility
Drawdowns - 780,000
Repayments (160,000) (380,000)
Term debt facilities
Drawdowns - 100,000
Closing balance 940,000 1,100,000
--------------------------- ------------- -----------------
For the six months ended For the six months ended
30 June 2021 30 June 2020
GBP'000 GBP'000
--------------------- ------------------------- -------------------------
Loan interest 11,410 8,452
Commitment fees 312 926
Other facility fees 70 70
--------------------- ------------------------- -------------------------
Finance expense 11,792 9,448
--------------------- ------------------------- -------------------------
The loan balance as at 30 June 2021 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 75 of the Company's Annual
Report for the year ended 31 December 2020.
As at 30 June 2021, the balance of this facility was
GBP240,000,000 (31 December 2020: GBP400,000,000), accrued interest
was GBP965,723 (31 December 2020: GBP410,767) and the outstanding
commitment fee payable was GBP185,205 (31 December 2020:
GBP327,671).
The Company's term debt facilities and associated interest rate
swaps, with various maturity dates, are set out in the below
table:
Provider Maturity date Loan margin Swap fixed rate Loan principal Accrued interest at 30 June 2021
% % GBP'000 GBP'000
---------- ------------------ ------------ ---------------- --------------- ---------------------------------
NAB 7 June 2022 0.75 0.0464 50,000 60
CBA 22 July 2022 1.65 1.9410 75,000 457
CBA 22 July 2022 1.65 1.2260 25,000 122
NAB 1 November 2023 1.20 1.4280 75,000 297
NAB 1 November 2023 1.20 0.7725 25,000 74
CBA 7 December 2023 1.00 0.1130 50,000 95
CBA 14 November 2024 1.35 0.8075 50,000 183
CBA 6 March 2025 1.55 1.5265 50,000 261
CIBC 3 November 2025 1.50 1.5103 100,000 454
NAB 1 November 2026 1.50 1.5980 75,000 350
NAB 1 November 2026 1.50 0.8425 25,000 88
CIBC 14 November 2026 1.40 0.81325 100,000 334
700,000 2,775
----------------------------- ------------ ---------------- --------------- ---------------------------------
13. Contingencies and commitments
As at 30 June 2021, the Group has invested GBP44 million in the
Douglas West wind farm project. Commercial operation is scheduled
to commence in September 2021 with a total expected investment of
GBP50 million.
In October 2019 , the Group announced that it had agreed to
acquire the Glen Kyllachy wind farm project for a headline
consideration of GBP57.5 million. The investment is scheduled to
complete in November 2021 once the wind farm is fully
operational.
In December 2019, the Group announced that it had agreed to
acquire the Windy Rig and Twentyshilling wind farm projects for a
combined headline consideration of GBP104.1 million. The
investments are scheduled to complete in September 2021 and October
2021 respectively, once each wind farm is fully operational.
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 will also
provide construction finance of up to GBP47 million.
14. Share capital - ordinary shares of GBP0.01
Six months to 30 June 2021
Date Issued and fully paid Number of shares issued Share capital Share premium Total
GBP'000 GBP'000 GBP'000
------------------ ------------------------- ------------------------ -------------- -------------- ----------
1 January 2021 1,824,129,348 18,241 1,834,477 1,852,718
Shares issued to the Investment Manager
True-up of 2020 and
5 February 2021 Q1 2021 Equity Element 308,798 3 372 375
7 May 2021 Q2 2021 Equity Element 306,862 3 372 375
615,660 6 744 750
Other
19 February 2021 Capital raise 150,853,600 1,509 196,109 197,618
19 February 2021 Less share issue costs - - (2,933) (2,933)
-------------- ----------
30 June 2021 1,975,598,608 19,756 2,028,397 2,048,153
--------------------------------------------- ------------------------ -------------- -------------- ----------
15. Net assets per share
30 June 2021 31 December 2020
---------------------------------- -------------- -----------------
Net assets - GBP'000 2,474,135 2,229,873
Number of ordinary shares issued 1,975,598,608 1,824,129,348
---------------------------------- -------------- -----------------
Total net assets - pence 125.2 122.2
---------------------------------- -------------- -----------------
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 2021 30 June 2020
GBP'000 GBP'000
----------------------------------------------------- ------------------------- -------------------------
Operating profit for the period 128,465 41,917
Adjustments for:
Movement in fair value of investments (notes 3 & 8) (135) 40,860
Investment acquisition costs 339 796
Decrease/(increase) in receivables (note 10) 190 (90)
Decrease in payables (48) (2,510)
Equity Element of Investment Manager's fee (note 2) 750 750
Net cash flows from operating activities 129,561 81,723
----------------------------------------------------- ------------------------- -------------------------
17. Related party transactions
During the period, the Company increased its loan to Holdco by
GBP48,400,000 (30 June 2020: GBP27,000,000) and Holdco made
repayments of GBP103,273,112 (30 June 2020: GBP71,166,228). The
amount outstanding at the period end was GBP2,080,082,580 (31
December 2020: GBP2,134,955,692).
The below table shows dividends received in the period from the
Group's investments.
For the six months ended For the six months ended
30 June 2021 30 June 2020
GBP'000 GBP'000
------------------------ ------------------------- -------------------------
Humber Holdco (1) 15,760 -
Clyde 14,954 12,128
Walney 11,525 -
Stroupster 6,673 2,291
Braes of Doune 6,330 2,712
Brockaghboy 6,170 5,454
Corriegarth (2) 5,859 2,723
SYND Holdco (3) 4,622 3,865
Fenlands (4) 4,436 2,876
Stronelairg Holdco (5) 4,379 9,231
Rhyl Flats 4,266 3,343
ML Wind (6) 3,528 3,479
Dunmaglass Holdco (7) 3,072 3,772
North Hoyle 2,788 3,756
Maerdy 2,708 2,558
Bishopthorpe 2,405 2,032
Cotton Farm 2,376 3,289
Tappaghan 2,361 2,320
Little Cheyne Court 2,296 2,993
Kildrummy 2,248 2,771
Slieve Divena 1,989 1,799
Earl's Hall Farm 1,806 1,809
Langhope Rig 1,713 1,786
Bicker Fen 1,478 1,274
Slieve Divena II 1,416 -
Screggagh 1,383 1,312
Bin Mountain 984 830
Carcant 916 1,013
Church Hill 660 -
Tom Nan Clach - 1,575
121,101 82,991
------------------------ ------------------------- -------------------------
(1) The Group's investment in Humber Gateway is held through
Humber Holdco.
(2) The Group's investment in Corriegarth was previously held
through Corriegarth Wind Energy Holdings Limited, until 27 April
2020, at which point the investment was restructured. Corriegarth
Wind Energy Holdings Limited was dissolved in September 2020.
(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 investment in Stronelairg is held through
Stronelairg Holdco.
(6) The Group's investments in Middlemoor and Lindhurst are held
through ML Wind.
(7) The Group's investment in Dunmaglass is held through
Dunmaglass Holdco.
The table below shows the Group's shareholder loans with the
wind farm investments.
Accrued
Loans Loans advanced Loans interest
at 1 January in the Loan repayments at 30 at 30 June
2021(1) period in the period June 2021 2021 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------------- ------------------ --------------------- ----------- ---------------- --------
Walney 172,727 - - 172,727 1,732 174,459
Stronelairg 86,619 - - 86,619 1,296 87,915
Tom nan Clach 85,874 - (3,685) 82,189 1,054 83,243
Clyde 71,503 - - 71,503 1,052 72,555
Dunmaglass 56,864 - - 56,864 851 57,715
Corriegarth 42,553 - - 42,553 637 43,190
Douglas West 19,217 20,381 - 39,598 1,566 41,164
Crighshane 24,665 - (1,641) 23,024 217 23,241
Slieve Divena
II 22,182 - - 22,182 208 22,390
Church Hill 15,075 - (373) 14,702 138 14,840
597,279 20,381 (5,699) 611,961 8,751 620,712
--------------- ---------------- ------------------ --------------------- ----------- ---------------- --------
(1) Excludes accrued interest at 31 December 2020 of
GBP10,675,825.
18. Subsequent events
On 29 July 2021 , the Board approved a dividend of GBP35.5
million equivalent to 1.795 pence per share. The record date for
the dividend is 13 August 2021 and the payment date is 27 August
2021 .
Company Information
Directors (all non-executive) Registered Company Number
Shonaid Jemmett-Page (Chairman) 08318092
William Rickett C.B.
Martin McAdam Registered Office
Lucinda Riches C.B.E 27-28 Eastcastle Street
Caoimhe Giblin London W1W 8DH
Investment Manager Registered Auditor
Greencoat Capital LLP BDO LLP
4th Floor, The Peak 55 Baker Street
5 Wilton Road London W1U 7EU
London SW1V 1AN
Administrator and Company Secretary Joint Broker
Ocorian Administration (UK) Limited RBC Capital Markets
The Innovation Centre 100 Bishopsgate
Northern Ireland Science Park London EC2N 4AA
Queen's Road
Belfast BT3 9DT
Depositary Joint Broker
Ocorian Depositary (UK) Limited Jefferies International Limited
The Innovation Centre 100 Bishopsgate
Northern Ireland Science Park London EC2N 4JL
Queen's Road
Belfast BT3 9DT
Registrar
Computershare
The Pavilions
Bridgewater Road
Bristol BS13 8AE
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
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
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
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
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 Holdco and Douglas West Wind
Farm
Douglas West Wind Farm 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
Group means Greencoat UK Wind PLC and Greencoat UK Wind Holdco
Limited
Holdco means Greencoat UK Wind Holdco 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
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
N2EX means the N2EX Day Ahead auction price
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
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
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 SEIFMAEFSEEW
(END) Dow Jones Newswires
July 29, 2021 02:00 ET (06:00 GMT)
Greencoat Uk Wind (LSE:UKW)
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