TIDMUKW
RNS Number : 3193H
Greencoat UK Wind PLC
27 July 2023
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.
27 July 2023
GREENCOAT UK WIND PLC
(the "Company")
Half year results to 30 June 2023, Net Asset Value and Dividend
Announcement
Greencoat UK Wind PLC today announces the half year results for
the period to 30 June 2023.
Greencoat UK Wind PLC is the leading listed renewable
infrastructure fund, invested in UK wind farms. The Company's aim
is to provide investors with an annual dividend that increases in
line with RPI inflation while preserving the capital value of its
investment portfolio in the long term on a real basis through
reinvestment of excess cash flow.
The Company provides investors with the opportunity to
participate directly in the ownership of UK wind farms, so
increasing the resources and capital dedicated to the deployment of
renewable energy and the reduction of greenhouse gas emissions.
Highlights
-- The Group's investments generated 2,088GWh of renewable electricity.
-- Net cash generation (Group and wind farm SPVs) was GBP 204.0 million .
-- Acquisition of Dalquhandy wind farm increased the portfolio
to 46 operating wind farm investments and net generating capacity
to 1,652MW as at 30 June 2023.
-- Agreed to acquire a net 13.7 per cent stake in London Array
offshore wind farm, with the transaction expected to complete on 31
July 2023.
-- The Company declared total dividends of 4.38 pence per share with respect to the period.
-- Aggregate Group Debt was GBP2,000 million as at 30 June 2023,
equivalent to 34 per cent of GAV.
Commenting on today's results, Lucinda Riches, Chairman of
Greencoat UK Wind, said :
"I am pleased to report another strong performance in the first
half, extending our track record of attractive dividends and
returns. Cash generation was strong and dividend cover for the
period was 2.1x. Since IPO, the Company has increased its dividend
in line with RPI every year with excess cash generation being
reinvested to drive NAV growth above RPI, now delivering returns to
investors of 10%.
"We continue to leverage our scale and financial strength to
grow the portfolio with high quality investments including that of
Dalquhandy in the period. Looking ahead to the remainder of the
year, we already have a strong pipeline of additions to our
portfolio through our investment in London Array and completing on
our committed investments, South Kyle and Kype Muir Extension.
These investments will add 355MW of net generating capacity
increasing the portfolio to over 2GW.
"The outlook for the Group is extremely encouraging. We operate
in a mature and growing asset class and with our market leading
position and self funding business model, we are well placed to
capitalise on NAV accretive investment opportunities and continue
delivering superior returns to shareholders."
Net Asset Value
The Company announces that its unaudited Net Asset Value as at
30 June 2023 is GBP3,843.9 million (165.8 pence per share). The
Company's June 2023 Factsheet is available on the Company's
website, www.greencoat-ukwind.com .
Dividend Announcement
The Company also announces a quarterly dividend of 2.19 pence
per share in respect of the period from 1 April 2023 to 30 June
2023.
Dividend Timetable
Ex-dividend date: 10 August 2023
Record date: 11 August 2023
Payment date: 25 August 2023
Key Metrics
As at 30 June 2023:
Market capitalisation GBP 3,345.6 million
Share price 144.3 pence
Dividends with respect to the period GBP 101.6 million
Dividends with respect to the period per share 4.38 pence
GAV GBP 5,843.9 million
NAV GBP 3,843.9 million
NAV per share 165.8 pence
The Company's 2023 Half Year Report is available on the
Company's website, www.greencoat-ukwind.com , and can also be
inspected on the National Storage Mechanism website,
https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
Details of the conference call for analysts and investors:
There will be a conference call at 9.00am today for analysts and
investors. Analysts and investors can register
and watch the event at: https://www.netroadshow.com/events/login?show=ed784d86&confId=53665 .
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
Headland 020 3805 4822
Stephen Malthouse
Rob Walker
Charlie Twigg
ukwind@headlandconsultancy.com
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 2023.
Performance
Portfolio generation for the period was 2,088GWh, 18 per cent
below budget owing to low wind. Net cash generated by the Group and
wind farm SPVs was GBP204.0 million and dividend cover for the
period was 2.1x.
The portfolio provides renewable electricity for 1.8 million
homes and avoided the emission of 0.8 million tonnes of CO(2) in
the period.
Dividends and Returns
The Company's aim is to provide investors with an attractive and
sustainable dividend that increases in line with RPI while
preserving capital on a real basis. In line with this aim, in every
one of the last 10 years since listing, the Company increased its
stated dividend target for 2023 by RPI to 8.76 pence. It has paid a
quarterly dividend of 2.19 pence per share with respect to Q1 2023
and has declared a dividend of the same amount per share with
respect to Q2 2023, giving a total of 4.38 pence per share for the
period (compared to 3.86 pence per share for the first half of
2022).
NAV per share decreased in the period from 167.1 pence per share
on 31 December 2022 to 165.8 pence per share on 30 June 2023,
reflecting an increase in discount rates and lower short term power
prices offset by higher short term inflation and valuation gains
from recent and committed investments.
In line with the higher interest rate environment, the Company
has continued to increase its discount rate and thus returns to
investors. The forecast 10 per cent return to investors (net of all
costs) includes reinvestment of excess cash generation (dividend
cover) in addition to the dividend yield. Since listing, the
Company has reinvested GBP806 million of excess cash generation
(dividend cover) and paid GBP836 million of dividends (aggregate
historical dividend cover being 2.0x).
Investment
During the period, the Group invested GBP51.5 million to acquire
Dalquhandy wind farm from BayWa, increasing net generating capacity
to 1,652MW. During the period, the Group also provided a further
GBP4.5 million of construction finance to the Kype Muir Extension
wind farm project (target commissioning in Q3 2023).
In Q3 2023, the Group will invest GBP444 million into London
Array offshore wind farm and GBP320 million into South Kyle wind
farm, which the Group are acquiring from Orsted and Vattenfall
respectively. Along with Kype Muir Extension completion, 355MW of
net generating capacity will be added to the portfolio.
Outlook
The Company is investing in a mature and growing market, and the
Board believes that there should continue to be further
opportunities for investments that are beneficial to shareholders.
The Company will continue to maintain a strictly disciplined
approach to acquisitions, only investing when it is considered to
be in the interests of shareholders to do so. At the same time, we
will also look at opportunistic disposals, given the current
environment we are operating in.
The principal risk and uncertainties of the Group and its
investee companies are unchanged from those detailed in the
Company's Annual Report to 31 December 2022 and remain the most
likely to affect the Group and its investee companies in the second
half of the year. A summary of these may be found below.
The Board and Governance
At the AGM on 28 April 2023, Nick Winser assumed the role of
Senior Independent Director. Shonaid Jemmett-Page also retired and
I, on behalf of the whole Board, would like to thank her for the
excellent job she has done chairing the Company. I am delighted to
have taken over as Chairman, and look forward to working with the
rest of the Board and the Investment Manager to deliver continued
shareholder value.
On 1 May 2023 Jim Smith joined the Board and has extensive
experience in the electricity industry, including in offshore wind
asset management.
Lucinda Riches C.B.E.
Chairman
26 July 2023
Investment Manager's Report
Investment Portfolio
As at 30 June 2023, the Group owned investments in a diversified
portfolio of 46 operating UK wind farms totalling 1,652MW, powering
1.8 million homes and avoiding the emission of 2.1 million tonnes
of CO(2) per annum. A further 355MW of investments are due to
complete in Q3 2023, which will increase the portfolio to over
2GW.
Operating and Financial Performance
Portfolio generation in the period was 2,088 GWh, 18 per cent
below budget owing to low wind. Portfolio availability was above
budget.
Net cash generated by the Group and wind farm SPVs was GBP 204.0
million and dividend cover for the period was 2.1x.
For the six months ended
Group and wind farm SPV cash flows 30 June 2023
------------------------------------------------- -------------------------
GBP'000
Net cash generation (1) 204,020
Dividends paid (95,517)
Acquisitions (55,936)
Acquisition costs (226)
Equity issuance -
Equity issuance costs -
Net amounts drawn under debt facilities 290,000
Upfront finance costs (4,609)
Movement in cash (Group and wind farm SPVs) 337,732
Opening cash balance (Group and wind farm SPVs) 160,851
------------------------------------------------- -------------------------
Closing cash balance (Group and wind farm SPVs) 498,583
Net cash generation 204,020
Dividends 95,517
Dividend cover 2.1x
------------------------------------------------- -------------------------
(1) Alternative Performance Measure as defined below.
The following tables provide further detail in relation to net
cash generation of GBP 204.0 million:
For the six months ended
Net Cash Generation - Breakdown 30 June 2023
--------------------------------- -------------------------
GBP'000
Revenue 400,591
Operating expenses (90,100)
Tax (36,670)
SPV level debt interest (9,148)
SPV level debt amortisation (26,595)
Other (197)
--------------------------------- -------------------------
Wind farm cash flow 237,881
Management fee (17,141)
Operating expenses (1,237)
Ongoing finance costs (17,675)
Other 1,623
--------------------------------- -------------------------
Group cash flow (34,430)
VAT (Group and wind farm SPVs) 569
Net cash generation 204,020
--------------------------------- -------------------------
For the six months
Net Cash Generation - Reconciliation to Net ended
Cash Flows from Operating Activities 30 June 2023
---------------------------------------------- -------------------
GBP'000
Net cash flows from operating activities (1) 220,152
Movement in cash balances of wind farm SPVs (9,845)
Repayment of shareholder loan investment (1) 11,388
Finance costs (1) (22,284)
Upfront finance costs (2) 4,609
---------------------------------------------- -------------------
Net cash generation 204,020
---------------------------------------------- -------------------
(1) Condensed Consolidated Statement of Cash Flows.
(2) GBP4,350k facility arrangement fees plus GBP467k
professional fees per note 12 to the financial statements less
GBP208k movement in other finance costs payable per note 11 to the
financial statements.
Investment and Gearing
On 6 June 2023, the Group acquired Dalquhandy wind farm from
BayWa for consideration of GBP51.5 million.
During the period, the Group provided a further GBP4.5 million
of construction finance to the Kype Muir Extension wind farm
project (target commissioning Q3 2023). As at 30 June 2023, the
Group's total investment in Kype Muir Extension (including accrued
interest) was GBP44.9 million. The Group has entered into
arrangements to acquire a 49.9 per cent stake in Kype Muir
Extension, once fully commissioned, for a headline consideration of
GBP51.4 million. The construction loan will be repaid in full upon
acquisition.
On 24 July 2023, the Group announced that, together with other
funds managed by the Investment Manager, it would acquire a 25 per
cent stake in London Array offshore wind farm from Orsted. Other
owners are RWE (30 per cent), CDPQ (25 per cent) and Masdar (20 per
cent). The investment is scheduled to complete on 31 July 2023 and
the Group's total investment in London Array is expected to be
GBP444 million, comprising an equity investment of GBP394 million
(13.7 per cent net stake) and GBP50 million loan investment.
On 31 August 2023, the Group will acquire South Kyle wind farm
from Vattenfall for consideration of GBP320 million (commitment
made in 2020). South Kyle was officially opened on 13 June by
Laurence Fumagalli, on behalf of the Company and Anna Borg,
Vattenfall CEO.
All of the above investments are materially accretive to NAV,
with committed investments (South Kyle and Kype Muir Extension)
valued at GBP132.5 million as at 30 June 2023, above the investment
consideration.
On 29 June 2023, the Company utilised GBP640 million of new term
loan commitments from new and existing lenders and on 30 June 2023,
prepaid GBP150 million of term loans maturing in November and
December 2023 and GBP200 million drawn under the RCF.
The Group is very well capitalised to complete on its near term
investments. Cash balances (Group and wind farm SPVs) as at 30 June
2023 were GBP499 million with zero drawn under the GBP600 million
RCF.
Gearing as at 30 June 2023 was 34 per cent of GAV, with a
weighted cost of debt of 4.08 per cent across a spread of
maturities (November 2024 to March 2036):
Facility Maturity date Loan principal Loan margin Swap rate All-in rate
GBP 000 % / SONIA %
%
----------- --------------- --------------- ------------ ----------------- ------------
RCF 29 Oct 24 - 1.7500 5.0000 ([1]) 6.7500
NAB 4 Nov 24 50,000 1.1500 1.0610 2.2110
CBA 14 Nov 24 50,000 1.3500 0.8075 2.1575
CBA 6 Mar 25 50,000 1.5500 1.5265 3.0765
CIBC 3 Nov 25 100,000 1.5000 1.5103 3.0103
ANZ 3 May 26 75,000 1.4500 5.9240 7.3740
NAB 1 Nov 26 75,000 1.5000 1.5980 3.0980
NAB 1 Nov 26 25,000 1.5000 0.8425 2.3425
CIBC 14 Nov 26 100,000 1.4000 0.8132 2.2132
Lloyds 9 May 27 150,000 1.6000 5.6510 7.2510
CBA 4 Nov 27 100,000 1.6000 1.3680 2.9680
ABN AMRO 2 May 28 100,000 1.7500 5.0430 6.7930
ANZ 3 May 28 75,000 1.7500 5.3790 7.1290
Barclays 3 May 28 100,000 1.7500 4.9880 6.7380
AXA 31 Jan 30 125,000 - - 3.0300
AXA 31 Jan 30 75,000 1.7000 1.4450 3.1450
AXA 28 Apr 31 25,000 - - 6.4340
AXA 28 Apr 31 115,000 1.8000 5.0000 ([1]) 6.8000
Hornsea 1 31 Mar 36 610,000 - - 2.6000
---------------
2,000,000 Weighted average 4.0800
(1) Facility pays SONIA as variable rate
Given the leading market position of the Group and the
Investment Manager, there is no shortage of investment
opportunities, further fuelled by the challenging fundraising
environment affecting all buyers (in both public and private
markets). Thus the Investment Manager regularly reviews the
portfolio for potential disposals, with a view to recycling capital
into NAV accretive investments.
Net Asset Value
The following table sets out the movement in NAV from 31
December 2022 to 30 June 2023. The key components are discussed in
detail below.
GBP'000 Pence per share
---------- ----------------
NAV as at 31 December 2022 3,873,228 167.1
Net cash generation 204,020 8.8
Dividend (95,517) (4.1)
Power price (158,595) (6.8)
Inflation 188,224 8.1
Discount rate (263,252) (11.4)
Committed investments 132,507 5.7
Depreciation and other (36,669) (1.6)
NAV as at 30 June 2023 3,843,947 165.8
---------------------------- ---------- ----------------
Reconciliation of Statutory Net Assets to Reported NAV
As at As at
30 June 2023 31 December 2022
GBP'000 GBP'000
------------------------------- -------------- ------------------
Operating portfolio 5,172,618 5,458,334
Construction portfolio 44,938 39,414
Committed investments 132,507 -
Cash (wind farm SPVs) 131,223 141,068
------------------------------- -------------- ------------------
Fair value of investments (1) 5,481,286 5,638,816
Cash (Group) 367,360 19,783
Other relevant liabilities (4,699) (5,867)
------------------------------- -------------- ------------------
GAV 5,843,947 5,652,732
Aggregate Group Debt (1) (2,000,000) (1,779,504)
------------------------------- -------------- ------------------
NAV 3,843,947 3,873,228
Reconciling items - -
------------------------------- -------------- ------------------
Statutory net assets 3,843,947 3,873,228
Shares in issue 2,318,483,353 2,318,089,989
NAV per share (pence) 165.8 167.1
------------------------------- -------------- ------------------
(1) Includes limited recourse debt at Hornsea 1, not included in
the Condensed Consolidated Statement of Financial Position.
Power Price
Long term power price forecasts are provided by a leading market
consultant, updated quarterly, and may be adjusted by the
Investment Manager where more conservative assumptions are
considered appropriate. Short term power price assumptions reflect
the forward curve as at 3 July 2023.
A conservative 20 per cent discount (10 per cent for offshore)
is applied to power price assumptions in all years to reflect that
wind generation typically earns a lower price than the base load
power price. This compares to the 4 per cent discount to the base
load power price achieved by the portfolio in the period
(GBP104.06/MWh average achieved price versus GBP108.40/MWh average
N2EX index price).
In addition to the 20 per cent discount, a further discount is
applied to reflect the terms of each PPA. The price of some PPAs is
expressed as a percentage of a given price index, whereas other
PPAs include a fixed GBP/MWh discount to the price index. Other
PPAs pay a fixed GBP/MWh price for power.
The following table shows the assumed power price (post 20 per
cent discount pre PPA discount) and also the price post a
representative PPA discount (90 per cent x index price).
GBP/MWh (real 2022) 2023 2024 2025 2026 2027 2028 2029 2030
------ ------ ------ ------ ------ ------ ------ ------
Pre PPA discount 78.93 81.14 67.67 56.10 57.60 57.60 57.60 59.04
Post representative PPA discount 71.04 73.03 60.90 50.49 51.84 51.84 51.84 53.14
2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Pre PPA discount 58.08 57.68 58.00 58.72 56.40 57.36 56.56 53.36 53.92 54.00
Post representative PPA discount 52.27 51.91 52.20 52.85 50.76 51.62 50.90 48.02 48.53 48.60
2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Pre PPA discount 51.76 50.40 48.88 48.96 49.04 48.40 47.84 48.00 49.84 46.48
Post representative PPA discount 46.58 45.36 43.99 44.06 44.14 43.56 43.06 43.20 44.86 41.83
2051 2052 2053 2054 2055 2056 2057 2058 2059 2060
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Pre PPA discount 46.72 45.12 45.68 45.44 43.76 42.80 40.48 39.20 39.76 39.84
Post representative PPA discount 42.05 40.61 41.11 40.90 39.38 38.52 36.43 35.28 35.78 35.86
The portfolio benefits from a substantial fixed revenue base.
Furthermore, most fixed revenues are index linked (RPI in the case
of ROCs, CPI in the case of CFDs etc).
The fixed revenue base means that dividend cover is robust in
the face of extreme downside power price sensitivities. A dividend
that continues to increase with RPI is covered down to GBP10/MWh
over the next 5 years.
2024 2025 2026 2027 2028
-------- -------- -------- -------- --------
RPI increase (%) 7.0 3.5 3.5 3.5 3.5
Dividend (pence / share) 9.37 9.70 10.04 10.39 10.76
Dividend (GBP 000) 217,316 224,922 232,794 240,942 249,375
Dividend cover (x)
Base case 2.3 2.4 2.3 2.4 2.4
GBP50/MWh 1.8 1.9 2.0 2.0 2.1
GBP40/MWh 1.6 1.7 1.8 1.8 1.8
GBP30/MWh 1.4 1.5 1.5 1.5 1.5
GBP20/MWh 1.2 1.3 1.3 1.2 1.2
GBP10/MWh 1.0 1.1 1.0 1.0 0.9
All numbers illustrative. Power prices real 2022, pre PPA
discounts.
The Group's strategy remains to maintain an appropriate balance
between fixed and merchant revenue. To the extent that merchant
revenues were to increase as a proportion of total revenues then
new fixed price PPAs would be entered into. However, it is likely
that an appropriate revenue balance would be maintained through the
acquisition of new fixed revenue streams (for example, offshore
wind CFD assets).
Inflation
The base case assumes the following values for December
inflation each year:
2023 2024-2030 2031 onwards
RPI 7 per cent 3.5 per cent 2.5 per cent
CPI 5 per cent 2.5 per cent 2.5 per cent
If December 2023 RPI is 7 per cent this implies average RPI over
2023 of 10 per cent (13 per cent falling to 7 per cent over the
course of the year). Similarly, 2024 RPI starting at 7 per cent and
falling to 3.5 per cent by year end implies average RPI over 2024
of 5 per cent. Average RPI over 2025 is 3.5 per cent etc.
Average RPI over a year is important as this figure drives ROC
prices. The ROC price is inflated annually from 1 April each year
based on the previous year's average RPI. For example, based on the
assumptions in the table above, we assume a 10 per cent increase in
the ROC price from 1 April 2024.
CFD prices are also inflated annually from 1 April each year.
However, in the case of CFDs, the price is inflated based on
January CPI.
Given the explicit inflation linkage of a substantial proportion
of portfolio revenue (ROCs, CFDs, certain PPAs) and the implicit
inflation linkage inherent in power prices, there is a strong link
between inflation and portfolio return.
Over the long term, 1 per cent higher inflation means 1 per cent
higher IRR (all else being equal).
In the short term, a one off increase in inflation (for example,
a 10 per cent increase in the ROC price) leads to a ratchet-like
increase in portfolio cash flows that lock in for all future
years.
Interest rates (and therefore discount rates) are correlated
with inflation. It is important to appreciate the inflation linked
nature of the portfolio cash flows and that changes in discount
rates (associated with changes in interest rates) are broadly
offset by changes in inflation.
Returns
Discount rates must increase to reflect the higher interest rate
environment.
For the 30 June 2023 NAV, the discount rate was increased by a
further 1 per cent. The levered portfolio IRR now stands at 11 per
cent. This is now materially higher than at IPO over a decade
ago.
Given that the Company's ongoing charges ratio is less than 1
per cent, the net return to investors (assuming investment at NAV)
is thus 10 per cent.
The 10 per cent net return is also inflation linked, as
described above.
A 10 per cent inflation linked return should be very attractive
versus other investment opportunities. The Company's 10 year track
record demonstrates relatively low volatility and the historical
and projected dividend cover is robust. By investing in operating
UK wind farms (higher returning than European or solar generation
assets, and lower risk than batteries or development assets), the
Company aims to continue to generate consistent superior risk
adjusted returns.
A total return of 10 per cent and a dividend yield of 5 per cent
would imply NAV growth of 5 per cent. The total return is more
important than the dividend yield, which depends on the chosen
dividend policy (the Company could have a different combination of
dividend yield and NAV growth).
Excess cash generation (dividend cover) is reinvested to drive
NAV growth. Therefore the size of dividend cover is important; it
is not just a question of "covered or not covered". The business
model is self funding and does not rely on further equity
issuance.
Since IPO, aggregate historical dividend cover has been 1.9x and
the Group has reinvested GBP786 million and has delivered NAV
growth significantly in excess of RPI.
Outlook
There are currently approximately 29GW of operating UK wind
farms (15GW onshore plus 14GW offshore). In monetary terms, the
29GW of operating UK wind farms amounts to approximately GBP100
billion. The Group's market share is approximately 6 per cent. As
at 30 June 2023, the average age of the portfolio was 7 years
(versus 5 years at IPO in March 2013).
Given the leading market position of the Group and the
Investment Manager, there is no shortage of investment
opportunities, further fuelled by the challenging fundraising
environment affecting all buyers (in both public and private
markets). The Group is very well capitalised and the business model
is self funding.
The assumptions underpinning NAV are conservative. The portfolio
is robust in the face of downside power price sensitivities and
remains exposed to significant upside (power prices, inflation,
asset life extension, asset optimisation, new revenue streams,
interest rate cycle etc).
The levered portfolio IRR of 11 per cent and net return to
investors of 10 per cent should be very attractive versus other
investment opportunities. Directors and senior management of the
Investment Manager invested GBP1,645,680 over the period.
In general, the outlook for the Group is extremely
encouraging.
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.
Lucinda Riches C.B.E.
Chairman
26 July 2023
Condensed Consolidated Statement of Comprehensive Income
(unaudited)
For the six months ended 30 June 2023
For the six months ended For the six months ended
Note 30 June 2023 30 June 2022
GBP'000 GBP'000
--------------------------------------------------------- ----- ------------------------- -------------------------
Investment income 3 238,031 323,438
Unrealised movement in fair value of investments 8 (132,574) 258,752
Other income 864 990
--------------------------------------------------------- ----- ------------------------- -------------------------
Total income and unrealised movement 106,321 583,180
Operating expenses 4 (18,751) (16,509)
Investment acquisition costs (226) (577)
--------------------------------------------------------- ----- ------------------------- -------------------------
Operating profit 87,344 566,094
Finance expense 12 (21,858) (14,497)
--------------------------------------------------------- ----- ------------------------- -------------------------
Profit for the period before tax 65,486 551,597
Tax 5 - -
--------------------------------------------------------- ----- ------------------------- -------------------------
Profit for the period after tax 65,486 551,597
Profit and total comprehensive income attributable to:
Equity holders of the Company 65,486 551,597
Earnings per share
--------------------------------------------------------- ----- ------------------------- -------------------------
Basic and diluted earnings from continuing operations in
the period (pence) 6 2.82 23.80
--------------------------------------------------------- ----- ------------------------- -------------------------
The accompanying notes form an integral part of the financial
statements.
Condensed Consolidated Statement of Financial Position
(unaudited)
As at 30 June 2023
Note 30 June 2023 31 December 2022
GBP'000 GBP'000
-------------------------------------------------- ----- ------------- -----------------
Non current assets
Investments at fair value through profit or loss 8 4,871,286 4,959,312
-------------------------------------------------- ----- ------------- -----------------
4,871,286 4,959,312
Current assets
Receivables 10 2,040 2,487
Cash and cash equivalents 367,360 19,783
-------------------------------------------------- ----- ------------- -----------------
369,400 22,270
Current liabilities
Loans and borrowings 12 - (150,000)
Payables 11 (6,739) (8,354)
-------------------------------------------------- ----- ------------- -----------------
Net current assets/(liabilities) 362,661 (136,084)
Non current liabilities
Loans and borrowings 12 (1,390,000) (950,000)
Net assets 3,843,947 3,873,228
-------------------------------------------------- ----- ------------- -----------------
Capital and reserves
Called up share capital 14 23,185 23,181
Share premium account 14 2,471,142 2,470,396
Retained earnings 1,349,620 1,379,651
-------------------------------------------------- ----- ------------- -----------------
Total shareholders' funds 3,843,947 3,873,228
-------------------------------------------------- ----- ------------- -----------------
Net assets per share (pence) 15 165.8 167.1
-------------------------------------------------- ----- ------------- -----------------
Authorised for issue by the Board of Greencoat UK Wind PLC
(registered number 08318092) on 26 July 2023 and signed on its
behalf by:
Lucinda Riches C.B.E. 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 2023
For the six months ended Share Share Retained
30 June 2023 Note capital premium earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ---- ------------------- ------------------ ------------------ ------------------
Opening net assets
attributable
to shareholders (1 January
2023) 23,181 2,470,396 1,379,651 3,873,228
Issue of share capital 14 4 746 - 750
Profit and total comprehensive
income for the period - 65,486 65,486
Interim dividends paid in
the period 7 - - (95,517) (95,517)
Closing net assets
attributable
to shareholders 23,185 2,471,142 1,349,620 3,843,947
------------------------------- ---- ------------------- ------------------ ------------------ ------------------
The total reserves distributable by way of a dividend as at 30
June 2023 were GBP768,751,535.
For the six months ended Share Share Retained
30 June 2022 Note capital premium earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ------ -------------------- ------------------ ------------------ ---------------
Opening net assets attributable
to shareholders (1 January
2023) 23,171 2,468,940 601,588 3,093,699
Issue of share capital 6 744 - 750
Share issue costs - (34) - (34)
Profit and total comprehensive
income for the period - - 551,597 551,597
Interim dividends paid in
the period - - (86,326) (86,326)
Closing net assets attributable
to shareholders 23,177 2,469,650 1,066,859 3,559,686
--------------------------------------- -------------------- ------------------ ------------------ ---------------
The total reserves distributable by way of a dividend as at 30
June 2022 were GBP540,760,772.
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 2023
For the six months ended For the six months ended
Note 30 June 2023 30 June 2022
GBP'000 GBP'000
--------------------------------------------------------- ----- ------------------------- -------------------------
Net cash flows from operating activities 16 220,152 309,426
Cash flows from investing activities
Acquisition of investments 8 (55,936) (70,386)
Investment acquisition costs (226) (1,953)
Repayment of shareholder loan investments 8 11,388 5,272
--------------------------------------------------------- ----- ------------------------- -------------------------
Net cash flows from investing activities (44,774) (67,067)
Cash flows from financing activities
Payment of issue costs - (42)
Amounts drawn down on loan facilities 12 640,000 200,000
Amounts repaid on loan facilities 12 (350,000) (250,000)
Net finance costs (22,284) (11,621)
Dividends paid 7 (95,517) (86,326)
--------------------------------------------------------- ----- ------------------------- -------------------------
Net cash flows from financing activities 172,199 (147,989)
Net increase in cash and cash equivalents during the
period 347,577 94,370
Cash and cash equivalents at the beginning of the period 19,783 4,801
Cash and cash equivalents at the end of the period 367,360 99,171
--------------------------------------------------------- ----- ------------------------- -------------------------
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 2023
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 2022 and are expected to continue to
apply in the Group's consolidated financial statements for the year
ended 31 December 2023.
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 2022. The audited annual accounts for the year ended 31
December 2022 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 2023, the Group had net current assets of GBP
362.7 million (31 December 2022: net current liabilities of
GBP136.1 million) and cash balances of GBP367.4 million (31
December 2022: GBP19.8 million) which are sufficient to meet
current obligations as they fall due.
The Directors have reviewed Group forecasts and projections
which cover a period of at least 12 months from the date of
approval of this report, taking into account foreseeable changes in
investment and trading performance, which show that the Group has
sufficient financial resources to continue in operation for at
least the next 12 months from the date of approval of this
report.
On the basis of this review, and after making due enquiries, the
Directors have a reasonable expectation that the Company and the
Group have adequate resources to continue in operational existence
until at least July 2024. Accordingly, they continue to adopt the
going concern basis in preparing the financial statements.
Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Board, as a whole. The key
measure of performance used by the Board to assess the Group's
performance and to allocate resources is the total return on the
Group's net assets, as calculated under IFRS, and therefore no
reconciliation is required between the measure of profit or loss
used by the Board and that contained in the financial
statements.
For management purposes, the Group is organised into one main
operating segment, which invests in wind farm assets.
All of the Group's income is generated within the UK.
All of the Group's non-current assets are located in the UK.
Seasonal and cyclical variations
The Group's results do not vary significantly during reporting
periods as a result of seasonal activity.
2. Investment management fees
Under the terms of the Investment Management Agreement, the
Investment Manager is entitled to a combination of a Cash Fee and
an Equity Element from the Company.
The Cash Fee and Equity Element are calculated quarterly in
advance, as disclosed on page 74 of the Company's Annual Report for
the year ended 31 December 2022.
Investment management fees paid or accrued in the period were as
follows:
For the six months ended For the six months ended
30 June 2023 30 June 2022
GBP'000 GBP'000
---------------- ------------------------- -------------------------
Cash Fee 15,777 13,718
Equity Element 750 750
----------------
16,527 14,468
---------------- ------------------------- -------------------------
As at 30 June 2023, total amounts payable to the Investment
Manager were GBPnil (31 December 2022: GBP1,364,170).
3. Investment Income
For the six months ended For the six months ended
30 June 2023 30 June 2022
GBP'000 GBP'000
-------------------------------------------------- ------------------------- -------------------------
Dividends received (note 17) 208,286 297,483
Interest on shareholder loan investment received 29,745 25,955
238,031 323,438
-------------------------------------------------- ------------------------- -------------------------
4. Operating expenses
For the six For the six
months ended months ended
30 June 2023 30 June 2022
GBP'000 GBP'000
---------------------------------------- -------------- --------------
Management fees (note 2) 16,527 14,468
Group and SPV administration fees 608 439
Non-executive Directors' fees 160 178
Other expenses 1,328 1,309
Fees to the Company's Auditor:
for audit of the statutory financial
statements 124 111
for other audit related services 4 4
---------------------------------------- -------------- --------------
18,751 16,509
---------------------------------------- -------------- --------------
The fees to the Company's Auditor for the period ended 30 June
2023 include GBP 4,290 (30 June 2022: GBP4,173) 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 2023 is
GBP nil (30 June 2022: GBPnil).
6. Earnings per share
For the six months ended For the six months ended
30 June 2023 30 June 2022
---------------------------------------------------------------- ------------------------- -------------------------
Profit attributable to equity holders of the Company - GBP'000 65,486 551,597
Weighted average number of ordinary shares in issue 2,318,296,118 2,317,381,121
---------------------------------------------------------------- ------------------------- -------------------------
Basic and diluted earnings from continuing operations in the
period (pence) 2.82 23.80
---------------------------------------------------------------- ------------------------- -------------------------
Dilution of the earnings per share as a result of the Equity
Element of the investment management fee as disclosed in note 2
does not have a significant impact on the basic earnings per
share.
7. Dividends declared with respect to the period
Interim dividends paid during the period ended 30 June 2023 Dividend per share Total dividend
pence GBP'000
------------------------------------------------------------- ------------------- ---------------
With respect to the quarter ended 31 December 2022 1.93 44,742
With respect to the quarter ended 31 March 2023 2.19 50,775
4.12 95,517
------------------------------------------------------------- ------------------- ---------------
Interim dividends declared after 30 Dividend
June 2023 and not accrued in the period per share Total dividend
pence GBP'000
------------------------------------------ ----------- ---------------
With respect to the quarter ended 30
June 2023 2.19 50,780
2.19 50,780
------------------------------------------ ----------- ---------------
As disclosed in note 18, on 26 July 2023 , the Board approved a
dividend of 2.19 pence per share with respect to the quarter ended
30 June 2023, bringing the total dividends declared with respect to
the period to 4.38 pence per share. The record date for the
dividend is 11 August 2023 and the payment date is 25 August 2023
.
8. Investments at fair value through profit or loss
For the period ended 30 June 2023 Loans Equity interest Total
GBP'000 GBP'000 GBP'000
----------------------------------------------------- ---------- ---------------- ----------
Opening balance 1,087,081 3,872,231 4,959,312
Additions 45,356 10,580 55,936
Repayment of shareholder loan investments (note 17) (11,388) - (11,388)
Unrealised movement in fair value of investments 2,521 (135,095) (132,574)
----------------------------------------------------- ---------- ---------------- ----------
1,123,570 3,747,716 4,871,286
----------------------------------------------------- ---------- ---------------- ----------
For the period ended 30 June 2022 Loans Equity interest Total
GBP'000 GBP'000 GBP'000
-------------------------------------------------- -------- ---------------- ----------
Opening balance 924,748 3,117,797 4,042,545
Additions (1) 50,397 19,831 70,228
Repayment of shareholder loan investments (5,272) - (5,272)
Unrealised movement in fair value of investments 1,018 257,734 258,752
-------------------------------------------------- -------- ---------------- ----------
970,891 3,395,362 4,366,253
-------------------------------------------------- -------- ---------------- ----------
(1) Includes a true-up receivable at Glen Kyllachy of
GBP158k.
Fair value measurements
As disclosed on pages 78 and 79 of the Company's Annual Report
for the year ended 31 December 2022 , 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 period.
Sensitivity analysis
The fair value of the Group's investments is GBP4,871,286,111
(31 December 2022: GBP4,959,311,361). The analysis below is
provided to illustrate the sensitivity of the fair value of
investments to an individual input, while all other variables
remain constant. The Board considers these changes in inputs to be
within reasonable expected ranges. This is not intended to imply
the likelihood of change or that possible changes in value would be
restricted to this range.
Input Change in input Change in fair value of investments Change in NAV per share
--------------- ----------------- ------------------------------------ ------------------------
GBP'000 pence
Discount rate + 0.5 per cent (167,189) (7.2)
- 0.5 per cent 176,917 7.6
Inflation - 0.5 per cent (166,598) (7.2)
+ 0.5 per cent 175,538 7.6
Energy yield 10 year P90 (334,251) (14.4)
10 year P10 333,854 14.4
Power price - 10 per cent (311,587) (13.4)
+ 10 per cent 300,530 13.0
Asset life - 5 years (285,671) (12.3)
+ 5 years 185,783 8.0
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 2023
------------ ------------------- -------------------------
Dalquhandy Scotland 100 %
There are no other changes to the unconsolidated subsidiaries or
the associates and joint ventures of the Group as disclosed on
pages 80 and 81 of the Company's Annual Report for the year ended
31 December 2022.
Guarantees and counter-indemnities provided by the Group during
the period on behalf of its investments are as follows:
Amount
Provider of security Investment Beneficiary Nature Purpose GBP'000
---------------------- ------------ ------------- ------------------- ----------------- --------------
The Company Dalquhandy BT Guarantee PPA 5,897
Holdco Dalquhandy BayWa Counter-indemnity Decommissioning 2,525
8,422
--------------------------------------------------------------------------------------- --------------
There were no other material changes to guarantees and
counter-indemnities provided by the Group, as disclosed on page 82
of the Company's Annual Report for the year ended 31 December 2022.
The fair value of these guarantees and counter-indemnities provided
by the Group are considered to be GBPnil (30 June 2022:
GBPnil).
10. Receivables
30 June 2023 31 December 2022
GBP'000 GBP'000
----------------------- ------------- -----------------
Amounts due from SPVs 1,222 1,648
VAT receivable 370 527
Prepayments 199 122
Other receivables 249 190
2,040 2,487
----------------------- ------------- -----------------
11. Payables
31 December
30 June 2023 2022
GBP'000 GBP'000
----------------------------------- ------------- ------------
Loan interest payable 4,905 5,490
Commitment fee payable 564 402
Letter of credit fees payable
(note 12) 103 324
Other finance costs payable 208 -
Investment management fee payable - 1,364
Other payables 959 774
6,739 8,354
----------------------------------- ------------- ------------
12. Loans and borrowings
30 June 2023 31 December 2022
GBP'000 GBP'000
--------------------------- ------------- -----------------
Opening balance 1,100,000 950,000
Revolving credit facility
Drawdowns - 260,000
Repayments (200,000) (310,000)
Term debt facilities
Drawdowns 640,000 200,000
Repayments (150,000) -
Closing balance 1,390,000 1,100,000
--------------------------- ------------- -----------------
Reconciled as:
Current liabilities - 150,000
Non current liabilities 1,390,000 950,000
For the six months ended For the six months ended
30 June 2023 30 June 2022
GBP'000 GBP'000
--------------------------- ------------------------- -------------------------
Loan interest 15,046 11,586
Facility arrangement fees 4,350 -
Commitment fees 1,390 1,748
Letter of credit fees 471 -
Professional fees 467 1,076
Other facility fees 134 87
Finance expense 21,858 14,497
--------------------------- ------------------------- -------------------------
The loan balance as at 30 June 2023 has not been adjusted to
reflect amortised cost, as the amounts are not materially different
from the outstanding balances.
There are no changes to the terms of the Company's revolving
credit facility as disclosed on page 84 of the Company's Annual
Report for the year ended 31 December 2022. As at 30 June 2023, the
balance of this facility was GBPnil (31 December 2022: GBP200
million), accrued interest was GBPnil (31 December 2022: GBP52,675)
and the outstanding commitment fee payable was GBP466,575 (31
December 2022: GBP401,753).
The Company also has a GBP100 million letter of credit facility
in place with Lloyds, of which GBP81.2 million was utilised as at
30 June 2023 (31 December 2022: GBP72.8 million). The fee for this
facility is 1.25 per cent of utilised amounts and the fee payable,
as at 30 June 2023 was GBP102,935 (31 December 2022:
GBP324,221).
During the period, the Company entered into new term debt
arrangements with ABN AMRO, ANZ, AXA, Barclays and Lloyds,
totalling GBP640 million. Details of the new facilities are
outlined in the table below.
On 30 June 2023, the Company repaid principal of GBP150 million
relating to the NAB and CBA facilities with maturity dates in
November 2023 and December 2023, respectively.
The Company's term debt facilities and associated interest rate
swaps, with various maturity dates, are set out in the below
table:
Swap rate
Provider Maturity date Loan principal Loan margin / SONIA All-in rate
GBP'000 % % %
---------- --------------- ---------------------- ------------ ------------ ------------
NAB 4 Nov 24 50,000 1.15 1.0610 2.2110
CBA 14 Nov 24 50,000 1.35 0.8075 2.1575
CBA 6 Mar 25 50,000 1.55 1.5265 3.0765
CIBC 3 Nov 25 100,000 1.50 1.5103 3.0103
ANZ 3 May 26 75,000 1.45 5.9240 7.3740
NAB 1 Nov 26 75,000 1.50 1.5980 3.0980
NAB 1 Nov 26 25,000 1.50 0.8425 2.3425
CIBC 14 Nov 26 100,000 1.40 0.8133 2.2133
Lloyds 9 May 27 150,000 1.60 5.6510 7.2510
CBA 4 Nov 27 100,000 1.60 1.3680 2.9680
ABN AMRO 2 May 28 100,000 1.75 5.0430 6.7930
ANZ 3 May 28 75,000 1.75 5.3790 7.1290
Barclays 3 May 28 100,000 1.75 4.9880 6.7380
AXA 31 Jan 30 125,000 3.0300
AXA 31 Jan 30 75,000 1.70 1.4450 3.1450
AXA 28 Apr 31 25,000 6.4430
AXA 28 Apr 31 115,000 1.80 5.0000([1]) 6.8000
1,390,000
-------------------------- ---------------------- ------------ ------------ ------------
([1]) Facility pays SONIA as variable rate
13. Contingencies and commitments
In April 2020, the Group announced that it had agreed to acquire
South Kyle wind farm project for a headline consideration of GBP320
million. The investment is scheduled to complete on 31 August
2023.
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 Q3 2023). The Group also agreed
to provide construction finance of up to GBP47 million, of which
GBP 44.9 million had been utilised as at 30 June 2023.
The committed investments of South Kyle and Kype Muir Extension
were valued at GBP132.5 million above the investment consideration
as at 30 June 2023.
14. Share capital - ordinary shares of GBP0.01
Six months to 30 June 2023
Number
Issued and fully of shares Share Share
Date paid issued capital premium Total
GBP'000 GBP'000 GBP'000
-------------- -------------------- -------------- --------- ---------- ----------
1 January
2023 2,318,089,989 23,181 2,470,396 2,493,577
Shares issued to the Investment
Manager
True-up of 2022
and
3 February Q1 2023 Equity
2023 Element 167,923 2 373 375
Q2 2023 Equity
5 May 2023 Element 225,441 2 373 375
393,364 4 746 750
30 June
2023 2,318,483,353 23,185 2,471,142 2,494,327
------------------------------------ -------------- --------- ---------- ----------
15. Net assets per share
30 June 2023 31 December 2022
---------------------------------- -------------- -----------------
Net assets - GBP'000 3,843,947 3,873,228
Number of ordinary shares issued 2,318,483,353 2,318,089,989
---------------------------------- -------------- -----------------
Total net assets - pence 165.8 167.1
---------------------------------- -------------- -----------------
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 2023 30 June 2022
GBP'000 GBP'000
----------------------------------------------------------- ------------------------- -------------------------
Operating profit for the period 87,344 566,094
Adjustments for:
Unrealised movement in fair value of investments (note 8) 132,574 (258,752)
Investment acquisition costs 226 577
Decrease in receivables 470 1,534
Decrease in payables (1,212) (777)
Equity Element of Investment Manager's fee (note 2) 750 750
Net cash flows from operating activities 220,152 309,426
----------------------------------------------------------- ------------------------- -------------------------
17. Related party transactions
During the period, the Company increased its loan to Holdco by
GBP 400,000 (30 June 2022: GBP411,425) and Holdco settled amounts
of GBP150,647,425 (30 June 2022: GBP 163,866,761 ). The amount
outstanding at the period end was GBP 2,193,467,789 (31 December
2022: GBP2,343,715,214).
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 2023 30 June 2022
GBP'000 GBP'000
------------------------ ------------------------- -----------------------------
Humber Holdco (1) 30,239 29,722
Clyde 27,038 38,556
Hornsea 1 Holdco(2) 17,921 -
Walney Holdco (3) 11,383 9,366
Stronelairg Holdco (4) 11,189 24,640
Brockaghboy 9,045 9,791
Hoylake (5) 8,156 2,961
ML Wind (6) 7,595 10,241
North Hoyle 7,547 14,186
SYND Holdco (7) 6,969 11,670
Braes of Doune 6,735 14,380
Rhyl Flats 6,237 8,184
Dunmaglass Holdco (8) 5,688 9,362
Little Cheyne Court 4,264 5,412
Fenlands (9) 3,954 11,300
Andershaw 3,482 6,913
Windy Rig 3,244 7,093
Douglas West 3,040 8,644
Tappaghan 2,966 5,933
Maerdy 2,789 5,427
Twentyshilling 2,734 -
Slieve Divena 2,727 4,602
Corriegarth 2,484 17,054
Bishopthorpe 2,395 4,721
Bicker Fen 2,326 4,550
Glen Kyllachy 2,131 2,500
Slieve Divena 2 2,040 3,991
Screggagh 1,930 3,871
Stroupster 1,862 1,000
Crighshane 1,655 4,020
Langhope Rig 1,621 4,924
Cotton Farm 966 1,913
Church Hill 940 3,124
Bin Mountain 908 2,202
Carcant 866 1,909
Kildrummy 616 2,221
Earl's Hall Farm 604 1,100
208,286 297,483
------------------------ ------------------------- -----------------------------
(1) The Group's investment in Humber Gateway is held through
Humber Holdco.
(2) The Group's investment in Hornsea 1 is held through Hornsea
1 Holdco.
(3) The Group's investment in Walney is held through Walney
Holdco.
(4) The Group's investment in Stronelairg is held through
Stronelairg Holdco.
(5) The Group's investment in Burbo Bank Extension is held
through Hoylake.
(6) The Group's investments in Middlemoor and Lindhurst are held
through ML Wind.
(7) The Group's investments in Drone Hill, North Rhins, Sixpenny
Wood and Yelvertoft are held through SYND Holdco.
(8) The Group's investment in Dunmaglass is held through
Dunmaglass Holdco.
(9) The Group's investments in Deeping St. Nicholas, Glass Moor,
Red House and Red Tile are held through Fenlands.
The table below shows the Group's shareholder loans with the
wind farm investments.
Accrued
interest
Loans at at 30
Loans at 1 January Loans advanced in the Loan repayments in the 30 June June
2023(1) period (2) period 2023 2023 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ------------------- ----------------------- ----------------------------- ---------- --------- -----------
Andershaw 32,641 - (1,466) 31,175 470 31,645
Church Hill 13,830 - (803) 13,027 132 13,159
Clyde 71,503 - - 71,503 965 72,468
Corriegarth 42,553 - - 42,553 420 42,973
Crighshane 20,497 - (662) 19,835 204 20,039
Dalquhandy - 40,878 - 40,878 168 41,046
Douglas West 43,248 - (1,177) 42,071 410 42,481
Dunmaglass
Holdco (3) 56,864 - - 56,864 851 57,715
Glen Kyllachy 48,776 - (1,132) 47,644 456 48,100
Hornsea 1
Holdco (4) 109,475 - - 109,475 39 109,514
Hoylake (5) 178,120 - - 178,120 - 178,120
Kype Muir
Extension 39,415 5,523 - 44,938 - 44,938
Slieve Divena 2 21,378 - (706) 20,672 209 20,881
Stronelairg 86,619 - - 86,619 1,296 87,915
Tom nan Clach 73,709 - (5,442) 68,267 218 68,485
Twentyshilling 32,190 - - 32,190 313 32,503
Walney Holdco
(6) 172,727 - - 172,727 1,732 174,459
Windy Rig 36,772 - - 36,772 357 37,129
1,080,317 46,401 (11,388) 1,115,330 8,240 1,123,570
---------------- ------------------- ----------------------- ----------------------------- ---------- --------- -----------
(1) Excludes accrued interest at 31 December 2022 of
GBP6,763,541.
(2) Includes capitalised interest of GBP1.05 million for Kype
Muir Extension.
(3) The Group's investment in Dunmaglass is held through
Dunmaglass Holdco.
(4) The Group's investment in Hornsea 1 is held through Hornsea
1 Holdco.
(5) The Group's investment in Burbo Bank Extension is held
through Hoylake.
(6) The Group's investment in Walney is held through Walney
Holdco.
18. Subsequent events
On 24 July 2023, the Group announced that, together with other
funds managed by the Investment Manager, it would acquire a net
13.7 per cent stake in London Array offshore wind farm for GBP394
million plus an associated loan investment of GBP50 million. The
transaction is expected to complete on 31 July 2023.
On 26 July 2023 , the Board approved a dividend of 2.19 pence
per share with respect to the quarter ended June 2023. The record
date for the dividend is 11 August 2023 and the payment date is 25
August 2023 .
Company Information
Directors (all non-executive) Registered Company Number
Lucinda Riches C.B.E (Chairman) 08318092
Martin McAdam
Caoimhe Giblin Registered Office
Nick Winser C.B.E. 5(th) Floor
20 Fenchurch Street
London
Jim Smith (1) EC3M 3BY
Shonaid Jemmett-Page (2)
Investment Manager
Schroders Greencoat LLP
4th Floor, The Peak Registered Auditor
5 Wilton Road BDO LLP
London 55 Baker Street
SW1V 1AN London
W1U 7EU
Administrator and Company Secretary
Ocorian Administration (UK) Limited
Unit 4, The Legacy Building Joint Broker
Northern Ireland Science Park RBC Capital Markets
Queen's Road 100 Bishopsgate
Belfast London
BT3 9DT EC2N 4AA
Depositary
Ocorian Depositary (UK) Limited
Unit 4, The Legacy Building Joint Broker
Northern Ireland Science Park Jefferies International Limited
Queen's Road 100 Bishopsgate
Belfast London
BT3 9DT EC2N 4JL
Registrar
Computershare Limited
The Pavilions
Bridgewater Road
Bristol
BS99 6ZZ
(1) Appointed to the Board with effect from 1 May 2023.
(2) Retired from the Board with effect from 28 April 2023.
Defined Terms
ABN AMRO means ABN AMRO Bank N.V.
Aggregate Group Debt means the Group's proportionate share of
outstanding third party borrowings
AGM means Annual General Meeting of the Company
Alternative Performance Measure means a financial measure other
than those defined or specified in the applicable financial
reporting framework
Andershaw means Andershaw Wind Power Limited
ANZ means Australia and New Zealand Banking Group Limited
AXA means funds managed by AXA Investment Managers UK
Limited
Barclays means Barclays Bank PLC
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
Burbo Bank Extension means Hoylake Wind Limited, Greencoat Burbo
Extension Holding (UK) Limited, Burbo Extension Holding Limited and
Burbo Extension Limited
Carcant means Carcant Wind Farm (Scotland) Limited
Cash Fee means the cash fee that the Investment Manager is
entitled to under the Investment Management Agreement
CBA means Commonwealth Bank of Australia
CFD means Contract For Difference
Church Hill means Church Hill Wind Farm Limited
CIBC means Canadian Imperial Bank of Commerce
Clyde means Clyde Wind Farm (Scotland) Limited
CO(2) means carbon dioxide
Company means Greencoat UK Wind PLC
Corriegarth means Corriegarth Wind Energy Limited
Cotton Farm means Cotton Farm Wind Farm Limited
CPI means the Consumer Price Index
Crighshane means Crighshane Wind Farm Limited
Dalquhandy means Dalquhandy Wind Farm Limited
Deeping St. Nicholas means Deeping St. Nicholas wind farm
Douglas West means Douglas West Wind Farm Limited
Drone Hill means Drone Hill Wind Farm Limited
DTR means the Disclosure Guidance and Transparency Rules
sourcebook issued by the Financial Conduct Authority
Dunmaglass means Dunmaglass Holdco and Dunmaglass Wind Farm
Dunmaglass Holdco means Greencoat Dunmaglass Holdco Limited
Dunmaglass Wind Farm means Dunmaglass Wind Farm Limited
Earl's Hall Farm means Earl's Hall Farm Wind Farm Limited
Equity Element means the ordinary shares issued to the
Investment Manager under the Investment Management Agreement
EU means the European Union
Fenlands means Fenland Windfarms Limited
GAV means Gross Asset Value
GB means Great Britain consisting of England, Scotland and
Wales
Glass Moor means Glass Moor wind farm
Glen Kyllachy means Glen Kyllachy Wind Farm Limited
Group means Greencoat UK Wind PLC and Greencoat UK Wind Holdco
Limited
Holdco means Greencoat UK Wind Holdco Limited
Hornsea 1 means Hornsea 1 Holdco and Hornsea 1 Limited
Hornsea 1 Holdco means Jupiter Investor TopCo Limited
Hoylake means Hoylake Wind 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 Schroders Greencoat LLP
IPO means Initial Public Offering
IRR means Internal Rate of Return
Kildrummy means Kildrummy Wind Farm Limited
Kype Muir Extension means Kype Muir Extension Wind Farm
Langhope Rig means Langhope Rig Wind Farm Limited
Lindhurst means Lindhurst Wind Farm
Little Cheyne Court means Little Cheyne Court Wind Farm
Limited
London Array means London Array Limited
Lloyds means Lloyds Bank PLC
Maerdy means Maerdy Wind Farm Limited
Middlemoor means Middlemoor Wind Farm
ML Wind means ML Wind LLP
NAB means National Australia Bank
Nanclach means Nanclach Limited
NAV means Net Asset Value
NAV per Share means the Net Asset Value per Ordinary Share
North Hoyle means North Hoyle Wind Farm Limited
North Rhins means North Rhins Wind Farm Limited
PPA means Power Purchase Agreement entered into by the Group's
wind farms
RBC means the Royal Bank of Canada
RBS International means the Royal Bank of Scotland International
Limited
Red House means Red House wind farm
Red Tile means Red Tile wind farm
Review Section means the front end review section of this report
(including but not limited to the Chairman's Statement and the
Investment Manager's Report)
Rhyl Flats means Rhyl Flats Wind Farm Limited
ROC means Renewable Obligation Certificate
RPI means the Retail Price Index
Santander means Santander Global Banking and Markets
Screggagh means Screggagh Wind Farm Limited
Sixpenny Wood means Sixpenny Wood Wind Farm Limited
Slieve Divena means Slieve Divena Wind Farm Limited
Slieve Divena 2 means Slieve Divena Wind Farm No. 2 Limited
SONIA means the Sterling Overnight Index Average
South Kyle means South Kyle Wind Farm Limited
SPVs means the Special Purpose Vehicles which hold the Group's
investment portfolio of underlying wind farms
Stronelairg means Stronelairg Holdco and Stronelairg Wind
Farm
Stronelairg Holdco means Greencoat Stronelairg Holdco
Limited
Stronelairg Wind Farm means Stronelairg Wind Farm Limited
Stroupster means Stroupster Caithness Wind Farm Limited
SYND Holdco means SYND Holdco Limited
Tappaghan means Tappaghan Wind Farm (NI) Limited
Tom nan Clach means Breeze Bidco and Nanclach
TSR means Total Shareholder Return
Twentyshilling means Twentyshilling Limited
UK means the United Kingdom of Great Britain and Northern
Ireland
Walney means Walney Holdco and Walney Wind Farm
Walney Holdco means Greencoat Walney Holdco Limited
Walney Wind Farm means Walney (UK) Offshore Windfarms
Limited
Windy Rig means Windy Rig Wind Farm Limited
Yelvertoft means Yelvertoft Wind Farm Limited
Alternative Performance Measures
Performance Measure Definition
Aggregate Group Debt The Group's proportionate share of outstanding
third party
borrowings
-----------------------------------------------
GAV Gross Asset Value
-----------------------------------------------
NAV Net Asset Value
-----------------------------------------------
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, on the assumption
that these dividends have been reinvested
-----------------------------------------------
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
2022, 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 2022, summarised as follows:
-- changes in Government policy on renewable energy;
-- a decline in the market price of electricity;
-- risk of low wind resource;
-- lower than expected asset life; and
-- health and safety and the environment.
The principal risks outlined above remain the most likely to
affect the Group and its investee companies in the second half of
the year.
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 QQLFLXDLZBBL
(END) Dow Jones Newswires
July 27, 2023 02:00 ET (06:00 GMT)
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