TIDMJLEN
RNS Number : 6950H
JLEN Environmental Assets Group Ltd
28 November 2022
28 November 2022
JLEN Environmental Assets Group Limited
Announcement of half-year results for the period to 30 September
2022
The Directors of JLEN Environmental Assets Group Limited (the
"Company" or "JLEN"), the listed environmental infrastructure fund,
are pleased to announce the Company's half-year results to 30
September 2022.
Financial highlights
-- Portfolio valuation as at 30 September 2022 of GBP890.2m (31 March 2022: GBP795.4m)
-- The Net Asset Value ("NAV") as at 30 September 2022 of
GBP829.6m, equating to a NAV per ordinary share of 125.4 pence as
at 30 September 2022 (31 March 2022: 115.3 pence)
-- Post the balance sheet date the UK government announced plans
for its "Electricity Generator Levy" that reduces the NAV to
GBP822.6 million which equates to a NAV per share of 124.4 pence.
Further details on this post balance sheet event are provided
below
-- A second interim dividend of 1.79 pence per share declared
for the financial year to 31 March 2023 taking total dividends
declared for the six months to 30 September 2022 to 3.57 pence, in
line with the target set out in the 2022 Annual Report. Cash
dividend cover of 1.64 times on dividends paid during the
period
-- Share price total return for the period since IPO of 92.4% (8.0% annualised)
-- Overall fund gearing as at 30 September 2022 was 25.5% and GBP98.6m undrawn on RCF
Portfolio highlights
-- Four acquisitions completed in the period, giving a total of
41 assets, including two investments in a new sector - controlled
environment
-- Diversified portfolio: 28% wind, 28% waste & bioenergy,
21% anaerobic digestion, 15% solar, 5% low carbon & sustainable
solutions, 2% controlled environment and 1% hydro (% by value)
-- The renewable energy generating portion of the portfolio
delivered 655 GWh (six months to 30 September 2021: 560GWh)
Board matters
-- Appointment of Ed Warner as Chair, effective 2 August 2022
Post balance sheet event
Post the balance sheet date, the UK government has released
details of the 'Electricity Generator Levy' ("the Levy"), through
which it intends to capture what it sees as excess profits being
made in the wholesale electricity market by low carbon generators
such as wind and solar. This Levy sees in-scope generators pay 45%
of revenues earned on prices in excess of GBP75/MWh. A GBP10
million per year allowance will apply, such that revenues below
this threshold will be exempt.
This constitutes a non-adjusting post-balance sheet event as the
Levy was not known at the balance sheet date. However, there was an
expectation that some form of government intervention would be
introduced, as well as a recognition that high near-term power
prices may not be captured in practice by generators. In the face
of such uncertainty, the Directors used their judgement to reduce
price forecast curves used in the valuation by 50% across the
portfolio for the next 12 months, with this percentage stepping
down by 10% per annum to zero over the next five years. This was
applied to all UK generating assets
including Renewables Obligation Certificate and Feed-in Tariff
supported generators and gas assets supported under the Renewable
Heat Incentive. Using this approach, the Directors valued the
portfolio at GBP890.2 million as at the 30 September 2022, which
results in a NAV per share of 125.4 pence.
The Directors have now assessed the impact of the Levy and have
also considered the latest available price forecast curves and
actual inflation, as well as removing the discounts that were
applied to forecast curves for the valuation at the balance sheet
date. This has led to a reduction in the NAV as calculated for the
30 September 2022 of GBP7.0 million to GBP822.6 million and equates
to a NAV per share of 124.4 pence.
The following table illustrates the key valuation and NAV
movements between 31 March 2022 to 30 September 2022 as well as the
Company's assessment of post balance sheet event adjustments
described above:
NAV per
share
NAV at 31 March 2022 115.3p
Payment of shareholder dividends -3.5p
Acquisitions and further
investments -
Distributions received from
investments -
Forecast power prices +13.7p
Economic assumptions +5.7p
Discount rate changes -5.5p
Change in foreign exchange
rate +0.2p
Balance of portfolio return +0.7p
Other fund level movements -1.2p
NAV at 30 September 2022 125.4p
Add back short term price
discounts +12.8p
Application of Levy -11.9p
---------------------------------- --------
Post balance sheet event
NAV 126.3p
Latest power prices and
actual inflation -1.9p
Updated NAV post Autumn
Statement 124.4p
Dividend Timetable
Ex-dividend date: 8 December 2022
Record date: 9 December 2022
Payment date: 30 December 2022
Ed Warner, Chair of JLEN, said:
"JLEN has delivered strong returns during a period of
extraordinary dislocation in the global economy. During the period
the Company expanded its portfolio by making four acquisitions and
generating a strong pipeline of near-term investment opportunities
for further growth. Our diverse portfolio of environmental assets
is well placed to benefit from the continued drive for a more
sustainable and secure way of living."
Half-year report
A copy of the half-year report has been submitted to the
National Storage Mechanism and is available at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The half-year report is also available on the Company's website
at www.jlen.com
Details of the conference call for analysts and investors
A webinar for the annual results will be held at 10:00 a.m. (UK
time) on 28 November, hosted by Chris Holmes and Chris Tanner,
Co-lead Investment Managers to JLEN. To register for the webinar,
please contact SEC Newgate on +44 (0)20 3757 6882 or by email at
JLEN@secnewgate.co.uk .
Presentation materials will be posted on the Company's website,
www.jlen.com, from 9.00am.
For further information and enquiries, please contact:
Foresight Group
Chris Tanner
Chris Holmes +44(0) 20 3667 8100
Winterflood Securities +44(0)20 3100 0000
Limited
Neil Langford
Chris Mills
SEC Newgate UK Jlen@secnewgate.co.uk
Elisabeth Cowell +44(0)20 3757 6882
Axaule Shukanayeva
About JLEN
JLEN's investment policy is to invest in a diversified portfolio
of Environmental Infrastructure. Environmental Infrastructure is
defined by the Company as infrastructure assets, projects and
asset-backed businesses that utilise natural or waste resources or
support more environmentally friendly approaches to economic
activity, support the transition to a low carbon economy or which
mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:
-- long-term, predictable cash flows, which may be wholly or
partially inflation-linked cash flows;
-- long-term contracts or stable and well-proven regulatory and legal frameworks; or
-- well-established technologies, and demonstrable operational performance
JLEN's aim is to provide investors with a sustainable,
progressive dividend per share, paid quarterly and to preserve the
capital value of the portfolio over the long term on a real basis.
The target dividend for the year to 31 March 2023 is 7.14 pence per
share(1) . The dividend is payable quarterly.
JLEN is an Article 9 fund under the EU Sustainable Finance
Disclosure Regulation and has a transparent and award winning
approach to ESG.
Further details of the Company can be found on its website
www.jlen.com
LEI: 213800JWJN54TFBMBI68
(1) These are targets only and not profit forecasts. There can
be no assurance that these targets will be met or that the Company
will make any distributions at all.
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