Executing our strategy successfully for over a decade.
49
operating wind farms under management
2
GW capacity
£1.2 billion
paid in dividends
Strategy
Delivering returns
We aim to provide shareholders with an annual, inflation-linked dividend while preserving capital value on a real basis through the reinvestment of excess cashflow. We aim to provide a 10% net return to investors (based on our Net Asset Value). Since listing, the Company has delivered on its promise to increase the dividend by inflation or better each year, and net asset value per share has demonstrated solid long-term growth.
Reinvestment of excess cash
After paying dividends, excess cash is reinvested to further grow the business with an enduring aim to at least preserve the NAV in real terms.
Leveraging our position and expertise
Our scale and investment expertise enable us to source and price attractive assets and find solid risk adjusted returns.
Optimisation of assets
Our robust approach to managing the operation of assets is enabled by an in-house team of senior engineers that works to maximise availability and output over the long term.
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Investment Policy
| We will invest predominantly into operating wind farms which have a capacity of over 10 MW. |
| No wind farm project acquired will have an acquisition price greater than 30% of the Gross Asset Value of the Group immediately post-acquisition (with 25% being a preferred limit). |
| We will acquire 100%, majority or minority interests in individual wind farms, usually held through special purpose vehicles (SPVs); when investing in less than 100% of the equity share capital of a wind farm SPV, the Company will secure its shareholder rights through shareholders’ agreements and other transaction documents. |
| Any investment outside the UK, in construction projects or in non-equity or associated debt instruments is limited to 15% of Gross Asset Value. |
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The Company will retain measured exposure to UK power prices and seeks to maintain an even balance of fixed and merchant cashflows over the life of the assets. The fixed cashflows predominantly come via Government-backed subsidy schemes (ROCs and CfDs) but the Company may also enter into PPAs or hedging contracts that fix the price of electricity sold for short periods of time.
The Company intends to make prudent use of portfolio level leverage to finance the acquisition of investments and to preserve capital on a real basis. The Company expects that the total of short-term acquisition financing and long-term debt will be between 0 and 40% of Gross Asset Value of the Group at any time, with average total debt being between 30% and 40% in the longer term. There will be a third party borrowing limit of 40% of Gross Asset Value calculated immediately after the borrowing has been drawn down.
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