John Laing Environmental Assets has published its first set of results covering the period from its launch on 31 March 2014 to the end of March 2015. The NAV at the end of the period, adjusting for the dividend, was 98.2p – this compares to the 100p launch price and the 98p initial NAV of the company post issue expenses. the dividend for the year was 6p – in line with the fund’s target at launch. Cash flow from operations covered this dividend 1.23x.
The Directors anticipate being able to increase the dividend in line with inflation commencing with the payment in respect of the six months to 30 September 2015, subject to the conditions noted above. The target dividend for the year to 31 March 2016 is 6.054 pence per Ordinary Share being the initial target of 6.0 pence per Ordinary Share adjusted for inflation. The Company expects to commence paying quarterly dividends from January 2016, with the first payment in March 2016 in respect of the three months to 31 December 2015.
They say that during the period since IPO, wind speeds have been variable from month to month and somewhat below expectations over the entire period, but this has been offset in part by solar irradiation being in line with expectations. Despite a fire at the Frog Island facility in August 2014, which affected a significant portion of the operating capacity for several months, the contract with East London Waste Authority continued to be fulfilled and the facility is on track for full reinstatement in January 2016. Electricity prices have been below expectations over the period.
In building its portfolio, John Laing Environmental has been making use of its credit facility. The outstanding balance on this at the year end was £42.54m – they are raising cash by issuing new shares to pay this off and fund future acquisitions.
JLEN : John Laing Environmental shrugs off fire damage and low wind speeds