SDCL Energy Efficiency Income reports inaugural results – SDCL Energy Efficiency Income (SEIT) is one of the newer investment trusts having listed in December 2018, raising £100m. It has this morning released its inaugural set of annual results, covering the period to 31 March 2019. The market for energy efficiency is rampant globally, which has been evident as ‘clean energy’ focused strategies have dominated new listings in the closed-end space.
Up and running
SEIT, which raised a further £72m in April (click here to read this story), after acquiring its seed portfolio, published the following highlights from its first year:
- Acquisition of Seed Portfolio for £87m in December 2018 (£57m invested now and £30m committed to future projects) and the first investment in the USA of £3.8m in March 2019
- Pipeline of near- and medium-term investment opportunities diversified across technology and geography
- Portfolio valuation of £60.9m at 31 March 2019 (the £57m seed portfolio investment plus the US purchase for £3.8 – in other words these were valued at cost)
- Cash of £38m at 31 March 2019 – available for investments, including £30m for three committed investment opportunities
- NAV per share as at 31 March 2019 of 98.4p, up from 98.0p at IPO
- Earnings per share in the period of 0.4p
- Interim dividend of 1.0p declared relating to the period ending 31 March 2019
- Target dividend of 5p for year ending March 2020 and 5.5p for the year ending March 20213
- Further fundraising additional £72m raised, after period end on 16 April 2019
Jonathan Maxwell, CEO of SDCL, the manager said: “The portfolio that we have acquired since the IPO has performed in line with expectations, and we have demonstrated our ability to source and execute on additional investment opportunities that have enhanced and diversified it further. We have developed a healthy pipeline of projects that will allow us to deliver cheaper, cleaner and more reliable energy solutions to clients and provide stable, predictable cash flows to the company.”
SEIT’s investment business is focused on clean energy and energy efficiency project finance. SEIT has established specialist funds in the UK, Ireland and Singapore and is launching new funds in New York and China. SEIT’s funds in each country are in partnership with governments as an investor, promoter or guarantor. The funds invest in energy efficiency retrofit projects and seek a return based on savings achieved. This generates ongoing operational cost savings and carbon emission reductions as well as improvements to productivity and asset values, in compliance with current and prospective building regulations.
SEIT: SDCL Energy Efficiency Income reports inaugural results