Amendment: Interim results to 30 June 2023

Foresight Solar Fund Limited

14 September 2023

 

The following amendment has been made to the 'Interim results to 30 June 2023' announcement released on 14 September 2023 at 07h00 under RNS No. 3750M.

The hyperlink to the Company's website has been corrected. All other details remain unchanged.

The full amended text is shown below.

14 September 2023

Foresight Solar Fund Limited

("Foresight Solar" or "the Company")

Interim results to 30 June 2023

Foresight Solar, a sustainability-focused fund investing in solar and battery storage assets in the UK and internationally, announces its results for the six months ended 30 June 2023.

Highlights

·   Net Asset Value (NAV) of £726.6 million (31 December 2022: £771.5 million). The Company's power price hedging strategy and higher inflation mitigated downward NAV pressure from lower near-term power forecasts and increased discount rates.

·   Global electricity production was 2.8% above forecast, driven by strong operational performance and good irradiation in the UK and Australia.

·   Cash receipts from subsidiaries were strong at £52 million, up 42% year-on-year, largely due to the Company's active power price hedging strategy.

·   Foresight Solar is commencing a divestment programme of approximately 200MWp. Proceeds will be used to reduce debt and recycle capital into yield-accretive opportunities.

·   In March, the Company acquired the rights to a 467MWp development-stage pipeline in Spain, providing further capital recycling opportunities.

·   The Board doubled the share buyback programme to £20 million given the disconnect between the Company's share price and the fair value of its portfolio.

·   Total dividends of 3.775 pence per share declared for the first half of 2023. With 1.5x cover on a cash basis, Foresight Solar remains well on track to deliver its full-year target dividend of 7.55 pence per share.

Key Metrics

	As at 30 June 2023	As at 31 December 2022	As at 30 June 2022
Net Asset Value ("NAV")	£726.6m	£771.5m	£754.9m
NAV per Share	119.9p	126.5p	123.8p
Gross Asset Value ("GAV")	£1,237.2m	£1,296.3m	£1,294.9m
Total Dividend per Share for the period	3.775p	7.12p	3.56p
Annualised Total NAV Return since IPO	8.3%	9.0%	8.9%

Commenting on the Company's results, Alexander Ohlsson, Chairman of Foresight Solar, said:

"Foresight Solar continued to deliver strongly against its core operational and financial objectives, despite the challenging macroeconomic environment in the first half of the year. Electricity production across the portfolio was 2.8% above budget, driven by strong operational performance and good irradiation, and, with assets in all geographies performing well, cash generation was exceptionally strong.

"We are well on track to deliver our 7.55 pence per share dividend target for 2023. Based on the strong cash distribution from the portfolio and the certainty provided by the high levels of near-term energy price hedges, we forecast a 1.5 times dividend cover to at least 2025 on a cash covered basis.

"We have also commenced a divestment process to realise gains and recycle capital whilst retaining an attractively balanced portfolio. Proceeds from disposals will be used to reduce gearing and to cover commitments under the existing pipeline. Based on current forecasts, the sale of about 200MW of operational assets will allow the full funding of our expected pipeline until the end of 2025 without the need for additional external capital.

"More than ever, we are focused on strongly returns-accretive opportunities for new investments, and earlier-stage projects, such as the 467MWp development-stage pipeline we acquired in Spain, offer high NAV growth potential with lower upfront capital requirements.

"Foresight Solar will celebrate its 10-year anniversary in October, and we are proud of the many achievements of the last decade. We have successfully grown the business, expanding internationally and into new technologies, and since our 2013 IPO we have paid a dividend every quarter, yielding Shareholders an annualised total NAV return of 8.3%. During this time, the dividend has grown every year, going from 6 pence per share to a targeted 7.55 pence per share, an impressive 25% increase. 

"We have seen a disconnect develop between asset values inferred by the share price and asset pricing supported by third-party transactions in the six months to June. The dislocation has led the Board to double the share buyback programme to £20 million.

"Looking forward, the scale of growth opportunities for Foresight Solar is considerable. The impetus to achieve Net Zero targets is driving even more investment into renewable generation, and solar and battery storage are major beneficiaries, with both being comparatively low cost and quick to deploy.

"With measures in place to shore up the balance sheet in a volatile macro environment, a highly cash-generative portfolio, and a laser-like focus on returns-accretive pipelines, Foresight Solar is well placed to continue delivering steady, resilient income with an element of NAV growth for decades to come."

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 Foresight Solar's website, where you can find all information about the Company: https://fsfl.foresightgroup.eu/shareholder-centre.

Results presentation

Foresight Solar is holding a presentation for analysts at 9:30am today. Analysts wishing to attend should contact [e-mail]. The presentation will also be uploaded to the Company's website.

Dividend Declaration

The Board is pleased to announce the second interim dividend relating to 2023 of 1.895 pence per ordinary share. The shares will go ex-dividend on 19 October 2023 and the Dividend will be paid on 24 November 2023 to shareholders on the register as at the close of business on 20 October 2023.

Foresight Solar confirms its dividend target of 7.55 pence per ordinary share for 2023.

For further information, please contact:

Foresight Group Matheus Fierro ([e-mail])	[phone]
Jefferies International Limited Gaudi Le Roux William Brown Harry Randall	[phone]
Singer Capital Markets Robert Peel Alaina Wong	[phone]
Citigate Dewe Rogerson Toby Moore Will Easton Lucy Gibbs	[phone] [phone] [phone] [phone]

 

END