Annual Financial Report

JLEN Environmental Assets Group Ltd

15 June 2023

 

15 June 2023

JLEN Environmental Assets Group Limited

JLEN reports results for the year ended 31 March 2023

JLEN Environmental Assets Group Limited ("JLEN" or the "Company"), the listed environmental infrastructure fund, is pleased to announce the Company's results for the year ended 31 March 2023.

Highlights

Resilient growth and NAV performance

·      Net Asset Value up 7% to £814.6 million (31 March 2022: £762.9 million)

·      NAV per ordinary share up 7% to 123.1 pence (31 March 2022: 115.3 pence), primarily due to an upward revision to electricity and gas price forecasts and the continuing effect of elevated inflation on the Company's inflation-linked contracts

	NAV per share
NAV at 31 March 2022	115.3p
Dividends paid in the period	-7.1p
Power prices (net of Electricity Generation Levy)	8.7p
Inflation	10.2p
Discount rate changes	-5.9p
Other movements (including actual performance)	1.9p
NAV at 31 March 2023	123.1p

Portfolio growth and diversification

·      Portfolio valuation increased by 13% to £898.5 million (31 March 2022: £795.4 million)

·      Five acquisitions completed, portfolio comprises 42 assets split across seven technology sectors

·      Portfolio delivered returns in line with operational and financial performance targets, with distributions at or above budget

Dividends and balance sheet

·      Total dividends declared of 7.14 pence per ordinary share for the year to 31 March 2023 and targeting a dividend of 7.57 pence per ordinary share for the year to 31 March 2024, a 6% uplift over the prior year

·      Dividend cover of 1.51 times, on a paid basis for the financial year, highest dividend cover ratio since IPO

·      Share price total return since IPO of 99.0% (7.9% annualised)

·      One-year extension to existing £170 million Revolving Credit Facility ("RCF") and activated £30 million accordion facility

Key investment metrics

All amounts presented in £million (except as noted)	Year ended 31 March 2023	Year ended 31 March 2022
Net assets(1)	814.6	762.9
Portfolio value(2)	898.5	795.4
Operating income and gains on fair value of investments	108.4	192.9
Net Asset Value per share(3)	123.1p	115.3p
Distributions, repayments and fees from portfolio	83.6	56.5
Profit before tax	98.3	185.0
Gross asset value(3)	1,119.8	1,023.4
Share price(3)	119.6p	112.8p

(1) Also referred to as "NAV".

(2) Classified as investments at fair value through profit or loss on the statement of financial position.

(3) Net Asset Value per share, share price and gross asset value are alternative performance measures ("APMs").

Ed Warner, Chair of JLEN, said:

"The case for investment in sustainable infrastructure has never been stronger as we focus on delivering on

decarbonisation targets and creating energy security. I am very pleased to report that JLEN has delivered a reassuringly resilient performance over the past 12 months, achieving growth in Net Asset Value per share and meeting its dividend target in spite of a backdrop of economic turmoil and regulatory and political challenges. We continue to outperform the FTSE All-Share Index and since inception, we have delivered a total share price return of 99.0%, in line with our focus on providing a sustainable financial return to our investors.

"Investment activity in the year has focused on construction and development stage assets in the battery storage, controlled environment and green hydrogen sectors. The higher returns offered by opportunities at this stage are attractive and given the contribution that these technologies will make towards a more sustainable future, we are pleased to provide our investors with access to these important asset classes.

"Looking ahead, in line with JLEN's progressive dividend policy, the Board has decided to set a dividend target of 7.57 pence per share for the year to 31 March 2024. This represents an increase of 6% on the year just ended and is expected to be well covered by cash flows from the Company's underlying assets."

Annual report

A copy of the annual report has been submitted to the National Storage Mechanism and will shortly be available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The annual report will also be available on the Company's website at http://www.jlen.com where further information on JLEN can be found.

Details of the conference call for analysts and investors

A webinar and in-person event for the annual results will be held at 10:00 a.m. (UK time) today,15 June 2023, hosted by Chris Tanner, Chris Holmes and Ed Mountney, Investment Managers to JLEN. To register for the webinar, please contact SEC Newgate by email at [e-mail].

Retail Investor Webinar

Chris Tanner, Chris Holmes and Ed Mountney will also deliver a live presentation for retail investors via the Investor Meet Company platform on Wednesday 21 June 2023 at 11:00 am (GMT).

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9.00 a.m. the day before the meeting or at any time during the live presentation.

Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.

Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all interested parties.

Investors can sign up to Investor Meet Company for free and add to meet JLEN Environmental Assets via:

https://www.investormeetcompany.com/jlen-environmental-assets-group-limited/register-investor

For further information please contact:

Foresight Group Chris Tanner Ed Mountney	[phone]
Wilna de Villiers	[e-mail]
Winterflood Securities Limited Neil Langford	[phone]
SEC Newgate Elisabeth Cowell Alice Cho Harry Handyside	[phone] [e-mail]
Sanne Fund Services (Guernsey) Limited Matt Falla Gemma Berry	[phone]

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 2024 is 7.57 pence per share¹.  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.

 

END