JLEN Environmental Assets Group Limited (LON:JLEN), the listed environmental infrastructure fund, has announced the Company’s results for the year ended 31 March 2024.
Highlights
Resilient earnings and Net Asset Value (“NAV”):
· NAV per share of 113.6 pence following payment of dividends to shareholders in line with targets
· Strong annualised NAV total return of 8.0% since IPO
· On course to deliver dividend of 7.57 pence in line with annual target, representing a yield of 8.1% on the closing share price at 31 March 2024
Summary of changes in NAV:
| NAV per share | |
| NAV at 31 March 2023 | 123.1p |
| Dividends paid in the year | -7.5p |
| Power prices forecast | -5.4p |
| Battery revenue outlook | -2.2p |
| Guarantee of origin certificates | +1.7p |
| Inflation | +0.9p |
| Discount rate changes | -4.9p |
| Revaluation of cost asset(s) | +0.7p |
| Other movements (including discount rate unwind and actual performance) | +7.2p |
| NAV at 31 March 2024 | 113.6p |
Record cash generation from underlying assets:
· Consecutive year of record distributions received from investments
· 1.30x dividend cover – second highest since IPO
· Prudent balance sheet management maintaining low levels of gearing
Clear and effective capital allocation strategy:
· Continued progress on development and construction assets – unlocking potential for capital growth
· Progress made on several credible selective asset disposal opportunities
· Sales proceeds will provide flexibility to pay down debt and consider share buybacks where accretive to NAV
· Existing commitments to development and construction-stage assets prioritised, with any new investment activity highly selective
Key investment metrics
| All amounts presented in £million (except as noted) | Year ended31 March 2024 | Year ended31 March 2023 |
| Net assets(1) | 751.2 | 814.6 |
| Portfolio value(2) | 891.9 | 898.5 |
| Operating income and (losses)/gains on fair value of investments | (3.8) | 108.4 |
| Net Asset Value per share(3) | 113.6p | 123.1p |
| Distributions, repayments and fees from portfolio | 87.0 | 83.6 |
| (Loss)/profit before tax | (13.9) | 98.3 |
| Gross asset value(3) | 1,091.8 | 1,119.8 |
| Share price(3) | 93.7p | 119.6p |
(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 Environmental Assets Group, said:
“As we celebrate JLEN’s 10th anniversary as a listed company, this year’s performance is another demonstration of our resilience, despite it being a challenging year for the listed renewable investment company sector, including JLEN. We have delivered consecutive years of record distributions received from investments, resulting in a dividend cover of 1.30 times – the second highest since IPO.
“In the current difficult operating environment, we have maintained our disciplined approach to investment activity during the year. Future cash flows remain robust, with comfort provided from near-term fixes, such that the Board has set a dividend target of 7.80 pence per share for the current year, an increase of 3%. We have also taken steps to strengthen our balance sheet, completing a successful refinancing of our RCF post period end.
“We are progressing several asset sales processes. We hope to complete the first transaction in the coming months.
“The Board has agreed a new fee structure with our Investment Manager which we believe will deliver excellent value for shareholders. We are proud of JLEN’s performance over the past 10 years, including the Company’s record of delivering consecutive dividend growth since its launch in 2014, and believes strongly in the Company’s purpose and prospects.”
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 am (UK time) today, 21 June 2024, hosted by Chris Tanner and Edward Mountney, Investment Managers to JLEN Environmental Assets Group. To register for the webinar, please contact SEC Newgate by email at [email protected].
