My expectation now is for the MM’s to move in to slowly drive the share price down to increase the dividend above 7%. It will be interesting to see what resistance there is to not let the sp drop much below the initial IPO price. Never had a 3 putt on Sat but did have 1 four putt, (in my defence the 1st one was from off the green, and it was a tricky borrow and the sun was in my eyes and I wasn't feeling too good and.........)
Wish I'd had no3putts against my 12 year old son at the weekend! Anyhow, you are right re the prospectus. I got to page 3 and died of risk warnings! But looking at some broker research the free cash flow yield at a mkt cap of £800m is around 11.1% and EV/EBITDA is around 8.8x for next year. Gives you some exposure to rising UK power prices as not all output is locked in under long term PPAs and ok balance sheet. UK wind projects are currently selling for around 9x EBITDA so valuation looks ok, not wildly cheap but okay and whilst you are waiting for wind projects to gain consents you get the 7% yield which looks sustainable and growable.
Quite right. The dividend was set out in the prospectus. I think, from memory they have allocated £55m for the divi which equates to a yield of just over 7% on a market cap of £781m. The growth will come from further windfarms achieving planning approval.
The share price should not affect the dividend; it was already set out in the extremely long and tedious prospectus. It would appear most of the institutional players have now decided on their strategy regarding either selling or holding and the majority of movement will now come from PI’s. Imo this is not a share for rapid growth but it will see some, the first indication as to what the markets think will be next Friday. As always, DYOR.
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