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Having read the accounts,they state most of the debt is fixed and some hedging is being done.
Hopefully selling some underperforming assets will improve the balance sheet.
But the discount to NAV offers some leeway for going forward.
GLA holders.
I would say 2% increase in cost of debt would be £4m not £44m.
Yes, a yield of 10%+ is certainly good value, if it's mainained, but the lack of visibility of what underpins cashflow has put me off buying. Company received £72m from it's portfolio (i.e it's subsidiaries) in 2022/3 and £47m in H1 2023/4. Not clear however if those are underpinned by positive cashflows in them (compared to say, running down cash balances) or from which subsidiaries they came. Total consolidated debt is now £440m, so a 2% increase in borrowing costs would be £88m. I like a yield as much as anyone but I prefer it from companies with low debt and strong cashflow...
There does seem to be some serious money being borrowed but they do have projects being progressed.
Personally the SP at present maybe about right but going forward more revenue should be produced.
If dividend maintained the shares look a bargain to me.
AIMO
"The lack of debt is a positive"
SEIT does have debt; £100m at holding company level and about £340m in the subsidiaries. If they prepared consolidated accounts the balance sheet would show debt of about £440m, which is 44% of NAV.
Tend to buy wanted shares when the price reduces.
Current dividend yield keeps improving.
AIMO.
GLA holders
I agree the accounts fail to attribute where the revenue is generated.
As long as the overall investment portfolio is in a reasonable state then further information maybe of limited value.
The lack of debt is a positive, although the current investment outlook is obviously challenging.
For me now could be a good time to accumulate these discounted assets.In a few years the trust SP could be revised considerably upwards.
In time collecting and reinvesting the dividends should give some chance of making gains unless the assets perform quite badly.
AIMO.
But how can anyone know if the dividend is safe? The company do not publish a consolidated profit or cashflow or even analyse from which subsidiaries the holding company receives it's cash. All we know is that the holding company withdrew £85m from it's subsidiaries last year (and £47m in the first half). No basis to know whether that's sustainable or not.
For me it makes sense to add with dividend if the SP is still depressed in a few weeks time.
As the dividend looks relatively safe the yield may improve further.
GLA holders.
Agree very difficult to value any company,especially this one but I feel most of the bad news is baked in the current SP.
I feel a likely scenario is the company and SP just mark time until interest rates start declining.
But the dividend gives a good yield for recent buyers while we wait for better times.
AIMO.
Depends how reliable is the NAV. Most of their 'investments' are just subsidiaries. Instead of preparing consolidated accounts, they do their own valuation of these subsidiaries and record them in their balance sheet at that. There's plenty of companies out their that, if they did that, they'd look to be trading at huge discounts to NAV. Smoke and mirrors...
Well hopefully I will be in profit after dividend payment.
On hindsight should have bought all today but perfect timing is usually just luck.
Sold my Serco shares yesterday and banked a good price.
Onwards and upwards.
GLA holders.
I'm also hovering over the buy button at this low SP.
Waiting for funds to arrive then will probably dip the the toe in the water.
Good evening.
Got a good price and pressed the buy button.
The latest RNS states the NAV has reduced to about 90p,but I still think there's good value to be had at current price.
The dividend is now yielding about 10%, which is super high.
GLA holders.
Surprised to see this go lower but then almost everything is getting bashed ATM.
Look to buy very soon as dividend is coming up.
The yield and discount on NAV look positive in my opinion.
GLA holders.
A post really lacking in any understanding of the company or the market for renewable infrastructure funds, especially on the massive discounts they are already on.
What does "results" mean - the NAV, the operational performance of the underlying assets, or I think you are talking share price performance which is not "results".
On NAV with a stabilisation of discount and exchange rates expect minimal movement.
Operational performance, all seemed good with further movement from assets performing rather than under construction.
Buybacks at the current discount to NAV very accretive.
Dividends secure.
Please elaborate on your prediction!
SEIT will announce its Interim Results for the six-month period ended 30 September 2023 on Monday 4 December 2023. These results will be shockingly bad, that’s obvious…. but maybe an opportunity to pick a minimal amount of these up for 50p.
Did anyone see the webinar last week? Wondered why they had it and how significantly it affects SDCL.
Look at Denfos other posts and you will see what he's upto.
Save me sometime as I am a touch lazy.
Does anyone know how much debt and what rate it is. Is it RCF?
Arethey paying it down?
I bought GCP recently 10% debt doing buy backs and paying down debt. Looking for something similar. Thank you for your time
Agreed that we have been hit by a “small” inflationary impact, but at this price I can’t see any issues in the medium term. We should also benefit b from the strength of the USD. They were confident enough to run the buyback scheme even during uncertainty.
What they mean is that revenues go up to some degree due to inflation, but not as much as inflation. In other words, they go up less than inflation, which means they fall in real (inflation-adjusted) terms. The so-called "positive impact" is only in nominal terms, not real terms.
It's like when you receive 3% interest on your savings but inflation is running at 5%. You're falling behind at a rate of 2% per annum.
Last annual results update.
“Approximately half of SEEIT's current portfolio by value has revenues that are partly or wholly inflation-linked, which culminates in an overall positive inflation correlation. Therefore, higher than expected inflation has had an overall small positive impact on the Company's returns during the year”
What does "run out of money" even mean? Oops, the piggy bank is empty?
At the last update, SEIT had cash on hand, gearing not high, dividend covered 1.2x.
That said, I'm still not buying because I think it's vulnerable to inflation, and I'm trying to hedge against inflation. But at this price I'm sorely tempted.