Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
To invest mostly in operating UK wind farms with the aim to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio.
Find out MoreLondon South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I've just read this Capital Allocation Update RNS...
https://citywire.com/investment-trust-insider/news/refinancing-burden-could-weaken-renewable-funds-dividend-cover/a2428958?utm_medium=website&utm_source=citywire_it_insider&utm_campaign=home-content-list-1&utm_content=investment-trust-insider-latest-news-list
... and I think I may have misinterpreted the dividend announcement. It sounds like the 14% increase will be instead of the Dec 2023 RPI increase, not as well as. In other words, the dividend in 2024 will be 10p, not 10p plus Dec 2023 RPI increase, which was how I originally interpreted it.
Assuming i've not misread the accounts..
UKW is making around £1B profit, has outstanding long term debt of £1B and a dividend cover of 3X.
They can pay down 2/3 of the debt this year and still cover the dividend.
Cheers, the key bit is -
'He said Greencoat UK Wind (UKW), the £3bn portfolio of wind farms run by Stephen Lilley and Laurence Fumagalli, would see its dividend cover fall from 3.2 times to a still very healthy multiple of 3.07%,'
More than happy with 3x divi cover on a >7% yield. It leaves plenty spare for the buy backs and some debt reduction.
We approach an election that possibly heralds Labour or Lib/Lab. What will their view be on Wind Farms and energy in general? I'm worried they may see shareholders as rich pickings.
Craigb,
My average is £1.55!
I've got just over £30k in here. More exposed than I'd like but the dividends keep this attractive.
I should take my dividends as cash, and slowly reap back my investment but I appreciate compounding is the more strategic approach but at what point in your life do you think you should start taking back.
Our mentality is to save, save, save, but when do we live and enjoy it?!
Wow! A 14% dividend increase on top of the RPI increases. I wasn't expecting that. To be honest, I'm not sure it's justified, given that the NAV hasn't increased. I would have preferred them to reduce their debt, which is now up to 38% of GAV. Higher dividends might attract unwanted attention from politicians!
I’m averaging just over 144p I am happy at that but will keep adding a few under 140p.
I'm more than happy to keep adding below 140p.
I'm 54 & this is the type of share folk could hold to retirement (unless UKW has some kind of disaster).
I don't usually like share buy backs (lloyds Bank) but i feel this is a good decision, increased divi, looks very cheap now to me.
Also if EPS are 0.14 going forward, this gives a PE of 10.55 and a pay out ratio of 71%, which is quite high.
Any 100 mil buyback is 3% on the SP. Taking us from 131 to 135, but we are very oversold currently.
I think someone said they can't get more funding for new projects as their SP is under NAV.
Makes sense I guess to buy back, push SP higher to NAV and you get the 7% (7mil PA) return now.
Making the same mistake as the house builders in buying back shares rather than investing in their core business.
I make it a 7.6% yield at the current share price.
All excellent stuff from UKW.
Dividend, dividend increase, massive discount to NAV, share buyback.
Can this shake off the decline ? If not what on earth will it take ?
Increase in Annual Dividend
As a consequence of the Company's prospects, strong balance sheet and cash flow generation, the Board has determined it will increase its annual dividend target to 10 pence share for the 2024 financial year, an increase of 14.2% over the 2023 target dividend of 8.76p. This increase is significantly higher than forecast December 2023 RPI inflation.
Commencement of Share Buyback Programme
The Programme will commence shortly, and subject to market conditions, end by no later than 25 October 2024. The Programme will be executed under the authority granted by shareholders at the Greencoat annual general meeting on 23 April 2023 to acquire up to 347,506,861 shares, equating to c.14.99% of the issued share capital at the time.
Discount to NAV
Net Asset Value / Net Asset Value per share
£3,845.0 million / 165.8 pence
Oh dear, not at capitulation yet, and we are very low on the RSI. I'm looking at IBTl and taking some risk off the table!
Some huge sells today:
13-Oct-23 16:40:54 132.10 29,162 Sell* 132.60 132.80 38.52k O
13-Oct-23 16:36:23 132.10 11,365 Sell* 132.60 132.80 15.01k A
13-Oct-23 16:36:23 132.10 38,635 Sell* 132.60 132.80 51.04k A
13-Oct-23 16:36:10 132.10 27,545 Sell* 132.60 132.80 36.39k
It was 142 a week ago, why sell it now at 132?
Did someone just make fusion viable or is this FUD?
PE of 6, 6% yield, yes please.
@schwee
It's not just about the yield margin. It's also about the fact that UKW dividends should rise with inflation, but bond coupons won't.
The divi yield has to carry a healthy margin over gilts to account for the added risk of UKW. So perhaps not cheap at all in the current bond markets turmoil.
Unlike the Renewable Energy Funds, HICL has hardly increased its dividend over the past few years, and GCP has no plans to increase its dividend at all. Anyone who buys UKW at the current price is not going to regret it.
I added a few more yesterday. Partly because my EPIC holdings are being taken over so I will have to find a new home anyway. Relative to epic, these have dropped so I sold some epic early to add here, Trig and NG.
I've diversified into some FSFL, but I keep coming back to UKW as the best of the bunch. Also, though I have them on my watch list, I've so far avoided companies like HICL and SEIT, because I think they're vulnerable to prolonged inflation, as they have long contracts that are only partially linked to inflation. Also, note that GCP invests in the debt of infrastructure companies, not directly in infrastructure. Still, the dividend yield of some of these companies is getting so high that it's difficult to resist the temptation!
Likewise. The whole sector is screaming with bargains: UKW HICL HEIT GCP ORIT..