SDCL Energy Efficiency posts solid performance on joining FTSE 250

(Sharecast News) - SDCL Energy Efficiency Income reported a net asset value of £943.6m in its interim results on Friday, up 36% from £693.8m at the start of the period.
The FTSE 250 firm said its net asset value per share at the period end on 30 September was 104.5p, up 2% from the 102.5p it reported as at 31 March.

Its total net asset value return for the first half was 4.7%, and was 7.1% per annum since its initial public offering.

SDCL recorded a profit before tax of £23m in the period, up 34% year-on-year.

The board declared interim dividends of 2.81p per share in the period, covered by earnings per share and cash from investments.

It said it was on track to deliver 5.62p per share for the year ending 31 March, in line with its previous announcements on the target dividend.

Investment cash flows from the portfolio during the period totalled £27.2m, which was in line with expectations, providing cash cover of 1.2x for interim dividends paid during the period.

The company's portfolio valuation was £785m as at 30 September, up 42% from £553m on 31 March.

New investments and commitments totalled £208m in the first half, and since the first half ended, additional investments of £41m had been made.

The firm completed a successful capital raising of £250m in September, with the proceeds used to repay £70m of revolving credit facility debt, and to commit to new investments.

SDCL was admitted to the FTSE 250 index as its market capitalisation surpassed £1bn, increasing the marketability and liquidity of its stock for shareholders.

"The last six months have been an active period for the company," said chairman Tony Roper.

"Securing new investments has diversified our investment portfolio further.

"The investment manager continues a number of asset management initiatives on the existing portfolio to maintain and enhance value, as well as seeking new investment opportunities that can deliver attractive risk-adjusted returns for investors."

Roper said the company believed it could successfully deploy the remaining funds from the recent capital raise in a timely manner, based on its current identified pipeline of new investment opportunities.

That would include follow-on investments within the existing portfolio, as well as newly-sourced opportunities, a number of which had resulted from the investment manager's existing relationships.

Jonathan Maxwell, chief executive officer of the trust's investment manager SDCL, said it was a "hugely significant time" for the energy efficiency sector.

"Post COP26, there is now widespread recognition of the role it can play in the global effort to tackle the climate crisis," Maxwell added.

"We are very well positioned to continue leading in this market and generate value for our shareholders through expanding our portfolio of projects that deliver cheaper, cleaner and more reliable energy solutions."

At 0929 GMT, shares in SDCL Energy Efficiency Income were down 0.32% at 116.62p.