16
February 2024
JLEN ENVIRONMENTAL ASSETS GROUP
LIMITED
("JLEN" or the "Company")
Net Asset Value and Dividend
Announcement
Net Asset
Value
JLEN Environmental Assets Group Limited
("JLEN" or the
"Company"),
the listed environmental infrastructure fund, announces that
its unaudited Net Asset Value ("NAV") at 31 December 2023 was £777.7m
(117.6 pence per share). This reflects a decrease of 2.1 pence per
share since 30 September 2023 after paying the quarterly dividend
of 1.9 pence per share.
Highlights in
the period
·
Solid operational performance with continued strong cash
generation from investments
·
Near term price fixes achieved in excess of valuation
assumptions, partially mitigating downward movements from updated
power price forecasts and actual inflation
·
Continued focus on asset enhancements in the portfolio to
increase operational efficiencies
·
Acquisition of the remaining 30% shareholding in Bio
Collectors Holdings Limited creating the potential for JLEN to
deliver operational synergies across its portfolio of food waste
anaerobic digestion plants
·
Steady progress on development and construction assets in
line with expectations
·
Prudent balance sheet management maintaining low levels of
gearing
Summary of changes
in NAV:
Item
|
Pence per share
movement
|
NAV at 30 September 2023
|
119.7p
|
Dividends paid in the period
|
-1.9p
|
Power prices (downward revision from forecasts offset
by value accretive price fixes)
|
-1.5p
|
Battery storage revenue forecasts
|
-0.6p
|
Actual inflation
|
-0.7p
|
Other movements (including actual performance)
|
+2.6p
|
NAV at 31 December
2023
|
117.6p
|
Valuation factors
Key valuation movements include the
negative impact from reductions in independent power forecasts
(-2.3p), partially offset by the subsequent Electricity Generator
Levy movement and favourable price fixes secured in the period
(+0.8p). In addition to this, reductions in the gross
margin forecasts for battery storage assets, prompted by
independent consultants reappraising the available revenue
opportunities, led to a -0.6p reduction. Lastly, there was also
downward revision from the recognition of actual quarterly
inflation finishing the calendar year below forecasts (-0.7p). The
Investment Manager continues to monitor macroeconomic markers,
including UK gilt yields, and consequently discount rates remain
unchanged this period.
Gearing
At 31 December 2023 project level gearing was
17% and overall fund gearing was 30%, with the Company's Revolving
Credit Facility ("RCF")
£148.1m drawn from a total facility size of £200m. The Company
continues to maintain sufficient headroom in its RCF to finance its
firm commitments relating to construction assets held within the
portfolio and earmarked follow-on investments.
Capital allocation strategy
The Investment Manager continues to make good
progress on selective asset disposals with several credible
opportunities being pursued, in line with the Company's capital
allocation strategy.
As stated in previous announcements, surplus
capital generated from the portfolio and from asset sales will be
prioritised towards existing commitments, compelling follow-on
investments and value enhancements, alongside managing the RCF to
maintain a robust balance sheet and the potential for share
buybacks.
Dividend
The Company also announces a quarterly interim
dividend of 1.9 pence per share for the quarter ended 31 December
2023, in line with the dividend target of 7.57p per share for the
year to 31 March 2024, as set out in the 2023 Annual
Report.
Dividend
timetable
Ex-dividend date: 29 February
2024
Record
date:
1 March 2024
Payment
date: 22 March
2024
This announcement contains information that is
inside information for the purposes of the Market Abuse Regulation
(EU) No. 596/2014.
For further information, please
contact:
Foresight Group
Chris Tanner
Edward Mountney
Wilna de Villiers
|
+44(0)20 3667 8100
institutionalir@foresightgroup.eu
|
Winterflood Securities Limited
Neil Langford
|
+44(0)20 3100 0000
|
SEC
Newgate
Elisabeth Cowell
Alice Cho
Harry Handyside
|
+44 (0)20 3757 6882
Jlen@secnewgate.co.uk
|
Sanne Fund Services (Guernsey) Limited
Matt Falla
Gemma Berry
|
+44 (0)20 3530 3600
|
About JLEN
JLEN's investment policy is to
invest in a diversified portfolio of Environmental Infrastructure.
Environmental Infrastructure is defined by the Company as
infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally
friendly approaches to economic activity, support the transition to
a low carbon economy or which mitigate the effects of climate
change. Such investments will typically feature one or more of the
following characteristics:
· long-term, predictable cash flows,
which may be wholly or partially inflation-linked cash flows;
· long-term contracts or stable and well-proven regulatory and
legal frameworks; or
· well-established technologies, and demonstrable operational
performance.
JLEN's aim is to provide investors
with a sustainable, progressive dividend per share, paid quarterly
and to preserve the capital value of the portfolio over the long
term on a real basis. The target dividend for the year to 31 March
2024 is 7.57 pence per share1.
JLEN is an Article 9 fund under the
EU Sustainable Finance Disclosure Regulation and has a transparent
and award winning approach to ESG.
Further details of the Company can
be found on its website www.jlen.com
LEI:
213800JWJN54TFBMBI68
(1) These are targets only and not profit forecasts. There
can be no assurance that these targets will be met or that the
Company will make any distributions at all.