3rd Mar 2026 14:35
(Alliance News) - Bluefield Solar Income Fund Ltd on Tuesday reported a lower net asset value at the end of its first half, but raised its interim dividend whilst moving ahead with a sale process.
Bluefield's NAV was GBP683.3 million on December 31, equating to NAV per share of 107.8 pence, which was down from 126.03p per share on-year.
During the first half of financial 2026, the solar-power focused investment firm saw its trading discount widen to 8.5% from 8.0%. This reflected high UK Gilt yields and the anticipated impact of the UK government's indexation consultations on renewables obligations certificates and feed-in tariffs, it said, which it sees lowering NAV about 2% further.
Bluefield said it will continue "to monitor the discount rate in future quarters".
Total return was negative 3.7%, compared to a positive return of 0.5% a year prior. The firm lifted its first interim dividend, however, to 2.25p per share, from 2.20 pence.
Bluefield also said that the formal sale process started in November "continues to progress in line with expectations". The number of potential bidders has been cut to a targeted few with which it is engaging on "more focused due diligence", following its shareholders' choice to pursue more aggressive growth options.
Bluefield's partnership with GLIL has now reached phase three, with the sale of 75% interest in a 44-megawatt newly built photovoltaic asset. A ready-to-build pipeline was completed in August, bringing total proceeds from the initiative to GBP119 million.
Bluefield Chair Michael Gibbons said: "The persistent discount of the company's share price to NAV, and the consequent difficulty in accessing capital for growth, continue to challenge [Bluefield]. At times during the six-month period the company's share price had fallen to below 70 pence, a discount to NAV of roughly 40%, no doubt negatively impacted by the UK government's consultation on the future indexation of ROCs and FiTs. This was frustrating...at a time when the attraction of relatively inexpensive, clean solar power was being confirmed on a regular basis."
He added: "Solar power investment in the UK market is growing strongly, notwithstanding the challenges for infrastructure funds, and has committed support from the UK government...The board has long shared the ambition to lead the way in building renewables in the UK, and it is therefore a source of great regret that the company has effectively been prevented from raising more capital to do so...We nevertheless share the vision that, but for the constraints, there is so much unfinished business to be done."
Bluefield Solar shares were down 3.1% to 74.80 pence each on Tuesday afternoon in London.
By Martin Miraglia, Alliance News reporter
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