27th Feb 2025 11:54
(Alliance News) - Greencoat UK Wind PLC on Thursday said it swung to a loss during 2024, as a result of fair value losses made within its investment portfolio.
The London-based investor in UK wind farms said net asset value per share at December 31 was 151.2 pence, down 7.9% on-year from 164.1p.
It swung to a pretax loss of GBP55.4 million during 2024, from a profit of GBP126.2 million, as total income reduced to GBP61.7 million from GBP234.4 million.
This was driven by a widened loss in the fair value of the firm's investments to GBP341.2 million, from GBP191.4 million a year prior.
Greencoat UK Wind declared a final quarterly dividend of 2.50p per share, leaving the total dividend for the year unchanged at 10p. The firm is targeting a total dividend of 10.35p per share for 2025.
The firm also on Thursday announced the launch of a further GBP100 million share buyback programme, following its completion of a GBP100 million buyback in mid-February. The programme will begin "shortly" and be executed over the next twelve months.
"The board and the investment manager recognise that this has been a challenging year for investors, but have been working hard to drive shareholder value through proactive actions and continued active asset management," said Chair Lucinda Riches.
"Despite lower portfolio generation for the year, cash generation has remained strong at GBP279 million. Over the next five years we expect to generate over GBP1 billion in excess cashflow, and additional capital should be available through further opportunistic disposals, providing optionality for capital allocation and shareholder returns."
Greencoat UK Wind swung to a loss per share of 2.43p from an EPS of 5.44p in 2023.
Riches continued: "Notwithstanding the current market conditions, our simple, low risk and proven model remains highly attractive. We have a sizeable and diverse portfolio of high quality assets and are well positioned to help deliver the UK government's net zero ambitions.
"We are continuing to deliver net returns to investors of 10% on NAV, and we remain confident in our ability to continue to meet our objectives of dividend growth in line with RPI and capital preservation over the longer term."
Shares in Greencoat UK Wind were down 0.2% at 111.03p in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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