16th Jun 2025 08:48
(Alliance News) - NextEnergy Solar Fund Ltd on Monday pledged to maintain its dividend after reporting a fall in net asset value per share in the last financial year.
The Guernsey-based specialist investor in solar energy and energy storage said net asset value per share fell 9.2% to 95.1 pence at March 31 from 104.7p a year prior.
The decline in NAV reflected a decrease in short-term UK power price forecasts due to a downwards revision of gas price estimates, movements in the fair value of the holding in NextPower III LP, and other factors including such as forex, fund operating expenses and provisions for asset health, NextEnergy Solar said.
Gross asset value slipped by 8.6% to GBP1.06 billion from GBP1.16 billion and income generated declined 8.5% to GBP73.2 million from GBP80 million.
Interim Chair Paul Le Page commented: "This year has not been easy for NESF, our shareholders, and the wider investment company sector. We have seen continued pressure on our share price discount to net asset value which averaged 27% throughout the 12-month period but we are pleased to see the start of a recovery since the company's discount hit an all-time high in January 2025. The sustained discount has been driven by multiple macroeconomic factors which are outside of the company's immediate control; this has resulted in negative sentiment towards the entire alternative investment company sector."
Shares in NextEnergy Solar were up 0.1% to 70.29p - a 26% discount to the March 31 NAV - in London on Monday morning.
The dividend was raised by 1.0% to 8.43p for the 12 months to March from 8.35p a year prior.
Next Energy Solar confirmed its full-year dividend target guidance for the year ending March 31, 2026 is the same 8.43p. This is forecast to be covered in a range of 1.1 times to 1.3x by earnings post-debt amortisation.
Looking ahead, the company continues to explore "multiple" strategic options for the future.
By Jeremy Cutler, Alliance News reporter
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