23rd Jun 2025 09:20
(Alliance News) - SDCL Efficiency Income Trust PLC on Monday said it considering strategic options to address the "material" share price discount to its net asset value.
The London-based investment trust focused on energy efficiency and decarbonisation said net asset value per share was 90.6 pence as at March 31, little changed year-on-year from 90.5p.
The company swung to a pretax profit of GBP70.1 million in the financial year to March 31 from a loss of GBP56.3 million a year prior. Earnings per share were 6.4p compared with LPS of 5.2p a year ago.
SEIT said it delivered a total return on an NAV basis of 7.1% in the financial year, improved from 4.7% a year prior, and declared an aggregate 6.32p per share in dividends, up 1.3% from 6.24p a year ago.
"This has been delivered despite markets that have continued to present an extraordinarily challenging environment for both SEIT and its peers," the company said in a statement.
Looking ahead, SEIT announced dividend guidance of 6.36p per share for the year to March 31 2026, an increase of 0.6%. "The company continues to target progressive dividend growth thereafter," it said.
Chair Tony Roper said: "SEIT's operational performance was generally in line with expectations in the year, with the portfolio delivering its targeted distributions to fully cover the dividends for our shareholders."
But SEIT said it remains "frustrated " that its share price continues to drift down.
Chair Roper commented: "While dividends have increased and operational performance has improved, we, like many of our peers, remain frustrated that our share price has drifted down and our shares continue to trade at a material discount to NAV per share. The status quo is clearly unsustainable. With this in mind, we have announced today that the board are considering all strategic options to deliver value for all shareholders in an effective and efficient manner."
On Monday, shares in SDCL rose 2.7% to 52.60p each in London.
SDCL said it has intended to make further disposals in the financial year, following the sale of its investment in UU Solar to UK Power Networks Services Holdings Ltd in May.
However, this will take longer than envisioned due to rising macroeconomic and geopolitical uncertainty significantly which impacted deal activity by early 2025.
"We are ultimately reluctant to sell assets when the value for shareholders would be diluted by heightened uncertainty," the company said.
SDCL said it remains focused on releasing liquidity from the portfolio with proceeds to be used to reduce gearing and commence a share buyback programme.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Sdcl Ef. Inc Tr