Foresight Environmental Infrastructure (FGEN) H1 2025 earnings summary

Executive summary

• Record cash generation of £46.6m, the highest for any six-month period since IPO, supported by strong operational performance and portfolio diversification.

• Dividend cover remained robust at 1.23x, with a reaffirmed annual dividend target of 7.80p per share, yielding over 10%.

• NAV per share decreased to 109.8p, mainly due to dividend payments and a full write-down of the HH2E hydrogen investment.

• Major asset sale completed, raising £68.1m from a 51% stake in six AD facilities, with proceeds used for debt reduction and a £20m share buyback programme.

• Portfolio value declined to £806.6m, reflecting asset sales, distributions, and the HH2E impairment.

Financial highlights

• NAV total return for the period was 0.04%; excluding the HH2E write-down, NAV TR was 2.6%.

• Adjusted earnings per share rose to 4.7p (from 3.7p), while reported EPS was -0.1p due to fair value losses.

• Gearing reduced to 28.7% (from 31.2%), with £44.4m net repayments of the revolving credit facility.

• Ongoing charges ratio: 1.26%, expected to fall further due to management fee reduction.

• Cash flow from operations: £31.3m, covering dividends paid by 1.23x.

Outlook and guidance

• Full-year dividend target of 7.80p per share reaffirmed, with dividend cover expected between 1.2x and 1.3x.

• No new investments planned in the short to medium term; focus on value enhancement, progressing construction assets, and capital discipline.

• Optimism for improved market conditions as interest rates are expected to decline and macroeconomic environment stabilises.