Premier Miton Group (PMI) Investor update summary

Market environment and sector performance

• Renewables sector saw improved performance in H1 2025 due to stabilized interest rates and attractive valuations following previous years' challenges.

• U.K. investment companies traded at wide discounts, setting up for a rebound as market conditions became more benign.

• Commodity prices, especially gas and electricity, remained stable, supporting sector stability.

• Companies in the sector reduced growth ambitions, positively impacting dividends and share buybacks.

• The overall environment was positive for renewable energy investments.

Portfolio performance and drivers

• Portfolio gross asset return was 13.4% in H1 2025, outperforming the S&P Global Clean Energy Transition Index's 5.8%.

• NAV total return, including dividends, reached 23.9% over six months.

• Outperformance attributed to higher European and U.K. weightings, active share, and exposure to battery storage.

• Key holdings like Grenergy (+88%), Northland Power (+19%), RWE (+24%), and Clearway Energy (+24%) drove strong results.

• Underperformers included Greencoat UK Wind (–6%), Bonheur, and Cadeler, mainly due to sector-specific and regulatory pressures.

Revenue and income trends

• Revenue earnings fell by just over 8% to GBP 0.0409 per share, mainly due to dividend cuts in U.K. battery storage and Aquila European Renewables.

• Currency strength (sterling vs. USD and CAD) reduced the value of foreign dividends.

• Most portfolio companies continued to increase dividends, but sector-specific issues weighed on overall income.