SDCL Efficiency Income Trust (SEIT) H1 2026 earnings summary

Executive summary

• Focused on disciplined disposals and strategic change to reduce debt, address persistent NAV discount, and deliver portfolio stability and value amid market and policy uncertainty.

• Net asset value (NAV) per share declined to 87.6p as of 30 September 2025, down from 90.6p at 31 March 2025, reflecting adverse market conditions and portfolio valuation adjustments.

• Portfolio generated EBITDA of approximately £44m for the six months, with investment cash inflow of £58m, supporting dividend payments and future growth opportunities.

• Aggregate interim dividends of 3.18p–3.2p per share were declared, in line with guidance, with 1.2x dividend cash cover.

• Strategic actions include the sale of ON Energy at an 18.75% premium to NAV and further major disposals in exclusivity, with active board engagement.

Financial highlights

• Portfolio EBITDA and investment cash flow increased year-over-year; portfolio valuation rose to £1,172m, with NAV per share at 87.6p.

• Dividend declared at 3.18p–3.2p for the six months, with a full-year target of 6.36p; dividend cover at 1.2x.

• Profit before tax for the six months was £2m, significantly lower than £35m in the prior year, mainly due to downward portfolio revaluations.

• Ongoing charges ratio was 1.07%; cash at period end was £5.8m, with £232.8m in debt.

• Share price discount to NAV at approximately 24.6%; current dividend yield at 10.1%, fully cash covered.

Outlook and guidance

• Substantial growth opportunities identified in decentralized energy and U.S. investments, with strategic focus on scalable solutions for high-demand users.

• Disposals are expected to reduce gearing and support future growth; a major disposal is in exclusivity and further options are under review.

• Dividend policy maintained for the current year, with ongoing review in light of capital constraints and deleveraging priorities.

• Board and management are actively considering restructuring and alternative solutions to the status quo.

• The board is unlikely to recommend continuation in current form at the 2026 AGM without material progress on disposals and capital returns.