SDCL Efficiency Income Trust (SEIT) H2 2024 earnings summary

Executive summary

• Portfolio enterprise value reached £1.5 billion, generating over £90 million in annual cash flow, with investments spanning 10 countries, mainly the US and Europe.

• Operational performance was solid, with EBITDA in line with budget and cash inflows fully covering dividends.

• £160 million invested during the year, primarily in organic growth, and £20 million in share buybacks at a discount to NAV.

• Active portfolio management included selective disposals, including the sale of UU Solar for £90 million post year-end, reducing short-term debt and supporting balance sheet strength.

• New forward dividend guidance for FY25 set at 6.32p per share, with a focus on liquidity and attracting new investment.

Financial highlights

• NAV per share at 31 March 2024 was £0.905 (90.5p), down from £1.015 (101.5p) the previous year, mainly due to a 90bps increase in discount rates.

• Cash from investments increased 9% year-over-year to £92.5 million, fully covering dividends.

• Loss after tax of £56.2 million, driven by £118 million unrealized valuation losses from discount rate changes.

• Aggregate dividends of 6.24p per share declared for FY24, with a new target of 6.32p for FY25.

• Ongoing charges ratio remained stable at 1.02%, with management fees reduced due to lower NAV.

Outlook and guidance

• FY25 organic investment pipeline of £75–125 million expected to meet return thresholds.

• Dividend guidance for FY25 set at 6.32p per share, with progressive growth targeted.

• Identified £145 million in potential NAV increases over the next two to five years through active asset management.

• Portfolio positioned for growth, with focus on liquidity, marketability, and attracting new investment, especially from US investors.