SDCL Efficiency Income Trust (SEIT) H2 2025 earnings summary

Executive summary

• NAV per share at March 2025 was GBP 0.906 (90.6p), marginally up from GBP 0.905, with a stable, diversified portfolio across 10 countries and strong operational performance despite macroeconomic pressures.

• Cash inflows for the year reached GBP 97 million, up 4% year-over-year, fully covering dividends and supporting a progressive dividend policy.

• Portfolio is highly diversified, with about 50 projects, a weighted average contract life of 16 years, and serves approximately 50,000 customers.

• Active management and strategic initiatives are underway to address the significant share price discount to NAV and enhance total return growth.

• Dividends are fully covered by cash generation, with new guidance of 6.36p per share for FY2026, representing a c.1% increase.

Financial highlights

• Aggregate EBITDA for 2024 was GBP 86 million, with profit after tax at GBP 70 million.

• NAV per share increased marginally from 90.5p to 90.6p; total NAV return for the year was 7.1%.

• Portfolio generated £97m investment cash inflows, up 4% year-over-year; aggregate dividends of 6.32p per share paid, fully covered by cash flows.

• Investments at fair value stood at around GBP 1.2 billion, with net assets of approximately GBP 980 million.

• Ongoing charges ratio rose to 1.16% from 1.02% year-over-year.

Outlook and guidance

• Dividend guidance for FY2026 set at 6.36p per share, with average cash cover for dividends projected to remain above 1.1x.

• Dividend cover is expected to expand to 1.1–1.2 times in future periods, driven by investments transitioning from construction to operation and ongoing debt amortization.

• Focus remains on reducing leverage, releasing liquidity, and supporting shareholder value through disposals, refinancing, and potential buybacks.

• Active pursuit of capital recycling, including disposals and strategic partnerships, to support liquidity and substantiate valuations.

• Management is actively considering all strategic options, including asset disposals, equity partnerships, and buybacks.