SDCL Energy Efficiency Income Trust PLC

Latest Results (21.04.2026):

SDCL Energy Efficiency Income Trust PLC — annual results for the financial year ended 31 March 2025: the company reported a broadly stable NAV (90.6p at 31 March 2025 vs 90.5p at 31 March 2024) and delivered a total NAV return of 7.1% for the year, while meeting its dividend guidance for FY25 and maintaining full cash cover for distributions.

NAV and total return

NAV per share was 90.6p at 31 March 2025 (90.5p at 31 March 2024). The reported total NAV return for the year was 7.1%, with portfolio valuation movements and hedging activity offsetting higher interest costs.

Dividend and cash cover

The company paid 6.32p per share in respect of FY25 (meeting its FY25 target) and reports dividends remain fully cash covered; project-level cash generation was c.£130m and dividend cash cover for the year was ~1.0x. Management is targeting a 6.36p dividend for YE March 2026.

Portfolio size and diversification

The portfolio is large and diversified (presented as c.£1.6bn of assets) with c.70% exposure to the US, ~19% Europe and ~8% UK, long weighted average contract life (c.16 years), and a broad set of customers and technologies across buildings, industry and transport.

Operational performance

Operational delivery remained broadly in line with expectations: five key portfolio companies produced combined EBITDA of c.£70m (vs like‑for‑like budgets of £71m). Notable items: Onyx improved delivery and post-period secured a $260m senior credit facility; Primary Energy refinanced with a 5‑year facility to 2029; Oliva and Driva performed to budget while RED‑Rochester recovered in H2 and brought a new cogeneration plant into commercial operation.

Investment activity and cash deployment

The group continued deployment and growth activity (slides cite c.£172m invested in the year, including support for Onyx). Investment cash inflows continue to be generated by the portfolio and excess distributable cash is shown as available for reinvestment under the company’s illustrative cash flow assumptions.

Gearing, rates and valuation assumptions

Aggregate gearing is reported at c.34% of enterprise value. The weighted average levered discount rate used in valuations rose modestly to 9.6% (from 9.4% in March and September 2024); management note an implied levered return of c.11% if structural gearing is maintained near 35% of NAV.

Market price, balance sheet and risks

Market capitalisation was reported at c.£97m and the company highlighted continued dislocation in the UK investment trust market, resulting in a notable share price discount to NAV. The board and manager are reviewing strategic options and financing structures to align shareholder interests and to manage interest rate/RCF exposure.