SDCL Energy Efficiency Income Trust PLC

Latest Results (09.03.2026):

SDCL Energy Efficiency Income Trust PLC — reporting for the financial year ended 31 March 2025 (FY2025 / quarter ended 31 March 2025) — delivered a broadly stable NAV (90.6p per share), a total NAV return of 7.1% for the year and a fully cash‑covered dividend (6.32p). The group generated strong project cash flows, invested c.£172m across the portfolio (including c.£93m supporting Onyx), maintained c.34% gearing and guided a target dividend of 6.36p for the year to March 2026.

NAV and total return

Opening NAV 90.5p → closing NAV 90.6p. Total NAV return for FY25 was 7.1%. Valuation movements contributed c.9.2p per share; FX and company expenses largely offset gains. Management highlights that NAV remained stable despite higher debt costs.

Dividends and cash cover

Dividend of 6.32p per share paid for the year and described as fully cash‑covered. Project‑level cash generation was c.£130m; net cash inflow to shareholders was ~£69.2m and dividends paid ~£68.4m, implying ~1.0x dividend cover (net of costs). FY26 dividend guidance: 6.36p.

Portfolio scale and operational performance

Described portfolio scale: c.£1.6bn current value proposition, diversified across c.45% countries (c.70% US exposure) with ~16 years weighted average contract life. Aggregated portfolio EBITDA reported in the range of mid‑to high‑£70m–£86m (varies by slide), with most assets performing in line with budgets (Oliva +2%, Driva +1%, Primary Energy 0%; Onyx -2%; RED‑Rochester -11% with recovery into 2025).

Investment activity and balance sheet

Investment cash deployed of c.£172m in the year (including ~£93m to support Onyx’s growth). Market capitalisation ~£97m. Reported group gearing around 34% of enterprise value; management describes this as within agreed limits and notes plans/ refinancings to optimise leverage. Post‑period, Onyx secured a new $260m senior secured facility to finance its pipeline.

Valuation assumptions and discount rates

Weighted average levered discount rate used in valuation increased slightly to 9.6% (from 9.4% in prior periods). The Investment Manager estimates an implied levered rate of return of ~11% if structural gearing is maintained at ~35% of NAV. The presentation notes marginal rises in risk‑free rates partially offset by lower asset‑specific premiums.

Market pricing and corporate actions

Share price was 49.90p at close on 18 June 2025, implying an approximate c.45% discount to NAV. The board highlighted continued dislocation in the UK distressed investment trust market, has agreed relatively low gearing limits and is reviewing strategic options, while operations and hedging have helped mitigate interest rate risk.