SDCL Energy Efficiency Income Trust PLC

Latest Results (11.07.2026):

SDCL Energy Efficiency Income Trust PLC — results for the year ended 31 March 2025 (Q4 FY2025). The company reports a stable NAV (90.6p at 31 March 2025 vs 90.5p at 31 March 2024), a total NAV return of 7.1% for the year, and continued cash generation supporting a fully covered dividend. Portfolio scale, operational delivery and targeted financing actions (including a post-period facility for Onyx) underpin management’s outlook and a FY2026 dividend target of 6.36p per share.

NAV and total return

Closing NAV per share was 90.6p as at 31 March 2025 (opening 90.5p). The company reports a total NAV return of 7.1% for the year to 31 March 2025. Portfolio valuation movements, hedging gains and macro impacts largely offset higher debt costs, leaving NAV effectively stable year-on-year.

Dividend and cash cover

Aggregate dividends of 6.32p per share were paid in the year and are reported as fully cash covered. Project-level cash generation was c.£130.2m; the reported dividend cash cover APM for the twelve months to March 2025 was 1.0x. Management targets a dividend of 6.36p for the year to March 2026.

Portfolio scale, composition and contracts

The group highlights a diversified portfolio with a stated current portfolio value around c.£1.6bn and long-duration contracted cash flows (weighted average contract life c.16 years). Geographic exposure is skewed to the US (c.70% by GAV), with Europe and the UK representing the balance.

Operational performance and EBITDA

Operational performance is described as broadly in line with expectations. Management cites aggregated portfolio EBITDA (above mid‑teens hurdles) and references specific asset-level results: combined EBITDA from five named portfolio companies around budget (examples include Oliva, Driva, Onyx, Primary Energy and RED‑Rochester). Some assets showed recovery or value uplift during the year; one (RED‑Rochester) remained below budget but with a strong start to 2025.

Investment activity, balance sheet and gearing

c.£172m was invested in the year (supporting Onyx growth among other activity). Reported total gearing is c.34% of enterprise value. Market capitalisation was reported at c.£97m (share price 49.90p at close 18 June 2025). Management notes current leverage is within distressed‑market limits with a plan to reduce gearing via new Onyx financing and other measures.

Valuation discount rates and outlook

The weighted average levered discount rate used in valuations increased slightly to 9.6% (from 9.4% in Mar/Sep 2024). Management states an implied levered rate of return of c.11% if structural gearing is maintained at c.35% of NAV. The company also highlights a significant share price discount to NAV (c.45%).

Post‑period financing and strategic updates

Post period, Onyx secured a new US$260m senior secured credit facility to self‑fund pipeline growth and support portfolio expansion. The manager is reviewing strategic options, and the Board highlights continued focus on interest‑rate risk mitigation and aligning fees/structures with shareholder interests.