Infrastructure fund Greencoat UK Wind says it is actively pursuing new windfarm investment opportunities as prospects for the sector remain “very encouraging”.
The firm, which made its £260 million debut on the FTSE All-Share Index almost exactly a year ago, has grown its investment portfolio significantly in recent months and now has 184MW of generation capacity across nine onshore windfarms and a single offshore array at Rhyl Flats.
Greencoat assets include the Tappaghan and Bin Mountain farms in Northern Ireland and Carcant and Braes of Doune sites in Scotland, which were purchased from SSE in a £140m deal last year.
The Perth-based utility and the UK department for business, innovation and skills were cornerstone investors as Greencoat floated.
Chairman Tim Ingram told investors on Monday that the fund had delivered strong portfolio performance in its first year in operation and was continuing with its search for new investment opportunities.
“Since listing, the group has used acquisition debt to make further investments,” Mr Ingram said as the company published its results for the year to December 31.
“This has enhanced the group’s attractiveness to sellers since execution risk is greatly diminished, with the group effectively being a cash buyer.
“Execution risk is also significantly lower relative to project financed acquisitions. Consequently, the group has seen an increase in the returns it has been able to achieve from further investments.
“The group will continue to use acquisition debt facilities to make further investments.
“The group will look to refresh such debt facilities by refinancing them in the equity markets at an appropriate time.”
The firm raised total equity of £343m in 2013, and its asset portfolio produced 291.5GWh of electricity during the year, 7.6% above budget.
Net asset value (NAV) at the year end was £351.1m, giving a total return of 6.5%.
The firm made a maiden dividend last year and has since paid a further interim dividend of 3p per share for the half year to December 31.
It is targeting a 6.16p payout for 2014.
Mr Ingram said the firm was looking forward with confidence after a strong first full year in operation.
“We came to the market a year ago with a clear, independent and high quality propositions, and since listing we have delivered what was said ‘on the tin’.”