Foresight Environmental Infrastructure Limited (LON:FGEN), a leading investor in private environmental infrastructure assets driving stable returns, decarbonisation and sustainable resource management, has announced its Annual Report and Accounts for the financial year ended 31 March 2025.
Ed Warner, Chair of FGEN, said:
“Despite a challenging geopolitical and macroeconomic backdrop, FGEN has demonstrated resilience over the period, with strong distributions from the portfolio which have provided a firm foundation to the 2.1% uplift in the dividend target from 7.80 pence to 7.96 pence.
“Our performance continues to be centred on disciplined capital allocation, robust income growth, and value accretive asset management. Our tenth consecutive year of record cash distribution, underpinning sustainable dividend coverage, reflects the strength and resilience of our portfolio.
“As announced earlier this month, the Board has conducted a rigorous review of the Company’s future strategy following consultation with independent external advisors and shareholders to deliver the best possible value in the long term. The Board concluded that shareholders are best served by the proactive management of the existing portfolio with a refocused investment strategy that reflects the structural changes in macroeconomic conditions in recent years. Looking ahead, the Company will prioritise stable, long-term cash flows from core environmental infrastructure assets to deliver predictable income to our shareholders, alongside fresh opportunities for growth.
“We continue to believe that our investment strategy – investing across renewable energy generation, other energy infrastructure and sustainable resource management – offers the best opportunities for investors while contributing significantly to the energy transition in our priority markets. Environmental infrastructure continues to be one of the most significant investment opportunities of this generation and FGEN’s strategic mandate ensures it is uniquely placed to capitalise on this.”
Highlights
Record cash generation from underlying assets:
· Tenth consecutive year of record cash receipts from investments
· 1.32x dividend cover – FGEN’s second highest since IPO
· Dividend cover forecast to remain at comfortable levels
· 61% of revenues benefiting from contractual inflation linkage
Clear and effective capital allocation strategy:
· £88.6m raised from sale of 10% of the portfolio¹
· 28.7% gearing, one of the lowest across the peer group
· £30m share buyback programme underway (extended by £10m in March 2025 from £20m); of which £24.3 million returned to shareholders to date²
Strategic review:
· Selective approach to new investment, prioritising core environmental infrastructure
· Targeting investments offering long term stable cash flows, secured revenues and inflation linkage, and an attractive balance between income and growth
· Growth assets expected to be divested in the medium-term to maximise shareholder value
Earnings and Net Asset Value (“NAV”):
· NAV per share of 106.5 pence following payment of dividends to shareholders in line with targets
· Flat NAV Total Return of 0.6% in the period
· Annualised NAV total return of 7.3% since IPO
· FY26 dividend target increased to 7.96 pence
· Dividend target represents yield of 10.0% on the closing share price at 23 June 2025³
Proposed new adjusted fee structure:
· Proposal for existing tiers to be applied to an equal blend of NAV and market capitalisation
1. Based on an opening portfolio valuation of £891.9 million.
2. Buybacks completed at the time of publication, 23 June 2025.
3. Based on closing share price at the time of publication, 23 June 2025.
Summary of changes in NAV
| NAV per share | |
| NAV at 31 March 2024 | 113.6p |
| Dividends paid in the year | -7.7p |
| Power price forecasts | +1.3p |
| Portfolio performance | -2.2p |
| Profit from asset sales | +1.3p |
| Uplift from share buyback programme | +1.1p |
| Other movements | -0.9p |
| NAV at 31 March 2025 | 106.5p |
Key investment metrics
| All amounts presented in £million (except as noted) | Year ended31 March 2025 | Year ended31 March 2024 |
| Net assets¹ | 678.7 | 751.2 |
| Portfolio value² | 765.7 | 891.9 |
| Operating income and gains on fair value of investments | 6.0 | (3.8) |
| Net Asset Value per share³ | 106.5p | 113.6p |
| Distributions, repayments and fees from portfolio | 90.4 | 87.0 |
| Loss before tax | (2.8) | (13.9) |
| Gross asset value³ | 951.3 | 1,091.8 |
| Market capitalisation | 457.0 | 619.9 |
| Share price³ | 71.7p | 93.7p |
| Annualised NAV total return | 0.6% | (1.6)% |
| NAV total return since inception³ | 7.3% | 8.0% |
| Total Shareholder Return since inception³ | 41.0% | 68.4% |
| Annualised total shareholder return ³ | 3.2% | 5.4% |
1. Also referred to as “NAV”.
2. Classified as investments at fair value through profit or loss in the statement of financial position.
3. Net Asset Value per share, share price, market capitalization, gross asset value, total shareholder return and annualized shareholder return are alternative performance measures (“APMs”). The APMs withing the accounts are defined on pages 182 and 183 in the 2025 Annual Report.
Annual report
The Annual Report is available on the Company’s website at: https://www.fgen.com/investors/reports-and-publications
A copy of the annual report has been submitted to the National Storage Mechanism and will shortly be available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Annual results presentation to equity analysts
A webinar and in-person event for the annual results will be held at 10:00 am (UK time) today, 24 June 2025, hosted by Chris Tanner, Edward Mountney and Charlie Wright, Investment Managers to FGEN. To register for the webinar, please contact SEC Newgate by email at [email protected].
