Greencoat UK Wind reports strong cash generation and 1.4x dividend cover

Greencoat UK Wind Plc (LON:UKW) has announced the half year results for the period to 30 June 2025.

Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in UK wind farms. The Company’s aim is to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow.

The Company provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.

Performance

·    The Group’s investments generated 2,581GWh of renewable electricity.

·    Net cash generation (Group and wind farm SPVs) was £163.3 million and dividend cover was 1.4x.

Net Asset Value

·   The Company announces that its unaudited Net Asset Value as at 30 June 2025 is £3,182.7 million (143.4 pence per share). The Company’s June 2025 Factsheet is available on the Company’s website, www.greencoat-ukwind.com.

Capital Allocation

·    The Company declared total dividends of 5.18 pence per share with respect to the period and paid a dividend of 2.50 pence per share with respect to Q4 2024 in the period.

·    During the period the Company has bought back 35 million of its own shares at an average cost of 115 pence per share.

·    Post period end, the Company announced part disposals of three wind farms for £181 million which will bring total divestments in the past year to £222 million.

·    Aggregate Group Debt was £2,254 million as at 30 June 2025, equivalent to 41.5 per cent of GAV. Were the proceeds of the disposals announced today applied to debt repayment, pro forma gearing would stand at 39.5 per cent.

Commenting on today’s results, Lucinda Riches, Chairman of Greencoat UK Wind, said:

““The Board and the Investment Manager remain fully aligned with investors and continue to focus on driving long-term shareholder value through proactive capital allocation and active asset management. We are pleased to have announced further disposals, delivered at NAV, which will bring total divestment proceeds to £215 million.

Despite lower portfolio generation due to low wind, the Group delivered robust cash generation of £163 million to achieve dividend cover of 1.4x. The team continues to progress a number of key initiatives aimed at optimising asset performance and enhancing long-term value.

We are an established leader in the sector, with a simple, low risk and proven model, a substantial portfolio of high-quality assets, and an attractive net return for investors. We remain confident in our ability to deliver on our objectives of growing the dividend in line with RPI and capital preservation over the long term and extend our track record of outperforming our peers.”

Dividend Announcement

The Company also announces a quarterly dividend of 2.59 pence per share in respect of the period from 1 April 2025 to 30 June 2025.

Dividend Timetable

Ex-dividend date:        14 August 2025

Record date:               15 August 2025

Payment date:             29 August 2025

Key Metrics

As at 30 June 2025:

Details of the webcast for analysts and investors:

There will be a virtual presentation at 9.00am today for analysts and investors. Register and watch the event at: https://stream.brrmedia.co.uk/broadcast/686539e0c585410013194140 

If dialling-in via phone, the following details can be used:

UK-Wide: +44 (0) 33 0551 0200

UK Toll Free: 0808 109 0700

Password: Quote ‘Greencoat UK Wind’ when prompted by the operator

Presentation materials will be posted on the Company’s website, www.greencoat-ukwind.com, from 9.00am.