John Laing Environmental Assets Group has lauded the diversification of its portfolio after solar acquisitions helped offset seasonal weather volatility, which impacted on generation.
The asset management fund has made a spate of solar purchases in the last few months which the company today said had helped it develop a “key strength” and “resilience” against both weather seasonality and unsettled wholesale electricity prices.
The company’s board also hinted at further acquisitions in the coming months, highlighting a “strong pipeline of environmental infrastructure opportunities available” in the market.
Released as part of the company’s half year results covering the six-month period ended 30 September, JLEN’s portfolio is now valued at £217.6 million, marking an increase of almost £20 million from 31 March 2015.
Richard Morse, chairman of JLEN, said: “The board is encouraged by the progress JLEN has continued to make during the first half of the year. The operational performance and underlying strength of our diversified portfolio, coupled with a strong pipeline of available opportunities, helped us to attract new investors to our oversubscribed equity fund raise. We were able to use the funds raised to pay down debt and maintain a healthy level of acquisitions.”
In its report, JLEN says the period under review was categorised by variable weather patterns in the UK, with wind projects experiencing good conditions over the 2014/15 winter, leading to generation in line with budget.
However, the summer months proved difficult for the company’s wind assets due to several low wind-speed months. The company said it was protected from this change by its solar assets, which were more productive. JLEN said this combination “provides a degree of protection against variability and seasonality in resource”.
Overall, the company performed in line with expectations – with the exception of wind – and made a profit of £6.2m before tax in the six month period. Despite failing to increase its net asset value (NAV) per ordinary share since March 31, JLEN was able to provide an inflation adjusted interim dividend of 3.027 pence per ordinary share to its shareholders, which is payable on 18 December 2015.
Over the 12 month period to 30 September 2015, JLEN shareholders have seen a share price total return of 8.6%, against an average of 4.5% for the market peer group.