Greencoat UK Wind (LON:UKW)

Greencoat UK Wind (LON:UKW)


Share Price
141.76 p
Change
-0.238 (-0.17 %)
Market Cap
£2,150.43 m
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Greencoat UK Wind

Greencoat UK Wind invests in operating UK wind farms to provide shareholders with a sustainable and transparent income stream through an annual dividend on the issue price of 100p (6.94p for 2019). Given the nature of the Company's income streams, the board has increased and intends to continue to increase the dividend in line with retail price index (RPI) inflation. The Company also aims...

EPIC: UKW
Market: LSE:UKW
52-week High/Low: 143.60p / 122.80p
Sector: Cleantech and Renewable Energy
Market Cap: £2,150.43 m
Website: www.greencoat-ukwind.com
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Big Picture – A Deep Dive Examination of Greencoat UK Wind


Greencoat UK Wind Snapshot

Company Strategy

The Company's aim is to provide investors with a sustainable annual dividend per ordinary share (6.94p for 2019) that increases in line with RPI inflation while preserving the portfolio's capital value in the long term, on a real basis, through reinvestment of excess cashflow and the prudent use of portfolio leverage.

The revenue that operating wind farms receive in the UK is made up of a number of components, primarily from the sale of power produced and green benefits accredited. All are sold under long term agreements to utilities who are obliged by law to procure a certain percentage of power from green sources.

These revenue streams and the high EBITDA margin of unlevered operating assets provide the Company with a dividend cover, above the target annual dividend, that should be capable of withstanding significant downsides in wind volume and power price in any individual year.

Due to the direct RPI indexation of the UK Government's strong regulatory support mechanisms for renewable energy and the significant-influence of RPI in the growth of other cashflow components, the Company intends to continue to increase the dividend in line with RPI inflation.

The excess cashflow (dividend cover) will be reinvested in new UK operating wind farm assets.

The Company intends to target returns to investors equivalent to an IRR net of fees and expenses of 8% to 9%. The Company will also seek to enhance these returns through active management of the wind farms. The company also wants to maintain exposure to power prices in order to benefit from any higher than expected increases.

Click here to view portfolio.

Board

Tim Ingram

Tim is an experienced chairman and chief executive, with a long executive career in financial services and a non-executive portfolio spanning a variety of sectors including business management software and services, real estate, manufacturing, investment trusts and commercial and investment banking.

Tim's early executive career was in international banking with Grindlays Bank and ANZ Banking Group. He was an executive director of Abbey National plc (now part of Santander) from 1996 to 2002. After leaving Abbey National, he became Chief Executive of Caledonia Investments plc from 2002 until his retirement in July 2010.

He was chairman of Collins Stewart Hawkpoint plc from 2010 until it was acquired by Canaccord Financial Inc. in March 2012. He was chairman of the WMA (Wealth Management Association) from October 2012 to July 2017, and since April 2011 he has been chairman of the Fulham Palace Trust. He was chairman of RSM Tenon plc from May 2012 to August 2013. He was a non-executive director, and later Senior Independent Director, of Sage plc from 2002 to 2011; a non-executive director, and later Senior Independent Director, of Savills plc from 2002 to 2012; a non-executive director of Alliance Trust plc from 2010 to 2012; a non-executive director of Alok Industries Ltd, an Indian quoted company, from 2005 to 2015; and a non-executive director of Fastjet plc from September 2015 to March 2016. He has also been a non-executive director of the board of the European subsidiaries of QBE Insurance Group Ltd since March 2014 and is now its chairman. He is a member of the Takeover Panel.

 

Shonaid Jemmett-Page
Shonaid is an experienced non-executive director in the energy and financial sectors. She is currently a non-executive director of GKN plc where she serves as Chairman of the Audit Committee and  is a member of the Remuneration and Nominations Committees; non-executive director of Caledonia Investments plc and a member of the Governance, Nomination and Remuneration Committees; non-executive Chairman of MS Amlin plc and Chairman of the Remuneration and Nominations Committees and a member of the Risk and Solvency Committee; and non-executive Chairman of Origo Partners plc; Senior NED and Chairman of the Audit, Nomination and Remuneration Committees and member of the Risk committee at Clear.Bank Ltd. She is also the examiner of the UK branch of an Indian children's cancer charity.

Shonaid spent the first twenty years of her career at KPMG in London and Tokyo, rising to the position of Partner, Financial Services. In 2001, she moved to Unilever, where she was Senior Vice President, Finance and Information for Asia, based in Singapore, before returning to the UK as Finance Director for Unilever's global non-food business. In 2009, Shonaid joined CDC Group as Chief Operating Officer, a position she held until 2012.

 

William Rickett
William is a former Director General, Department of Energy & Climate Change within the UK Government (2006-2009) with considerable experience as a non-executive director of private sector companies. William is chairman of Cambridge Economic Policy Associates Ltd, an economic, financial and public policy consultancy with a strong energy practice and was chairman of the Governing Board of the International Energy Agency from 2007 to 2009. He is currently a non-executive director of Impax Environmental Markets plc, a listed investment trust specialising in the alternative energy, waste and water sectors and Smart DCC Ltd, the company procuring the shared infrastructure needed for the roll out of smart gas and electricity meters across the country.

William was previously a non-executive director of: Eggborough Power Ltd, an electricity generating company; Helius Energy plc, an AIM listed developer of new dedicated biomass power stations; and the National Renewable Energy Centre Limited, which helps to develop renewable energy technologies.

William's Whitehall career included fifteen years of board-level experience in five government departments focusing on energy and transport. In the late 1980s he led the privatisation of the electricity industry creating the first competitive electricity market in the world. Later as Director General of Energy he drove the transformation of UK energy policy to re-establish a nuclear power programme as well as developing strategies for the deployment of renewable energy.

 

Dan Badger
Dan has had a long career in the energy sector and has significant experience in wind farm transactions. He is currently a Partner at Hideal Partners, a renewables advisory firm, and was previously a member of the UK/European renewables M&A team at Babcock & Brown.

Dan worked for ten years at the US Department of Energy and the International Energy Agency in economic and policy development roles before moving onto project development within the gas-fired and then renewables sectors. Whilst at Babcock and Brown, Dan was involved with and led a number of significant renewables acquisitions across Europe of both development pipeline and operational capacity, a number of these through innovative framework agreements. Dan also led the 200MW development of the Robin Rigg offshore wind farm, in the Solway Firth, now owned by Eon.

 

Martin McAdam
Martin is an accomplished executive with significant experience in the energy and renewables sectors. He was formerly Chief Executive Officer of Aquamarine Power. Prior to that, Martin was President and Chief Executive Officer of the US subsidiary of Airtricity, a role in which he constructed over 400MW of wind farm capacity.

Martin spent his early career at ESB, the Irish utility, involved in a number of activities including power station construction and generation planning. After a number of years in information services, he returned to the power industry and joined Airtricity, a significant developer and constructor of wind farms throughout the UK and Ireland, managing construction of new wind farms. Martin's role expanded into operations and ultimately to take responsibility for the growing US business. He led the integration of the Airtricity Generation Business Unit into the SSE Renewables Division after sale.

Martin is a non-executive director of Aveillant Ltd, a three-dimensional holographic radar company. Martin is a Chartered Engineer and a Fellow of Engineers Ireland and a Fellow of the Royal Society for the Encouragement of Arts, Manufactures and Commerce.

 

Lucina Riches
Lucinda brings significant capital markets experience, having advised public companies on strategy, fundraising and investor relations for many years. She also brings extensive experience as a public company non-executive director across a variety of businesses, including two FTSE 100 companies.

Lucinda worked at UBS and its predecessor firms for 21 years until 2007 where she was a managing director, global head of Equity Capital Markets and a member of the board of the investment bank. She is Senior Independent Director of ICG Enterprise Trust plc and The British Standards Institution. She is a non-executive Director of Ashtead Group plc and CRH plc. Until July 2018 she was a non-executive Director of UK Financial Investments and until January 2019 she was a non-executive director of The Diverse Income Trust plc. She was awarded a CBE in 2017 for her services to financial services, British industry and to charity.

 

Greencoat UK Wind

Greencoat Capital - Investment Manager
Tel: +44 20 7832 9400

3rd Floor, Burdett House
15-16 Buckingham Street
London
WC2N 6DU

Registered Office of the Company
27-28 Eastcastle Street, london W1W 8DH

Administrator and Company Secretary
Tel: +44 2890 785 880
Email: [email protected]
27-28 Eastcastle Street, London W1W 8DH

Media Contact

Tom Rayner
+44 20 7832 9400
+44 7908 001 338
[email protected]

Headland
+44 20 3805 4822
[email protected]

Investment Manager

Greencoat Capital LLP
3rd Floor, Burdett House
15-16 Buckingham Street
London WC2N 6DU


Administrator and Company Secretary

Heritage Administration Services Limited
The Innovation Centre
Northern Ireland Science Park
Queen’s Road
Belfast BT3 9DT


Depositary

Heritage Depositary Company (UK) Limited
The Innovation Centre
Northern Ireland Science Park
Queen’s Road
Belfast BT3 9DT


Registrar

Capita Registrars Limited
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TF

 

Registered Office

27-28 Eastcastle Street
London W1W 8DH


Registered Auditor

BDO LLP
55 Baker Street
London W1U 7EU


Legal Adviser

Norton Rose Fulbright LLP
3 More London Riverside
London SE1 2AQ


Broker

RBC Capital Markets
Riverbank House
2 Swan Lane
London EC4R 3BF


Account Bank

The Royal Bank of Scotland PLC
280 Bishopsgate
London EC2M 4RB

 

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