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Greencoat UK Wind delivers strong return buoyed by acquisitions

Cash generation was on target at £117.3mln, allowing the company to pay a 6.76p a share dividend

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Acquisitions added a further three wind farms to the portfolio in the year just gone, taking it to 32 separate investments generating 2,003GWh of electricity

Renewables group Greencoat UK Wind PLC (LON:UKW) delivered a strong financial performance and a chunky dividend despite electricity generation being slightly below budget.

Acquisitions added a further three wind farms to the portfolio in the year just gone, taking it to 32 separate investments generating 2,003GWh of electricity (6% down on expectations).

WATCH: Greencoat UK Wind delivers strong return buoyed by acquisitions

Chairman Tim Ingram said: "Our pipeline of acquisition opportunities remains very healthy and we continue to expect the majority of future investments to be made from the £50bn pool of UK Wind farms accredited under the ROC regime."

READ: What exactly are ROCs?

Cash generation was on target at £117.3mln, allowing the company to pay a 6.76p a share dividend (representing a yield of just under 5%). The pay-out was 1.6-times covered by net profits and the plan is to declare a 6.94p divi for 2019.

The company aims to match increases in the dividend to retail price inflation. Greencoat’s target return to investors is an IRR net of fees and expenses of 8-9%.

The net asset value as at December 31 was 123.1p, up 11.8p from the same time last year.

"Today's results represent another year of consistent delivery with performance in line with expectations, achieving strong NAV growth of 11.8p,” said chairman Ingram.

“With our continuing strong cash flow and robust dividend cover, we confidently target a dividend of 6.94 pence per share with respect to 2019, again increased in line with RPI.”

Quick facts: Greencoat UK Wind PLC

Price: 149.4 GBX

LSE:UKW
Market: LSE
Market Cap: £2.27 billion
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Watch

Greencoat UK Wind close to powering 1 mln UK homes as size of portfolio surges

Greencoat UK Wind’s (LON:UKW) manager Stephen Lilley was happy with the first half performance even though wind speeds were slightly lower than expected. The group bought four assets over the first half of the year worth £611mln, including its first deal for an asset without a ROC...

on 29/7/19

2 min read