NextEnergy Solar Fund - Fund Secures CfD Wins

NESF has boosted its effective electricity price hedging with the winning of 86W under the UK’s CfD renewable support scheme. This provides an index-linked 15-year income stream providing a strong underpinning to the fund’s earnings.

Review of Electricity Market Arrangements - REMA Could Bring Benefits

Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy

Next Energy Solar Fund - Article 9 Status Confirmed

NESF has confirmed that it is classified as an Article 9 Fund. We see this as helping to emphasise the fund’s contribution to enabling a net zero world and its suitability for investors seeking sustainable outcomes.

NextEnergy Solar Fund - Facility Extension Delivers Firepower

NESF has extended one of its revolving credit facilities giving it £48m of additional lending. The fund has created several new areas for potential asset growth including co-investment alongside NPIII in international projects, stand alone battery projects with Eelpower and co-located battery projects at its existing solar sites. The new facility gives the fund the firepower to capture these opportunities.

NextEnergy Solar Fund - NPIII Now Has Over 1GW of Assets

Continued expansion at NPIII provides NESF with further geographical diversification as the private fund reaches more than 1GW of international PV assets. This adds to NESF’s moves in battery storage to build a more diversified portfolio, minimising exposure to any single asset type.

NextEnergy Solar Fund - NAV Grows 15% in FY 22

NextEnergy Solar Fund’s (NESF) full-year results show a 15% growth in NAV resulting from better pricing and new asset growth. The fund has been working hard to diversify its asset growth opportunity with battery storage in the UK and more international exposure through its commitment and co-investment opportunity with the NPIII private fund. From a strong start the fund is showing continued progress into the current year.

NextEnergy Solar Fund - 100th Operating Project Reached

NESF’s 100th operating project is a rooftop subsidy free scheme which demonstrates the increasing diversity of project types across the portfolio. It builds on recent announcements including a 6MW, 12MWh co-located battery in Norfolk, a 250MW standalone battery joint venture with Eelpower and a second international co-investment in Portugal with NPIII.

NextEnergy Solar Fund - NAV Grows by 8.7%

NESF’s 8.7% increase in NAV reflects a stronger pricing outlook. We think this outlook is sustainable and highlights the fund’s strength in a wider market environment characterised by energy-driven inflation. With recent strong progress on diversified asset opportunities in storage and abroad, we think the fund is well placed.

NextEnergy Solar Fund - Co-Investment in Portugal

NESF’s second co-investment with NPIII builds on a strong trend of asset diversification, adding exposure to Portugal. This complements the earlier co-investment in Spain and the recently announced co-located storage project in Norfolk. The fund has found multiple routes to continued asset growth building on its base in UK solar.

Active Net Zero Clean Energy Index - Recent Performance

In this note, we review the recent performance of the Active Net Zero Clean Energy Index. We also take a deeper dive into the composition of the Index in terms of market cap, constituent end market / business model and, finally, geographic exposure.

NextEnergy Solar Fund - Co-located Battery Site Announced

NESF’s first co-located storage project will be a 12MWh battery at an existing solar farm in Norfolk. Alongside its standalone battery joint venture, the ability to co-locate batteries gives NESF an major asset diversification opportunity in the GB power market. We expect more sites to be announced, building on asset growth opportunities in the UK and abroad.

NextEnergy Solar Fund - 5% Dividend Growth in FY 23

NESF has set a 5% target dividend for FY 23 which we see as well supported by the underlying business. This is one of the highest target growths among the renewable yieldcos and puts NESF on a sector topping prospective yield of 7.2%.

IPCC/WG3 - IPCC Report is a Major Warning

The IPCC Working Group III (WG3) report is a major summary of how society can limit climate change by delivering a net zero emission outcome. It also represents a major warning that we are running out of time to limit global warming to 1.5oC. Coupled with growing energy security concerns we are already seeing some signs of policy moving to improve action such as the recently announced UK government’s Energy Security Strategy. And the relative inflation of fossil fuels (fossilflation) against cle

So far so good

The group posted a strong set of results showing faster and stronger-than-expected net interest margin expansion and no signs of a deterioration and above all anxiety on the asset quality front. It remains to be seen if the UK government will allow banks to hold on to the benefit of interest rate increases and if the UK economy proves as resilient as expected.

Sustainably robust results which we expect to trigger distributions

Legal & General disclosed strong HY 22 results, albeit in line with the consensus’ expectations. With most of the metrics improving on a yoy and sequential basis, we believe that the strong solvency position, in an environment with (sustainable?) higher yields, should trigger capital distributions to shareholders at the year-end.

And another layer of distributions

Aviva unveiled a fair operating result. While, in line with the insurance industry, Aviva saw a strongly negative impact from financial assets revaluation, the solvency position improved materially, yielding additional capital distributions. Once distributions cease, we believe that Aviva could be a takeover target.

SHORE CAPITAL - H&T Group (HAT) - House stock at 411p

Cenkos:Duke Royalty Ltd -Record revenues keep on rolling

Cenkos:Duke Royalty Ltd -Record revenues keep on rolling

Hybridan Small Cap Feast 09/08/22

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports

LIBERUM: Plus500* - Increased share buyback momentum

H&T Group (HAT) - House Stock, 411p - Golden oldy … celebrating 125 years

LIBERUM: Alternatives Daily: CSH | RECI

Hybridan Small Cap Feast 21-07-2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export

Robust AUMs in a challenging environment

Great results posted by M&G, which recorded very resilient AUMs. The firm managed to outperform the consensus despite the tough environment. While the management avoided any capital plans comments, the resilient solvency position leaves great prospects while the current share buyback is still far from being completed.

Hybridan Small Cap Feast 16/08/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports to over 40 count

8AM Acquisition Completed – 2-4% EBITDA Upgrades

Tatton Asset Management has announced the completion of a 50% stake in 8AM, following regulatory approval. We update our model on the back of this, reflecting the positive financial impact of the investment. We see 2-4% EBITDA upgrades over the forecast period and 1-3% EPS upgrades, as the operating profit contribution more than offsets the higher sharecount as part of the share consideration. 8AM will provide TAM’s clients with access to an extended range of risk profiled investments, underpinn

Morning Note – 1 August 2022

LIBERUM: Real Estate Investors* - Further profitable sales set to drive capital return strategy