FGEN delivers 10th year of record cash distributions and outlines evolved strategy amid macroeconomic shifts.

Foresight Group Environmental Infrastructure (FGEN), has released its Annual Report and Accounts for the year ending 31 March 2025, underscoring another year of resilient income performance, strategic reorientation, and continued support for the energy transition. FGEN reported record cash distributions from its portfolio for the tenth consecutive year, supporting a 2.1% increase in the dividend target to 7.96 pence per share.

Below is a video with FGENs management discussing today’s results.

 

Refined Strategy Following Shareholder Review

FGEN  announced the conclusion of a strategic review undertaken in consultation with external advisors and shareholders, aimed at ensuring long-term value creation. The outcome reaffirms FGEN’s commitment to its core investment themes—renewable energy, energy infrastructure, and sustainable resource management—while shifting focus more selectively toward stable, long-term cash-generating assets.

The new approach reflects structural changes in the macroeconomic environment, particularly around inflation and interest rates, which have affected valuations across the infrastructure sector.

“Looking ahead,” Warner added, “the Company will prioritise stable, long-term cash flows from core environmental infrastructure assets… Environmental infrastructure continues to be one of the most significant investment opportunities of this generation.”

Financial and Operational Highlights

• NAV per share stood at 106.5 pence after dividend payments

• Total NAV return was flat at 0.6%, reflecting broader market conditions

• £88.6 million raised from asset sales, representing 10% of the portfolio

• Gearing remains conservative at 28.7%, among the lowest in the peer group

• £30 million share buyback programme underway, with £24.3 million returned to date

• 61% of revenues benefit from contractual inflation linkage

FGEN’s FY26 dividend target of 7.96 pence now implies a 10.0% yield on the closing share price as of 23 June 2025.

Adjusted Fee Structure Proposed

In response to market feedback and structural NAV discounts observed across the sector, the Board has proposed an adjusted fee model where existing tiers would apply to a blend of NAV and market capitalisation. This hybrid approach aims to better align manager incentives with shareholder returns.

Outlook

With macro conditions stabilising and the UK infrastructure sector attracting renewed investor interest, FGEN’s strategy of disciplined capital allocation and income focus positions it well to deliver predictable returns in a volatile world.