Foresight Solar (LON: FSFL) provided a mixed update as a combination of tax adjustments and valuation pressures dragged net asset value lower despite a broadly resilient operational performance. NAV fell to £545.9mn, or 99.2p per share at year-end, down from 102.1p three months earlier, representing a marginal negative return over the quarter. The decline was driven primarily by the completion of a long-running UK tax review, which alone accounted for a material hit to valuation, compounding earlier adjustments made during the year.

Operationally, however, the portfolio showed greater stability. Electricity generation in the UK exceeded expectations and full-year dividend cover remained robust at around 1.3 times, supported by hedging strategies and inflation-linked revenues. The commissioning of battery storage assets and modest upgrades to production forecasts provided some offsetting gains, though these were insufficient to counterbalance fiscal headwinds. The update highlights a trust navigating external pressures — notably tax and regulatory factors — while maintaining underlying cashflow resilience, with management continuing to emphasise income delivery and selective portfolio optimisation.

Below is an interview with Foresight Solar Investment Managers Ross Driver & Tony Virno who provided an overview of the trust’s msot recent financial results