Foresight Environmental Infrastructure Limited (LON: FGEN) (Previously JLEN) is an environmental infrastructure investment fund which aims to provide shareholders with a sustainable dividend, paid quarterly, that increases progressively in line with inflation, and to preserve the capital value of its portfolio on a real basis over the long term through the reinvestment of cash flows not required for the payment of dividends.
FGEN’s investment policy is to invest in a diversified portfolio of environmental infrastructure projects that have the benefit of long‑term, predictable, wholly or partially inflation‑linked cash flows supported by long‑term contracts or stable regulatory frameworks.
The current Portfolio includes 42 onshore wind, PV solar, waste and wastewater processing plants, hydro and anaerobic digestion plants, low carbon transport, battery storage and controlled environment assets in the UK and mainland Europe. Wind, solar and hydro projects are supported by the UK’s commitment to support low‑carbon electricity targets and the waste and wastewater processing projects benefit from long‑term contracts backed by the UK government. The anaerobic digestion projects generate a valuable renewable biogas that earns UK government subsidy support.
The total capacity of the portfolio is 359.5MW
Ed Warner (NE Chairman)
Chairman HVPE, Blackrock Energy & Resources Income Trust & Grant Thornton. Ex Chair Standard Life Private Equity Trust, Panmure Gordon
Richard Ramsay (Snr Ind Director)
Considerable experience in energy sector and closed-end fund sectors. Current Chair of Seneca Global Income & Growth Trust plc.
Christopher Legge (Director)
Previously head of Audit and Accountancy at Ernst & Young.
Other Directors: Denise Mileham, Peter Neville, Stephanie Coxon, Nadia Sood
Foresight Environmental Infrastructure Limited (FGEN) has today released an update on its investment strategy, net asset value (NAV) performance for …
FGEN has increased its share buyback to a total maximum aggregate consideration of £30 million via a further £10m being …
FGEN has announced a strategic merger of its renewable biomethane (Bio-CNG) refuelling station investments with ReFuels N.V., a leading European …
FGEN, a leading listed investment company with a diversified portfolio of environmental infrastructure assets across the UK and mainland Europe, …
FGEN, a leading listed investment company with a diversified portfolio of environmental infrastructure assets across the UK and mainland Europe, …
FGEN, a leading listed investment company with a diversified portfolio of environmental infrastructure assets across the UK and mainland Europe, …
| Income Statement | 31 March 2024 £~000 | 31 March 2023 £~000 |
|---|---|---|
| Operating income | (3,827) | 108,445 |
| Operating expenses | (10,110) | (10,145) |
| Profit for the year | (13,937) | 98,300 |
| Basic and diluted EPS | (2.1) | 14.9 |
| Total Dividend/ share | 7.47p | 7.14p |
| FINANCIAL POSITION | 31 March 2024 £~000 | 31 March 2023 £~000 |
|---|---|---|
| Cash or cash equivalents | 271 | 143 |
| Total assets | 753,868 | 817,086 |
| (Total liabilities) | (2,654) | (2,518) |
| Net assets | 751,254 | 814,568 |
| Net assets per share | 113.6 | 123.1 |
QuotedData.com (Nov 2023): JLEN Environmental Assets – Backing the green hydrogen revolution
“JLEN Environmental Assets (JLEN) and the wider renewable energy sector have seen discounts to net asset value (NAV) widen to unprecedented levels as investor sentiment wavers in the face of higher interest rates. JLEN’s 20.2% discount to NAV is hard to fathom given the fundamental strength of its investment case and future growth opportunities….”
Investors Chronicle (Nov 2023): Why renewable investment trust doom and gloom is overdone
“The company benefits from being one of the more diversified in its sector – a recent breakdown noted 28 per cent of assets are invested in wind turbines, 25 per cent in waste/bioenergy, 19 per cent in anaerobic digestion plants, 15 per cent in solar and 13 per cent in low carbon transport, hydro-electric, battery storage and hydrogen. This diversification helps to reduce volatility.
Recent results suggest solid progress on most fronts. In line with the company’s progressive dividend policy, a target of 7.57p has been set for the year to 31 March 2024 – an increase of 6 per cent over the previous year. This represents a yield of 8.6 per cent at time of purchase. As the chairman pointed out in the last set of results, the predictability of these future flows is enhanced by the actions the manager has taken to fix contract prices while power prices were elevated. A near-historically wide discount of 27 per cent adds to the investment case.”
Investors Chronicle (November 2023)
“…I suggest sentiment is unduly bearish. For example, it is underestimating the extent to which many companies’ strong revenue correlation with inflation will temper concerns over time about higher discount rates impacting asset values. Already, the asset sales there have been have seen book values achieved – and more. Meanwhile, the inflation-assisted cash flow very much remains real – and sustainable. It is currently helping to fund investment, increased dividends (which are making for attractive yields) and the smattering of share buybacks.
And while governments may be tinkering somewhat with the pace of their climate change policies, the momentum behind the net-zero agenda cannot be halted. The evidence that we need to adopt more environmentally friendly policies is unquestionable, as previous columns have alluded to. There will be bumps in the road. Projects or policies will be abandoned or diluted. But this is a journey an increasingly large body of opinion recognises needs to be travelled – as is perhaps best illustrated by the Inflation Reduction Act in the US.
As for the investment trust cost disclosure issue, Baroness Sharon Bowles, Baroness Ros Altmann and myself are working together with others, both above and below the radar screen, to obtain a speedy and just outcome. It is accepted within the corridors of power, including by the chancellor and economic secretary, that the double counting of costs is hurting the industry, does not happen in other countries, and is hindering investment in sectors such as renewable energy and infrastructure.”
