NextEnergy Solar Fund Limited (NESF) (LSE) Interim Results & Interim Report

2025-12-03 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On December 3, 2025, NextEnergy Solar Fund Limited (NESF) announced its interim results for the period ending September 30, 2025. The report highlights significant financial metrics, including revenue, profit, earnings per share (EPS), dividends, year-over-year (YoY) changes, and future guidance.

For the half-year period, NESF reported a cash income of £48 million, representing a 6.67% increase from £45 million in the same period last year. The net asset value (NAV) per ordinary share decreased to 88.8p from 95.1p as of March 31, 2025, primarily due to reduced power price forecasts. The ordinary shareholders’ NAV stood at £510.9 million, down from £547.4 million, while the gross asset value also declined to £1,029 million from £1,061 million.

In terms of profitability, the company maintained a strong dividend policy, declaring total dividends of 4.21p per ordinary share, consistent with the previous year’s figure. The dividend cover for the period improved to 1.7x, compared to 1.5x in the same period last year. The board confirmed that the full-year dividend target for the year ending March 31, 2026, remains unchanged at 8.43p per ordinary share, with an expected dividend cover in the range of 1.1x to 1.3x post-debt amortization.

The financial debt gearing, excluding preference shares, increased to 29.4% from 28.1% as of March 31, 2025. Total gearing, including preference shares, rose to 49.2% from 47.3%. The weighted average cost of debt remained stable at 4.9%, and the weighted average cost of capital was also unchanged at 6.6%. The company reported a weighted average discount rate across its portfolio of 8.0%.

In terms of operational performance, NESF successfully generated 627 GWh of electricity during the period, an increase from 595 GWh in the prior year. The company’s total installed capacity rose slightly to 939 MW from 937 MW, and irradiation against budget was notably higher at +13.0%.

Looking ahead, the board has initiated a strategic options review aimed at addressing the current discount to NAV and maximizing shareholder value. The results of this review are expected to be announced in the new year. Additionally, NESF is in the process of implementing a Capital Recycling Programme, which has already resulted in the sale of three solar assets totaling approximately 145 MW, raising £72.5 million in capital.

The company remains committed to maintaining its strong operational and financial performance amidst challenging market conditions and is optimistic about future opportunities. The interim results presentation will be available via webcast for investors, further detailing the company’s strategy and outlook.

Original Announcement

Title: Interim Results & Interim Report
Date: 2025-12-03
Source: London Stock Exchange