Foresight Environmental Infrastructure
Net Asset Value and Dividend Announcement
25/02/2026 7:00am
RNS Regulatory News
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED
(“FGEN” or the “Company”)
Net Asset Value and Dividend Announcement
The Board of FGEN, a leading investor in private environmental infrastructure assets across the UK and mainland Europe, announces that its unaudited Net Asset Value (“NAV”) at 31 December 2025 was £651.7 million (104.6 pence per share). After paying the quarterly dividend of 1.99 pence per share, the Company delivered a positive NAV Total Return of 1.8% for the quarter.
Highlights in the period
· NAV of £651.7 million as at 31 December 2025 (£652.7 million as at 30 September 2025). NAV per share of 104.6 pence, broadly in-line with the end of the prior quarter (104.7 pence as at 30 September 2025).
· Delivering on dividend commitment: Quarterly dividend declared of 1.99 pence in line with the Company’s target of 7.96 pence per share for the year to 31 March 2026, a 2.1% uplift on the previous financial year.
· Cash generation remains robust, underpinned by the resilience of the Company’s diversification strategy, FGEN remains on track to deliver a dividend cover of 1.20x-1.30x for the year after amortising project debt facilities.
· Maintaining a conservative balance sheet remains a key priority. Gearing of 30.9% at 31 December 2025 (30.6% at 30 September 2025).
· Income and growth potential with Rjukan, the Glasshouse and CNG Fuels continuing to progress through their ramp-up phases.
Ed Warner, Chair of FGEN said:
“FGEN has delivered another quarter of stable performance, with NAV broadly unchanged and cash generation remaining robust. Our diversified portfolio continues to demonstrate its resilience, supporting our confidence in meeting the dividend target for the year while maintaining strong dividend cover.
“We remain firmly committed to a disciplined approach to gearing and balance sheet management, ensuring the Company is well positioned for long‑term sustainable growth.
“Our growth assets – including Rjukan, the Glasshouse and CNG Fuels – are progressing through their ramp‑up phases and we see some encouraging signs that support the growth and value-creation potential of the portfolio.”
Summary of changes in NAV:
| NAV per share | |
| NAV at 30 September 2025 | 104.7p |
| Dividends paid in the period | -2.0p |
| Power price forecasts | -0.9p |
| RO/FIT consultation outcome | -0.5p |
| Battery energy storage forecasts | +0.4p |
| Inflation | +0.1p |
| Portfolio performance | -0.1p |
| Other movements (including discount rate unwind less fund overheads) | +2.9p |
| NAV at 31 December 2025 | 104.6p |
Valuation factors
Power price forecasts
Short-term power price forecasts provided by independent third-party consultants have softened since the prior valuation date. While this has reduced forward merchant pricing assumptions across the portfolio, the impact has been partially offset by the Company’s existing power price fixes and contracted revenues across a diversified pool of underlying sectors. Overall, the net effect of updated power price forecasts was a reduction in NAV per share of 0.9 pence.
RO/FIT consultation outcome
In line with the Company’s announcement on 14 November 2025, updated assumptions reflecting the outcome of the UK Government’s Renewable Obligation and Feed-in Tariffs consultation have been incorporated into the valuation. From 1 April 2026, both schemes will be indexed at the Consumer Price Index (“CPI”). The impact of these changes reduced NAV per share by 0.5 pence in the period.
Battery energy storage forecasts
Updated third-party revenue forecasts for FGEN’s 100MW operational battery energy storage assets reflect a recovery in market conditions across South England and Scotland. The revised assumptions resulted in an increase in NAV per share of 0.4 pence.
Inflation
Inflation inputs have been updated to reflect the December-to-December actuals for 2025, with RPI and CPI set at 4.18% and 3.32% respectively.
The CPI forecast has been revised to 2.5% from 2026 to 2030, based on third-party forecasts, with longer-term assumptions unchanged. The net impact of updated inflation assumptions increased NAV per share by 0.1 pence.
Portfolio performance
Overall, the portfolio performed broadly in line with expectations, with energy generation being 1.6% under budget before any potential recoveries are considered through either the contractual security in place with external operators or through insurance means.
Within that, national wind speeds and solar irradiance performed below long run averages and unplanned downtime occurred at FGEN’s biomass facility due to leaks in sections of the boiler which are currently being assessed. Offsetting that is another period of exceptional above-budget performance from the Company’s crop-based anaerobic digestion investments – again showing the importance of a diversified portfolio across technologies that include crucial baseload assets that are less susceptible to short term fluctuations in weather patterns.
After another period of resilient operational performance, the Company remains on track to deliver a slightly improved full year dividend cover versus the 1.22x reported for the first six months of the financial year.
Other NAV movements
The usual discount rate unwind net of fund operating costs accounted for 2.1 pence per share of the overall positive movement of 2.9 pence per share for the period. The majority of the balance is driven by two specific value enhancement initiatives.
The Pressure Reduction System which underpins the Gas Shipping value enhancement initiative at Vulcan Renewables contributed 0.6 pence per share to the NAV this quarter, reflecting further value realisation through newly agreed offtake arrangements and continued strong performance on site.
In addition, CNG Fuels’ renewable transport fuel certificate pricing assumptions were raised to 27p, reflecting sustained recent performance and market expectations, adding 0.4 pence per share.
Update on status of FGEN’s growth assets
CNG Fuels continues to perform strongly, with biomethane‑fuelled HGVs remaining the leading large‑scale decarbonisation option supporting a 15% year‑on‑year increase in fuel dispensed, alongside growing adoption of heavier 6×2 vehicles. The RTFC business also remains strongly cash‑generative. At the Rjukan aquaculture facility, operations continue to be optimised and refined following first harvest in 2025 with a gradual production ramp up to the long-term target of 8,000 tonnes of sales per annum by 2028 and EBITDA breakeven forecast for H1 2027 as a critical milestone. Meanwhile, the Glasshouse continues to show strong traction as the UK’s leading domestic supplier of high‑quality medical cannabis, now supplying six of the eight largest clinics in the UK and showing gross profit and EBITDA figures ahead of budget for the year to date – with monthly sales peaking at 270kg in November – above the breakeven level of approximately 200kg per month required to be cash positive.
Gearing
In line with the Company’s stated approach to capital allocation and prudent debt management, FGEN continues to maintain one of the lowest gearing levels in the sector. As at 31 December 2025, total gearing was 30.9%, (30.6% at 30 September 2025) with £128.3 million drawn under the Company’s £150m Revolving Credit Facility.
Dividend
The Company also declares a quarterly interim dividend of 1.99 pence per share for the quarter ended 31 December 2025, consistent with the full-year target of 7.96 pence per share for the year to 31 March 2026, as set out in the 2025 Annual Report. This equates to a yield of 11.8% on the closing share price on 24 February 2026.
Dividend Timetable
Ex-dividend date 5 March 2026
Record date 6 March 2026
Payment date 27 March 2026
Leave a Reply