Ed Warner, Chair of FGEN, said:

“Despite a challenging geopolitical and macroeconomic backdrop, FGEN has demonstrated resilience over the period, with strong distributions from the portfolio which have provided a firm foundation to the 2.1% uplift in the dividend target from 7.80 pence to 7.96 pence.

“Our performance continues to be centred on disciplined capital allocation, robust income growth, and value accretive asset management. Our tenth consecutive year of record cash distribution, underpinning sustainable dividend coverage, reflects the strength and resilience of our portfolio.

“As announced earlier this month, the Board has conducted a rigorous review of the Company’s future strategy following consultation with independent external advisors and shareholders to deliver the best possible value in the long term. The Board concluded that shareholders are best served by the proactive management of the existing portfolio with a refocused investment strategy that reflects the structural changes in macroeconomic conditions in recent years. Looking ahead, the Company will prioritise stable, long-term cash flows from core environmental infrastructure assets to deliver predictable income to our shareholders, alongside fresh opportunities for growth.

“We continue to believe that our investment strategy – investing across renewable energy generation, other energy infrastructure and sustainable resource management – offers the best opportunities for investors while contributing significantly to the energy transition in our priority markets.  Environmental infrastructure continues to be one of the most significant investment opportunities of this generation and FGEN’s strategic mandate ensures it is uniquely placed to capitalise on this.”

Current yield 9.5%

Current discount to NAV 25%

A hold for the Snowball.