SDCL Efficiency Income Trust plc (“SEIT” or the “Company”)
Update and Disposal

Following the publication of SEIT’s 2025 Annual Results and Accounts on 23 June, both the Investment Manager and independently the Chair (on behalf of the Board) have met with a number of SEIT’s shareholders to present the results and discuss possible strategic options for the Company.

Feedback emphasised the importance of continued portfolio performance and sufficient cash generation to cover the dividend whilst there was also a consensus around the importance of achieving successful asset disposals with benefits of this including a reduction in debt levels, and the opportunity for returning cash to shareholders in due course. 

Accordingly, the Investment Manager has successfully negotiated the sale of its convertible loan in ON Energy to the issuer for $7.6 million, representing an 18.75% premium to the current holding value of $6.4 million and a money on invested capital (“MOIC”) including actual cash receipts to date of 1.63x.

The sale delivers a cash realisation and removes exposure to a business where its geographic focus has shifted away from SEIT’s target markets. The proceeds from the sale will be used to reduce SEIT’s drawings on its revolving credit facility.

Tony Roper, Chair of SEIT, commented:

“The Board remains focussed on finding solutions to narrow the discount the Company’s shares trade at with disposals being key to simplifying the portfolio and reducing debt levels.  The Board is taking a more active role in supporting the disposal processes the Investment Manager is working on and will continue to explore all strategic options to achieve these important objectives.”

Jonathan Maxwell, CEO of SDCL, commented:

“The disposal reflects SEIT’s continued focus on crystallising value for shareholders, managing portfolio construction, and maintaining financial flexibility in a challenging M&A market. Our investment in ON Energy has generated attractive returns for SEIT. It is timely to exit as ON Energy moves on to the next stage of its growth and we are pleased to secure an exit at a significant premium as we continue to work hard to create further liquidity and value.”