Greencoat has wind in its sails with debut first-half dividend

19th Aug 2013 07:52

FTSE newcomer Greencoat UK Wind has increased its net asset value (NAV) in the 12 weeks since listing and declared a maiden interim dividend. The company's debut set of results since it joined the FTSE Small Cap index showed NAV swelled from the 98p per share on listing to 100.9p. Greencoat, which invests in or buys proven on- and off-shore wind farms in the UK and is targeting a net internal rate of return of between 8.0% and 9.0%, has invested £251.1m of the £260m it raised on flotation.The board, which is led by former Abbey National boss Tim Ingram as Chairman, added that it was currently evaluating and performing due diligence on a number of "good opportunities", for which it intends to borrow funds and later repay borrowings with equity raisings.The new investment portfolio, including turbines based in Romney Marshes in Kent and County Fermanagh in Northern Ireland, has performed in line with management expectations in terms of energy production, operational expenditure and overall cash flow generation.Over the three-month period to June 30th 2013 the wind farms generated £10.8m cash to lift the bank balance to £15.1m and enabling the board to propose an initial dividend of 1.5p per share.Looking forward, the board declared it was confident that the outlook for investment in UK wind farms remained encouraging. "There is continuing strong investment in the construction of new wind farms and there should be a plentiful supply of operating wind farms to purchase at an attractive yield."Shares in Greencoat UK Wind were flat at 106.38p on Monday at 08:16.OH