JLEN Environmental reports resilient full-year performance

21st Jun 2024 11:18

(Sharecast News) - JLEN Environmental Assets Group reported a resilient financial performance for the year ended 31 March on Friday.

The London-listed company achieved a net asset value per share of 113.6p, maintaining its dividend payment targets.

Since its initial public offering (IPO), JLEN had delivered an annualised net asset value total return of 8%.

The company said it was on track to meet its annual dividend target of 7.57p per share, representing a yield of 8.1% based on the closing share price at the end of the reporting period.

It said it experienced record cash generation from its underlying assets, marking the second consecutive year of record distributions received from investments.

With a dividend cover of 1.30x, JLEN achieved its second-highest cover since IPO.

The company said it was continuing to exercise prudent balance sheet management, maintaining low levels of gearing.

JLEN said its capital allocation strategy remained focussed and effective, adding that the company had made significant progress on development and construction assets, unlocking potential for future capital growth.

Additionally, it has advanced several credible asset disposal opportunities.

Proceeds from those sales were intended to provide the flexibility to reduce debt and potentially undertake share buybacks accretive to net asset value.

The company said it was prioritising existing commitments to development and construction-stage assets, with new investment activities being highly selective.

"As we celebrate JLEN's 10th anniversary as a listed company, this year's performance is another demonstration of our resilience, despite it being a challenging year for the listed renewable investment company sector, including JLEN," said chair Ed Warner.

"We have delivered consecutive years of record distributions received from investments, resulting in a dividend cover of 1.30 times - the second highest since IPO.

"In the current difficult operating environment, we have maintained our disciplined approach to investment activity during the year."

Warner said future cash flows remained robust, with comfort provided from near-term fixes, such that the board had set a dividend target of 7.8p per share for the current year, an increase of 3%.

"We have also taken steps to strengthen our balance sheet, completing a successful refinancing of our revolving credit facility post period end.

"We are progressing several asset sales processes - we hope to complete the first transaction in the coming months."

Ed Warner added that the board had agreed a new fee structure with the firm's investment manager, which it believed would deliver "excellent value" for shareholders.

"We are proud of JLEN's performance over the past 10 years, including the company's record of delivering consecutive dividend growth since its launch in 2014, and believes strongly in the company's purpose and prospects."

At 1153 BST, shares in JLEN Environmental Assets Group were up 0.52% at 87.15p.

Reporting by Josh White for Sharecast.com.