Foresight Solar H1 2025 Earnings Report

Foresight Solar EPS Results

• Actual EPS: -GBX 0.29
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Foresight Solar Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Foresight Solar Announcement Details

• Quarter: H1 2025
• Date: 9/18/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, September 18, 2025
• Conference Call Time: 5:00AM ET

Foresight Solar (LON:FSFL) Fund Limited (“FSFL”) is a Jersey-registered, closed-end investment company investing in a diversified portfolio of ground-based solar PV and battery storage assets in the UK and internationally. The Company aims to deliver sustainable investment returns alongside strong environmental, social and governance (“ESG”) benefits.

Foresight Solar H1 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Operational performance was strong in H1 2025, with global generation 4% above budget and UK output nearly 9% above base case (13% ex-grid outages) thanks to higher irradiance.
• Positive Sentiment: Power price hedges and PPAs deliver revenue visibility, underpinning a forecast 1.3× dividend cover for 2025 and with further hedge positions being built into 2026–27.
• Positive Sentiment: The £60 million share buyback program has returned £29 million so far in H1, adding just under 3 pence per share to NAV and running for over two years.
• Positive Sentiment: Development pipeline progress includes 100 MW of capacity awards for solar + storage in Spain and a 55 MW UK solar project expected to reach ready-to-build status in early 2026.
• Negative Sentiment: Ongoing Australian asset sale processes face a buyer’s market environment and high financing rates, with management reviewing bidder conditions and project deliverability to protect value.

Presentation

[Operator]

Good day, ladies and gentlemen, and welcome to Foresight Solar Fund Interim Results Presentation. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. If you wish to ask a question, we ask that you please use the raise hand function at the bottom of your Zoom screen. If you've dialed in, please select star nine to raise your hand and star six to unmute. Instructions will also follow at the time of the Q&A. Participants can also submit questions through the webcast page using the Ask a Question button. I would like to remind all participants that this call is being recorded. Questions will follow after the presentation. I will now hand over to Ross Driver, Managing Director at Foresight Group, to start the presentation.

[Ross Driver, Managing Director at Foresight Group]

Good morning, and thank you for the intro. I'll go through to the next slide just in terms of what we're going to take you through there, highlights operational performance, corporate actions, and the outlook. Just going through the next slide, you see myself and my colleagues, I think, most people in the room, myself, Toby Virno, David Goodwin, Finance Director, and Matheus Fierro, IR Lead. Okay, we kick off. I think we'll run through the presentation and then, as always, open to questions from within the room, those of you who've joined us today and online as ever as well. Running through and noting that the NAV and a fair amount of this information has already been flagged about six weeks ago, but take you through the highlights for the first half of 2025 in general.

[Ross Driver, Managing Director at Foresight Group]

I think the not coming through is a bit surprising, but it has been quite a sunny first half of the year, definitely in comparison to 2024. That has fed through to global production across the portfolio. We were 4% above on our generation, albeit with an irradiation that was 8.5% higher. DNO outages have limited that U.K. generation, but U.K. generation itself was just under 9% above base. We've had a couple of questions already. It is cause it's a very sunny year. We have seen a few more DNO outages than usual, and these are sort of more at the grid level, not necessarily ones that our colleagues in asset management can always influence. I think it's fair to say that that is quite prevalent across what we're seeing across the market as well.

[Ross Driver, Managing Director at Foresight Group]

It is something that we take very close attention to in terms of our budgets and how we put them together because we've always managed to sort of nine out of the 12 years that we've been in operations have usually outperformed our budget. It was something we will pay close attention to. In terms of power price hedging, PPAs and the financial hedges that we've got there keep providing that revenue visibility. They have helped contribute to the dividend cover. In what has been a lower power price environment, it is something we are able to, we are continuing to build positions in 2026 and into 2027. It is something we are actively managing and managing to catch spikes in power prices as we are seeing them. We think that the financial hedges that we've got in place are a very strong tool in that area.

[Ross Driver, Managing Director at Foresight Group]

And that is why ourselves and the board are confident on the 1.3x dividend cover that we are forecasting for this year. In respect to the capital returns, the share buyback program has, as you'll have seen, increased to GBP 60 million. We've gone past around GBP 50 million of that now, and the fund has returned GBP 29 million to investors in the first six months of this year. It is ongoing. That buyback program is consistent in the market where it has been for about over two years now, and adding just under GBP 0.03 to the NAV. In terms of cost control balance sheet management, we did during the period resize and extend the revolving credit facility.

[Ross Driver, Managing Director at Foresight Group]

It's not been used to the same extent at the moment, but it is a useful tool to have there that we expect will save around a million during the life of that RCF, and as a reminder, we do also have a multi-currency facility where our ability to shift a large portion of that into Euros actually gives us quite significant savings on the interest payments there as well. On the development pipeline side, where the development at the moment is mainly focused in Spain, and happy to take a few questions around that later, around that market and what it means. We're delighted that we have now received capacity awards for five projects, around 100 MW of BESS in the country. This is coming through from what we are seeing is a very competitive process to be bidding into those for BESS capacity.

[Ross Driver, Managing Director at Foresight Group]

Obviously, you've seen what's happened with the grid in Spain and the outages. Also, what's happening around solar power prices and capture discounts there as well. But the market for BESS in Spain, we see, is about five to six years behind the U.K. at the moment. There's a real need for that balancing capacity there. And what we're seeing in terms of activity of bidding for these projects is it's very competitive, but we are also seeing our Madrid office seeing that pricing holding up at the ready to build stage. We do say we have those awards, but there's still quite a bit we need to work through in terms of seeing how those projects actually get through to ready to build. It will take some time, but I think we are continuing with our part to keep bidding into that market at the moment.

[Ross Driver, Managing Director at Foresight Group]

On the other side, we do have. We expect our first solar project out of the pipeline, a 55 MW project, to reach ready-to-build status probably in the new year. Just for a reminder on those, all of those assets are valued at cost. There is no write-up in the valuation until they reach the ready-to-build stage. Just in terms of ongoing investments, I think it's fair to say that markets are more challenging than at the outset. It's only got more difficult during the year. There is a specific slide on that. We will go into where we are in terms of the Australian process, where we have had some bids in on that, but we are reviewing and what we are undertaking in other core markets where processes have kicked off at the moment.

[Ross Driver, Managing Director at Foresight Group]

I think the only other thing to note on the slide from there is U.K. valuations about GBP 1.09 million per MW, which we think is reasonable in the current markets. But again, we'll continue to be reviewed, particularly as we see where gilt rates, risk-free rates, and everything else is sitting at the moment. But that strong 1.3x dividend cover for the year. I just moved to the operational side on page six there. I think this is where you'll see really coming out in terms of the performance. U.K. just under 9% above budget there, which wasn't a surprise to us given the stronger irradiation during the year.

[Ross Driver, Managing Director at Foresight Group]

I think one thing we've just sort of increased the size of the footnotes here just to be that we do say that I think there are some differences in how these numbers are reported, and we always strip out the DNO outages from our numbers. If we were to put the DNO outages back in, I think they are to an extent outside our control to these larger grid ones. We do, where possible teams on more localized grid outages seek to work with the DNOs to put those out of hours. But if you had excluded those network outages, U.K. would have been about 13% above base case. We are seeing higher levels of outages on the grid at the moment, although those numbers also include levels of compensation where they are received from either the DNO or the grid in certain circumstances.

[Ross Driver, Managing Director at Foresight Group]

Let's say going down the list there that Spain did have lower variation to base case in the year and slightly worse than the same period last year as well. This is partly due to the higher sea of negative pricing that we're seeing during the period there and of grid outages as well. That's something we're going to keep a close eye on in terms of the budgets that we're looking at for that. Australia, despite the challenges, actually the underlying portfolio is working well, and I think it's fair to say that even with the irradiation down, because of the negative pricing, has a bit of a perverse effect on the market there. The higher the irradiation can lead to higher levels of economic attainment, but when irradiation is slightly below, the assets, the revenues tend to perform better.

[Ross Driver, Managing Director at Foresight Group]

So, I think we've got the budgets on the Australian portfolio more in line with what is happening at the moment, but it's helpful for as we progress the investment case there. Just hand over to Toby on power price hedging.

[Toby Virno, Associate Director at Foresight Group]

Sure. Thank you, Ross. And good morning, everyone. So I'm going to start by talking about power price hedging and contract revenue forecast for the next couple of years, the chart that we've put out to the market. The portfolio continues to benefit from very, very high levels of contracted revenues in 2025, continuing to benefit from the attractive forward fixes secured in the aftermath of the invasion of Ukraine and the European energy crisis. Combined with the strong operational performance of this year, there's a very high degree of confidence in delivering on that dividend cover target of 1.3x for the full year. As we look ahead to 2026 and 2027, and we move past this period of heightened electricity prices that funds such as us were able to secure, we are returning to more normalized levels.

[Toby Virno, Associate Director at Foresight Group]

In fact, what we're seeing is slightly bearish markets in terms of electricity forwards. That's driven in part by reduced expectations for economic growth, geopolitical barriers, American tariffs, conflicts around the world, and also increased LNG output from key markets, both of which dampening prices. There's a slight balance to that with relatively low levels of gas storage in Europe at the moment and markets needing to get there ahead of winter such that they're not depleted if there is a cold snap over the next months. In spite of this bearish outlook, as Ross mentioned earlier, Foresight Solar has continued to deliver on its hedging strategy, continued to secure hedges at levels which are accretive to dividend and attractive prices, and we remain on course to deliver contract revenues in line with the company's hedging policy target.

[Toby Virno, Associate Director at Foresight Group]

That's 75% contracted revenues target, looking out to the kind of two years ahead. That is to leave an appropriate level of market exposure whilst securing a good proportion of revenues in order to underpin our stable dividend. We've been able to achieve this through ongoing active management. We've expanded our toolkit of instruments that we're able to hedge through during the period. During periods of volatility, we've been able to execute these attractive hedges. The team will continue to build the portfolio's hedge position for 2027 and years to come thereafter. If we move to the next slide, please. I'll then move on to the financial gearing position of the portfolio. This remains stable at around 40% versus the last reported results.

[Toby Virno, Associate Director at Foresight Group]

The key developments in the period, which we touched on earlier, was the resizing of the RCF, so shrinking from GBP 150 million to GBP 100 million and renegotiation of the terms to tailor it to the near-term strategic objectives of the fund and priorities in the near term. This leaner structure is expected to save around GBP 1 million in debt costs over the term of the facility, which is a great result while still maintaining the flexibility and high value, the utilization value of that facility. It continues to be of benefit to the fund. Portfolio-level debt continues to be paid down. It remains fully amortizing and fully hedged to interest rate movement. We look forward to continuing to target repaying debt over periods to come.

[Toby Virno, Associate Director at Foresight Group]

Clearly, material reductions in the level of RCF will be dependent on successful outcome of sales processes in the absence of more material dividend cover in years ahead. I'll hand back now to Ross to take us through the NAV bridge for the first half of the year.

[Ross Driver, Managing Director at Foresight Group]

Over to the NAV. I mean, this is the bridge for the first half of the year. This has been announced already, I think, in terms of the main drivers. It won't be a surprise to you. I think in terms of the, again, going back to the buybacks that have now delivered about just under three pence of NAV accretion since we started those in May 2023. The first half of the year, that's added half a pence back there. Other major, although I'd say that the project's actuals always come through with a bit of a lag. So they were slightly negative due to, that's probably the first quarter. We should see that tick up in the by Q3 in terms of the cash generation out of that, given the good second quarter that we've had.

[Ross Driver, Managing Director at Foresight Group]

Major driver of downside, I think no surprise coming through there in terms of the power price forecasts. We are well hedged, and I think you will have seen one of the other funds, I think, make specific reference to one power curve provider in particular that changed their forecast quite significantly. I think it was the same as what we saw as well. It was what appeared to be some level of replacement in that for one of the providers, whether that flows through and there is a subsequent change again later, but it's exactly the reason that we use a blended curve in terms of three forecasters there. There was a small change in the discount rate for Australian. That's more, I would say at this stage, influenced by movements we're seeing in the market. We're not yet sort of valuing that at specific bids that we've received.

[Ross Driver, Managing Director at Foresight Group]

We'll talk through that in the next couple of pages, and a small adjustment there for the sale of the LunarNet project. A minor downside on those project rights as there was a small adjustment to grid costs there in that sale, but otherwise, it was thoroughly in line with the revalued valuation there. I think all of that, so I'm happy to take any questions on that at the end. In terms of the divestment program, I think just jumping straight in there to sort of phase two on Australia at the moment, and I think the heading, just to give a bit of flavor of this, and look, we're trying to be as transparent as possible with yourselves and the market. These processes are very live at the moment, and I would just say it's quite clear that markets are definitely in Australia.

[Ross Driver, Managing Director at Foresight Group]

We may see some of that in other markets as well, although we're waiting to receive feedback in those. It is with continuing rise in the gilt rates. I think we'll see for the U.K. if we're looking at Spain as well. But in Australia, the gilt rates have sustained at higher levels now for the whole of this year. It is definitely more of the buyer's market out there. And I think we have to be flexible in terms of how we're approaching that market and also with interest in bids that are coming through. In Australia in particular, there are, it's fair to say we have had a small number of bids in there for those projects. They are not yet firm in terms of that. There is still quite a bit of detail to be worked through, and there will be conditions attached to those.

[Ross Driver, Managing Director at Foresight Group]

I think as we are where we are this morning, we are working through ourselves, our colleagues in the office, and the local advisor working through the deliverability of those. I was saying too much. I think they would be. This is not just a question of pricing. Values could be within an acceptable range. I'm not going to put a specific price on that, but it's in terms of that deliverability to be able to bring those through. It may be we need to run those discussions as they are at the moment, run those to their conclusion, and we may need to be flexible in how we look at that. It may be a case that we find something that we could work with. My gut feel is that this is going to take a longer period in terms of being able to work through those.

[Ross Driver, Managing Director at Foresight Group]

It may be that there is a need to pivot the process slightly as well. One thing about that market is there are still a lot of transactions out there. And also what you want to make sure is that you're able to get through bidders who are able. It would be great to get some of the local bidders into that process who maybe didn't have capacity at the time. So potentially pausing, potentially giving a bit of space for others to come through. And I would say one of the things is we are still waiting for some further potential bids to arrive. So that's the need to be flexible. Trying to give as much transparency at the moment. It is difficult to give an ongoing commentary while you're running large processes without prejudicing that as well.

[Ross Driver, Managing Director at Foresight Group]

In terms of the other ongoing, we have, and the board is committed as well to further projects that are settling around at least 75 MW for these other markets. I think we do have processes underway, appointment of financial advisors. I think it's fair to say on those we are awaiting feedback, but looking to push those ahead, but again, I think the need to be flexible in these markets in order to protect value and make sure that we are getting best value for shareholders is absolutely key, but happy to take any questions on that to the extent I can at the end.

[Toby Virno, Associate Director at Foresight Group]

Yep. I'm going to talk us through our development activity. And there have been some very exciting updates in the first half of the year in respect to Foresight Solar's development pipeline, primarily in the Spanish markets. Ross touched on some of these at the outset. So in the period, we secured about 100 MW of grid capacity for potential battery storage projects in Spain. And we're working with our local development team to evaluate the best opportunities possible to progress. Alongside, our leading solar development project is advancing steadily through its permitting process, and it's expected to reach ready-to-build in the coming months. We continue to see a blended pipeline of solar and storage being optimal in the Spanish markets. And we've already touched on earlier some of the curtailment issues and negative pricing that have been seen in the markets.

[Toby Virno, Associate Director at Foresight Group]

And that really emphasizes the importance of flexible storage assets for that market. And that's why our balanced pipeline, we feel, is really well targeted and also really well aligned to investor appetite. And as we know, this development strategy presents a high level of optionality. We illustrated in the chart just on the slide that for these projects, through development, once successfully at ready to build, and then operations, there are multiple milestones at which you could choose to go to market and crystallize some of the valuation uplift. And what we're seeing is in the Spanish market that investors are very focused on diversified portfolios, which include both generation and storage.

[Toby Virno, Associate Director at Foresight Group]

We think that our pipeline is very well matched to that market and presents that optionality to crystallize value and crystallize liquidity in periods to come, albeit development is a dynamic process and it does take some time, and there will be an attrition rate. Just to reiterate the overarching strategy, we are targeting between two and three GW of rolling pipeline. As I just said, there will be some attrition in that. We certainly don't expect 100% success through that, but we're very pleased with the success that we've seen come through as we started the journey throughout the course of this year so far. If we move on to the next slide, please, and I'll hand back to Ross.

[Ross Driver, Managing Director at Foresight Group]

Go ahead through the corporate actions. I think this is more of an update from ourselves and reflecting the views of the board in terms of where the sort of company is at the moment. And it is a case of ongoing action here to seek to address the share price discount, voting the rebate, the de-rating that has happened across the entire sector. So we are playing with things that are within our control to an extent. And that is initiatives to generate cash, return capital to continue to pay down the debt. So there is strong support for a consistent share buyback there, returning up to GBP 60 million to shareholders. That is consistent and will be continuing to do that. I think the de-rating of the share price, that absolutely makes sense at the moment. The fund is continuing to pay down debt.

[Ross Driver, Managing Director at Foresight Group]

It is fully amortizing at the moment and seeking those opportunities to continue to reduce that further. We will say focus on unlocking additional capital from the portfolio, which can come through the divestments, but can come through other means that we're investigating as well. And we will continue to invest those modest sums into higher yielding development assets because as we are starting to see in Spain, we do think that that has the value to bring through some quite attractive returns out of that, even in what could be seen as more challenging markets. In terms of the capital returns, there again, we have now gone over the GBP 50 million level in terms of buybacks to date, dividend of 22, GBP 2.5 million paid out in H1 and confidence in that 1.3x target dividend cover for this year.

[Ross Driver, Managing Director at Foresight Group]

I think we can expect that to sort of come down over the next couple of years, but still confident of being north of one to 1.1x over the next couple of years in terms of that. We are still benefiting at the moment in terms of some of those higher power prices that were locked in sort of post-Ukraine. And I think we'd get back to a more normalized level in terms of that where we were sort of pre-pandemic. Capital recycling key to realizing that value, but again, coming back to that point, we're just going to need to be flexible in those processes in order to do that, in order to protect value for shareholders. On the governance side, the continued shareholder engagement, so we'll be receiving feedback. There has been quite a bit of change in our shareholder register, as with others as well.

[Ross Driver, Managing Director at Foresight Group]

The board and ourselves are very keen to get on the road and be hearing from particularly new investors, all those building higher stakes in the company to get their views, particularly in the current market conditions. The phased board succession plan completed effectively yesterday when Alex Ohlsson stepped down and retired. We said a fond farewell to him. Tony Roper now is stepping into the chair role, a chairman who's well known to many of you. Paul Masterson, in place with us, said, "I think we have a strong board there at the moment who is well placed to advise shareholders and act in their interests in the current time." I think the plan is to, we are at four at the moment, but to add another in due course as well.

[Ross Driver, Managing Director at Foresight Group]

The directors, I would say, acknowledge the AGM results that gave support to their current direction of travel, but they are aware of the task ahead, particularly in the current markets and the need to make progress with this and are committed to that. In terms of strategic options, a couple of things in there. You will have noticed the comments around having made another proposal for another investment trust in May. That was very much driven by the synergies between the two that could be seen there that was felt as very much in shareholders' interests. Exploring other pathways to release capital, as we're saying, and even potentially valuation of the vehicle structure itself.

[Ross Driver, Managing Director at Foresight Group]

None of those necessarily on its own are deemed as being a panacea to the issues and challenges that we have, but it's just to give a sense that everything is on the table and being explored at the moment in conjunction with ourselves and the board, and the board remains focused on delivering the best possible outcome for shareholders. They're highly committed to that. Toby, if you want to talk through the outlook and some of the sort of wider factors we've been experiencing.

[Toby Virno, Associate Director at Foresight Group]

Yeah, sure thing. So we're going to draw on three key highlights here that are probably most pertinent to Foresight Solar for the period. The first being REMA, well publicized and discussed, but we welcomed the confirmation that zonal pricing isn't going to be pursued and instead there's going to be focus on reform of the single national market. Whilst our portfolio wasn't set to particularly gain or lose dramatically through zonal pricing, we do think that it helps to dispel a bit of a regulatory risk cloud that was hovering over the sector. And that will just encourage investment and it should offer support to the sector tangentially at least. The second point that we'd make is on AR7 and the kind of enhanced legislative support there through the CFD mechanism. Now, AR7 is currently live.

[Toby Virno, Associate Director at Foresight Group]

I'm probably chiming in, but some of the initiatives such as extending the support period to up to 20 years and also the slight change in approach to announcing budgets that should, we believe, lead to a very successful auction for solar in the U.K.. This gives a great opportunity for the continued support and pull solar in the U.K., and that's something that Foresight Solar in its home market should look to benefit from in years to come, so we do think there are some quite helpful developments there in that level of support, all targeting, of course, the ambitious net zero targets, 2030, 2035, etc. We also want to touch on Spanish reforms. We've mentioned our success in the commencement of our development activity there, and the need for Spanish reforms is clearly recognized within governments and within the grid operators.

[Toby Virno, Associate Director at Foresight Group]

There have been instructions of support regimes, including capital subsidies and reduced hurdles for permitting, in particular for operational assets that are seeking to hybridize battery storage and co-locate that alongside. In short, both FSFL's operational portfolio and development pipeline could stand to potentially benefit from these sorts of initiatives. And so we think that that can add value to our development activity in Spain. I'll pass back over now to Ross.

[Ross Driver, Managing Director at Foresight Group]

Just to summarize on the conclusion thoughts, really looking across the performance, so I'd say the operating performance of the first half of the year really builds on the strong track record of the fund. Again, we come back to, I think it's fair to ask those questions about high levels of outages, but we have always been very careful looking at our production and looking at the forecast yields. U.K. portfolio has a really good track record there, a bit above budget in nine of 12 years of operation, and that's something that we will look to replicate going forwards. Very good availability there in dividend and accretive power price hedging. We do think that that is something that is going to start to show the benefits, especially during the next couple of years while power prices are sort of a bit further depressed at the moment.

[Ross Driver, Managing Director at Foresight Group]

We don't see that many others hedging out into the years ahead, so that will come through. Corporate actions, again, buyback program up to GBP 60 million, already one of the largest in the sector relative to NAV, implementing those initiatives to reduce finance costs. Sale processes starting and analyzing, the board itself analyzing all those options to deliver the best outcome for shareholders. There are some industry tailwinds out there, less volatility in power prices despite the turmoil in the Middle East. Strong support, continued support in the U.K. for renewables to be pushed ahead. As Toby was just saying, we do see more opportunities there. It's interesting dynamics in those markets and we just want to be seeing. We are looking still at development opportunities, particularly in the U.K., of making sure government partners with the right assets that are there.

[Ross Driver, Managing Director at Foresight Group]

Capital returns, consolidation amongst investment trusts is probably positive and what is required for the sector, but it's not an easy space at the moment. So I'll pause there. That's everything that we had to update on. And happy to hand over to the next questions. Charlie, you're right in front of me there, so I can't.

[Ross Driver, Managing Director at Foresight Group]

Good morning. Starting Spain. Given the capture discount rates you're seeing in Spain, is new solar economically attractive from an investment perspective? How does it stack up?

[Ross Driver, Managing Director at Foresight Group]

It can still be. I think it all comes down to what the prices are at a ready-to-build level, and I think if you go back, the important thing to note about the Spanish market there is that the power curves already have quite a high level of consolidation built into them. So they are in the 40%-50% level of consolidation. What is coming through and being reflected there is the upfront cost of projects. I think we could see a bit of for those kind of projects, we could see a bit of market rebalancing there. But if you were going off just a couple of years back, those project rights would be trading hands at over 200k per MW hour. I mean, they are discernibly less than that now and less than 100, probably within the sort of 60k-100k range.

[Ross Driver, Managing Director at Foresight Group]

It all comes down to expectations from developers around what they're going to receive for those. There will be clearly some market shakeout there. I think the key thing for, as we keep saying, I think the key thing that the Spanish market is going to need, and you see those large periods of negative pricing during the peak hours of the day, is going to be BESS developed for the grid balance.

[Ross Driver, Managing Director at Foresight Group]

That was my next question. Is there a big enough intraday spread to make an attractive term for BESS, or do you still need to go for the subsidy as well to provide ancillary services or some other?

[Ross Driver, Managing Director at Foresight Group]

They have had. Spain has had state aid sign off from the EU in terms of that. The model of what they're looking at is a capacity market at the moment. So that is still yet to be formalized in terms of what it is. I think a lot of the consultants and teams that we and our team in Madrid are looking at it say there is a lot of good examples of what's been done in the U.K., and they are looking to that in certain areas. I wouldn't say all the support mechanisms in terms of things that we've seen here in the U.K. before in terms of FFR and those kind of things. They quickly get bid up. So not necessarily think about them in terms of long-term support.

[Ross Driver, Managing Director at Foresight Group]

But I'd say at the moment, we are not saying we would necessarily, even if we have the capital, be pushing ahead to build these projects out. We are looking to explore that market. But what we can say is that there is significant appetite there in terms of acquiring these projects at the outset. Under the deal that we've got, we are getting in and we are getting those projects at a good level of return. And we are seeing prices for ready-to-build projects holding up very strongly as well. We are looking at this as more of a development play at the moment. There is only a few hundred MW of BESS operational currently in Spain. Only the first few projects are built through, but there is a huge pipeline coming through there as well.

[Toby Virno, Associate Director at Foresight Group]

I think taking a step back for the markets, there's a number of European markets with similarly high levels of renewable penetration, but Spain is among the highest and one of the least interconnected countries in the market. Just the bird's eye of the U.K. to BESS is very, very strong in the markets. Yeah, the capital subsidy that we mentioned is limited. It's a limited budget. It's very much been those in the market, those have been early movers that will start to benefit from that. That was really to accelerate the build out as it's clearly needed.

[Ross Driver, Managing Director at Foresight Group]

I think the other point just going to that is clearly it's a competitive market for capital as well. Spain is going down that route. You've seen Italy giving out what are tolling agreements there under the MACSE options that sort of CPI linked to, so it is the grid and the energy providers and government actually looking to compete for capital across Europe, especially those countries that know they need to build out additional storage generation.

[Ross Driver, Managing Director at Foresight Group]

I've got a couple more questions, but I have to hand over to someone else.

[Ross Driver, Managing Director at Foresight Group]

Can I just ask on what's on page seven, looking at the contracted revenues? so I think 77% fixed for 2026. I think you're saying that PPA pricing is a bit softer. Given that the market price is at the moment relatively high, I mean, would you just be happier running with a higher merchant level than you have historically, rather than entering PPAs at, I guess, significantly lower prices than current market? That was a bit of a trade-off, if you like.

[Toby Virno, Associate Director at Foresight Group]

Yeah, no, absolutely, and you'll have seen, I guess, a relatively common sense approach to the level of contract revenues that we've targeted over the last few years in the depths of COVID, leaving open a great level of market exposure and peak European energy crisis fixed to the max because it made absolute sense to do so at those unsustainable levels. The policy target is around 75% total contracted revenues, and that includes our subsidy revenues that we receive from various markets as well. So roughly speaking, we're looking to hedge about 50% of our electricity sales, and so that's what we target. At the moment, we do see a sort of normalization of prices, and we are taking that balance too that actually that 25% exposure is appropriate. We will continue to appraise that.

[Toby Virno, Associate Director at Foresight Group]

Clearly, the advantage of hedging is that you can avoid a situation where gas prices are greater for any reason and have that knock-on effect on electricity prices. And for our stated investment objective, that would be a situation we'd want to avoid. So we do feel it's appropriate to continue to build those positions and maintain that level of hedging because it's an uncertain and volatile market. But equally, it is appropriate to have a bit of potential upside exposure as well, as we've seen. And it's literally paid dividends from the last few years with that concern.

[Ross Driver, Managing Director at Foresight Group]

I'll just add to that in terms of our strategy hasn't changed in terms of the way we look at it. I think if we all, all we've done is add additional strings to our bow in a way in terms of the way we can access that. Particularly when there is this volatility in pricing with the sort of limit orders that we have there, we can capture those peaks. I think we would much rather, we've always said we are not energy traders. We're not trying to second guess the market. We are actually working with former heads of energy trading companies that are helping us put this process in place. If those opportunities come to allow us to build up those positions and we can kind of scalp those peaks and when there's a, we think that that's a much better.

[Ross Driver, Managing Director at Foresight Group]

What we want to do is build that sort of level of dividend cover, but we're always happy to maintain the level of merchant exposure as well. I think in terms of the next few years, I would say we're not in a different position to where we've been historically. This sort of situation, four years I've been here has always been sort of quite similar in that, maybe with the exception of being the peaks in the peaks in terms of pricing, but we all just filled our boots. I think now as you're seeing those hedges, those hedges are starting to roll off for everyone. I think the question of the model is, what can you do now in more time?

[Ross Driver, Managing Director at Foresight Group]

Are you just waiting for the merchant prices to roll through and taking those risks to 2027, or can you do anything to sort of hedge in advance? We would very much like to build that position in 2026 and 2027 as well.

[Toby Virno, Associate Director at Foresight Group]

In this area, as with other areas, we're staying with a consistent delivery of our strategy. So as you look at our reporting over the last year, you'll see those percentages and those levels increase consistently as we target through that strategy. And so far, that's not been at the detriment of accretive dividends, cover levels of pricing, etc. So it's by being nimble, being active in your management that you can continue to deliver that one.

[Toby Virno, Associate Director at Foresight Group]

Thanks.

[Ross Driver, Managing Director at Foresight Group]

Anything else?

[Ross Driver, Managing Director at Foresight Group]

I'll add something else if I can.

[Ross Driver, Managing Director at Foresight Group]

Sorry.

[Ross Driver, Managing Director at Foresight Group]

Ross, just on consultant power curves, because you mentioned that your average had come down because the lowest AFRY came down markedly. Just sort of what feedback have you had for them as to the drivers of why it was such a material move, but also in particular, given you're also in Spain, why they had such a big move in the U.K. compared to other European moves?

[Ross Driver, Managing Director at Foresight Group]

Yeah, I'm truly being a little bit cautious around that in terms of our valuations. Colleagues have the direct conversations without wanting to say too much about one particular power curve provider in terms of that. I think they do all have their own independent views in terms of things. Have we seen? I might have to just answer that question a little bit more generically rather than putting one on one spot, but do we sometimes see movements in the other direction and then things to come through and correct that back in other ways? Are there times when it feels like they have maybe rebased their assumptions? I think we have had to dig into that in quite a bit of detail because actually the narrative that comes alongside it doesn't always necessarily play into the big moves that we're seeing, to be fair.

[Ross Driver, Managing Director at Foresight Group]

So it's not the most straightforward answer, I think, in terms of that. But again, we want to see that. We want to see that versus the curve before and the next curve as well in terms of to see where they come out. But we have had this. This was quite a specific and quite a large move. And I think we're still digging into it with them in terms of fully understanding that and see where they go next. But that is the whole reason for using multiple curve providers as well.

[Ross Driver, Managing Director at Foresight Group]

Okay. Thank you.

[Ross Driver, Managing Director at Foresight Group]

Hi. Do you apply the cash discounts to those curves or are they?

[Ross Driver, Managing Director at Foresight Group]

We do. Yes. And as you always say, something I'd like to give some more transparency on, but what we do is in terms of the near term, it's always guided by what we're actually seeing coming through from the portfolio itself. So we've been applying capture discounts to the curves sort of before the power price curve providers themselves did. So we've always taken an in-house view of this. And this is based. The near term is based on what we're seeing coming off the portfolio sort of over the last couple of years. We have seen it take up in the last year, but it's been an incredibly, when you tend to have very, very sunny years, you have higher percentages of capture discounts. And that is where it's influenced that.

[Ross Driver, Managing Director at Foresight Group]

I think it's fair to say sort of in the longer term, we bring ourselves in line with the consultant averages as well. But it's also driven a lot by the level of rollout in terms of the consensus. It's fair to say, I think we could start to see, particularly with the support from the CFD market, if AR7 goes through, there will be a lot of capacity coming on probably in the next few years. But it's always been at a lower level of deployment, I think, than the consultants have forecast for in theory. So I think it's something we're comfortable with at the moment, but we'll continue to monitor that.

[Toby Virno, Associate Director at Foresight Group]

Have your further assumptions changed at all over the last year so that they are evaluated in the same way as the near-term ones are. In general, we obviously do take agreements of what the curve providers produce from their models. As you know, there's three excellent forecasters that we use there, very sophisticated economic models that churn out the long-term results, and our final position ends up in a pretty similar place to where they are. The shape along the way is obviously slightly different, particularly in the near term, where we're informed by our actual capture price from last year to last five years, which is very specific to our portfolio because clearly it depends on the topography of the sites and the performance of individual sites as to how they all perform.

[Toby Virno, Associate Director at Foresight Group]

So the best proxy for certainly our U.K. portfolio in the next year is what it's done for the last five years or so. We would add that there's a bit of a differentiated approach to the market. So we've had exciting for that for a long period of time where we do put a lot more weight on the consultant curves. We use consultant curves and strike rates.

[Toby Virno, Associate Director at Foresight Group]

Also just going back to the PPAs, do you fix corporate PPAs as well or is it mainly utilities or a mix?

[Ross Driver, Managing Director at Foresight Group]

Depending on the utilities at the moment, we continue to export the options through corporate PPAs as well.

[Toby Virno, Associate Director at Foresight Group]

It's been a very interesting few years for the corporate PPA market, swinging wildly from buyer's market to seller's market as pressures have gone either way. So it will continue to play an important role. It's a relatively shallow market in the scheme of things and the scheme of the rollout of renewables over the coming years. But it will certainly play an important role in supporting such projects.

[Toby Virno, Associate Director at Foresight Group]

The U.K. portfolio valuation on a per MW basis has been largely sort of static for a few years now. Have you seen any sort of material transactions which kind of triangulate your valuation? I mean, just thinking it's been a couple of years since Toucan, for example.

[Toby Virno, Associate Director at Foresight Group]

Yeah, there's been a bit of a dearth of transactions. Largely, people are enjoying the yield, I think, from largely well-optimized operating portfolios. Certainly, ours continues to generate extremely attractive cash flows because it supports all sorts of our activities. So there haven't been that many, but I'm not actually aware of any material U.K. ROC transactions for solar in the last couple of years. There has been less than a handful of ROC-backed wind projects that have changed hands, small in scale. But yeah, when they do come up, they do tend to be quite important overall because of those cash flows that still support solar that's 10 years circa to run on the ROC support, which you can't get that sort of cash flow from any other investors at the moment.

[Ross Driver, Managing Director at Foresight Group]

What we do see is in the sort of ready-to-build market.

[Toby Virno, Associate Director at Foresight Group]

Oh, absolutely.

[Ross Driver, Managing Director at Foresight Group]

For the projects that are coming through backed by CFDs or even pre-CFDs, we see that as being even more competitive than this price. So maybe there is some more premium for newer projects that have got maybe 20-year index-linked. But that market at the moment and there's broader Foresight, we are bidding into that actively and seeing there is still a lot of interest and valuations that are even higher than this, really. So in all concern, there is, we will find out more as well, and I think it's a key piece because you look at how the gilt rates moved at the moment. It's almost been a case of sort of boiling the frog over the last year or so. You look at it, we are now the 10-year gilts or long-term gilts now far higher than they were even under the Truss short-lived administration.

[Ross Driver, Managing Director at Foresight Group]

So we are aware and conscious of that and looking to triangulate a lot of this price. I think, look, watch this space. We will continue to update and review that through the second half of the season as well.

[Ross Driver, Managing Director at Foresight Group]

Thanks.

[Ross Driver, Managing Director at Foresight Group]

Shall we begin?

[Ross Driver, Managing Director at Foresight Group]

Two questions. One, is the market more challenging in the U.K.? Anything in particular that stands out? And then if some comment around whether a long-term PPA market is developing or perceiving the signs of one in the U.K.?

[Ross Driver, Managing Director at Foresight Group]

I wouldn't say, look, at the moment, I wouldn't say we're singling out the U.K. as being more challenging. I think if you just look across the piece globally in terms of that, where we are, particularly because of the macroeconomic side of it as well, I think a continued theme is there are probably a lot of buyers sat on the sidelines waiting to see how things pan out at the moment. It's too premature for us to say that the U.K. is a particularly challenged market. Take that as more of a general comment. And this is feeding into these, look, it's, I think, just to be transparent, it's no surprise. It's that sort of divestments across the market have taken longer than people would have liked or would have hoped for as well. I think we're just being transparent about that.

[Ross Driver, Managing Director at Foresight Group]

And the fact is we do have to protect shareholder value as well. There are pockets of capital. There are interested parties out there in the assets, but it takes time and you don't want to be seen to be a forced seller in these markets where the power is with the buyers, really. We just want to be honest and open about that.

[Toby Virno, Associate Director at Foresight Group]

Yeah. Maintaining discipline is really key for sellers in the buyer's market, such as where we're at, and so I think that's absolutely what we're doing, and acknowledging the need to be flexible at times and pragmatic about these processes and the feedback you receive, but at the same time, maintaining that discipline to maintain value for shareholders is key. Just touching on your second question on long-term PPAs, so the corporate PPA market in recent years has largely been focused on these wind projects, but for a number of factors, including sort of marketing and PR benefits that go with it. However, we are seeing a growing market for mid-term PPAs, I'd say, for operational renewables projects.

[Toby Virno, Associate Director at Foresight Group]

And that's in part for corporates to lock in price certainty, where they've ridden roller coasters for the last few years, and they actually see that supporting a renewables project, even if it's one that's got a subsidy, brings benefits for them in terms of that price stability for a meaningful portion of their demand. So I would say sort of five-year term type PPAs are growing. It is not certainly the norm yet, but we hope that that will continue to build and could present optionality for a strong portfolio such as us, particularly as we start to stare down the end of the ROC period over the next few years. We've still got a little over 10 years to go, but there will come a time when these projects are going to be looking for extending their contractual revenue structure.

[Toby Virno, Associate Director at Foresight Group]

And so, yeah, it'll be helpful for that market to continue to grow and be nurtured.

[Ross Driver, Managing Director at Foresight Group]

And it's our colleagues in our portfolio management team are constantly having conversations with us. So this is it.

[Ross Driver, Managing Director at Foresight Group]

If everyone will. In terms of, you say.

[Ross Driver, Managing Director at Foresight Group]

Did you get preference if you turned up?

[Ross Driver, Managing Director at Foresight Group]

You'll allocate modest sums to the development pipeline. Is that a kind of GBP 1-2 million here or there or maybe 5-10? Do you have any idea?

[Ross Driver, Managing Director at Foresight Group]

It all comes down to this. I think it will form part of the capital rotation part of things as well in terms of how much capital we have to deploy in that, and we've got to look at what I think, if I'm trying to summarize the views of the board as well, I would say we've had a very disciplined capital allocation approach at the moment, and it's our trade-off, especially when the share price discount is at a much higher level, like pushing nearly 30% now, it's a bit of an upgrade. The majority of that money goes into there.

[Ross Driver, Managing Director at Foresight Group]

I think what we should hope to be able to prove with what's coming through the Spanish development pipeline is that it still makes sense. There are good returns to be made out of this, albeit on a low-value marketplace. I think part of it will be we are seeing good opportunities in the U.K. market. I think that will come down to how much capital we have to deploy into such things at the moment. I think single-digit millions at the moment is probably a reasonable amount, unless there is something more material and strategic that we can get up. And I think there would be, it's true to say, I mean, we've been in this sort of situation in the macro for a couple of years now.

[Ross Driver, Managing Director at Foresight Group]

We all know that if you don't continue to invest in these funds as well, the NAV will start to decline and run up over a period. We do have a dual mandate to continue to invest and protect NAV as well. I think there is part of that we need to think about in at some point potentially pivoting out of the legacy assets and into newer assets as well to continue to protect the income stream longer term.

[Toby Virno, Associate Director at Foresight Group]

But yeah, something more strategic would definitely be more than a couple of million GBP. But yeah, we'll continue to appraise.

[Ross Driver, Managing Director at Foresight Group]

Yep.

[Ross Driver, Managing Director at Foresight Group]

Okay. That's it.

[Ross Driver, Managing Director at Foresight Group]

We've got it online. We've got it online.

[Toby Virno, Associate Director at Foresight Group]

Yeah.

[Ross Driver, Managing Director at Foresight Group]

I think, can we start with Joe? Can't hear anything at the moment.

[Operator]

We will now start the Q&A on the webinar. If you wish to ask a question, please use the raise hand function at the bottom of your Zoom screen. As a reminder, participants can also submit questions through the webcast page using the ask a question button. We'll take our first question from Joe Pepper at RBC Capital Markets. Please unmute your line and go ahead.

[Joe Pepper, Vice President, Equity Research - Utilities & Renewables at RBC Capital Markets]

Morning, everyone. Thanks a lot for the presentation. Just three from me, if possible, please. Firstly, just on the cash cover. So it looks like a strong start to the year, H125 roughly at 0.67 versus 0.44 this time last year. We're always going to recognize the negative project actual movement and the average due to timing effects, which is a bit of a surprise given the stronger irradiation, but presumably in price and even greater weighting to H2 than expected. I guess my question is, guidance is 1.3 versus 1.4 in the prior year. So just wondering what the moving parts here in terms of net cash generation. Presumably, there's a material cash outflow yet to come in H2, or do you really see 1.3 as a cautious target there?

[Joe Pepper, Vice President, Equity Research - Utilities & Renewables at RBC Capital Markets]

Secondly, just when you mentioned that you're reviewing deliverability on the Australian asset sales, is this really a case of debating payment terms and structure, potential conditions for upgrades you need to do? Is it really just about pricing and it's too much below NAV at the moment and you're waiting for more offers? And then just finally on budget, obviously we've seen the whole sector be impacted by DNO outages this year. Appreciate it's a slightly counterfactual question, but what proportion of the underperformance in that regard do you think is down to the exceptional irradiation we've seen this summer? And what proportion do you think is more structural that we can expect going forward? Obviously, we see the kind of grid composition changing. Thanks.

[Ross Driver, Managing Director at Foresight Group]

Okay, thanks, Joe. Yeah, I think if we just sort of work through those, just put the David here as well at the moment. I think in terms of the cash cover, we've literally been having our board and going through this with the directors. I think the 1.3, the 1.4 from the prior year, and as I was sort of indicating before, we're still benefiting from the roll-off of higher fixed PPAs at the moment, so it's a combination of those alongside the high cash generation theme. It's fair to say that there is a bit of a lag in the timing of the cash receipts as well.

[Toby Virno, Associate Director at Foresight Group]

Yeah, absolutely. But it's not something we would not see otherwise. I think the 1.3 dividend coverage isn't overly prudent. It's very transparent. It's what we expect to land at the end of the year. The cash terms are in line with what we're seeing operationally. That's been covered in the presentation.

[Ross Driver, Managing Director at Foresight Group]

Yeah, and I think we're saying that now as we are best part of nine months through the year, Joe, so it is what you're seeing in project actuals coming through does involve a bit of a cash lag there at the time that we're putting those P&Ls together, getting those turned out, so six weeks ago, it still takes time for that to flow through the structure, and just to sort of add to that, yeah, I do think 1.3 is still good. A major factor of this will be the roll-off of those higher power prices. You can see it on the average power prices if you go to that slide as well.

[Toby Virno, Associate Director at Foresight Group]

Yeah, and I think a more normalized level of dividend cover, particularly for the solar sector, but renewables generally, is below that 1.3x level. If you look at historic dividend cover levels, more like 1.1, I think that'd be much more normal and appropriate for such a stable asset class, so yeah, obviously we've benefited from some great power prices. I see you've benefited from great power prices and greater irradiation, but we are gliding down to more normalized trajectory going forward.

[Ross Driver, Managing Director at Foresight Group]

Yeah, and although I talked about it a little bit there, yeah, let me pick up on the deliverability point around Australia because we did specifically put that in for a reason and because this is still live. It is potentially around other conditions and other factors that are included within some of those bids. The reason putting there is this is not a point of price alone, I think. Although these are not firm bids at the moment, there's still quite a bit to be worked through in the Australian market as well in terms of given the bid there and the bid has to be refined every sort of non-firm bid, all the assumptions that they've made around that. There is also the fact that I would say that the values could be within an acceptable range.

[Ross Driver, Managing Director at Foresight Group]

I would say it is conditions that are being put in there as well and this goes to this point around flexibility, is that we may hold out a little longer to see if there's others that come into that process as well. I think having time to do that and having time to work through these and what conditions buyers may be putting against them is absolutely key but I think the point to make out of that is it is not a question of value alone. It is also a question in the sort of buyer's market of what conditions are coming with these bids as well but we'll just take time to work through to see if it's something that's acceptable not just for us, but we also have a co-shareholder in there as well.

[Joe Pepper, Vice President, Equity Research - Utilities & Renewables at RBC Capital Markets]

Yep. Okay, that's helpful.

[Ross Driver, Managing Director at Foresight Group]

And then in terms of the budget, DNO outages, it has been a very, very sunny year and that's been marked down, particularly in the U.K., by this level of grid outages. We have seen more in the last year than we have in prior years. And I think just go back to that point, it's a little bit difficult to say at the moment. We do, as the management team has visibility through to a few, particularly affecting our portfolio, a few large network outages. There were ones on sort of close to one of our large projects, Sandridge, where also we have the BESS coming online there, and those will now be complete. I think this has been a high year, but we will look at this in terms of our availability going forward as well.

[Toby Virno, Associate Director at Foresight Group]

Yeah. I think, yeah, a couple of points there. So warm year, high production year, for solar and other intermittent generators will have an impact on some grid outages, but also just as you're connecting more and more both distributed generation and intermittent transmission connected generation, those works do trigger outages. So we are in a period of aggressively targeting to build out by 2030, 2035. And so it's probably expected that there's to be seen some slightly higher levels of outage. I think that what we always would point back to is our overall production targets and our performance against those and track record there. And we clearly do have assumptions around levels of asset availability, which includes both asset availability and grid availability. And the balance of our well-diversified operating U.K. portfolio has shown that nine out of 12 years, we're hitting those budgets.

[Toby Virno, Associate Director at Foresight Group]

So important to step back and look at the thing around as well.

[Ross Driver, Managing Director at Foresight Group]

Hope that's helped with those questions, Joe.

[Joe Pepper, Vice President, Equity Research - Utilities & Renewables at RBC Capital Markets]

That's great. Thanks a lot.

[Ross Driver, Managing Director at Foresight Group]

Feel free to reach out if there's anything further.

[Joe Pepper, Vice President, Equity Research - Utilities & Renewables at RBC Capital Markets]

Perfect. Thank you.

[Operator]

We'll take our next question from Colette Ord with Deutsche Numis. Please go ahead and ask your question.

[Colette Ord, Head of Real Assets InvCos Research at Deutsche Numis]

Hi, good morning, everybody. Just a couple of slightly cheeky ones for me as you've covered off most of the sort of financial stuff I had. The comments around the strategic options and specifically transparency and appropriateness of structure have piqued my interest. As you know, transparency is something we talk about often. Can we expect to look forward to, hope for some sort of additional earnings-based sensitivities in addition to the sort of typical NAV-based stuff? What have you got in mind around the transparency piece with regards to the business and on the appropriateness of structure? Could you give a bit more sort of color on thoughts of that? Is it something should we be thinking about internalizations as a potential option, or is it anything and everything in that regard? Just keen to get a bit of color around those two points, please.

[Ross Driver, Managing Director at Foresight Group]

Yeah, no, Colette, not cheeky because we put them in there, so I'm not surprised that you picked up on them, to be honest. With the discussion going, the transparency point is particularly, yeah, you're right, it is about the earnings-based approach and things like that. We've started to put out more metrics that I think a number of you have picked up on. The way that we actually are accounting that we go through at the moment, but that is a key point that we're keen to put out, to put out more financial information there based on earnings targets that would be more in line with sort of operating companies to give that transparency and read across to those of you who look at both sectors as well, not just investment trusts, but others as well. So we will be continuing to look to develop that.

[Ross Driver, Managing Director at Foresight Group]

Colette, I think you're bang on the money there. Look, in terms of the appropriate infrastructure, it has been put in there for a reason, and it is a little bit of everything potentially on the table at the moment. I'm not going to say any one thing, and this is a discussion with the board, with ourselves in terms of trying to think of options. The only thing I'd say is that it could go down any of those in terms of at least the thinking that is being done. I think what we just want, ourselves and the board, is to give a sense to yourselves as investors as well.

[Ross Driver, Managing Director at Foresight Group]

Look, a lot of things are challenging out there at the moment, but this is not a case of us sat there just kicking back in the office saying, "Oh, there's only so much we can actually do here." We've been working for about the last two and a half years to come up with as many options and ideas as we can and a number of projects that we've looked at. Everything is on the table, but I wouldn't say that the structure of the funding itself is a panacea. Say we were to change to an operating company or something similar, that doesn't necessarily just solve the issues of the sector as well. I think we could be looking in terms of those options alongside more strategic moves as well, but we can only say so much on it at the moment.

[Ross Driver, Managing Director at Foresight Group]

But I think it's a message from the board and supported by ourselves, Colette, that everything is on the table and everything is being considered.

[Colette Ord, Head of Real Assets InvCos Research at Deutsche Numis]

Noted. Thank you.

[Ross Driver, Managing Director at Foresight Group]

Hope that helps, and you're always welcome to ask the cheeky ones.

[Colette Ord, Head of Real Assets InvCos Research at Deutsche Numis]

Yeah, I've got a view on that anyway. So that's great. Thank you.

[Ross Driver, Managing Director at Foresight Group]

I'm sure you have. Do we have anyone else online?

[Operator]

There are no further questions on the webinar. So I'll now hand back to management for closing remarks.

[Ross Driver, Managing Director at Foresight Group]

Look, just to wrap things up, and I appreciate we bang on the hour there, that it is that message really about in what are continued challenging markets at the moment that we can continue to push ahead and look for all aspects of value that we can, which will be through the capital recycling program and other more strategic moves that we are looking at in contention there with the board as well. Sort of where we are currently. Yep.

[Toby Virno, Associate Director at Foresight Group]

Okay. Thank you very much everyone for coming.

[Ross Driver, Managing Director at Foresight Group]

Thank you very much.

[Toby Virno, Associate Director at Foresight Group]

Thank you.

[Operator]

Thank you for joining today's call. We're no longer live. Have a nice day.

Participants

Analysts

• Ross Driver, Managing Director at Foresight Group
• Analyst 1
• Analyst 2
• Analyst 3
• Colette Ord, Head of Real Assets InvCos Research at Deutsche Numis
• Joe Pepper, Vice President, Equity Research - Utilities & Renewables at RBC Capital Markets
• Toby Virno, Associate Director at Foresight Group
• Analyst 4
• Analyst 6
• Analyst 5