Foresight Solar H1 2026 Earnings Report

Foresight Solar EPS Results

• Actual EPS: -GBX 0.54
• 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 2026
• Date: 9/23/2026
• Time: Before Market Opens
• Conference Call Date: N/A
• Conference Call Time: N/A

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 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: EBITDA was on budget for the first half despite generation running 5.6% below target, supported by higher power prices and the UK portfolio, which generated 95% of EBITDA.
• Positive Sentiment: Management said contracted revenues are expected to provide approximately 1.0x dividend cover for 2026, with projected full-year cover of 1.1x; the fund also highlighted its 12-year record of paying and growing dividends.
• Positive Sentiment: The independent review found the UK portfolio valuation to be within a reasonable fair-value range, while a UK disposal process has advanced to the preferred-bidder stage. Battery commissioning, asset enhancements and a potential 250MW ready-to-build pipeline provide additional growth and capital-recycling options.
• Negative Sentiment: NAV fell from £545.9 million at December 2025 to £517.9 million at June 2026, driven mainly by lower long-term power-price assumptions, updated forecasts for the removal of the CPS subsidy and higher UK discount rates.
• Negative Sentiment: Historic tax payments reduced liquidity, while the Australian asset-sale process remains difficult because of curtailment and subdued investor interest. Management is also evaluating refinancing primarily to repay the revolving credit facility and reduce costs rather than materially increase leverage.

Presentation

[Operator]

Good morning and welcome to the Foresight Solar Fund Limited half-year results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following polls. I would now like to hand you over to fund lead, Will Morgan. Good morning.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

Good morning, and thank you. Thank you for joining us. My name is Will Morgan, and I am the investment lead for Foresight Solar. I joined Foresight Group in April, so these are the first results I am taking you through. To set the scene, we are pleased with the recent recovery in share price, but we do remain frustrated by the wider market challenges. Our response is to stay focused on Foresight Solar's investment objective and on the factors we control. I will return to that at the end of the presentation to explain how we intend to move forward. For the period, the most important point is that EBITDA was on budget. That is a positive start to the year and one we expect to carry into the second half. Our U.K. weighting has supported this outcome.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

The independent review of the U.K. portfolio valuation has also validated our position and provided further support for enterprise value, which remains stable over the period since year-end. Market conditions in the U.K. are improving. A new disposal process is progressing, and the power market is firmer. I would also like to emphasize the strength of our income proposition. We have met our dividend for the past 12 years and growing it by 2.5% per annum in the process. We have also returned approximately 2/3 of the capital raised, rising to around three-quarters when the share buyback is included. I will now hand over to Toby, who will take you through the operational and financial performance in more detail.

[Toby Virno, Investment Director at Foresight Solar Fund]

Brilliant. Thank you very much, Will, and good morning to everyone online. Toby Virno here, an investment director at Foresight Group and part of the fund management team for Foresight Solar, working closely with Will to deliver the strategy. Before we delve into the detail of the results, we wanted to draw out some of the key developments from the first half of the year. We are not going to talk about every item now, and some are going to come up again later in the presentation. To pick a selection, in terms of portfolio asset highlights, these include the commissioning of Sandridge BESS. That is Foresight Solar's first battery asset. This is an exciting development for the portfolio as it adds a complementary revenue stream to our generation fleet.

[Toby Virno, Investment Director at Foresight Solar Fund]

We also saw the completion of enhancement works at each of Abbeyfields and Pen Y Cae sites, and these are already delivering benefits to the portfolio in terms of yield and increased contribution of cash flow. We will be covering more on the remainder of the phase I of the enhancement program that was announced earlier this year later in this presentation. Turning to valuations and building on the work done for the 2025 annual report, where we adopted an updated independent energy yield assessment for our U.K. portfolio, we have undertaken a further independent review of the U.K. portfolio valuation, as Will mentioned in the highlights section.

[Toby Virno, Investment Director at Foresight Solar Fund]

We reported this to the market as part of the Q2 NAV announcement, and this together with the benchmark market data that we have from live transaction processes, gives us a really high degree of confidence in the portfolio valuation at this time, albeit there remains an uncertain macro backdrop. In terms of market updates, key for the U.K. portfolio is the impending consultation on wholesale CFDs. These are contracts for difference that are expected to offer voluntary participation for mature portfolios of operational ROC-backed assets and potentially providing further contracted revenues in the mid to long term. We will continue to report and update the market as this consultation comes through. The accelerated contracts for difference auction round eight is also progressing in parallel and combined with known outcomes from grid connection queue reform earlier this year.

[Toby Virno, Investment Director at Foresight Solar Fund]

This presents a really attractive pipeline of projects in the U.K. that FSFL can target going forwards. With regards to the international portfolio, there is a bit of a common theme. In the continued rollout of battery storage in Australia, we are seeing increased deployment, and this is meaningfully impacting the levels of observed curtailment in the market, benefiting solar generation assets. In Spain, they are fleshing out the capacity market framework, and this is going to be a key element of the future revenue stack for battery assets. That is significant for our own development pipeline in Spain, where we are bringing through multiple projects in that market. We are now going to move on to the operational performance for the portfolio. Overall, it has been a mixed picture with global generation coming in 5.6% below budget, disappointingly for the first half of the year.

[Toby Virno, Investment Director at Foresight Solar Fund]

As a reminder, this is the period that we are measuring against a higher bar following the rebasing of the U.K. portfolio production targets. As such, we are holding ourselves to a higher standard. Whilst the global irradiance tracked below budget in the spring, explaining much of the underperformance, we have been pleased to see U.K. outperformance in Q2, and this has supported overall portfolio performance. Encouragingly, as we have moved into the second half of the year, and as will be of no surprise to anyone here in the U.K. joining on this call, after the summer we have had, there has been an abundance of sunshine, and that has fed through to increased production. This has been particularly beneficial, given it has coincided with further increases in power prices following the conflict in the Middle East.

[Toby Virno, Investment Director at Foresight Solar Fund]

We have a little bit more on that in a couple of slides' time.

[Toby Virno, Investment Director at Foresight Solar Fund]

If we can turn now to the next slide, please. We are going to touch on financial performance for the period. In spite of production falling below budget, as Will mentioned as part of the highlights, EBITDA was on target for the first half of the year, which is a good result. Higher power prices being captured in the wake of the conflict in the Middle East was a key factor in driving this performance. The financial analysis also highlights the importance of the U.K. portfolio to overall financial returns, contributing 95% of EBITDA in spite of being just 68% generation. We note that whilst overall financial performance has been good, the payment of historic tax liabilities has impacted liquidity in the period, and there is greater disclosure on that within the interim accounts.

[Toby Virno, Investment Director at Foresight Solar Fund]

On to the next slide, and we are going to focus on our revenue structure and forecasting our contracted revenue position for the coming years. By way of reminder, the portfolio benefits from long-term inflation-linked subsidy revenue streams, primarily ROC assets here in the U.K., and these long-term revenues make up about half of our total revenues. The remaining revenues are predominantly electricity sales, and we manage this market exposure through our hedging policy. Foresight Solar's hedging policy is designed to provide a high degree of revenue visibility in the near term to support a stable income offering, whilst maintaining an appropriate level of exposure to the wholesale electricity markets so that we can capture upside volatility when there are supply-side shocks, such as we have seen in the last couple of years.

[Toby Virno, Investment Director at Foresight Solar Fund]

We have continued to lock in attractive hedges for seasons ahead during the first half of 2026, and that activity has continued into the second half of the year. By our estimates, contracted revenues alone will support one times dividend cover for this year, and we have clearly already built a good position going into 2027, as you can see in the chart here with that thick black bar on top of the teal bar within the 2027 column, representing the hedges that have already been locked in and good visibility of contracted revenues going into the next year. By design, we do maintain a level of merchant exposure, and this is written into our hedging policy. This is so that we can capture higher power prices, which is particularly relevant in the current elevated power price environment.

[Toby Virno, Investment Director at Foresight Solar Fund]

We get the figures from actual performance going into H2 of 2026, and in July and August, the outturn wholesale power prices were GBP 107 per megawatt hour and GBP 128 per megawatt hour respectively. We capture the prices during daylight hours only, which will be a portion of this. Nonetheless, the high power price environment is extremely beneficial to generation fleets at the moment. As we go into the winter months with storage levels at about their lowest level in the last six years, including in the year immediately prior to the invasion of Ukraine, there is certainly risk to the upside in terms of power prices as the supply shock continues with production not being able to get to market from the Middle East.

[Toby Virno, Investment Director at Foresight Solar Fund]

Ongoing supply constraints and those low levels of gas storage both indicate potential for further upward pressure and power prices leading into next year, but we will know more as the winter season progresses. Moving now to the next slide, we are going to talk about the gearing position of the fund. The gearing position is broadly similar to prior periods and what we reported as part of the annual results, with overall gearing increasing slightly as a result of falling NAV during this last year. Regular amortization of debt in terms of our long-term portfolio facility debt is still reducing the overall debt quantum, and we are exploring some refinancing activity within the portfolio.

[Toby Virno, Investment Director at Foresight Solar Fund]

This is probably the bit of new information in the accounts in terms of the debt structure, where we consider to have a pretty conservative level of gearing against portions of our portfolio and debt capacity that could potentially be liberated to provide capital to reinvest in accretive initiatives such as the enhancement program or potentially even greenfield investment. In the short term, such refinancing could be used to pay down the RCF, reducing refinancing risk and overall making our debt structure more cost-effective. Terming out a portion of the RCF is a cost-effective and de-risking solution for this short-term facility that remains our only floating rate exposure, in terms of interest rates for the portfolio. That brings us to the end of the operational and financial performance. I am now going to move on to talk about the NAV bridge for the period.

[Toby Virno, Investment Director at Foresight Solar Fund]

In the period, NAV decreased from GBP 545.9 million at December 2025 to GBP 517.9 million as of the 30th of June. Key drivers for this decline were the moderation of long-term power prices and the update of forecasts for the planned removal of CPS from March 2028, as we announced and pre-announced earlier in the year. Approximately offsetting impacts of increasing inflation outlook and increasing discount rates for the U.K. portfolio, driven by increases in the risk-free rate and inflationary impacts of conflict in the Middle East and the impact on energy prices also saw movements in the NAV. Clearly, the macro backdrop remains uncertain, and this is something that we will closely monitor and report back to the market in periods to come. Whilst the NAV declined, the U.K. portfolio has actually been relatively stable.

[Toby Virno, Investment Director at Foresight Solar Fund]

As disclosed in the Q2 NAV announcement, we commissioned the independent review evaluation of the U.K. portfolio, which concluded that our holding value sits within a reasonable range of fair values for the market. Combining this with data points from our live transaction processes, we remain highly confident in the overall valuation of our U.K. portfolio. I am now going to hand back over to Will, who is going to lead you into the strategic overview for Foresight Solar.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

Thank you, Toby. This final section is about how we view the investment objective and how we, as investment manager, contribute to progressing Foresight Solar's mandate. Since joining, I've focused on what we mean in practice by our income and growth proposition. The first requirement is clearly to operate the portfolio well. Portfolio construction matters, particularly our significant U.K. weighting. Meeting the targets we set for each reporting period really is fundamental. We aim to budget prudently and the portfolio has exceeded production targets in nine of the 12 years since inception, which I think proves that is the case. Operating a good portfolio is fundamental, but it is not everything. We must also add value as manager. That includes enhancement and revamping initiatives, together with positioning the portfolio for longer term value creation and value preservation.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

We do that through life extension, including project contracts, grid rights, and planning terms, and through co-location where it might be suitable for our existing assets. Divestment is now fundamental to our proposition. Benchmarking asset values is core to our day-to-day activity, as is renewing and repositioning the portfolio so that it can continue to perform over the longer term. Divestments create the opportunity to recycle capital. Our proprietary development pipeline can contribute to this alongside acquisition opportunities aligned with the investment mandate. The U.K. CFD-backed solar opportunity is a prime example where we are building relevant acquisition pipeline. Where we reinvest, we must also be able to manage assets through construction. Foresight Group has considerable experience in this area. The recent commissioning of our first battery storage asset has also taken operating capacity to approximately 1 GW, an important milestone. Moving on to portfolio enhancement.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

This is a key part of delivering the investment objective. It requires close attention to performance gaps and the initiatives generate immediate benefits for operating cash flow. They are also among the most accretive uses of capital available to us. Our role is to identify the right assets, be selective, de-risk the works, and improve performance in close coordination with contractors and the asset manager. In phase I, we're targeting up to GBP 2.5 million of additional revenue and approximately 14 GWh of incremental generation across those assets. That may not sound large in the context of the whole portfolio and its generation, but it represents a production uplift of more than 10% for those assets. The objective here is to improve yield, preserve value, and extend operating life. Moving to our divestment activities. We're encouraged by recent developments in the U.K. market.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

The process started in the third quarter has moved to preferred bidder stage. Earlier in the year, however, we terminated discussions on a portfolio sale. That was a decision about the bilateral terms and engagement rather than the underlying process or price achieved. In Australia, the market does remain subdued. Our focus is on portfolio performance, a stable financing position, and value add through potential battery co-location. Sentiment is improving and processes are advancing. We aim to provide further updates in due course. Our proprietary development pipeline includes operating assets with co-location potential. Following a detailed review, we have updated the gross pipeline and believe that approximately 250 MW reaching ready to build stage over the medium term is a realistic target. That provides optionality either to invest or to exit. In Spain, the storage market is active and supported policy developments are emerging.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

Hybridization is also central to our approach and we are actively assessing at least six assets in the portfolio on that basis. In parallel, we are considering disposals in the U.K. and Spain to capture investor demand and recycle capital sooner for that pipeline. Lastly, we are also attracted by the U.K. CFD-backed solar market. It is well aligned with Foresight Solar's proposition and offers the potential to build meaningful pipeline. We are looking to deepen existing developer relationships and create new partnerships across the Foresight network to support this. In terms of further strategic options, if we move on. Refinancing is another area of focus. There is scope to capitalize on strong lender appetite for Foresight Solar's portfolio, particularly in the U.K., and we hope to update the market further on that.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

This could support capital recycling, working capital requirements, and debt reduction, particularly in the context of the share buyback undertaken to date. We will continue to test the market for underlying assets across all geographies. We are also focused on demand for the shares. Developments associated with the Pension Schemes Bill and the Mansion House Accord are positive and we have seen evidence of institutional and retail interest on the register. Overall, we are optimistic about these developments in the investment trust sector. We also welcome any further clarity the board can bring following the ongoing shareholder consultation. To conclude, we see the path ahead in three phases. In the short term, the priority is execution. In the medium term, it is about creating the conditions for growth. Over the longer term, it is about realizing the benefits of portfolio renewal and repositioning.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

In terms of the short term, execution means meeting our targets, sustaining the momentum evident going into the third quarter, progressing disposals and refinancing, improving revenue visibility. These actions underpin cash flow and our income proposition. They remain our focus because they are in our control. Creating the conditions for growth means optimizing operations through the enhancement program. A second phase will be a key work stream as phase I is delivered, and we will provide more detail when that is advanced. For a mid-life portfolio, this is an accretive use of free cash flow. The development and acquisition pipelines provide further optionality, and our depth of experience in the U.K. allows us to offer capability across the full life cycle, development, construction, and operations. We expect the divestment program to continue and will reassess its scope as it progresses.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

Capital recycling can improve the duration of contracted income and diversify the revenue mix, including through hybridization and co-location. In the U.K., that can add revenues capable of capturing price spreads as renewable penetration increases. Longer term, this renewal focuses on opportunities in our core market and on deepening relationships with development and investment partners. But above all, we remain committed to achieving the best outcome for all shareholders. That concludes the presentation, and now we will move on to Q&A.

[Toby Virno, Investment Director at Foresight Solar Fund]

Thanks, Will. We've had some questions come through during the discussion, and there were a couple of pre-submitted questions as well that we can touch on, albeit some has been covered off, so hopefully that is satisfied. The first question that's come through is to ask, how are we going to fund the addition of batteries to the Spanish solar panel assets? I think at the same time, we can touch on funding for the enhancement program more generally that has been pre-announced. We have a very clear capital allocation policy at a time when capital is clearly constrained, and that is expected to be divided between paying down debt and selective investment into the portfolio.

[Toby Virno, Investment Director at Foresight Solar Fund]

We have presented as part of that early disclosure of the enhancement program that there are some really attractive opportunities to deploy capital to support better production of the portfolio. Some of that includes partial or full repowerings here in the U.K., particularly where we've benefited from successful warranty claims, if there have been a limited number of issues with key components. But also in that bucket is the hybridization case for some of our international portfolio assets, where we do see significant opportunity to mitigate curtailment that is being seen widely across the Spanish markets. By way of reminder, we already benefit from very attractive terms under the PPAs that were struck for our Spanish portfolio.

[Toby Virno, Investment Director at Foresight Solar Fund]

As much as anything, this strategy to explore hybridization is future-proofing for when those PPAs expire, and we're either looking to renew with new PPAs or engaging in a more merchant trading strategy. No decisions have been taken yet, but we will continue to assess all investment opportunities and capital allocations against that capital allocation policy and work proactively with the board as we do so.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

As Toby says, it's about future-proofing. It's making those assets either more resilient or more saleable. All options remain available to us. Did you want to touch on the questions around the Australian assets, Toby?

[Toby Virno, Investment Director at Foresight Solar Fund]

Certainly happy to do so. We recognize that it's probably quite frustrating for shareholders. A process that was launched some time ago has been yet to yield a successful outcome. We do share that frustration. To provide some greater context here, the Australian market has been extremely challenging for a number of years, key challenges being curtailment in the market. That's a mix of both economic curtailment, so when prices are low, solar farms being forced to curtail. That arises from a mix of coal generation in the market continuing to be active much longer than originally expected, but also the proliferation of domestic rooftop solar. It's when the sun is shining, the grid operators cannot dial down those domestic installations. Similarly, the base load from coal is not dialed down quickly.

[Toby Virno, Investment Director at Foresight Solar Fund]

It's the distributed connected generators such as our solar farms that get squeezed in the middle when there's an excess of generation on the grid. There are also asset-specific technical curtailment issues, where fragile parts of the grid force curtailment under the controls in place with the grid operator. That, again, is a prominent feature in the Australian market. Both of these factors have given investors pause for thought to see how that situation evolves and has meant that there has been more limited interest. However, we continue to work with the local team, Foresight having a strong office down in Australia.

[Toby Virno, Investment Director at Foresight Solar Fund]

Over 60 people between Melbourne and Sydney that are supporting the process, as well as working with local financial advisors to test appetite for this going forwards. Part of enhancing the portfolio and protecting value is similarly exploring the development of batteries alongside those assets, which could help support the case for mitigating curtailment going forwards.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

I think we also have questions on the impact of any refinancing activity and whether we see that increasing overall leverage or borrowings. I don't believe there's any intention here to increase. In fact, any gearing impact recently has been more a consequence of the NAV coming down or the overall enterprise value, I should say, coming down and that impacting the gearing ratio modestly. What we're aiming for with ongoing activities is simply to re-profile, to adjust for expected future performance and dividend cover rather than an overall increase. Recognizing that we are amortizing the existing borrowing as it is. We're not a vehicle with a high percentage of non-amortizing. Three quarters of our overall borrowings more or less is amortizing. So in a given year, that is decreasing in any case. Is there anything else you want to say to that, Toby?

[Toby Virno, Investment Director at Foresight Solar Fund]

Just to add, the fund has a very strict gearing limit in its investment policy of 50% with a target to maintain long-term debt before 40%. We are currently very comfortably below both those levels. While I talked about the additional debt capacity in the portfolio that could allow us to release some capital to pay down the RCF, I want to emphasize that this would only be quite modest in terms of scale, as clearly we want to prioritize the ongoing service of dividends and the income offering that we have. It is not pragmatic to talk about material increases in gearing strategy in that context. Certainly not looking to adjust or come close to those gearing limits. The first allocation of capital would be to pay down the RCF, which would actually be a net neutral gearing position.

[Toby Virno, Investment Director at Foresight Solar Fund]

If thereafter the additional liquidity we have from the RCF could be applied to potential new investments, naturally resulting in an increase of gearing, that is a separate capital allocation decision that would be taken at that time and would be based on the merits of that further investment. The initial strategy is to appropriately structure the debt structure, so turning out a portion of the RCF, increasing overall cost effectiveness, and better aligning the fund's liabilities with its asset profile. Hopefully that covers that question that has come through.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

In terms of

[Toby Virno, Investment Director at Foresight Solar Fund]

Looking now to Oh, go ahead

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

Next question, do you want to cover the point around tax briefly, Toby?

[Toby Virno, Investment Director at Foresight Solar Fund]

Certainly. Happy to do so. There has been some further disclosure following the tax adjustments that were disclosed in Q3 and Q4. From our perspective, this is not a new impact of the tax. This is playing through the settlement of historic taxes within the period. What both board and manager have been very keen to make absolutely clear through the materials is the gradual settlement of the historic tax liabilities that were identified and disclosed to the market in Q3 and Q4. I refer you to the relevant sections of the interim report where we disclose the amounts that have already been settled this year and those that remain for the remainder of the year.

[Toby Virno, Investment Director at Foresight Solar Fund]

We also do go on to emphasize the expectation that the dividend will be met in full for the year, in line with previous forecasts and commentary on how extraordinary payments are treated as part of dividend cover calculations. There is a comment also around interest and penalties. Where there is late payment, there are by default interest and penalties that can accrue. As we have commented in the interim accounts, by virtue of the context of this discussion and engagement with HMRC we are contesting a number of the interest and penalties that would otherwise apply by default. As such, there is uncertainty on the outcome of this position, and we will report back when that is clear in the future.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

I think it is fair to say, the approach we are taking is aiming to be transparent and report on a prudent basis as advised. Clearly we are relying on tax expertise for managing through that, but the issue is something we have been able to quantify and address and will continue to resolve. In terms of other themes being raised, we are being asked to comment on the current discount to NAV and how that has persisted. Clearly the interim statement is clear, including through the chair's statement, that we are frustrated by that. That is, I would say, the main reason for the chair starting a consultation with shareholders where we will be considering all options. There is no end game with that. It is about providing feedback, which everyone is welcome to do through the correct mediums.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

In terms of external market forces and the situation in the investment trust space, we are pleased with how share price has recovered this year. Clearly would like to see that continue, but a discount remains and that gap between where we see overall enterprise value and NAV and where the shares price is something we will need to work on progressively. I do not believe it is something we solve with one action or initiative, but clearly progress on divestment helps to benchmark where we are at, as well as independent review, which is something we will continue to consider. Ultimately, we hope to see sustained recovery as some of our peers have and as we have experienced in reasonable order, certainly better than others. Some of that is helped by market activity.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

That is not certainly the solution, nor should it be assumed that it can be replicated in all cases.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

One to monitor, one to work on and hopefully increase demand from other sources is another aspect that can support the current share price versus NAV. In terms of dividend cover, I think we are also being asked how much guidance we can give on that. Our projected dividend cover is 1.1. We are confident with achieving that, especially given direction of travel moving into the second half of this year. We do need to consider how we sustain dividends, where we are selling and where value is being placed for the whole portfolio. There is no intention at the moment to move away from our investment objective, i.e., to provide both an income and growth proposition. How we balance that is what we are asking ourselves, and we hope to provide further information on that as we move towards our year end.

[Toby Virno, Investment Director at Foresight Solar Fund]

I can see one final question that has come through on engagement with government across various initiatives. We have noted throughout the presentation, close engagement that we have with consultation processes, and it remains the case that areas relevant to our operations, we continue to engage with government primarily through industry bodies, but also directly. We leverage Foresight Group's wider network and influence here to benefit Foresight Solar.

[Operator]

That is great, guys. Thank you very much indeed for addressing those questions for investors today. Will, before I redirect investors to provide you with their feedback, which I know is particularly important to yourself and the company, could I please just ask you for a few closing comments? Thank you.

[Will Morgan, Managing Director and Fund Lead for Foresight Solar at Foresight Solar Fund]

Thank you, and genuinely thank you for joining and for listening and for asking your questions, which are all understood. We recognize that performance can improve, and we want to see that improvement, and we will continue to be working towards that aim with our board. We very much hope we continue to have the support of the majority of our shareholders in doing so. If you want to reach out offline, then our investor relations team are always available to respond. Thank you very much.

[Operator]

Fantastic. Thank you once again for updating investors today. Could I please ask investors not to close this session, as you will now be automatically redirected to provide your feedback which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good morning to all.

Participants

Executives

• Will Morgan, Managing Director and Fund Lead for Foresight Solar
• Toby Virno, Investment Director