 I deal with trust quite a lot and the accounts I've seen are clearer than here. HFEL's dividend is covered by cashflow and it has growing revenue reserves to pay the dividend in harder times. Where the cashflow comes from is open to question - 15% of dividend is options writing which has always been one of their things to boost income. The rest of the income seems to be enhanced above natural market levels by high investment turnover - possibly scalping dividends. But they've paid a large and rising dividend for a long time. For me HFEL still has questions about where the cash comes from but accounts show where it comes from clearer than here.
VOF is different as it's not really an income play so its all down to investment choices for capital growth. I think they've made a mistake or two that they've gone overweight with but it happens from time to time in many trusts. I've not lost anything there but I think the last 6 months might have been better. The general market outlook there looks excellent so I hope it's just a short period of underperformance.
Cashflow and lack of earnings reserves here made me feel nervous enough to sell. It was not a big holding but I've made a moderate loss I'm treating it as a mistake. I hope I'm wrong and you all do okay. |
If you don’t like “opaque” accounting then trusts aren’t really your thing. They are all complex in accounting terms.
o/t I’m still trying to work out why HFEL is inscrutable - I note you post a fair bit over there and on VOF. |
Right. That's me out. I'm struggling to remember why I bought in the first place from looking at the accounts. In my experience, opaque accounting is usually because they do not want you to know what's really going on. Operating cashflow only covers half the dividend. NAV is falling. Retained earnings don't look enough to cover the dividend so a balance sheet restructuring might be needed to continue paying out. I could be wrong. Maybe they make money developing and selling rather than running but was looking for the latter. I just like to sleep at night and accounting I see here leaves me wondering. It might be all legit but why don't they make it clearer to understand if so? Good luck to those holding. |
Is the dividend paid in two instalments or quarterly?
Thanks |
https://media.umbraco.io/foresight/xvvjsx1o/foresight-solar-annual-report-2024.pdf |
Thanks, DrBio. I was under the stupidly mistaken assumption that reports would be in Reports amd Publications! It seems to be under Latest Report on a different page.
Not here
Here |
hxxps://media.umbraco.io/foresight/xvvjsx1o/foresight-solar-annual-report-2024.pdf
It’s in the 2024 docs.. |
Shareprice at a 27% discount to NAV per share and the yield is just under 10%. |
Anybody got a link to the annual report? I've been to the website and national storage mechanism and only found the same summary page as on here. I've NEVER before had results where I could not find the results before the market opened. Hopefully, it's just me overlooking something simple?. |
Acquirers, or acquirees I wonder, but clearly going on as we speak. Can only think NESF or BSIF (which has been perky), unless "sector" means renewables in general. Could be an argument for combining eg solar & wind (UKW).
I can hang around 12 months, with that divi rolling in. |
Interesting:
"The Board is of the view that consolidation is likely to be a major feature in the sector in the year ahead. Directors are fully aware of the benefits that successful consolidation can deliver to Shareholders, and this forms a critical part of the ongoing strategic considerations." |
Ironic that 84p is from Foresight Group LLP (on behalf of funds managed by...). |
HEIT look like will get a cash offer at least 84p, significantly above recent share price, so that will be helpful evidence of undervalued renewables. |
A bit of a recent upswing on all solar and renewable energy stocks. 👍 |
Thanks @rambutan2, all very interesting - one of the few (other than GASC at SEIT) with a stake being acquired, rather than endlessly sold down. |
Here we go, and they do do UK solar:
"Investing in solar assets in the UK – a mature technology and fragmented market, with opportunities for consolidation" |
Schroders (& the rest) tend to be perma-sellers on everything due to the years of redemptions. Makes it a very interesting move if they've gone from zero. |
Schroders appear to have picked up a 10% stake from somewhere. Can't see that they previously held a notifiable position. Blackrock were holding 10%, so perhaps that's where they've got them from. In any case, the culprit should be revealed via RNS in the next few days. |
The article from post 478 :- |
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