Premier Miton Global Renewables Trust Plc - Half-year Report

Premier Miton Global Renewables Trust Plc - Half-year Report

PR Newswire

LONDON, United Kingdom, August 01

01 August 2024

 

Premier Miton Global Renewables Trust Plc (the `Company')

 

Legal Entity Identifier: 2138004SR19RBRGX6T68

 

Premier Miton Global Renewables Trust PLC's half report and accounts for the six months to 30 June 2024 is available at https://www.globalrenewablestrust.com/documents/.

 

It has also been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and is available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

 

PREMIER MITON GLOBAL RENEWABLES TRUST PLC

 

Half Year Report

for the six months to 30 June 2024

 

INVESTMENT OBJECTIVES

 

The investment objectives of the Premier Miton Global Renewables Trust PLC are to achieve a high income from, and to realise long-term growth in the capital value of its portfolio. The Company seeks to achieve these objectives by investing principally in the equity and equity-related securities of companies operating primarily in the renewable energy sector, as well as other sustainable infrastructure investments.

 

GREEN ECONOMY - LONDON STOCK EXCHANGE

In January 2021, the Company received London Stock Exchange's Green Economy Mark, a classification which is awarded to companies and funds that are driving the global green economy. To qualify for the Green Economy Mark, companies and funds must generate 50% or more of their total annual revenues from products and services that contribute to the global green economy.

PRI - PRINCIPLES FOR RESPONSIBLE INVESTMENT

The Fund Manager integrates Governance and Social responsibility into its investment process. Premier Miton is a signatory to the Principles for Responsible Investment, an organisation which encourages and supports its signatories to incorporate environmental, social, and governance factors into their investment and ownership decisions.

FE FUNDINFO - CROWN FUND RATING - 4 STARS

The Crown Fund Rating is a global quantitative rating that is based on a fund's historical performance relative to an appropriate benchmark. The rating relies on three key measurements - alpha, volatility and consistent performance, to dictate the one-to-five Crown score. The ratings are designed to help investors distinguish funds that have superior performance in terms of stock picking, consistency and risk control.

 

 

COMPANY HIGHLIGHTS

for the six months to 30 June 2024

 

TOTAL RETURN PERFORMANCE
	Six months to	Year ended
	30 June	31 December
	2024	2023
Total Assets Total Return[1]	(8.6%)	(7.5%)
S&P Global Clean Energy Index (GBP)[2]	(12.7%)	(20.1%)
Ongoing charges[3]	2.05%	1.81%

 

ORDINARY SHARE RETURNS
	Six months to	Year ended
	30 June	31 December
	2024	2023	% change
Net Asset Value per Ordinary Share (cum income)[4]	120.28p	146.86p	(18.1%)
Mid-market price per Ordinary Share	105.00p	118.50p	(11.4%)
Discount to Net Asset Value	(12.7%)	(19.3%)
Net Asset Value Total Return[5]	(18.1%)	(13.5%)
Share Price Total Return[2]	(8.0%)	(19.2%)

 

RETURNS AND DIVIDENDS
	Six months to	Six months to
	30 June	30 June
	2024	2023	% change
Revenue Return per Ordinary Share	4.46p	4.43p	0.7%
Net Dividends declared per Ordinary Share	4.00p	3.70p	8.1%

 

HISTORIC FULL YEAR DIVIDENDS
	31 December	31 December
Dividends paid in respect of the year to:	2023	2022	% change
Dividend	7.40p	7.00p	5.7%

 

ZERO DIVIDEND PREFERENCE SHARE RETURNS
	Six months to	Year ended
	30 June	31 December
	2024	2023	% change
Net Asset Value per Zero Dividend Preference Share(4)	119.11p	116.24p	2.5%
Mid-market price per Zero Dividend Preference Share(2)	115.00p	110.00p	4.5%
Discount to Net Asset Value	(3.4%)	(5.4%)

 

HURDLE RATES (PER ANNUM)
	As at	As at
	30 June	31 December
	2024	2023
Ordinary Shares
Hurdle rate to return the 30 June 2024 share price of 105.00p (December 2023: 118.50p) at 28 November 2025[6]	(2.4%)	(3.9%)
Zero Dividend Preference Shares
Hurdle rate to return the redemption share price for the 2025 ZDPs of 127.6111p at 28 November 2025[7]	(41.1%)	(35.9%)

 

BALANCE SHEET
	Six months to	Year ended
	30 June	31 December
	2024	2023	% change*
Gross Assets less Current Liabilities (excluding Zero Dividend Preference Shares)	£38.9m	£43.3m	(10.3%)
Zero Dividend Preference Shares	(£16.9m)	(£16.5m)	2.5%
Equity Shareholders' Funds	£21.9m	£26.8m	(18.1%)
Gearing on Ordinary Shares[8]	77.2%	61.7%
Zero Dividend Preference Share Cover (non-cumulative)[9]	2.03x	2.26x

 

1 Source: Premier Fund Managers Ltd ("PFM Ltd"). Based on opening and closing total assets plus dividends marked "ex-dividend" within the period.

2 Source: Bloomberg.

3 Ongoing charges have been based on the Company's management fees and other operating expenses as a percentage of gross assets less current liabilities over the period (excluding ZDPs' accrued capital entitlement).

4 Articles of Association basis.

5 Source: PFM Ltd. Based on opening and closing NAVs plus dividends marked "ex-dividend".

6 Source: PFM Ltd. The Ordinary Shares Hurdle Rate is the compound rate of growth of the total assets required each year to meet the Ordinary Share price at 30 June 2024.

7 Source: PFM Ltd. The ZDP Shares Hurdle Rate is the compound rate that the total assets could decline each year until the predetermined redemption date, for ZDP shareholders still to receive the redemption entitlement.

8 Source: PFM Ltd. Based on Zero Dividend Preference Shares divided by Ordinary Shareholders' Equity at end of each period.

9 Source PFM Ltd. Non-cumulative cover = Gross assets at period end divided by final repayment of ZDP Shares plus management fees charged to capital.

* % change is calculated on actual figures, and may be different from that which could be obtained by using rounded figures shown within this section.

 

 

CHAIR'S STATEMENT

for the six months to 30 June 2024

 

Introduction

Your Company's performance in the first half of 2024 was again disappointing, as renewable energy remained out of favour in markets world-wide. With apologies for repeating what I have already said in previous reports, your Board believes this to be almost entirely a consequence of a macro-economic environment which markets perceive to be negative for renewable energy investment.

 

Coming into the year, it was widely expected that inflation would soon begin to moderate, allowing for central banks to ease monetary policy by reducing interest rates. However, in key western markets at least, inflation has proved to be "stickier" than expected, with expectations of material rate cuts being pushed back toward the end of 2024, and at a more gradual pace than originally anticipated.

 

Despite lacklustre share prices, the portfolio has continued to perform well operationally, as detailed in the Manager's report. Corporate activity within the sector is picking up slightly, indicating that some private buyers are willing to pay more for renewable energy assets than public markets, - a positive signal.

 

The first half of the year has, however, seen an uptick in political risk. Recent elections in Europe have indicated a general swing to the right. Unfortunately, many of the parties gaining in popularity profess to be sceptical of both clean energy and also climate change more generally, and this could have potentially negative consequences in the longer term should this trend continue.

 

The UK general election in early July, resulted in a new Labour Government. We are not expecting any fundamental policy changes regarding renewable energy to result from this, although there could possibly be some planning reforms which may prove to be positive in the longer term.

 

November will see a presidential election in the United States. At the time of writing, Donald Trump is the marginal favourite to regain the presidency for the Republican Party. Although the finer points of policy are yet to be fleshed out, Mr. Trump has, again, been vocal in his scepticism toward the energy transition.

 

We believe the risks of an adverse US political environment to be lower than perhaps perceived by the market, not least since the majority of US government spending and tax incentives toward clean energy are directed at Republican leaning states. Furthermore, the days of direct subsidy are behind us, and renewable energy is exceptionally cost competitive in the US; renewable power being transacted between willing buyers and sellers at market prices, with little to no government interference. Demand for clean power from technology companies is high and growing strongly.

 

Performance

Your Company's total assets total return, measuring the performance of the portfolio including costs, was negative 8.6%. While undoubtedly disappointing, this was an out-performance of the Trust's performance comparator, the S&P Global Clean Energy Index, which recorded a negative total return, in sterling, of 12.7%.

 

Renewable energy and clean technology again lagged wider equity markets, which were in positive territory in the first half of 2024. The US market recorded the strongest performance, with a mid-teens return in sterling, European and Asian markets generally seeing high single digit positive returns.

 

Given your Company's geared capital structure, movements in gross assets are amplified in the net assets. The net asset value ("NAV") total return was negative 18.1%.

 

Pleasingly, and despite the difficult environment, the discount at which your Company's shares trade compared to their NAV, fell from 19.3% at the end of 2023, to 12.7% at June 2024. As such, the share price total return was better than the NAV total return, at negative 8.0%.

 

Review of the six months

Undoubtedly, the main headwind facing the Trust is the interest rate environment. Markets perceive the earnings of renewable energy companies to be relatively fixed, or "bond-like", and as such, the sector has fallen as yields have increased.

 

However, this ignores the good underlying earnings momentum enjoyed by the sector, from a combination of outright growth coupled with attractive investment returns. Your Board shares shareholders' frustration at strong fundamental performance and attractive prospects being met with weak share prices.

 

Key commodity prices, such as gas and electricity, were relatively firm over the six months, with weakness in the first quarter followed by a recovery and stabilisation in the second. European gas and electricity prices remain at relatively high levels historically and sit in something of a "sweet-spot" for renewable energy, being high enough to provide good returns to renewable generators, while not being so high that economic activity is severely curtailed, with consequent political risk or windfall taxes.

 

We believe that the sector also provides opportunities outside of core renewable energy generation. Indeed, the portfolio's best performing holding over the period was offshore wind turbine installation vessel owner, Cadeler. The Manager believes there to be a shortage of vessels capable of installing the new generation of large offshore wind turbines. One of Cadeler's vessels is pictured on the cover of this report.

 

Earnings and Dividends

Income generation has remained healthy, with a modest increase in net revenue earnings to 4.46p per share over the first half of the year. In April the Board declared a first interim dividend of 2.00p per share, paid at the end of June, representing an increase of 8.1% on the prior quarterly dividend level of 1.85p per share. This brings the quarterly dividend more into line with net revenue earnings, following the strong earnings growth seen in the 2023 financial year.

 

The Board has now declared a second interim dividend of 2.00p per share, to be paid on 30 September 2024 and will be marked ex-dividend on 29 August 2024.

 

Outlook

The renewable and clean energy sector has experienced a sustained period of under-performance, as a result of which the Trust's portfolio trades at a valuation level which could objectively be said to not represent fundamental value. Investment companies held within the portfolio are trading at steep discounts to NAV, and renewable energy developers tend to be valued based on existing assets with little to no value given for projects in construction or development.

 

In contrast to share prices, the underlying investee companies within the portfolio are generally trading well, reporting higher earnings, and paying attractive dividends. Growth expectations for global renewable energy are being continually upgraded, and several holdings have commented that returns on investment, over and above their cost of capital, have increased. This is not a sector in distress.

 

I believe that investor patience will eventually be rewarded. In the meantime, the sector should remain a relatively reliable source of income, with the prospect of long-term income growth.

 

Gillian Nott OBE

Chair

1 August 2024

 

 

INVESTMENT MANAGER'S REPORT

for the six months to 30 June 2024

 

Market review

The first half of 2024 has proved to be another tough period for renewable energy investment, which was a surprise as the underlying trading environment was relatively benign.

 

The market has reassessed both the timing and pace of the current interest rate cycle, pushing back the date at which the major western central banks will begin to ease monetary policy. High levels of government spending, wage pressures, and residual liquidity from Covid stimulus programmes have combined to keep core inflation high, despite headline inflation easing somewhat as energy prices moderated.

 

The performance of renewable energy companies has been highly correlated to interest rate expectations, with fundamental company performance being relegated to a secondary factor. This has however, had positive implications for company valuations as earnings have continued to grow in many holdings even while share prices have fallen.

 

The operational environment has become increasingly positive as the half year progressed. Gas and electricity prices fell over the first few months of the year, before strengthening again over the second quarter. The market price of European carbon permits followed a similar pattern. Capital costs for new renewable energy projects have stabilised, although with continued downward pressure on solar costs due to over-capacity in the supply chain. Several holdings made positive comments about the availability of attractive returns on new investment.

 

An emerging positive trend is the outlook for power demand from data centres, and in particular from artificial intelligence. Within the portfolio, several companies have announced sales contracts with technology companies and data centre operators.

There were no material currency headwinds during the first half of the year, the value of the Pound holding relatively steady over the period. It declined marginally against the US Dollar, but gained against the Euro. The portfolio was unhedged against currency movements over the period.

 

Portfolio review

Most portfolio holdings lost value during the first half of the year, with some exceptions, despite often encouraging financial results and underlying business growth.

 

We have made only modest changes to the portfolio, both in terms of geographical allocation and by sub-sector. Investment activity was relatively low, with purchases of £3.5m and sales of £2.8m.

 

Two companies held at December 2023 were sold during the period. Firstly, the remaining Chinese investment, China Suntien Green Energy as a result of a decision to remove the residual Chinese exposure from the portfolio, and secondly, Portuguese based renewables developer Greenvolt, which was sold into an offer for the company.

 

Two new companies have been added into the portfolio. VH Global Sustainable Energy Opportunities is an investment company with a global portfolio including Brazilian hydro assets, Australian solar assets, and UK flexible gas fired generation including carbon capture. It benefits from being highly contracted with low debt, and like the rest of the sector, trades at an attractive discount to NAV. Clean Energy Fuels is a US producer and retailer of renewable natural gas, mainly produced from digestion of agricultural waste, being chemically identical to natural gas, for use in the road transportation sector, principally HGVs.

 

As in prior years, we categorise core renewable generation companies into two groups. Firstly, the investment companies, often referred to as yield companies or "yieldcos", which usually acquire built, or construction-ready, assets paying out the majority of cash-flow to investors, and raising capital through new equity. Secondly, integrated development companies, which develop projects from first inception, retaining some assets and raising capital through a combination of retained earnings and project sales. Together, these form approximately 70% of the portfolio.

 

Yieldcos & Funds

Renewable energy investment companies performed relatively poorly in the first half of the year, with share prices showing a degree of correlation to bonds and movements in market interest rates/yields.

 

Of the larger UK holdings, Greencoat UK Wind, NextEnergy Solar Fund, and Octopus Renewables Infrastructure, saw share price declines of 12.9%, 12.0%, and 20.0% respectively. These falls mainly occurred during the first couple of months of the year and could be attributed to a combination of a falling electricity price and higher than expected inflation. Disappointingly, share prices largely failed to respond positively to the recovery in energy prices seen in the second quarter. First quarter reported NAVs showed low-single digit declines, much less than share price movements, with the result that share price discounts to NAV increased over the period.

 

Despite recent poor performance, we believe the UK listed renewable energy investment companies remain attractive investments. Discounts to NAVs are at high levels, and at June 2024 ranged from 17.5% for Greencoat UK Wind to above 30% for Aquila European Renewables and Octopus Renewable Infrastructure. Dividend yields remain high, typically between 7.5% and 10.0%, with dividends being well covered by cash flows. Several companies are buying back shares, both absorbing excess supply and providing a modest boost to NAV per share in the process.

 

In addition, some companies have sold assets to both "prove" the NAV and raise cash to repay short term floating rate borrowings. Where companies have sold assets, these have been transacted at a premium to NAV, with Octopus having done particularly well in this regard.

 

US listed investment companies recorded a more mixed performance. Atlantica Sustainable Infrastructure's share price increased by 2.1%, with its largest shareholder (at 42%) Algonquin Power & Utilities, in May agreeing to sell its stake into a takeover offer for the company from a private buyer. Clearway Energy's shares fell by 11.4% reflecting the difficult interest rate environment and heightened perceptions of political risk.

 

PORTFOLIO SECTOR ALLOCATION

 

	30 June 2024	31 December 2023
Yieldcos & funds	38.6%	40.7%
Renewable energy developers	30.9%	33.7%
Renewable focussed utilities	8.6%	7.8%
Energy storage	6.2%	5.9%
Biomass generation and production	4.9%	5.1%
Renewable technology and service	4.5%	2.0%
Electricity networks	3.3%	2.8%
Renewable financing and energy efficiency	2.8%	2.0%
Waste to energy	0.2%	0.0%

 

Source: PFM Ltd

 

 

Renewable Energy Developers

The portfolio contains a larger number of investments in renewable development companies than yieldcos, although the average investment size is smaller. Renewable energy developers recorded a decidedly mixed market performance during the first half of the year.

 

Concentrating on the larger holdings, Norwegian listed Bonheur, the holding company for Fred Olsen Renewables, was a 5.1% position at the end of June. In addition to its core renewable energy business, Bonheur also owns a wind turbine installation vessel business (Fred Olsen Windcarrier) and a cruise line (Fred Olsen Cruises). 2023 saw a fall in profitability of the renewables business, not unexpected given exceptional results recorded for 2022, but strongly improved results in vessels and cruise. Overall, 2023 earnings attributable to shareholders grew by 2.6x, with the company increasing its dividend by 20%. Despite these results, its share price fell slightly over the period.

 

Spain listed Grenergy Renovables, a global solar developer and operator, is currently constructing what we believe to be the world's largest solar plus battery storage project, in Chile. The company has managed to pre-contract much of the output to be generated, and with downward pressure on solar costs, the project looks set to be highly accretive to future earnings. 2023 financial results were strong, the company managing to grow net income fivefold with EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) more than doubling. Like Bonheur however, its share price fell slightly over the first half of the year.

 

RWE's share price performance over the period was very disappointing. The company reported excellent results for 2023, but indicated lower earnings were expected in 2024. This should not have been a shock to the market as recent results have been buoyed by "artificially" high gas and electricity prices, but RWE's shares declined by 22.4% over the first half of the year in response. However, better than expected results so far in 2024 indicate that the company's 2024 earnings guidance could be too conservative, so we would not be surprised to see upgrades in the second half of the year.

 

PORTFOLIO GEOGRAPHIC ALLOCATION

 

	June 2024	December 2023
United Kingdom	32.3%	35.5%
Europe (excluding UK)	32.1%	33.8%
Global	19.2%	14.7%
North America	13.0%	11.5%
Latin America	3.5%	3.2%
China	0.0%	1.4%

 

Source: PFM Ltd

 

Other sectors

Entering the 10 largest investments for the first time is offshore turbine installation vessel owner, Cadeler (included within the Renewable Technology and Service segment). Cadeler currently has four operational vessels, with a further seven to be delivered between 2024 and 2027. This will make it, by some distance, the largest player in the sector. It has continued to win contracts, utilising both existing and to be delivered vessels, at very encouraging rates, indicating the tightness of demand and supply. Cadeler's share price increased by 43.6% in the six months to June.

 

One result of the high level of renewable energy investment is an increased requirement for investment in utility networks. SSE's regulated utility business is a key beneficiary, and it is now one of the fastest growing utilities in Europe, with the company expecting the regulatory value of its networks to increase by over 15% per year out to 2027. In addition, it is aiming to more than double its renewable energy capacity from 2022 to 2027. SSE's share price fell by 3.6% in the first half of the year.

 

National Grid conducted a £7 billion rights issue over the period, to help fund its planned £60 billion of capital expenditure over 2025 to 2029. The Trust supported the issue and exercised its rights. Grid's share price fell by 10.1% over the first half of the year, largely due to the hopefully short-term impact of its share issue.

 

Biomass producer and generator, Drax Group, had a positive six months. The UK government consulted on a potential transitional mechanism to remunerate power generation at the Drax power station beyond the expiry of existing arrangements in 2027, pre the start of carbon capture at the plant expected in the early 2030s. We believe that an agreement between the company and the new government is likely, possibly late this year or early next. Drax's share price increased marginally in the period.

 

Finally, the energy storage companies had a difficult period of trading, with lower power prices early in the year and a lack of market volatility combining to reduce the earnings capability of UK batteries. Over the six-month period Gore Street Energy Storage Fund's share price fell by 27.6%, with Gresham House Energy Storage Fund falling by 35.5% and Harmony Energy Income Trust by 31.8%. We believe that Gore Street's share price has over-reacted as it is internationally diversified with its non-UK assets performing well, while Gresham and Harmony are both UK focussed. This is illustrated by Gore Street retaining its dividend, while Gresham and Harmony have suspended theirs. The second quarter saw an improvement in profitability of UK energy storage assets, and we expect share prices may recover some ground as this continues in the second half of the year.

 

Income

Net revenue earnings were relatively consistent with the first half of 2023. Lower dividends from energy storage companies (detailed above), and a higher weighting to non-dividend paying companies, were offset by net dividend increases across the rest of the portfolio.

 

Some dividend cuts were also seen in a small number of European generators that pay out a fixed percentage of earnings, given these companies had paid large dividends in 2023 in respect of their 2022 financial years, when earnings had been inflated by unusually high-power prices.

 

Outlook

We hope to see the beginning of long-awaited monetary easing in the second half of 2024. Given that higher rates have had a very negative impact on sector valuations, we believe it reasonable to hope that the opposite is also true.

 

Irrespective of interest rate driven market sentiment, the sector is continuing to invest and grow earnings. The current commodity price environment is relatively benign which may reduce the earnings volatility seen in some companies in recent years. A period where earnings growth is more reflective of underlying business growth, rather than commodity price movements, would be welcome.

 

We have recently seen a step-up in demand for renewably generated power from technology companies and data-centres. Long term technology trends such as the use of artificial intelligence, are likely to lead to higher electricity demand in future. It is also illustrative of the fact that large corporate power buyers are increasingly prioritising the purchase of renewably generated electricity over that generated from fossil fuels.

 

James Smith

Premier Fund Managers Limited

1 August 2024

 

 

INVESTMENT PORTFOLIO

at 30 June 2024

 

Company	Activity	Country	Value £000	% of total investments	Ranking June 2024	Ranking December 2023
Greencoat UK Wind	Yieldcos and Investment Companies	United Kingdom	2,772	7.2	1	1
NextEnergy Solar Fund	Yieldcos and Investment Companies	United Kingdom	2,511	6.6	2	2
Clearway Energy `A'	Yieldcos and Investment Companies	North America	2,507	6.6	3	3
Octopus Renewable Infrastructure	Yieldcos and Investment Companies	Europe (ex. UK)	2,013	5.3	4	4
Bonheur	Renewable energy developers	Europe (ex. UK)	1,961	5.1	5	9
Drax Group	Biomass generation and production	United Kingdom	1,869	4.9	6	6
Grenergy Renovables	Renewable energy developers	Global	1,849	4.8	7	5
SSE	Renewable focussed utilities	United Kingdom	1,789	4.7	8	10
Cadeler	Renewable technology and service	Europe (ex. UK)	1,678	4.4	9	19
RWE	Renewable energy developers	Europe (ex. UK)	1,625	4.2	10	8
Foresight Solar Fund	Yieldcos and Investment Companies	United Kingdom	1,532	4.0	11	11
Gore Street Energy Storage Fund	Energy storage	Global	1,363	3.6	12	12
National Grid	Electricity networks	Global	1,254	3.3	13	14
Northland Power	Renewable energy developers	Global	1,153	3.0	14	15
Aquila European Renewables	Yieldcos and Investment Companies	Europe (ex. UK)	1,072	2.8	15	7
AES Corporation	Renewable focussed utilities	North America	1,042	2.7	16	16
Enefit Green	Renewable energy developers	Europe (ex. UK)	958	2.5	17	20
Cloudberry Clean Energy	Renewable energy developers	Europe (ex. UK)	713	1.9	18	21
Atlantica Sustainable Infrastructure	Yieldcos and Investment Companies	Global	695	1.8	19	17
US Solar Fund	Yieldcos and Investment Companies	North America	672	1.8	20	29
Greencoat Renewables	Yieldcos and Investment Companies	Europe (ex. UK)	658	1.7	21	18
Corp. Acciona Energias Renovables	Renewable energy developers	Europe (ex. UK)	652	1.7	22	13
GCP Infrastructure	Renewable financing and energy efficiency	United Kingdom	601	1.6	23	30
Harmony Energy Income Trust	Energy storage	United Kingdom	587	1.5	24	23
Polaris Renewable Energy	Renewable energy developers	Latin America	555	1.5	25	27
MPC Energy Solutions	Renewable energy developers	Latin America	476	1.2	26	32
SDCL Energy Efficiency Income Trust	Renewable financing and energy efficiency	Global	466	1.2	27	33
Algonquin Power and Utilities	Renewable focussed utilities	North America	463	1.2	28	28
7C Solarparken	Renewable energy developers	Europe (ex. UK)	453	1.2	29	25
Solaria Energía y Medio Ambiente	Renewable energy developers	Europe (ex. UK)	441	1.2	30	22
Gresham House Energy Storage Fund	Energy storage	United Kingdom	422	1.1	31	26
Serena Energia	Renewable energy developers	Latin America	313	0.8	32	34
VH Global Sustainable Energy	Yieldcos and Investment Companies	Global	302	0.8	33	-
Atrato Onsite Energy	Renewable energy developers	United Kingdom	237	0.6	34	36
Boralex	Renewable energy developers	Global	232	0.6	35	35
Innergex Renewable	Renewable energy developers	North America	176	0.5	36	37
Clean Energy Fuels	Renewable fuels	North America	84	0.2	37	-
Fusion Fuel Green (incl. warrants)	Renewable technology and service	Europe (ex. UK)	52	0.1	38	38
			38,198	99.9
PMGR Securities 2025 PLC	ZDP subsidiary	United Kingdom	50	0.1
TOTAL INVESTMENTS			38,248	100.0

 

 

INTERIM MANAGEMENT REPORT

 

Premier Miton Global Renewables Trust PLC is required to make the following disclosures in its Half Year Report:

 

PRINCIPAL RISKS AND UNCERTAINTIES

The Board believes that the principal risks and uncertainties faced by the Company continue to fall into the following categories:

 

· Structure of the Company and gearing

· Repayment of ZDP Shares

· Dividend levels

· Currency risk

· Liquidity risk

· Market price risk

· Discount volatility

· Operational risk

· Accounting, legal and regulatory risk

· Political intervention

· Industry regulation

· Geopolitical risk

· Climate risk

 

Information on each of these, save for Repayment of ZDP Shares, is given in the Strategic Report in the Annual Report for the year ended 31 December 2023. Attention is further drawn to the new 2025 ZDP Shares' liability falling due on 28 November 2025, the repayment of which stands in preference to the entitlements of Ordinary Shares. A fall in value of the Company's portfolio around that time could have a material adverse effect on the value of the Ordinary Shares. In addition, at the Company's AGM in 2025 there will be a continuation vote in accordance with the Company's Articles of Association.

 

RELATED PARTY TRANSACTIONS

The Directors are recognised as a related party under the Listing Rules and during the six months to 30 June 2024 fees paid to Directors of the Company totalled £41,388 (six months ended 30 June 2023: £39,860 and year to 31 December 2023: £79,888).

 

GOING CONCERN

The Directors believe that having considered the Company's investment objectives (shown on page 1), the continuation vote at the AGM in 2025, risk management policies and procedures, nature of portfolio and income and expense projections, the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for a period of at least 12 months from the date these financial statements were approved. For these reasons, they consider that the use of the going concern basis is appropriate. The risks that the Directors considered most likely to adversely affect the Company's available resources over this period were a significant fall in the valuation or a reduction in the liquidity of the Company's investment portfolio.

 

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors are responsible for preparing the Half Year Report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

 

· The condensed set of Financial Statements within the Half Year Report has been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and applicable law; and

· The Interim Management Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FCA's Disclosure and Transparency Rules.

 

For and on behalf of the Board.

 

Gillian Nott OBE

Chair

1 August 2024

 

 

DIRECTORS AND ADVISERS

 

Directors

Gillian Nott OBE - Chair

Melville Trimble - Chair of the Audit Committee

Victoria Muir - Chair of the Remuneration Committee

 

Alternative Investment Fund Manager ("AIFM")

Premier Portfolio Managers Limited

Eastgate Court

High Street

Guildford

Surrey GU1 3DE

Telephone: [phone]

www.premiermiton.com

Authorised and regulated by the

Financial Conduct Authority ("FCA")

 

Investment Manager

Premier Fund Managers Limited

Eastgate Court

High Street

Guildford

Surrey GU1 3DE

 

Telephone: [phone]

www.premiermiton.com

Authorised and regulated by the Financial Conduct Authority

 

Secretary and Registered Office

Link Company Matters Limited

Central Square

29 Wellington Street

Leeds LS1 4DU

 

Registrar

Link Group

Central Square

29 Wellington Street

Leeds LS1 4DL

 

Telephone: [phone]*

Overseas: [phone]*

E-mail: [e-mail]

www.signalshares.com

 

Depositary

Northern Trust Investor Services Limited

50 Bank Street

Canary Wharf

London E14 5NT

 

Authorised by the Prudential Regulation Authority ("PRA") and regulated by the FCA and PRA

 

Custodian

The Northern Trust Company

50 Bank Street

Canary Wharf

London E14 5NT

 

Tax Advisor

(Tax services are delegated by

Premier Portfolio Managers Limited)

Northern Trust Global Services SE

50 Bank Street

Canary Wharf

London E14 5NT

 

Auditor

Haysmacintyre LLP

10 Queen Street Place

London EC4R 1AG

 

Stockbroker

Cavendish Capital Markets Limited

One Bartholomew Close

London EC1A 7BL

 

Telephone: [phone]

 

ORDINARY SHARES

SEDOL: 3353790GB

LSE: PMGR

 

Zero Dividend Preference Shares

SEDOL: BNG43G3GB

LSE: PMGZ

 

GLOBAL INTERMEDIARY IDENTIFICATION NUMBER

GIIN: W6S9MG.00000.LE.826

 

*Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. The Registrar is open between 09:00 - 17:30 Monday to Friday excluding public holidays in England and Wales.

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