Sdcl Energy Efficiency I... Share Discussion Threads

[stemis] 04/12/2023 11:21

In a way the results presentation kind of reiterate my point. Lot's of talk about ebitda (whether it's up or down, meeting budget, better in the second half etc). Indeed it's mentioned 17 times. Not one figure is disclosed.

[jonwig] 04/12/2023 10:14

US best performing economy, but the US assets are the problematic ones!

They're acutely aware of the share rating, and disposals plus buybacks are clearly coming up. PIN has a tender offer recently, which might have impact here following a disposal.

Covered dividend of 6.24p should be putting a floor on the share price.

[cc2014] 04/12/2023 09:50

I have no great insight here. Nearly everything in there was pretty much flagged up already or could have been worked out through common sense.

I had hoped for better and I guess I found the results underwhelming but it seems that given the share price has not moved the market pretty much expected what it got.

It's my guess that we are at the top of this part of the interest rate cycle and we will see no further detriment to the NAV. It will be interesting to see that whilst at the moment the market is screaming at these Trusts to de-lever whether once interest rates start falling that will prove to be the right decision. I am very doubtful it can be done through disposals anyway, but that matters not to me as it will naturally happen over time as the income is more than the dividend payments.

In summary happy to hold, happy to collect the covered dividend and some capital appreciation in due course but all a but uninspiring and would have preferred the share price to zip up to 70p this morning.

[williamcooper104] 04/12/2023 09:10

Don't like the increase in holdco leverage which, that will be expensive and means as they say they need to focus on disposals to pay it down - fortunately a long way from DGI9s balance sheet - but does have some of the same colour Slightly off topic Brookfield have just raised the largest ever infra fund at $28bn That'll likely buy something that many of us hold

[spectoacc] 04/12/2023 07:24

Decent cash inflow, loss all due to discount rate change, a lot of talk about narrowing the share price discount.

Agree there's nothing too bullish in it but it's surely all in the price down here. The low gearing is the saving grace.

[jonwig] 04/12/2023 07:21

Results:



Nothing here to suggest a upward re-rating. The words "below budget" all too frequent.

[spectoacc] 01/12/2023 10:29

Ah but where would they be without the buyback @SteMiS ;)

+0.3p to NAV, strewth. They're not alone in spending a lot on buy backs at much higher prices.

Let us know if you get any co response to your q's.

SEIT should be higher IMO, but I'd like to see some insider buying.

[stemis] 01/12/2023 10:22

I think a lot of UK investments 'like' SEIT are trading at big discounts for reasons that have been touched upon on this board. However SEIT doesn't seem to have seen any real recover despite easing of long term rates (opportunity or cause for concern?).

Jonwig. I don't doubt dividends are currently covered but my 'concern' (if that's not overstating it) is how vulnerable they are in the future. Anyway I've written to the company. Be surprised however if I get a substantive reply (if any at all), but we'll see...

As an aside, I really don't know why they bothered with the share buyback. £20m spent and did nothing to remove any 'overhang' in the market and only added 0.3p to NAV/share. I'd feel happier if it was sitting on their balance sheet...

[cc2014] 01/12/2023 09:47

My sense is that because this is an energy efficiency trust rather than a solar or wind fund it is more difficult to understand and is perceived as carrying more risk.

Indeed a number of the investments appear more like a regular business albeit they have many bond proxy attributes in that they have long term visibility on both revenue and debt costs

All of which translates into investors demanding a bit more return for their cash than a easy to understand solar or wind farm.

[jonwig] 01/12/2023 09:35

They do say the coming dividend is "covered by net operational cash received from investments." But of course quarter-to-quarter reports aren't really what you want.

[stemis] 01/12/2023 09:18

Nothing I can find.

There's an awful lot of information in the accounts and on the web site but a glaring hole in that there's barely anything (that I can find anyway) about the trading performance of their individual subsidiaries. They say that cashflow (of £85m) covers dividend 1.2x. Great, but nothing about which subsidiaries it comes from. I've a reasonable idea which subsidiaries hold the underlying debt (don't see why they can't specifically anyalyse it rather than making you do it yourself) but nothing about their balance sheets or profitability. If a lot of the £85m came from Primary (debt = $180m) and it had a weak balance sheet, I'd be rather more worried than if it was Red (debt = $75m) and it had a strong balance sheet.

I'd be a buyer here (and maybe still will be) but the collapse in the share price makes me worried that someone with more access to the above data knows more than I do about the vulnerability of SEIT's cashflow...

[jonwig] 01/12/2023 07:21

Yes, it would!

I've tried to find the accounts of RED Rochester without success. Is there a free equivalent in the US (and EU) of Companies House here in the UK?

[stemis] 30/11/2023 17:48

It would be helpful if they produced consolidated accounts even if as just an addedum. They own 100% of pretty much all their investments so they are hardly just a passive investor.

[cc2014] 30/11/2023 10:40

Interim results presentation coming up in a few days

[spectoacc] 29/11/2023 16:08

Starting to think the second letter in the ticker ought to be an "H".

[hugepants] 20/11/2023 15:30

Drifting down again. Back to yielding 10%.

[madmix] 16/11/2023 14:14

Does anyone here have a good handle on discount rates?

The last published NAV of 101.5p was from 31st March and based on discount rates of 7.7% unlevered and 8.5% on a levered basis.

Are we likely to see a further increase in discount rates in the 30th September report and therefore another fall in NAV?

I'm guessing that subsequent moves in inflation/interest rate expectations in the last couple of weeks would move things back in the right direction anyway.

[cc2014] 14/11/2023 08:48

222k but yeah. Who gets up and needs the cash so desperately they sell a few minutes into the day at that price?

[spectoacc] 14/11/2023 08:37

22k at 61.45p reported this morning - hard to believe, but there's still sellers.

[loglorry1] 02/11/2023 18:56

Bought some of these today. Seems like a big enough discount now.

[jonwig] 26/10/2023 07:12

Webinar on IRA, 8 Nov 1 - 2 pm. Such insouciance!

[digger18] 25/10/2023 12:16

I agree that I am doing the same, however I see no real reason to sell and take a loss, when we appear to have a solid investment.
As I posted earlier, large II’s obviously feel the same.

[cc2014] 25/10/2023 11:58

I begin to feel like I might be chasing this.

Anyways some more for the pot at close to 56.5p

[digger18] 25/10/2023 11:42

It’s still positive that both M&G and Investec both increased holdings recently, to circa 13% each, so they obviously see value and LT income.

[digger18] 25/10/2023 11:25

I am amazed at the discount level here!
Surely it’s still a LT good investment?
Not sure if it will get back to my buy in level just over IPO!!