Triple Point Energy Tran... Share Discussion Threads

[cc2014] 23/7/2024 11:06

If we are to believe that 7.5m trade it's come from Aviva

[stemis] 18/7/2024 16:50

Very quiet in here and maybe that's a good thing...

I'm not a fan of these little 'environmental' investment trusts but I have a small interest here.

Current net asset value at 31 March was 86.66p/share. Since then it's paid a dividend of 1.375p. Let's be prudent and knock that off NAV, giving 85.3p/share. Current share price is 70p. So in theory a 22% gain to be had.

The way TENT accounts for it's investments, through an intermediate holding company, clouds the situation. But at 31.3.24 there was £3.7m cash in the top co and £4.1m in the intermediate holding co. Knock off £1.4m for the dividend and £0.7m for negative working capital (£0.4m topco + £0.3 intermediate) gives £5.7m.

Since then

£2.1m repayment of LED facility
£11.6m repayment of Field Debt facility (balance of which clears revolving credit facility)
£14.5m refinancing of CHP facility (plus £3m deferred)

giving a total cash of £33.9m or 33.9p/share. Not sure why TENT aren't distributing the bulk of this.

What's left is 51.4p/share (£51.4m) covering the remaining 36.1p cost of shares.

That's made up of £3m deferred consideration on the CHP refinancing, the hydroelectric assets (bidders shortlisted) which cost £46.2m and the remaining LED facility of £2.2m. Anything better than a 30% haircut would be profitable at this level.

[stemis] 25/6/2024 17:13

Surprised they got away with an impairment of only £6.1m (although there is still £3m at risk due to deferred payment).


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SteMiS - 06 Mar 2024 - 09:58:45 - 67 of 84

I'm pretty sceptical of these small 'enery efficient' investment vehicles like TENT which sought to ride the somewhat trendy 'environmental' wave and now sit on big 'discounts'. Part of TENT's NAV of £95.1m (95.1p/share) comprises loans to CHP producers Harvest and Glasshouse. For anyone who's interested...

Harvest is Harvest Generation Services Limited. Accounts are available on companies house web site. As at 31 March 2023 (last accounts) it owed TENT £9.2m. Harvest had net assets of £3.6m and appears to be loss making.

Glasshouse is Glasshouse Generation Limited. Accounts are available on companies house web site. As at 31 March 2023 (last accounts) it owed TENT £9.2m. Glasshouse had net assets of £4.3m and appears to be profitable in the year but has losses brought forward.

These loans add up to £18.4m (18.4p/share). Loans are due for repayment in 2031. Will be interesting to see how TENT recover this money before then at full value.

[cc2014] 24/6/2024 09:44

Agreed TT. I was worried the tomato loan was worth far less than it went for.

The rest is hydro assets so there's a ready market for those. I would imagine they will go for NAV give or take a couple of percent.

[solarno lopez] 24/6/2024 09:39

Fully agree TT

[tigerbythetail] 24/6/2024 09:24

I can't see any hidden nasties in all that. IMO, this looks good for 75p+ in due course.
Glad they got rid of the struggling CHP / tomato growing asset - that was always the riskiest item in the portfolio. Yes, they lost money on the deal, but I was worried there wouldn't be a buyer at all.

[cc2014] 24/6/2024 08:25

Yeah - very happy with that. Just sit back and collect the cash in due course

[cc2014] 27/3/2024 15:32

Nice RNS today.

Another £5m turned into cash for redemption.

[cc2014] 25/3/2024 13:14

Wind up resolution passed on Friday.

Share price creeping up a little as a result

[manrobert] 08/3/2024 16:57

I guess that large late trade was actualy a buy.

[cc2014] 08/3/2024 13:21

What do you want me to say? The trust will be in managed wind-down and it will take years to get all the money back. Some assets they will be able to sell off and some they won't. Or at least it doesn't look likely with interest rates at 5.25%. If you see interest rates falling back to 3% it's going to get far easier to sell the loans and assets as the returns are going to look far more attractive.

If you are invested in this you have to accept some of the money is going to come back to you reasonably quick and some make take years. Glasshouse looks like one of those which will take a long while to shift but with gas prices now down to a level that is lower than before COVID the profitability at Glasshouse should no longer be a concern.

[solarno lopez] 08/3/2024 12:47

But CC you make no comment of one of the largest investments namely Glasshouse Tent needs to shed.

[cc2014] 08/3/2024 12:30

TENT's investments are generating returns of around 8%. If you were paying 100p for a return of 8% you might be grumpy but you are only paying around 65p which means we are making 12.5% while we are waiting plus in time we will get some capital uplift.

Also it's good news for us the battery loan is one of the first to be crystallised. The market was nervous about this (see HEIT, GRID and GSF share charts) which caused the recent fall in the share price). Also IIRC the loan was at 7% (although it had some profit sharing attributes which atm look probably worthless) so I'm more than happy for the fund to get the cash back with the appropriate interest

[solarno lopez] 08/3/2024 12:11

When you put it in ‘black n white’ as SteMiS has done it looks like we could be waiting a long time for a payout on this particular investment of Tents

[manrobert] 07/3/2024 09:24

wond/er if we will get an update from simon tomorrow

[spectoacc] 06/3/2024 10:03

Absolutely. Anything trendy, anything ZIRP-era, tho not all are HOME or DGI9.

But how many have proven successful..

Might add to be wary of anything "seeded" with a portfolio from a parent/manager, and anything with related party transactions (SONG another that stinks).

[stemis] 06/3/2024 09:58

I'm pretty sceptical of these small 'enery efficient' investment vehicles like TENT which sought to ride the somewhat trendy 'environmental' wave and now sit on big 'discounts'. Part of TENT's NAV of £95.1m (95.1p/share) comprises loans to CHP producers Harvest and Glasshouse. For anyone who's interested...

Harvest is Harvest Generation Services Limited. Accounts are available on companies house web site. As at 31 March 2023 (last accounts) it owed TENT £9.2m. Harvest had net assets of £3.6m and appears to be loss making.

Glasshouse is Glasshouse Generation Limited. Accounts are available on companies house web site. As at 31 March 2023 (last accounts) it owed TENT £9.2m. Glasshouse had net assets of £4.3m and appears to be profitable in the year but has losses brought forward.

These loans add up to £18.4m (18.4p/share). Loans are due for repayment in 2031. Will be interesting to see how TENT recover this money before then at full value.

[tigerbythetail] 05/3/2024 19:12

Take a closer look at today's RNS. It's phrased opaquely (perhaps deliberately), but TENT admit that there is a problem with their CHP investment.

[manrobert] 05/3/2024 10:50

i cant quite understand why this share is down.is it because people cant wait a year for a guaranteed profit

[apollocreed1] 21/2/2024 15:20

@hpcg - Thanks for your comment.

So I took a look at the last TENT interim report in September 23. They have a £50m RCF of which they have only taken £2.4m. The interest rate on that is 6%. It's only worth borrowing if the money is invested in a much higher yielding asset. It seems that by the time they got going, interest rates were too high for borrowings to add to returns. They have been looking into expanding or renewing the RCF and the rates they were offered were even higher than 6% so they shelved that idea.

£94.5m net assets including £2.4m cash.

Doesn't look like there is much to worry about with regards to the battery storage investment because they have an offer to buy it from them which they expect to complete at the end of March 2024. That was a £37m commitment of which £26.9m is undrawn and they were going to finance that with the RCF facility. Assuming this transaction proceeds, there will be no debt at all.

That only leaves £5m of a loan they made to Innova to invest in battery and solar, so it's just a small proportion of the portfolio.

One negative is that the weighted average discount rate across the portfolio is only 7.3%. That's very much on the low side when compared to other renewable ITs. There would be a hit to NAV if that was increased. But TENT looks to be in pretty good shape otherwise.

[hpcg] 20/2/2024 16:07

apollocreed - gearing can be complicated. There is gearing at the top level and separate gearing at owned investee companies that is non-recourse. Then there is the gearing at unowned debtor companies, which matters if any monies lent are not senior. Mix in partial ownership and it is just muddy. We rely on management commentary and honesty about the state of individual operations. My understanding though is that there genuinely isn't any debt here; they haven't been around long enough for any one to lend them money :-))

[apollocreed1] 20/2/2024 15:19

I wonder how accurate the Morningstar data is, but there is an IT screener on the AJBell website. According to that, TENT has zero net and zero gross gearing.

That's a big plus in its favour.

Comparable peers on similar discounts are between 39% and 86% net gearing - NESF, FSFL, ORIT, USF, DORE, BSIF, AERI, JLEN and Greencoat Renewables.

These ones are also on pretty low net gearing levels:

AEET-0%

GSF-0%

GCP-9%

SEIT-7% (Although the recent Hardman report say they are on a 44% gearing so not sure if the Morningstar figures are accurate)

TRIG - 4%

PINT - 0%