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Highlights:

  • SEIT reported a FY25 profit before tax of GBP 70 million, reversing a GBP 56 million loss in FY24.
  • The company declared FY25 dividends of 6.32p per share with a cash cover of 1.0x, down from 1.1x in FY24.
  • SEIT has issued guidance for a FY26 dividend of 6.36p per share, with a targeted cash cover of 1.1x to 1.2x.

SDCL Energy Efficiency Income Trust plc (LSE: SEIT) is a UK-listed investment trust focused on energy efficiency infrastructure. Its portfolio includes decentralised energy projects across North America, the UK, and Europe.

 The company has released its Annual Report and Audited Financial Statements for the year ended 31 March 2025, detailing portfolio performance, dividend outcomes, and updated guidance amid continued discount to net asset value (NAV).

For the year ended 31 March 2025(FY25), SEIT reported a profit before tax of GBP 70 million, a turnaround from a GBP 56 million loss in the previous financial year. The net asset value (NAV) per share stood at 90.6p, unchanged from six months earlier and slightly up from 90.5p as of March 2024. The trust’s portfolio valuation rose to GBP 1.197 billion, up from GBP 1.102 billion in September 2024 and GBP 1.117 billion in March 2024. The increase reflected updated cash flow forecasts and asset-level performance.

During the year, GBP 97 million in investment cash inflows were generated, marking a 5% increase from the previous year on a portfolio basis. SEIT also completed the sale of UU Solar in May 2024, generating approximately GBP 90.8 million in gross disposal proceeds, representing a modest premium to its September 2023 valuation.

The company declared aggregate dividends of 6.32p per share for FY25, consistent with its annual target. Dividend cash cover for the year was 1.0x, down from 1.1x in the prior period.

SEIT has issued guidance for a FY26 dividend of 6.36p per share, with a targeted cash cover of 1.1x to 1.2x. This reflects ongoing capital expenditure in prior years and expectations of increasing operational contributions from its existing portfolio.

Chair Tony Roper acknowledged that while operational performance met expectations and dividends were covered, SEIT’s share price continues to trade at a material discount to NAV. As a result, the Board has begun exploring strategic options to address shareholder value concerns. These may include asset sales, balance sheet restructuring, or other capital management initiatives.

Investment Manager Jonathan Maxwell noted that while SEIT’s diversified portfolio delivered expected operational outcomes, broader market conditions particularly in the infrastructure and renewable energy investment trust sector—have weighed on share prices. The company is now shifting its focus toward operational improvements, liquidity management, and capital recycling rather than new investment activity.

Portfolio-level debt financing agreements, secured during the year, have enhanced flexibility and will support SEIT’s ability to prioritise existing asset performance. Meanwhile, the trust is exploring ways to release capital, reduce leverage, and seek value realisation opportunities within its holdings.