The SDCL Energy Efficiency Income Trust (Seeit) saw pre-tax profits more than double as demand for companies and services that reduce carbon emissions boomed over the past year, its latest annual report has revealed.
The £1.1bn FTSE 250-listed investment company – which invests in energy efficiency projects mainly in the UK, Europe and North America – recorded pre-tax profits of £79.8m for the year-ended 31 March, compared with £32.4m for the prior year.
Seeit recorded a total net asset value (NAV) return for the year of 11.2%, outperforming its targeted return of 7-8%, while its share price rose by 9% in the 12 months to 31 March.
Over three years to 29 June, Seeit’s share price gained 27.8%, outperforming the Renewable Energy Infrastructure AIC sector’s average 22.2% return. The trust’s NAV was up 25.8% in the same period, versus the sector’s average 32.6% NAV gain.
Energy efficiency more important than ever
Jonathan Maxwell, chief executive of Seeit’s investment manager SDCL, said: “[The trust] is investing in one of the most important and fastest-growing sectors of the infrastructure market, making investments that reduce carbon emissions and energy cost and that improve resilience and energy security.
“Against a background of high and rising energy prices during the past year and particularly following Russia’s invasion of Ukraine, energy efficiency is more important than ever before.”
He added: “Energy efficiency has a key role to play in reducing demand for scarce energy resources, improving productivity, and achieving rapid decarbonisation at anything like the scale needed to achieve the ‘1.5C’ or ‘net zero’ targets set at COP26.”
During the financial year, Seeit made more than £300m in new investments and commitments targeting key markets and technologies, including district energy, green gas, solar and storage, geothermal, energy-efficient motors and chillers, and electric vehicle charging infrastructure.
Maxwell said the trust had also entered into exclusive framework agreements to secure pipelines of further investment opportunities from existing investments and relationships, with a significant proportion of its investment activity coming from follow-on investment opportunities.
Seeit chair Tony Roper said: “The past year has been a watershed period for the energy efficiency sector. Seeit is well-positioned to take advantage of this by continuing its investment in solutions in this key sector.
“Despite facing significant challenges within the market, compounded by the tragic situation in Ukraine, Seeit has produced another robust set of results, demonstrating the resilience of the business.”
He added: “Seeit will continue to seek opportunities to grow and diversify its portfolio and deliver cheaper, cleaner, and more reliable solutions to energy users.”
