Greencoat UK Wind PLC investment co-manager Stephen Lilley joined Proactive's Stephen Gunnion with an update on the firm's capital allocation. Greencoat has raised its annual dividend target to 10 pence a share following a year-long evaluation of interest rate increases and share discounts.
The move is aligned with the company's commitment to the risk-free rate and the capital asset pricing model. In response to capital allocation inquiries, Lilley emphasized a balance between rewarding shareholders and reinvesting in wind power assets.
While noting a recent investment in the London Array offshore wind farm, he stressed that the company's primary focus remains on addressing the current discount to net asset value (NAV). From admission to the London Stock Exchange in March 2013 to 30 September 2023, the company has generated 1,764 million of cash flow, paid 887 million of dividends and reinvested 877 million of excess cash generation.
Lilley also shed light on the company's plans to employ up to 100 million of its annual excess cash generation for a share buyback initiative, a move to add value and attractively position Greencoat in the market.
Proactive UK Ltd
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Greencoat UK Wind PLC