PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2014
Financial and operating highlights
· Revenue increased by 7.3% to £242.5 million largely due to higher exported power from wind and increases in average selling price (ASP)
· EBITDA before operating exceptional items¹ increased by 18.3% to £148.4 million driven by strong revenue growth and cost control
· Balance sheet position strengthened with leverage significantly lower at 3.7 times from 4.4 times in 2013
· Final dividend proposed of 6.63 pence per share for the period from the date of Admission to the London Stock Exchange to the end of the financial year, and in line with our stated dividend policy under which we intend to declare a dividend of £55 million for the first full financial year ending 31 March 2015 and increasing from that point at least in line with inflation
Corporate highlights
· Initial public offering on the London Stock Exchange and inclusion in the FTSE 250 index
· The refinancing and consolidation of ten separate operational wind project finance facilities of £255 million into a single £296 million syndicated loan at a lower portfolio interest rate
· Growth plan on track to deliver 130 MW to 150 MW of new wind capacity by 2017
Outlook
· Operationally our landfill gas business has performed well and will benefit from eight NFFO terminations which will make a full or part year contribution in this financial year. In our wind business, wind speeds have trended below average in the first quarter;
· While mild weather and lower gas prices has led to softer wholesale power markets in the near-term, we believe that the longer term fundamentals for our industry remain strong, with anticipated tightening reserve margins supportive of power prices;
· Infinis remains well insulated from external factors with around 50% of expected revenues increasing by inflation each year. Furthermore we have already contracted approximately 60% of our expected power output at fixed prices for the current year;
· The strong cash generative nature of the Group provides management with confidence that our stated dividend policy will be delivered without compromising our growth plans.
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