Investors

Key performance indicators

Data as at 31 March 2018

Total return
% of opening Net Asset Value

Target
To provide shareholders with a total return of 8% to 10% per annum, to be achieved over the medium term.

Outcome for the year
Total return of 28.6% for the year to 31 March 2018.

Performance against target
Exceptional outperformance.

Rationale, definition and performance over the year

Rationale and definition
  • Total return is how we measure  the overall financial performance  of the Company
  • Total return comprises the investment return from the portfolio and income from any cash balances, net of advisory and performance fees and operating and finance costs. It also includes movements in the fair value of derivatives and taxes
  • Total return, measured as a percentage, is calculated against the opening net asset value, net of the final dividend for the previous year, and adjusted (on a time weighted average basis) to take into account any equity issued and capital returned in the period
Performance over the year
  • Total return of £480 million in the year, or 28.6% on opening net asset value, adjusted for the payment of the £425 million special dividend
  • The return was driven by the sale of the Company’s holdings in Elenia and AWG, and a valuation uplift from XLT where all trains have now been built
  • The hedging programme continues to reduce the volatility in net asset value from exchange rates
  • Costs were managed in line with expectations

  

Annual distribution
pence per share

Target
Progressive dividend per share policy. Targeting a full year dividend for FY18 of 7.85 pence per share.

Outcome for the year
Total dividend of 7.85 pence per share paid and proposed.

Special dividend of 41.4 pence per share paid in March 2018.

Performance against target
Exceptional outperformance.

Rationale, definition and performance over the year

Rationale and definition
  • This measure reflects the dividends distributed to shareholders each year
  • The Company’s business model is to generate returns from portfolio income and capital returns (through value growth and realised capital profits). Income, other portfolio company cash distributions and realised capital profits generated are used to meet the operational costs of the Company and distributions to shareholders
  • The dividend is measured on a pence per share basis, and is targeted to be progressive
Performance over the year
  •  Proposed total dividend of 7.85 pence per share, or £72 million, is in line with the target set out at the beginning of the year
  • Income generated from the portfolio and cash deposits, including non-income cash distributions and other income from portfolio companies, totalled £159 million for the year. Operational costs and finance costs used to assess dividend coverage totalled £43 million in the year. The dividend was fully covered for the year 
  • Setting a total dividend target for FY19 of 8.65 pence per share, 10% higher than for FY18

   

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