Greencoat UK Wind chairperson Lucinda Riches has described 2025 as a challenging year marked by lower wind speeds and a fall in near-term power prices.
Net cash generation remained robust at £291m, which Riches said covered the annual dividend by 1.3x.
Riches added that material progress was made on capital allocation, including a 12th consecutive year of dividend increases in line with or ahead of inflation, divestments of £181m and share buybacks of £109m.
She stated that the company also reduced debt principal by £168m and added £5m to NAV through asset optimisation initiatives.
“The Board and the Investment Manager recognise that this has been a further challenging year for investors and have been working tirelessly to protect and build shareholder value,” said Riches.
“Net cash generation remained robust at £291 million.”
“Material progress has been made on capital allocation in 2025, having delivered a 12th consecutive year of dividend increases with or ahead of inflation, significant divestments at prevailing NAVs, a sector-leading share buyback programme and a material reduction in debt principal,” she added.
“We recognise the need to continue to take further action to rebuild shareholder value and we have clear priorities for capital allocation during 2026 which include further divestments, reducing gearing, continuing share buybacks and a disciplined return to reinvestment,” stated Riches.
She said the company expects its structurally high dividend cover model to deliver around £1bn of excess cashflow over the next five years, supported by further strategic disposals, providing “significant optionality to enhance value for shareholders”.