LONDON (Alliance News) - Bluefield Solar Income Fund Ltd Friday said it is on target to deliver a "sector leading" dividend at the end of the financial year after reporting its maiden income from investments in the first half, swinging to a pretax profit.
The investment company is focused on large-scale solar energy in the UK, and reported its maiden income from investments in the six months ended December 31, totalling GBP864,341, alongside booking GBP69,092 in interest from cash in the bank.
Bluefield reported a cash balance of GBP95.6 million at the end of the first half, and said the income rose significantly because there was 21 fully operational projects in the first half of 2014, compared to only one operational project in the portfolio in the first half of 2013.
The fund also reported a GBP7.8 million gain from a change in fair value of its financial assets, partially offset by a rise in administrative expenses, leading to an operating profit of GBP6.5 million, swinging from a GBP965,279 loss in the first half of 2013.
After financing costs of GBP423,982, this led to an pretax profit of GBP6.1 million, also swinging from a GBP965,279 loss a year earlier. The company did not pay any financing costs in the first half of 2013.
Bluefield's earning per share was 3.48 pence per share in the period, compared to a 0.74 pence per share loss.
To date, Bluefield has paid dividends semi-annually, but in 2015 it will move to quarterly distributions. The company paid a 4.0 pence per share dividend for the year ended June 30, 2014, and will pay an additional 3.25 pence per share interim dividend for the first half.
Bluefield said it "is on target" to deliver a "sector leading" 7.0 pence per share dividend for the financial year due to end June 30.
"The prospects for the company remain very good, as we seek to build on the strong platform we have created in our first 18 months," said Chairman John Rennocks.
Bluefield shares were up 1.2% to 103.50 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Bluefield Solar (BSIF)