FORESIGHT SOLAR FUND LIMITED - 2025 Full Year Results

Foresight Solar Fund Limited’s (FSFL:LSE) latest investor update highlights resilient company performance, strong operational delivery and a clear income-focused growth strategy despite sector headwinds. For 2025, the fund achieved its 1.3x dividend cover target, supported by UK solar generation outperformance, disciplined financial management and an active hedging strategy that increased revenue visibility. The board is maintaining the 2026 dividend at 8.1p per share, with forecast dividend cover of around 1.1x based on contracted revenues and year-to-date performance, while retaining upside exposure to merchant power prices. Although NAV declined to 99.2p per share due to lower long-term power price forecasts, Australian market weakness and the conclusion of a tax review, the balance sheet remains stable with gearing at just over 41%, well within policy limits. Management continues to prioritise shareholder value through a £60 million share buyback programme, strategic asset recycling, debt optimisation and selective reinvestment into higher-quality long-duration renewable assets, including solar and battery storage. With around 60% of revenues contracted over the medium term, rising to roughly 87% for 2026 through subsidies, PPAs and hedging, Foresight Solar offers investors a differentiated renewable infrastructure proposition focused on sustainable dividends, cash flow visibility, portfolio optimisation and long-term NAV support.