JLEN Environmental Assets Group

Half-year Report (Replacement)

RNS Number : 8108U

JLEN Environmental Assets Group Ltd

27 November 2023

The following amendment has been made to the 'Half-year results for the period to 30 September 2023' announcement released on 27 November 2023 at 07h00 under RNS No. 6694U.

The original announcement incorrectly stated the NAV total return for the six-month period as 1.4% and the announcement below has been updated to state the NAV total return for the period as 0.3%. All other details remain unchanged.

The full amended text is shown below.

27 November 2023

JLEN Environmental Assets Group Limited

("JLEN" or the "Company")

Half-year results for the period to 30 September 2023

JLEN Environmental Assets Group Limited, the listed environmental infrastructure fund, is pleased to announce the Company's half-year results to 30 September 2023.

Resilient earnings and Net Asset Value

· NAV per ordinary share of 119.7 pence (31 March 2023: 123.1 pence), a decrease of 3.4 pence from 31 March 2023

· NAV total return of 0.3% over the first six months of the year

· NAV total return since IPO of 122.9%, which is 8.8% annualised (31 March 2023: 119.9% / 9.1% annualised)

· Portfolio valuation remains flat at £898.9m (31 March 2023: £898.5m)

Healthy cash generation from underlying assets

· Second consecutive period of record distributions received from investments, underpinning a dividend cover of 1.32 times for the first six months of the financial year, or 1.54 times before payment of the Electricity Generator Levy (31 March 2023: 1.51 times)

· Total dividends declared for the six months to 30 September 2023 of 3.78 pence, on track to meet full year target of 7.57 pence set out in the 2023 Annual Report

· Prudent project level gearing of 17.7% and overall fund gearing of 28.7% after inclusion of JLEN's revolving credit facility (31 March 2023: 18.3% and 27.3% respectively)

Diversified portfolio reduces risk and enhances returns

· 42 assets across ten principal sectors

· Acquisitions in the period include the securing of rights to fund a second German green hydrogen investment opportunity through JLEN's development partner, HH2E, with final investment decision due in the coming months

· Progress made on asset disposals to recycle capital in line with the Company's approach to capital allocation

· Weighted average discount rate 9.4% (31 March 2023: 8.4%) following an average increase of 0.75% since 31 March 2023, providing real return of 6.9% above average long-term inflation assumption

· Good progress made on JLEN's development and construction stage investments, which now account for at 9.0% of portfolio value and provide potential for capital growth as they progress through the construction stage and become operational

· The renewable energy generating portion of the portfolio delivered 660GWh, an increase year on year (30 September 2022: 655GWh)

Key metrics

	As at 30 September 2023	As at 31 March 2023	As at 30 September 2022
Net Asset Value ("NAV")	£792.1m	£814.6m	£829.6m
NAV per share	119.7p	123.1p	125.4p
Gross Asset Value ("GAV")	£1,109.8bn	£1,119.8bn	£1,111.4bn
Total dividend per share declared for the period	3.78p	7.14p	3.57p
Weighted Average Discount Rate ("WADR")	9.4%	8.4%	8.4%
Overall portfolio gearing	28.7%	27.3%	25.5%
Annualised Total NAV Return since IPO	8.8%	9.14%	9.5%

Dividend timetable

Ex-dividend date 7 December 2023

Record date 8 December 2023

Payment date 29 December 2023

Ed Warner, Chair of JLEN, said:

"As JLEN approaches its tenth anniversary, the Board is encouraged by the prospects for the portfolio and proud of its track record of delivering consistent dividend and NAV growth over its life. Our valuation during the period has been resilient in the face of macro-economic headwinds and cash generation from our underlying assets has been healthy.

"The Board and the Investment Manager believe that the discount to NAV at which JLEN's shares are currently trading materially undervalues the Company, and so represents an attractive investment opportunity. The outlook for sustainable infrastructure investment remains positive as the UK and European economies decarbonise to meet net zero emissions targets and find ways to live more sustainably. We will be suitably cautious in our approach given the prevailing uncertainties, but considering this is a long-term asset class, we view the future with confidence."

Half-year report

A copy of the half-year report has been submitted to the National Storage Mechanism and is available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

The half-year report is available on the Company's website at www.jlen.com

Details of the conference call for analysts and investors

A webinar for the half-year results will be held at 10:00 a.m. (UK time) on Monday 27 November 2023, hosted by Chris Tanner and Edward Mountney, Investment Managers to JLEN. To register for the webinar, please contact SEC Newgate on [email protected].

Presentation materials will be posted on the Company's website, http://www.jlen.com, from 9:00am.

Investor results summary video

Please follow this link to view a summary of the results, presented by Investment Managers Chris Tanner and Edward Mountney: https://vimeo.com/888003389

This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.

For further information please contact:

Foresight Group

Chris Tanner

Edward Mountney

+44(0)20 3667 8100

Wilna de Villiers

[email protected]

Winterflood Securities Limited

Neil Langford

+44(0)20 3100 0000

SEC Newgate

Elisabeth Cowell

Alice Cho

Harry Handyside

+44 (0)20 3757 6882

[email protected]

Sanne Fund Services (Guernsey) Limited

Matt Falla

Gemma Berry

+44 (0)20 3530 3600

About JLEN

JLEN's investment policy is to invest in a diversified portfolio of Environmental Infrastructure. Environmental Infrastructure is defined by the Company as infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more environmentally friendly approaches to economic activity, support the transition to a low carbon economy or which mitigate the effects of climate change. Such investments will typically feature one or more of the following characteristics:

· long-term, predictable cash flows, which may be wholly or partially inflation-linked cash flows;

· long-term contracts or stable and well-proven regulatory and legal frameworks; or

· well-established technologies, and demonstrable operational performance.

JLEN's aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly and to preserve the capital value of the portfolio over the long term on a real basis. The target dividend for the year to 31 March 2024 is 7.57 pence per share¹.

JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure Regulation and has a transparent and award winning approach to ESG.

Further details of the Company can be found on its website www.jlen.com

LEI: 213800JWJN54TFBMBI68

⁽¹⁾ These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.

JLEN Environmental Assets Group Limited

Half-year Report for the six months ended 30 September 2023

ABOUT JLEN

JLEN Environmental Assets Group Limited ("JLEN" or the "Company") is an environmental infrastructure investment fund that invests in a diversified portfolio of assets that support the drive towards decarbonisation, resource efficiency and environmental sustainability. The Company's portfolio comprises 42 assets located across the UK and mainland Europe.

JLEN is Guernsey-registered with a premium listing on the London Stock Exchange and is a constituent of the FTSE 250 index. The Company has an award‑winning approach to Environmental, Social and Governance ("ESG").

OUR PURPOSE

JLEN aims to invest in a diversified portfolio of environmental infrastructure that supports more environmentally friendly approaches to economic activity whilst generating a sustainable financial return. It seeks to integrate consideration of sustainability and ESG management into its activities, which help to manage risks and identify opportunities.

View our half-year results highlights here:

https://vimeo.com/888003389

www.jlen.com

This year, as part of our ongoing commitment to sustainability, we have taken a "digital-first" approach, printing only a small number of copies of the report.

OUR INVESTMENT CASE

1 Sustainable financial return

2 Diversified Portfolio

3 Expert investment management

4 Award-winning approach to ESG

Read more about our investment case on page 4 in the Annual Report 2023

JLEN provides investors with a unique opportunity to invest in a diversified portfolio of sustainable infrastructure assets that offer long term growth and income. The Company aims to provide its shareholders with a sustainable, progressive dividend, paid quarterly, and to preserve the capital value of its portfolio.

Dividend progression

2015 6.00p

2016 6.05p

2017 6.14p

2018 6.31p

2019 6.51p

2020 6.66p

2021 6.76p

2022 6.80p

2023 7.14p

2024 7.57p⁽¹⁾

(1) This is a target only, there can be no guarantee this target will be met.

JLEN has a track record of delivering predictable, sustainable returns and has generated a Net Asset Value ("NAV") total return of 122.9% since IPO.

PERFORMANCE HIGHLIGHTS

Our results summary for the six months ended 30 September 2023.

NAV total return since IPO⁽¹⁾

122.9%

(8.8% annualised)

FY 2023: 119.9%

Net Asset Value

£792.1m

FY 2023: £814.6m

Net Asset Value per share⁽¹⁾

119.7p

FY 2023: 123.1p

Portfolio value

£898.9m

FY 2023: £898.5m

Dividend cover^(1,2)

1.32x

(1.54x pre-EGL)⁽³⁾

FY 2023: 1.51x

Half-year dividend per share⁽⁴⁾

3.78p

HY 2022: 3.57p

Renewable energy generated

660GWh

HY 2022: 655GWh

GHG emissions avoided

95,788 tCO₂e⁽⁵⁾

HY 2022: 96,500 tCO₂e⁽⁵⁾

Tonnes of waste diverted from landfill

359,428

HY 2022: 351,500

Wastewater treated

17.3 billion litres

HY 2022: 14.5 billion litres

UK homes powered by renewable electricity⁽⁶⁾

123,779

HY 2022: 120,731

Summary of financial performance:

Resilient earnings and Net Asset Value ("NAV"):

· NAV per share of 119.7 pence following payment of dividends to shareholders in line with annual targets

· Positive NAV total return of 1.4% in the period

· On track to meet full year dividend target of 7.57 pence

Record cash generation from underlying assets:

· Second consecutive period of record distributions received from investments

· Prudent balance sheet management maintaining low levels of gearing

· £7 million reinvested into the portfolio

Diversified portfolio reduces risk and enhances returns

· Good progress on development and construction assets - unlocking potential for capital growth

· WADR now 9.4% - providing real return of 6.9% above average long-term inflation assumption

(1) The NAV total return, Net Asset Value per share and dividend cover are alternative performance measures ("APMs"). The APMs within the financial statements are defined on pages 61 to 63 of the Half-year report 2023.

(2) On a paid basis.

(3) The dividend cover is calculated after payment of the first instalment of the EGL tax of £5.2 million. Comparative dividend cover also shows before payment of EGL to aid comparison with prior year.

(4) On a declared basis.

(5) Despite overall energy production increasing in 2023, the avoided emissions figure is lower for the half year 2023 than the half year 2022 - this decrease in avoided emissions is due to the change in the composition of the electricity produced.

(6) Excludes anaerobic digestion ("AD") portfolio.

OUR PORTFOLIO AT A GLANCE

JLEN's portfolio comprises a diversified mix of environmental infrastructure assets.

Portfolio value split by geography

UK	92%
Rest of Europe	8%

Portfolio value split by sector

Wind	28%
Waste & bioenergy	24%
Anaerobic digestion	19%
Solar	14%
Low carbon & sustainable solutions	9%
Controlled environment	5%
Hydro	1%

Portfolio value split by operational status

Operational	91%
Construction	8%
Development	1%

Norway | 1 asset

United Kingdom | 39 assets

Germany | 1 asset

Italy | 1 asset

Total assets

42⁽¹⁾

See our website for more information:

www.jlen.com/portfolio

(1) Does not include investment into Foresight Energy Infrastructure Partners ("FEIP").

CHAIR'S STATEMENT

"In spite of a challenging operating environment, JLEN remains in a strong position to deliver on its operational and financial objectives."

Ed Warner

Chair

On behalf of the Board, I'm pleased to report that JLEN delivered a resilient NAV performance for the six months ended 30 September 2023.

The period under review has continued to be marked by uncertainty. Persistent inflation and rising interest rates, both short- and long term, make it difficult to predict the point at which the peak in the rate tightening cycle might be reached. While electricity prices, key to the prospects for many of JLEN's assets, were less volatile than in the preceding 12 months, geopolitical tensions remained a troubling backdrop against which to forecast and plan.

In spite of a challenging operating environment, JLEN remains in a strong position to deliver on its operational and financial objectives. Whilst the portfolio value was modestly up, NAV per share declined slightly, but the Company continued to pay a dividend that is well covered by returns from its diversified portfolio of environmental infrastructure assets.

JLEN's NAV per share declined by 2.8% in the period, from 123.1 pence to 119.7 pence. This is after the payment of two dividends to shareholders in the period totalling 3.68 pence. Dividend cover in the period was 1.32 times (1.54 times prior to paying the Electricity Generator Levy ("EGL")). The Board is pleased to be able to reaffirm the dividend target of 7.57 pence per share for the full year.

The Board is acutely aware of the discount to NAV at which JLEN's shares and those of its peers continue to trade in the current environment. It is very disappointing nonetheless that JLEN's shares have dropped below their underlying asset value. In light of this derating of JLEN's shares, the Board has worked closely with our Investment Manager, Foresight Group, to establish a clear, disciplined strategy for the allocation of capital that will ensure the continued long‑term success of the Company while reflecting the challenge and opportunity posed by the discount to NAV at which the shares trade. This capital allocation strategy includes active consideration of potential asset disposals, should attractive prices be achievable, that would free up capital for deployment in other ways to benefit shareholders.

In the current market environment, capital generated from JLEN's portfolio and from future asset sales will likely be prioritised towards existing commitments, planned follow-on investments and asset enhancements within our current portfolio, alongside managing the Company's credit facility to maintain a robust balance sheet, as well as the potential for share buybacks.

The Board and the Investment Manager believe that the discount to NAV at which JLEN's shares are currently trading materially undervalues the Company, and so represents an attractive investment opportunity. Share buybacks consequently form an important part of our capital allocation considerations.

The current discount to NAV has heightened significance because, when the Company launched, the Board committed to put forward a discontinuation vote if the Company's shares trade at an average discount of 10% or more over the course of any financial year. The average discount at which the shares have traded in the current financial year to date has been approximately 13%. If a discontinuation vote is triggered, it will be proposed as a special resolution at the 2024 Annual General Meeting. The Board is actively monitoring the share price discount, and will be engaging with shareholders in the coming months to discuss any concerns they may have.

As JLEN approaches its tenth anniversary, the Board is encouraged by the prospects for the portfolio and proud of its track record of delivering consistent dividend growth and NAV growth over its life. The outlook for sustainable infrastructure investment remains positive as the UK and European economies decarbonise to meet net zero emissions targets and find ways to live more sustainably.

We will be suitably cautious in our approach given the prevailing uncertainties, but considering this is a long-term asset class, we view the future with confidence. Thank you to all shareholders for your continued support.

Ed Warner

Chair

24 November 2023

THE INVESTMENT MANAGER'S REPORT

JLEN is managed by Foresight Group LLP ("Foresight" or "Foresight Group") as its external alternative investment fund manager ("AIFM") with discretionary investment management authority for the Company.

Chris Tanner

Investment Manager

Edward Mountney

Investment Manager

Chris Holmes

Investment Manager

For detailed biographies of the team, please see our website https://jlen.com/

About Foresight Group

Foresight Group was founded in 1984 and is a leading listed infrastructure and private equity investment manager with three core investment divisions: Sustainable Infrastructure; Private Equity; and Foresight Capital Management. With a long-established focus on ESG and sustainability‑led strategies, it aims to provide attractive returns to its institutional and private investors from hard-to-access private markets.

Foresight manages over 400 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages 11 regionally focused investment funds across the UK and an SME impact fund supporting Irish SMEs. This team reviews over 2,500 business plans each year and currently supports more than 250 investments in SMEs. Foresight Capital Management manages four strategies across seven investment vehicles.

Foresight operates in eight countries across Europe, Australia and the United States with assets under management ("AUM") of £12.1 billion⁽¹⁾. Foresight Group Holdings Limited listed on the Main Market of the London Stock Exchange in February 2021 and is a constituent of the FTSE 250 index. www.fsg-investors.com

(1) Based on unaudited AUM as at 30 September 2023.

Performance summary

The portfolio continues to benefit from the Company's diversification strategy. Solid operational performance combined with elevated revenues from power sales and RPI-linked cashflows underpinned a dividend cover of 1.32 times for the first six months of the financial year, or 1.54 times before payment of the Electricity Generator Levy. The resulting cash performance of the portfolio added 0.3 pence to the NAV this period.

Anaerobic digestion ("AD") and solar performance have been high points, with above-budget generation, while wind and energy-from-waste have detracted due to low wind resource and occasional unplanned outages respectively.

Electricity and gas prices have continued to fall back modestly over the period, although JLEN continues to benefit from the practice of having a substantial proportion of generation for both electricity and gas on fixed price arrangements, partially insulating the portfolio from price fluctuations. The portfolio is fixed 68% for winter 2023 and 50% for summer 2024. In addition to the changes in power prices, flexible generation revenues available to UK battery storage projects have also reduced. The Company has also made its first payments under the EGL.

JLEN's construction projects progressed well during the period. West Gourdie, its first grid-scale battery storage project, started commercial operations. The controlled environment ("CE") Glasshouse project substantially completed and started growing the first batch of plants post the period end, and conversations are underway with pharmaceutical companies interested in offtake arrangements. The CE Rjukan project is progressing well and on target to begin partial operations early in the new year.

Ongoing build‑out of construction-stage investments provide potential for capital appreciation once they become operational and continue to provide further diversification for the portfolio while balancing the overall risk profile.

Market and opportunities

The investment thesis for environmental infrastructure remains strong. The markets and opportunities remain largely unchanged from those discussed on pages 12 to 16 in the Company's Annual Report 2023.

We continue to be very encouraged by the prospects for the Company's green hydrogen interests in Germany through its investment in developer HH2E. Regulatory developments underpin the case for hydrogen in key markets such as transport and blending with natural gas. Discussions are ongoing with a range of offtakers and we expect a significant proportion of gas produced to be under contract at the point of financial close of the first project.

Although we continue to see opportunities across the spectrum of environmental infrastructure, further investment into new projects will be limited in light of the wider market position and the focus on capital allocation. Additional deployment will be to meet existing firm commitments for construction-stage assets and into opportunities that support or enhance the Company's portfolio.

Risks and risk management

The Company's approach to risk governance and its risk review process, as well as the principal risks to the achievement of the Company's objectives, remain unchanged to those set out in the risks and risk management section on pages 38 to 48 of the Company's Annual Report 2023.

Developments in relation to those principal risks, particularly those which could potentially have a short to medium-term impact during the period to 31 March 2024, are outlined below.

Energy prices

Energy prices have fallen back significantly from the extraordinary levels seen during 2022 and the beginning of 2023. The Company attempts to mitigate the valuation risks associated with forecasted power prices being different to the actual prices achieved by using short-term price fixes and assumptions informed by market forward prices and a blend of three different specialist forecasters where fixes are not in place. Ongoing global events, including the war in Ukraine and the developing crisis in Israel and the Gaza Strip which threatens stability in the region, continue to create volatility for oil and gas prices, with knock-on implications for wholesale markets that the Company's assets sell into. Risks to the valuation related to power price assumptions exist both to the upside and the downside.

Regulation and tax risk

REMA

The UK Government launched a far-ranging consultation about the future of the GB electricity market ("REMA") in 2022, intended to ensure that market arrangements promote affordability for consumers and energy security as the GB system decarbonises. In some scenarios considered in the initial consultation, the basis on which GB electricity‑generating assets and battery storage assets in the JLEN portfolio receive revenues could be profoundly changed.

The government issued initial findings in March 2023, including confirmation that some of the more radical proposals would not be taken forward following market participants' feedback.

Nevertheless, options representing significant change are still being explored, including locational pricing and splitting the wholesale market by technology. The government has said that it will return with a further consultation during the remainder of 2023. Realistic timelines for adoption will probably see the current system remaining in place until the late 2020s. Nevertheless, the assets in the Company's portfolio are long-term infrastructure assets and there is a risk that the current basis for valuing the assets over the long term will need to change to reflect the ultimate outcome of REMA.

Read more about markets and opportunities on pages 12 to 16 in the Annual Report 2023

Renewables Obligation consultation - Fixed Price Certificates

The UK Government launched a consultation into the practicalities of introducing Fixed Price Certificates ("FPCs") into the Renewables Obligation regime in place of Renewable Obligation Certificates ("ROCs") that are issued to qualifying renewables generators for electricity generated. ROCs are the primary subsidy mechanism for onshore wind and large-scale solar. While the introduction of FPCs has always been expected and should be mildly beneficial for ROC-based assets by removing some uncertainty, the consultation asks for industry views on some measures that would be detrimental to the valuation of ROC-based assets. The Investment Manager has engaged with trade bodies and other interested investors in responding to the consultation and notes consistent opposition to these measures; consequently the risk is assessed to be low.

The consultation ended in October 2023 and government has not said when it will publish its findings.

Electricity Generator Levy

The Company has made the first payments on account for tax due under the new EGL. In doing so, the Company has taken advice on the way in which the EGL should apply to its diversified portfolio of assets, including some that pay for feedstock. The legislation is new and there is a moderate risk that the calculation of tax due under the Levy is incorrect.

Inflation, interest rates and discount rates

Inflation in the UK economy has remained high over the period, giving rise to fears for "higher for longer" interest rates to drive inflation down. Higher inflation taken in isolation is helpful for valuations of JLEN assets as many of them benefit from revenue streams that are explicitly linked to the Retail Price Index ("RPI"), including ROCs, Feed-in Tariffs ("FITs") and biomethane-producing assets under the Renewable Heat Incentive ("RHI"). However, higher interest rates have a negative effect; while the large majority of JLEN's debt is project-level finance, fully hedged against interest rate rises, higher interest rates read across into higher discount rates for valuing infrastructure assets. Since 30 September 2022, the Directors have increased discount rates for the portfolio by an average 150 bps, leading to the current weighted average discount rate of 9.4%.

Fear of prolonged high interest rates and resulting lower asset valuations is partly responsible for the discount to NAV at which the listed renewables infrastructure sector is trading; the current share price implies a WADR of 13.4%. This is the highest implied portfolio return since IPO. It is possible that the end of the current rising rate cycle will lead to a reassessment of the appropriate discount rate for assets.

Investment outlook

While the listed renewable infrastructure sector as a whole is facing headwinds and equity markets are likely to remain closed to JLEN and its peers for some time, the fundamental growth story for the sector and for JLEN remains as strong as ever. In the current environment we are focusing our efforts on laying the foundations for future NAV growth through the Company's construction-stage assets, currently 9% of the portfolio.

These assets provide potential for capital growth as they pass through the construction stage and become operational. We are particularly optimistic about the outlook for green hydrogen and its potential to decarbonise many carbon-intensive sectors of the economy, with some analysts predicting that the green hydrogen market will grow exponentially (by 500 times) by 2050⁽¹⁾ to meet net zero targets. We also remain focused on effective allocation of capital and so have paused on starting construction of the two remaining battery energy storage projects given the volatility seen in that market.

Although we see a healthy pipeline of potential investments, for now, available cash generated through the portfolio will be prioritised to meet existing capital commitments, earmarked follow-on investments and targeted enhancements, all with the aim of maintaining and increasing the value of the current portfolio. The Company has sufficient funding to meet its revolving credit facility ("RCF") commitments and will consider asset disposals, as it has successfully done before, where attractive opportunities exist to recycle capital.

We are cautiously optimistic about the future for JLEN and the sector. We have a strong team in place and we will continue to focus on our portfolio management activities to ensure that the Company maximises returns from its existing portfolio. We have confidence in the investment case, and remain committed to continue delivering long‑term sustainable financial returns for shareholders.

(1) The International Energy Agency - https://www.iea.org/.

Read more about risks and risk management on pages 38 to 48 in the Annual Report 2023

INVESTMENT PORTFOLIO AND VALUATION

Investment portfolio

Diversification continues to play a key role for the Company, reducing dependency on a single market, technology type or set of climatic conditions, whilst allowing exposure to a wide opportunity set, as illustrated in the analysis below at 30 September 2023, according to share of portfolio value:

Sector split

Wind	28%
Waste & bioenergy	24%
Anaerobic digestion	19%
Solar	14%
Low carbon & sustainable solutions	9%
Controlled environment	5%
Hydro	1%

Geography

UK	92%
Rest of Europe	8%

Remaining asset life⁽¹⁾

Up to 10 years	9%
11 to 20 years	62%
More than 20 years	29%

Weighted average⁽¹⁾ remaining asset life of the portfolio is 16.8 years.

(1) Based on project revenues from volumes/generation during the period and assumes project cash flow distributions reflect revenue split at each project.

Operational status

Operational	91%
Construction	8%
Development	1%

Valuation method

Discounted cash flow	92%
Cost	8%

Operator exposure

SGRE	17%
Future Biogas	16%
BWSC	11%
Brighter Green Engineering	7%
Vestas	6%
Other	43%

Asset concentration

Largest asset	11%
2nd largest asset	6%
3rd largest asset	6%
4th largest asset	5%
5th largest asset	4%
Top 6-10	16%
Other	52%

Portfolio valuation

The Investment Manager is responsible for carrying out the fair market valuation of the Company's investments, which is presented to the Directors for their approval and adoption. The valuation is carried out on a quarterly basis as at 30 June, 30 September, 31 December and 31 March each year.

The valuation is based on a discounted cash flow analysis of the future expected equity and loan note cash flows accruing to the Group from each operational portfolio investment. Assets under construction are valued at cost until such time as the risks associated with construction have substantially passed. For some technologies with more complex construction activities, this will be when the asset reaches the start of commercial operations, while for others this may be during late-stage construction.

This valuation uses key assumptions which are recommended by Foresight using its experience and judgement, having considered available comparable market transactions and financial market data in order to arrive at a fair market value. An independent verification exercise of the methodology and assumptions applied by Foresight is performed by a leading accountancy firm and an opinion is provided to the Directors. The Directors have satisfied themselves as to the methodology used and the assumptions adopted and have approved the valuation.

The Directors' valuation of the portfolio at 30 September 2023 was £898.9 million, compared to £898.5 million at 31 March 2023. The increase of £0.4 million is the net impact of new acquisitions, cash received from investments, changes in macroeconomic, power price and discount rate assumptions, and underlying growth in the portfolio. A reconciliation of the factors contributing to the growth in the portfolio during the period is shown in the chart in the Half-year report 2023.

The movement in value of investments during the period ended 30 September 2023 is shown in the table below:

	30 Sep 2023 £m	31 Mar 2023 £m
Valuation of portfolio at opening balance	898.5	795.4
Acquisitions in the period (including deferred consideration)	30.0	72.1
Cash distributions from portfolio	(46.2)	(83.6)
Rebased opening valuation of portfolio	882.3	783.9
Changes in forecast power prices	(17.4)	57.7
Changes in economic assumptions	13.5	67.7
Changes in discount rates	(31.4)	(39.1)
Changes in exchange rates	(0.7)	1.0
Balance of portfolio return	52.6	27.3
Valuation of portfolio	898.9	898.5
Fair value of intermediate holding companies	(104.8)	(81.7)
Investments at fair value through profit or loss	794.1	816.8

Allowing for investments of £30.0 million (including deferred consideration) and cash receipts from investments of £46.2 million, the rebased valuation is £882.3 million. The portfolio valuation at 30 September 2023 is £898.9 million (31 March 2023: £898.5 million), representing an increase over the rebased valuation of 1.9% during the period.

Valuation assumptions

Each movement between the rebased valuation and the 30 September 2023 valuation is considered below:

Forecast power prices

After the initial two-year period, the project cash flows assume future electricity and gas prices in line with a blended curve informed by the central forecasts from three established market consultants, adjusted by the Investment Manager for project-specific arrangements and price cannibalisation.

For the Italian investment, project cash flows assume future electricity prices informed by a leading independent market consultant's long‑term projections.

The overall change in forecasts for future electricity and gas prices compared to forecasts at 31 March 2023, net of the EGL, has decreased the valuation of the portfolio by £17.4 million.

The graph in the Half-year report 2023 represents the UK blended weighted power curve used by the Company, reflecting the forecast of three leading market consultants, adjusted by the Investment Manager to reflect PPA/GPA discounts as well as its judgement of capture discounts and a normalised view across the portfolio of expectations of future price cannibalisation resulting from increased penetration of low marginal cost, intermittent generators on the GB network.

Revenue analysis

The graph in the Half-year report 2023 shows the way in which the revenue mix of the portfolio changes over time for future financial years, given the assumptions made regarding future power prices set out above. As expected, merchant revenues increase in later years as the subsidies that projects currently benefit from expire.

On a net present value ("NPV") basis (using the discount rate applicable to each project), the relative significance of each revenue category illustrated is as follows:

Revenue NPV

Subsidy	46%
Merchant power	29%
Long term contracts	11%
Flexible generation	4%
Other merchant revenues	10%

Energy generating portfolio

JLEN's energy generating portfolio includes wind, solar, anaerobic digestion, biomass, EfW and hydropower investments. Revenues in these projects typically consist of a combination of government-backed inflation-linked subsidies, short-term price fixes contracted under a PPA, merchant revenue or other revenues such as those earned from private wire contracts.

Although merchant prices remain elevated compared to long-term projections, there is clear evidence of a decline since the record highs seen during 2022. The Company seeks to minimise the impact of power price volatility by maintaining a programme of rolling price fixes for its energy generating projects, typically having the majority of projects on fixed price arrangements in the near term.

At 30 September 2023, 68% of the renewable energy portfolio's electricity and gas price exposure was subject to fixed prices for the winter 2023/24 season and 50% for the summer 2024 season. See the power price hedging section in the operational review of the Half-year report 2023 for more detail about the latest price fixes in place across the portfolio.

The proportion of Fund revenues that come from the sale of merchant electricity and gas is 24% and 5%, respectively. Despite elevated energy prices, merchant power revenue remains a low proportion and reflects the broader diversification of JLEN's portfolio.

Development-stage investments are not included within the revenue and other analyses in this section due to the nature of their early stage investment lifecycle.

Waste and wastewater treatment concessions

This category consists of availability-based assets structured under the Private Finance Initiative ("PFI")/Public Private Partnership ("PPP") procurement models, whereby revenue is derived from long-term contracts with local authorities.

Other non-energy generating portfolio

The desire to mitigate the effects of climate change stimulates not only opportunities connected to the energy transition but also in wider environmental infrastructure that has improved sustainability credentials over traditional infrastructure approaches in sectors such as transport and food production.

This is reflected in JLEN's diversified portfolio, which includes both grid-scale batteries and non-energy generating assets such as low carbon transport (CNG Foresight) and controlled environment projects, CE Glasshouse (sustainable agriculture) and CE Rjukan (sustainable aquaculture).

Low carbon transport

In the case of JLEN's investment into CNG Foresight, a portfolio of compressed natural gas ("CNG") refuelling stations for heavy goods vehicles located across the UK, the sites generate revenue through a specified margin on CNG dispensed.

Per the terms of the fuel supply contracts, the asset reserves the right to revise pricing to reflect changes in the wholesale price of natural gas and fuel duty, and will annually adjust prices (upwards only) in line with inflation.

Batteries

JLEN's portfolio includes one operational and three c.50MW Battery Energy Storage Systems at varying stages of construction at 30 September 2023. Independent market analysis continues to indicate the importance of prioritising the capture of trading margins over the finite opportunity from revenues generated by the provision of grid services. Therefore, merchant revenues are likely to make up the largest part of the revenue model for these assets.

Whilst these investments do not currently have long-term contractual inflation linkage, revenues are driven by a margin over costs which is expected to be sustained regardless of inflation.

Controlled environment

Controlled environment projects typically face a greater level of market risk than environmental infrastructure projects with subsidy support or long-term contracts. Therefore, the Company has only invested in projects that enjoy a privileged market position over competitors, for example due to physical location, technology or product differentiation.

In the case of JLEN's glasshouse, Foresight's investment is primarily built around the debt service on its senior secured shareholder loan, with some equity participation over time from growth of the underlying horticultural products. The glasshouse is co-located with an existing JLEN anaerobic digestion facility, which itself will receive an additional source of revenue via a private wire supplying low carbon heat and power to the glasshouse. Wastage from the glasshouse produce may also be returned to the AD digester, creating a circular ecosystem.

In the case of CE Rjukan, revenues will primarily be generated from the production of approximately 8,000 tonnes of trout annually, once the site is fully operational in 2025. This will be sold to European and international salmonid markets via an offtake agreement with an established Norwegian seafood distribution company with global reach.

The CE Rjukan investment case is built on the premise of achieving average historic prices evidenced by the Fish Pool Index; however, our experienced operational partner is targeting sales at levels between c.5% and 50% higher than this, underpinned by the higher quality of fish production at CE Rjukan versus the typical fish sold in commodity-based markets.

Whilst these investments do not currently have long-term contractual inflation linkage, the projects retain pricing power and are able to increase prices to maintain margins as the underlying cost base inflates.

The degree of contractual inflation linkage of each category illustrated above is as follows:

The Company's diversification strategy ensures the portfolio benefits from a significant proportion of contracted revenues and revenues earned by non-energy generating assets. Under current forecasts, dividend cover is expected to be healthily covered for the years ahead, with a particularly strong year forecast next financial year - where the Company will benefit from several high price fixes secured in recent years.

Useful economic lives

Useful economic lives ("UELs") of assets are based on the Investment Manager's estimates of the period over which the assets will generate revenue and are periodically reviewed for continued appropriateness. The assumption used for the useful life of investments is the lower of lease duration and 35 years for solar assets, 30 years for wind farms and 20 years for anaerobic digestion facilities - being the life of the RHI subsidy, after which point the Investment Manager conservatively assumes that facilities will cease to operate.

In light of growing evidence to suggest AD facilities may be able to successfully operate for longer durations, the Investment Manager has provided a sensitivity on page 17 of the Half-year report 2023 to illustrate the potential impact on extending the maximum UEL for AD by five years to 25 years.

Economic assumptions

The valuation reflects an uplift in inflation assumptions based on a combination of actual historic inflation and recent independent economic forecasts.

Valuation assumptions for operational assets are set out below:

Economic assumptions used in the portfolio valuation (31 March 2023 figures shown in brackets)

2023

Forecast

Oct 23-Dec 23

Full year

equivalent

2024

2025

2026

2027

2028

2029

2030+

RPI

6.5%

6.7%

(6.5%)

3.5%

(3.0%)

3.0%

(3.0%)

3.0%

(3.0%)

3.0%

(3.0%)

3.0%

(3.0%)

3.0%

(3.0%)

2.25%

(2.25%)

CPI

4.6%

4.77%

(4.4%)

2.5%

(2.25%)

2.25%

(2.25%)

2.25%

(2.25%)

2.25%

(2.25%)

2.25%

(2.25%)

2.25%

(2.25%)

2.25%

(2.25%)

Deposit rates

2.0%

(2.0%)

2.0%

(1.5%)

2.0%

(1.5%)

2.0%

(1.5%)

2.0%

(1.5%)

2.0%

(1.5%)

2.0%

(1.5%)

2.0%

(1.5%)

Corporation tax

25.0%

(25.0%)

25.0%

(25.0%)

25.0%

(25.0%)

25.0%

(25.0%)

25.0%

(25.0%)

25.0%

(25.0%)

25.0%

(25.0%)

25.0%

(25.0%)

Italy

Inflation

2.0%

(5.3%)

2.0%

(2.9%)

2.0%

(2.2%)

2.0%

(1.9%)

2.0%

(1.8%)

2.0%

(2.0%)

2.0%

(2.0%)

2.0%

(2.0%)

Deposit rates

Corporation tax (IRES)

24.0%

(24.0%)

24.0%

(24.0%)

24.0%

(24.0%)

24.0%

(24.0%)

24.0%

(24.0%)

24.0%

(24.0%)

24.0%

(24.0%)

24.0%

(24.0%)

Regional tax (IRAP)

4.8%

(4.8%)

4.8%

(4.8%)

4.8%

(4.8%)

4.8%

(4.8%)

4.8%

(4.8%)

4.8%

(4.8%)

4.8%

(4.8%)

4.8%

(4.8%)

The euro/sterling exchange rate used to value euro-denominated investments was €1.15/£1 at 30 September 2023 (€1.14/£1 at 31 March 2023).

The overall uplift in value resulting from changes to economic assumptions in the period is £13.5 million.

Discount rates

The discount rates used in the valuation exercise represent the Investment Manager's and the Board's assessment of the rate of return for assets with similar characteristics and risk profile. The market discount rates are reviewed on a regular basis and updated to reflect changes in the market and in the project risk characteristics.

Reflecting the sustained increase in UK gilt yields since the start of the year, discount rates have been increased by an average of 0.75% since 31 March 2023 - of which 0.50% was applied at the 30 June 2023 valuation and a further 0.25% at the 30 September 2023 valuation date.

In addition to gilt driven changes, the weighted average discount rate has also increased as a result of continued investment into JLEN's ongoing construction projects, with discount rates in excess of the portfolio weighted average.

Mitigating these movements is a reduction in the discount rate applied to JLEN's controlled environment glasshouse investment, reflecting successful delivery of key construction milestones as the project nears operational status. The impact of the change is an uplift in value of £4.2 million (0.6 pence per share).

As in previous valuations, the discount rate used for energy generating asset cash flows which have received lease extensions beyond the initial investment period of 25 years retains a premium of 1% for subsequent years, reflecting the merchant risk of the expected cash flows beyond the initial 25-year period.

Taking the above into account and including an increase in the number and value of assets in construction, the overall weighted average discount rate ("WADR") of the portfolio is 9.4% at 30 September 2023 (31 March 2023: 8.4%).

The WADR applied to each of the principal operational sectors within the portfolio is displayed in the table in the Half-year report 2023, noting this represents a blend of levered and unlevered investments and therefore the relevant gearing of each sector is also shown.

	Weighted average discount rate	Gearing
Wind	8.7%	35%
Waste & bioenergy	9.9%	11%
Anaerobic digestion	8.6%	--
Solar	7.6%	9%
Batteries	10.6%	-
Hydropower	8.0%	42%
Aggregate portfolio	9.4%	17.7%

Sectors in which the Investment Manager retains proprietary information, such as controlled environment and low carbon transport, are not disclosed in the table above, although discount rates used in these sectors feed into the portfolio WADR of 9.4%.

The overall decrease in value resulting from changes to discount rates in the period is £31.4 million.

Balance of portfolio return

This represents the balance of valuation movements in the period excluding the factors noted above. The balance of the portfolio return mostly reflects the impact on the rebased portfolio value, all other measures remaining constant, of the effect of the discount rate unwinding and also some additional valuation adjustments from updates to individual project assumptions. The total represents an uplift of £52.6 million.

Of this, in addition to the discount rate unwind, the key valuation adjustments include an uplift of £11.7 million (1.8 pence per share) arising from a sustained uplift in pricing for Renewable Energy Guarantees of Origin ("REGO") certificates and Green Gas Certificates ("GGCs") achieved by the portfolio. REGO prices are now assumed to be £5/MWh until 2028 and £2/MWh for the remaining life of the asset (31 March 2023: £5/MWh for 2024, £3/MWh for 2025 and £0.45/MWh thereafter).

In addition to this, the Company has recognised a number of other low-value cost adjustments and generation reforecasts following the normal course of ongoing reassessment throughout the period.

Valuation sensitivities

The Net Asset Value ("NAV") of the Company is the sum of the discounted values of the future cash flows of the underlying asset financial models, construction and development spend, the cash balances of the Company and UK HoldCo, and the other assets and liabilities of the Group less Group debt.

The portfolio valuation is the largest component of the NAV and the key sensitivities are considered to be the discount rate applied in the valuation of future cash flows and the principal assumptions used in respect of future revenues and costs.

A broad range of assumptions is used in our valuation models. These assumptions are based on long‑term forecasts and are not affected by short‑term fluctuations in inputs, whether economic or technical. The Investment Manager exercises its judgement in assessing both the expected future cash flows from each investment based on the project's life and the financial models produced by each project company and the appropriate discount rate to apply.

The sensitivities below include the impact of the Electricity Generator Levy.

The key assumptions are as follows:

Discount rate

The WADR of the portfolio at 30 September 2023 was 9.4% (31 March 2023: 8.4%). A variance of plus or minus 0.5% is considered to be a reasonable range of alternative assumptions for discount rates.

An increase in the discount rate of 0.5% would result in a downward movement in the portfolio valuation of £19.8 million (3.0 pence per share) compared to an uplift in value of £20.7 million (3.1 pence per share) if discount rates were reduced by the same amount.

Volumes

Base case forecasts for intermittent renewable energy projects assume a "P50" level of electricity output based on reports by technical consultants. The P50 output is the estimated annual amount of electricity generation (in MWh) that has a 50% probability of being exceeded - both in any single year and over the long term - and a 50% probability of being underachieved. Hence the P50 is the expected level of generation over the long term.

The P90 (90% probability of exceedance over a 10‑year period) and P10 (10% probability of exceedance over a 10‑year period) sensitivities reflect the future variability of wind, hydropower and solar irradiation and the uncertainty associated with the long‑term data source being representative of the long-term mean.

Separate P10 and P90 sensitivities are determined for each asset and historically the results presented on the basis they are applied in full to all wind, hydro and solar assets. This implies individual project uncertainties are completely dependent on one another; however, a Portfolio Uncertainty Benefit analysis performed by a third-party technical adviser identified a positive portfolio effect from investing in a diversified asset base.

That is to say that the lack of correlation between wind, hydro and solar variability means P10 and P90 sensitivity results should be considered independent. Therefore, whilst the overall P90 sensitivity decreases NAV by 5.9 pence per share, the impact from wind, hydro and solar separately is only 4.3 pence per share, 0.2 pence per share and 1.4 pence per share respectively, as shown in the chart overleaf.

Agricultural anaerobic digestion facilities do not suffer from similar deviations as their feedstock input volumes (and consequently biogas production) are controlled by the site operator.

For the waste & bioenergy projects, forecasts are based on projections of future input volumes and are informed by both forecasts and independent studies where appropriate. Revenues in the PPP projects are generally not very sensitive to changes in volumes due to the nature of their payment mechanisms.

Electricity and gas prices

Electricity and gas price assumptions are based on the following: for the first two years, cash flows for each project use forward electricity and gas prices based on market rates unless a contractual fixed price exists, in which case the model reflects the fixed price followed by the forward price for the remainder of the two‑year period. For the remainder of the project life, a long‑term blend of central case forecasts from three established market consultants and other relevant information is used, and adjusted by the Investment Manager for project-specific arrangements and price cannibalisation.

The sensitivity assumes a 10% increase or decrease in power prices relative to the base case for each year of the asset life. While power markets can experience movements in excess of +/-10% on a short‑term basis, as has been the case recently, the sensitivity is intended to provide insight into the effect on the NAV of persistently higher or lower power prices over the whole life of the portfolio. The Directors feel that +/-10% remains a realistic range of outcomes over this very long time horizon, notwithstanding that significant movements will occur from time to time.

An increase in electricity and gas prices of 10% would result in an uplift in the portfolio valuation of £38.5 million (5.8 pence per share) compared to a downward movement in value of £38.7 million (5.9 pence per share) if prices were reduced by the same amount.

Should electricity and gas prices fall by 50%, the Company would maintain a resilient dividend cover for the next three financial years, with the dividend being fully covered for two years if prices fell by 100% to £0/MWh and 95% covered in the third year.

Useful economic lives

In line with JLEN's original investment case for anaerobic digestion, the Company continues to apply the conservative valuation assumption that facilities will simply cease to operate beyond the life of their RHI tariff. In recent months, the Investment Manager has seen a growing case of evidence, including several transactional datapoints, pointing towards a positive change in market sentiment for valuing these assets - including the potential to run anaerobic digestion facilities on an unsubsidised basis.

In light of this change, the Investment Manager has provided a sensitivity extending the useful economic lives of its AD portfolio by up to five years - capped at the duration of land rights already in place. Such an extension would result in an uplift in the portfolio valuation of £22.8 million (3.5 pence per share).

Uncontracted revenues on non-energy generating portfolio

An increase in uncontracted revenues of 10% would result in an upward movement in the portfolio valuation of £14.2 million (2.2 pence per share) compared to a decrease in value of £18.7 million (2.8 pence per share) if those revenues were reduced by the same amount.

Feedstock prices

Feedstock accounts for over half of the operating costs of running an AD plant. As feedstocks used for AD are predominantly crops grown within existing farming rotation, they are exposed to the same growing risks as any agricultural product. The sensitivity assumes a 10% increase or decrease in feedstock prices relative to the base case for each year of the asset life.

An increase in the feedstock prices of 10% would result in a downward movement in the portfolio valuation of £7.6 million (1.1 pence per share) compared to an uplift in value of £7.5 million (1.1 pence per share) if prices were reduced by the same amount.

No such sensitivity is applicable to JLEN's biomass investment, where fuel costs are tied under long-term contract.

Inflation

Most projects in the portfolio receive a revenue stream which is either fully or partially inflation‑linked. The inflation assumptions are described in the macroeconomic section on page 13 of the Half-year report 2023. The sensitivity assumes a 0.5% increase or decrease in inflation relative to the base case for each year of the asset life.

An increase in the inflation rates of 0.5% would result in an uplift in the portfolio valuation of £18.3 million (2.8 pence per share) compared to a decrease in value of £19.5 million (2.9 pence per share) if rates were reduced by the same amount.

In light of the current economic environment, actual near-term inflation may vary from assumptions applied within the portfolio valuation. For illustrative purposes, where inflation is higher than JLEN's valuation assumption by 2% for the next two years, NAV would be expected to increase by £18.0 million (2.7 pence per share).

Euro/sterling exchange rates

As the proportion of the portfolio assets with cash flows denominated in euros represents a small proportion of the portfolio value at 30 September 2023, the Directors consider the sensitivity to changes in euro/sterling exchange rates to be insignificant.

Corporation tax

The UK corporation tax assumptions applied in the portfolio valuation are outlined in the notes to the accounts on page 56 of the Half-year report 2023. The sensitivity below assumes a 2% increase or decrease in the rate of UK corporation tax relative to the base case for each year of the asset life.

An increase in the UK corporation tax rate of 2% would result in a downward movement in the portfolio valuation of £14.6 million (2.2 pence per share) compared to an uplift in value of £14.0 million (2.1 pence per share) if rates were reduced by the same amount.

Sensitivities - impact on NAV at 30 September 2023

The chart in the Half-year report 2023 shows the impact of the key sensitivities on NAV per share, with the £ labels indicating the impact of the sensitivities on portfolio value.

Investment portfolio

At 30 September 2023, the Group's investment portfolio comprised interests in 42 investments into several European projects through its investment in FEIP.

Type	Asset	Location	Ownership	Capacity (MW)	Commercial operations date
Wind	Bilsthorpe	England	100%	10.2	Mar 2013
	Burton Wold Extension	England	100%	14.4	Sep 2014
	Carscreugh	Scotland	100%	15.3	Jun 2014
	Castle Pill	Wales	100%	3.2	Oct 2009
	Dungavel	Scotland	100%	26.0	Oct 2015
	Ferndale	Wales	100%	6.4	Sep 2011
	Hall Farm	England	100%	24.6	Apr 2013
	Llynfi Afan	Wales	100%	24.0	Mar 2017
	Moel Moelogan	Wales	100%	14.3	Jan 2003 & Sep 2008
	New Albion	England	100%	14.4	Jan 2016
	Wear Point	Wales	100%	8.2	Jun 2014
			Total	161.0
Waste & bioenergy	Bio Collectors waste management	England	70%	11.7⁽¹⁾	Dec 2013
Waste & bioenergy	Codford Biogas waste management	England	100%	3.8⁽²⁾	2014
	ELWA waste management	England	80%	n/a	2006
	Cramlington biomass combined heat and power	England	100%	32.0⁽³⁾	2018
	Energie Tecnologie Ambiente ("ETA") energy‑from-waste	Italy	45%⁽⁴⁾	16.8	2012
	Tay wastewater treatment	Scotland	33%	n/a	Nov 2001
			Total	64.3
Anaerobic digestion	Biogas Meden	England	100%	5.0⁽⁵⁾	Mar 2016
Anaerobic digestion	Egmere Energy	England	100%	5.0⁽⁶⁾	Nov 2014
	Grange Farm	England	100%	5.0⁽⁶⁾	Sep 2014
	Icknield Farm	England	53%	5.0⁽⁵⁾	Dec 2014
	Merlin Renewables	England	100%	5.0⁽⁶⁾	Dec 2013
	Peacehill Farm	Scotland	49%	5.0⁽⁷⁾	Dec 2015
	Rainworth Energy	England	100%	2.2⁽²⁾	Sep 2016
	Vulcan Renewables	England	100%	13⁽⁶⁾	Oct 2013
	Warren Energy	England	100%	5.0⁽⁶⁾	Dec 2015
			Total	50.2
Solar	Amber	England	100%	9.8	Jul 2012
	Branden	England	100%	14.7	Jul 2013
	CSGH	England	100%	33.5	Mar 2014 & Mar 2015
	Monksham	England	100%	10.7	Mar 2014
	Panther	England	100%	6.5	2011-2014
	Pylle Southern	England	100%	5.0	Dec 2015
			Total	80.2
Low carbon & sustainable solutions	West Gourdie battery storage	Scotland	100%	n/a	June 2023
	Clayfords battery storage	Scotland	50%	n/a	Ready to build
	Lunanhead battery storage	Scotland	50%	n/a	Ready to build
	Sandridge battery storage	England	50%	n/a	Under construction
	CNG Foresight low carbon transport	England	25%⁽⁸⁾	n/a	Various
	HH2E green hydrogen	Germany	n/a	n/a	Development phase
			Total	n/a
Controlled environment	Glasshouse	England	Minority stake	n/a	Under construction
Controlled environment	Rjukan aquaculture system	Norway	Minority stake	n/a	Under construction
			Total	n/a
Hydro	Northern Hydropower	England	100%	2.0⁽⁹⁾	Oct 2011 & Oct 2017
	Yorkshire Hydropower	England	100%	1.8⁽⁹⁾	Oct 2015 & Nov 2016
			Total	3.8
FEIP JLEN has committed €25 million to FEIP	Avalon solar and green hydrogen	Spain	n/a	n/a	Development
	Carna pumped storage hydro and co-located wind	Scotland	n/a	n/a	Under construction
	Kölvallen wind	Sweden	n/a	n/a	Under construction
	MaresConnect interconnector	Republic of Ireland	n/a	n/a	Development and under construction
	Puskakorpi wind	Finland	n/a	n/a	Under construction
	Quartz battery storage	England	n/a	n/a	Development
	Skaftåsen Vindkraft AB wind	Sweden	n/a	n/a	Under construction
	Torozos wind	Spain	n/a	n/a	Dec 2019
	85 Degrees geothermal heat	Netherlands	n/a	n/a	Operational/under construction
	Beleolico	Italy	n/a	n/a	July 2022
	Blue Jay	Scotland	n/a	n/a	Development and under construction
			Total	n/a
Total portfolio			Total	359.5

(1) 10MWth and an additional 1.7MWe capacity through two CHP engines.

(2) Electrical exporting plant measured as MWe.

(3) 26MWe (electrical) and 6MWth (thermal).

(4) Not including FEIP's 45% ownership.

(5) MWth (thermal) and an additional 0.4MWe CHP engine for onsite power provision.

(6) MWth (thermal) and an additional 0.5MWe CHP engine for onsite power provision.

(7) MWth (thermal) and an additional 0.25MWe CHP engine for onsite power provision.

(8) JLEN holds 25% of the "A" shares. "A" shares have a different economic entitlement than "B" shares, including a priority return.

(9) Includes a 1.2MW battery storage.

OPERATIONAL REVIEW

The portfolio has performed well, with financial performance delivering a covered dividend of 1.32 times for the first six months of the financial year, or 1.54 times prior to payment of the Electricity Generator Levy, reinforcing the view that the dividend will be strongly covered by cash generated for the full financial year.

Investment performance

The NAV per share at 30 September 2023 was 119.7 pence, down from 123.1 pence at 31 March 2023.

JLEN has announced an interim dividend of 1.89 pence per share for the quarter ended 30 September 2023, payable on 29 December 2023, in line with the full‑year target of 7.57 pence per share for the year ending 31 March 2024 as set out in the Annual Report 2023.

The Fund experienced a solid six months of financial performance, narrowly missing its budget by 4.1%. The portfolio provided good operational performance, with variances to budget primarily arising from changes in power prices since the start of the year or temporary working capital fluctuations which will be recouped prior to the year end.

Financial performance

As the portfolio diversifies and the proportion of non-energy generating assets increases, the Investment Manager has presented detailed information to better illustrate the financial performance of all sectors within the portfolio.

The chart in the Half-year report 203 shows the budgeted proportion of cash distributions forecast to be received from underlying investments at the start of the financial year, versus the relative over or under-performance during the period under review.

The average all-in price received by the differing technology classes in the UK for their energy volumes generated in the six months ended 30 September 2023 is shown in the table below:

	Half year ended	Year ended
Average all‑in energy price	30 Sep 2023	31 Mar 2023
Wind	£140.89 per MWhe	£383.29 per MWhe
AD electric	£306.71 per MWhe	£197.99 per MWhe
AD gas-to-grid	£142.04 per MWhth	£128.59 per MWhth
Biomass	£230.75 per MWhe	£306.92 per MWhe
Energy-from-waste	€95.36 per MWhe	€128.73 per MWhe
Solar	£243.63 per MWhe	£241.82 per MWhe
Hydro	£279.77per MWhe	£285.66 per MWhe

Power price hedging

JLEN's exposure to wholesale power prices is mitigated by the practice of having a substantial proportion of generation for both electricity and gas on fixed price arrangements for durations ranging from six months out to three years. The extent of generation subject to fixes at 30 September 2023 is as follows:

	Winter 2023	Summer 2024	Winter 2024	Summer 2025
Wind	98%	79%	74%	38%
Solar	100%	100%	80%	-
Biomass	-	-	-	-
Energy-from-waste	-	-	-	-
AD - electric	100%	63%	63%	26%
AD - gas	72%	46%	48%	23%
Hydro	39%	-	-	-
Weighted average	68%	50%	48%	22%

The Investment Manager continues to monitor the market beyond September 2025 for opportunities to fix prices to mitigate risk across the portfolio.

Renewable energy generating assets

The chart in the Half-year report 2023 shows the forecast generation target expected to be achieved at the start of the financial year, versus the relative sector-level over or under-performance against this target during the period under review.

Over this half-year period the renewables segment of the portfolio produced 660GWh (six months to 30 September 2022: 655GWh) of energy, 1.58% below target. The negative variance against the target can be attributed to unseasonably low wind speeds being experienced in the first quarter of the financial year (April to June 2023). Particularly good performances were recorded for the agri-AD and hydro portfolios, both being >5% above the sector targets. All other technologies were at or above the generation targets for the period.

Anaerobic digestion

The AD portfolio is the largest producer of energy on a GWh basis and generated 38% of the GWh energy produced by the JLEN portfolio to 30 September 2023. Generation (measured in GWh thermal generated) was 250GWh, 5% ahead of the sector target, continuing the trend of outperformance that has been seen since the Fund started to acquire AD assets in 2017.

Notable strong performers were Peacehill Gas and Icknield, which significantly outperformed their generation targets by more than 10%. All other sites, with the exception of Grange Farm Energy, exceeded their generation targets.

Due to the optimal growing conditions experienced over the summer, the maize yields realised in the 2023 harvest have met or exceeded expectations, which have allowed specific sites to replenish their buffer stocks following the difficult 2022 harvest. Feedstock prices appear to have stabilised following the reduction fertiliser prices.

Waste & bioenergy

The renewable energy generating segment of the waste & bioenergy portfolio is the second largest producer of energy on a GWh basis and generated 32% of the GWh energy produced by the JLEN portfolio to 30 September 2023. The waste & bioenergy portfolio generated 210GWh over the period to 30 September 2023, 0.4% below its sector target.

The Cramlington biomass plant has recovered extremely well following the completion of the remedial works in early 2023. Power generation was 4% above the generation targets set for this period. Cramlington makes up over 50% of the waste & bioenergy portfolio's generating capacity.

The minor negative variance is explained by occasional unplanned outages at the Italian energy-from-waste plant in June. This was a standard piece of maintenance work required to service the boiler.

Wind

Electricity generation from the wind assets of 142GWh (representing 22% of the portfolio's energy generation for the period) was 13.6% below its sector target due to below‑average wind resource during the period. Total availability for the portfolio was 1.5% below the anticipated levels due to unrelated mechanical issues experienced at four of the wind assets. One of the events involved a gearbox failure which is expected to be compensated via the O&M Liquidated Damages mechanism.

Solar

The solar portfolio generated 55GWh (representing 8% of the portfolio's energy generation for the period), and was 1.9% above its sector generation target.

Both high irradiance levels and good availability across the portfolio contributed to the overperformance recorded for this sector. The Amber and Brandon sites were impacted by Distribution Network Operator ("DNO") outages and inverter issues resulting in periods of curtailed export. The latter is being investigated by the asset managers.

Hydro

The hydro portfolio generated 2GWh (which represents less than 1% of the portfolio's energy generation for the period) and saw a 6.3% positive variance against its sector target. The overperformance was due to high rainfall levels in April 2023 and good operational availability throughout the period.

Assets that support the transition to a lower carbon economy

Waste processing assets

Waste tonnages processed at the ELWA waste project have continued at levels above target. Operational performance targets are consistently exceeded with diversion from landfill at 99.98%, substantially ahead of the 67% contract target. Recycling, at 32%, is ahead of the 22% target.

Tay Wastewater plant in Scotland performed well, with no operational or performance issues in the half‑year period.

Both projects continue to perform well financially.

Low carbon transport

The portfolio of CNG refuelling stations continues to grow and now consists of 11 operational refuelling stations following the completion of sites at Newton Aycliffe and Corby, plus the acquisition of the existing site at Newark. A further two sites are currently under construction, bringing the total to 13. Over the period, the portfolio has performed 3.5% below its fuel dispensed target, due mainly to problems in the supply chain delaying customer uptake of CNG fuelled vehicles. The asset manager has however recently reported that vehicle delivery durations are expected to shorten, resulting in an increase in the expected number of CNG vehicles to be onboarded in the coming six months.

Battery storage assets

Operational assets

The operational batteries that are co-located at two of the Company's hydro assets were traded exclusively in Firm Frequency Response over the period, receipts for which were in line with expectations.

Construction and development projects

Battery storage assets

JLEN owns three construction-stage 49.9MW battery storage assets in the UK. While there have been delays to the construction of the two sites acquired in 2021/22 due to increased lead times for components and grid connection delays, we are pleased that the West Gourdie project concluded its construction phase in May 2023. Achieving this key project milestone enabled the asset to enter its operational phase and actively trade.

The Sandridge project continues to progress through its construction phase and is expected to conclude and commence operations in 2024. The Investment Manager has paused starting construction of the two remaining battery energy storage projects, Lunanhead and Clayfords, given the volatility seen in that market.

Controlled environment

Rjukan project

The CE aquaculture project, Rjukan, is on track to meet its operational commencement date in 2024.

Glasshouse project

The construction phase of the CE agriculture Glasshouse project substantially completed. The first batch of plants has been received and the facility is on track to begin partial operations this year.

Green hydrogen

HH2E development platform

JLEN's first investment into the green hydrogen sector is expected to reach the Final Investment Decision in the coming months.

Acquisitions

Lubmin green hydrogen investment

In July, the Company announced its second green hydrogen development opportunity alongside a consortium including other Foresight-managed funds and its development partner HH2E, a specialist in developing green hydrogen projects to decarbonise industry. The production site is located in Lubmin, Germany. The consortium of investors has approved the Preliminary Investment Decision and the initial investment of up to €9.2 million is being utilised for detailed engineering designs and the procurement of long lead items. The Final Investment Decision is expected in the coming months.

Other investments

Given JLEN's broad mandate, its investment activities can overlap with other Foresight-managed funds. Foresight maintains a clear allocation policy that sets out the way in which common interest in an investment across funds shall be managed. In keeping with this policy, JLEN currently is co-invested in seven projects with other Foresight funds, enabling JLEN to achieve greater diversification with the same level of funds and amplifying JLEN's influence on these assets. All co-investments have market-standard shareholder protections and are ultimately subject to the approval of JLEN's Board, which will take independent advice as appropriate.

FEIP

In January 2020, JLEN announced a commitment of €25 million to Foresight Energy Infrastructure Partners SCSp ("FEIP"), a Luxembourg limited partnership investment vehicle. At 30 September 2023, €14.9 million had been drawn on this commitment.

Financing

In May 2021, JLEN announced that it had signed a new revolving credit facility ("RCF") with a three-year facility agreement which provides for a committed multi‑currency RCF of £170 million and an uncommitted accordion facility of up to £30 million. In April 2023, JLEN announced that it had signed a one-year extension to its RCF and activated the accordion facility.

The RCF provides an increased source of flexible funding outside of equity raisings, with both sterling and euro drawdowns available. The facility will be used to make future acquisitions of environmental infrastructure to add to the current portfolio, as well as covering any working capital requirements.

The interest charged in respect of the renewed RCF is linked to the Company's ESG performance, with JLEN incurring a premium or discount to its margin and commitment fee based on performance against defined targets. Those targets include:

· environmental: increase in the volume of clean energy produced;

· social: the value of contributions to community funds; and

· governance: maintaining a low number of work‑related accidents, as defined under the Reporting of Injuries, Diseases and Dangerous Occurrences ("RIDDOR") by the Health and Safety Executive.

Performance against these targets will be measured annually with the cost of the RCF being amended in the following financial year. Lenders to the facility include HSBC, ING, National Australia Bank, Royal Bank of Scotland and Clydesdale Bank. The margin can vary between 195 bps and 205 bps over SONIA ("Sterling Overnight Index Average") for sterling drawings and EURIBOR for euro drawings, depending on performance against the ESG targets. As reported in the Company's Annual Report 2023, good progress was made against these ESG targets and the Board remains committed to further improving performance against these targets prior to the end of the facility agreement.

As at 30 September 2023, drawings under the RCF were £125.0 million. Under its investment policy, JLEN may borrow up to 30% of its NAV.

In addition to the RCF, several projects have underlying project-level debt. The project-level gearing at 30 September 2023 across the portfolio was 17.7% (31 March 2023: 18.3%). Taking into account the amount drawn down under the RCF, the overall fund gearing at 30 September 2023 was 28.7% (31 March 2023: 27.3%).

At the half-year mark, the weighted average cost of project-level debt was 4.5%, and the weighted average cost of debt after including the RCF was 5.3%.

As at 30 September 2023, the Group, which comprises the Company and the intermediate holding companies, had cash balances of £15.9 million (31 March 2023: £18.0 million).

SUSTAINABILITY AND ESG

ESG overview

Sustainability and ESG considerations are at the heart of the Investment Manager's ethos and operations. They are embedded throughout the investment process and asset management, from initial investment screening through due diligence and into ongoing monitoring and reporting. Overall responsibility for ESG resides with the Board of JLEN, with analysis and reporting against ESG criteria provided by the Fund's Investment Manager. JLEN's approach to ESG is based on three core principles: Assess, Monitor and Engage. JLEN has been focused on progressing each of these principles in order to maintain a robust ESG framework.

JLEN's three ESG objectives are:

· Promote the efficient use of resources

· Develop positive relationships with the communities in which JLEN works

· Ensure effective, ethical governance across the portfolio

Read more about JLEN and the Investment Manager's approach to ESG and sustainability

Read JLEN's 2023 Sustainability and ESG Report

Read Foresight's 2023 Sustainability Report

Developments in the period

JLEN is in the process of developing a Transition Plan in line with the Transition Plant Taskforce ("TPT") Disclosure Framework. The Transition Plan is anticipated to be published within the next year. It believes that the application of the TPT disclosure framework to JLEN is a valuable tool in developing out the Fund's net zero strategy. While JLEN continues to embed assessment and monitoring of ESG criteria into its business-as-usual activities, the Company will review its current ESG KPIs in line with the Transition Plan to ensure they are fit for purpose.

The Investment Manager is making good progress with its plan to complete biodiversity assessments across the portfolio by the end of FY 2024. The majority of sites will benefit from a habitat management plan detailing biodiversity baseline and suggested enhancements which will be implemented in line with the recommended timelines. A few sites where JLEN is not the sole owner are not able to complete the surveys as the works have not yet been approved by the other owners.

Work is underway across the portfolio to address cyber security vulnerabilities that were identified through a recent survey conducted by cyber security specialists, KryptoKloud.

JLEN contributes towards various community benefit funds in the areas where its assets are located. Funds go towards a variety of academic, cultural, economic, environmental, recreational or social benefit projects to uplift communities and provide support where necessary.

Awards

Winner

JLEN is delighted and proud to have been named 'Best Sustainable Alternative Assets Fund' in the 2023 Investment Week Sustainable Investment Awards. The awards recognise fund providers, research and ratings teams, service providers and individuals who have a key part to play in the evolution of sustainable investing.

Shortlisted

AIC Communication Awards 2023

Best ESG communication

National Sustainability Awards 2023

Sustainable Fund of the Year

Investment Week's 2023 Investment

Company of the Year Awards

Best Renewable Energy Infrastructure fund

IR Society Best Practice Awards 2023

Best communications of sustainability

Corporate Reporting Awards 2023

Best ESG report

ESG PERFORMANCE

Environmental

Objective: Promote the efficient use of resources

HY 2023	660GWh
HY 2022	655GWh

660GWh

Renewable energy generated

HY 2023	359,428
HY 2022	351,500

359,428 tonnes

Waste diverted from landfill

HY 2023	123,779
HY 2022	120,731

123,779

UK homes powered by renewable electricity⁽⁴⁾

HY 2023	95,788
HY 2022	96,500

95,788tCO₂e⁽¹⁾

GHG emissions avoided

HY 2023	233,355
HY 2022	231,267⁽²⁾

233,355 tonnes⁽³⁾

Organic fertiliser produced

HY 2023	17.3
HY 2022	14.5

17.3 billion litres

Wastewater treated

HY 2023	1
HY 2022	0

Reportable environmental incident

(1) Despite overall energy production increasing in 2023, the emissions figure is lower for the half year 2023 than the half year 2022. This decrease in avoided emissions is due to the change in the composition of the electricity produced.

(2) Estimate based on the asset production value as this figure was not reported in H1 2022.

(3) In some instances, the six months of data was not available and in that case the tonnages were estimates based on the previous year's figures.

(4) Excludes AD portfolio.

Social

Objective: Develop positive relationships with the communities in which JLEN works

HY 2023	235
FY 2023	201

235

Number of FTE jobs supported⁽¹⁾

HY 2023	2
HY 2022	0

Reportable H&S incidents

Governance

Objective: Ensure effective, ethical governance across the portfolio

HY 2023	14
HY 2022	19

H&S audits undertaken

HY 2023	22
FY 2023⁽²⁾	20

Site visits conducted by Foresight

Environmental Health and Safety Incidents

JLEN takes its environmental and health and safety responsibilities very seriously and seeks to ensure effective management of these issues in both its own operations and in its investment portfolio. JLEN aims to manage risks and incidents in a fair and transparent manner with appropriate action to reduce risk wherever possible. This report identifies the reportable environmental and health and safety incidents in the JLEN portfolio for the six months to 30 September 2023.

H&S incidents (RIDDOR or equivalent)⁽³⁾	2
Environmental incidents (reportable to Environment Agency or equivalent)⁽⁴⁾	1

(1) Full-time equivalent ("FTE") jobs are calculated using total hours worked over the course of the year.

(2) This metric was not reported on in HY 2022, as a result, the FY 2023 figure is disclosed instead.

(3) RIDDOR 1: CNG - High pressure gas release - near miss. Action taken: staff education on proper equipment use.

RIDDOR 2: Cramlington - Finger injury, caused by manual handling. Action taken: improving staff education on manual handling.

(4) ETA Manfredonia - nitrogen oxides ("NOx") limit exceeded due to equipment breakage - safety mechanism prevented further release of NOx, action taken: equipment replaced.

ESG REPORTING

ESG reporting

JLEN continues to embed assessment and monitoring of its ESG KPIs into its business‑as‑usual activities. Regular monitoring of the portfolio against the ESG KPIs occurs through monthly management team meetings, which discuss:

· the performance of the investment portfolio against the KPIs; and

· progress made in improving data collection and reporting.

JLEN has mapped its portfolio against the United Nations Sustainable Development Goals ("SDGs"); it presents quantitative reporting against eight of the 17 goals. For details, see pages 99 and 100 of the Annual Report 2023.⁽¹⁾

The Board and the Investment Manager believe that the nature of JLEN's business and strategy is intrinsically aligned to the goal of a greener and less carbon intensive future and consider the Task Force on Climate-related Financial Disclosures ("TCFD") to be a positive step in driving that direction. As a result, JLEN has voluntarily included climate-related financial disclosures in its Annual Report 2023. Work is ongoing to further understand its portfolio risks and opportunities and to further develop its approach to climate-related issues.

JLEN is proud to be an Article 9 fund under the EU Sustainable Finance Disclosure Regulation. For recent disclosures, please see our Annex III⁽²⁾ and Annex V⁽²⁾ disclosures available on the JLEN website: www.jlen.com

Emissions reporting

Although JLEN's investment activities make a significant and quantifiable contribution to climate change mitigation, there are still emissions associated with the operation and maintenance of the portfolio.

To minimise its direct carbon footprint, the Company is aiming to increase the number of its operational sites on renewable tariffs, and update on the progress thereof will be provided at the year end.

(1) https://jlen.com/investor-relations/publications/.

(2) https://jlen.com/sustainability/publications/.

ESG CASE STUDY

Cultivating a circular economy

Bio Collectors⁽¹⁾ and New Covent Garden Market are powering towards a greener future together.

Overview

New Covent Garden Market ("NCGM") in Nine Elms London, is the largest fruit, vegetable and flower market in the United Kingdom. It covers a site of 35 acres and is home to 152 fruit, vegetable and flower wholesalers. The market provides ingredients to many of London's restaurants, hotels, schools, prisons, hospitals and catering businesses.

Background

In January 2021, Bio Collectors were contracted to manage food waste collections from the New Covent Garden Market with the goal to provide a more sustainable solution for the process of transportation and recycling of the food waste.

Solution

Bio Collectors implemented daily collections of a bulk trailer, which is transported on specialist CNG trucks powered by biogas from the food waste collected from their customers, including NCGM. The use of CNG vehicles powered by biogas has helped to significantly reduce the carbon footprint and the reliance on fossil fuels. The food is processed at their AD facility in Mitcham, which is strategically located within eight miles of the market, reducing congestion and pollution in central London by limiting the distance the waste has to travel. The biogas produced from recycling the food waste is fed directly into the National Grid and used by local homes and businesses as well as powering Bio Collectors' CNG vehicles, further reducing reliance on less sustainable sources. Bio Collectors, through its AD facility, produces electricity which is used to power the plant. The process also produces a nutrient-rich fertiliser, called digestate, which is provided to local farms in Surrey, helping to rejuvenate the soil and improve the quality of their crops without the need for damaging, and environmentally unfriendly, chemical alternatives.

The partnership delivered⁽²⁾:

4,543 tonnes food waste. Bio Collectors waste removal and AD process produced Enough electricity to potentially power

1,218 homes per year and Gas produced can heat up to 439 homes per year. Avoid use of 5,000 litres diesel =13 tonnes of CO₂ avoided, 3,453 tonnes of bio-fertiliser =284 acres of land fertilised, 3,453 tonnes of bio-fertiliser =284 acres of land fertilised

FINANCIAL REVIEW

Analysis of financial results

The financial statements of the Company for the six‑month period ended 30 September 2023 are set out on pages 38 to 60 of the Half-year report 2023.

The Company prepared the condensed unaudited financial statements for the six‑month period to 30 September 2023 in accordance with IAS 34 as adopted by the UK and issued by the International Accounting Standards Board. In order to continue providing useful and relevant information to its investors, the financial statements also refer to the "Group", which comprises the Company, its wholly owned subsidiary (JLEN Environmental Assets Group (UK) Limited ("UK HoldCo")) and the indirectly held wholly owned subsidiary HWT Limited (which holds the investment interest in the Tay project).

Key investment metrics

	Period ended	Period ended	Year ended
	30 Sep	30 Sep	31 Mar
All amounts presented in £million (except as noted)	2023	2022	2023
Net assets⁽¹⁾	792.1	829.6	814.6
Portfolio value⁽²⁾	898.9	890.2	898.5
Operating income and gains on fair value of investments	6.9	94.9	108.4
Net Asset Value per share⁽³⁾	119.7p	125.4p	123.1p
Distributions, repayments and fees from portfolio	46.2	43.5	83.6
Profit before tax	1.9	89.7	98.3
Gross Asset Value⁽³⁾	1,109.8	1,111.4	1,119.8
Market capitalisation⁽³⁾	653.6	787.2	791.2
Share price⁽³⁾	98.8p	119.0p	119.6p
Total shareholder return⁽³⁾	70.1%	92.4%	99.0%
Annualised total shareholder return⁽³⁾	5.7%	8.0%	7.9%

(1) Also referred to as "NAV".

(2) Classified as investments at fair value through profit or loss on the statement of financial position.

(3) Net Asset Value per share, share price, market capitalisation and gross asset value are alternative performance measures ("APMs"). The APMs within the accounts are defined on pages 61 to 63.

Net assets

Net assets decreased from £814.6 million at 31 March 2023 to £792.1 million at 30 September 2023.

The net assets of £792.1 million comprise £898.9 million portfolio value of environmental infrastructure investments and the Company's cash balances of £0.4 million, partially offset by £104.8 million of intermediate holding companies' net liabilities and other net liabilities of £2.4 million.

The intermediate holding companies' net liabilities of £104.8 million comprise a £125.0 million credit facility loan, partially offset by cash balances of £15.5 million and other net assets of £4.7 million.

Analysis of the Group's net assets at 30 September 2023

	At 30 Sep	At 31 Mar
All amounts presented in £million (except as noted)	2023	2023
Portfolio value	898.9	898.5
Intermediate holding companies' cash	15.5	17.9
Intermediate holding companies' revolving credit facility	(125.0)	(103.5)
Intermediate holding companies' other assets	4.7	3.9
Fair value of the Company's investment in UK HoldCo	794.1	816.8
Company's cash	0.4	0.1
Company's other net liabilities (excluding cash)	(2.4)	(2.3)
Net Asset Value	792.1	814.6
Number of shares	661,531,229	661,531,229
Net Asset Value per share	119.7p	123.1p

At 30 September 2023, the Group (the Company plus intermediate holding companies) had a total cash balance of £15.9 million (31 March 2023: £18.0 million), including £0.4 million in the Company's statement of financial position (31 March 2023: £0.1 million) and £15.5 million in the intermediate holding companies (31 March 2023: £17.9 million), which is included in the Company's statement of financial position within "investments at fair value through profit or loss".

At 30 September 2023, UK HoldCo had drawn £125.0 million of its revolving credit facility (31 March 2023: £103.5 million) which is included in the Company's statement of financial position within "investments at fair value through profit or loss".

The movement in the portfolio value from 31 March 2023 to 30 September 2023 is summarised as follows:

	Period ended	Year ended
	30 Sep	31 Mar
All amounts presented in £million	2023	2023
Portfolio value at start of the period/year	898.5	795.4
Acquisitions/further investments (net of post‑acquisition price adjustments)	30.0	72.0
Distributions received from investments	(46.2)	(83.6)
Growth in value of portfolio	16.6	114.7
Portfolio value	898.9	898.5

Further details on the portfolio valuation and an analysis of movements during the year are provided in the investment portfolio and valuation section on pages 9 to 19 of the Half-year 2023 report.

Profit before tax

The Company's profit before tax for the six‑month period was £1.9 million (six‑month period ended 30 September 2022: £89.7 million), generating earnings of 0.3 pence per share (six‑month period ended 30 September 2022: 13.6 pence per share).

	Six months	Six months
	ended	ended
	30 Sep	30 Sep
All amounts presented in £million (except as noted)	2023	2022
Interest received on UK HoldCo loan notes	15.7	15.7
Dividend received from UK HoldCo	13.8	10.2
Net (loss)/gain on investments at fair value	(22.6)	69.0
Operating income and gains on fair value of investments	6.9	94.9
Operating expenses	(5.0)	(5.2)
Profit before tax	1.9	89.7
Earnings per share	0.3p	13.6p

In the six months to 30 September 2023, the operating income and gains/(losses) on fair value of investments was £6.9 million, including the receipt of £15.7 million of interest on the UK HoldCo loan notes, £13.8 million of dividends also received from UK HoldCo and a net loss on investments at fair value of £22.6 million.

The operating expenses included in the income statement for the period were £5.0 million, in line with expectations. These comprise £4.2 million of Investment Manager fees and £0.8 million operating expenses. The details on how the Investment Manager fees are charged are set out in note 14 to the condensed unaudited financial statements.

Financing at 30 September 2023

£125.0m

drawn on RCF

28.7%

fund gearing⁽¹⁾

(1) Gearing is an alternative performance measure ("APM"). The APMs within the accounts are defined on pages 61 to 63 of the Half-year report 2023.

Ongoing charges

The "ongoing charges"⁽¹⁾ ratio is an indicator of the costs incurred in the day-to-day management of the Fund. JLEN uses the Association of Investment Companies ("AIC") recommended methodology for calculating this ratio, which is an annual figure.

For the year ended 31 March 2023 the ratio was 1.18%. The ongoing charges percentage is calculated on a consolidated basis and therefore takes into consideration the expenses of UK HoldCo as well as the Company's.

Cash flow

The Company had a total cash balance at 30 September 2023 of £0.4 million (31 March 2023: £0.1 million). The breakdown of the movements in cash during the period is shown below.

Cash flows of the Company for the period (£million):

	Six months	Six months
	ended	ended
	30 Sep	30 Sep
	2023	2022
Cash balance at 1 April	0.1	2.0
Net proceeds from share issue/(expenses from previous issues)	-	(0.2)
Interest on loan notes received from UK HoldCo	15.7	15.7
Dividends received from UK HoldCo	13.8	10.2
Directors' fees and expenses	(0.2)	(0.2)
Investment Manager fees	(4.1)	(3.8)
Administrative expenses	(0.6)	(0.4)
Dividends paid in cash to shareholders	(24.3)	(23.0)
Company cash balance at 30 September	0.4	0.3

The Group had a total cash balance at 30 September 2023 of £15.9 million (31 March 2023: £18.0 million) and borrowings under the revolving credit facility of £125.0 million (31 March 2023: £103.5 million). The breakdown of the movements in cash during the period is shown in the following table.

Cash flows of the Group for the period (£million):

	Six months	Six months
	ended	ended
	30 Sep	30 Sep
	2023	2022
Cash distributions from environmental infrastructure investments	46.2	43.5
Administrative expenses	(0.7)	(0.5)
Directors' fees and expenses	(0.2)	(0.2)
Investment Manager fees	(4.1)	(3.8)
Financing costs (net of interest income)	(3.8)	(1.2)
Electricity Generator Levy	(5.2)	-
Cash flow from operations⁽²⁾	32.2	37.8
Net proceeds from share issues	-	-
Expenses from previous share issues	-	(0.2)
Acquisition of investment assets and further investments	(30.0)	(40.1)
Disposal of asset	-	1.6
Acquisition costs (including stamp duty)	(0.3)	(0.3)
Short-term projects debtors	(0.7)	(0.2)
Debt arrangement fee cost	(1.0)	-
Drawdown under the revolving credit facility	22.0	16.6
Dividends paid in cash to shareholders	(24.3)	(23.0)
Cash movement in the period	(2.1)	(7.8)
Opening cash balance	18.0	18.0
Exchange (losses)/gains on cash	-	0.3
Group cash balance at 30 September	15.9	10.5

(1) The ongoing charges ratio is an alternative performance measure ("APM"). The APMs within the accounts are defined on pages 61 to 63 of the Half-year report 2023.

(2) "Cash flow from operations" is an alternative performance measure ("APM"). The APMs within the accounts are defined on pages 61 to 63 of the Half-year report 2023.

During the period, the Group received cash distributions of £46.2 million from its environmental infrastructure investments.

Cash received from investments in the period covered the operating and administrative expenses and financing costs, as well as the dividends declared to shareholders in respect of the six‑month period ended 30 September 2023. Cash flow from operations of the Group of £32.2 million covered dividends paid in the six‑month period to 30 September 2023 of £24.3 million by 1.32x.

The Group anticipates that future revenues from its environmental infrastructure investments will continue to be in line with expectations and therefore will continue to cover future costs as well as planned dividends payable to its shareholders.^.(1)

Dividends

During the period, the Company paid a final interim dividend of 1.79 pence per share in June 2023 (£11.8 million) in respect of the quarter to 31 March 2023. Interim dividends of 1.89 pence per share were paid in September 2023 (£12.5 million) in respect of the quarter to 30 June 2023.

On 24 November 2023, the Board approved an interim dividend of 1.89 pence per share in respect of the quarter ended 30 September 2023 (£12.5 million), which is payable on 29 December 2023.

In line with the 2023 Annual Report, the target dividend for the year to 31 March 2024 is 7.57 pence per share.^.(1)

(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met.

RESPONSIBILITY STATEMENT

The Directors are responsible for preparing the Half-year Report and unaudited condensed interim financial statements in accordance with applicable regulations.

We confirm that to the best of our knowledge:

· the condensed set of unaudited financial statements has been prepared in accordance with United Kingdom adopted International Accounting Standard 34 Interim Financial Reporting and in accordance with the accounting policies set out in the audited Annual Report to 31 March 2023; and

· the Chair's statement and Investment Manager's report meet the requirements of an interim management report and include a fair review of the information required by:

a) DTR 4.2.7R, being an indication of important events during the first six months of the financial year and their impact on the condensed set of unaudited financial statements and a description of principal risks and uncertainties for the remaining six months of the year; and

b) DTR 4.2.8R, being the disclosure of related parties' transactions that have taken place during the first six months of the financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last annual report that could do so.

The Board is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website, and for the preparation and dissemination of financial statements. Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This responsibility statement was approved by the Board of Directors on 24 November 2023 and is signed on its behalf by:

Ed Warner

Chair

24 November 2023

INDEPENDENT REVIEW REPORT

to JLEN Environmental Assets Group Limited

Conclusion

We have been engaged by JLEN Environmental Assets Group Limited (the "Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2023 of the Company, which comprises the condensed unaudited statement of financial position, the condensed unaudited income statement, the condensed unaudited statement of changes in equity, the condensed unaudited statement of cash flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2023 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ("ISRE (UK) 2410") issued by the Financial Reporting Council for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Scope of review section of this report, nothing has come to our attention to suggest that the Directors have inappropriately adopted the going concern basis of accounting or that the Directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410.

However, future events or conditions may cause the Company to cease to continue as a going concern, and the above conclusions are not a guarantee that the Company will continue in operation.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim financial report in accordance with the DTR of the UK FCA. As disclosed in note 2 (a), the annual financial statements of the Company are prepared in accordance with UK-adopted international accounting standards. The Directors are responsible for preparing the condensed set of financial statements included in the half‑yearly financial report in accordance with IAS 34 Interim Financial Reporting.

In preparing the half-yearly financial report, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the scope of review paragraph of this report.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement letter to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Barry Ryan

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants, Guernsey

24 November 2023

CONDENSED UNAUDITED INCOME STATEMENT

for the six months ended 30 September 2023

		Six months	Six months
		ended	ended
		30 Sep 2023	30 Sep 2022
		(unaudited)	(unaudited)
	Notes	£'000s	£'000s
Operating income	8	6,884	94,918
Operating expenses	4	(5,018)	(5,170)
Operating profit		1,866	89,748
Profit before tax		1,866	89,748
Tax	5	-	-
Profit for the period		1,866	89,748
Earnings per share
Basic and diluted (pence)	7	0.3	13.6

The accompanying notes form an integral part of the condensed set of financial statements.

All results are derived from continuing operations.

There are no items of other comprehensive income in either the current or preceding period, other than the profit for the period, and therefore no separate statement of comprehensive income has been presented.

CONDENSED UNAUDITED STATEMENT OF FINANCIAL POSITION

as at 30 September 2023

		30 Sep 2023	31 Mar 2023
		(unaudited)	(audited)
	Notes	£'000s	£'000s
Non-current assets
Investments at fair value through profit or loss	8	794,140	816,800
Total non-current assets		794,140	816,800
Current assets
Trade and other receivables	9	105	143
Cash and cash equivalents		401	143
Total current assets		506	286
Total assets		794,646	817,086
Current liabilities
Trade and other payables	10	(2,557)	(2,518)
Total current liabilities		(2,557)	(2,518)
Total liabilities		(2,557)	(2,518)
Net assets		792,089	814,568
Equity
Share capital account	12	664,401	664,401
Retained earnings	13	127,688	150,167
Equity attributable to owners of the Company		792,089	814,568
Net assets per share (pence per share)		119.7	123.1

The accompanying notes form an integral part of the condensed set of financial statements.

The condensed set of unaudited financial statements were approved by the Board of Directors and authorised for issue on 24 November 2023.

They were signed on its behalf by:

Ed Warner

Chair

Stephanie Coxon

Director

CONDENSED UNAUDITED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 September 2023

		Six months ended 30 Sep 2023 (unaudited)
		Share capital	Retained
		account	earnings	Total
	Notes	£'000s	£'000s	£'000s
Balance at 1 April 2023		664,401	150,167	814,568
Profit and total comprehensive income for the period		-	1,866	1,866
Dividends paid	6, 13	-	(24,345)	(24,345)
Balance at 30 September 2023		664,401	127,688	792,089

		Six months ended 30 Sep 2022 (unaudited)
		Share capital	Retained
		account	earnings	Total
	Notes	£'000s	£'000s	£'000s
Balance at 1 April 2022		664,401	98,504	762,905
Profit and total comprehensive income for the period		-	89,748	89,748
Dividends paid	6	-	(23,021)	(23,021)
Balance at 30 September 2022		664,401	165,231	829,632

The accompanying notes form an integral part of the condensed set of financial statements.

CONDENSED UNAUDITED CASH FLOW STATEMENT

for the six months ended 30 September 2023

		Six months	Six months
		ended	ended
		30 Sep 2023	30 Sep 2022
		(unaudited)	(unaudited)
	Notes	£'000s	£'000s
Profit for the period		1,866	89,748
Adjustments for:
Interest received		(15,701)	(15,744)
Dividends received		(13,800)	(10,200)
Net loss/(gain) on investments at fair value through profit or loss		22,617	(68,974)
Operating cash flows before movements in working capital		(5,018)	(5,170)
Decrease in receivables		38	35
Increase in payables		82	677
Net cash outflow from operating activities		(4,898)	(4,458)

Investing activities
Investments in subsidiaries		-	-
Interest received		15,701	15,744
Dividends received		13,800	10,200
Net cash generated from investing activities		29,501	25,944

Financing activities
Proceeds on issue of share capital		-	-
Expenses relating to issue of shares		-	(150)
Dividends paid	6	(24,345)	(23,021)
Net cash outflow from financing activities		(24,345)	(23,171)

Net increase/(decrease) in cash and cash equivalents		258	(1,685)
Cash and cash equivalents at beginning of period		143	2,022
Cash and cash equivalents at end of period		401	337

The accompanying notes form an integral part of the condensed set of financial statements.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS

for the six months ended 30 September 2023

1. General information

JLEN Environmental Assets Group Limited (the "Company" or "JLEN") is a closed‑ended investment company domiciled and incorporated in Guernsey, Channel Islands, under Section 20 of the Companies (Guernsey) Law, 2008. The shares are publicly traded on the London Stock Exchange under a premium listing. The condensed unaudited financial statements of the Company are for the six‑month period ended 30 September 2023 and have been prepared on the basis of the accounting policies set out below. The financial statements comprise only the results of the Company as its investment in JLEN Environmental Assets Group (UK) Limited ("UK HoldCo") is measured at fair value as detailed in the significant accounting policies below. The Company and its subsidiaries invest in environmental infrastructure projects that utilise natural or waste resources or support more environmentally friendly approaches to economic activity.

2. Significant accounting policies

(a) Basis of preparation

The condensed set of unaudited financial statements were approved and authorised for issue by the Board of Directors on 24 November 2023. The condensed set of unaudited financial statements included in this Half‑year Report have been prepared in accordance with United Kingdom adopted International Accounting Standard 34 "Interim Financial Reporting".

As a result of adopting the amendments to IFRS 10, IFRS 12 and IAS 28 first adopted in the Company's Annual Report to 31 March 2015, the Company is required to hold its subsidiaries that provide investment services at fair value, in accordance with IFRS 9 Financial Instruments.

The Company accounts for its investment in its wholly owned direct subsidiary UK HoldCo at fair value. The Company, together with its wholly owned direct subsidiary UK HoldCo and the intermediate holding subsidiary HWT Limited, comprise the Group (the "Group") investing in environmental infrastructure assets.

The net assets of the intermediate holding companies (comprising UK HoldCo and HWT Limited), which at 30 September 2023 principally comprise working capital balances, the RCF loan and investments in projects, are required to be included at fair value in the carrying value of investments.

Consequently, the Company does not consolidate its subsidiaries or apply IFRS 3 Business Combinations when it obtains control of another entity as it is considered to be an investment entity under IFRS. Instead, the Company measures its investment in its subsidiary at fair value through profit or loss.

The condensed unaudited financial statements incorporate the financial statements of the Company only.

The accounting policies and significant judgements are consistent with those used in the latest audited financial statements to 31 March 2023 and should be read in conjunction with the Company's annual audited financial statements for the year ended 31 March 2023.

The following standards became effective during the period and did not have a material impact on the Company's reported results:

· IFRS 17 Insurance Contracts (applicable for annual periods beginning on or after 1 January 2023);

· Definition of Accounting Estimates - Amendments to IAS 8 (applicable for annual periods beginning on or after 1 January 2023);

· Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 (applicable for annual periods beginning on or after 1 January 2023);

· Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction - Amendments to IAS 12 Income Taxes (applicable for annual periods beginning on or after 1 January 2023); and

· Initial Application of IFRS 17 and IFRS 9 - Comparative Information (Amendments to IFRS 17) (applicable for annual periods beginning on or after 1 January 2023).

Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The fair value of environmental infrastructure investments is calculated by discounting at an appropriate discount rate future cash flows expected to be received by the Company's intermediate holdings, from investments in both equity (dividends and equity redemptions), shareholder and inter-company loans (interest and repayments).

Estimates such as the cash flows are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the fair value of assets not readily available from other sources. Actual results may differ from these estimates.

The project cash flows used in the portfolio valuation at 30 September 2023 reflect contractual fixed price arrangements under PPAs, where they exist, and short‑term market forward prices for the next two years where they do not. After the initial two-year period, the project cash flows assume future electricity and gas prices in line with a blended curve informed by the central forecasts from three established market consultants, adjusted by the Investment Manager for project-specific arrangements and price cannibalisation.

For the Italian investment, project cash flows assume future electricity prices informed by a leading independent market consultant's long‑term projections.

The power price assumptions, including the discount to the near-term power price assumptions, are a key source of estimation and uncertainty. Information on the sensitivity of the portfolio to movement in power price is disclosed in note 15.

The discount rates used in the valuation exercise represent the Investment Manager's and the Board's assessment of the rate of return in the market for assets with similar characteristics and risk profile. The discount rate is deemed to be one of the most significant unobservable inputs and any change could have a material impact on the fair value of investments. Underlying assumptions and discount rates are disclosed in note 8 and sensitivity analysis is disclosed in note 15.

Due to the current economic environment, the rate of inflation is also considered a key source of estimation uncertainty. Information on the sensitivity of the portfolio valuation to movements in the inflation rate is disclosed in note 15.

(b) Going concern

The Directors, in their consideration of going concern, have reviewed comprehensive cash flow forecasts prepared by the Company's Investment Manager, Foresight Group, which are based on prudent market data, a reasonable worst case and a stress test scenario and believe, based on those forecasts and an assessment of the Company's subsidiary's banking facilities, that it is appropriate to prepare the financial statements of the Company on the going concern basis.

In arriving at their conclusion, the Directors assessed the potential risks of the continued energy market disruption, volatility of energy prices and the potential triggering of a discontinuation vote. In addition to these risks, the Directors have also considered the sustainability-related risks covering environmental, social and governance factors, including climate change (in line with the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"), outlined in the financial disclosures in the Annual Report 2023). The Investment Manager has reviewed the portfolio's exposure to these risks in the period under review and has concluded that it is currently not material to the Company, although it continues to monitor the market attentively.

The Board considers the going concern assessment period of 15 months to 31 December 2024 to be appropriate. A longer period than the typical requirement of 12 months has been adopted to factor in the full payment of the September 2024 dividend.

The Company has sufficient headroom in its revolving credit facility to finance its hard commitments relating to construction assets held within the portfolio.

The Directors also considered that the Company has adequate financial resources, and were mindful that the Group had unrestricted cash of £15.9 million (including £0.4 million in the Company) as at 30 September 2023 and a revolving credit and accordion facility (available for investment in new or existing projects and working capital) of £200 million. As at 30 September 2023, the Company's wholly owned subsidiary UK HoldCo had borrowed £125.0 million under the facility, leaving £75.0 million undrawn, of which £2.4 million (€2.8 million) was allocated to letters of credit due to expire during FY 2024. All key financial covenants under this facility are forecast to continue to be complied with for the duration of the going concern assessment period.

The Manager and Directors have assessed the headroom available to meet the revolving credit covenants. The covenants have been tested on downside risk scenarios, with the assumption of 10% lower power price projections compared to the base case, reduced generation levels assuming a P90, a proportion of the portfolio not yielding and a combination of these scenarios. In all scenarios run, including the combined downside case, the Company remained compliant with its key covenants.

The Directors are satisfied that the Company has sufficient resources to continue to operate for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparation of these financial statements.

The Board is of the opinion that the Company is engaged in a single segment of business, being investment in environmental infrastructure to generate investment returns while preserving capital. The financial information used by the Board to allocate resources and manage the Company presents the business as a single segment comprising a homogeneous portfolio.

(d) Statement of compliance

Pursuant to the Protection of Investors (Bailiwick of Guernsey) Law, 2020 the Company is a registered closed-ended investment scheme. As a registered scheme, the Company is subject to certain ongoing obligations to the Guernsey Financial Services Commission, and is governed by the Companies (Guernsey) Law, 2008 as amended.

3. Seasonality

Neither operating income nor profit are impacted significantly by seasonality. While meteorological conditions resulting in fluctuation in the levels of wind and sunlight can affect revenues of the Company's environmental infrastructure projects, due to the diversified mix of projects, these fluctuations do not materially affect the Company's operating income or profit.

4. Operating expenses

	Six months	Six months
	ended	ended
	30 Sep 2023	30 Sep 2022
	(unaudited)	(unaudited)
	£'000s	£'000s
Investment management fees	4,227	4,237
Directors' fees and expenses	172	160
Administration fee	56	55
Other expenses	563	718
	5,018	5,170

5. Tax

Income tax expense

The Company has obtained exempt status from income tax in Guernsey under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. JLEN is charged an annual exemption fee of £1,200.

The income from its investments is therefore not subject to any further tax in Guernsey, although the investments provide for and pay taxation at the appropriate rates in the jurisdictions in which they operate. The underlying tax within the subsidiaries and environmental infrastructure assets, which are held as investments at fair value through profit or loss, is included in the estimate of the fair value of these investments.

6. Dividends

	Six months	Six months
	ended	ended
	30 Sep 2023	30 Sep 2022
	(unaudited)	(unaudited)
	£'000s	£'000s
Amounts recognised as distributions to equity holders during the period (pence per share):
Final dividend for the year ended 31 March 2023 of 1.79 (31 March 2022: 1.70)	11,842	11,246
Interim dividend for the quarter ended 30 June 2023 of 1.89 (30 June 2022: 1.78)	12,503	11,775
	24,345	23,021

A dividend for the quarter to 30 September 2023 of 1.89 pence per share was approved by the Board on 24 November 2023 and is payable on 29 December 2023. The dividend has not been included as a liability at 30 September 2023.

7. Earnings per share

Earnings per share is calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of ordinary shares in issue during the period:

	Six months	Six months
	ended	ended
	30 Sep 2023	30 Sep 2022
	(unaudited)	(unaudited)
	£'000s	£'000s
Earnings
Earnings for the purposes of basic and diluted earnings per share, being net profit attributable to owners of the Company	1,866	89,748
Number of shares
Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share	661,531,229	661,531,229

The denominator for the purposes of calculating both basic and diluted earnings per share is the same, as the Company has not issued any share options or other instruments that would cause dilution.

	Six months	Six months
	ended	ended
	30 Sep 2023	30 Sep 2022
	(unaudited)	(unaudited)
	£'000s	£'000s
Basic and diluted earnings per share (pence)	0.3	13.6

8. Investments at fair value through profit or loss

As set out in note 1, the Company accounts for its interest in its 100% owned subsidiary UK HoldCo as an investment at fair value through profit or loss. UK HoldCo in turn owns investments in intermediate holding companies and environmental infrastructure projects.

The table below shows the movement in the Company's investment in UK HoldCo as recorded on the Company's statement of financial position:

	30 Sep 2023	31 Mar 2023
	(unaudited)	(audited)
	£'000s	£'000s
Fair value of environmental infrastructure investments	898,941	898,539
Fair value of intermediate holding companies	(104,801)	(81,739)
Total fair value of investments	794,140	816,800

Reconciliation of movement in fair value of portfolio of assets

The table shows the movement in the fair value of the Company's portfolio of environmental infrastructure assets. These assets are held through other intermediate holding companies. The table also presents a reconciliation of the fair value of the asset portfolio to the Company's condensed unaudited statement of financial position as at 30 September 2023, by incorporating the fair value of these intermediate holding companies.

	Six months to 30 Sep 2023 (unaudited)			Year to 31 Mar 2023 (audited)
		Cash, working			Cash, working
		capital and debt			capital and debt
		in intermediate			in intermediate
	Portfolio	holding		Portfolio	holding
	value	companies	Total	value	companies	Total
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Opening balance	898,539	(81,739)	816,800	795,408	(32,553)	762,855
Acquisitions
Portfolio of assets acquired/further investment	29,954	-	29,954	72,050	-	72,050
Disposal of assets	-	-	-	-	-	-
	29,954	-	29,954	72,050	-	72,050
Growth in portfolio⁽¹⁾	16,680	-	16,680	114,690	-	114,690
Cash yields from portfolio to intermediate holding companies	(46,232)		-	(83,609)	83,609	-
Yields from intermediate holding companies
Interest on loan notes⁽¹⁾	-	(15,701)	(15,701)	-	(31,401)	(31,401)
Dividends from UK HoldCo to the Company⁽¹⁾	-	(13,800)	(13,800)	-	(23,100)	(23,100)
	-	(29,501)	(29,501)	-	(54,501)	(54,501)
Other movements
Investment in working capital in UK HoldCo	-	(8,512)	(8,512)	-	(22,145)	(22,145)
Administrative expenses borne by intermediate holding companies^(1,2)	-	(9,796)	(9,796)	-	(6,245)	(6,245)
Drawdown of UK HoldCo revolving credit facility borrowings	-	(21,485)	(21,485)	-	(49,904)	(49,904)
Fair value of the Company's investment in UK HoldCo	898,941	(104,801)	794,140	898,539	(81,739)	816,800

(1) The net loss on investments at fair value through profit or loss for the period ended 30 September 2023 is £22,617,000 (year ended 31 March 2023: gain of £53,944,000, six-month period ended 30 September 2022: gain of £68,974,000). This, together with interest received on loan notes of £15,701,000 (year ended 31 March 2023: £31,401,000, six-month period ended 30 September 2022: £15,744,000) and dividend income of £13,800,000 (year ended 31 March 2023: £23,100,000, six-month period ended 30 September 2022: £10,200,000) comprises operating income in the condensed income statement.

(2) Administrative expenses borne by intermediate holding companies includes the payment of the Electricity Generator Levy.

The balances in the table above represent the total net movement in the fair value of the Company's investment. The "cash, working capital and debt in intermediate holding companies" balances reflect investment in, distributions from or movements in working capital and are not value generating.

Fair value of portfolio of assets

The Investment Manager has carried out fair market valuations of the investments as at 30 September 2023. The Directors have satisfied themselves as to the methodology used and the discount rates applied for the valuation. Investments are all investments in environmental infrastructure projects and are valued using a discounted cash flow methodology, being the most relevant and most commonly used method in the market to value similar assets to the Company's. The Company's holding of its investment in UK HoldCo represents its interest in both the equity and debt instruments. The equity and debt instruments are valued as a whole using a blended discount rate and the value attributed to the equity instruments represents the fair value of future dividends and equity redemptions in addition to any value enhancements arising from the timing of loan principal and interest receipts from the debt instruments, while the value attributed to the debt instruments represents the principal outstanding and interest due on the loan at the valuation date.

The valuation techniques and methodology have been applied consistently with the valuation performed in the Company's latest annual audited financial statements.

Discount rates applied to the operating portfolio of assets range from 7.0% to 18.4% (weighted average 9.4%) (at 31 March 2023: from 5.75% to 10.30% - weighted average 8.4%).

The following economic assumptions were used in the discounted cash flow valuations:

	30 Sep 2023 (unaudited)	31 Mar 2023 (audited)
UK - RPI inflation rates	6.7% in 2023, decreasing to 3.5% for 2024, 3% to 2030 and 2.25% thereafter	6.5% for 2023, decreasing to 3% until 2030, decreasing to 2.25% from 2031
Italy - inflation rates	2% flat rate	5.3% for 2023, stepping to 2.9% for 2024, decreasing to 2.2% for 2025, decreasing to 1.9% for 2026, decreasing to 1.8% for 2027, increasing to 2.00% from 2028
UK - deposit interest rates	2.0% for the life of each asset	2.0% for 2023, decreasing to 1.5% from 2024
Italy - deposit rates	0%	0%
UK - corporation tax rates	25% from April 2023 onwards	25% from April 2023 onwards
Italy - corporation tax rates	National rate of 24%, plus applicable regional premiums	National rate of 24%, plus applicable regional premiums
Euro/sterling exchange rate	1.15	1.14

Refer to note 15 for details of the sensitivity of the portfolio to movements in the discount rate and economic assumptions.

The assets in the intermediate holding companies substantially comprise working capital, cash balances and the outstanding revolving credit facility debt; therefore, the Directors consider the fair value to be equal to the book values.

Details of investments made during the period

In July 2023, the Company announced its second green hydrogen development opportunity alongside a consortium including other Foresight managed funds and its development partner HH2E, a specialist in developing green hydrogen projects to decarbonise industry. The production site is located in Lubmin, Germany. The consortium of investors has approved the Preliminary Investment Decision and the initial investment of up to €9.2 million. As at 30 September 2023, the amount invested was €8.1 million.

During the period, £5.9 million was invested in CNG Foresight Limited. The portfolio holds 13 natural gas refuelling stations, 2 of which are in construction phase.

The Group invested €2.0 million into the Thierbach green hydrogen development project during the period.

The Group also invested £7.2 million into the CE Rjukan project, £2.3 million into the Sandridge battery construction asset, £2.0 million into FS West Gourdie battery construction asset, £1.9 million into the CE Glasshouse project, €1.3 million into FEIP and £0.9 million to various other projects.

9. Trade and other receivables

	30 Sep 2023	31 Mar 2023
	(unaudited)	(audited)
	£'000s	£'000s
Prepayments	105	143
Closing balance	105	143

10. Trade and other payables

	30 Sep 2023	31 Mar 2023
	(unaudited)	(audited)
	£'000s	£'000s
Accruals	2,557	2,518
Closing balance	2,557	2,518

11. Loans and borrowings

The Company had no outstanding loans or borrowings at 30 September 2023 (31 March 2023: none), as shown in the Company's condensed unaudited statement of financial position.

As at 30 September 2023, the Company held loan notes of £348.9 million which were issued by UK HoldCo (31 March 2023: outstanding amount of £348.9 million).

As at 30 September 2023, UK HoldCo had an outstanding balance of £125.0 million under a revolving credit facility (31 March 2023: £103.5 million). The loan bears interest of SONIA + 195 to 205 bps and is intended to be repaid by proceeds from future capital raises.

There were no other outstanding loans or borrowings in either UK HoldCo or HWT at 30 September 2023.

12. Share capital account

	30 Sep 2023 (unaudited)		31 Mar 2023 (audited)
	Number of		Number of
	shares	£'000s	shares	£'000s
Opening balance	661,531,229	664,401	661,531,229	664,401
Closing balance	661,531,229	664,401	661,531,229	664,401

All new shares issued rank pari passu and include the right to receive all future dividends and distributions declared, made or paid.

13. Retained earnings

	30 Sep 2023	31 Mar 2023
	(unaudited)	(audited)
	£'000s	£'000s
Opening balance	150,167	98,504
Profit for the period/year	1,866	98,300
Dividends paid	(24,345)	(46,637)
Closing balance	127,688	150,167

14. Transactions with Investment Manager and related parties

Transactions between the Company and its subsidiaries, which are related parties of the Company, are fair valued and are disclosed within note 8. Details of transactions between the Company and related parties are disclosed below.

This note also details the terms of the Company's engagement with Foresight Group as Investment Manager.

Transactions with the Investment Manager

Foresight Group is the Company's Investment Manager. Foresight's appointment as Investment Manager is governed by an Investment Management Agreement.

Foresight Group is entitled to a base fee equal to:

a) 1.0% per annum of the Adjusted Portfolio Value⁽¹⁾ of the Fund⁽²⁾ up to and including £500 million; and

b) 0.8% per annum of the Adjusted Portfolio Value of the Fund in excess of £500 million.

The total Investment Manager fee charged to the condensed unaudited income statement for the six months ended 30 September 2023 was £4,227,425 (six-month period ended 30 September 2022: £4,237,233) of which £2,137,494 remained payable as at 30 September 2023 (31 March 2023: £2,057,000).

(1) Adjusted Portfolio Value is defined in the Investment Management Agreement as:

a) the fair value of the investment portfolio; plus

b) any cash owned by or held to the order of the Fund; plus

c) the aggregate amount of payments made to shareholders by way of dividend in the quarterly period ending on the relevant valuation day, less

i. any other liabilities of the Fund (excluding borrowings); and

ii. any uninvested cash.

(2) Fund means the Company and JLEN Environmental Assets Group (UK) Limited together with their wholly owned subsidiaries or subsidiary undertakings (including companies or other entities wholly owned by them together, individually or in any combination, as appropriate) but excluding project entities.

Other transactions with related parties

The Directors of the Company, who are considered to be key management, received fees for their services for the six‑month period of £167,250 (six-month period ended 30 September 2022: £154,879). The Directors were paid expenses of £4,907 in the six‑month period (six-month period ended 30 September 2022: £5,959).

The Directors held the following shares:

	Total number of shares	Total number of shares
	held at 30 Sep 2023	held at 31 Mar 2023
	(unaudited)	(audited)
Ed Warner	60,000	60,000
Alan Bates	12,500	12,500
Stephanie Coxon	15,000	15,000
Jo Harrison	8,066	8,066
Hans Joern Rieks	95,000	95,000
Nadia Sood	-	-
Richard Ramsay (retired effective 1 April 2023)	-	53,813

All of the above transactions were undertaken on an arm's length basis.

The Directors were paid dividends in the period of £7,013 (six-month period ended 30 September 2022: £8,529).

15. Financial instruments

Financial instruments by category

The Company held the following financial instruments at fair value at 30 September 2023. There are no non‑recurring fair value measurements.

	30 Sep 2023 (unaudited)
			Financial
		Financial	assets at fair	Financial
	Cash and	assets held at	value through	liabilities at
	cash balances	amortised cost	profit or loss	amortised cost	Total
	£'000s	£'000s	£'000s	£'000s	£'000s
Non-current assets
Investments at fair value through profit or loss (Level 3)	-	-	794,140	-	794,140
Current assets
Trade and other receivables	-	105	-	-	105
Cash and cash equivalents	401	-	-	-	401
Total financial assets	401	105	794,140	-	794,646
Current liabilities
Trade and other payables	-	-	-	(2,557)	(2,557)
Total financial liabilities	-	-	-	(2,557)	(2,557)
Net financial instruments	401	105	794,140	(2,557)	792,089

	31 Mar 2023 (audited)
			Financial
		Financial	assets at fair	Financial
	Cash and	assets held at	value through	liabilities at
	cash balances	amortised cost	profit or loss	amortised cost	Total
	£'000s	£'000s	£'000s	£'000s	£'000s
Non-current assets
Investments at fair value through profit or loss (Level 3)	-	-	816,800	-	816,800
Current assets
Trade and other receivables	-	143	-	-	143
Cash and cash equivalents	143	-	-	-	143
Total financial assets	143	143	816,800	-	817,086
Current liabilities
Trade and other payables	-	-	-	(2,518)	(2,518)
Total financial liabilities	-	-	-	(2,518)	(2,518)
Net financial instruments	143	143	816,800	(2,518)	814,568

The Company's investments at fair value through profit or loss are classified at Level 3 within the IFRS fair value hierarchy.

The Level 3 fair value measurements derive from valuation techniques that include inputs to the asset or liability that are not based on observable market data (unobservable inputs).

In the tables above, financial instruments are held at carrying value as an approximation to fair value unless stated otherwise.

Reconciliation of Level 3 fair value measurement of financial assets and liabilities

An analysis of the movement between opening to closing balances of the investments at fair value through profit or loss is given in note 8.

The fair value of the investments at fair value through profit or loss includes the use of Level 3 inputs. Please refer to note 8 for details on the valuation methodology.

Sensitivity analysis of the portfolio

The sensitivity of the portfolio to movements in the discount rate is as follows:

30 Sep 2023 (unaudited)
Discount rate	Minus 0.5%	Base 9.4%	Plus 0.5%
Change in portfolio valuation	Increases £20.7m	£898.9m	Decreases £19.8m
Change in NAV per share	Increases 3.1p	119.7p	Decreases 3.0p

31 Mar 2023 (audited)
Discount rate	Minus 0.5%	Base 8.4%	Plus 0.5%
Change in portfolio valuation	Increases £21.7m	£898.5m	Decreases £20.7m
Change in NAV per share	Increases 3.3p	123.1p	Decreases 3.1p

30 Sep 2023 (unaudited)
Inflation rates	Minus 0.5%	Base 6.7% (2023), 3.5% (2024), then 3% (to 2030) then 2.25% thereafter,	Plus 0.5%
Change in portfolio valuation	Decreases £19.5m	£898.9m	Increases £18.3m
Change in NAV per share	Decreases 2.9p	119.7p	Increases 2.8p

31 Mar 2023 (audited)
Inflation rates	Minus 0.5%	Base 6.5% (2023), then 3% to 2030 then 2.25%	Plus 0.5%
Change in portfolio valuation	Decreases £21.1m	£898.5m	Increases £21.4m
Change in NAV per share	Decreases 3.2p	123.1p	Increases 3.2p

The fair value of the investments is based on a "P50" level of electricity generation for the renewable energy assets, being the expected level of generation over the long term.

Wind, solar and hydro assets are subject to electricity generation risks.

The sensitivity of the portfolio to movements in energy yields based on an assumed "P90" level of electricity generation (i.e. a level of generation that is below the "P50", with a 90% probability of being exceeded) and an assumed "P10" level of electricity generation (i.e. a level of generation that is above the "P50", with a 10% probability of being achieved) is as follows:

30 Sep 2023 (unaudited)
Energy yield: wind	P90 (10 year)	Base P50	P10 (10 year)
Change in portfolio valuation	Decreases £28.1m	£898.9m	Increases £27.1m
Change in NAV per share	Decreases 4.3p	119.7p	Increases 4.1p

Energy yield: solar	P90 (10 year)	Base P50	P10 (10 year)
Change in portfolio valuation	Decreases £9.5m	£898.9m	Increases £9.6m
Change in NAV per share	Decreases 1.4p	119.7p	Increases 1.4p

Energy yield: hydro	P90 (10 year)	Base P50	P10 (10 year)
Change in portfolio valuation	Decreases £1.3m	£898.9m	Increases £1.4m
Change in NAV per share	Decreases 0.2p	119.7p	Increases 0.2p

31 Mar 2023 (audited)
Energy yield: wind	P90 (10 year)	Base P50	P10 (10 year)
Change in portfolio valuation	Decreases £27.3m	£898.5m	Increases £26.2m
Change in NAV per share	Decreases 4.1p	123.1p	Increases 4.0p

Energy yield: solar	P90 (10 year)	Base P50	P10 (10 year)
Change in portfolio valuation	Decreases £10.7m	£898.5m	Increases £10.5m
Change in NAV per share	Decreases 1.6p	123.1p	Increases 1.6p

Energy yield: hydro	P90 (10 year)	Base P50	P10 (10 year)
Change in portfolio valuation	Decreases £1.4m	£898.5m	Increases £1.7m
Change in NAV per share	Decreases 0.2p	123.1p	Increases 0.3p

The sensitivity of the portfolio to movements in electricity and gas prices is as follows:

30 Sep 2023 (unaudited)
Energy prices	Minus 10%	Base	Plus 10%
Change in portfolio valuation	Decreases £38.7m	£898.9m	Increases £38.5m
Change in NAV per share	Decreases 5.9p	119.7p	Increases 5.8p

31 Mar 2023 (audited)
Energy prices	Minus 10%	Base	Plus 10%
Change in portfolio valuation	Decreases £40.9m	£898.5m	Increases £40.4m
Change in NAV per share	Decreases 6.2p	123.1p	Increases 6.1p

Waste & bioenergy assets (excluding Bio Collectors) do not have significant volume and price risks and therefore are not included in the above volume and price sensitivities.

The sensitivity of the portfolio to movements in AD feedstock prices is as follows:

30 Sep 2023 (unaudited)
Feedstock prices	Minus 10%	Base	Plus 10%
Change in portfolio valuation	Increases £7.5m	£898.9m	Decreases £7.6m
Change in NAV per share	Increases 1.1p	119.7p	Decreases 1.1p

31 Mar 2023 (audited)
Feedstock prices	Minus 10%	Base	Plus 10%
Change in portfolio valuation	Increases £7.3m	£898.5m	Decreases £7.8m
Change in NAV per share	Increases 1.1p	123.1p	Decreases 1.2p

The sensitivity of the portfolio to movements in corporation tax rates is as follows:

30 Sep 2023 (unaudited)
Corporation tax	Minus 2%	Base 25%	Plus 2%
Change in portfolio valuation	Increases £14.0m	£898.9m	Decreases £14.6m
Change in NAV per share	Increases 2.1p	119.7p	Decreases 2.2p

31 Mar 2023 (audited)
Corporation tax	Minus 2%	Base 25%	Plus 2%
Change in portfolio valuation	Increases £15.0m	£898.5m	Decreases £15.3m
Change in NAV per share	Increases 1.8p	123.1p	Decreases 1.7p

Euro/sterling exchange rate sensitivity

The Directors consider that the carrying value amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements are approximately equal to their fair values.

Uncontracted revenues on non-energy generating portfolio sensitivity

Non-energy generating assets, such as batteries and controlled environment agriculture and aquaculture are not materially affected by either scarcity of natural resource nor power price markets. Therefore, the Investment Manager has presented a sensitivity illustrating an assumed 10% change in all uncontracted revenues for each year of the asset lives. An increase in uncontracted revenues of 10% would result in an upward movement in the portfolio valuation of £14.2 million (2.2 pence per share) compared to a decrease in value of £18.7 million (2.8 pence per share) if those revenues were reduced by the same amount.

16. Guarantees and other commitments

As at 30 September 2023, the Company has provided a guarantee over the Company's wholly owned subsidiary UK HoldCo's obligations under the £170 million RCF signed on 21 May 2021, the one-year extension to its existing £170 million RCF signed in March 2023 and the £30 million accordion facility activated in March 2023.

As at 30 September 2023, the Group has the following future investment obligations over a 12-month horizon: €8.6 million (equivalent to £7.5 million) to FEIP, £4.7 million to the CNG Foresight project, 187.1 million NOK (equivalent to £15.9 million) to the CE Rjukan project, £3.8 million to the CE Glasshouse project, £4.5 million to Sandridge battery storage, £2.0 million to West Gourdie, €2.4 million (equivalent to £2.1 million) to HH2E Werk Thierbach GmbH and €1.2 million (equivalent to £1.1 million) to the Lubmin green hydrogen investment.

The Company had no other commitments or guarantees.

17. Subsidiaries

The following subsidiaries have not been consolidated in these financial statements as a result of applying the requirements of "Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 27)":

Name	Category	Place of business	Registered office	Ownership interest	Voting rights
JLEN Environmental Assets Group (UK) Limited⁽¹⁾	Intermediate holding	UK	A	100%	100%
HWT Limited	Intermediate holding	UK	B	100%	100%
JLEAG Solar 1 Limited	Operating subsidiary	UK	C	100%	100%
Croft Solar PV Limited	Dormant	UK	C	100%	100%
Cross Solar PV Limited	Dormant	UK	C	100%	100%
Domestic Solar Limited	Dormant	UK	C	100%	100%
Ecossol Limited	Dormant	UK	C	100%	100%
Hill Solar PV Limited	Dormant	UK	C	100%	100%
Share Solar PV Limited	Dormant	UK	C	100%	100%
Residential PV Trading Limited	Dormant	UK	C	100%	100%
Angel Solar Limited	Dormant	UK	C	100%	100%
Easton PV Limited	Project holding company	UK	D	100%	100%
Pylle Solar Limited	Project holding company	UK	D	100%	100%
Second Energy Limited	Operating subsidiary	UK	D	100%	100%
ELWA Holdings Limited	Project holding company	UK	E	80%	80%
ELWA Limited⁽²⁾	Operating subsidiary	UK	E	80%	81%⁽²⁾
JLEAG Wind Holdings Limited	Project holding company	UK	A	100%	100%
JLEAG Wind Limited	Project holding company	UK	A	100%	100%
Amber Solar Parks (Holdings) Limited	Project holding company	UK	D	100%	100%
Amber Solar Park Limited	Operating subsidiary	UK	D	100%	100%
Fryingdown Solar Park Limited	Operating subsidiary (dormant)	UK	D	100%	100%
Five Oaks Solar Parks Limited	Operating subsidiary (dormant)	UK	D	100%	100%
Bilsthorpe Wind Farm Limited	Operating subsidiary	UK	F	100%	100%
Ferndale Wind Limited	Project holding company	UK	F	100%	100%
Castle Pill Wind Limited	Project holding company	UK	F	100%	100%
Wind Assets LLP	Operating subsidiary	UK	F	100%	100%
Hall Farm Wind Farm Limited	Operating subsidiary	UK	F	100%	100%
Branden Solar Parks (Holdings) Limited	Project holding company	UK	D	100%	100%
Branden Solar Parks Limited	Operating subsidiary	UK	D	100%	100%
KS SPV 3 Limited	Operating subsidiary	UK	D	100%	100%
KS SPV 4 Limited	Operating subsidiary	UK	D	100%	100%
Carscreugh Renewable Energy Park Limited	Operating subsidiary	UK	F	100%	100%
Wear Point Wind Limited	Operating subsidiary	UK	F	100%	100%
Monksham Power Ltd	Project holding company	UK	D	100%	100%
Frome Solar Limited	Operating subsidiary	UK	D	100%	100%
BL Wind Limited	Operating subsidiary	UK	F	100%	100%
Burton Wold Extension Limited	Operating subsidiary	UK	F	100%	100%
New Albion Wind Limited	Operating subsidiary	UK	F	100%	100%
Dreachmhor Wind Farm Limited	Operating subsidiary	UK	F	100%	100%
France Wind GP Germany GmbH⁽³⁾	Project holding company	DE	G	100%	100%
France Wind Germany GmbH & Co. KG⁽³⁾	Project holding company	DE	G	100%	100%
CSGH Solar Limited	Project holding company	UK	A	100%	100%
CSGH Solar (1) Limited	Project holding company	UK	A	100%	100%
sPower Holdco 1 (UK) Limited	Project holding company	UK	D	100%	100%
sPower Finco 1 (UK) Limited	Project holding company	UK	D	100%	100%
Higher Tregarne Solar (UK) Limited	Operating subsidiary	UK	D	100%	100%
Crug Mawr Solar Farm Limited	Operating subsidiary	UK	D	100%	100%
Golden Hill Solar (UK) Limited	Project holding company	UK	D	100%	100%
Golden Hill Solar Limited	Operating subsidiary	UK	D	100%	100%
Shoals Hook Solar (UK) Limited	Operating subsidiary	UK	D	100%	100%
CGT Investment Limited	Project holding company	UK	H	100%	100%
CWMNI GWYNT TEG CYF	Operating subsidiary	UK	H	100%	100%
Moelogan 2 (Holdings) Cyfyngedig	Project holding company	UK	H	100%	100%
Moelogan 2 C.C.C.	Operating subsidiary	UK	H	100%	100%
Vulcan Renewables Limited	Operating subsidiary	UK	I	100%	100%
Llynfi Afan Renewable Energy Park (Holdings) Limited	Dormant	UK	A	100%	100%
Llynfi Afan Renewable Energy Park Limited	Operating subsidiary	UK	A	100%	100%
Bio Collectors Holdings Limited	Project holding company	UK	M	70%	70%
Bio Collectors Limited	Operating subsidiary	UK	M	70%	70%
Riverside Bio Limited	Operating subsidiary	UK	M	70%	70%
Riverside AD Limited	Operating subsidiary	UK	M	70%	70%
Green Gas Oxon Limited	Project holding company	UK	J	52.6%	52.6%
Icknield Gas Limited	Operating subsidiary	UK	J	52.6%	52.6%
Egmere Energy Limited	Operating subsidiary	UK	I	100%	100%
Grange Farm Energy Limited	Operating subsidiary	UK	I	100%	100%
Biogas Meden Limited	Operating subsidiary	UK	I	100%	100%
Yorkshire Hydropower Holdings Limited	Project holding company	UK	F	100%	100%
Yorkshire Hydropower Limited	Operating subsidiary	UK	F	100%	100%
Northern Hydropower Holdings Limited	Project holding company	UK	F	100%	100%
Northern Hydropower Limited	Operating subsidiary	UK	F	100%	100%
Warren Power Limited	Project holding company	UK	I	100%	100%
Warren Energy Limited	Operating subsidiary	UK	I	100%	100%
Merlin Renewables Limited	Operating subsidiary	UK	I	100%	100%
Codford Biogas Limited	Operating subsidiary	UK	K	100%	100%
Rainworth Energy Limited	Operating subsidiary	UK	L	100%	100%
FS West Gourdie Limited	Operating subsidiary	UK	D	100%	100%
Spruce Bioenergy Limited	Project holding company	UK	A	100%	100%
Cramlington Renewable Energy Developments Limited	Operating subsidiary	UK	N	100%	100%

(1) JLEN Environmental Assets Group (UK) Limited is the only entity directly held by the Company.

(2) ELWA Holdings Limited holds 81% of the voting rights and a 100% share of the economic benefits in ELWA Limited.

(3) Underlying French wind assets were disposed of in January 2022.

Registered offices

A. C/O Foresight Group LLP, The Shard, 32 London Bridge Street, London SE1 9SG, United Kingdom

B. 50 Lothian Road, Festival Square, Edinburgh, Midlothian EH3 9WJ

C. C/O Freetricity, 1 Filament Walk, Suite 203, Suite 216, Wandsworth, London SW18 4GQ, United Kingdom

D. Long Barn, Manor Farm, Stratton-on-the-Fosse, Radstock BA3 4QF

E. Dunedin House, Auckland Park, Mount Farm, Milton Keynes MK1 1BU

F. C/O Res Limited, Beaufort Court, Egg Farm Lane, Kings Langley, Hertfordshire WD4 8LR

G. Steinweg 3-5, Frankfurt am Main, 60313, Germany

H. Cae Sgubor Ffordd Pennant, Eglwysbach, Colwyn Bay, Conwy LL28 5UN

I. 10-12 Frederick Sanger Road, Guildford, Surrey GU2 7YD

J. Friars Ford, Manor Road, Goring, Reading RG8 9EL

K. C/O External Services Limited, 20 Central Avenue, St Andrews Business Park, Norwich NR7 OHR, United Kingdom

L. C/O Material Change, The Watering Farm, Creeting St. Mary, Ipswich, Suffolk IP6 8ND

M. 10 Osier Way, Mitcham, Surrey CR4 4NF

N. 8 White Oak Square, London Road, Swanley BR8 7AG

18. Events after balance sheet date

A dividend for the quarter ended 30 September 2023 of 1.89 pence per share was approved by the Board on 24 November 2023. Please refer to note 6 for further details.

ALTERNATIVE PERFORMANCE MEASURES ("APMs")

APM	Purpose	Calculation	APM value	Reconciliation to IFRS
Total shareholder return (since IPO and annualised)	Measure of financial performance, indicating the amount an investor reaps from investing since IPO and expressed as a percentage (annualised or total since IPO of the Company)	Since IPO: closing share price as at 30 September 2023 plus all dividends since IPO assumed reinvested, divided by the share price at IPO, expressed as a percentage	70.1%	Calculation for total shareholder return since IPO: closing share price as at 30 September 2023, as per key investments metrics on page 32 of the Half-year report 2023 plus all dividends since IPO assumed reinvested, divided by the share price at IPO, expressed as a percentage
Total shareholder return (since IPO and annualised)		Annualised: closing share price as at 30 September 2023 plus all dividends since IPO assumed reinvested, divided by the share price at IPO, to the power of one over the number of years since IPO, expressed as a percentage	5.7% annualised	Calculation for annualised total shareholder return: closing share price as at 30 September 2023 as per key investment metrics on page 32 of the Half-year report 2023 plus all dividends since IPO assumed reinvested, divided by the share price at IPO, to the power of one over the number of years since IPO, expressed as a percentage
Net Asset Value per share	Allows investors to gauge whether shares are trading at a premium or a discount by comparing the Net Asset Value per share with the share price	The net assets divided by the number of ordinary shares in issuance	119.7 pence	The calculation divides the net assets as per the statement of financial position on page 39 of the Half-year report 2023 by the closing number of ordinary shares in issue as per note 12 page 48 of the Half-year report 2023
Market capitalisation	Provides an indication of the size of the Company	Closing share price as at 30 September 2023 multiplied by the closing number of ordinary shares in issuance	£653.6 million	The calculation uses the closing share price as at 30 September 2023 as per the key investment metric table on page 32 of the Half-year report 2023 and the closing number of ordinary shares as per note 12 of the financial statements on page 48 of the Half-year report 2023
Gross Asset Value ("GAV")	A measure of the value of the Company's total assets Gross Asset Value on investment basis including debt held at SPV level	The sum of total assets of the Company as shown on the statement of financial position and the total debt of the Group and underlying investments	£1,109.8 million	This is the total debt (RCF drawn: £125.0 million plus project level debt: £192.8 million) plus the Net Asset Value as per statement of financial position on page 39 of the Half-year report 2023
Gearing	Ascertain financial risk in the Group's balance sheet	Total debt of the Group and underlying investments as a percentage of GAV	28.7%	The calculation uses the total debt (RCF drawn: £125.0 million plus project level debt: £192.8 million) and shows this as a percentage of the GAV
Distributions, repayments and fees from portfolio	A measure of performance from the underlying portfolio	Total cash received from investments in the period	£46.2 million	As per "Cash flows of the Group for the period", also titled "Cash distributions from environmental infrastructure investments" on page 34 of the Half-year report 2023
Cash flow from operations of the Group	Gauges operating revenues and expenses of the Group	As per the "Cash flows of the Group for the period" table on page 34 of the Half-year report 2023, the calculation takes the cash distributions from environmental infrastructure investments and subtracts the following: administrative expenses, Directors' fees and expenses, Investment Manager fees, financing costs (net of interest income)	£32.2 million	Detailed breakdown as per page 34 of the Half-year report 2023 in the "Cash flows of the Group for the period"
Cash dividend cover	Investors can gauge the ability of the Group to generate cash surplus after payment of dividend	Cash flow from operations of the Group divided by dividend paid within the reporting period	1.32x	The calculation uses the cash flows from operations as per "Cash flows of the Group for the period" on page 34 of the Half-year report 2023 and the dividends paid in cash to shareholders as per the cash flow statement on page 41 of the Half-year report 2023.
Ongoing charges ratio	A measure of the annual reduction in shareholder returns due to operational expenses, based on historical data	The ongoing charges have been calculated, in accordance with AIC guidance, as annualised ongoing charges (i.e. excluding acquisition costs and other non-recurring items) divided by the average published undiluted Net Asset Value in the period. Total annualised ongoing charges include Investment Manager fees, legal and professional fees, administration fees, Directors' fees	1.18%	Annualised ongoing charges for the year ended 31 March 2023 have been calculated as £9.7 million. The ongoing charges ratio divides this by the published average Net Asset Value over the last four quarters to the calculation date (including 31 March 2023)
NAV total return since IPO	Measure of financial performance (annualised), which indicates the movement of the value of the Company since IPO	Closing NAV per ordinary share as at 30 September 2023 plus all dividends since IPO assumed reinvested, divided by the NAV at IPO, to the power of 1, over the number of years since IPO	122.9%	Calculated as the closing NAV per ordinary share as per the Statement of Financial Position on page 39 of the Half-year report 2023.

GLOSSARY OF KEY TERMS

anaerobic digestion

AIFM

Alternative Investment Fund Manager

AIFM Directive

the EU Alternative Investment Fund Managers Directive (No. 2011/61/EU)

APMs

alternative performance measures are financial measures that are not currently defined or specified in the applicable financial reporting framework

bps

basis points

business day

means any day (other than a Saturday, Sunday or bank holiday) on which commercial banks are open for non automated business in London and Guernsey

the Company or JLEN or the Fund

JLEN Environmental Assets Group Limited (formerly John Laing Environmental Assets Group Limited)

controlled environment

refers to the science of cultivating human-grade produce in a contained structure that is precisely regulated to ensure control over environmental conditions such as lighting, temperature, humidity, water supply, air quality, nutrient content etc.

discontinuation vote

As part of the Company's discount management policies, the Board intends to propose a discontinuation vote if the ordinary shares trade at a significant discount to Net Asset Value per share for a prolonged period of time. If, in any financial year, the ordinary shares have traded, on average, at a discount in excess of 10% to the Net Asset Value per share, the Board will propose a special resolution at the Company's next annual general meeting that the Company ceases to continue in its present form. If such vote is passed, the Board will be required to formulate proposals to be put to shareholders within four months to wind up or otherwise reconstruct the Company, bearing in mind the illiquid nature of the Company's underlying assets. The discount prevailing on each business day will be determined by reference to the closing market price of ordinary shares on that day and the Net Asset Value per share

DNO

Distribution Network Operator

EGL

Electricity Generator Levy

ESG

Environmental, Social and Governance

European Union

FEIP

Foresight Energy Infrastructure Partners

Foresight Group or Foresight

Foresight Group LLP

FPCs

Fixed Price Certificates

GHG

greenhouse gas

GPA

gas purchase agreement

Group

JLEN Environmental Assets Group Limited and its intermediate holding companies UK HoldCo and HWT Limited

GWh

gigawatt hour

intermediate holding companies

companies within the Group which are used as pass-through vehicles to invest in underlying environmental infrastructure assets, namely UK HoldCo and HWT Limited

Investment Manager

Foresight Group

IPO

Initial Public Offering

MWe

megawatt electric

MWh

megawatt hour

MWhth

megawatt hours of heat

NAV

Net Asset Value

Net Asset Value per share

The net assets of the Company divided by the number of ordinary shares in issuance

NOx

nitrogen oxides

ordinary shares

means ordinary shares of no par value each in the capital of the Company

portfolio

the 42 assets in which JLEN had a shareholding as at 30 September 2023

portfolio valuation

the sum of all the individual investments' net present values

PPAs

Power Purchase Agreements

PPP/PFI

the Public Private Partnership procurement model

PRI

Principles for Responsible Investment

price cannibalisation

the depressive influence on the wholesale power price at timings of high output from intermittent weather-driven generation such as solar and wind

RCF

revolving credit facility

REMA

review of electricity market arrangements

RIDDOR

Reporting of Injuries, Diseases and Dangerous Occurrences Regulations

ROCs

Renewables Obligation Certificates

RPI

Retail Price Index

SFDR

Sustainable Finance Disclosure Regulation

SONIA

Sterling Overnight Index Average

SPV

special purpose vehicle

TCFD

Task Force on Climate-related Financial Disclosures

total shareholder return

total shareholder return combines the share price movement and dividends since IPO expressed as an annualised percentage

UK HoldCo

JLEN Environmental Assets Group (UK) Limited, wholly owned subsidiary of JLEN Environmental Assets Group Limited

WADR

weighted average discount rate

KEY COMPANY DATA

Company information	JLEN Environmental Assets Group Limited is a Guernsey‑registered closed‑ended investment company (registered number 57682) with a premium listing on the London Stock Exchange and a constituent of the FTSE 250 index
Registered address	1 Royal Plaza, Royal Avenue, St Peter Port, Guernsey GY1 2HL
Ticker/SEDOL	JLEN/BJL5FH8
Company year end	31 March
Dividend payments	Quarterly in March, June, September and December
Investment Manager	Foresight Group LLP, No OC300878, registered in England and Wales and authorised and regulated by the Financial Conduct Authority
Company Secretary and Administrator	Sanne Fund Services Limited, a company incorporated in Guernsey on 13 April 2005 (registered number 43046)
Market capitalisation	£653.6 million at 30 September 2023
Investment Manager fees	1.0% per annum of the Adjusted Portfolio Value of the investments up to £0.5 billion, falling to 0.8% per annum for investments above £0.5 billion. No performance or acquisitions fees
Investment Manager term	Rolling one-year notice
ISA, PEP and SIPP status	The ordinary shares are eligible for inclusion in PEPs and ISAs (subject to applicable subscription limits) provided that they have been acquired in the market, and they are permissible assets for SIPPs
AIFMD status	The Company is classed as an externally managed Alternative Investment Fund under the Alternative Investment Fund Managers Regulations 2013 and the AIFM Directive. The Investment Manager acts as the Company's AIFM
Non-mainstream pooled investment status	The Board conducts the Company's affairs, and intends to continue to conduct the Company's affairs, such that the Company would qualify for approval as an investment trust if it were resident in the United Kingdom. It is the Board's intention that the Company will continue to conduct its affairs in such a manner and that independent financial advisers should therefore be able to recommend its ordinary shares to ordinary retail investors in accordance with the FCA's rules relating to non‑mainstream pooled investment products
FATCA	The Company has registered for FATCA and has a GIIN number 2BN95W.99999.SL.831
Investment policy	The Company's investment policy is set out on pages 29 to 31 of the Annual Report 2023
Website	www.jlen.com

DIRECTORS AND ADVISERS

Directors

Ed Warner (Chair)

Stephanie Coxon (Senior Independent Director)

Alan Bates

Jo Harrison

Hans Joern Rieks

Nadia Sood

Administrator to the Company, Company Secretary and registered office

Sanne Fund Services (Guernsey) Limited (formerly Praxis Fund Services)

1 Royal Plaza

Royal Avenue

St Peter Port

Guernsey GY1 2HL

Channel Islands

Registrar

Link Registrars (Guernsey) Limited

Mont Crevelt House

Bulwer Avenue

St Sampson

Guernsey GY2 4LH

Channel Islands

UK transfer agent

Link Asset Services

The Registry

34 Beckenham Road

Beckenham

Kent B43 4TU

United Kingdom

Auditor

KPMG Channel Islands Limited

Glategny Court

Glategny Esplanade

St Peter Port

Guernsey GY1 1WR

Channel Islands

Investment Manager

Foresight Group LLP

The Shard

32 London Bridge Street

London SE1 9SG

United Kingdom

Public relations

SEC Newgate

14 Greville Street

London EC1N 8SB

United Kingdom

Corporate broker

Winterflood Securities Limited

The Atrium Building

Cannon Bridge House

25 Dowgate Hill

London EC4R 2GA

United Kingdom

Corporate bankers

HSBC

PO Box 31

St Peter Port

Guernsey GY1 3AT

Channel Islands

CAUTIONARY STATEMENT

The inside front cover to page 35 of the Half-year report 2023, including about JLEN, our purpose, our investment case, performance highlights, our portfolio at a glance, the Chair's statement, the Investment Manager's report, investment portfolio and valuation, operational review, sustainability and ESG, and the financial review (together, the review section) have been prepared solely to provide additional information to shareholders to assess JLEN's strategies and the potential for those strategies to succeed. These should not be relied on by any other party or for any other purpose.

The review section may include statements that are, or may be deemed to be, "forward-looking statements". These forward‑looking statements can be identified by the use of forward‑looking terminology, including the terms "believes", "estimates", "anticipates", "forecasts", "projects", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology.

These forward‑looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding the intentions, beliefs or current expectations of the Directors and the Investment Manager concerning, amongst other things, the investment objectives and investment policy, financing strategies, investment performance, results of operations, financial condition, liquidity, prospects, opportunities and distribution policy of the Company and the markets in which it invests.

These forward‑looking statements reflect current expectations regarding future events and performance and speak only as at the date of this report. By their nature, forward‑looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.

Forward‑looking statements are not guarantees of future performance or results and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. The Company's actual investment performance, results of operations, financial condition, liquidity, prospects, opportunities, distribution policy and the development of its financing strategies may differ materially from the impression created by the forward‑looking statements contained in this report.

Subject to their legal and regulatory obligations, the Directors and the Investment Manager expressly disclaim any obligations to update or revise any forward‑looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

In addition, the review section may include target figures for future financial periods. Any such figures are targets only and are not forecasts.

This Half‑year Report has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to JLEN Environmental Assets Group Limited and its subsidiary undertakings when viewed as a whole.

ENDS

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JLEN Environmental Assets Group

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