Low Carbon Accelerator, an AIM-listed venture capital fund focused on the low carbon sector, expects to announce a 15 to 20 per cent uplift in net asset value at the end of October due to strong sales figures from portfolio company Proven Energy.
UK-based Proven Energy is a manufacturer of sub-100kW turbines and has seen its sales increase by 200 per cent year-on-year since the introduction of the UK feed-in tariffs in April.
LCA holds a 75 per cent equity position in Proven, on a fully diluted basis, having invested GBP9.5m in the company since 2006. An unaudited valuation of Proven at 31 August 2010 shows its value to have more than doubled since LCA’s initial investment.
Steve Mahon, chief investment officer of Low Carbon Investors, the investment manager of LCA, says: “Proven has performed well over the past four years and LCA has continued to support its development.
“We wanted to ensure it was well prepared for the introduction of FiTs and our approach has paid off. Sales have been strong and the company maintains its position as the top manufacturer of sub-100kW turbines in Europe.
“Proven’s high growth this year has led to a significant increase in the company’s valuation and on the back of this we expect to be able to announce in October an increase in LCA’s NAV per share of between 7p and 12p. This is good news for our shareholders and further tangible proof of the value in LCA’s portfolio.”
The increase in Proven’s sales is primarily down to the popularity of its two largest wind turbine models. The first is the only turbine currently certified for the feed-in tariffs under the government’s microgeneration certification scheme and the second is expected to be certified shortly. Following the transitional period for certification, ending in December 2010, only installers of certified turbines will qualify for feed-in tariffs.
