Investor FAQs

Following the completion of the Company’s current dividend target of 8.43p, NESF will transition to a percentage‑based dividend policy from FY26/27, under which 75% of operational free cash flows will be distributed as dividends. Under this new policy, the estimated dividend range for FY26/27 is 4.0p to 4.6p per Ordinary Share.

In real terms, the change means that dividends will be directly linked to the cash the portfolio generates, rather than being a fixed or progressive amount. From FY26/27, NESF will distribute 75% of operational free cash flows to shareholders, with the remaining 25% retained within the Company.

The dividend change will take effect from FY26/27, after the Company completes its current dividend target of 8.43p. From that point, NESF will move from a progressive dividend to a percentage‑based payout policy, under which 75% of operational free cash flows will be distributed to shareholders.

There is no fixed end date for the 75% payout level. The 75% distribution of operational free cash flows is intended to be a structural, ongoing dividend policy, introduced as part of the Company’s strategic reset from FY26/27.

Total returns measure the overall return to a shareholder, combining both income and capital performance. In simple terms, they reflect:

• Dividends received over a period, plus
• Changes in the share price or Net Asset Value (NAV) over the same period.

For investors, total returns show the full economic outcome of holding the investment, not just the cash income received. A company can therefore deliver attractive total returns through a combination of sustainable dividends and long‑term growth in NAV and/or share price, even if dividends vary from year to year.

There is no fixed or guaranteed timeframe for generating total returns. Total returns are expected to be delivered over the medium to long term, as the Company executes its strategic reset and roadmap.

The Board’s strategy is focused on:

• Stabilising and sustaining dividends through a cash‑flow‑linked payout policy, and
• Rebuilding and growing Net Asset Value over time through disciplined capital allocation, including debt reduction, repowering, and investment in higher‑return opportunities such as energy storage

As these initiatives are delivered, the Board believes that total shareholder returns should improve progressively, reflecting a combination of ongoing income and long‑term capital growth, rather than short‑term movements in dividends or share price.

Share price growth is expected to be driven by the delivery of NESF’s strategic roadmap, which is focused on rebuilding and growing Net Asset Value (NAV) and improving the quality, resilience and sustainability of cash flows over time.

Key factors in the roadmap that are expected to support share price growth include:

• Rebuilding and growing NAV through disciplined capital allocation, including targeted debt reduction, repowering of existing assets, and reinvestment into higher‑return opportunities such as energy storage.
• Strengthening the balance sheet by retaining a portion of operational cash flows under the new dividend policy, reducing leverage and financial risk over time.
• Improving the quality and durability of earnings by diversifying revenue streams beyond subsidised solar, including through co‑located energy storage and post‑subsidy asset optimisation.
• Delivering sustainable, fully cash‑covered dividends, improving investor confidence and supporting a re‑rating as the strategy is executed and results are demonstrated.

As these initiatives are delivered and NAV performance improves, the Board believes this should be reflected in stronger total shareholder returns, including potential share price appreciation over the medium to long term, rather than being driven by short‑term dividend levels alone.

The Board remains open to considering cash offers or other proposals where it believes these would deliver value for NESF shareholders. There is no certainty that a public‑to‑private transaction will occur, and no decision has been made.

Any such proposal would be carefully evaluated by the Board against its duty to act in the best interests of shareholders and would be subject to regulatory requirements and shareholder approval.