Investment Companies Daily: UKW/TFG/MF FP Interim results, HGT Quantios realisation at premium to carrying value, OCI trading statement, GRP June NAV

Research evidence excerpt

Investment Companies Daily: UKW/TFG/MF FP Interim results, HGT Quantios realisation at premium to carrying value, OCI trading statement, GRP June NAV

t its investment manager has continued to

evaluate a broad range of potential reinvestment opportunities, with a particular focus on

transactions that enhance portfolio quality, duration and long-term cash generation.

While no transactions have been completed to date, UKW says it remains active in the

market and that the absence of completed transactions reflects pricing discipline and

selectivity rather than a lack of available opportunities. Within the manager’s statement,

UKW says that it also considers that there are circumstances in which share buybacks can

present an attractive use of capital but says that in the context of a company that operates

finite-life assets, the case for buybacks is far more nuanced and their impact on gearing

must be considered alongside uses of capital that further support UKW's enduring

proposition and long-term shareholder value. Notwithstanding this, UKW says buybacks

may be undertaken selectively.

• Dividend: UKW pays quarterly dividends and has a 10.7pps dividend target for FY 2026.

Dividend cover in the first half was 1.9x. UKW says that it expects dividend cover to

remain >1x even with power prices at levels of £20/MWh-£30/MWh for the period 2027-

2031. UKW’s base case has dividend cover of 1.6x for 2027 rising to 2x for 2031 based

on increasing the dividend by CPI increaes of 2.5% pa.

• Power price: UKW says that annualised power prices for 2027 are about 10% higher than

the December 2025 levels and forward curves for Winter 2026/27 are 25% ahead of the

the December 2025 levels. The longer-term power prices, sourced from an independent