Low Carbon Accelerator (LCA) expects to announce a 15 to 20 per cent increase in net asset value (NAV) in October, driven largely by sales from portfolio company Proven Energy.
Proven Energy, based in East Kilbride, Scotland, manufactures sub-100kW turbines and is said to have seen sales increase by 200 per cent year-on-year since the introduction of the UK feed-in tariffs (FiTs) in April.
LCA, an AIM-listed venture capital fund, holds a 75 per cent equity position in Proven, on a fully diluted basis, having invested £9.5m 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, said: ‘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 £0.07 and £0.12.’
According to LCA, the increase in Proven’s sales is primarily down to two of its largest wind-turbine models. The first is the only turbine currently certified for the FiTs 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 FiTs.
The UK market for sub-100kW systems is expected to grow by 180 per cent this year, which is predominantly being driven by the FiT regime.
Proven currently holds around 30 per cent of market share and its growth is forecast to continue into 2011.