Gore Street: Energy storage firm reassures investors amid ‘extremely turbulent’ period

Gore Street Energy fund said it remains confident in delivering strong returns to investors despite “challenging” conditions in Britain’s energy storage market over the last year.

Annual earnings before interest, taxation, depreciation and amortisation (EBITDA) at the London-listed fund came in broadly level at £28.4m, up from £27.8m the year prior.

But net asset value (NAV) fell from £556.3m to £540.7m as NAV per share plunged to 64.5p, down from 100.8p.

Pat Cox, Chair of the company, said: “Despite challenging market conditions, the company has achieved significant growth by raising new funds and expanding our diversified energy storage portfolio to approximately 1.25 GW across five markets.

“The company met its dividend target, taking total NAV returns since IPO to 48.4 per cent, and with £60.7m in cash and £58.6m in debt headroom, we are well-positioned to support the construction of the priority assets over the coming months.

He added: “I remain fully confident that this diversified approach will continue to deliver strong and sustainable returns to investors while contributing to the decarbonisation needed across the global energy system.”

Total dividends paid during the year came in at 7.5p, up from 7p the year prior.

It comes after a difficult 12 months for London’s first listed energy storage fund, which has a portfolio stretching across five electrical grids.

Shares are down over 22 per cent this year to date amid a backdrop of high interest rates. In April, half-year pre-tax profit fell from £22.6m to around £3.8m.

Chief executive Dr Alex O’Cinneide has previously sought to quell investor concern over the firm’s struggling share price.

In a statement to markets, he said: “I’m proud to report the company continued to achieve growth while demonstrating leadership and resilience during an extremely turbulent period.

“With the energised capacity reaching 421 MW and 332 MW more to follow in the coming seven months, all while maintaining a prudent approach to leverage, the company is well-positioned to increase dividend cover and continue delivering value for shareholders by generating robust and stable cash flow from its well diversified asset base.”

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