Important information

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, today announces its Audited Full Year results for the year ended 31 March 2026.

Overview of the year ended 31 March 2026

• Net Asset Value (NAV) was 74.9 pence per share (31 March 2025: 102.8pps; 31 December 2025: 87.9pps) primarily driven by lower merchant revenue forecasts provided by independent third parties.
• NAV was £378.3m (31 March 2025: £519.3m; 31 December 2025: £444.2m).
• In March 2026, the Company’s new independent Board announced an updated strategy focusing on releasing capital from the portfolio and driving improved Shareholder value.
  • Sales processes continue, with further updates expected later in the summer 2026.
  • Augmentation works on two GB assets are progressing to increase duration from 1-hour to 2-hour, thereby increasing revenue-earning potential.
  • The period under review does not yet reflect the new strategy which was initiated toward the end of the financial year and is anticipated to start yielding tangible results for Shareholders in the near-term.
• The Company has a diversified portfolio of 28 assets across 5 grids with a total capacity of 1.16 GW
  • Operational capacity increased significantly to 643.11 MW / 840.9 MWh at period-end (31 March 2025: 417.11 MW / 386.75 MWh) and averaged 565.78MW / 696.70 MWh over the financial year.
  • Though construction works at Enderby (57 MW / 57 MWh) have been completed, the asset has been delayed from accessing some revenue streams due to grid connection constraints. The asset is expected to be fully operational in the coming weeks.
  • The weighted average age of the operational fleet was just 2.6 years by MWh.
  • The Company has a pre-construction portfolio of 458.05 MW with optionality to progress the assets to construction either independently or in partnership(s) or divest the assets to recycle capital into accretive opportunities.
• Revenue during the year increased to £36.27m (31 March 2025: £32.84m^[1])
  • Average revenue for the year was £7.32 per MW/hr (31 March 2025: £9.56 per MW/hr). Though reducing year-on-year due to challenging market conditions in GB and Texas, this figure shows the benefit of diversification over a GB only portfolio which averaged £5.60/MW/hr.
  • Average asset availability of 94.5% during the year (31 March 2025: 95.3%).
• Operational EBITDA was £18.0m (31 March 2025: £18.5m), which reduced marginally primarily reflecting lower average revenue per MW across a larger operational portfolio, against a largely fixed cost base per MW.
• The Group held cash or cash equivalents at period end of £51.6m and £37.8m in undrawn debt capacity.
  • Total Group debt drawn was £105.8 million, resulting in a GAV gearing ratio of 21.9% (31 March 2025: 17.8%).
• Dividends declared for the period were 7.19pps (31 March 2025: 4.00pps), including 3.00pps special dividends, declared in respect of the financial year.
• GSF’s assets contribute real and measurable ESG impact, advancing a greener grid by reducing the need for gas or coal-related energy; the Company’s operational fleet avoided 15,142 tCO2e and stored 56,975 MWh of renewable electricity.

Angus Gordon Lennox, Chair of the Company commented:

“It is clear that the growth of renewable power and energy independence will mean battery energy storage remains critical. This is particularly true with the recognition of the real-world impact of global warming and that carbon energy sources are not only finite but subject to ever-increasing geopolitical tensions. The Company continues to make operational progress, including the significant growth in operational capacity during the period, leading to an increase in revenues despite market conditions leading to a decline in average revenue per MW.

However, this has clearly been a challenging period for the Company’s valuation, with the majority of the decline in reported NAV due to lower revenue forecasts from third parties.

Since I was appointed as Chair earlier this year, the Board has taken decisive action. We set out a revised strategy in March 2026, reviewed service providers, and have or are conducting benchmarking exercises across all aspects of the Company. We are now firmly focused on overseeing the disciplined execution of the Company’s revised strategy to improve value for all Shareholders.”

Progress on the Strategy

Following the completion of the Board refresh on 1 February 2026, a revised strategy was announced in March, built on four key elements: a much higher, fixed distribution of 7 pence per share a year; selective asset sales; growth through reinvesting the proceeds into augmentation and other value-adding development; and cutting costs. The Board has set clear KPIs and will report progress regularly - should they not be met, the continuation vote will be brought forward from 2028.

The augmentation works of two GB assets, Stony (79.9 MW) and Ferrymuir (49.9 MW), are on track and on budget, and due to finish by no later than December 2026. Several assets are in sale processes; the first, Cremzow (22 MW), the Company’s German asset, is in late-stage negotiations. In addition, a partial or whole sales process has been initiated for the Company’s pre-construction Republic of Ireland assets and pre-construction Middelton asset (200 MW) in Great Britain. Further updates on the sale are expected later in the summer of 2026.

Audited Net Asset Value as at 31 March 2026

The Company’s NAV at period end was 74.9 pence per share (31 March 2025: 102.8pps; 31 December 2025: 87.9pps). The main reason for the fall in the NAV over the year is lower merchant revenue forecasts from independent third parties.

As outlined above in tandem with the updated strategy, the new Board has been carrying out a full review of the Company. As part of this, and working with the Company's independent valuer, BDO, and the Investment Manager, the Board has made certain updates to other assumptions such as revenue curves and operating expense assumptions. A breakdown is provided below, and further details are set out within the Annual Report.

NAV Bridge FY2025/26
	£m	Pence/share
March 2025 NAV	519.3	102.8
Rollover	46.7	9.3
Actuals	(30.9)	(6.1)
Revenue Curves	(95.8)	(19.0)
Discount Rates	(3.0)	(0.6)
Operating Expenditure	(28.3)	(5.6)
Fund Expenses	(11.4)	(2.3)
Dividends	(21.2)	(4.2)
Inflation	5.5	1.1
Other Valuation Movements	(2.6)	(0.5)
March 2026 NAV	378.3	74.9

• Rollover (+9.3p)

This line reflects the effect of the passage of time: forecast cash flows for the year are assumed received and future cashflows are now closer to the present, so their discounted value has increased.

• Actuals (-6.1p)

Actuals reflect the variance between the portfolio’s realised performance and forecasts assumed in the prior valuation. Over the 12-month period, actual revenues underperformed forecasts in key markets, including GB, California, and Texas, driven by conditions such as the oversaturation of BESS capacity in select markets creating suppressed revenue opportunities. This resulted in actuals being negative.

• Revenue curves (-19.0p)

Revenue curves are a key valuation input and are sourced from specialist third-party research houses. The Company applies a blended mid-case average of several providers’ forecasts, updated twice a year for the Annual and Interim reporting periods. The update used at the end of this reporting period was materially lower than in the prior year and was therefore a major driver of valuation movement, accounting for c.68% of the overall NAV decline for the financial year (including both third party reductions and additional adjustment).

Of the total -19p, most of the decrease comes from reductions in the independent forecasters’ curves (-17.2p), with the remainder from an additional adjustment directed by the new Audit Committee members (-1.8p) bringing near-term projections closer to recent revenue performance. The additional reductions apply to the remainder of 2026 and full calendar year 2027 and reflect a blend of actual revenue generation over the preceding twelve months and the view of the third-party curves.

• Discount rates (-0.6p)

The discount rates applied to the GB and ROI/NI assets remained broadly in line with those applied at March-end 2025. Discount rates in the US were increased to reflect higher market uncertainty but were partly offset by the lower risk associated with operational assets compared to in-construction projects, resulting in a net modest increase in the rate applied to the market. In addition, the discount rates applied to both Cremzow (Germany, 22MW) and Boulby (GB, 6MW), were increased to reflect a more cautious view of the operational risks these particular assets carry and to value Cremzow in line with the expected sale price.

The overall effect was a slight increase in the weighted average discount rate to 10.25% (FY24/25: 10.22%) and a resulting slight decrease in portfolio valuation.

• Operating expenditure (-5.6p)

Operating expenditure was a significant negative driver over the period. The principal change was the inclusion of forecast project-oversight costs within asset-level cash flows. These relate to the ongoing management of each asset beyond routine O&M, which was already reflected, and cover activities such as contract oversight and construction management. As the universe of prospective buyers of storage assets broadens to include more passive owners, the Board considers it prudent for valuations to reflect the full cost such a buyer would incur in holding and managing these assets.

Further adjustments reflect future insurance premium reductions anticipated on the basis of savings achieved to date, and revisions to O&M contracts for specific assets.

• Inflation (+1.1p)

Short-term inflation assumptions for the remainder of 2026 were modestly increased across all markets to reflect the latest forecasts. Long-term assumptions for 2027 onward are 2.25% for Europe and the US and 2.50% for GB, consistent with the March-end 2025 results, peer assumptions, and market expectations.

• Other valuation movements (-0.5p)

This line item reflects a combination of updated capex forecasts, revised project timelines, and foreign exchange (FX) movements over the period. Capex assumptions have been adjusted to include the negative impact of tariffs in the US and the lowered expectation of repowering based on updated third-party capex curves. Commercial Operation Dates (CODs) were amended for certain assets, including Enderby, which has faced lengthy delays to becoming operational.

FX movements had limited overall impact, with modest positive contribution from the US somewhat offset by negative movements in ROI, NI, and Germany.

Q4 Dividend Declaration

In line with the Company's dividend policy – to distribute 7 pence per share per annum to shareholders, in quarterly payments – the Board of Directors on 14 July 2026 approved a quarterly dividend of 1.75 pence per ordinary share for Q4 FY25/26. The ex-dividend date will be 30 July 2026, followed by a record date of 31 July 2026. The dividend will be paid on or around 01 September 2026.

Of this dividend declared of 1.75 pence per share, 0.0 pence per share is treated as qualifying interest income.

Results Presentations Today:

There will be a presentation for sell-side analysts at 9:30 a.m. today, 15 July 2026. Please contact Burson Buchanan for details on gorestreet@buchanancomms.co.uk

A presentation for investors will also be held today on the Investor Meet Company Platform at 11 a.m.

Investors can sign up to Investor Meet Company for free and add to meet GORE STREET ENERGY STORAGE FUND PLC via: https://www.investormeetcompany.com/gore-street-energy-storage-fund-plc/register-investor

Annual Report:

The Company's annual report and accounts for the year ended 31 March 2026 are also being published in hard copy format and an electronic copy will shortly be available to download from the Company's webpages https://www.gsenergystoragefund.com/.

Please click on the following link to view the document: https://www.gsenergystoragefund.com/docs/librariesprovider22/archive/reports/annual-report-2026.pdf

In accordance with UKLR 6.4.1, the Annual Report has also been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The Company confirms that, in compliance with DTR 6.3.5R(1A), the regulated information required under DTR 6.3.5 is available in unedited full text within the Annual Report available via the NSM, and in compliance with DTR 6.3.5(3) is available on the Company's website.

Factsheets:

The Company’s factsheet has been redesigned as part of the Company's ongoing commitment to improving communication with its Shareholders. Going forward, the Company will publish the factsheet on a quarterly basis, aligned with the release of the Company’s quarterly NAV updates.

The 31 March 2026 quarterly factsheet has been published today and is available, alongside previous factsheets, on the Company's website:

https://www.gsenergystoragefund.com/content/investors/factsheet.asp

 

For further information:

Gore Street Investment Management Limited Alex O'Cinneide / Ben Paulden Email: ir@gorestreetcap.com	Tel: +44 (0) 20 4551 1382
Shore Capital (Joint Corporate Broker) Anita Ghanekar / Sophie Collins (Corporate Advisory) Fiona Conroy (Corporate Broking)	Tel: +44 (0) 20 7408 4090
J.P. Morgan Cazenove (Joint Corporate Broker) William Simmonds / Rupert Budge	Tel: +44 (0) 20 3493 8000
Burson Buchanan (Media Enquiries) Henry Wilson / Henry Harrison-Topham / Nick Croysdill Email: gorestreet@buchanan.uk.com	Tel: +44 (0) 20 7466 5000

 

About Gore Street Energy Storage Fund

Gore Street Energy Storage Fund plc is London's first listed energy storage fund, launched in 2018. The Company is the only UK-listed energy storage fund with an internationally diversified portfolio across five grid networks.

https://www.gsenergystoragefund.com

 

1. Prior year revenue and EBITDA have been updated to reflect the Company’s percentage ownership and other adjustments, as set out in APM 6 of the FY 2025/26 Annual Report.