To provide an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility scale operational energy storage systems, which utilise batteries and generators, located in Great Britain.
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Very interesting couple of weeks ahead, assuming the next dividend announcement matches the previous ones:
14th February 2022
10th February 2023
w/o 12th February 2024??
couple of weeks time. Do they stick or do they twist?
Inevitably twist. But when was this decision taken and who was aware of it?
There will be no divi or a severely cut one . And those in the know.., knew.
Criminal boys club
That's a big assumption to make. At the half year they declared "Committed to pay 7.35p per share for 2023 despite a drop in Operational Dividend Cover to 0.63x in H1 2023, following Operational Dividend Cover of 1.32x in 2021 and 1.28x in 2022." They have plenty of finance cover to ride 2024 out IMO. However, it is just my opinion. You cannot say for definite what decisions the BoD will take. It's a waiting game.
Forget the dividend 4 months ago the NAV was 146p only marginally down 0.6p from 3 months earlier, so even it has dropped a bit faster its still trading at about a 60% discount.
Assuming battery technology isn't completely unnecessary (there are only two ways to store electricity (1. pump water up a hill or 2. batteries) then this will be takeover target?
Gresham House Energy Storage Fund plc (LSE: GRID) (the Fund) announces its NAV as at 30 September 2023 was £837.7mn and NAV per share was 146.08p per ordinary share (30 June 2023: 146.66p).
Insiders knew.
ii) Dividend policy - Given the recent difficult revenue environment, the Board has decided not to declare a dividend for Q4 2023. In terms of the dividend for 2024, if the current revenue environment endures, it will be challenging to generate the cash required to cover the dividend this year. As such, the Board intends to recalibrate the Company's dividend target for 2024, as well as the Dividend policy on an ongoing basis to better reflect the predominantly merchant nature of the Company's revenues. A further announcement in this regard will be made as soon as possible and not later than the announcement of our Annual Results.
Shall we alert the FCA ?
I've lost 60% of my investments in a month so very painful. The persistent unabated selling suggests some people knew the situation was far worse than the information in the public domain suggested. How they reached that conclusion is an open question.
I hope your optimistic view is right. Last and only time I took such unexpected losses over only a month I averaged down only to see the company go into liquidation and lose my entire investment. The long term solvency of GRID must be in question now for some.
I would sincerely hope that the company would not embark on buy backs if there was any question over viability. I am really surprised we are so far below NAV. Agreed NAV will have fallen, but nothing like this much. Shorters will be partly to blame, and the fear they try and instil in the market.
GLA
The best bit for me is where Ben Guest says "we are determined to take the right capital allocation decisions to position the Company prudently".... Prudently?? Morning coffee duly spilt!
Would anyone happen to know why Gore Street Energy Storage Fund (GSF) has avoided the extent of declines that GRID and HEIT have suffered? Are they investing differently?
GFS is geographically diversified to non UK markets were BESS is more in use and better paid. GRID is only UK and has only one USA project and I wonder if this is still viable if the company survival is in jeopardy.
I mean GSF sorry for typo
I agree that the difference re GSF is revenue diversification. The UK "market" has been v difficult for BESS in the last year. Exposure elsewhere has paid off in revenue generation - and therefore cashflow - terms.
GSF revenue generation in the 6m to 30 September 2023:
UK £3.6m (19%)
Ireland £9.7m (50%)
Germany £0.8m (4%)
Texas £5.1m (27%)
Total £19.2m (100%)
Dividend (2023=7pps) on 495m shares is £34.6m
Thank you rejucht and StarBright. The old UK discount eh? Should've guessed. Note to self: (1) cut allocation to UK listings - it really has become a low quality arena for investing; (2) be wary in investing in sexy new asset classes.
From GSF's Sep23 HY report:
"Q: You’ve spoken about diversification, but does it work?
For a largely merchant asset-class like energy storage, diversification is a fundamental necessity to reduce revenue volatility. Within Great Britain, opportunities to diversify are limited due to uniform revenue streams and consistent wholesale electricity prices across all regions. This uniformity results in significant fluctuations in revenue year on year. Seasonal variation also creates large fluctuations in quarterly revenue, with Spring and Summer historically yielding higher revenues compared to the Fall and Winter seasons.
The Company has always factored these revenue variations into its decision making, which is why international diversification has been a key strategic objective. Today, it is unique in holding assets across five distinct and uncorrelated energy systems. This enables the Company to navigate the challenges posed by individual market fluctuations by accruing more stable and reliable revenue generation throughout the year from multiple markets. This can be seen in the Company’s revenue over this reporting period, when revenue from its GB fleet was £7.54 per MW/hr, compared with £15.10 per MW/hr on a consolidated portfolio basis, representing c.2x vs a GB-only portfolio."
Wish we all had this foresight before buying GRID, lol
I had bought around a pound during Covid dip. Did very well for a period, but needed to sell original holding around 130. Bought back a few around 150p, with an average at about a pound now. My portfolio performance was pretty poor during 2023. Then u hear that US stocks are at ATHs and all this stuff, its kinda frustrating. As some are saying here, the gains are often in non UK markets. A real shame
Thanks Starbright. Very useful and I've also taken up a small holding there. As well as the regional diversification I like the cash position.
Here I think the buybacks will be good, once they start. I believe they may need shareholder approval?