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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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Has he deleted it?
Gresham House Energy Storage Fund (LON:GRID) and Harmony Energy Income Trust (LON:HEIT) I don't hold and know little about either but noticed the piece from Adam Bell on X yesterday with regards to OFGEM possibly invalidating the above's business model somewhat.
https://x.com/Adam_Grant_Bell/...
OK checked. Yes they did get the authority at the last AGM, so I assume buy backs could start immediately
Quite. So did they get the "authority granted by shareholders at its Annual General Meeting in June 2023, which permits the Company to repurchase a maximum of 14.99% of its ordinary shares. "
Buy back transactions in their own shares will be notified in RNS
The ICGT trust for instance does this every day at present (trading at huge discount to NAV) as per RNS copy below for info;
1 February 2024 - Transaction in Own Shares
The Company announces that on 31 January 2024 it bought back 20,000 of its own shares, to be held as treasury shares, at an average price of 1230 pence per share.
Further details are set out below:
Number of shares held as treasury shares following this purchase: 5,728,133.Total shares in issue excluding treasury shares following this purchase: 67,184,867.
The Company has bought back these shares under the authority granted by shareholders at its Annual General Meeting in June 2023, which permits the Company to repurchase a maximum of 14.99% of its ordinary shares. The actual number of shares repurchased by the Company will depend on market conditions. This authority lasts until the next shareholder authority granted (expected to be at the Annual General Meeting in 2024), or until expressly revoked by shareholders.
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?
If you read the KID you'll see that this is recommended as a long term hold, and short term volatility is highlighted. Buy low. Sell high. Personally I think this is a perfect opportunity to buy. It is just my opinion and certainly NOT advice! DYOR GLA
The SP has bounced off the 48p low to close north of 50p. I'm still nursing a 60% loss in 6 weeks. I'm wondering is this a dead cat bounce or is GRID buying back shares into Treasury below 50p. If it's the latter will they give any indications of share buy backs and is anyone else considering averaging down. Unless the company goes bust the chance of profits and SP recovery in the next 18m must be good?
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
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."
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.
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
I mean GSF sorry for typo
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.
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?
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!
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
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'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.
The info given by GH and the company itself has amounted to mis selling. I bought , on the basis of public statements, after Christmas 23. I was offered a 'one hour' briefing by the Fund manager last week. They have know the situation was dire since mid December. Clearly other 'mates' were updated and had the brains to bale out during January. The corruption in UK investment is now so endemic that the smart money has moved to the better regulated, more liquid USA. (HOME Reit is another running disaster). I have lost 60% in 4 weeks and I now either bale or have to wait 3 years AND buy lots more when it all settles. The Opportunity Cost is hard to calculate. I won't be buying UK Investment Trusts anymore. The market is rigged for the public school city boys.
Looking very oversold here IMO. Nice approach by the BoD to switch from dividend to buy backs. They also reckon its oversold.
I think there have been warning signs in the BESS sector, so the fall much in line with others in the sector. This may have been impacted more, by its greater visibility of being the largest. Can't see what the BoD have done wrong. There have been plenty of director buys over the past year.
I would only worry if any declared sale yesterday. Can't see that as at all likely.
GLA
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 ?
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).
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.
There will be no divi or a severely cut one . And those in the know.., knew.
Criminal boys club