(Alliance News) - Gresham House Energy Storage Fund PLC on Monday said its net asset value has climbed since its initial public offering as a consequence of portfolio cash generation, as well as better revenue forecasts.
The utility-scale energy storage fund reported a NAV per share of 100.79 pence per share as at December 31, up from 98.0p immediately after its November 2018 IPO. On a total return basis, NAV rose 6.5%.
"This improvement has been driven by cash and other working capital generated and retained in the investment portfolio, project-level value enhancements and a reduction in the weighted average discount rate from 11.9% to 11.2%," said Chair John Leggate.
Improved revenue forecasts also contributed to the NAV rise.
The firm has announced a 4.5p per share dividend for 2019, meeting its IPO prospectus target. It is targeting a progressive dividend policy totalling 7.0p per share in 2020, but is "conscious that recent events in relation to Covid-19 and the social distancing and other social and economic measures may have unknown impacts".
Leggate said: "We have had a successful first financial year, growing from a standing start to become GB's largest battery storage portfolio, and we thank our investors for their confidence in [Gresham House Energy Storage] since IPO. Our journey has just begun, and the UK still only has 1 [gigawatt] of storage capacity compared to a market need we expect to grow tenfold over the next four years.
"We are committed to delivering on our future plans and to remain a leader in this essential fast-growing component of the renewables infrastructure sector, delivering stable returns uncorrelated with wider financial markets."
Shares in Gresham House Energy Storage were flat at 96.50p in London on Monday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Gresham House (GRID)