(Alliance News) - Gresham House Energy Storage Fund PLC on Thursday warned that revenue remains below expectations, despite an improvement since March.
Gresham House is a London-based fund which invests for income from utility-scale battery energy storage systems.
Gresham said that the "challenging environment" in January and February has improved, with revenue since March reflecting the increased efforts by the GB Electricity System Operator to utilise battery energy storage systems.
However, it warned that revenues remains "well below" long-term third-party forecasts.
"The BESS sector, the company and its shareholders are going through the most challenging operating environment since the company's inception in 2018. The board is taking a series of steps to put the business on a stable footing in a volatile market so that we can best capture what we continue to think is a significant strategic opportunity in the BESS sector," said Chair John Leggate.
"In particular, the board is prioritising deleveraging and cash preservation given the volatile trading environment. This has led to the difficult decision to suspend dividend payments and share buybacks for the balance of 2024 but will enable us to complete our ongoing construction programme which will drive our near-term cash flow potential and inform our future dividend policy."
Shares in Gresham were down 3.1% to 37.03 pence in London on Friday morning.
By Sophie Rose, Alliance News senior reporter
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Gresham House (GRID)