Member Info for StarBright

At the risk of stating the obvious, it’s good that the tax credits have been confirmed.

I think there is a decent underlying business here, capable of generating cashflow to support a dividend at or above 7pps. However, management appear desparate to hang onto cash to fund exciting projects and are awful - truly awful - at sustaining a narrative. Just last week they said (in their factsheet) “Further details regarding capital allocation, Big Rock ITC, and NAV will be in the Annual Report and Financial Statements, which will be published on Thursday 17 July.”. And here they are on Monday July 14 with just one part of that. I’m guessing that they’ve received advice saying they can’t sit on the TTC news until Thursday, so have had to put today’s RNS out. This is just incompetent. Their messaging around the dividend continues to be shambolic. Unfortunately these aren’t isolated instances, and such mis-steps with central narrative are (rightly) costing the company in terms of credibility.

I’m going to hold, because the underlying value here will likely be crystallised one way or another. Either through better management or “corporate activity” of some sort. But it continues to be a needlessly tough hold, because the executive management team are weak where the shareholder narrative / investment case is concerned, and the board appears to weak to force change. It’s a hold and hate for me, until someone steps up and does better.

As I have said previously, there are enough clues to suggest that there has been a serious debate between the Board and the management company regarding capital allocation. It’s possible that the management company have shiny exciting new projects they’d like to commit to, whilst the board has inbound pressure regarding dividend payments. My hope is that the board exerts its authority and prioritises the allocation of cash for shareholders, not new projects. I’d like to see a restored dividend commitment supported by durable cashflow coverage from the recently energised assets. This is the best way to close the discount and stabilise the share price.

Key points from the factsheet:

“In July, the One Big Beautiful Bill (US Tax Bill) was signed into law. Battery energy storage projects will continue to qualify for technology neutral tax credits with a phase out from 2034. The tax credits remaining fully transferrable, as such there is no material risk to the Company’s ability to monetise the Investment Tax Credits associated with the Big Rock asset.

The Company released an unaudited NAV as at March-end 2025, as well as a dividend declaration. Proceeds from the sale of the Dogfish Investment Tax Credits (ITCs) have been received. Further details regarding capital allocation, Big Rock ITC, and NAV will be in the Annual Report and Financial Statements, which will be published on Thursday 17 July.”

A lot of them (possibly all at times) are market makers refreshing their quotes to stay compliant with their minimum quote obligations. In simple terms trading 1 share keeps their quote “live”, meeting their regulatory obligations. For SETSqx instruments like BSIF you see this a lot. These trades aren’t indicative of underlying/real orders, and they don’t carry any pricing information or covert messaging; they are just an artefact of systems and regulatory environment.

Ignore the nonsense that’s always being posted on LSE about MM’s signalling to each other etc - it’s all complete b*llocks posted by people who have no clue.

Recommended offer, with 19% covered by irrevocables.

@dh243 - If DELT truly has "...assets worth many times more" then a competing proposal/bid may emerge...

Interesting to see Elon Musk commenting favourably on BESS:

https://x.com/elonmusk/status/1939403386077790435?s=61

Can only be helpful in drawing attention in a positively-framed manner.

Some excellent posts and analysis here today. Thank you all.

Yes, the deferred publication provisions for AIM trades will still apply. ASX however doesn’t have a deferred publication provision so all trades are (in theory) printed on execution. For interest, NYSE and NASDAQ do have deferred publication provisions. Unlike AIM though, ASX operates its own dark pool / unlit venue. Different markets/countries, different regs…

There are 9,514,851 shares “out there”…

Unchanged since February: “In accordance with the FCA's Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company's enlarged issued ordinary share capital will comprise 9,514,851 ordinary shares each with a right to vote and with no shares held in treasury.”

Some very good posts and analysis here. Thank you.

Just affording this post by @Steeltrader9 some recognition...

Have none of you read or understood the RNS regarding the internalisation of management? Or the RNS about the appointment of new executive directors?

To put some numbers on the points regarding BESS revenues made in @TheTrotsky's excellent post earlier:

2023 BESS revenues were at record highs initially (post‑2022), then declined as capacity grew and price volatility faded. Overall they probably ended up somewhere around £60k/MW. 2024 therefore started with VERY low monthly revenues (annual average was around £50k/MW) but late-2024 saw a marked turnaround after some long-awaited changes to underlying market mechanisms were introduced. 2025 so far has seen revenues significantly above 2024’s average, with monthly data consistently in the £70–88k/MW range.

In overall terms, UK BESS revenues are rising sharply compared with both 2023 and 2024. The rises are driven by improved market conditions, new revenue mechanisms and operational leverage.

Good volume traded today with nearly 6m filled. A quick look suggests that such volume has only been seen 5 or 6 times since 2018, so probably a good mark in price-discovery terms. But key information is still missing, with guidance from the company needed on:

1. The new level of underlying operating income following commercialisation of the US projects

2. The value (and timing) of dividend payments going forward

As a number of posters have observed, the company *should* be in a position to sustain at least the previous 7p dividend level given that it will have an increased revenue base and reduced costs.

“… the Board of Directors today declares a 1 pence per share dividend, and expects, in the absence of any unforeseen factors, to distribute a further 3 pence per share once the proceeds from the sale of the Big Rock ITCs become available to the Company, which is expected in H2 2025. This dividend distribution structure meets the expectations of shareholders, but without increasing the Company's total debt and the associated costs.

Going forward, the Company will link dividend distributions with operational cash flow, rather than maintaining a fixed distribution target. This strategy underscores the Board's commitment to financial sustainability. Further details of the dividend policy will be included in the upcoming annual results.”

A mixed bag. Huge fail on the final divi for the year, heads will have to roll. Big positive that they’ve formally committed to the special on ITC receipt rather than pursuing more “exciting” projects. Removal of the egregious termination fee is a well-deserved slap in the face for the manager, ouch. Expect corporate activity of some sort here - this won’t be around in its present form in 12m time. Plenty of scope for a realisation event somewhere SP and NAV, ie a material uplift for holders…

~1.11% charged to fund NAV (not “deducted from the divs”

https://www.theaic.co.uk/companydata/nextenergy-solar-fund/charges

No alarms and no surprises - all looks good on first read through.

Particularly the commitment to sustaining the dividend at 8.43p with 1.1x -1.3x cover. I suspect that’s what most holders are looking for. NAVs are quickly (& rightly!) becoming a sideshow for these renewables funds. Cash flow generation and covered dividends are what matters…

All good.

I doubt that there's any borrowable shares out there, so short-selling unlikely.

Newsflow will drive short-term price action here...

Excellent post @Pip56.

I think 19th will be the day. Perhaps with an RNS a few days earlier announcing a shareholder call on the announcement day?