**Summary of Gore Street Energy Storage Fund PLC Half-Year Financial Report (15 December 2025):**
**Financial Performance**
**Net Asset Value (NAV)** Decreased to 90.1 pence per share (from 102.8p in March 2025), primarily due to adjustments in third-party forward revenue curves for the UK and US markets.
**NAV Total Return** -10.6% for the period, with a cumulative return of 31.6% since IPO.
**Dividends** Declared 2.19 pence per share, including a 1.5 pence special dividend. Annualised dividend yield is 8.5% based on the September 30 share price.
**Special Dividends** A 1.5 pence special dividend was paid in October 2025 from the Big Rock Investment Tax Credit (ITC) proceeds. A second 1.5 pence special dividend is pending release of funds held in a lender-controlled account.
**Cash and Debt** Group cash at £50.5 million
debt drawn at £101.95 million with a debt-to-GAV ratio of 18.3%.
**Operational Highlights**
**Capacity Increase** Operational capacity rose to 643.1 MW (from 417.1 MW in March 2025), with all assets under construction completed (Dogfish, Big Rock, and Enderby).
**Revenue** Total portfolio revenue increased to £16.7 million (from £15.2 million in September 2024), driven by new operational capacity and strong performance in Germany and Ireland.
**Challenges** The Enderby asset in the UK faced technical issues, limiting its revenue potential. The Texas market underperformed by ~90%, impacting overall revenue.
**Asset Augmentation** EPC contracts signed for Stony and Ferrymuir assets to increase duration from 1 to 2 hours, expected to complete by Q3 FY2026.
**Strategic Initiatives**
**Capital Allocation** Focus on selective sale/co-investment of pre-construction assets, augmentation of GB and Irish assets, revenue optimization via GSET platform, and cost reduction.
**Shareholder Engagement** Extensive engagement with shareholders, including activist investors, to address concerns and improve returns.
**Board Refresh** Appointed new directors and a new Chair, Angus Gordon Lennox, to enhance governance and strategy.
**Market Outlook**
**BESS Fundamentals** Strong long-term demand due to declining capex costs, increasing utilization, and regulatory support (e.g., UK LDES scheme, Irish consultation).
**Revenue Certainty** Exploring opportunities like the Middleton asset under the LDES scheme for 20 years of revenue certainty.
**Dividend Policy**
Dividends to be covered by operational cash flow. Declared 0.69 pence per share for the September quarter, with two more ordinary dividends expected in the financial year.
**Management Commentary**
**Chair (Patrick Cox)** Acknowledged challenges but highlighted increased operational capacity and strategic actions to address issues.
**CEO (Alex OCinneide)** Emphasized disciplined capital allocation, cost efficiency, and unlocking value through asset augmentations and disposals.
**Key Metrics**
**Operational Capacity** 643.1 MW (up from 417.1 MW).
**Operational EBITDA** £8.6 million (unchanged from September 2024).
**Average Revenue** £67.9k per MW/year (down from £82.7k in H1 2024).
**Asset Availability** 94.3% average.
**Conclusion**
Gore Street Energy Storage Fund PLC faced a challenging period with NAV decline due to revenue curve adjustments, but operational capacity and revenue increased. Strategic initiatives, including asset augmentation and cost reduction, aim to enhance shareholder value. The company remains focused on long-term growth and sustainability in the energy storage sector.