REG - Gore Street Energy - Essential Operating Services

Gore Street Energy Storage FundAnnouncement

30/09/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250930:nRSd3003Ba&default-theme=true

RNS Number : 3003B  Gore Street Energy Storage Fund PLC  30 September 2025

30 September 2025

Gore Street Energy Storage Fund plc

("the Company" or "GSF")

 

Essential Operating Services

The Board of Directors of the Company would like to correct inaccurate and
misleading claims regarding the Company's investment and commercial management
payments to Gore Street Capital Group (GSC).

 

This summary covers both fees paid by the Company to GSC for investment
management services and amounts paid by the Company and the Company's
subsidiaries (SPVs) to GSC for commercial management services. The agreements
are regularly assessed to ensure that they represent value for money, both in
terms of competitive pricing and quality of delivery, and furthermore, are
subject to caps which are detailed below.

 

The operating services provided by Gore Street Capital Group have all
previously been disclosed in accordance with the relevant Listing Rules and
Accounting Standards and are summarised below along with amounts paid in
relation to these services for the years ended 31 March 2024 and 31 March
2025.

 

In short:

·    Payments pursuant to the agreements have been made within or well
below the contractual caps.

 

·    The Company complies with all reporting obligations which are audited
by EY, the Company's external independent auditor and is confident that all
disclosures were properly made, however, the Company will regularly update
these going forward to ensure full transparency.

 

·    These services if not provided by GSC would be procured from other
providers, and as outlined, the agreements with GSC are regularly assessed to
ensure value for money.

 

AIFM & Investment Management Agreement

As announced in June 2025, the Board of Directors undertook a review of fees,
and agreed with Gore Street Investment Management Limited (part of Gore Street
Capital Group) a substantially reduced amount payable from 1 October 2025,
resulting in significant savings and better long-term alignment with
shareholders.

 

Services: Investment management and risk management.

 

Terms: 1% per annum of the average (50:50) of market capitalisation and
adjusted NAV (subject to a cap of 1% of adjusted NAV), and a flat fee of
£75,000 per annum for acting as AIFM. There are no performance fees.

 

Based on the average share price during the financial year ended 31 March
2025, a c.22% or £1.14 million saving would have been achieved based on the
revised management fee. This excludes any further savings that could have
resulted from the removal of performance fees.

 

 

                          FY23/24          FY 24/25         FY25/26
 Basis of Management Fee  1% per annum of adjusted NAV.     From October 1(st), 2025: 1% per annum of the average (50:50) of market

                                 capitalisation and adjusted NAV (subject to a cap of 1% of adjusted NAV)

 Management Fee           £5,542,596       £5,107,713       To be confirmed
 AIFM Fee                 £75,000          £75,000          £75,000

 

Commercial Management Agreement (CMA)

The details of the CMA were announced on 10 March 2022, available here
(https://www.gsenergystoragefund.com/content/news/archive/2022/100322a.asp) .
Services are provided by Gore Street Services, part of Gore Street Capital
Group. This includes construction services, operational services,
administrative services (i.e. financial admin, corporate admin, ESG and
insurance policies).

 

Services: Commercial services including fleet management, construction
oversight, administrative, accounting, and company secretarial support.

 

Terms: This payment is capped at the lower of cost plus 15% and 1% of NAV. The
cap applies to all payments in aggregate, whether remitted at PLC level or SPV
level. To the extent that any fees payable by the Company to Gore Street
Services under the CMA exceed the cap, Gore Street Services is required to
reimburse the Company within 14 days, i.e. these are absorbed by GSC.

 

 

                                                                    FY23/24                 FY24/25
 Services delivered to GSF PLC - CMA (payable by PLC)                      £672,351                £606,112
 Services delivered to operational assets - CMA (payable by SPVs)      £2,606,014              £2,669,712
 Services delivered to construction assets - CMA (payable by SPVs)     £2,137,399              £1,934,684
 Total CMA                                                           £5,415,764                £5,210,509

 

The fees under the CMA payable by SPVs was calculated as the sum of fees paid
by all of GSF's subsidiaries, proportionate to GSF's ownership. The costs
above reflect the intensive period of construction for assets in GB, Texas and
California, which are now all operational. The downward year-on-year trend
reflects some of these in-construction assets becoming operational.

 

GSET Optimisation Agreement

The onboarding of assets to Gore Street Energy Trading (GSET), part of Gore
Street Capital Group, was set out in the 2024 Half-Year Report released on 12
December 2024 and the 2025 Annual Report and Financial Statements (full year
ended 31 March 2025), and fee arrangements were shared in the most recent
results presentation.

 

Services: Optimisation (revenue-stacking)

 

Terms: Pursuant to this optimisation agreement, fees are based on a percentage
of revenue broadly equivalent to the contracts which GSET replaced, capped at
not more than or equal to 0.25% of the lower of market capitalisation and NAV.
The amount paid is materially below the stated cap.

 

The bespoke software was developed by the Investment Manager's Group and is
solely focused on storage assets. The provision of this service by GSC has the
advantage that the strategies undertaken by GSF's onboarded assets remain
bespoke. By internalising optimisation of assets, greater synergy between the
different technical functions is achieved, particularly with respect to asset
management. Performance is regularly reviewed and has outperformed third-party
benchmarks, as disclosed here
(https://www.gsenergystoragefund.com/content/news/archive/2025/100925.asp) .

 

                                  FY23/24  FY24/25
 Gore Street Energy Trading Fees  n/a      £93,737

 

 

 

For further information:  

 Gore Street Investment Management
 Alex O'Cinneide / Paula Travesso / Ben Paulden
 Email: ir@gorestreetcap.com (mailto:ir@gorestreetcap.com)                     Tel: +44 (0) 20 4551 7860

 Shore Capital (Joint Corporate Broker)
 Anita Ghanekar / Sophie Collins (Corporate Advisory)                          Tel: +44 (0) 20 7408 4090
 Fiona Conroy (Corporate Broking)

 J.P. Morgan Cazenove (Joint Corporate Broker)
 William Simmonds / Jérémie Birnbaum (Corporate Finance)                       Tel: +44 (0) 20 3493 8000

 Burson Buchanan (Media Enquiries) 
 Charles Ryland / Henry Wilson / Nick Croysdill                                Tel: +44 (0) 20 7466 5000
 Email: gorestreet@buchanan.uk.com

 https://www.gsenergystoragefund.com (https://www.gsenergystoragefund.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  STRBIGDCXSDDGUC