REG - Gore Street Energy - Update to Strategy and Capital Allocation

Gore Street Energy Storage FundAnnouncement

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RNS Number : 8584W  Gore Street Energy Storage Fund PLC  17 March 2026

LEI: 13800GPUNVGG81G4O21

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION UNDER THE UK MARKET ABUSE
REGULATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN

 

17 March 2026

 

Gore Street Energy Storage Fund plc

(the 'Company' or 'GSF')

 

Update to Strategy and Capital Allocation

 Clear plan to deliver enhanced shareholder returns

 

The Board of GSF announces an updated strategy designed to deliver enhanced
Shareholder value. Following a detailed review, the refreshed Board believes
that energy storage represents an attractive asset class, but recognises that
an evolution in strategy will better position the Company.

 

Key Components of the Updated Strategy

1.    Enhanced Shareholder Distributions

The Company commits to distributions of 7 pence per share per annum, paid in
four equal quarterly instalments of 1.75 pence per share. This will be funded
through a combination of operating cash flows and selective asset sales. The
first quarterly dividend of 1.75 pence per share in respect of the
December-end quarter will be declared with the NAV announcement later this
week.

 

2.    Disposals

The Company will divest certain operational and pre-construction assets,
including the previously announced German asset, Cremzow, (which has attracted
strong initial interest), and select pre-construction assets. Capital realised
from asset sales, alongside operational cash flows, will fund distributions to
Shareholders. A portion of disposal proceeds will also enable capital
recycling into selective accretive investments. The strategy is expected to
generate proceeds of £25 million in FY26/27, £75 million in FY27/28, and a
further £75 million in FY28/29.

 

Certain assets will be sold in a disciplined and orderly manner, while others
will be augmented or constructed if shown to maximise value.

 

3.    Capital Recycling

The Company will pursue augmentations to increase the duration of the most
immediately viable assets to enhance their value. Duration increases in
markets such as GB and Ireland have been demonstrated to increase revenue
potential and value. Post augmentation, assets will be assessed for sale.

 

Selective partnerships may be formed through JVs to develop the Company's
pre-construction pipeline or fund augmentation capex. This route minimises
capital expenditure by the Company, facilitating ongoing distributions to
Shareholders whilst making selective reinvestments that are deemed most
strategically value accretive. The strategy will target projects with an
expected IRR of c.15% and incremental energy capacity of c.100 MWh in
FY26/27, c.100 MWh in FY27/28 and a further 150 MWh in FY28/29.

 

4.    Strengthened Stakeholder Alignment

During 2025/26, the Board implemented a series of cost reduction measures,
including revising the investment management fee to a 50/50 split between NAV
and market capitalisation, the removal of the performance fee and the
Investment Manager exit fee. In addition, the Board has secured the removal of
the exit fee of 2% of NAV from the Commercial Management Agreement ('CMA').
The Board has determined that the incumbent manager, Gore Street Investment
Management, is currently best placed to implement the new strategy, with
significant asset-specific knowledge and experience. The performance and cost
of the services provided under the CMA are being benchmarked. The Board will
monitor progress against defined KPIs for augmentations and disposals, and is
ready to take further action should it be deemed necessary.

 

The Company anticipates that this updated strategy will materially enhance
Shareholder returns, whilst adding incremental value to certain assets through
augmentation. It recognises that the change in the macro environment
necessitates this evolution to its buy-and-hold strategy.

 

In addition to the planned annual distribution to Shareholders, the Board may
make use of tactical share buybacks, where resources allow, the prevailing
share price justifies, and buybacks are considered more accretive to
Shareholders than reinvestment.

 

KPIs

The Board will monitor the progress of the new strategy against the following
KPIs:

·  Targeted Disposals: c.£25m in FY26/27, c.£75m in FY27/28, c.£75m in
FY28/29.

·  Augmentation and Buildout with an expected IRR of 15%: c.100 MWh in
FY26/27, c.100 MWh in FY27/28, and c.150 MWh in FY28/29.

 

There is currently a continuation vote scheduled for 2028. This can be brought
forward at any stage by the Board and will be if any of these KPIs, including
the payment of any of the quarterly 1.75p distribution, is not met.

 

Shareholder Webinar

There will be a live Investor Presentation on the new strategy via Investor
Meet Company today Tuesday 17 March 2026, at 13:00 GMT.

The presentation is open to all existing and potential
Shareholders. Questions can be submitted pre-event via your Investor Meet
Company dashboard up until 17 March 2026, 12:00 GMT, or at any time during
the live presentation.

Investors can sign up to Investor Meet Company without cost and add to meet
GORE STREET ENERGY STORAGE FUND PLC
via:https://www.investormeetcompany.com/gore-street-energy-storage-fund-plc/register-investor
(https://www.investormeetcompany.com/gore-street-energy-storage-fund-plc/register-investor)
 

Investors who already follow GORE STREET ENERGY STORAGE FUND PLC on the
Investor Meet Company platform will automatically be invited.

 

Angus Gordon Lennox, Chair of the Company, said: "The Board is confident that
this updated strategy represents the right evolution for the Company to drive
increased value for Shareholders. It provides clear targets, is aligned with
current market conditions, and positions the portfolio for value-accretive
reinvestment and disposals. With persistent sector-wide discounts, an
evolution in strategy is essential to restore value and provide attractive
returns.

Following an initial review of the Company's key contracts and managers'
performance and capabilities, the Board has determined that the Investment
Manager is currently best positioned to deliver the outlined strategy and
support the objective of maximising value for Shareholders from the portfolio.
We look forward to providing regular updates as we execute this strategy in
partnership with the Investment Manager."

 

Alex O'Cinneide, CEO of the Investment Manager, commented: "We welcome the
support of the Board for this renewed approach, which enables the Investment
Manager to actively unlock value from the portfolio and react to the changing
macro environment. With clear objectives and active management, we believe
this strategy positions the Company well for long-term success. Following a
period of disciplined execution, and proof of delivery, should public markets
continue to undervalue these assets, we are fully aligned with the Board in
pursuing alternative solutions that maximise value for the Company's
Shareholders."

- Ends -

 

For further information:

 

Board of Directors
 
Tel: +44 (0) 20 4583 6354

Angus Gordon Lennox (Chair)

Email: cosec@gorestreetcap.com (mailto:cosec@gorestreetcap.com)

 

Company Secretary, Gore Street Services Limited
              Tel: +44 (0) 20 4583 6354

Email: cosec@gorestreetcap.com (mailto:cosec@gorestreetcap.com)

 

Gore Street Capital Limited

Alex O'Cinneide / Ben Paulden
                                     Tel: +44 (0) 20 4551
1382

Email: ir@gorestreetcap.com (mailto:ir@gorestreetcap.com)

 

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  (Corporate Finance)
                            Tel: +44 (0) 20 3493 8000

 

Burson Buchanan (Media Enquiries)

Henry Wilson / Henry Harrison-Topham / Nick Croysdill
             Tel: +44 (0) 20 7466 5000

Email: gorestreet@buchanan.uk.com (mailto:gorestreet@buchanan.uk.com)

 

https://www.gsenergystoragefund.com
(https://protect.checkpoint.com/v2/r02/___https:/www.gsenergystoragefund.com/___.YXAxZTpzaG9yZWNhcDpjOm86MzA3OWU2YmEzZTlkNjM4NDYxODJjMjYxMmM3OTM2ODE6NzoyZmUyOmFkOWNmNmY2MTUzZWMwYmQ2ZmU4YjEwNmI5MWI2ZTM5ZjU3NmU0YWEyYWU5MGFhNTdiNjI4MjA2MDUxZDVkYzE6cDpGOk4)

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of UK domestic law ('UK MAR').
Upon publication of this announcement, the inside information is now
considered to be in the public domain for the purposes of UK MAR. The person
responsible for arranging the release of this announcement on behalf of the
Company is Benjamin Hanley of Gore Street Services Limited, Company
Secretary.

 

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