Gore Street Energy cuts dividend, reports NAV decline
Investing.com -- Gore Street Energy Storage announced a reduction in its dividend policy and a decline in its net asset value (NAV).
The energy storage fund reported a NAV of 102.8p per share, representing a 4.2p per share (4%) decline over the past year, primarily driven by lower revenue assumptions which impacted the NAV by 6.1p per share.
Despite this annual drop, the company saw a 2.3% increase in NAV quarter-over-quarter.
In a significant policy shift, Gore Street has cut its final quarterly FY25 dividend to 1p per share, down from the previous target of 4p per share. This results in a total FY25 dividend of 4p per share, well below the original 7p per share target.
The company plans to pay a 3p per share special dividend once it receives proceeds from U.S. ITC (NSE:ITC) tax credits in the second half of 2025.
From FY26 onward, Gore Street will link dividends to "operational cash flow" rather than maintaining a fixed target, marking a departure from its previous dividend strategy.
On a positive note, the company now expects proceeds from its U.S. ITC tax credits to come in at the top end of its previous $60-80 million guidance range.
Additionally, Gore Street announced revisions to its fee structure, including reducing management fees and removing performance and takeover fees, which will result in annual savings of £1.14 million.
RBC rate Sector Perform, with Price Target GBp 60.00.
The company is scheduled to announce its full-year results on July 17, 2025.
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