29th Nov 2024 10:58
(Alliance News) - Gresham House Energy Storage Fund PLC on Friday said it will reinstate dividends in 2025 once its current debt has been refinanced, as it said the battery energy storage systems sector is "turning a corner".
In a trading update setting out a three-year plan, the London-based fund investing in utility-scale BESS said its future dividend policy will focus on three smaller quarterly distributions with a "final larger payment linked to performance".
It said net debt is expected to peak at 20% of gross asset value, with a continued focus on disposals to reduce debt.
Dividend payments were suspended in 2024 due to a volatile trading environment for BESS. A 5.51 pence per share dividend was declared in 2023.
The company said its financial position is improving with a focus on cash preservation "through the recent challenging operational backdrop".
The firm set a three-year GBP150 million target for earnings before interest, tax, depreciation and amortisation and said it expects Ebitda to be around GBP45 million in 2025.
Chair John Leggate said: "Following a review of the company's performance over recent years and a considered view of the outlook for the coming three-year period, the board and manager are able to offer a positive view that the BESS sector in the UK is turning a corner and is on a path to improving performance."
He said the one factor which improves the company's outlook is that the UK's net zero policy and regulation is becoming more favourable to BESS.
Shares in Gresham House Energy Storage Fund were down 1.0% to 50.00 pence in London on Friday morning.
By Michael Hennessey, Alliance News reporter
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