Gresham House Energy Storage Fund (GRID) H1 2025 earnings summary

Executive summary

• Achieved first gigawatt-scale operational battery storage portfolio in Great Britain, reaching 1,072MW/1,701MWh post-period end, with 18% market share by MW and nearly 100% year-over-year EBITDA growth driven by expanded capacity and improved revenue rates.

• Completed refinancing with a £220 million, seven-year amortising loan at SONIA +225bps, unlocking £45 million for growth and reducing interest margin from 300bps.

• 88% of operational portfolio now has long-term revenue floor contracts, enhancing revenue stability.

• Capital allocation prioritised for growth and augmentations, with minimal dividends in 2025–2026 and higher, fully covered dividends expected from 2027 as new capacity comes online.

• External transactions validated NAV, with a minority stake in Glassenbury sold at NAV and a peer acquired at NAV.

Financial highlights

• EBITDA grew by 97.6% year-over-year to £20.5 million, with underlying operational portfolio revenue of £31.7 million (+76.9% YoY) for the six months to June 2025.

• NAV per share at 30 June 2025 was 107.71p, down 1.5% from 109.35p at 31 December 2024, mainly due to lower third-party revenue forecasts.

• Net debt increased to £111.8 million, with net debt to NAV at 18% and expected to remain below 30%.

• EBITDA margin reached 64.7% for the period.

• Share price at period end was 78.5p, narrowing the discount to NAV to 27.1%.

Outlook and guidance

• Focused on delivering the Three-year Plan, including augmentations and construction of a 694MW pipeline, aiming to grow operational capacity by 70% to 1.77GW/3.44GWh over two years.

• Augmentations underway are expected to add 350MWh across eight projects, with further expansions planned.

• Dividend policy prioritizes reinvestment, with minimal dividends in 2025 and 2026, and higher, fully covered dividends expected from 2027.

• Additional project finance facilities being arranged for new pipeline construction.

• Ongoing regulatory improvements by NESO and Ofgem are anticipated to further enhance revenue opportunities.