Edison Investment Research Limited
London, UK, 5 February 2024
Edison issues flash on Gresham House Energy Storage Fund (GRID): Responding to challenging times Gresham House Energy Storage Fund (GRID) is the largest UK fund investing in utility-scale battery energy storage systems (BESS). A recent sharp decline in gas prices, a 'disappointing' start to the Energy System Operator's new energy trading platform and systemic delays connecting completed projects to the national grid have raised concerns about the revenue generating capacity of the BESS sector. This has placed significant downward pressure on the share prices of GRID and others in the sector. GRID's share price has declined by more than 50% over the past month and is trading at a 67% discount to its last published NAV. A recent trading update by GRID's manager, Ben Guest, provided details of the company's response to these challenging market conditions, while also reiterating confidence in GRID's positive long-term prospects. Guest and the board insist that the increasing need for energy storage means the longer-term prospects of the BESS industry, and GRID, remain positive. Perhaps the clearest indication of this conviction is the decision to use the opportunity provided by the sharp share price decline to begin a 'limited' share buyback program. Any such purchases will be 'highly value accretive'. This flash note will be followed by a more detailed update on these developments and GRID's prospects over the medium term. Click here to view the full report. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Joanne Collins +44 (0)20 3077 5700investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitterwww.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1830429 05-Feb-2024
