Gore Street Energy declares quarterly dividend, cuts management fees

(Sharecast News) - Gore Street Energy Storage Fund declared a 1p per share quarterly dividend on Wednesday, and said it expected to pay a special dividend of 3p later in the year, as proceeds from US investment tax credits (ITCs) become available. The London-listed company also announced a sweeping reduction in management fees and the removal of performance fees following a shareholder consultation.

It said the dividend for the quarter ended 31 March was due to be paid on or around 15 August, with the ex-dividend date set for 17 July.

Around 70% of the payment would be treated as qualifying interest income for UK tax purposes.

The board said it expected to distribute a further 3p per share in the second half of the year, once the Big Rock project's ITC proceeds were received.

Combined with cash from the completed Dogfish ITC sale, the total value of ITC proceeds was expected to reach the top end of the previously-guided $60m to $80m range.

In parallel, Gore Street said it would revise its fee arrangements from 1 October.

The management fee would be calculated as 1% of the average of net asset value and market capitalisation, capped at 1% of NAV.

Performance and termination fees would be eliminated entirely.

Based on 2024 figures, the new structure would have saved around £1.14m, not including additional savings from the removed performance fees.

The company's unaudited net asset value as at 31 March was 102.8p per share, down from 107p a year earlier.

Including dividends, the NAV total return for the year was 1.1%, bringing the total return since the initial public offering to 48%.

Following shareholder engagement, the board said it would link future dividends to operational cash flow, replacing its fixed distribution target.

The firm said it was also conducting a strategic review, with an external adviser assessing capital allocation and mid-term options.

Until the end of the review, excess cash would be used to repay debt while preserving flexibility for portfolio investment.

Two US projects recently reached commercial operations, and the company said it held nearly 495MW of construction-ready assets.

Gore Street added that it was planning to release its full-year results on 17 July.

At 1215 BST, shares in Gore Street Energy Storage Fund were up 4% at 62.19p.

Reporting by Josh White for Sharecast.com.