Gore Street Energy Storage Fund (LSE:GSF) reported a significant decline in net asset value for the year ended 31 March 2026 as weaker battery storage revenues weighed on portfolio valuations. Net asset value per share fell to 74.9 pence from 102.8 pence a year earlier, reflecting lower merchant revenue forecasts and softer realised revenues across several of the fund’s key markets. Despite the valuation decline, revenue increased to 36.27 million pounds as the operational portfolio continued to expand, while operational EBITDA remained broadly stable at 18.0 million pounds.
New strategy focuses on improving shareholder returns
The newly appointed Board has introduced a revised strategy aimed at increasing shareholder value through higher fixed distributions, targeted asset disposals, reinvestment into battery upgrades and development projects, and further cost reductions.
The fund has already begun marketing selected assets for sale, while battery augmentation projects at two UK sites remain on schedule. These upgrades are expected to increase storage duration and improve long-term earnings potential. The Board also stated that it may bring forward the company’s continuation vote if newly established performance targets are not achieved, highlighting its commitment to improving returns.
Operational performance remains resilient
Although market conditions remained challenging, the portfolio continued to perform strongly from an operational perspective. Average asset availability reached 94.5 percent during the year, while the battery fleet stored 56,975 megawatt hours of renewable electricity and helped avoid 15,142 tonnes of carbon dioxide equivalent emissions.
However, lower independent revenue forecasts, increased operating and fund costs, together with slightly higher discount rates, contributed to a substantial reduction in portfolio valuations. The company said these factors reflect growing competition within battery storage markets and more conservative long-term market assumptions.
Strong balance sheet supports transition
Gore Street Energy Storage Fund continues to benefit from a strong balance sheet and healthy recent cash generation. Shareholder-friendly initiatives, including cost-saving measures, strategic changes and director share purchases, also provide support for the investment case.
These strengths are balanced by weaker technical share price performance, volatile operating results and a negative price-to-earnings ratio, although the fund’s relatively high dividend yield remains an attractive feature for income-focused investors.
About Gore Street Energy Storage Fund plc
Gore Street Energy Storage Fund plc is a London-listed investment company specialising in battery energy storage systems across multiple international electricity markets. The fund owns a diversified portfolio of assets that generate revenue by providing energy balancing and grid support services while helping integrate renewable energy into electricity networks.
At the end of the financial year, the portfolio comprised 28 projects with total capacity of 1.16 gigawatts, including 643.11 megawatts of operational assets and 458.05 megawatts under development. Through its battery storage investments, the company aims to improve grid flexibility, reduce reliance on fossil fuels and support the transition to cleaner energy systems.
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