Gresham House Energy Sto... Share Discussion Threads

[jonwig] 30/4/2021 07:05

It's covered by earnings but not operating cashflow. The eps are unrealised gains on their investments - ie storage projects. (The cashflow statement shows this.)

I think I have a way of seeing how they do this. Each individual project does earn cash, but it shows up as a gain in the value of the project and not as cash at parent company level, as it's not remitted. That's probably the explanation.

[webby] 29/4/2021 21:07

So how can they say dividend cover 1.3x?

[jonwig] 28/4/2021 18:42

Yes, but earnings were non-cash; operating cashflow was minus £5.64m.

[webby] 28/4/2021 18:33

"Dividend coverage in q1 2021 was 1.3x despite a large cash balance." I take this to mean from earnings.

[robertspc1] 28/4/2021 17:09

Good webinar. Big opportunity to get cost of capital down with new debt facility soon. Another one for the pension pot

[jonwig] 28/4/2021 08:21

Some very good things here, and the market loves it.
But I don't understand their accounting: huge unrealised gains on their projects, but they absorb cash. What are they paying the dividend from? - an existing cash pile by the looks of it. (The interest received is relatively clear.)

[speedsgh] 28/4/2021 07:49

Quarterly NAV, Dividend and Factsheet publication -

Q1 2021 NAV

Gresham House Energy Storage Fund Plc (LSE: GRID) (the "Fund") announces its NAV as at 31 March 2021 was £371.8m or 106.66p per ordinary share.

Dividend Declaration

The Board is pleased to announce a dividend of 1.75p per Ordinary Share for the period from 1 January 2021 to 31 March 2021. The dividend will be paid on 4 June 2021 to Shareholders on the register as at the close of business on 14 May 2021. The ex-dividend date is 13 May 2021.

OTHER EXCERPTS

"There was a 4.36p uplift from the revaluation of projects recently acquired (previously held at cost) while income in excess of dividend distributions in the quarter accounted for a 0.72p benefit. Partially offsetting this by 1.22p were a more cautious set of assumptions which included taking into account the impact of the corporation tax rate rising to 25% from 2023, as announced in the recent Budget."

"Dividend coverage in Q1 2021 was c.1.3x despite a significant cash balance and, as such, the Fund remains committed to its dividend policy of 7.0p per share paid in equal quarterly instalments."

"Finally, the Fund is exploring a debt facility which is expected to drive down its cost of capital which, in turn, is expected to be significantly accretive to GRID's overall return on capital, once any debt facility is fully deployed. The Fund will provide a further update in due course."

"The Investment Manager is also preparing to commence construction, subject to final due diligence, on a further 275MW across five projects (one is 100MW, two are 50MW and the other two are 40MW and 35MW respectively). The construction of these projects will fully commit all the funds raised in the November 2020 equity issue.

The Fund has a significant additional exclusive pipeline of 527MW across eight projects which will be built subject further debt and/or equity fundraising."

[igoe104] 28/4/2021 07:15

4th June the next dividend payment date, one for the diary.

[rambutan2] 27/4/2021 16:31

Worth noting that GRID use a discount rate of 10.75% across the port, whereas GSF use 6% for those up and running and 10% for the rest. So quite a difference.

Also GSF has a performance fee, GRID doesn't.

[lageraemia] 27/4/2021 10:32

Cheers Guys.

[gateside] 27/4/2021 10:20

I was looking at NBMI on ii and they were classed as a complex investment too.
There is a short questionnaire on ii that you can fill out about your knowledge of Markets and a disclaimer. On completion of that it will allow you to trade what they class as complex investments online.

[webby] 27/4/2021 10:17

I bought Grid on II without calling. Think there was an online form to do.

[lageraemia] 27/4/2021 10:12

Yeah I agree. For some reason though, GRID is classed as a 'complex investment' on ii and can't just be bought without calling them, whereas GS can.

I went into GSF first as a result

[gateside] 27/4/2021 10:03

Good point.

As jonwig mentioned above - maybe holding both is the best way forward

[lageraemia] 27/4/2021 09:40

GSF has just raised money and almost double the size it was now.....

[gateside] 27/4/2021 09:26

Looking at GRID & GSF and trying to work out which is the better investment. Tempted by GRID, prefer companies with a larger Market Cap. Also their website seems more informative and transparent so researching the company is easier. Probably not much to choose between the two.

[jonwig] 03/3/2021 08:22

Gore St (GSF) has just announced its participation in NG's Dynamic Containment strategy. From what I understand, GRID's partnership with Flextricity means it is already involved.

I'm not favouring one of the pair against the other. There may be a case for holding both.

[jonwig] 01/3/2021 20:07

I think GRID is UK-centred, GSF has assets in Ireland. GRID is over twice the size.

Strangely, the accounts are quite different and I haven't really got to grips with them. GSF's nav is below its IPO level, GRID's a bit higher, but then that might not be a valid comparison if they're worked out differently.

[lageraemia] 28/2/2021 10:10

Nice link thanks!

Does anyone have a particular point of difference between GRID and Gore St funds?

[jonwig] 27/2/2021 08:24

Good to watch, thanks. He comes across very well.
Only about one minute on GRID, but it's his pick in the renewables sector.

[tomps2] 26/2/2021 10:44

Gresham House Energy Storage Fund (GRID) Spoken about in a piworld interview with Edmund Shing; Mr Shing’s thoughts from 17:24.
Watch the video at:
Or listen to the podcast using the following link:

[rambutan2] 19/2/2021 21:05

19 February 2021

GRESHAM HOUSE ENERGY STORAGE FUND PLC

("GRID" or the "Company")

Declaration of Dividend

Gresham House Energy Storage Fund PLC (LSE: GRID) is pleased to announce a dividend of 1.75p per Ordinary Share for the period from 1 October to 31 December 2020. The dividend will be paid on 26 March 2021 to Shareholders on the register as at the close of business on 5 March 2021. The ex-dividend date is 4 March 2021.

Any such dividend payment to Shareholders may take the form of either dividend income or "qualifying interest income" which may be designated as an interest distribution for UK tax purposes and therefore subject to the interest streaming regime applicable to investment trusts. Of this dividend declared of 1.75 pence per Ordinary Share, 0.23 pence is declared as dividend income with 1.52 pence treated as qualifying interest income.

This dividend completes the 7.0p per share dividend target for 2020 and the Board is pleased to confirm its commitment to delivering a 7.0p per share dividend for 2021.

[jonwig] 12/1/2021 11:08

See post #78 - VFRB still at start-up stage I think.

[owenski] 12/1/2021 10:27

cheers, I was drawn to GRID as an income stock but need to get my head around how it works a bit more.

I'd be happier if it was running VFRB estates rather than Lithium, I think Lithium is still relatively new wrt these grid applications and so the full operating cost cycle isn't factored in yet, at least I don't believe it is, but it will come.

Thanks for your comments.

[jonwig] 12/1/2021 10:17

I think the accounting treatment is that GRID doesn't directly own the installations, it owns (part or full) the individual operating companies. It then receives dividends from these which are net of capex and dpreciation.
Then its income and assets are based on discounted cash flows which might be only over ten years.