Gresham House Energy Storage H1 2025 Earnings Report

Gresham House Energy Storage EPS Results

• Actual EPS: -GBX 0.54
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Gresham House Energy Storage Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Gresham House Energy Storage Announcement Details

• Quarter: H1 2025
• Date: 9/24/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, September 24, 2025
• Conference Call Time: 6:00AM ET

Gresham House Energy Storage (LON:GRID) Fund plc (GRID or the Fund) seeks to capitalise on the growing intraday supply and demand imbalances caused by Great Britain’s ever increasing reliance on renewable energy. The Fund aims to provide investors with an attractive and sustainable dividend by investing in a portfolio of utility-scale Battery Energy Storage Systems (BESS) located in Great Britain, which primarily use batteries to import and export power, accessing multiple revenue sources available in the power market. Gresham House Asset Management Limited (GHAM), is the investment Manager for Gresham House Energy Storage Fund plc. GHAM, the operating business of Gresham House plc (GHE), a London Stock Exchange quoted specialist asset manager, manages funds and co-investments across a range of differentiated alternative investment strategies for third-party clients. The company is built around a long-term investment philosophy and applies private equity techniques to due diligence and investment appraisal.

Gresham House Energy Storage H1 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Year-on-year revenue growth and a 97.6% increase in EBITDA driven by expanded operational capacity and higher revenue rates.
• Positive Sentiment: Reached 1.1 gigawatts of operational capacity, with plans to grow to 1.8 GW two-hour duration in the near term.
• Positive Sentiment: Completed refinancing and upsized debt facility to $220,000,000, lowered financing costs to a 2.25% spread, while maintaining debt/NAV below 50%.
• Positive Sentiment: Reinstated a modest dividend for 2024/25 and projects potential free cash flow of over 10p per share by 2028 under conservative merchant revenue assumptions.
• Positive Sentiment: Anticipated regulatory reforms—including enhanced state-of-charge visibility and new balancing platform—expected to reduce skip rates and boost battery revenues.

Presentation

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

I'm happy to just get this started. We should hopefully be joined by Rupert Robinson shortly, and Ben Gess, who's the lead fund manager on this. I myself, I'm James Buston. I'm the assistant fund manager. I have to start the presentation.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

Once Ben and Rupert are back online, they can jump in as well. If we start with the first slide, please, Michelle. Next one. Great. So in the highlights, we've covered the the key topics to point out.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

So year over year, we've had substantial growth in both the revenues and the EBITDA. EBITDA growing by almost a 100% at 97.6%. Revenue slightly less. This is largely driven by two factors. One being the increase in operational capacity.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

You can see that in the bottom left. But also the revenue rates has improved quite substantially since h January as well. I see Ben's joined the call. Ben, we got started. I just covered the revenue and EBITDA so far. You're on mute. Ben, you're on mute.

[Ben Guest, MD - Energy Transition at Gresham House]

Apologies, everyone. Yes. Sorry. I'm online now. We've had an Internet cutout in our building, and there's a degree of hotspotting going on with apologies.

[Ben Guest, MD - Energy Transition at Gresham House]

Not don't know if a bit more embarrassing than Donald Trump's escalator, Ash, at the at the UN. So, yes, thank you, James, kicking off. We'll launch or carry on from here. Thank you again. So have you been through this page, James?

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

So I've just started by highlighting the year on year revenue and EBITDA growth driven by the operational portfolio scale increasing during the year, but also the underlying revenue rate having been at its low point in H1 twenty twenty four. We're in a much healthy position in H1 twenty twenty five, but the curves will show there's kind of room to grow, and we're looking forward to developing that.

[Ben Guest, MD - Energy Transition at Gresham House]

Fantastic. Great. Yes. And as James has just said, we're we're delighted to have reached the the gigawatt scale mark. We're we're now at 1.1 gigawatts.

[Ben Guest, MD - Energy Transition at Gresham House]

So just to complete the rest of this page, if I'm apologies for any overlaps. The NAVs drifted down by one and a half percent over the interim period driven by continuing to reduce curves. We'll touch on that in a moment. We've got revenues growing strongly year over year. Obviously, at this time last year in terms of in first half terms, we were in in the lows of the merchant market environment, which has since since significantly recovered.

[Ben Guest, MD - Energy Transition at Gresham House]

The the portfolio debt was was at $160,000,000, drawn up $1.07 5,000,000 facility in terms of what was available as amended in gross terms. And we've now upsized that, and I'll come on to that also. And we've also significantly contracted our portfolio now and taken got a five sixty six megawatts of of contracted megawatts today, but that's gonna go towards 900 megawatts and above in the near future. And, of course, we've pre contracted our pipeline assets as well. Moving on to the next slide, if that's okay.

[Ben Guest, MD - Energy Transition at Gresham House]

Thank you very much. So really focusing on on on the meat of our work at the moment. Obviously, we've you know, the the opening bullets here are speaking to what we've done so far. We have increased sort of the the back completed really the background and historical construction programs in terms of operational capacity of of the full one point nearly 1.1 gigawatts done at 330 megawatt hours of initial augmentations through the end of last year and beginning very beginning of this. We've now concluded the refinancing and upsized the financing to be able to get the augmentations underway and raise the capital to finance a portion of the of the new projects, and in particular, the acquisition of the project rights.

[Ben Guest, MD - Energy Transition at Gresham House]

And, of course, the the new new near term goal is really to complete the the funding and financing and construction preparations to get underway with construction at the end of this year on as many projects as possible. And I'll talk to, you know, the risks around that in in in general in a moment. It's we've obviously we're very pleased to have done so. I've reinstated our capital allocation policy and our dividend, and pleased to say that we've got a a clear story now and and clarity as to what we're doing. It does mean that in our growth focus and assuming relatively cautious merchant backdrop, just in terms of downside case modeling, we have reinstated a very modest dividend, especially for this year and next.

[Ben Guest, MD - Energy Transition at Gresham House]

And thereafter, we expect to have the potential for more sizable dividends on the back of more sizable cash flow, and we'll revisit the picture at the end of next year. But just naturally, as you have capacity growing and the construction cost to to build that capacity tailing off, you you see the expansion in the free cash flow figure in absolute terms and per share. So the focus is very much on the growth opportunity. And then just one more highlight very briefly is is is on the fact that we did conclude a transaction at the carrying value of the portfolio, which sort of echoed what was also going on in in in terms of the Harmony transaction that was well publicized. In terms of capital allocation, you can break this down into sort of the focus on the growth in the near term and the the potential for for for much more substantial income over the longer term And, you know, just playing to the theme and reality that we are an income growth focused business, but with the growth opportunity being pretty strong at the moment as a function of lower battery prices, the ability to finance at lower cost of debt, And, you know, while the revenue outlook is lower than it has been, it certainly is holding up better than than the battery prices, which obviously results in a in a strong overall financial equation.

[Ben Guest, MD - Energy Transition at Gresham House]

So we're very much focused on the three year plan. What we're talking about in this presentation are the levers that we're pulling that are a substantial subset of the three year plan, which covered augmentations of 1.5 gigawatt hours. At the time, it was a 680 megawatt portfolio, slightly upsized to six nine four, and a leg called alternative revenues. Really, what we're talking about here is subset of 350 megawatt hours of that 1.5 gigawatt hours, all of the new pipeline. And and at this stage, just to keep the picture simple, and none of the alternative revenues.

[Ben Guest, MD - Energy Transition at Gresham House]

So when I come on to talking about what we might be able to earn earn in a couple of years' time, it's a function of this capacity picture. And that capacity outlook is 1.8 gigawatts at a at a two hour duration up from the 1.1, one point six hour duration we've got today. The last thing I want to say quickly just as sort of a contextual point, which I'm I'm sure comes up in conversation amongst analysts and and investors, is the debt picture and the overall capital drawn. So we've upsized our debt facility on the operational portfolio to 220,000,000. Naturally, this is amortizing, so straightaway starting to decline as we're repaying it from from day one.

[Ben Guest, MD - Energy Transition at Gresham House]

We will secure additional debt to complete the financing of our new pipeline, and that debt exposure will grow over time. The net of those two will be the the resulting debt picture at any moment in time, but both will be amortizing facilities. And we we are clear that we won't exceed our debt to NAV limit at any stage. And just for context, we we see that our peers in the renewables infrastructure and battery infrastructure space typically have a debt a debt limit of of 50% of GAV, which is actually a a substantially higher limit if it was to be expressed in NAV terms debt to NAV terms. So in terms of the outlook, so once we've completed this construction, obviously, the capacity is higher.

[Ben Guest, MD - Energy Transition at Gresham House]

Just come back to this one. Thank you. And and construction costs have rolled over. We'll we'll be in a position to upsize dividends or at least at least at the very least, our free cash flow will be substantially higher. And just for the benefit of our investors, we've included a a scenario where if revenues on a merchant basis were about today's levels and perhaps a little bit higher, but certainly lower than where revenue projections are on the back of an improving skip rate environment and and better trading for batteries in that context.

[Ben Guest, MD - Energy Transition at Gresham House]

When we get to 1.8 gigawatts and you multiply that capacity by the yearly revenue rate, which is the sum of this merchant figure plus capacity market revenues, apply a margin to that overall revenue and and deduct PLC costs and all debt servicing, so principal repayments and interest service payments. We we we project that we are we'll we'll be in in in excess of 10 p per share once this capacity is built. So, hopefully, that's a useful picture for for investors to appreciate the benefits of this substantial subset of the three year plan being completed. And as I mentioned earlier, we do have ambitions to do additional augmentations and to reveal our alternative revenue strategy, hopefully, as soon as possible. In addition to that, we as part of our capital allocation policy, we will consider the repurchasing of shares, and we'll have the flexibility to to do this from excess free cash flow, in particular, while shares trade at a substantial discount to NAV.

[Ben Guest, MD - Energy Transition at Gresham House]

We can turn to the next one now, please. So in terms of NAV, broadly, strong tailwinds from within the business in terms of the fact that we're accumulating capital, the fact that we're completing construction, which kicks off revenues, means that we can revalue assets at their operational discount rate rather than their in construction higher discount rate. And and there's been a couple of land acquisitions, which take away lease costs and have a net benefit and then some lease extensions. With a combination of all of these led to an underlying increase, but, of course, third party curves continue to to drop. A couple of reasons for that, and I'll move on to the next slide to to touch on that.

[Ben Guest, MD - Energy Transition at Gresham House]

But, essentially, curves continue to to come down. In fact, what happened in the first half is one of the consultants brought their curves down. The timing of of the release of of the other consultants' curves meant that the second quarter was impacted for similar reasons to the to the first move down in the first quarter. A large part of that is driven by where gas prices have out turned in recent months as they drive spreads in power prices or or or the expectation spreads. And and overall, we think that third party consultants are becoming more cautious as to the potential for the industry probably as a degree of such conservatism in the context of how well industry revenues recover as industry processes and control room and technology improves and so on.

[Ben Guest, MD - Energy Transition at Gresham House]

So we'd like to think that these are becoming quite conservative, but in any case, there's still an expectation of a significant recovery in revenues. The illustration we gave you was at 75,000. The by 2028, the expectation is for two hour assets is in the region of 90,000. And so if that's achieved, then the underlying free cash flow per share would be substantially higher given the given that all of that would fall to the bottom line. Just as a sort of additional couple of points, the overall merchant discount rate that we apply has remained the same in this in this period and and in the first half first half year stage, so 10.85%, and the weighted average discount rate stood at 10.7% overall.

[Ben Guest, MD - Energy Transition at Gresham House]

On the next page, we cover our our debt arrangements. Specifically, we're really, really pleased to have concluded the refinancing, which concluded in in August. So after the half year end, we've upsized our our debt facility from the $1.07 5,000,000 of gross debt that was available to 02/20, which, as I mentioned earlier, leads to capital available for augmentations and some funding of the new pipeline. We have reduced the cost of our debt from a 300 basis point spread to two two five, which we're very pleased about, and that really is a function of the next bullet there, which is the contracted revenues driving that where we see full coverage of of debt service principal and interest over the the the legal tenor of this debt, which is seven years, although it's sculpted as though it's amortizing over fourteen years. Happy to take any questions on that if there's any.

[Ben Guest, MD - Energy Transition at Gresham House]

In terms of the the clear focus for the second half, it's about getting having done the work on augmentations and refinancing and augmentations and contracting is to get the the new projects under construction. That requires our projects to come out of the gate two process, which is a a national reevaluation of the entire queue that is well being well publicized. So we're at the mercy of the timings around that, but we're we're con we're not concerned that it's anything more than a timing consideration, and and hopefully, things all work out so that we can not be slowed down by by that exercise, which is being run by NISO and mandated by government. But the the key exercise now is to complete the financing. We've already pre contracted the floors on four of the five projects.

[Ben Guest, MD - Energy Transition at Gresham House]

So we've got 57 megawatts still to contract. Because these are new projects, it's more straightforward because the debt typically is sized against the warranty periods, and warranty periods for new batteries are extending in the region of twenty years now. So that allows for the amortization period and, therefore, time to repay, which is very positive for cash flow to extend a bit, you know, sort of hopefully upwards of fifteen years. And and we hope to conclude all of this by the end of of this half so that we can get into construction. Of course, there's a huge amount of work going on separately to that around meeting grid connection milestones, long lead items, contracting, which we're all running internally.

[Ben Guest, MD - Energy Transition at Gresham House]

So and it's leading to some pretty attractive costs from a construction perspective. So, hopefully, that's useful. Again, happy to take any further questions on on that detail. If we move to the next page where we've been monitoring very closely the the macro picture, if you like, in terms of the skip rates, which is one minus the utilization of batteries when they are in merit. In other words, they should be taken because they're competitive and the cheapest source of capacity to the control room operated by NISO.

[Ben Guest, MD - Energy Transition at Gresham House]

And while this chart shows the improvement from the beginning of 2024, which is material, bear in mind that the y axis here does not start at zero, so it flatters the numbers as in in that the skip rate still remains high in the eighties. NISO do express this with some various adjustments. They call them stages, five different stages and adjustments, which bring their numbers down their preferred numbers down to about 50%. But the reality is that we see clearly that all of the skips are are avoidable if the systems, the processes, and the regulations are in place to to to do so. And there is a lot of promise here that the new automated fully functioning operate open balancing platform installed by NISO is going to now become the equivalent of the balancing mechanism, automate the balancing mechanism from October, in other words, next month, and we'll see how that impacts skip rates.

[Ben Guest, MD - Energy Transition at Gresham House]

But it should lead to an improvement because we get national level automated balancing and trading of around what are called constraints, the bottlenecks in the network. So all of that becomes automated from from next month. And, crucially, another big source of skips as as as they're called is caused by the fact that before you get to the balancing mechanism time frame, which is eighty nine minutes, there's a need to make sure that the assets that are available in the balancing mechanism are contractually obliged to show up. Now that means historic that that's been how it's been operated for a very long time, and gas assets have always been reserved outside for contractual reasons, but also for technical reasons. They need to be warmed up or started up.

[Ben Guest, MD - Energy Transition at Gresham House]

The the fact that the control room isn't being unable to fully see the state of charge of our batteries has meant that they've had to assume at best that they have thirty minutes in them. Until March, it was even only fifteen minutes. With with a key rule change that's coming in from Ofgem implemented by NISO and and Alexon, the the settlement party sitting and owned by NISO, we expect that to be a very important source of lower skips as batteries are finally able to compete at the reserving stage before we get to the balancing mechanism period and so that they get operated in the BM accordingly. So until that happens, we we do have some fairly structural issues, which we've been pointing out, and we're excited about these changes coming about. So the announcement from Ofgem is expected this month or next with the technical implementation of that a few months later.

[Ben Guest, MD - Energy Transition at Gresham House]

Moving to the next slide. In terms of revenue mix, obviously, over a long period, we've been saying that trading becomes our mainstay source of revenue. That's where the real need for batteries is, moving large amounts of energy around as opposed to the small balancing of of energy associated with what's what's called frequency response. So frequency response, which was a very profitable source of revenues in the past, has naturally matured. We've been talking about this, frankly, for years since IPO, and and we expect to see the the yellow band here to continue to reduce while the trading side, which is really the combination of tolling, which is someone else trading it and paying us for that, or the dark blue, which is our own traders doing this, externally sourced traders, but but still trading on our account.

[Ben Guest, MD - Energy Transition at Gresham House]

The combination of those is the sum of all the trading, and that's that number is growing, and we should expect it to keep growing. Capacity market revenues will remain in the 10 to 15% range we expect, which is the lighter blue bar. Next page, please. So bringing this together, if if we focus on the thick light blue line, that's the actual monthly revenues of this business. A chart this is a chart that we've shown several times before, obviously, adding the latest information as as at each at each stage.

[Ben Guest, MD - Energy Transition at Gresham House]

And we can see that, you know, there's clearly been a pickup in revenues versus the the the middle part of of last year, and dare I say, '23 as a function of growing capacity and as a function of revenue rates recovering, especially from the first quarter of last year. There's been a fairly quiet period relative to the beginning of the year, which is normal seasonality in the revenue rates through July. They have picked up in in in September in particular, and we do expect a sort of a natural seasonality as we get some spikier prices in in the winter months. We'll see what happens, of course. And, of course, in the background, you've got the bars, which show the capacity and, in particular, the capacity we've reached in the recent past.

[Ben Guest, MD - Energy Transition at Gresham House]

And there's still some benefits come through from the the commissioning of the last assets, which didn't really play a significant part in the first half of this year. So we should see an uptick as a function of those assets being online as well. Next slide, please. So this is just a snapshot of the of the grid portfolio. It's a pretty substantial portfolio now.

[Ben Guest, MD - Energy Transition at Gresham House]

Just focusing on the incremental growth, which will obviously lead to the bars in the prior slide I just showed you to go up eventually substantially up to 1.8 gigawatts from the 1.1 today. And the the assets that will contribute to that growth are the ones in the middle of this page shown in the exclusive pipeline box. And you can see that the average size of these projects is growing substantially. So Kkenzie and Arca Hill are both 240 megawatt projects, both connected at the National Grid transmission operator level. That's National Grid with a small n and g because the national grid company in Scotland is Scottish Power Transmission in The UK in England, sorry, it's National Grid Energy Transmission.

[Ben Guest, MD - Energy Transition at Gresham House]

So those are our two largest projects, and even the others the other three are are pretty substantial projects. And four of these projects, all but l and two, are connected to the transmission operator. Next slide, please. This next slide gives you the picture from a competitive player standpoint. We can see that Grid continues to be the largest player.

[Ben Guest, MD - Energy Transition at Gresham House]

There's a a big increase in in the combined bars driven by the orange bar at the top, and that's a function of the the latest capacity coming online, which we're pleased to see and shows us as the continuing industry leader. I'm always amazed by how long the tail is in this chart, but there are a handful of strong competitors, and there are some players who are going to be commissioning some pretty large batteries. But, of course, we'll be growing as well. So just on the last slide now, just to summarize our overall presentation, and apologies again for the mishaps at the very start. We are fully focused on the three year plan from a combination of augmentations, which are now funded and actually getting underway.

[Ben Guest, MD - Energy Transition at Gresham House]

Some of the in fact, a couple of them already are, and we can expect to conclude seven of the eight augmentations that are currently planned by the middle of next year with the last one con continue completing in the in the second half of next year and getting underway with the construction of our new pipeline, ideally, many projects as possible by the end of this year, if not beginning of next. And this will drive the the outlook that or scenario, if you will, that we highlighted in in terms of potential free cash flow of this business of 10 and a half p in a 2028 time frame on a per share basis. There's a lot going on at the regulatory level. Positive changes. We're we're getting towards the end of this big reassessment of the entire national queue.

[Ben Guest, MD - Energy Transition at Gresham House]

We think we're well placed to benefit from that. Just another piece of regulatory news in in the last couple of days, which is public information, is around the long duration energy storage backdrop. Our Kokensee and Oka Hill pipeline projects and L M 2 are all eligible to submit. So there's a two stage process where you apply for eligibility, and then you submit to to try and be awarded a contract. These would be contracts that allow us to extend the project's capacity and duration to a minimum of eight hours.

[Ben Guest, MD - Energy Transition at Gresham House]

We could build it to a longer duration. We strongly believe, and this is evident in the the fact that the majority of the capacity that's been allowed through to then tender is battery technology, not pump storage hydro or other emerging technologies. And I think that will remain the case due to the defacing nature of the technology, but that's a really important development. In addition to those pipeline projects being eligible, we've got Melksham becoming eligible, which is our 100 megawatts operational asset. All the changes I've mentioned, the ex an expectation of reduced skips as a function of the state of charge measurements of batteries being announced by Ofgem and then implemented by the control room, and the fact that the OBP, the open balancing platform, becomes the main way through which balancing takes place.

[Ben Guest, MD - Energy Transition at Gresham House]

Let's see if these promises translate, and that we're fully focused and and engaged very fully with with NISO and Ofgem. And then, generally, we're seeing continued, and we're pleased to see the continued support for batteries at a at a government level. There is, after all, a plan to complete the Clean Power 2030, which might extend to 2032 or whenever it is, but the reality is that there's a strong focus on solar, wind, and batteries as the main ways that we generate power in this country with longer term, some additional generation from nuclear as well. And then, of course, last but not least, we've reset our dividend policy, echoing the focus on this growth. But with a clear guidance, I hope that once we've completed our capacity growth, we'll be in a strong position to generate significantly high levels of cash flow on on an absolute and per share basis. Back to you, Rupert.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Ben, thank you very much. And it's been an impressive six, nine months in terms of executing on the three year plan, still a long way to go in terms of augmentations and executing on the pipeline. But I think a lot of progress has been made over the last nine And also thank you to shareholders for their patience and working with us through what was a very challenging and difficult 2024. And we don't underestimate that whatsoever.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

We've had a number of questions in. If I could invite those people who would like to ask questions to keep sending those in. Perhaps if I can start with one, Ben. And obviously it's been a bit of a frustrating sort of six months in terms of some very positive drivers towards higher NAV and then obviously offset by a further reduction in the forward curves. Can you just give us a sense of what further risks you see to a further downward revision to the forward curves?

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Or are they now have they now fallen to a level where you you you feel most of the bad news is is priced in if one can be as bold to make that statement?

[Ben Guest, MD - Energy Transition at Gresham House]

Well, clearly, obviously, the the they're independent parties, so they're within their rights to to revise their figures. Sure. To the extent that the falling gas price and and the gas price is now at levels pre the Ukraine situation and and around the COVID levels. So they really are gas prices are really quite low level. So any reflections of of translation of of that lower level to to curves is something that probably should fade as a driver.

[Ben Guest, MD - Energy Transition at Gresham House]

There is there are lots of different factors. Ultimately, the the these forecasters are modeling the industry, modeling installed capacity, and and modeling demand, how they intersect on a half hourly basis, which drive half hourly prices, and then they look at the volatility of those half hourly prices and assess how much money could be made by batteries in providing the necessary balancing of supply and demand both through the wholesale market and in the balancing mechanism. I think there's an there is an overlay now that's been introduced as a result of the realization that skip rates are a fundamental issue or have been a fundamental issue in the in the balancing mechanism, and dare I say, in the broader context of reserving as well. And there's an assess assess assessment assumption that that we won't get back to or get to zero skip rates. In fact, probably quite far from that.

[Ben Guest, MD - Energy Transition at Gresham House]

I'd like to think that that gets proven wrong at some stage given that if we're gonna really rely on batteries to balance solar and wind generation and avoid the very, very substantial and rapidly rising curtailment costs and balancing costs that we see all the time and are hitting the press headlines all the time and the the fundamental reason for that is, I believe, skip rates, then then I'd like to think that it gets solved. The mechanisms are in place to solve processes, systems, and regs to to allow that all to happen. And if and if it does all work out, then I think the curves will go probably quite a lot higher. On the on the flip side today, I'd like to say that if one was to look at our share price, it's really just discounting today's revenue environment, today's cash flow yields, and probably none of the growth. So those are the extremes.

[Ben Guest, MD - Energy Transition at Gresham House]

You know, we complete the growth, get to the higher levels of potential revenue reflecting historical curves to where we are today. And I'd like to think there isn't too much downside to where we are today in terms of where the share price is and what it's discounting.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Thank you, Ben. Okay. Let's go into some other questions. With regard to the debt financing that's expected to be secured for the construction of the new projects, I assume, therefore, the six ninety four megawatts. Are you able to provide an indication around expected debt quantum given the floors of four or five unknown?

[Ben Guest, MD - Energy Transition at Gresham House]

We we've got to be careful what we say to avoid, a, talking about commercially sensitive topics and selective disclosure and just getting ahead of ourselves in terms of what we disclosed. But this will be a project financing along the lines of what we've done on our operational portfolio, number one. The way to calculate the likely level of debt, and I appreciate this, some people might need some guidance on what these numbers are, but you take the cost of building these projects and you apply a a a percentage somewhere between 50 and a 100%. So sorry for the large range, but it's commercially sensitive figure at this stage. And that will set the the the senior debt level, and that senior debt will be structured of project finance.

[Ben Guest, MD - Energy Transition at Gresham House]

So to the uninitiated, that's essentially like a project mortgage facility. It's amortizing. We're repaying it every every half year in this case and over a period of, you know, fifteen, maybe a couple of years longer than that. And and so the the quantum will be obviously substantial if you're taking $6.09 4 and then multiplying it by somewhere between those two percentages. But we are, as I said before, very confident that the combination of the amortizing existing facility of two twenty, which is reducing as we speak, so to speak, and the new facilities that will ramp up as we get through construction will result in a blended debt level as a percentage of the prevailing NAV at that time that remains below 50%.

[Ben Guest, MD - Energy Transition at Gresham House]

Okay. That provides the color that people need. But we will provide more color, of course, as we get closer to the conclusion of this

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

process. Okay. Next question. Are construction costs expected to reduce relative to the costs incurred on recently built construction assets given the level of CapEx deflation, particularly on BESS equipment over the past year?

[Ben Guest, MD - Energy Transition at Gresham House]

Short answer is absolutely yes, which is what makes the investments particularly attractive today in terms of augmentations and in terms of new pipeline. So there will be a and this starts to speak to and I don't want to make a prediction here, but there is obviously a requirement for us to build assets out better at return than our prevailing discount rates. Because of these dynamics, the IRR on new construction from augmentations to new pipeline is substantially more profitable than our cost of capital, which is why we're so focused on growth. And and we expect a meaningful uplift to cost as a result of that as we value assets at the at the operational discount rate in due course. And we're entitled to do that from a valuation policy perspective as soon as financing is there.

[Ben Guest, MD - Energy Transition at Gresham House]

So we are now having closed the debt post the period end, having financed the augmentations that will start to feed through into future NAVs. And then once we secure the financing, ideally, before the end of this year, that will also allow the year end and and subsequent NAVs to start to reflect the new assets and and their net present value.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Thank you. Now there there there's there there are number of questions around capital allocation policy and around the excitement of of the three year plan, but the company still trades at a circa 30% plus discount to NAV. There there's there's obviously a focus on growth at the expense of of of dividends over the next couple of years, but there's also reference to share buybacks. Right. The the the question overall, is there a firm plan and focus to narrowing the discount on this trust?

[Ben Guest, MD - Energy Transition at Gresham House]

The the the helping helping our investors understand where our business is heading is is is the most important thing. We we you know, of course, buybacks and other mechanisms we can come on to, but this is why even though it's yeah. I appreciate that it's not really our our role to to give forecasts in the way that in any firm way, but to help our investors understand how to think about this business. If we're if we if you take the installed capacity at a certain duration, it will be at two hours. It's 1.6 right now.

[Ben Guest, MD - Energy Transition at Gresham House]

And an expanded portfolio of 1.8 gigawatts and a two hour plus duration, that is the starting point. Yeah. That capacity, what can that earn? We've guide well, not guided. Sorry.

[Ben Guest, MD - Energy Transition at Gresham House]

We highlighted that if we were to be earning 75 k per megawatt per year on the merchant side, we know what we're going to be earning because it's contracted on the capacity market side, which have contracted revenues over fifteen years. Deduct the operating margin. Deduct all debt service, which includes interest and principal, which is true cash flow that could be used for all the purposes had we had a different debt structure, but we choose to do it this way. The and then after all PLC costs as well, the free cash flow at that point is going to be upwards of 10 p once all its capacity is built exactly as illustrated. So that means that the share price of 73 p can it can be compared to, you know, price to not just cash flow, which is a traditional measure, but price to free cash flow will be seven times in in in 2028, give or take, assuming no recovery or no meaningful recovery in the merchant trading level.

[Ben Guest, MD - Energy Transition at Gresham House]

Of course, if we get up to 90,000, 90 merchant rate, all of that falls to the bottom line because the operating cost of the business don't really change if you if you got better better pricing and spreads in in for the batteries to earn from. So that that's the picture, and and we can only keep reiterating that. And I think it's important to sort of start painting the picture, you know, ideally 10 p and upwards and to highlight that everything we've just discussed, I think, that results in in that potential figure, plus or minus, whatever it is depending on changes to that and to do for whatever reason, as in particular, the trading environment, there is still further work being done on additional augmentations to be funded, to be, you know, discussed once we've got all of this underway and our alternative revenues for which we've reserved a a 25,000,000 bar in terms of the upside to EBITDA over our three year plan, and we look forward to being able to talk about that in due course. That's all external to to the picture we painted today. So, you know, really messaging this and continue to message this and continue to deliver the key milestones of this three year plan will hopefully encourage investors to to believe in in in the story.

[Ben Guest, MD - Energy Transition at Gresham House]

I do think that we also need the macro environment to to and so to deliver on their promises and to start really getting these disc the skip rates down and to start reducing the curtailment costs associated with gas and sorry, wind and and and replaced with infilled with gas where necessary and, you know, upwards of a billion. And Nissan themselves have said that that that could hit 8,000,000,000 by the end of the decade. We've got to avoid that. That's really avoidable with batteries. So, you know, just continue to message and pushing on the the macro and pushing on the delivery of capacity and upside to EBITDA, I think, is key. And, of course, but I don't think margin.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

And buybacks as well. Okay. Okay. Thanks, Ben.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Next question on Eldes. Well done on the Eldes cap and floor eligibility wins. Given the large number of total lithium ion projects, 20 gigawatt, do you think these subsidized projects will have an impact on pricing in the market or on skip rates, especially if batteries are considered to have more availability? Has the capacity already been factored into third party revenue curves?

[Ben Guest, MD - Energy Transition at Gresham House]

So a lot The the capacity would have been there are lots of part parts to that, but all logical sort of modeling questions. You know, what's discounted? What what's in the numbers? The the the there will be assumptions in the third party curves for shorter duration BESS, longer duration BESS, other storage in in the in the forecasts. Let's not forget that the overall picture here, the reason why we're aiming at 20 plus gigawatts is because we're heading towards a world where renewables make up on average seven upwards of 70%, potentially even 80% of total supply.

[Ben Guest, MD - Energy Transition at Gresham House]

Won't happen by 2030, but that's sort of the ambition. But some somewhere between 2030 and 2035, renewables will be generating the vast majority of the power in this country. The demand will be going up because we've got electric vehicles and electric heating taking off. Underlying demand is also holding steady. And that renewable generation, as an observed rule of thumb, generates anywhere between zero and twice their expected average.

[Ben Guest, MD - Energy Transition at Gresham House]

You need to and then, of course, there can be periods where that is versions of that remain true for not just hours, but potentially even days. Not at zero or twice, but somewhere in between for which you need longer duration. All of that means that we need a huge amount of storage. You know, we're at roughly five, six gigawatts to our duration in this country. We we need to get to about 30 gigawatts, probably at a ten to twelve hour duration.

[Ben Guest, MD - Energy Transition at Gresham House]

You know, it's it's a massive multiple from where we are today in terms of total energy if we're to substantially replace the alternatives, such as relying on gas and interconnectors as as sources of flexibility. So there's a there's a very, very huge need. There's lots and lots of offshore wind getting commissioned in the next few years. Lots of solar getting commissioned in next few years. We continue to see very successful auction rounds despite some wobbles in the last couple of years.

[Ben Guest, MD - Energy Transition at Gresham House]

Auction rounds for the the contracts for difference for new renewables projects. So there's a really, really big need. Of course, installed capacity of shorter and longer duration best absorb some of that need, and it'll we'll always see, you know, the the overall returns for renewable generators, which is sort of the wholesale price as adjusted by something called the capture rate. In other words, is all the renewable generation happening at the same time some of the time, and they don't they they fail to capture at other times because they're not generating. So you so they suffer from that while they benefit from more renewable batteries being installed and reducing that capture rate challenge and vice versa.

[Ben Guest, MD - Energy Transition at Gresham House]

The more more renewables that are installed, the more volatility that emerges in terms of supply and the more the business opportunity grows for for for batteries. So it's a it's there there'll be a cyclicality or a or a assessment of where we are on that balance between flexibility and renewable generation over the long term. But that fundamental opportunity is still there, and and it is absolutely reflected in in third party curves.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

If I can just add that, yes, the third party curves do include assumptions for LDAS as well as various other technologies being built out. At the moment, most of those curves are assuming even less efficient technologies take a lot of that volume, which increase further market distortion than what we anticipate being the case with batteries being viewed as for Elders. Another point is the volume likely to be cured in Elders is far below the ultimate requirement needed at this point.

[Ben Guest, MD - Energy Transition at Gresham House]

Exactly.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

The existing fleet of batteries can be derated to run at a lower power to cover the longer duration. So if the overall need starts to shift towards that longer duration and the rest of the fleet can adjust to it as well. On this skip break point, interestingly, as it stands at the moment, batteries are looked at as thirty minute assets. So the key changes coming from NISO are needed in order for an eight hour battery to be used as an eight hour battery. So adding that capacity just changes how the system needs to be run and it pushes that along sooner.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

So these improvements, that just impacts the rest of skip rates across the best industry and need and need to be there if eight hour batteries are to come online anyway. So you should see an improvement on skip rates.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Thanks, James. Perhaps, Ben or James, you could just clear this point out. Is this 70 k megawatt year merchant figure you state to get to the 10 p free cash flow net of optimizer costs?

[Ben Guest, MD - Energy Transition at Gresham House]

Yes. Yes. Deduction of everything. So you you deduct that at the very top. That's the top of the p and l, and then you deduct OpEx, and then you deduct PLC costs and debt service costs. Absolutely. Everything's deducted.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Thank you. Would you consider establishing an in house trading optimization platform? It's a really good question. We've evaluated that a lot.

[Ben Guest, MD - Energy Transition at Gresham House]

I think all else being equal, you'd or in isolation, yes, you'd consider it. But then you gotta factor in what are our priorities. You know, what's the benefit of setting up a trading desk versus really focusing on some of the things that we're actually doing in the in the three year plan, focusing on alternative revenues, which can be done separately to this. And there's another point I was gonna make, but I've it slipped my mind. But, essentially, the net oh, yes.

[Ben Guest, MD - Energy Transition at Gresham House]

I remember. Yeah. Of course, now we're using optimizers who are also lending their balance sheets to our business by providing floors. That's something we can't do for ourselves. So that that's an important factor as to whether we'd use in house optimization over the longer term.

[Ben Guest, MD - Energy Transition at Gresham House]

We'd have to weigh up the benefits of that against, you know, a copper bottom floor from a third party investment grade counterparty. So that's an important incremental consideration over the last twelve months. And I suspect as a result of that, we're not likely to do this anytime soon.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Okay. Next question. How are the costs for projects at Ready to Build moving, and how do you see the trend to acquire from developers moving?

[Ben Guest, MD - Energy Transition at Gresham House]

Interesting. So the the underlying cost of a project in terms of physical cost is has declined significantly. And we we've got a construction methodology that that we're excited about. You know, we've got very long established relationships with key suppliers from, of course, batteries and associated medium voltage equipment to to high voltage equipment suppliers and other pieces of kits and even civils contractors and so on. So we're benefiting from directly negotiating and or contracting with some of these counterparties, especially the battery suppliers directly and and benefiting from the scale of the projects that we're building now.

[Ben Guest, MD - Energy Transition at Gresham House]

So these are factors over and above the underlying trends in cost reduction. So we haven't disclosed how much it's likely to cost us to build our projects, but we're excited about it. So ironically, that makes the projects at a project rights level more valuable. But given where the industry is and has been, it hasn't actually resulted in higher project rights costs. In fact, project rights costs have declined over the last two years to probably their lowest level in about three or four, and and the the fund will benefit from that when it concludes the acquisition of project rights.

[Ben Guest, MD - Energy Transition at Gresham House]

And for completeness, that is from its Gresham DevCo pipeline partner, which sits within Gresham House.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Okay. Next question. Great. And this is a reconfirmation. In one of the earlier slides presented, portfolio combined balance sheet metrics show cash and debt as at December 24 twice.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Oh. Please can it be confirmed whether the second row in orange, $160,000,000 debt drawn and 48,200,000.0 cash is a typo and is reflected the Hawkers twenty five closing position.

[Ben Guest, MD - Energy Transition at Gresham House]

It's just is it the end of end of June closing position? Yeah. Yeah. Apologies for that. Thank you. No. Thank you.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Okay. There's one here on fees and, you know, outside of investment management fees, are there any fees taken SPV level, and are they disclosed, etcetera? Can you can you just touch on that?

[Ben Guest, MD - Energy Transition at Gresham House]

Sure. There's been a long standing arrangement, just one long standing arrangement, which is very small compared with the the main fee structure, which relates to bookkeeping. So we we initially outsourced the bookkeeping of our projects, and and that included the running of the audit process. We've insourced that at a at a substantial saving to to Grid several years ago. That comes to somewhere between I'm guessing a little $202,150,000 pounds in total for all the SPVs that we manage, which is in excess of 30.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

Yeah. And all asset management is covered under the AFIM fee. There's there's nothing on the plat.

[Ben Guest, MD - Energy Transition at Gresham House]

There's no there's no Okay. Operations fee.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

I have another question here via email, and I've been specifically asked not to water it down.

[Ben Guest, MD - Energy Transition at Gresham House]

So Okay.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

In the spirit of transparency, will not do that. Positive progress on the discount has been on the back of external Harmony success, not actions by the company. In this context, it seems fairly self serving and with respect, arrogant to ignore the discount issue and the prior commitment to dividends to switch now to a growth strategy. It always seems to be jammed tomorrow here. What ability or issues do the board have to retain the debt structure and sell these assets to private holders at closer to NAV for the benefit of shareholders?

[Ben Guest, MD - Energy Transition at Gresham House]

So the third questions and and punch it. Absolutely. Thank you. Yeah. And and and and and very welcome, to be honest.

[Ben Guest, MD - Energy Transition at Gresham House]

Yeah. The the where the share price trades is is not part of my day job. Of course, I'm very interested and and think about it all the time. If the discount has narrowed on the back of the Harmony transaction and only that reason, that's because the if that if that if that is true, that's because the investor base is not considering the actual protest that we have, and I can say confidently, delivered in the last twelve months. It's it's a very, very difficult macro environment we've had to navigate through.

[Ben Guest, MD - Energy Transition at Gresham House]

We never expected merchant revenue rates to hit the levels that they hit at the beginning of last year. That led to a situation where we had to cautiously pull the dividend. We had to reengage with our lenders to make sure that there would be no issues and con and to be able to conclude the construction of our existing pipeline. We needed the the safe harbor, if you like, to to be able to do that. We completed all of that.

[Ben Guest, MD - Energy Transition at Gresham House]

We have fought very hard about the right direction for this business in two ways. How do we derisk it? It's fortuitous that at the same time that these events were taking place, the industry was also maturing and the ability to secure contracted revenues to cover bottom the the worst case for this business became possible. And that further benefited the refinancing process by reducing the cost of capital, which allowed us to upsize our debt. And that then has led to our ability to further invest in the business and make over the long term for a more valuable business.

[Ben Guest, MD - Energy Transition at Gresham House]

Then we also appreciate believing that the challenges that caused our troubles at the beginning of last year still required a substantial amount of investment in in the industry and that this business would benefit from continuing to scale if it could. So seeing the pipeline that we had, the falling cost of construction, the falling cost of capital, and the resulting IRRs, we saw the opportunity to grow this business as a result of the reevaluation of circumstances. It happened to overlap with a very difficult environment, but they were actually separate considerations. It is just a fact that this business has is now seeing probably the most profitable investment opportunities that it's ever seen just after the most difficult period, which creates for an interesting story from an observer from an external perspective outside in. But this is I I strongly believe, and I'm grateful for the board to have backed us here.

[Ben Guest, MD - Energy Transition at Gresham House]

And and I appreciate that the shareholders are required are requiring to be patient, especially from a dividend paying perspective. But we expect to end up with a business that on a free cash flow basis is generating double digit free cash flow on an underlying cash flow basis substantially above that. If the recovery in revenues, are genuinely outside of our control, although we are influencing as much as we can lead up, we will be substantially above the numbers we've just indicated. And then if we pull the final levers to our three year plan, there's further jam, if I can use the expression used. All of that is far in excess of the current NAV.

[Ben Guest, MD - Energy Transition at Gresham House]

And while it does require patience, if we looked at this on a forward NAV basis, if and we appreciate we do need to communicate this more. But if we do also look at this very simply as an operating type business with cash flow, with some of the other additional drivers and apply whatever multiple the investors happy to apply to that, whether it's to EBITDA or free cash flow, you you I think you see that over two or three year time frame, even if the discount is not closing, and that's something to be discussed increasingly aggressively because there's a patient's challenge here. But if we if we look at the outlook in two or three years, we think that your manager of this business is delivering something that's very, very valuable. And we do hope that our investors can start to see this as we deliver the milestones, as we communicate this with the support, importantly, with the support of our analysts and and sell side community. So, you know, we've we've we've really, you know, looked at every scenario.

[Ben Guest, MD - Energy Transition at Gresham House]

Of course, the board will always have the opportunity to consider other options to to go for the quick buck, if that's the right expression. And and I I am very sensitive to to the the challenge in the in the stock market, not just in grid, but broadly in the investment trust space with the uncertainties associated with with interest rates and the like. But we do think that we're building a valuable company here, weathering a lot of storms along the way, taking advantage of the developments that benefit us, and appreciating the scale is really important. So I've not held back on the answer either, Douglas.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

No. And I I think very well answered, Ben. And the one point I would add is that history tells you that if the public markets don't give you or reward the value being created then the private markets will. And I think all we can continue to do is focus on what we can control. We are highly sensitive to shareholders' views and we've spent a huge amount of time consulting with shareholders over recent days, weeks and months around these sorts of issues and capital allocation issues, and we'll continue to do that.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

I'm conscious we've gone past the hour. There is one other question I'd like to ask you though because I think this is important to address. Okay. Please can you elaborate on the relationship between Gresham House DevCo and the part of Gresham House completing early development of new projects, I e, the dev development business within

[Ben Guest, MD - Energy Transition at Gresham House]

Gresham House.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Are we are we, as in Grid, buying projects from other parts of Gresham House, and are you satisfied with how these clear conflicts are handled? So I think here, talk about the history, talk about the process Sure. Sure. And and and how they're bought into the into the fund.

[Ben Guest, MD - Energy Transition at Gresham House]

Yeah. Absolutely. I mean, it's it's it's been advertised, if you will, since since the IPO that there is a development activity at Gresham House. It it it forms an extended part of of the the my team. It has always sought to create projects that are optimal for the fund circumstances and and and sort of status of the industry at that time.

[Ben Guest, MD - Energy Transition at Gresham House]

It creates a lot of visibility for Grid, I think, in terms of knowing what's coming up the pipe, in terms of being able to design projects from a very early stage, from a all all the different features in terms of revenue capture to safety to time to build and so on. So all of these are important considerations for projects, and it's very, very helpful when you have visibility of the pipeline years in advance because that's how many years in advance that we're we're we're how far in advance we're looking at project. So we're so the benefits, I think, are there. Of course, then there's a significant financial benefit ignoring the outcome first and speaking to process. Essentially, this is absolutely a a related party transaction.

[Ben Guest, MD - Energy Transition at Gresham House]

So Gresham House DevCo is negotiating really with the board here as advised by third party advisers from the company's law firm to valuers, and then and that's being done very extensively. And then there's a very significant negotiation between board and DevCo to to seek the the best result. Just to give a little bit of color, the the first round of prog substantial round of projects acquired that have been completed now were acquired at a significant discount to the prevailing price per megawatt in the market. The consideration is paid only once the projects like, in this in this in the past, once the projects were fully operational. So any costs incurred by Gresham House DevCo were were worn until the project were fully operational as opposed to typically a 100% of the consideration being paid well before the start of construction in a traditional case.

[Ben Guest, MD - Energy Transition at Gresham House]

All of this creates a massive time value of money benefit. So there's a absolute benefit and a time value of money benefit, and we're confident that we'll have a similar benefit or a a benefits, potential benefit to to grid from from access accessing these pipelines over which it has a right of first refusal, by the way. So it could reject them. It could absolutely go out to the market, but I I I I I doubt it would come close to to to achieving what it can achieve with FreshMass DevCo. But I appreciate the question and and the opportunity to to speak to that.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

And just to add, there's a question earlier about the headroom between the valuation and the cost of building the projects and is the cost full. What happens with the headroom with these arrangements for these projects? Grid definitely benefits from that increase in headroom between the two. And if you see California is a good example of when the inflation reduction act came in, projects became far far more valuable, developers tended to increase their premiums. Grid avoids all of that with this arrangement.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

So in that increasing headroom scenario, Grid definitely benefits from that.

[Ben Guest, MD - Energy Transition at Gresham House]

That's it. Yeah. I'll I'll add one one final point because this will will also help give a bit of color on on direction of travel of NAV. You know, project rights typically sell somewhere in the tens of thousands of pounds per megawatt lower than it was in the context of the current market and the the the the rates achieved for dev by DevCo with with with Grit to make sure that it's it's a best a stronger deal as possible. The the upside to cost, which includes these development rights, is in is in the hundreds of thousands.

[Ben Guest, MD - Energy Transition at Gresham House]

So so and and as I've mentioned, the IRRs I haven't given numbers, but I've mentioned the IRRs are at a significant premium and the highest premium that we've seen during the life of this fund to to the weighted average discount rate. And so the the benefits of building these projects out is is key and and competes well with the opportunity for buybacks to to cover that sort of capital allocation challenge, especially given the long term benefit of achieving scale as well is being key.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Ben, thank you very much. And, James, likewise. I just thought I would mention, people may have seen in the news recently that Gresham House made an acquisition of Suzy Partners headquarters in Switzerland. This is a specialist dedicated energy transition business with circa 2,000,000,000 Swiss francs of assets under management. It's it's a a a a dedicated business and one that we are looking to scale in terms of bringing in additional expertise and resource.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

Also, it gets us into new geographies. It gets us into new client channels. It broadens the client offering of Gresham House. Clearly, the energy transition is a key pillar of growth for this company and one that we will continue to invest in. In terms of its impact on Grid and the management team of this company, there's none at all.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

But clearly we'll look at how we can bring different skills, experiences and synergies into the table. So we're excited to get that over the line. Ben and James unless there's anything else from you this morning I'm conscious we've gone on for an hour and ten minutes. An important juncture in the evolution of the storage fund. Thank you for answering all the questions.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

As always, there's been no sugarcoating or watering down of the questions. And clearly, anyone has any further comments or or meetings they'd like to follow-up on, then we're here and and ready to answer them answer them. Once again, thank you for your support. Thank you for your patience. We feel the company is in a good position to push on from here.

[Rupert Robinson, Managing Director at Gresham House Energy Storage Fund]

So without further ado, have a good rest of your day, and and look forward to seeing you all soon. Thank you.

[Ben Guest, MD - Energy Transition at Gresham House]

Thanks, everyone.

[James Bustin, Associate Director - Energy Transition at Gresham House Energy Storage Fund]

Thank you.

Participants

Executives

• James Bustin, Associate Director - Energy Transition
• Rupert Robinson, Managing Director

Analysts

• Ben Guest, MD - Energy Transition at Gresham House