Gresham House Energy Storage Fund PLC reported a net asset value (NAV) of 113.34 pence per share as of December 31. That figure represents a decline of 2.36 pence per share over the quarter, although it is up 3.99 pence per share on a year-over-year basis.
On an operating earnings basis, the company's portfolio delivered EBITDA of £38.8 million for FY25, an increase of 33.4% compared with the prior year. The fund's fourth-quarter EBITDA was approximately £9.5 million, representing an 11% gain from the third quarter.
The portfolio margin strengthened to 64.2% in FY25, improving from 62.5% in FY24. These margin gains accompanied the rise in EBITDA for the period.
Despite the positive earnings trajectory, asset revenue across the broader Great Britain battery energy storage system (GB BESS) market weakened in the quarter. The report notes that asset revenue in that market fell to about £60,000 per megawatt per year in the quarter, down from approximately £70,000 per megawatt per year on a full-year basis. The company highlighted December as a particularly weak month, despite winter historically being a seasonally stronger period for some revenues.
Market valuation also left room for investors: the company is trading at roughly a 36% discount to its reported NAV.
The NAV movement for the reporting period reflected several offsetting items. Revaluations of construction and augmentation projects increased the NAV by 13.63 pence per share, while portfolio cash generation added 5.35 pence per share. Those positive contributions were partly counterbalanced by lower revenue assumptions, which reduced the NAV by 15.61 pence per share.
Takeaway - Gresham House Energy Storage Fund delivered notable EBITDA growth and improved margins in FY25, even as near-term revenue assumptions for the GB BESS market weakened and its reported NAV fell slightly over the quarter.