Update to Strategy and Capital Allocation

LEI: 13800GPUNVGG81G4O21

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION UNDER THE UK MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN

17 March 2026

Gore Street Energy Storage Fund plc

(the 'Company' or 'GSF')

Update to Strategy and Capital Allocation

 Clear plan to deliver enhanced shareholder returns

The Board of GSF announces an updated strategy designed to deliver enhanced Shareholder value. Following a detailed review, the refreshed Board believes that energy storage represents an attractive asset class, but recognises that an evolution in strategy will better position the Company.

Key Components of the Updated Strategy

1.    Enhanced Shareholder Distributions

The Company commits to distributions of 7 pence per share per annum, paid in four equal quarterly instalments of 1.75 pence per share. This will be funded through a combination of operating cash flows and selective asset sales. The first quarterly dividend of 1.75 pence per share in respect of the December-end quarter will be declared with the NAV announcement later this week.

2.    Disposals

The Company will divest certain operational and pre-construction assets, including the previously announced German asset, Cremzow, (which has attracted strong initial interest), and select pre-construction assets. Capital realised from asset sales, alongside operational cash flows, will fund distributions to Shareholders. A portion of disposal proceeds will also enable capital recycling into selective accretive investments. The strategy is expected to generate proceeds of £25 million in FY26/27, £75 million in FY27/28, and a further £75 million in FY28/29.

Certain assets will be sold in a disciplined and orderly manner, while others will be augmented or constructed if shown to maximise value.

3.    Capital Recycling

The Company will pursue augmentations to increase the duration of the most immediately viable assets to enhance their value. Duration increases in markets such as GB and Ireland have been demonstrated to increase revenue potential and value. Post augmentation, assets will be assessed for sale.

Selective partnerships may be formed through JVs to develop the Company's pre-construction pipeline or fund augmentation capex. This route minimises capital expenditure by the Company, facilitating ongoing distributions to Shareholders whilst making selective reinvestments that are deemed most strategically value accretive. The strategy will target projects with an expected IRR of c.15% and incremental energy capacity of c.100 MWh in FY26/27, c.100 MWh in FY27/28 and a further 150 MWh in FY28/29.

4.    Strengthened Stakeholder Alignment

During 2025/26, the Board implemented a series of cost reduction measures, including revising the investment management fee to a 50/50 split between NAV and market capitalisation, the removal of the performance fee and the Investment Manager exit fee. In addition, the Board has secured the removal of the exit fee of 2% of NAV from the Commercial Management Agreement ('CMA'). The Board has determined that the incumbent manager, Gore Street Investment Management, is currently best placed to implement the new strategy, with significant asset-specific knowledge and experience. The performance and cost of the services provided under the CMA are being benchmarked. The Board will monitor progress against defined KPIs for augmentations and disposals, and is ready to take further action should it be deemed necessary.

The Company anticipates that this updated strategy will materially enhance Shareholder returns, whilst adding incremental value to certain assets through augmentation. It recognises that the change in the macro environment necessitates this evolution to its buy-and-hold strategy.

In addition to the planned annual distribution to Shareholders, the Board may make use of tactical share buybacks, where resources allow, the prevailing share price justifies, and buybacks are considered more accretive to Shareholders than reinvestment.

KPIs

The Board will monitor the progress of the new strategy against the following KPIs:

·  Targeted Disposals: c.£25m in FY26/27, c.£75m in FY27/28, c.£75m in FY28/29.

·  Augmentation and Buildout with an expected IRR of 15%: c.100 MWh in FY26/27, c.100 MWh in FY27/28, and c.150 MWh in FY28/29.

There is currently a continuation vote scheduled for 2028. This can be brought forward at any stage by the Board and will be if any of these KPIs, including the payment of any of the quarterly 1.75p distribution, is not met.

Shareholder Webinar

There will be a live Investor Presentation on the new strategy via Investor Meet Company today Tuesday 17 March 2026, at 13:00 GMT.

The presentation is open to all existing and potential Shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 17 March 2026, 12:00 GMT, or at any time during the live presentation.

Investors can sign up to Investor Meet Company without cost and add to meet GORE STREET ENERGY STORAGE FUND PLC via:https://www.investormeetcompany.com/gore-street-energy-storage-fund-plc/register-investor 

Investors who already follow GORE STREET ENERGY STORAGE FUND PLC on the Investor Meet Company platform will automatically be invited.

Angus Gordon Lennox, Chair of the Company, said: "The Board is confident that this updated strategy represents the right evolution for the Company to drive increased value for Shareholders. It provides clear targets, is aligned with current market conditions, and positions the portfolio for value-accretive reinvestment and disposals. With persistent sector-wide discounts, an evolution in strategy is essential to restore value and provide attractive returns.

Following an initial review of the Company's key contracts and managers' performance and capabilities, the Board has determined that the Investment Manager is currently best positioned to deliver the outlined strategy and support the objective of maximising value for Shareholders from the portfolio. We look forward to providing regular updates as we execute this strategy in partnership with the Investment Manager."

Alex O'Cinneide, CEO of the Investment Manager, commented: "We welcome the support of the Board for this renewed approach, which enables the Investment Manager to actively unlock value from the portfolio and react to the changing macro environment. With clear objectives and active management, we believe this strategy positions the Company well for long-term success. Following a period of disciplined execution, and proof of delivery, should public markets continue to undervalue these assets, we are fully aligned with the Board in pursuing alternative solutions that maximise value for the Company's Shareholders."

- Ends -

For further information:  

Board of Directors                                                                                           Tel: +44 (0) 20 4583 6354

Angus Gordon Lennox (Chair)

Email: [email protected]

Company Secretary, Gore Street Services Limited                                   Tel: +44 (0) 20 4583 6354

Email: [email protected]

Gore Street Capital Limited

Alex O'Cinneide / Ben Paulden                                                                      Tel: +44 (0) 20 4551 1382

Email: [email protected]

Shore Capital (Joint Corporate Broker) 

Anita Ghanekar / Sophie Collins (Corporate Advisory)                               Tel: +44 (0) 20 7408 4090

Fiona Conroy (Corporate Broking)

J.P. Morgan Cazenove (Joint Corporate Broker)

William Simmonds  (Corporate Finance)                                                      Tel: +44 (0) 20 3493 8000

Burson Buchanan (Media Enquiries)

Henry Wilson / Henry Harrison-Topham / Nick Croysdill                           Tel: +44 (0) 20 7466 5000

Email: [email protected]

https://www.gsenergystoragefund.com

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, as it forms part of UK domestic law ('UK MAR'). Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of UK MAR. The person responsible for arranging the release of this announcement on behalf of the Company is Benjamin Hanley of Gore Street Services Limited, Company Secretary.