GRID said it would not be paying out its final dividend for 2023, after a challenging year for batteries’ revenue meant it was unable to cover the cost.
The board is set to recalibrate the trust’s dividend target for 2024 and the dividend policy on an ongoing basis. A further announcement is expected before the publication of its annual results in April.
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As an alternative, the board is commencing a share buyback programme, which it will review on an ongoing basis “in the context of its capital allocation decisions, as well as the discount to net asset value at which the shares are trading at any given time”.
It is working with Jefferies International Limited (Jefferies) as buy-back agent in relation to the programme.
The board said it would operate on a discretionary basis “with certain pre-set parameters”.
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The maximum price payable per share (exclusive of expenses) is capped at 105% of the average market value of the company’s shares for the five business days immediately preceding the day on which such share is contracted to be purchased.
Alternatively, the price will be capped at the higher of the price of the last independent trade and the highest current independent bid on the London Stock Exchange.
The company is only permitted to purchase up to 14.99% of shares issues, in accordance with terms laid out at its most recent annual general meeting back in May 2023.
According to data from the Association of Investment Companies, GRID is currently trading at a 64.9% discount.
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