REG - eEnergy Group PLC - £40m Project Funding Facility and Trading Update

EenergyAnnouncement

01/03/2024 07:00

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RNS Number : 0685F  eEnergy Group PLC  01 March 2024

1 March 2024

 

eEnergy Group plc

("eEnergy", "the Company" or "the Group")

 

£40m Project Funding Facility with NatWest and Trading Update

 

eEnergy Group plc (AIM: EAAS), is pleased to announce it has entered into an
agreement with National Westminster Bank Plc ("NatWest") to provide up to £40
million of project funding (the "Facility") to finance energy efficiency and
onsite generation technologies for the Group's public sector customers.

 

The Facility is a new financing solution created by both parties. The Facility
has been designed exclusively for the funding of public sector energy
transition projects across the full range of eEnergy products. The Facility
will be deployed through a newly-formed special purpose vehicle ("SPV") owned
by eEnergy, with eEnergy becoming the operator and retaining ownership and
interest in the economics of each completed project.

 

The Facility is available for a period of 12 years with investment planned
over the first 24 months. The Facility is split into two equal tranches to
match the expected profile of drawdowns and optimise fees. The second tranche
will become available to draw-down once 75% of the first tranche has been
deployed, subject to customary final approvals.

 

The Board believes that this new Facility gives eEnergy a unique, compliant
off balance sheet solution for public sector customers and will strengthen
eEnergy's competitive position in tendering for large multi-site contracts.
The Facility will lower eEnergy's cost of capital, delivering an attractive
financial return on the retained project interests.

 

Longspur Capital acted as eEnergy's sole financial advisor in relation to the
Facility.

 

 

Trading Update

 

Trading in the 6-month period ended 31 December 2023 was impacted by the
Group's balance sheet constraints which have now been alleviated as a result
of the sale of the Energy Management division. In addition, management have
chosen to re-profile solar project revenue and adjust the FY23 results for the
Energy Management division in relation to its subsequent disposal. As a
result, the Board expects, subject to completion of the audit process, to
report Group Revenues for 18-months ended 31 December 2023 of £46 million
with Adjusted EBITDA of £5.1 million - £5.3 million.

 

The completion of the disposal of the Energy Management division after the
period-end has enabled the Group to repay all borrowings, substantially
strengthen its balance sheet and refocus resources on delivering on the growth
opportunities in the Energy Services division.

 

The Company expects the annual audited accounts for the 18 months to 31
December 2023 to be released in the last week of April 2024.

 

Harvey Sinclair, eEnergy CEO, comments: "We are extremely pleased to announce
this £40m Facility with NatWest, marking the beginning of a new collaboration
between our two organisations. This Facility is the result of significant
investment in honing our proposition to public sector customers and gives
eEnergy a clear competitive advantage in the market. It also allows us to
offer our leading net zero energy efficiency services to larger multi-site
projects and contracts. This Facility has been structured to allow us to scale
rapidly in a large addressable UK market.

 

"What is particularly exciting about this new Facility is its innovative
structure which will lower our cost of capital and also provide us with
longer-term economic upside on each project.

 

"We look forward to this new relationship with NatWest which we hope is a
start of a much longer-term relationship given the opportunities available."

 

Jacob Lloyd, Head of Specialist Asset Finance at NatWest, comments: "NatWest
is delighted to be able to support eEnergy by acting as Structuring Bank &
Hedge Counterparty for this innovative financing. We look forward to working
with the eEnergy team going forward as they execute their contract pipeline
and assist the public sector with deploying energy efficiency and
decarbonisation assets."

 

 

Investor Presentation

 

Harvey Sinclair, CEO, and Crispin Goldsmith, CFO, will be hosting an online
presentation for investors on the 7th March 2024, to provide an investor
update on the Group following the sale of the Energy Management division.
Presentations will be held via the Investor Meet Company platform at 11:00,
and the Equity Development platform at 15:00. Both presentations are open to
all existing and potential shareholders.

 

Investors can sign up to Investor Meet Company for free and add to meet
eEnergy Group plc via:

https://www.investormeetcompany.com/eenergy-group-plc/register-investor
(https://www.investormeetcompany.com/eenergy-group-plc/register-investor)

 

Investors can register for the Equity Development presentation for free via:
registration link
(https://www.equitydevelopment.co.uk/news-and-events/eenergy-investor-presentation-7march2024)

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as it forms part of the law of England and Wales by
virtue of the European Union (Withdrawal) Act 2018.

 

For further information, please visit www.eenergy.com (http://www.eenergy.com)
or contact:

 

 eEnergy Group plc                              Tel: +44 207 078 9564
 Harvey Sinclair, Chief Executive Officer       info@eenergy.com (mailto:info@eenergy.com)

 Crispin Goldsmith, Chief Financial Officer

 Tavistock                                      Tel: +44 207 920 3150
 Jos Simson, Simon Hudson, Katie Hopkins        eEnergy@tavistock.co.uk (mailto:eEnergy@tavistock.co.uk)

 Strand Hanson Limited (Nominated Adviser)      Tel: +44 207 409 3494

 Richard Johnson, James Harris

 Canaccord Genuity Limited (Joint Broker)       Tel: +44 207 523 8000
 Max Hartley, Harry Pardoe (Corporate Broking)

 Turner Pope Investments (Joint Broker)         Tel: +44 203 657 0050
 Andy Thacker, James Pope                       info@turnerpope.com (mailto:info@turnerpope.com)

 

 

About eEnergy Group plc

eEnergy (AIM: EAAS) is revolutionising the path to net zero as a leading
digital energy services provider for B2B and public sector organisations. We
eliminate the barriers to clean energy generation and energy waste reduction,
offering solutions that don't require upfront capital investment. Our vison is
clear: make net zero possible and profitable for every organisation. eEnergy
is market leader within the education sector and has been awarded the Green
Economy Mark by London Stock Exchange.

 

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