REG - eEnergy Group PLC - Completion of Sale and Board Changes

EenergyAnnouncement

09/02/2024 13:30

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RNS Number : 6949C  eEnergy Group PLC  09 February 2024

9 February 2024

 

eEnergy Group plc

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

 

Completion of Sale of Energy Management Division

Board Changes

 

Further to the announcements on 22 January 2024 and 7 February 2024, eEnergy
is pleased to announce it has completed the disposal of the Energy Management
Division to Flogas Britain Limited for an initial consideration of £29.3
million. Additional contingent consideration, expected to be between £8
million and £10 million, will also be due to the Company, based on the
trading performance of the Energy Management Division for the period to 30
September 2025.

 

The Company has now received the Initial Cash Consideration of £25 million
and the remaining £4.3 million of initial consideration (reflecting the
financial position of the Energy Management Division at completion) has been
used to repay amounts due from the Group to the Energy Management Division. As
previously announced, the net proceeds from the Disposal will be used to
reinvest into the Company's high growth energy services division and pay down
all the Group's external debt facilities of £8.1 million, comprising the
£5.0 million HSBC Innovation Finance (previously known as Silicon Valley
Bank) revolving credit facility ("RCF") and the £2.525 million secured
discounted capital bonds ("Bonds") provided by FFIH Limited (£1 million)),
Hawk Investment Holdings Limited (£1 million) and directors and previous
directors (£0.525 million)  together, in the case of the RCF, with interest
accrued, and, in the case of the Bonds, with an early settlement discount, as
well as for general working capital purposes.

 

Capitalised terms in this announcement shall have the same meaning as in the
Company's announcement of the Disposal on 22 January 2024, unless the context
provides otherwise.

 

Board Changes

 

The Company is pleased to announce a board restructuring to reflect the
simplified business and the Company's focus on its core energy services
division going forward.

 

Following completion of the Disposal and with repayment of the Bonds to FFIH
Limited and Hawk Investment Holdings Limited, John Foley, Non-Executive Chair,
who is a shareholder and director of FFIH is stepping down from the board, and
Andrew Lawley, currently Non-Executive Director, has been appointed
Non-Executive Chair, each with immediate effect.

 

In addition, David Nicholl, Non-Executive Director, is stepping down from the
board, effective immediately. David will, however, remains as an adviser to
the board given his experience and technology sector knowledge.

 

The Company is also pleased to announce that John Hornby is joining the
eEnergy board as Non-Executive Director with immediate effect. John is Chief
Executive Officer of Luceco plc which, following its strategic investment into
the Company in November 2023, holds an interest in 9.96% of eEnergy's issued
shares. John originally joined Luceco in 1997 and led the management buyout of
the company in 2000 as well as the secondary buyout with EPIC Investment
Partners LLP (formerly EPIC Private Equity LLP) in 2005, in his capacity as
CEO at that time. John began his career with Knox D'Arcy Management
Consultants following his graduation from the University of Oxford where he
obtained a degree in Economics.

 

Harvey Sinclair, eEnergy CEO, comments: "I am very pleased to announce the
completion of the Disposal which unlocks value for shareholders and
significantly strengthens our balance sheet so that we can focus our resources
on our fast-growing energy services business. Andrew Lawley will continue to
provide his advice and expertise to the board, now as Chair. On behalf of the
Directors, management and staff, I would like to thank John Foley and David
Nicholl for their valuable contributions as Directors of eEnergy.

 

"I would also like to thank our colleagues in the Energy Management Division
and wish them every success with their new parent."

 

 

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

 

 eEnergy Group plc                              Tel: +44 20 7078 9564
 Harvey Sinclair, Chief Executive Officer       info@eenergy.com (mailto:info@eenergy.com)

 Crispin Goldsmith, Chief Financial Officer

 Strand Hanson Limited (Nominated Adviser)      Tel: +44 20 7409 3494
 Richard Johnson, James Harris

 Canaccord Genuity Limited (Joint Broker)       Tel: +44 20 7523 8000
 Max Hartley, Harry Pardoe (Corporate Broking)

 Turner Pope Investments (Joint Broker)         Tel: +44 20 3657 0050
 Andy Thacker, James Pope                       info@turnerpope.com (mailto:info@turnerpope.com)

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

 

 

AIM Rules for Companies, Schedule 2(g) Disclosures

 

The following additional information is provided in accordance with paragraph
(g) of Schedule Two of the AIM Rules for Companies.

 

Mr Jonathan (John) Charles Hornby (aged 54) is currently or has been a
Director of the following companies within the past five years:

 

 Current Directorships                Past Directorships (in the last five years)
 BG Electrical Limited                Luceco Lighting Limited
 Luceco UK Limited                    Masterplug Limited
 Luceco plc                           Masterplug Holdings Limited
 Luceco Holdings Limited              B.G. Electrical Holdings Limited
 Kingfisher Lighting Limited          Syncev Limited
 Deanmor Investments                  Syncev Technologies Limited
 DW Windsor Group Limited             Fusion Lighting Limited
 D.W. Windsor Limited                 Street Lighting Limited
 Pulsar Lighting Solutions Limited
 Urban Control Limited
 EV Charge Points UK T/A EVCP Ltd
 Luceco Electrical (Jiaxing) Limited
 Luceco SAS
 Luceco Southern Europe SL
 Luceco Inc

 

Mr Hornby currently holds no direct interests in the Company's ordinary
Shares.

 

There is no further information to be disclosed pursuant to Schedule 2(g) of
the AIM Rules for Companies.

 

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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