REG - eEnergy Group PLC - Pre-Close Trading Update and Full Year Outlook

EenergyAnnouncement

27/01/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220127:nRSa7762Za&default-theme=true

RNS Number : 7762Z  eEnergy Group PLC  27 January 2022

27 January 2022

eEnergy Group plc

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

 

Pre-Close Trading Update and Full Year Outlook

 

eEnergy (AIM: EAAS), a leading Energy Efficiency-as-a-Service and Energy
Management-as-a-Service business in the UK and Ireland, is pleased to provide
an update on trading for the six months ended 31 December 2021.

 

 

Group Trading and Highlights

·    H1 Revenues up 44% to £9.7 million

·    EBITDA before exceptional items up 120% to £0.8 million

·    Profit before exceptional items of £0.4 million (H1 2021: £0.1
million)

·    £18.3 million of contracted forward revenues over four years, up
250% from 31 December 2020, with £5.3 million converting into revenue during
H2 2022

·    The Board expects to trade broadly in-line with market expectations
for the full year

 

 

Energy management

 

Energy management revenues were £4.9 million in the Period compared to £0.2
million for the six months ended 31 December 2020.  The revenues in the
Period reflect the first full interim results from Beond and the results of
UtilityTeam since its acquisition in September.  Beond, which was acquired in
December 2020, has significantly outperformed the Board's expectations for its
first full year within the Group.  The integration of UtilityTeam is
progressing well (to be completed by June 2022) and the business is performing
in line with management expectations. Since the acquisition, the Group has
secured or renewed a number of major energy management contracts, including
one worth £2.4 million over 4 years.  The volatile energy prices through
2021 have played to the strengths of the Company's technology and consulting
led energy management business and contract renewals have remained in-line
with historical rates.

 

Energy efficiency

 

Energy efficiency revenues were £4.8 million in the Period, which is
equivalent to the second half of the year ended 30 June 2021 and £1.8 million
less than the six months ended 31 December 2020 (a period which benefited from
a catch up effect in installations after the first period of lockdown). Since
the beginning of the COVID pandemic the Group has seen volatility in the
length of its sales cycle as well as a concentration of installations in the
school holidays.  The impact of this has become less acute in the latter half
of 2021 and recent success in marketing at events and conferences means the
Group has already met its lead generation target for the full year and has its
strongest ever pipeline of new business opportunities.  Conversion rates
remain consistent with historical norms and, combined with installation
network capacity and greater flexibility around installation windows from
schools, means the Board expects a strong level of energy efficiency
installations and revenue growth in the second half.

 

Full Year Outlook

 

The Group has a growing pipeline of opportunities for the remainder of the
financial year and has contracted forward revenues (based on expected
consumption), as at 31 December 2021 ("Forward Order Book"), of £18.3 million
over 5 years (up 250% from 31 December 2020). Of the Forward Order Book, £5.3
million is expected to be recognised as revenue in H2 FY22 and £6.5 million
recognised in FY23.  eEnergy continues to make significant strategic progress
towards its stated goal to provide a simple, end to end solution to
organisations and companies wanting an economic and effective path to Net Zero
emissions. As such, the Board expects to trade broadly in-line with market
expectations for the current financial year.

 

eEnergy's growing portfolio of energy reduction solutions, complemented by the
four acquisitions since Admission, has helped diversify the Group, improve its
quality of earnings and generate scale. eEnergy now has the ability to offer
customers a broad range of products and services and expertise in energy
management, energy efficiency and intelligent measurement and analysis,
cultivating a large and relevant customer base to which the Group is seeking
to cross-sell by delivering its end-to-end offering.

 

The Company is now able to provide its clients with onsite solar generation
and intend to add electric vehicle charging solutions by the end of FY22.
The structural and regulatory growth drivers that the Group is exposed to
remain highly attractive and will support Management's growth ambitions over
the medium term.

 

Harvey Sinclair, CEO, eEnergy said: "The first half has been another busy
period which has seen the Group win new contracts as well as successfully
integrate the acquisition of leading energy management group, UtilityTeam. We
continue to expand our digital energy services to meet the growing needs of
businesses and organisations on their paths to Net Zero.

 

"We are very encouraged by the momentum in our forward order book and the
macro outlook for our growing position in the market. We have over £18
million of contracted forward revenue for the coming years, a new record which
reflects our successful strategy to broaden our services and deepen our
relationships with both new and existing clients."

 

Contacts:

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

 Ric Williams, Chief Financial Officer                          www.eenergyplc.com (http://www.eenergyplc.com/)

 Crispin Goldsmith, Chief Strategy & Commercial Officer

 Singer Capital Markets                                         Tel: +44 20 7496 3000

 (Nominated Adviser and Joint Broker)
 Justin McKeegan, Mark Taylor, Asha Chotai (Corporate Finance)

 Tom Salvesen (Corporate Broking)

 Turner Pope Investments                                        Tel: +44 20 3657 0050

 (Joint Broker)
 Andy Thacker, James Pope                                       info@turnerpope.com

 Tavistock                                                      Tel: +44 207 920 3150
 Jos Simson, Heather Armstrong, Katie Hopkins                   eEnergy@tavistock.co.uk

 

About eEnergy Group plc

eEnergy Group plc is an integrated energy services company, enabling
organisations to transition to 'Net Zero' through "Energy-as-a-Service".  The
Group offers:

·    Energy Management as-a-Service; providing energy measurement,
monitoring and analytics on top of core "Zero Carbon" procurement services;

·    Energy Efficiency as-a-Service; zero upfront capital, energy
reduction solutions through measured savings contracts including its LED
businesses; and

·    Enhanced customer value proposition through data gathered and
analysed with its proprietary MY ZeERO platform

 

eEnergy was admitted to AIM in January 2020 with a strategy to use its market
leading eLight "Light as-a-Service" business as the foundation to expand
eEnergy as a broader energy services company via a 'buy and build' strategy.
The Group has completed four transactions since admission, building a Top 5
energy management business in the UK and acquiring proprietary smart metering
and analytics capability through the investment in MY ZeERO. The Board's
strategy continues to be to build a broader energy services company through
acquisition with a particular focus on energy efficiency related capabilities
and technologies. The market in the EU for energy efficiency services was
approximately €25 billion in 2017 and is expected to double by 2025.

 

eEnergy has been awarded The Green Economy Mark by the London Stock Exchange,
which recognises a company's work on sustainability.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSELEEMEESEEF