REG - eEnergy Group PLC - Q1 Trading Update, Revenue Recognition & Outlook

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RNS Number : 6666A  eEnergy Group PLC  16 April 2026

16 April 2026

 

eEnergy Group plc

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

 

Q1 26 positive trading update

Revenue recognition update on FY25

FY26 outlook: A step-change in scale and earnings

 

eEnergy (AIM: EAAS), an Energy-as-a-Service provider delivering funded energy
infrastructure upgrades across multi-site portfolios, today announces a
trading update on its Q1 2026 activities (unaudited) and an update to its
revenue recognition policy in advance of completion of the audited results for
the year ended 31 December 2025.

 

Trading Update

 

The Group has made a strong start to a year, delivering, for Q1-26:

 

·      Revenue of £11.0m

·      Adjusted EBITDA* of £0.7m

·      Forward contracted order book of £10.7m (as at 31 March 2026)

·      MACE (GB Energy) installations for across 73 schools are largely
completed and on track for completion by 31 May 2026

·      The Group expects to report record H1-26 revenues of circa
£24.0m (H1-25: £10.1m), in line with management expectations underpinned by
circa £21m of revenue already delivered or contracted to be delivered

 

Revenue Recognition Update

 

Following engagement with its new auditor, Cooper Parry, the Group has adopted
a more conservative approach to revenue recognition. As a consequence, revenue
recognised at contract signing has been reduced from 30% to 5% for Solar and
Batteries and from 30% to 0% for LED and EV, resulting in a reduction of
approximately £4.0m in FY25 reported revenue and a £4.0m increase in FY26
revenue. Importantly, there is no impact on cash generation and no change to
underlying profitability of the individual contracts.

 

The revised policy improves alignment between revenue, Adjusted EBITDA and
cash generation, and provides a more robust foundation as the business scales
and is being applied to financial periods from FY24 (which will be restated
accordingly).

 

Results Overview (FY25 and FY24, unaudited)

 

Applying the updated revenue recognition policy, the Group expects to deliver
FY25 revenue of £19.0m (FY24 restated: £22.4m) and an Adjusted EBITDA* of
£2.2m (FY24 restated: £0.7m loss), representing a £2.9m improvement
year-on-year reflecting the progress the business has made in reducing its
cost base and improving its operational efficiencies.

 

Net cash inflow from operating activities was £2.5m, demonstrating a
significant improvement in cash conversion and earnings quality.

 

The Board also expects to receive a clean audit opinion from Cooper Parry on
the FY25 results.

 

2026 Outlook - FY26 increased to £38m revenue

 

The Group expects to report record H1-26 revenues of circa £24.0m (H1-25:
£10.1m), in line with management expectations which is underpinned by circa
£21.0m of revenue already delivered or contracted to be delivered based on
the revised revenue recognition policy.

 

The increase in revenue, reflects mobilisation of larger contracts secured in
FY25, continued conversion of pipeline into contracted projects, and
increasing contribution from frameworks and funding partnerships.

 

The Board has increased its FY26 revenue expectations to £38.0m, reflecting
improved visibility and the impact of revised revenue recognition on the year
as a whole.

 

Adjusted EBITDA in FY26 is expected to remain at £4.5m, with incremental
gross profit in FY26 broadly offset by the expensing of £0.6m of contract
assets carried from FY25.

 

The Group expects to become increasingly cash generative during FY26, as
working capital invested in H2 FY25 unwinds.

 

With a strong contracted cash flow, the Group expects to be in a position to
repay the £1.0m loan facility with Harwood Holdco Limited ahead of its due
date of 31 July 2026.

 

* Adjusted EBITDA is EBITDA stated after adding back share-based payment
charges of £0.8m in FY25 and £0.2m in Q1-26 (FY24 share based payments
charge: £1.6m)

 

Harvey Sinclair, CEO of eEnergy, commented: "We have delivered a strong first
quarter, with £11.0m of revenue and £0.7m of Adjusted EBITDA, and expect
revenue in H1-26 of circa £24.0m, with circa £21.0m of revenue already
delivered or contracted to be delivered. This reflects the mobilisation of
larger contracts and continued conversion of our pipeline.

 

We have also taken the decision to adopt a more conservative revenue
recognition policy. Whilst this reduces reported FY25 revenue, it better
aligns revenue with cash generation and project delivery. There is no impact
on the underlying economics of the contracts, and this provides a clearer
foundation as we scale.

 

Delivering an expected £2.2m Adjusted EBITDA* in FY25 and underlying free
cashflow of £2.5m from operations represents a fundamental shift in our
operating model. Investors can now see that our business model is working and
that EBITDA converts into cash.

 

While FY25 marks a clear inflection point for eEnergy, the real indicator of
performance is our strong start to FY26 and our substantial pipeline of
opportunities we are pursuing.

 

Our model is now proving itself at scale.

 

We have transitioned into a multi-channel platform, combining direct sales,
frameworks, tenders and funding partnerships to access larger, more complex
projects. Our partnership with Redaptive and the launch of our Energy
Performance Contracting solution further strengthen our ability to deliver
funded Net Zero solutions reducing client electricity costs at scale.

 

The current market backdrop provides additional tailwinds, with energy
volatility accelerating macro demands for energy reduction solutions and off
grid renewables, alongside continued Net Zero requirements and capital
constraints which drive demand for funded, off balance sheet solutions.

 

We entered FY26 with strong momentum and increased confidence with our
strongest ever pipeline of opportunities. With FY26 revenue expectations of
£38.0m and unchanged Adjusted EBITDA* of £4.5m, alongside improving cash
generation, we believe eEnergy is well positioned to deliver sustained growth
and value for shareholders."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part
of UK domestic law by virtue of the European Union (Withdrawal) Act 2018,
as amended.

 

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

 

 eEnergy Group plc                              Tel: +44 20 3813 1550
 Harvey Sinclair, Chief Executive Officer       info@eenergy.com (mailto:info@eenergy.com)

 John Gahan, Chief Financial Officer

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

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

 Tavistock                                      Tel: +44 20 7920 3150
 Jos Simson, Nick Dibden, Katie Hopkins         eEnergy@tavistock.co.uk (mailto:eEnergy@tavistock.co.uk)

 

About eEnergy Group plc

eEnergy (AIM: EAAS) is a UK-based Energy-as-a-Service (EaaS) provider, funding
and delivering energy-saving and energy-generating solutions across multi-site
public sector and commercial portfolios-helping customers cut energy waste,
reduce operating costs, and improve building resilience with zero upfront
cost.

 

eEnergy delivers four core solutions:

·      Reduce: LED lighting and controls

·      Generate: Solar PV (rooftop, ground mount, and carport)

·      Store: Battery storage (store onsite generation and reduce
peak-time import costs)

·      Charge: EV charging infrastructure and management

 

Projects are funded through dedicated facilities, including up to £100m of
project funding via eEnergy's partnership with Redaptive, and a £40m NatWest
facility supporting public sector deployments.

 

eEnergy's routes to market include direct sales, public sector frameworks,
tenders, and strategic partnerships. The Group holds positions on five major
procurement frameworks-CCS (Crown Commercial Service), LASER, Lexica/NHS
London, NHS Commercial Solutions Framework, and Proactis (YPO)-and is an
Office for Zero Emission Vehicles (OZEV) approved EV charge point installer.

 

The Group has delivered over 1,200 projects and has installed c590,000 LEDs,
improving learning environments for c520,000 students.

 

eEnergy is a market leader in the education sector and has been awarded the
London Stock Exchange's Green Economy Mark. The Company is also recognised in
the 2025 UK Fast Growth 50 Index within the Fastest Growing Green Firms 2025
list, and holds an EcoVadis Bronze Medal with a score of 61/100, placing it in
the top third of more than 130,000 organisations assessed globally.

 

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