REG - Eneraqua Technolgs. - Half-Year Trading Update and Contract Wins

Eneraqua TechnologiesAnnouncement

15/09/2022 07:01

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RNS Number : 5027Z  Eneraqua Technologies PLC  15 September 2022

15 September 2022

 

Eneraqua Technologies plc

("Eneraqua Technologies", the "Company" or the "Group")

 

Half-Year Trading Update

and

Contract Wins

 

Eneraqua Technologies plc, a specialist provider of energy and water
efficiency solutions, provides an update on trading for the six months ended
31 July 2022 (H1 FYJan23). The Group is also pleased to announce the award of
multiple, multi-year contracts with both new and existing social housing and
private sector clients to provide heat pump solutions, with a total contract
value of up to £36m, to be phased across the next three years.

 

Activity in the first half of the year was strong and the Group was able to
invest to enable it to execute successfully on its growth strategy. H1 revenue
is expected to be at least £24m, with the weighting of full year activity
traditionally falling into H2 due to the nature of client procurement
calendars.

 

As highlighted in the Group's AGM Update on 29 July and further evidenced by
the contract wins detailed above, the Company has a strong pipeline of
opportunities for the current year and beyond with an Order Book(1) providing
full revenue cover for its FYJan23 revenue target and 79% for FYJan24.

 

Major contracts won during the period include:

·    The award of multiple contracts which have been granted by new and
existing social housing and private sector clients to provide heat pump
solutions. These heat pumps will help improve the sustainability of their
properties and reduce the energy bills of their residents.

·    First Agritech contract to provide our ClimateSmart agricultural
water efficiency solution to the State of Uttarakhand in India.

·    Awarded two English local authority contracts to deliver net water
neutrality pilot programmes.

Post half year end the Company completed the acquisition of Mathewson Holdings
Ltd, an established provider of underfloor heating solutions for the health
and commercial sectors.  The initial consideration was £1.4m with a further
consideration of £0.35m payable over two years. The acquisition extends the
Group's low-carbon offering into the healthcare and commercial sectors
utilising the strong synergies between underfloor heating systems and
Eneraqua's existing expertise in ground and air source heat pumps.

 

The Company will announce its half year results for the six months ended 31
July 2022 on 11 October 2022.

 

Mitesh Dhanak, CEO of Eneraqua Technologies commented: "The first half of the
financial year has been strong and we are confident of meeting our financial
targets for the year. We have continued to grow revenues and secure a number
of new contract wins, with the contract wins announced today underpinning
existing market forecasts. It is clear that the underlying drivers of our end
markets are accelerating, and we are confident in the growth prospects for
both our Energy and Water businesses.

"The progress we have made to date coupled with the strength of our Order
Book(1) provides us with continued confidence that we will deliver on the
Board's growth plans for the current year as well as strengthen our ability to
deliver long term value for our shareholders."

 

(1) Order Book defined as Contracted + Secured. Contracted = project contract
issued and signed, with work started or ready to start. Secured = sum of a)
tender process successful, awaiting project contract, and b) Directors'
assumed win rate on Framework opportunities

 

For more information, please contact:

 

 Eneraqua Technologies plc                        Via Alma PR
 Mitesh Dhanak, CEO                               www.eneraquatechnologies.com (http://www.eneraquatechnologies.com)
 Iain Richardson, CFO

 finnCap Limited - Nominated adviser and Broker   +44(0)20 7220 0500
 Ed Frisby / Charlie Beeson - Corporate Finance
 Andrew Burdis / Sunila de Silva - ECM

 Alma PR - Financial PR and IR                    +44(0)20 3405 0205
 Justine James / Sam Modlin / Will Ellis Hancock  eneraqua@almapr.co.uk

 

Notes to editors

 

Eneraqua Technologies (AIM:ETP) is a specialist in energy and water
efficiency. The Group designs and delivers improved energy and water systems
which utilise its wholly owned intellectual property, Control Flow HL2024.
Energy was the first market the Company entered and this is the larger sector,
with the Company focused on clients with end of life gas, oil or electric
heating and hot water systems. The Group provides turnkey retrofit district or
communal heating systems based either on high-efficiency gas or ground/air
source heat pump solutions that support Net Zero and decarbonisation goals.

 

Water is a growing service offering focused on water efficiency upgrades for
utilities and commercial clients including hotels and care homes.  It has
also expanded into agritech systems.

 

The activities in both areas are underpinned by the Company's wholly-owned
intellectual property, the Control Flow HL2024 family of products which reduce
water wastage and improve the performance of heating and hot water systems.

 

The Company's main country of operation is the United Kingdom. The Company's
head office is in London with additional offices in Leeds, Washington
(Sunderland), India, Spain and the Netherlands. The Company has 116 employees,
with the majority employed within the UK. Eneraqua Technologies has received
the London Stock Exchange's Green Economy Mark.

 

To find out more, please visit:  www.eneraquatechnologies.com
(http://www.eneraquatechnologies.com)

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