REG - Eneraqua Technolgs. - Year End Trading Update and Directorate Change

Eneraqua TechnologiesAnnouncement

14/03/2024 07:00

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RNS Number : 7807G  Eneraqua Technologies PLC  14 March 2024

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inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

14 March 2024

Eneraqua Technologies plc

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

 

Year End Trading Update and Directorate Change

 

Eneraqua Technologies plc, a specialist provider of energy and water
efficiency solutions, provides an update on trading for the year ended 31
January 2024 (FY24). The Company also announces that Iain Richardson will be
stepping down from his role as CFO with effect from 31 May 2024 and be
replaced on an interim basis by his deputy, James Lamb, the current Group
Financial Controller.

 

Trading Update

The Company navigated challenging market conditions during FY24 and expects to
report revenues of c.£54m and an adjusted PBT loss in line with consensus
forecasts* of £6.0m, with a stronger than anticipated cash position at the
year end of £6.4m representing a net cash position of £1.2m**.

 

Across the Group, we are seeing increasing demand for our energy and water
solutions as both central and local government recognise the broader benefits
of our solutions and the well documented inflationary impacts on our customers
subside.

 

Energy

The Group has recently secured significant contracts including a £12.7m
contract with the Royal Borough of Kensington & Chelsea and a £7.2m
contract with a world class museum, gallery and leisure complex, both of these
contracts are underway. The Group also secured its first major NHS contract
through the earlier acquisition of Mathewsons, and this sector is one with
exciting growth potential for the Group.

 

Water

The Group is making solid progress in the UK with greater awareness and
adoption of our water technologies.  This is notwithstanding the recent
challenges created by proposed UK Government legislative changes on net
nutrient neutrality policy which resulted in contracts being deferred during
FY24 whilst customers sought clarification.

 

The UK Government's policy on net nutrient neutrality and housing development
has since stabilised and the Group has signed its first nutrient neutrality
contract with a local authority in the South-East of England.  This will see
Control Flow HL2024 products installed in a first phase of 3,000 existing
homes which unlocks a new development of 1,000 homes that has been stalled for
over 18 months.

 

The Group has also expanded internationally having secured new student housing
and care home customer wins in Spain and in India the Group has signed
contracts to deliver additional zero-carbon irrigation solutions and to
undertake trials of Control Flow HL2024 in 3,000 homes.

 

Directorate Change

 

Eneraqua also announces that Iain Richardson will be stepping down from his
role as CFO, by mutual agreement, on 31 May 2024. James Lamb, Group Financial
Controller, will take over the role of CFO on an interim basis, while the
process to appoint a permanent successor is underway.

 

The Board recognises the important role played by Iain over the past 3 years
would like to thank him for his dedication and contributions to the Group.

 

Mitesh Dhanak, CEO Eneraqua Technologies, said: "We have navigated an
extremely challenging year, which has been impacted by inflationary pressures
on client budgets in Energy and the hiatus in Government policy on net
neutrality and development, both of which we are encouraged to see are
stabilising.

"Across both energy and water we are well placed to capitalise on growth in
both the UK and internationally, and the Board remains confident that the
potential for the business driven by the financial, environmental and economic
imperatives of the carbon transition continues to be strong. These positive
factors, together with our proven expertise and good customer relationships,
are increasingly driving an increase in the range and scale of opportunities
available to us. The Board is pleased to confirm that FY25 has started in line
with its expectations."

 * The Company considers that consensus market expectations are:  Revenue of
£55.0m, adjusted PBT loss of £6.0m and net cash of £1.0m.

 

**excluding IFRS 16 liabilities

 

 

 For further information please contact:

 Eneraqua Technologies plc                    Via Alma

 Mitesh Dhanak, Chief Executive Officer

 Iain Richardson, Chief Financial Officer

 Liberum (Nomad and Joint Broker)             Tel: 0203 100 2000

 Edward Mansfield

 Anake Singh

 Singer Capital Markets (Joint Broker)        Tel: 020 7496 3000

 Sandy Fraser

 Asha Chotai
 Alma Strategic Communication (Financial PR)

 Justine James                                Tel: 020 3405 0205

 Andy Bryant                                  eneraqua@almastrategic.com

 Will Ellis Hancock

 

 

Notes to editors

Eneraqua Technologies (AIM:ETP) is a specialist in energy and water
efficiency. The Group operates in two markets, energy and water. Energy is the
larger, 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.

 

The Group's activities 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 Group's main country of operation is the United Kingdom. The Group's head
office is based in London with additional offices in Leeds, Washington
(Sunderland), India, Spain and the Netherlands. The Group has 206 employees,
with the majority employed within the UK.

 

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

 

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