REG - Eneraqua Technolgs. - Year End Trading Update

Eneraqua TechnologiesAnnouncement

14/03/2023 07:00

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RNS Number : 8212S  Eneraqua Technologies PLC  14 March 2023

14 March 2023

 

Eneraqua Technologies plc

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

 

Year End Trading Update

 

Eneraqua Technologies plc, a provider of specialist energy and water
efficiency solutions, announces an update on trading for the year ended 31
January 2023 (FYJan23).

 

The Company has continued to deliver on its growth strategy, with both revenue
and profit well ahead of FYJan22 and expects to report revenues of
approximately £55.0m, which are 54% up on FYJan22. Gross margin is
anticipated to be ahead of expectations(1) and EBITDA(2) within the range of
market expectations.

 

Full year revenues are lower than previously targeted which reflect changes,
near the end of the period, to project commencements due to inflationary and
cost pressures on the capital budgets of certain clients. No contracts have
been cancelled, with delivery moving into future years.

 

The improved gross margin is due to a change in the mix of projects, with
higher margin projects coming into the latter part of the period. In addition,
it reflects tight control of direct costs and the pass through of costs to
customers.

 

Net debt at the end of January was approximately £4.7m, reflecting investment
in working capital, which is expected to unwind in the current financial year.

 

Decarbonisation, net zero targets, energy efficiency and water efficiency
regulation continue to have a positive impact on the Group's target markets
both in the UK and internationally. This is illustrated by the ongoing work
with new and existing clients across both the UK public and private sectors.

 

The Order Book(3) has grown and is now at a record level, with £110m in
contracted and secured work, of which 72% is due to be delivered in FYJan24.
This proportion represents 99% of the FYJan24 revenue target (previously 85%
as announced in October 2022). While early in the current financial year, the
Board remains confident in the Group's outlook for the year ahead.

 

Mitesh Dhanak, CEO of Eneraqua Technologies commented: "It has once again been
a record year for Eneraqua with another period of significant growth
reflecting the strength of our decarbonisation and water efficiency solutions.
We remain confident in the Group's outlook for the year ahead."

 

(1) The Company considers that the range of market expectations for the year
ended 31 January 2023 are for revenues of £61.3m to £61.5m and EBITDA of
£11.4m to £12.2m.

 

(2) Earnings before Interest, Tax, Depreciation and Amortisation.

 

 

(3) 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 Joint Broker  +44(0)20 7220 0500
 Ed Frisby / Charlie Beeson - Corporate Finance
 Andrew Burdis / Sunila de Silva - ECM

 Singer Capital Markets - Joint Broker                 +44(0)20 7496 3000
 Sandy Fraser / Justin McKeegan / Asha Chotai

 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 has two divisions energy and water. Energy is the larger
division, 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.

 

The water division is a growing service offering focused on water efficiency
upgrades for utilities and commercial clients including hotels and care
homes.

 

The activities in both divisions 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 based in London with additional offices in Leeds, Washington
(Sunderland), India, Spain and the Netherlands. The Company has 168 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)

 

The information contained within this announcement is deemed to constitute
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.

 

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