REG - Good Energy Group - Interim Results
20/09/2022 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:20220920:nRST9259Za&default-theme=true
RNS Number : 9259Z Good Energy Group PLC 20 September 2022
Good Energy Group PLC ("Good Energy" or "the Company")
Un-audited interim results for the 6 months ended 30 June 2022
Resilient financial performance and investing in growth strategy
Good Energy, the 100% renewable electricity supplier and innovative energy
services provider, today announces its interim results for the six months
ended 30 June 2022.
Highlights
· A resilient financial performance, despite ongoing and significant
pressures from commodity markets
· The Company remains substantially debt free with a strong cash and
cash equivalents position of £22.2m at the end of August 2022.
· Supply business well hedged for winter 2022 having incrementally
hedged throughout the year, a strategy that will continue into 2023.
· Continued investment in strategic vision including new generation
product development, innovative business supply products and further
investment into Zap-Map through a successful £9m series A fundraise with
Fleetcor, valuing Zap - Map at £26.3m on a post money equity value.
· As previously announced, the Company has shifted its capital
allocation towards growth and investment, whilst maintaining a strong balance
sheet as a buffer to the ongoing volatile wholesale energy markets. An interim
dividend of 0.75p has been declared for the period.
Financial performance for the six months to 30 June 2022
Period ended H1 2022 HY 2022 H1 2022 H1 2021
£m* Underlying continued operations Non underlying Reported Reported
Revenue £107.6m £107.6m £68.4m
Gross Profit £12.2m £12.2m £17.7m
Administration costs £(12.7)m £(12.7)m £(11.8)m
Operating profit £(0.5)m £(0.6)m £5.9m
Net finance costs £(0.2)m £(0.2)m £(1.2)m
Profit before tax £(0.7)m £(0.7)m £4.8m
Taxation £1.0m £1.0m £(1.6)m
Profit from continuing operations £0.3m £0.3m £3.2m
Profit from discontinued operations, before tax £0.0m £0.0m
Tax on discontinued operations £0.4m £0.4m
Profit for the period £0.8m £0.8m
Cash and cash equivalents £21.7m £21.7m £9.0m
Basic (loss) / earnings per share (p) 7.4p 7.4p 20.5p
Half Year dividend per share (p) 0.75p 0.75p 0.75p
Financial highlights - continuing operations
· Revenue increased 57.4% to £107.6m (HY 21: £68.4m) driven by
significant price rises throughout the year in response to rising wholesale
costs. As price rises lag commodity price increases, this is expected to be a
phasing impact in the medium term.
· Gross profit decreased by 31.1% to £12.2m (HY 2021: £17.7m) with a
gross profit margin of 11.4% (HY 2021: 25.9%). H1 2021 benefited from
commodity procurement during COVID.
· Underlying loss before tax of £0.7m (HY 2021: profit £4.8m)
includes a loss of £0.8m in relation to Zap-Map's financial performance.
Following the recent funding round, Zap-Map will be deconsolidated from full
year PBT figures, H1 2022 included a loss of £0.8m for Zap-Map.
· Reported profit after tax for the period of £0.8m (HY 2021: £3.2m),
· Reported earnings per share of 7.4p (HY 2021: 20.5p).
· Sale of generation assets completed in January 2022 for total
consideration of £21.2m. The company is now debt free on a net basis.
· Sale proceeds continue to provide a balance of growth capital and
buffer against continued volatile wholesale energy prices. Cash and cash
equivalents at the end of August 2022 was £22.2m.
Operational highlights
· Good Energy has delivered a resilient performance in the first half
of 2022 with continued investment across the business supporting the journey
to a zero-carbon Britain.
o Smart meter rollout progressing well, with over 36,800 and 43% of customer
smart meters installed to date, with over 10,000 installed in 2022. We remain
on target to install over 13,000 this year, increasing the total to 40,000 and
47% of our customer base by the end of 2022.
o New product launched for businesses, matching their supply demands
directly with generators. This reduces our exposure to wholesale markets and
allows our customers to know the exact provenance of the renewable energy.
o Two market leading billing platforms integrated. Kraken and Ensek offering
an enhanced digital service for customers. Delivering an 'Excellent' 4.6*
rating on Trust Pilot.
o Resilient business practices offering stability in the face of wholesale
market pressures.
· Zap-Map successfully completed a £9m Series A fundraising, valuing
Zap-Map at £26.3m post money equity value, including investment from Fleetcor
and Good Energy.
o The funds raised are expected to fuel the expansion of Zap-Map's
development team to deliver its product roadmap and could pave the way for
Zap-Map's international expansion.
o Zap-Map registered users increased 105% to 455,000, reflecting continued
strong growth in electric vehicle uptake. Mapping data includes 95% of the
UK's public charging points on its network. Over 75% of the UK's EV drivers
have downloaded Zap-Map.
o Zap-Pay rollout continuing at pace, with nine charge point operators and
25% of the rapid charging market signed to date.
o Subscription service launched in June 2021. Good levels of customer
conversion experienced particularly from new EV drivers, particularly for
annual subscriptions.
o Fleet service EV fuel card with Fleetcor UK (Allstar Business solutions)
launched in March 2022.
o Good Energy made an initial £1.08m investment in Zap - Map in 2019 for a
50.1% equity stake. Subsequent investment of £1m via a convertible loan was
made in 2021, followed by a further £3.7m in the recent Series A round. Total
investment made by Good Energy to date of £5.7m. Good Energy now hold a 49%
stake in Zap - Map. Following the £9m series A investment, including £5.3m
from Fleetcor, Zap - Map is now valued at £26.3m on a post money equity
value.
· Customer numbers increased marginally in 2022, with a focus on
collections and long-term relationships.
o Overall Good Energy customer numbers increased by 0.8% to 276.9k.
o Domestic customers increased 2.6% to 86.6k.
o Business customers decreased 10.0% to 9.8k
o Feed in tariff (FiT) customers increased 0.7% to 180.5k
o Zap-Map total registered users increased 105% to 455,000 (June 21: 221k
users).
Outlook Highlights
· Robust platform for future growth and resilience. Substantially debt
free with a strong cash and cash equivalents position of £22.2m as at the end
of August 2022. Enables continued investment across the business and provides
sufficient working capital to support our continued resilience to
industry-wide headwinds.
· We expect the introduction of the Energy Bill Support Scheme to
minimise the impact of the rising forward prices over the medium term for
customers.
· Innovative new payments product for generators remains on track to
launch in Q4 2022. A key step for generators combatting the ongoing energy
crisis.
· Whilst there will inevitably be pain for customers, we are well
positioned to help those customers wishing to go green and have the services
to generate, consume, share and store fully renewable power.
· The Company will invest across energy services through a clear buy
and build strategy.
· We see returns being driven primarily from a combination of organic
growth and acquisitions. M&A will be targeted primarily on accelerating
our capability in decentralised energy services and we look forward to
updating the market on this as we are in a position to execute.
Nigel Pocklington, Chief Executive Officer of Good Energy, said:
"The global energy crisis is escalating further. Russia's stranglehold on gas
supplies to Europe has been magnified by further shortages and uncertainty,
driving energy prices in the UK to fresh highs. We have been vocal in stating
that the only solution in the short term is Government support and demand
reduction, with an accelerated roll out of renewables in the medium to longer
term. We are now pleased to see the Government take meaningful steps to help
customers through winter and beyond.
"Over the past 12 months, the rising cost of energy, multiple supplier
failures and everyday consumers having to pick up the bill only serves to
highlight a greater need for renewables to play a vital role in our long-term
energy strategy. Not only will a shift to cleaner, local electricity sources
cut the UK's carbon, it will cut the UK's ties to fossil fuel driven global
markets. As a trusted leader in local, decentralised clean power, Good
Energy's core purpose has never been more relevant.
"Despite the pressures of the wider market, I am pleased with the resilient
performance and continued delivery on our growth strategy during the period.
We remain a substantially debt free business with a strong balance sheet,
which is of benefit to all our stakeholders, and have taken tangible steps to
invest in our future, in both new products for solar customers and supporting
Zap-Map's growth by powering electric vehicle drivers.
Demand for clean energy products like solar, storage and electric vehicles is
soaring as customers look to cut costs and gain control of their energy. Our
mission to help one million homes and businesses cut carbon from their energy
and transport use by 2025, and supporting the growth of renewable generation,
has never been more needed."
Enquiries
Good Energy Group PLC Email: press@goodenergy.co.uk (mailto:press@goodenergy.co.uk)
Nigel Pocklington, Chief Executive
Charlie Parry, Director of Corporate Strategy & Investor Relations
Ian McKee, Head of Communications
SEC Newgate UK Email: GoodEnergy@secnewgate.co.uk (mailto:GoodEnergy@secnewgate.co.uk)
Elisabeth Cowell / Molly Gretton Tel: +44 (0)7900 248213
Investec Bank plc (Nominated Adviser and Joint Broker)
Jeremy Ellis Tel: +44 (0) 20 7597 5970
Canaccord Genuity Limited (Joint Broker) Tel: +44 (0) 20 7523 4617
Henry Fitzgerald - O'Connor / Harry Rees
About Good Energy www.goodenergy.co.uk (http://www.goodenergy.co.uk/)
Good Energy is a supplier of 100% renewable power and an innovator in energy
services. It has long term power purchase agreements with a community of 1,700
independent UK generators.
Since it was founded 20 years ago, the Company has been at the forefront of
the charge towards a cleaner, distributed energy system. Its mission is to
power a cleaner, greener world and make it simple to generate, share, store,
use and travel by clean power. Its ambition is to support one million homes
and businesses to cut carbon from their energy and transport used by 2025.
Good Energy is recognised as a leader in this market, through green kite
accreditation with the London Stock Exchange, Which? Eco Provider status and
Gold Standard Uswitch Green Tariff Accreditation for all tariffs.
About Zap-Map www.zap-map.com
(https://investegate.co.uk/good-energy-group--good-/rns/un-audited-results-for-12-months-ended-31-dec-2021/202203290700103130G/www.zap-map.com)
Launched in June 2014, with a mission to accelerate the shift to electric
vehicles (EV) and help the drive towards zero carbon mobility, Zap-Map is the
UK's leading EV mapping service. The charging point map, available on desktop
and iOS/Android apps, helps EV drivers to search for available charge points,
plan longer journeys, pay for charging on participating networks and share
updates with other drivers.
Zap-Map currently has more than 420,000 registered users and over 95% of the
UK's public points on its network, with around 70% being updated with live
availability status data. More than 220,000 EV drivers use Zap-Map each month
out of an EV parc of 520,000,000 (SMMT June 2022).
CEO review
Overview
Good Energy's mission to help combat the climate crisis is now intertwined
with combatting the energy crisis. I wrote in March that in the second half of
2021 we had begun to see largely unprecedented and structural changes to the
UK energy landscape. Throughout 2022 we have seen this trend continue,
exacerbated by Russia's attack on Ukraine. Since then, the energy crisis in
the UK and across Europe has deepened and brought energy to the forefront of
the national conversation. Energy security, energy independence, inflation and
the cost-of-living are driving headlines daily.
We are now experiencing one of the most exceptional financial periods in
post war history, with surging energy prices driving near record levels of
inflation. Coupled with global post pandemic supply chain issues, it is
creating the conditions to send us towards the nadir of stagflation. Wholesale
energy prices have increased significantly and are now 120% higher than this
time 12 months ago.
The need for strong Government support to avoid a deeper, longer lasting
impact of this cost-of-living crisis has never been more important. It should
not be down to the UK's consumers and businesses to pay the cost of a war on
energy. On 8 September the government announced substantial further package of
measures to combat consumer energy prices alongside plans to do the same for
businesses. The Energy Price Guarantee is a unit rate discount that supersedes
the existing energy price cap, applicable to all households from 1 October
which will in addition to the £400 Energy Bill Support Scheme retain prices
at a similar level to current over the winter period.
These unprecedented times are likely to drive accelerated systemic changes,
both in macro support and energy policies and we anticipate that these actions
will accelerate an acceptance of green technologies. We believe that now is
the time to invest. Now is the time to take bold action.
Navigating the energy crisis with resilience and investing for growth
Despite rising wholesale prices, a raft of suppliers exiting the market and
significant operational changes, we have continued to operate successfully. I
remain proud of the way our business has reacted to these unprecedented
events. We are trading in line with our expectations and the activities
undertaken during the period mean that we remain in good financial health,
being substantially debt free with a strong cash balance.
Throughout the crisis we have used our flexibility to set appropriate prices
and improved cash collection capabilities and systems, leading to a
significant year-on-year improvement in collections to mitigate the impact on
our business and our management of working capital. We have implemented price
rises across domestic and business portfolios in line with increasing costs
and carefully managed debt and direct debit collection rates.
Alongside our focus on operational performance, we have continued to invest
across our business, to deliver our strategic vision of helping one million
homes and businesses cut carbon. To fund this strategy, we completed the
transformational sale of our generation portfolio in January, at a premium to
book value, which was a landmark moment for Good Energy. The total
consideration of £21.4m is being used to accelerate and support further
investments across both transport and decentralised energy to deliver Good
Energy's strategic plan, as well as to provide sufficient working capital to
support our continued resilience to industry-wide headwinds.
We have been developing a new platform for our decentralised energy service
business which will be the key to unlocking a more digital services led
offering. We believe this new product will be a market leading, innovative
solution for solar customers. As the only UK energy supplier with more
customers exporting their energy through us (via the Feed-in Tariff) than
importing it, we are uniquely positioned in this growing market. It will
enable Good Energy to pay actual as opposed to deemed rates for exported
electricity, providing material benefits to customers. It also acts as a new
source of power to match with our supply customers. This is a first in the
market which is not currently possible under the Feed-in Tariff.
We also participated in Zap-Map's Series A funding round, in line with our
strategy to accelerate the transition to electric vehicles and to provide
investors with exposure to this exciting growth market.
Navigating the crisis and making progress on our strategy has only been
possible with the support of Good Energy's dedicated and professional team,
and the patience of our customers, many of whom have been with the business
for several years. I remain acutely aware of the impact of high energy costs
on society and for our customers. The longer term needs these events have
exposed - for a resilient, renewable and secure energy strategy for the UK, is
of course, at the very heart of our mission as a company.
Purpose and strategic vision
Earlier this year we launched our bold vision for the coming years. Our
ambition is to support one million homes and businesses cut carbon from their
energy and transport use by 2025.
Our mission remains as it always has. To power a cleaner, greener world, by
making it simple to generate, share, store, use and travel by clean power.
In order to deliver this bold vision, we will be laser focused on our target
markets and service offerings.
Renewable supply business
· Fairly priced, transparent, 100% renewable electricity.
Decentralised energy
· Services to help homes and businesses generate, store, consume and
share their own power.
Mobility
· Make it easier to own, drive, fuel and pay for an electric vehicle.
Throughout 2022 we have continued to make good progress on delivering this
vision, despite the backdrop of the energy crisis.
Renewable Supply
Our focus is to provide fair priced, transparent, genuine 100% renewable
electricity. We are clear that we are not everything for everybody. We offer a
premium product and are a trusted provider to help customers choose the right
services and feel like they are making an impact on climate change by going
green and saving money in the process.
We see this market as one of potential steady and incremental growth over the
coming years. It remains the foundation of a green energy services business.
Our 2022 goals for this part of our business are very much focused on
stability:
· retention of our customer base
· launching new products for our business customers
· continued improvement of our overall customer service
As a result of the ongoing volatility in the wholesale markets, very little
switching has taken place across the domestic market. Suppliers have taken
lower cost tariffs off the market while commentators and the regulator have
continued to urge caution. Our focus in the first half of the year, which we
expect to continue into early 2023, has been on operational stability and
financial prudence.
Electricity increased 472% and gas increased 752% year on year (March 2022 vs
March 2021). This has continued to rise throughout the year.
As a result, in February 2022 we saw the price cap increase by a significant
54% to £1,971. In August, it was announced this would rise a further 80% to
£3,549, a staggering 177% rise on 12 months ago. With further rises planned
for the updated price cap in January 2023, the Government has announced plans
to take substantial action, applying a universal discount rate to all domestic
tariffs to keep the prices customers will pay at a similar level to
pre-October.
Although we are not immune from this energy crisis, which has affected
everyone from consumers to suppliers, regulators, and government, we have
worked hard to insulate ourselves as much as possible. Earlier in the year, we
highlighted the impact of incurring additional commodity costs from a higher
number of business and domestic customers than expected. We saw this continue
over the first months of the year.
Despite the highly volatile wholesale energy prices, we have continued to
mitigate against further risks where possible:
· Our electricity purchasing model, which backs all supply with power
sourced via direct agreements with renewable generators, brings additional
complexity and provides support for renewables above and beyond that offered
by other suppliers. But for the same reasons it is the basis for our exemption
for the price cap and creates price flexibility.
· We expect this to minimise the impact of the rising forward prices
over the medium term. We will continue to monitor the need to increase prices
further.
· We expect prices to stabilise, albeit it at a significantly higher
level, throughout 2022 and 2023.
· We are 90 per cent hedged for winter 2022 (based on seasonal normal
weather patterns), despite the continued market volatility. Our energy trading
capabilities remain a core strength. We have a robust hedging policy
implemented via dedicated trading function. This has helped us navigate the
energy crisis whilst many suppliers have gone out of business.
· We have a clear trading plan and have taken steps going into Winter
2022 including risk of PPA under delivery built into tariffs. We had a clear
plan to incrementally purchase power for winter 2022 and are now 90 per cent
hedged heading into that period. We are following a similar approach and plan
to incrementally increase hedging for Summer 2023.
· Following a record low wind period in Winter 2021, we have adjusted
our trading mix to lower exposure to wind. Risk of under delivery is now built
into tariffs.
· However, changing regulations continue to make access to trading
difficult across the industry
In the business supply market, the rising cost of energy has also forced us to
assess the most effective way to serve our customers.
Historically Good Energy, and some other suppliers, have purchased volume from
smaller generators via power purchase agreements (PPAs) while at the same time
selling volume to customers via supply contracts. The generator volume was
either added into the overall hedge position or sold back to the market. The
supply contracts volume would have been purchased from the marketplace.
This year we have shifted our business proposition to net generators with
supply customers. This means when a generator offers us an amount of power, we
try and find a supply customer that wants to buy that volume of power. This
provides two benefits:
· It provides customers certainty about the provenance of their
renewable supply - they can pinpoint the site(s) where their volume is coming
from - whether that's a wind turbine in Suffolk, a solar panel in Cornwall or
an anaerobic digestion plant in Scotland.
· It enables Good Energy to diversify where we source our customer's
power from, reducing our exposure to purchasing via the marketplace and
enabling us to optimise our trading credit lines better.
So far we have matched over 24GWh across 48 of our larger customers.
In summary, we have made good operational progress during the period, which
has positioned us well for future growth:
· Green proposition enhanced through accreditations including Which?
Eco Provider and Uswitch Green Tariff Gold Standard.
· Our leading customer platforms are delivering improving customer
service. All our domestic and business customers are now on Kraken and Ensek.
Delivering an 'Excellent' 4.6* rating on Trust Pilot.
· Our smart meter rollout remains on track with 10k installed in 2022
and over 36k, or 43% of our customer base, installed to date. These are key to
unlocking energy services products.
· We are also well placed for further trading optimisation and smart
tariffs.
The longer-term impact on the UK and European energy markets remains unknown,
but a reduction on reliance on Russian gas inevitable. This structural shift
in the source of UK energy supply provides a material opportunity to further
accelerate our development and deployment of renewable generation.
We are now clear that the days of low prices and aggressive price competition
in the energy retail market are unlikely to return in the short or medium
term. Whilst there will inevitably be pain for customers, we are well
positioned to help those customers wishing to go green and have the services
to generate, consume, share and store fully renewable power. We see this
market evolving to be increasingly focused less on price competition, but more
on trust, purpose and high-quality products and services. We are well aligned
with this change in market focus and are well placed to prosper.
Decentralised energy
This strategic focus provides services to allow people and businesses to
generate, store, consume and share their own power.
We see this side of our business as a way of gaining market share through
innovation and renewed market growth. Home and small-scale generation is
growing rapidly as a result of the rising price of energy, with triple the
capacity of rooftop solar installed in Q2 2022 compared to the same period in
the previous year and UK Google searches for 'solar panels' reaching an
all-time high in August 2022.
A key goal for 2022 has been to deliver a smart export product for solar
users. This has been progressing well and we expect to launch a
first-of-its-kind service in Q4 2022.
This service will reward customers for making the grid greener and is a step
towards a more decentralised energy grid. Customers will get paid for what
they export, which is an evolution from the current deemed export payment,
which is capped at 50% of all generation. This is ideal for homes which
generate more than they're able to use, or who can shift load effectively.
As the second largest feed in tariff (FIT) provider, we believe this product
will help grow market share as generators look to earn more for what they
generate. It also rewards those customers with smart enabled services who can
shift load and export at appropriate times, and we earn revenue on each MWh
our customers export. It has significant potential to unlock new services and
recurring revenue streams to power growth for the future.
We are also focused on securing partnerships and potential acquisitions for
solar, storage and clean electrified heating installations, and look forward
to updating the market on developments in this area.
Mobility
Our ambition is to make it easier to own, drive, charge and pay for an
electric vehicle. We have solutions for all areas an electric vehicle driver
needs. We will continue to focus on investing in software and services and
look to partner for asset and hardware solutions.
We see this area undergoing rapid growth in the coming years and will be
building services for all electric vehicle drivers. Our investment in Zap-Map
allows us to have a material impact in this space as they build out a market
leading offering.
Zap-Map
Zap-Map delivered a strong 2021 performance and built on that throughout 2022.
The Zap-Map team is now focused on scaling up to capitalise on this market
leading position.
Zap-Map's product vision is to be the go-to app for electric vehicle drivers,
offering the simplest way to find and pay for charging, in the UK and abroad.
Growth will come from being the best place to find bundled charging and aiming
to lead the market on payments. Over the medium term, expansion will come from
building an as a service business model, enhancing the fleet proposition,
expanding data insights further and going international.
Post-period end, in August, we announced the successful completion of a series
A fundraise, with Zap-Map raising £9m from Fleetcor and Good Energy at a post
money equity value of £26.3m. Our contribution of £3.7m was enabled by the
proceeds raised from the sale of our generation assets and is in line with our
strategy to build a platform which makes it simple for people to travel with
clean power. Zap-Map has a strong role in our three-pronged strategy across
clean energy supply, energy services and transport.
Zap-Map is focused on leading the market in terms of EV charging payments and
therefore, the involvement of Fleetcor is highly exciting and a strong
endorsement of Zap-Map. Fleetcor processes billions of electronic transactions
a year, recording annual revenue of $2.8 billion in 2021.
Its strategic investment builds on an existing partnership which sees
Fleetcor's Allstar Business Solutions integrated into Zap-Map's Zap-Pay
product, which is designed to make EV charging payment simple. Zap-Pay
continues to expand quickly, experiencing good levels of customer conversion,
particularly from new EV drivers, and is already integrated with nine charging
networks, covering 25% of the UK rapid networks.
A significant proportion of the funds raised will be used for the product
development but the involvement of Fleetcor will also be beneficial to Zap-Map
as it progresses its international expansion strategy.
Zap-Map is well positioned to benefit from future growth in EV ownership. The
electric vehicle (EV) market continues to experience a seismic shift with
growing demand. EVs are expected to grow from 10% of new car sales in 2020 to
100% by 2030. This would represent over 27% of all UK cars. Throughout this
period, we expect a 92% compound annual growth rate (CAGR), with 47% growth
expected until 2026.
Zap-Map currently has over 450,000 registered users, and over 95% of the UK's
public points on its network. Over 75% of UK EV drivers have downloaded
Zap-Map, with growth in Zap-Map downloads more than keeping pace with the
rapid growth in the EV market. Growth in users has tracked the growth of the
wider electric vehicle market with user numbers up 105% vs June 2021.
Engagement is one of the key metrics for growth. Zap-Map has historically had
an early adopter, highly engaged user base. Over 50% of users are monthly
active users, a leading indicator of repeat usage. The breadth and depth of
the data available to EV drivers is what defines Zap-Map as the market leader
in this category.
Another pillar of its expansion strategy is subscriptions services delivering
recurring revenues to the group. Zap-Map has already rolled out a subscription
model to provide high usage drivers with improved services and uptake of the
annual subscription has continued to rise. Alongside direct to registered
users conversion, we see bundling as an effective route to market.
In September 2021, Good Energy and Zap-Map launched the first electric vehicle
driver tariff with Zap-Map subscriptions bundled in. Bundled services will be
a key part of our growth strategy going forward and we will continue to seek
out partnerships with car manufacturers and parking operators providing
another revenue growth channel. Our ambition is to leverage our relationship
with Zap-Map to drive additional value add services for customers and maintain
longer lasting relationships.
Capital allocation and outlook
We continue to invest for sustainable growth and our capital allocation policy
will reflect this. We are maintaining our dividend while also delivering on
our growth strategy.
We see returns being driven primarily from a combination of organic growth and
acquisitions. M&A will be targeted primarily on accelerating our
capability in decentralised energy services and we look forward to updating
the market on this as we are in a position to execute.
Naturally, we will also be focused on ensuring stability in existing business,
driving sustainable growth to withstand external shocks. While growth is
expected through our new decentralised energy services platform, due to go
live in Q4 2022, we are well prepared for ongoing volatility, being 90 per
cent hedged for seasonal normal weather conditions for winter 2022 and our
trading mix has been adjusted to lower our exposure to wind. Also, while
changing regulations continue to make access to trading difficult across the
industry, we have a clear trading plan and have already taken steps going into
Winter 2022.
I am pleased with our resilient financial performance in the period and would
like to thank the team for their hard work in managing unprecedented
challenges while also laying strong foundations for growth. I would also like
to thank our customers, who continue to support both our business and the rise
of renewable generation in the UK during this challenging period.
OPERATING REVIEW
Wholesale energy market conditions
Power prices
The development of power prices in the last 18 months has been significant,
starting with COVID impacts and subsequent recovery before geopolitical
matters drove a dramatic, rapid and fluctuating upward trend in wholesale
power and gas costs. Day ahead gas prices started the year at £1.53/therm,
peaked at £6.44/therm on August 26(th), and had dropped to £3.94/therm by
September 7(th).
Weather conditions in H1 2022 and through to August have reflected a warmer
year than ever recorded before. The average temperature for January to
August for the UK in 2022 has been 10.5°C, making this year so far warmer
than the previous record of 10.2°C in 2014. This has impacted gas usage
with H1 2022 being 17.8% lower than H1 2021.
Overall electricity supply volumes were up 20.6% reflecting continued COVID
recovery, increased business supply volumes and an increase in domestic
customer numbers.
Our renewable supply business
Cash collections
Significant rise in cash collections in Q1 driven by increased tariffs (SVT's
Price Cap and Commercial tariffs) and the recovery from teething problems
experienced in the implementation of our new business billing platform (Ensek)
which impacted collection during Q2 and Q3 2021.
There is a continued focus on good quality business partners to ensure future
growth comes hand in hand with good collections performance.
Cash collections continue to be a priority for the business, with rising
wholesale prices requiring tariff increases and increased collections to
continue to sustain the business.
Business
Total business supply customers fell by 10% to 10k. Whilst this fall was
seen evenly across SME and HH customers, business supply volumes grew
materially (30%) reflecting higher usage contracts. (2022: 248 GWh, 2021:
191 GWh).
Domestic
In the domestic supply market, 29 suppliers have exited the market since 2021.
This reinforced our stance that a race to bottom on price was not a viable
long-term business model. We remain committed to ensuring that we offer fair
priced, transparent 100% renewable electricity proposition. Elevated energy
prices will drive increasing awareness in the sector.
Feed in Tariff ("FIT")
FIT administration provides the foundation of our energy services model.
Despite the FIT scheme closing to new entrants in March 2019, we continue to
administer the scheme for domestic and business customers. Customer numbers
increased 0.7% to 180.5k versus June 2021.
Generation performance
In January 2022 we announced the disposal of the renewable generation asset
portfolio (47.5MW) as part of an ongoing strategic shift to energy and
mobility services.
Smart metering
Following delays in 2020 and the first half 2021 due to COVID-19 restrictions,
installations are now progressing well. By 7 January 2022, we had installed
22,00 meters delivering on our 2021 target. Total installed meters to date are
close to 37,000 meters.
CFO REVIEW
Overview
The Group has had a resilient financial performance despite continued and
significant pressure from commodity markets impacting on the year's
performance.
The first half of 2021 saw significant benefits from power and gas hedged
during 2020. The second half of 2021 saw rapidly escalating wholesale prices
combined with significant periods of low wind, which combined to hit margins
materially. This escalation of prices has continued throughout the first half
of 2022 and whilst tariffs have been increasing, wholesale prices has risen
quicker putting pressure on margins in the short term.
In September 2022, the UK government announced a significant extension of its
energy market support packages. This support will cap domestic bills, offer
business users significant support, and will add additional collateral into
the wholesale commodity market. All the interventions are designed to support
consumers through an exceedingly difficult period.
Financial performance
Profit and loss
Revenue increased 57% in the period to £107.6m (202: £68.3m) driven by
increased tariffs.
Cost of sales increased by 88% to £95.4m (20201 £50.6m) driven by
geopolitical impacts on wholesale costs.
Gross profit decreased 31% to £12.2m (2021: £17.7m). Gross margin decreased
to 11.3% (2021: 25.9%). The decline in margins reflects that Pricing whilst
rising could not keep pace through H1 (price cap) although this is primarily a
phasing impact over the medium term.
Total administration costs increased 8% to £12.7m. This increase primarily
relates to the booking of expected credit loss (ECL) provisions at 2021 year
end rates.
Net finance costs decreased by 79% to £0.2m driven by a combination of
significant debt reduction and sale of the generation asset portfolio.
Loss before tax of £0.7m includes a breakeven performance for the traditional
good energy business and a loss of £0.7m in the ZAPMAP business.
Reported tax credit at H1 2022 include the impact one-off benefits related to
Generation business sale.
The profit for the period was £0.8m (2020: £3.2m). This reflects the
extraordinary market conditions seen since H2 2021 and continuing to this
day.
Financial bridge 2021 to 2022*
2022 saw the impact of some higher volume business contracts secured in 2021
and a small growth in domestic customer numbers. This generated a £0.8m
positive volume impact compared to H1 2021
The current geopolitical energy crisis - affecting everyone from consumers to
suppliers, regulators and government - means we are experiencing ongoing
global uncertainty and have not been immune from the impacts from the
wholesale market. In H1 2022 our recorded wholesale prices increased 87%
whilst supply revenue increased 60%. On the commodity costs side this also
reflects that H1 2021 benefited from commodity procurement during COVID,
whilst H2 2022 saw the impacts of the rapidly rising commodity costs. Due to
the price cap calculation mechanics, prices whilst rising through the same
period, couldn't keep pace. Although this is primarily a phasing impact over
the medium term. The net negative financial impact of all this is £5.6m.
ECL provisioning for H1 2022 has been done at revised rates but using the same
methodology as 2021 year-end. Compared to the H1 2021 we see a negative PBT
impact of £1.6m
Substantially offsetting this ECL change are the reducing costs of interest
and financing within the business that have resulted from the sales of the
generation portfolio and the reduction in bond debt within the business.
Finally, there are some smaller PBT movements with a £0.3m increase in
Zap-Map losses being offset by £0.2m of small other PBT changes within the
group.
*A profit bridge slide has been included in the Investor presentation, which
is available on the Company's website.
(https://group.goodenergy.co.uk/home/default.aspx)
Cash flow and cash generation
Our business model remains cash generative and once wholesale prices stabilise
we expect to see a working capital improvement within the business as tariffs
catchup to wholesale positions.
The increased tariffs alongside the recovery from 2021 business billing
migration issues has seen a significant improvement in collections year on
year. Collections in Q1 were up 57% and in Q2 were up 91% versus the same
periods in 2021.
There was a net increase in cash of £15.0m, which includes the proceeds from
the sale of the Generation assets (£21.2m - gross of fees) alongside the
further strategic investment in Zap-Map of £3.7m.
Cash and cash equivalents at the end of August 2022 were £22.2m.
Funding and debt
Our business is substantially debt free on a net basis. In the period, gross
debts have reduced by 86.6% compared with June 2021.
Substantial progress has been made against reducing Group finance costs and
reducing the gearing ratio. The remaining Good Energy Bonds II outstanding
(£4.7m) is reported within current liabilities. This is due to an annual
redemption request window for bondholders in December of each year and a
one-off redemption window that closed in August with payment of £0.3m due in
December 2022.
The Group continues to maintain capital flexibility, balancing operating
requirements, investments for growth and payment of dividends. Our business
remains mindful of the need to capitalise on strategic business development
and investment opportunities. Prudent balance sheet management remains a key
priority.
Earnings
Reported basic earnings per share decreased to 7.4 (2021: 20.5p).
Dividend
Following stable operational performance in 2022, the sale of the generation
portfolio and reflecting our confidence in the ongoing business, the Board
recommend an interim dividend for 2022 of 0.75p per ordinary share.
Good Energy continues to operate a scrip dividend scheme and the payment
timetable of the interim dividend will be announced in due course.
Expected Credit Loss (ECL)
Versus H1 2021 ECL provision has increased by £1.6m taking the overall
provision to £11.2m (2021: £9.6m).
The main impact is updating H1 2022 to the methodology applied in FY 2021.
Revenues have substantially increased but this has been substantially offset
by improved commercial collection rates.
Zap-Map investment
2022 H1 saw a P&L loss related to Zap-Map of £(0.7m) which increased
£0.3m from 2021, following a period of continued investment. This was
expected and related to Zap-Map's growth plan. At an earnings level the group
retains a £0.4m loss reflecting Good Energy's 50.1% stake in Zap-Map.
Generation portfolio sale
On 25 November 2021, the Company appointed KPMG LLP to lead a sale process
for the Company's entire 47.5MW generation portfolio.
On 20 January 2022 the Company announced, that following a competitive
process, the disposal of the 47.5MW generation portfolio was complete with
Bluefield Solar Income Fund ("BSIF"). Total consideration of £21.2m was
received for the sale.
We are committed to delivering value to stakeholders and the sale of our
generation portfolio, at a significant premium to book value, was a good deal.
It is also a significant moment for Good Energy - we are using the capital
from our past to invest in our future.
Events after the balance sheet
Zap - Map Series A investment.
https://www.londonstockexchange.com/news-article/GOOD/zap-map-raises-ps9m/15574433
(https://www.londonstockexchange.com/news-article/GOOD/zap-map-raises-ps9m/15574433)
Consolidated Statement of profit or loss (Un-audited)
For the 6 months ended 30 June 2022
Notes Unaudited Unaudited Audited
6 months to 30/06/2022 6 months to 30/06/2021 12 months to 31/12/2021
£000's £000's £000's
REVENUE 107,600 68,374 146,045
Cost of Sales (95,379) (50,646) (119,019)
GROSS PROFIT 12,221 17,728 27,026
Administrative Expenses (12,725) (11,789) (24,622)
OPERATING PROFIT (504) 5,939 2,404
Finance Income 6 1 1,447 14
Finance Costs 6 (247) (2,627) (584)
Share of loss of associate - - -
PROFIT BEFORE TAX (750) 4,759 1,834
Taxation 1,044 (1,609) (187)
PROFIT FOR THE PERIOD 294 3,150 1,647
Profit from discontinued operations before tax 82 - (6,752)
Tax on discontinued operations 440 - 1,206
PROFIT/(LOSS) FOR THE PERIOD 816 3150 (3,899)
Attributable to:
Equity holders of the parent 1,217 3,362 (3,389)
Non-controlling interest (401) (212) (510)
Earnings per share - Basic 9 7.4p 20.5p -20.7p
- Diluted 9 7.4p 20.0p -20.7p
Earnings per share (continuing operations) - Basic 9 4.2p 20.5p 13.2p
- Diluted 9 4.2p 20.0p 13.0p
Consolidated Statement of profit or loss (Un-audited)
For the 6 months ended 30 June 2022
Unaudited Unaudited Audited
6 months to 30/06/2022 6 months to 30/06/2021 12 months to 31/12/2021
£000's £000's £000's
Profit/(Loss) for the period 816 3,150 (3,899)
Other comprehensive income
Other comprehensive income that will not be reclassified to profit or loss in
subsequent periods (net of tax):
Deferred tax charge on rate change - (924) -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT 816 2,226 (3,899)
COMPANY
Attributable to:
Equity holders of the parent 1,217 2,438 (3,899)
Non-controlling interest (401) (212) -
Consolidated Statement of Financial Position (Un-audited)
As at 30 June 2022
Notes Un-audited Un-audited 30/06/2021 Audited
30/06/2022 31/12/2021
£000's £000's £000's
ASSETS
Non-current assets
Property, plant and equipment 171 56,848 209
Right-of-use assets 850 6,279 851
Intangible assets 4,233 4,392 3,891
Deferred tax asset 1,280 - 173
Restricted deposit assets - 866 -
Total non-current assets 6,534 68,385 5,124
Current assets
Inventories 17,893 19,914 7,682
Trade and other receivables 7 38,262 30,413 35,928
Current Tax receivable - - -
Restricted deposit assets 2,816 476 2,414
Cash and cash equivalents 21,690 9,035 6,699
Total current assets 80,661 59,838 52,723
Held for sale assets - - 64,798
TOTAL ASSETS 87,195 128,223 122,645
EQUITY AND LIABILITIES
Capital and reserves
Called up share capital 842 833 840
Share premium account 12,790 12,790 12,790
EBT shares (444) (502) (444)
Revaluation surplus - 11,003 11,693
Retained earnings 17,281 10,541 4,774
Total equity attributable to members of the parent company 30,469 34,665 29,653
Non-controlling Interest (726) (27) (325)
Total equity 29,743 34,638 29,328
Non-current liabilities
Deferred taxation - 6,077 -
Borrowings 8 276 39,855 5,066
Provision for liabilities - 1,316 -
Long term financial liabilities - 13 -
Total non-current liabilities 276 47,261 5,066
Current liabilities
Borrowings 8 5,436 6,874 2,118
Trade and other payables 51,683 39,450 40,910
Current tax payable 59 - -
Short term financial liabilities - - -
Total current liabilities 57,176 46,324 43,029
Liabilities associated with HFS asset - - 45,223
Total liabilities 57,452 93,585 93,318
TOTAL EQUITY AND LIABILITIES 87,195 128,223 122,645
Consolidated Statement of Changes in Equity (Un-audited)
For the 6 months ended 30 June 2022
Share Capital Share Premium Other Reserves Retained Earnings Revaluation surplus Non-controlling interest Total
£000's £000's £000's £000's £000's £000's £000's
At 1 January 2021 833 12,790 (502) 6,854 12,472 185 32,632
Loss for the year - - - 3,362 - (212) 3,150
Other comprehensive income for the year - - - - (924) - (924)
Total comprehensive income for the year - - - 3,362 (924) (212) 2,226
Transfer of revaluation to retained earnings - - - 545 (545) - -
Total contributions by and distributions to owners of the parent, recognised - - - 545 (545) - -
directly in equity
At 1 July 2021 833 12,790 (502) 10,761 11,003 (27) 34,858
Profit / (Loss) for the period - - - (6,751) - (298) 7,049
Other comprehensive income for the period - - - 677 - - 677
Total comprehensive income for the period - - - (6,074) - (298) 6,372
Share based payments - - - - - - -
Exercise of options 7 - 58 (40) - - 25
Dividend paid - - - (108) (108)
Acquisition of Subsidiary - - - - - - -
Transfer of revaluation to retained earnings - - - 234 690 - 924
Total contributions by and distributions to owners of the parent, recognised 7 - 58 86 690 - 841
directly in equity
At 31 December 2021 840 12,790 (444) 4,773 11,693 (325) 29,327
At 1 January 2022 840 12,790 (444) 4,773 11,693 (325) 29,327
Profit/(Loss) for the period - - - 816 - (401) 415
Other comprehensive income for the period - - - - - - -
Total comprehensive income for the period 816 - (401) 415
Transfer of revaluation to retained earnings - - - 11,693 (11,693) - -
Total contributions by and distributions to owners of the parent, recognised - - - 11,693 (11,693) - -
directly in equity
At 30 June 2022 840 12,790 (444) 17,281 - (726) 29,743
Consolidated Statement of Cash Flows (Un-audited)
For the 6 months ended 30 June 2022
Notes Un-audited Un-audited Audited
30/06/2022 30/06/2021 31/12/2021
£000's £000's £000's
Cash flows from operating activities
Cash inflow from continuing operations (2,173) 351 3,901
Finance income (1) 9 620
Finance cost (348) (2,139) (2,902)
Net cash flows from operating activities 10 (2,522) (1,779) 1,619
Cash flows from investing activities
Purchase of property, plant and equipment - (11) (248)
Purchase of intangible fixed assets (342) (198) (760)
Deposit into restricted accounts (401) 3,908 1,791
Proceeds from disposal of subsidiaries 19,575 - -
Net cash flows used in investing activities 18,832 3,699 963
Cash flows from financing activities
Payments of dividends - - (108)
Proceeds from borrowings - 7,026 6,786
Repayment of borrowings (1,000) (17,917) (18,076)
Capital repayment of leases (321) (276) (616)
Proceeds from issue of shares - - -
Proceeds from sale of share options 2 - 26
Net cash flows from financing activities (1,319) (11,167) (11,988)
Net increase/(decrease) in cash and cash equivalents 14,991 (9,247) (9,406)
Cash and cash equivalents at beginning of period 6,699 18,282 18,282
Cash and cash equivalents at end of period 21,690 9,035 6,699
Cash and cash equivalents for discontinued operations at end of period - - 2,175
Notes to the Interim Accounts
For the 6 months ended 30 June 2022
1. General information and basis of preparation
Good Energy Group PLC is an AIM listed company incorporated and domiciled in
the United Kingdom under the Companies Act 2006. The Company's registered
office and its principal place of business is Monkton Park Offices, Monkton
Park, Chippenham, Wiltshire, United Kingdom, SN15 1GH.
The Interim Financial Statements were prepared by the Directors and approved
for issue on 20(th) September 2022. These Interim Financial Statements do not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. Statutory accounts for the year ended 31 December 2021 were approved
by the Board of Directors on 27 April 2022 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified and
did not contain statements under 498 (2) or (3) of the Companies Act 2006 and
did not contain any emphasis of matter.
As permitted these Interim Financial Statements have been prepared in
accordance with UK AIM rules and the IAS 34, 'Interim financial reporting' as
adopted by the United Kingdom. They should be read in conjunction with the
Annual Financial Statements for the year ended 31 December 2021 which have
been prepared in accordance with IFRS as adopted by the European Union.
In accordance with IAS 34, the tax charge is estimated on the weighted average
annual income tax rate expected for the full financial year. The accounting
policies applied are consistent with those of the Annual Financial Statements
for the year ended 31 December 2021, as described in those Annual Financial
Statements.
The Interim Financial Statements have not been audited.
2. Going concern basis
The Group has had a resilient financial performance despite significant
pressure from commodity markets and low wind levels. The Group has performed a
going concern review, going out until September 2023, considering both an
internal base case, and various externally provided scenarios. The scenarios
were provided by Ofgem in July 2022 as part of their review into the financial
stability of UK Energy suppliers. Having reviewed this forecast, and having
applied a reverse stress test, the possibly that financial headroom could be
exhausted is remote.
All modelling work was performed before the announcement of the announcement
of the Governments Energy Price Guarantee on Sept 8(th), 2022. The impact of
this announcement is only positive for the company. It reduces collections
and expected loss risk, by providing direct funding from industry bodies to
replace customer contributions (for all domestic dual fuel customer tariffs
above £2,500 per annum - standard TDCV usage assumed). In addition, the
Government funding will be provided within 11 days after the week of supplying
power/gas to consumers which reduces working capital extremes. The
Government has also announced business customer will receive an equivalent
level of support although details are still being confirmed, but any support
will a positive for the business. Finally, the Bank of England will also be
supporting liquidity in the wholesale power and gas trading markets with a
£40bn facility with the aim of a return to a more normal trading environment.
The Directors are confident in the ongoing stability of the Group, and its
ability to continue operation and meet commitments as they fall due over the
going concern period. The Group therefore continues to adopt the going concern
basis in preparing its consolidated financial statements.
3. Estimates
The preparation of Interim Financial Statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing this set of condensed Interim Financial Statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the Annual Financial Statements for the year ended 31 December
2021.
4. Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk,
currency risk, credit risk and liquidity risk. The condensed Interim Financial
Statements do not include all financial risk management information and
disclosures required in the Annual Financial Statements. They should be read
in conjunction with the Annual Financial Statements as at 31 December 2021.
5.Segmental analysis
H1 2022 Electricity Supply FIT Administration Gas Supply Total Supply Companies Electricity Generation (Discontinued operations) Energy as a service Holding Company/ Total
Consolidated Adjustments
£000s £000s £000s £000s £000s £000s £000s £000s
Revenue 88,510 2,849 15,638 106,997 - 603 - 107,600
Cost of sales (84,282) (325) (10,573) (95,180) - (155) (45) (95,380)
Gross profit/(loss) 4,228 2,524 5,065 11,817 - 448 (45) 12,220
Gross margin 5% 89% 32% 11% - 74% 0% 11%
Admin costs (9,716) - (1,227) (1,779) (12,725)
Operating profit/(loss) 2,098 - (779) (1,824) (505)
Net finance costs (5) - (24) (216) (245)
Share of loss of associate - - - - -
Profit/(loss) before tax 2,093 - (803) (2,040) (750)
H1 2021 Electricity Supply FIT Administration Gas Supply Total Supply Companies Electricity Generation Energy as a service Holding Company/ Total
Consolidated Adjustments
£000s £000s £000s £000s £000s £000s £000s £000s
Revenue 50,412 2,582 13,780 66,774 3,864 268 (2,532) 68,374
Cost of sales (41,619) (306) (8,432) (50,357) (2,7839) (54) 2,504 (50,646)
Gross profit/(loss) 8,793 2,276 5,348 16,417 1,125 214 (28) 17,728
Gross margin 17% 88% 39% 25% 29% 80% 1% 26%
Admin costs (9,665) (188) (700) (1,236) (11,789)
Operating profit/(loss) 6,752 937 (486) (1,264) 5,939
Net finance costs (34) (752) (2) (392) (1,180)
Share of loss of associate - - - - -
Profit/(loss) before tax 6,718 185 (488) (1,656) 4,759
6. Finance income and expense
Unaudited Unaudited
As at 30/06/2022 As at 30/06/2021
Finance income £000s £000s
Bank and other interest receivable 2 -
FV gains & losses(1) (1) 1,447
Total 1 81
Unaudited Unaudited
As at 30/06/2022 As at 30/06/2021
Finance expense £000s £000s
On bank loans and overdrafts 123 1,298
On corporate bond 120 363
Other interest payable 6 1
Fees on repayment of borrowings(1) - 620
Interest on lease liabilities 1 194
Amortisation of debt issue costs - 151
Total 250 2,627
(1) Included within Finance income and Finance expenses in the prior year are
amounts classified as non-underlying income and expenses relating to the debt
restructuring taken place during 2020. As a result of the debt restructuring a
fair value gain of £1,447,000 was recognised. However, a £620,000 fee was
incurred for the early settlement of the Delabole loan arrangement.
7. Trade Receivables
Unaudited Audited
As at 30/06/2022 As at 31/12/2021
£000s £000s
Gross trade receivables 49,110 47,686
Provision for impairment/non-payment of trade receivables (11,184) (11,792)
Net trade receivables 37,926 35,894
Other taxation 337 35
Total 38,263 35,929
The movements on the provision for impairment and non-payment of trade
receivables is shown below:
Movement on the provision for impairment and non-payment of trade receivables Unaudited Audited
As at 30/06/2022 As at 31/12/2021
£000's £000's
Balance at 1 January 11,792 8,882
Increase in allowance for impairment/non-payment 586 3,134
Impairment/non-payment losses recognised (1,194) (224)
Balance at 31 December 11,184 11,792
Days past due
Unaudited Contract assets Current <30 days 30-60 days 61-90 days >91 days Total
As at 30/06/2022
£000's £000's £000's £000's £000's £000's £000's
Expected credit loss rate - 4.5% 9.7% 17.2% 26.1% 80.5%
Estimated total gross carrying amount at default - 30,260 4,198 2,377 1,640 10,633 49,110
Expected credit loss - 1,376 409 410 428 8,561 11,184
Days past due
Audited Contract assets Current <30 days 30-60 days 61-90 days >91 days Total
As at 31/12/2021
£000's £000's £000's £000's £000's £000's £000's
Expected credit loss rate - 3.3% 7.9% 17.0% 31.2% 90.1%
Estimated total gross carrying amount at default - 30,070 4,294 1,488 804 11,030 47,686
Expected credit loss - 1,015 340 253 251 9,931 11,792
8. Borrowings
Unaudited Audited
As at 30/06/2022 As at 31/12/2021
Current: £000s £000s
Bank and other borrowings - 1,007
Bond 5,160 557
Lease liabilities 276 555
Total 5,436 2,119
Unaudited Audited
As at 30/06/2022 As at 31/12/2021
Non-current: £000s £000s
Bank and other borrowings - -
Bond - 4,749
Lease liabilities 275 317
Total 275 5,066
On the 30 June 2021, the Group partially repaid £11,450,000 of the Good
Energy Bonds II. This represented 70% of the un-redeemed amount at the date of
payment. On the same day the group also repaid £400,000 in redemption
requests. On 30 June 2022, the Group repaid £200,000 in redemption requests.
The outstanding capital after these combined payments is £4,700,000. The bond
is classified as a current liability as the remaining value is repayable
within 12 months, subject to the request of individual bondholders.
The fair values of borrowings have been calculated taking into account the
interest rate risk inherent in the bond. The fair value estimates and carrying
values of borrowings (excluding issue costs) in place are:
Unaudited Unaudited Audited Audited
As at 30/06/2022 As at 30/06/2022 As at 31/12/2021 As at 31/12/2021
Fair value Carrying value Fair value Carrying value
£000s £000s £000s £000s
Good Energy Generation Assets No.1 Ltd - - 39,513 38,310
Corporate bond 5,104 4,735 5,189 4,902
9. Earnings per share
The calculation of basic earnings per share at 30 June 2022 was based on a
weighted average number of ordinary shares outstanding for the six months to
30 June 2022 of 16,528,000 (for the six months to 30 June 2021: 16,375,000 and
for the full year 2021: 16,399,000 after excluding the shares held by Clarke
Willmott Trust Corporation Limited in trust for the Good Energy Group Employee
Benefit Trust.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares to assume conversion of all potentially dilutive
ordinary shares. Potentially dilutive ordinary shares arise from awards made
under the Group's share-based incentive plans. When the vesting of these
awards is contingent on satisfying a service or performance condition, the
number of the potentially dilutive ordinary shares is calculated based on the
status of the condition at the end of the period. Potentially dilutive
ordinary shares are actually dilutive only when the Company's ordinary shares
during the period exceeds their exercise price (options) or issue price (other
awards). The greater any such excess, the greater the dilutive effect. The
average market price of the Company's ordinary shares over the six month
period to 30 June 2022 was 258p (for the six months to 30 June 2021: 189p and
for the full year 2021: 269p). The dilutive effect of share-based incentives
was 208,252 shares (for the six months to 30 June 2021: 440,432 shares and for
the full year 2021: 145,752).
10. Net cash flows from operating activities
The operating cashflow for the six months to 30 June 2022 is an outflow of
£2.5m (for the six months to 30 June 2021: £1.8m outflow and for the full
year 2021: £1.6m inflow). The difference in the cashflow between the half
year 2022 and its comparative for the same period is primarily due to timing
of working capital related items and a loss before tax in the current year
compared with a profit before tax in 2021.
11. Post balance sheet events
Zap Map fundraise
On 8 August 2022, Zap-Map successfully completed a £9m Series A funding round
with a £5.3m investment from Fleetcor UK Acquisition Limited ("Fleetcor") and
a £3.7m investment from Good Energy. Following the transaction, Good Energy
have a significant minority 49.9% shareholding and Fleetcor have a
shareholding of 19.9%. Zap Map has therefore been deconsolidated from the Good
Energy group from 8 August 2022, resulting in a non-adjusting post balance
sheet event. Good Energy originally invested £1.08m for a 50.1% stake in
March 2019, with a further £1m strategic investment via a convertible loan
note in April 2021. The £1m convertible loan note issued in April 2021 by
Good Energy has now converted into shares.
Government Energy Price Guarantee
On 8 September 2022, the UK government announced details of domestic financial
support available through the Energy Price Guarantee. This has been factored
into the going concern disclosure in note 2 and is treated as a non-adjusting
post balance sheet event in relation to expected credit losses (ECL).
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 IR FLFEEAIIALIFRecent news on Good Energy
See all newsREG - Good Energy Group - Publication of Annual Report
AnnouncementREG - Good Energy Group - Director/PDMR Shareholding
AnnouncementREG - Good Energy Group - Director/PDMR Shareholding
AnnouncementREG - Good Energy Group - Director/PDMR Shareholding
AnnouncementREG - Good Energy Group - Un-audited Final Results 2023
Announcement