REG - Good Energy Group - Trading Update

Good EnergyAnnouncement

11/10/2021 07:05

RNS Number : 5645O
  
Good Energy Group PLC
  
11 October 2021
  
 

Good Energy Group PLC
 
("Good Energy" or "the Company")
 
Trading Update
 
The Board of Good Energy Group PLC (AIM:  GOOD), the 100% renewable electricity supplier and innovative energy services provider, announces its trading update for the 9-month period to the end of September 2021.
The Board is pleased to confirm that, despite the ongoing volatility in the UK energy sector and low wind speeds in Q3 2021 impacting performance, there is no change to Good Energy's full year expectations.
Performance update
The Company is taking a very cautious stance in the current environment and implementing a prudent approach to risk management. In line with prior years, the Company follows a clear hedging strategy and has also continued to meet all recent regulatory obligations and payments.
The Company is over 90% hedged for the next 12 months, weighted to this coming winter, which limits exposure to the current price volatility in the UK domestic energy market. However, the business, like the sector at large given recent supplier exits, remains subject to a higher level of market risk.
The business has recently implemented material price increases in both domestic and business supply segments reflecting the rapidly changing current market conditions, effectively leveraging the flexibility of the new billing systems implemented over the last 12 months.
While we have made positive strides in addressing the changing nature to our industry, we remain vigilant to the speed of changes and volatility in supply markets. Customer billing and collections remain a core short term focus to minimise working capital stress and maintain a cash buffer over the winter.
We have a vertically integrated business model with a strong and competitive core business; a mature wind and solar generation portfolio; and an increasing focus on small businesses and electric mobility which helps us stand out in a crowded marketplace. Our 47.5MW generation portfolio powers approximately 15% of our customer base and we continue to steer clear of the price war in the domestic supply market, with limited reliance on price comparison sites.  
Significant market opportunity
September 2021 saw record breaking growth in the UK electric vehicle market (EV). One in seven of all cars sold was a battery EV, representing a 49.4% increase from September 2020. Over three times as many battery EV's were sold compared to diesel cars. These positive trends reinforce the scale of opportunity within the UK EV market, where EVs in use are expected to grow at ~47% CAGR through to 2026, as UK EV sales ramp-up prior to an anticipated 2030 ICE ban. Overall power demand from EVs is set to grow dramatically at a rate of 52% CAGR 2020-26, linked to EV parc growth, reaching nearly 14TWh of annual demand by 2026. Good Energy is perfectly placed to capitalise, through our investment in Zap-Map and EV services and products.
Zap-Map, the UK's leading EV mapping platform continues to perform strongly with positive trends on recurring revenue subscriptions, further rollout of Zap-Pay with key chargepoint operators and a pipeline of products for the remainder of 2021. Good Energy has reinforced its desire to partake in upcoming fundraising activities for Zap-Map to build on the market opportunity and accelerate growth ambitions.
Dividend
The Board of Good Energy Group PLC is pleased to re-start the dividend and to announce an interim dividend of 0.75p per ordinary share for the period to 30 June 2021, as set out in the Company's interim results released on 14 September 2021. The dividend is payable on 29 November 2021 to shareholders whose names are on the register at close of business on 22 October 2021. The shares will trade ex-dividend from 21 October 2021.
The Directors have decided to continue to offer shareholders the opportunity to receive dividends in the form of new shares in the Company as an alternative to a cash dividend payment. *
Outlook
Despite the short-term volatility in UK energy markets, the long-term growth drivers, particularly in the EV market, remain buoyant. We continue to expect a full-year financial performance in line with the Board's expectations, assuming normalised consumption and weather for the remainder of the year, representing another year of good financial progress and delivery of our core strategic goals.
 
Nigel Pocklington, Chief Executive Officer of Good Energy, said:
"Despite the recent volatility in wholesale energy prices, we remain positive on the long-term opportunity in our chosen markets. Recent electric vehicle sales data proves the acceleration of adoption and reinforces the scale of opportunity for Good Energy in this market.
"Zap-Map continues to have an exciting future as the leading EV mapping platform. We look forward to continuing to invest in the EV market and supporting Zap on the next stage of its journey.
"The challenges within the UK energy sector have been well documented, but - with 20 years' experience - we remain differentiated through strong governance, a prudent approach to risk management and a genuinely differentiated green product.
"Now that Ecotricity's cash offer has lapsed, I am pleased to be re-starting the dividend for our loyal shareholders. We reiterated our intention to resume the dividend this year and intend to maintain a progressive dividend policy. This evidences our continued commitment to all our stakeholders and progress in delivering Good Energy's strategy."
 
Enquiries
 



Good Energy Group PLC
Nigel Pocklington, Chief Executive
Charlie Parry, Head of Investor Relations & CoSec
Luke Bigwood, Head of Communications


Email: press@goodenergy.co.uk
 




 


 




SEC Newgate UK


Email: GoodEnergy@secnewgate.co.uk




Andrew Adie


Tel: +44 (0)07970 256 512




Emma Kane


Tel: +44 (0)7876 338339




 


 




Investec Bank plc (Nominated Adviser and Joint Broker)


 




Sara Hale / Jeremy Ellis


Tel: +44 (0) 20 7597 5970




 


 




Canaccord Genuity Limited (Joint Broker)
Henry Fitzgerald - O'Connor


 
Tel: +44 (0) 20 7523 4617



 
About Good Energy www.goodenergy.co.uk
 
Good Energy is a generator and supplier of 100% renewable power and an innovator in energy services. It currently owns two wind farms, six solar farms and sources electricity from a community of 1,600 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 support UK households and businesses to generate, store and share clean power.
 
Good Energy is recognised as a leader in this market, through our green kite accreditation with the London Stock Exchange and as the only energy supplier with Gold Standard Uswitch Green Tariff Accreditation for all tariffs.
About Zap-Map  www.zap-map.com/live/
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, share updates and pay for charging on participating networks.
In the UK, Zap-Map has over 250,000 registered users and attracts more than 240,000 cross-platform users per month from a rapidly growing fleet of around 330,000 pure-EVs (Zap-Map's core user group) and 320,000 plug-in hybrids (SMMT: September 2021).
 
*Dividend and scrip dividend timetable
The Board of Good Energy Group PLC is pleased re-start the dividend and to announce an interim dividend of 0.75p per ordinary share for the period to 30 June 2021, as set out in the Company's interim results released on 14 September 2021. The dividend is payable on 29 November 2021 to shareholders whose names are on the register at close of business on 22 October 2021. The shares will trade ex-dividend from 21 October 2021.
The Directors have decided to continue to offer shareholders the opportunity to receive dividends in the form of new shares in the Company as an alternative to a cash dividend payment.
Documentation setting out full details of the scrip dividend scheme will be sent to all shareholders on or around 14 October 2021 and can be viewed on the website at https://group.goodenergy.co.uk/investor-centre/dividend-and-scrip-information/.
To participate in the scrip dividend scheme for the 2021 interim dividend, shareholders who have not yet lodged election forms must do so by 4pm on 5 November 2021. Shareholders need not take any further action if they have already elected to participate in the scrip dividend scheme or receive their dividend in cash and would like to continue to do so.
The reference price of the scrip shares in respect of the dividend will be calculated and published on or around 28 October 2021.
The timetable for the operation of the scrip dividend scheme in respect of the 2021 interim dividend is set out below.
 

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