REG - Good Energy Group - Un-audited Results for 12 months ended 31 Dec 2021

Good EnergyAnnouncement

29/03/2022 07:00

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RNS Number : 3130G  Good Energy Group PLC  29 March 2022

Good Energy Group PLC ("Good Energy" or "the Company")

Un-audited preliminary results for the 12 months ended 31 December 2021

 

Resilient financial performance and platform to accelerate strategy

Good Energy, the 100% renewable electricity supplier and innovative energy
services provider, today announces its preliminary results for the twelve
months ended 31 December 2021.

 

Financial highlights - continuing operations

 

·    The Company is now substantially debt free with a strong cash
position

·    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 provide a balance of growth capital and buffer to
volatile wholesale energy market. The Company navigated 2021 successfully
where 60% of suppliers failed.

·    A resilient financial performance, despite significant pressure from
commodity markets and low wind levels

·    Revenue increased 11.8% to £146.0m (FY 20: £130.6m) driven by
significant price rises throughout the year in response to rising wholesale
costs.

·    Gross profit decreased by 8.6% to £27.0m (FY 2020: £29.6m) with a
gross profit margin of 18.5% (FY 2020: 22.6%). This was driven by an
unprecedented energy crisis and quadrupling of the wholesale market price.
Cash generated from operations reduced 66% to £3.9m.

·    Underlying profit before tax of £2.6m (FY 2020: profit £0.5m).
Reported profit before tax of £1.8m included non-underlying income of £0.8m
associated with generation debt restructuring.

·    Reported loss for the period of £4.1m includes a £5.7m reduction in
relation to discontinued activities and the sale of the generation assets.
Driven by accounting treatment as a result of the disposal of generation
portfolio assets in January 2022.

·    Reported loss per share of 21.8p (FY 20: 0.9p). Basic earnings per
share from continuing operations increased to 13.2p (FY 20: 0.9p).

·    Given the generation assets sale and strong cash position, the Board
has proposed a final dividend of 1.8p, leading to a full year dividend of
2.55p.

·    Going forwards, the Company will shift its capital allocation towards
growth and investment, whilst maintaining a strong balance sheet as a buffer
to volatile wholesale energy markets.

 

Operational highlights

·    Good Energy has delivered a resilient performance throughout 2021
with continued investment across the business supporting the journey to a
zero-carbon Britain.

·    Smart meter rollout progressing well, despite impact from COVID
restrictions. Demand and installation numbers improved as lockdown
restrictions eased and in line with expectations. Over 30,000 smart meters
installed to date, with almost 22,000 installed in 2021 in line with
expectations.

·    Two market leading billing platforms integrated. Kraken and Ensek
offer an enhanced digital service for customers, with 100% of customers now
migrated successfully on both platforms.

·    Resilient business practices offer stability in the face of wholesale
market pressures.  We remain well hedged for summer 2022 and plan to increase
incrementally hedging for winter 2022.

 

·    The Company's ongoing derogation from the domestic SVT price cap
provides a degree of pricing flexibility to support the Company's 100%
renewable stance.

·    Zap-Map has continued to make strong progress with the development of
several new commercial products. Ready to scale on completion of current
funding round.

·    Zap-Map registered users increased 125% to 350,000, reflecting strong
growth in electric vehicle uptake in 2021. 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.

·    Zap-Pay rollout continuing at pace, with nine charge point operators
and 25% of the rapid charging market signed to date.

·    Subscription service launched in June 2021. Good levels of customer
conversion experienced particularly from new EV drivers.

·    Richard Bourne appointed CEO, leading the execution of Zap-Map's
strategy, including the on-going development of its core products and
international expansion.

·    Fleet service EV fuel card with Fleetcor UK (Allstar Business
solutions) launched in March 2022.

·    Good Energy confirms its intention to participate in Zap Map's
current Series A funding round, with process due to complete in the next
quarter.

·    Customer numbers increased in 2021 across all categories of the
business.

·    Overall Good Energy customer numbers increased by 2.1% to 277.3k.

·    Domestic customers increased 1.1% to 85.8k.

·    Business customers increased 20.1% to 11.3k.

·    Feed in tariff (FiT) customers increased 1.4% to 180.3k.

·    Zap-Map total registered users increased 125% to 350,000 (Dec 21:
155.5k users).

Outlook Highlights

 

·    Launching ambition to support one million homes and businesses to cut
carbon from their energy use and transport by 2025.

·    Following the sale of the generation assets in January 2022, the
Company is well positioned to invest for future growth and to withstand
current volatility wholesale energy markets.

·    Substantially debt free with a strong cash position of £19.6m as at
the end of February 2022.

·    Continuing to invest for growth across the business by building a
platform for energy services in decentralised energy. Further investment into
Zap-Map planned, building out a strong mobility offering.

 

Nigel Pocklington, Chief Executive Officer of Good Energy, said:

"In December, I called the high cost of energy a national crisis. This has
been exacerbated by Russia's aggression against Ukraine. Whilst renewables
should play a vital role in our long-term energy strategy, only the Government
can bring short term respite. The response to date has been inadequate, and
further support will undoubtedly be needed.

"In 2021, 28 energy supply companies failed, hitting customers' bills and
their trust in the industry. This was the result of both poor business
practices and the UK's continued reliance on volatile global fossil fuel
markets. There has never been a greater need for clean energy products from a
reliable, real renewable, trusted company.

"Today we announce our ambition to support one million homes and businesses
cut carbon from their energy and transport use by 2025. We are making it
simple to generate, share, store, use and travel by clean power by continuing
to invest in products, services and businesses that help customers play an
active role in the energy transition.

"Following the sale of our generation portfolio, we are now a substantially
debt free business with a strong balance sheet. We will continue to invest for
the future, including in Zap-Map to accelerate the transition to electric
vehicles. Following a resilient performance in 2021 despite significant market
challenges, we're focused on delivering on our exciting, new strategy -
helping customers cut carbon, and supporting the growth of renewable
generation at a time it 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

 Luke Bigwood, Director of External Affairs

 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)
 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

 

Analyst Briefing:

A briefing for Analysts will be held at 9:30am today at SEC Newgate, 14
Greville Street, London EC1N 8SB and via web conferencing. Analysts wishing
to join should contact investor.relations@goodenergy.co.uk
(mailto:investor.relations@goodenergy.co.uk) .

 

Investor Presentation

Nigel Pocklington, CEO, and Rupert Sanderson, CFO, will provide a live
presentation via the Investor Meet Company platform on 29 March 2022 at 2:00pm
GMT.

Investors can sign up to Investor Meet Company for free and add to meet GOOD
ENERGY GROUP PLC via:

https://www.investormeetcompany.com/good-energy-group-plc/register-investor
(https://www.investormeetcompany.com/good-energy-group-plc/register-investor)

Investors who already follow GOOD ENERGY GROUP PLC on the Investor Meet
Company platform will automatically be invited.

 

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 1,900
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 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 (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 350,000 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 200,000 EV drivers use Zap-Map each month
out of an EV parc of 410,000 (SMMT Jan 2022).

 

 

Chair's review

Overview

I opened my statement in our 2020 Annual Report by remarking on the
historically tumultuous prior year we had witnessed. 2021 certainly sustained
that theme, with the continuation of a global pandemic and national lockdowns
leading into major disruption for energy.

Geopolitical tensions, including the unfolding and tragic Russian aggression
against Ukraine, sent global gas market prices surging upwards to record high
levels, taking power prices with them. In late 2021 this was exacerbated by a
perfect storm of conditions, ironically including low wind speeds, alongside
nuclear outages, which followed on to multiple energy supplier failures.

It was a storm Good Energy did well to weather successfully, due to our
prudent hedging and buying power well in advance from our renewable generators
- our decentralised model.

Despite these extraordinarily challenging market conditions, we had a good
operational performance in 2021 and continued the delivery of our strategy
hitting several key milestones. We were able to make tangible investments into
that strategy - making it simple for all to generate, share, store, use and
travel with clean power.

Towards the end of the year we announced the sale of our generation portfolio.
This transformational sale has now completed, leaving Good Energy a
substantially debt free company.

Market challenges

The scale of the energy crisis in 2021 was unprecedented. Wholesale power
prices quadrupled, and we saw 28 energy suppliers exit the market.

It is a crisis that is not abating soon, stoked further by Russia's appalling
actions in Ukraine. Coupled with inflation, which was at a 30 year high at the
end of the year, as well as rising food and fuel costs, we are now firmly in
the midst of a full scale cost of living crisis.

The UK government has announced a suite of actions to address rising energy
bills, and it is inarguable that intervention is required at this time.

Ultimately however, this can only provide relief in the short-term. The
long-term solution remains investment in renewable technologies and a shift to
a greener energy system. With fewer suppliers in the market, this leaves
greater scope for prudent operators like Good Energy to continue driving
innovation across the sector.

Strategic developments

Our decision to sell our generation portfolio allows us to redeploy capital
from our past to invest in our future and leaves us in a strong cash position
despite continued market volatility.

Looking ahead, our first focus will be on decentralised energy. Always a core
part of Good Energy's business, we will be giving it renewed focus, building
new propositions for customers to generate their own clean power in their
homes and businesses.

Hand in hand with this is mobility. EVs are expected to see 47% annual growth
through to 2026. Good Energy's subsidiary Zap-Map enjoys a leading position
with over 70% share of a rapidly growing EV driver market in the UK. 2021 saw
several strategic developments here too, with the launch of paid
subscriptions, several key payment platform partners and a partnership with
leading fleet operator Fleetcor. We intend to invest further in the business's
future.

All of this must be underpinned by strong digital services and operations.
Nigel Pocklington, who became Good Energy's new CEO in May 2021, was appointed
for this reason. His previous leadership positions with digital platform
businesses including Moneysupermarket Group and Expedia positions him
perfectly to develop and execute our strategy.

Good Energy Bonds

Following the successful restructuring of the financing on our renewable
generation asset portfolio, we were in a strong cash position to repay 70% of
the second Good Energy Bond which took place in June 2021. We will consider
all relevant funding sources when appropriate for further repayment.

Dividend and capital allocation policy

Alongside our ongoing investments, we aim to deliver a dividend where
appropriate, as part of our growth strategy and revised capital allocation
policy. The policy has the objective of investing both organically and
inorganically across the business and paying a dividend when appropriate to
provide an overall return to shareholders. We remain mindful of maintaining
and balancing the ability to invest in long term growth opportunities.

Following a good operational performance in 2021, the sale of the generation
portfolio and reflecting our confidence in the ongoing business, the Board
recommend a final dividend for 2021 of 1.8p per ordinary share, taking our
full year dividend to 2.55p.

Good Energy's scrip dividend scheme continues to operate, and the Board will
confirm the payment timetable and final dividend in the coming weeks,
alongside circulating the Notice of AGM.

Looking ahead

It is difficult to overstate the volatility of the energy market currently.
However, Good Energy is well positioned both from a shorter-term balance sheet
perspective, but also from a longer-term strategic growth perspective. The
climate crisis already provided urgency to transition to a clean energy
system. The current turmoil provides geopolitical urgency to achieve greater
energy independence, too.

This, coupled with a substantially different looking energy supplier market,
leaves Good Energy with a more powerful role than ever to play in accelerating
the transition to renewables.

Will Whitehorn

Chairman

 

 

CEO review

Overview

Good Energy's mission has always been linked to a crisis - climate change. We
now find ourselves in the forefront of a second one, the cost of energy.
Well before Russia's attack on Ukraine, we had already seen the impact of
sharply rising gas prices, causing first supplier failure and then
unprecedented increases in costs to the consumer.

In September, my summary of the first half of 2021 was that the business had
made a strong start to the year, both financially, and in delivering against
some key strategic objectives. Our financial performance showed very clear
recovery from the comparable period - which was heavily hit by the first COVID
lockdown. That performance, along with the balance sheet improvements we
announced at our full year results earlier in the year meant that we announced
a resumption of the dividend.

In terms of strategy, I was able to point to several significant milestones
passed in our development of mobility and energy as a service - marrying
digital platforms to help consumers and businesses adopt green energy and
consume it intelligently. We also spoke about the growth of Zap Map, new
tariffs for EV drivers, progress in rolling out smart meters - a key enabler,
and about our plans for our customers who generate as well as consume
power.

In the second half of the year, we've seen largely unprecedented and
structural changes to the UK energy landscape. However, I am proud of the way
our business has reacted to these events.

Despite rising wholesale prices, a raft of suppliers exiting the market and
significant operational changes we have continued to operate successfully. We
had a challenging December, with record low wind levels and record highs in
wholesale electricity and gas prices. Throughout the crisis we have used our
flexibility to set appropriate prices, and improved cash collection
capabilities and systems, to mitigate the impact on our business and our
management of working capital.

We have since seen some measures announced by Government for the protection of
customers' bills, including its £200 Energy Bills Rebate scheme. In the
Chancellor's most recent Spring Statement we also saw VAT scrapped for energy
efficiency measures such as solar panels, heat pumps or insulation. Whilst not
likely to help the most vulnerable customers in the short term, this is a
welcome move which aligns well with Good Energy's strategy.

Having announced our intention to sell our generations assets, we completed
this transformational transaction in January 2022. This was a landmark moment
for Good Energy. Whilst we celebrate our history and impact on growing
renewable energy in the UK, we are moving forwards. We are using the proceeds
from our past to invest in our future.

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 am very aware of the impact of high energy costs on
society and the economy, and we will look to reduce this where we can, as soon
as we are able. The longer term need 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.

Shareholder support

I would like to place on record my sincere thanks to Good Energy's
shareholders for their consistent support both through the energy market
crisis and the unwanted and hostile takeover bid we saw in the first months of
my tenure.

As a listed business, we routinely provide detailed levels of disclosure on a
wide range of topics. As a purpose driven business, transparency and trust is
even more important. The strong support we received in recent shareholder
actions, really demonstrate to me that we have an engaged, loyal and
supportive shareholder base. I'm excited about the future of this business and
look forward to delivering on our exciting digital first strategy as part of
the next wave of the energy market transition.

Green accreditation

We continue to raise awareness for customers to make a clean energy choice,
enabling direct impact on the transition to a zero-carbon future.

In March 2021, we became the first energy supplier to have all of our standard
variable and fixed tariffs accredited as Uswitch Green Tariff Gold Standard.
The comparison and switching service's independent panel judged our
electricity and gas tariffs to be 'market leading in their environmental
credentials'.

In October 2021 we topped Which? magazine's new league table about the
sustainability of energy suppliers. This resulted in us being awarded an Eco
Provider badge after a lengthy research process, which saw us come top out of
over 40 energy companies, many of which have now exited the market. This
validates the unique work we have been doing to support renewables for over 20
years.

We attended COP26 in November and our secondary school-aged Good Future Board
attended COY16, a precursor to COP26 to input youth voices into negotiations.
We continue to push for meaningful change across this industry.

 

Purpose and strategic vision

Today we launch a bold vision for the coming years. Our ambition is to support
one million homes and businesses cut carbon from their energy and transport
used by 2025.

Our mission remains as it always has. To power a cleaner, greener world. We
make 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.

 

Energy supply market context

Despite our clear strategic direction, the current energy market volatility
has caused us to pause some of our more acquisitive customer ambitions in the
short term.

In 2021, we saw the trend of consolidation continue in the energy supply
market. In total, 28 firms collapsed throughout the year. Whilst many were
victims of circumstance, a great deal were poorly run, unhedged businesses
which will lead to the taxpayer and customers, footing the bill.

As a result, in February 2022 we saw the price cap increase by a staggering
54% to £1,971. Expectations are that this will rise further throughout the
year, given continued elevated wholesale prices.

The devastating war in Ukraine is a stark, but horrifying, reminder of the
need for scaling up renewable energy and services, which the UK can and should
be at the forefront of.

Before this event, we had already seen prices quadruple throughout 2021.
Despite initial abatement in early 2022, the war in Ukraine and associated
geopolitical nervousness has seen prices increase further. Electricity
increased 472% and gas increased 752% year on year (March 2022 vs March 2021).

We are not immune from this energy crisis, which has affected everyone from
consumers to suppliers, regulators, and government.

In November 2021, we highlighted the impact of incurring additional commodity
costs from a higher number of business and domestic customers than expected.
We expected this to continue into the first quarter of 2022and this has indeed
been borne out.

In December 2021, we outlined that the elevated wholesale prices and record
low wind levels would lead to an adverse impact to our full year results by
approximately £3m. Electricity prices increased 36% in December alone, whilst
wind output was materially below seasonal norms.

Despite this impact, we have continued to mitigate against these risks where
possible.

·    Our ongoing derogation from the price cap provides us with a degree
of pricing flexibility, recognising our commitment to 100% renewables and the
associated cost of delivering this service.

·    To absorb some of the higher input costs, we announced a second
domestic SVT price rise of 30% to be effective from 17 January 2022.

·    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, given our exemption from the price cap.

·    We expect prices to stabilise, albeit it at a significantly higher
level, throughout 2022 and 2023.

·    We remain well hedged for summer 2022 and plan to incrementally
increase hedging for winter 2022.

 

More recent events have heightened market volatility. The escalating crisis
between Russia and Ukraine has caused significant short-term spikes in price
since 21 February 2022. In early March, the price of gas spiked over
£8.00/therm.

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 anticipate that the days of low prices and aggressive price competition 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, products and services. We
are well aligned with this change in market focus and are well placed to
prosper.

 

Strategic update - investing for growth

Renewable supply

Our focus is to provide fair priced, transparent, 100% renewable electricity.

We are different as we source 100% renewable electricity from over 1,900
independent generators across Britain. As of January 2022, our fuel mix was
49% wind, 33% biogen, 14% solar and 4% hydro.

We exist to give our customers the ability to generate their own power, not
just buy ours. To do this, we have a clear strategy for a growing market in
decentralised, digitised clean energy and transport services based on 100%
'real' renewable power. We are already successfully delivering on this
strategy, as shown in our integration of new digital customer service
platforms for home and business customers and launch of innovative new tariffs
for electric vehicle (EV) drivers.

Real renewable electricity

Good Energy has supplied 100% renewable electricity for over 20 years,
sourcing power directly from renewable generators and not using regulatory
loopholes to 'greenwash' with certificates.

Today we are:

·    Differentiated as a UK supplier backing all electricity supply, both
business and domestic, with long-term contracts with renewable generators.

·    The only UK supplier with the Uswitch Green Tariff Gold Standard
accreditation for all its tariffs.

Excellent customer service

We have successfully embedded new digital customer service platforms for home
and business customers. These investments have delivered consistently high
customer satisfaction ratings and helped to bring our prices down:

·    The Kraken customer service platform, from Octopus Energy Group, is
scalable and more efficient. It enables us to easily launch new "smart" and
"agile" tariffs.

·    100% of domestic supply customers have been migrated to the Kraken
platform.

·    We have an 'excellent' 4.5* rating from customers on Trustpilot.

 

·    We partnered with one of the leading software suppliers to UK energy,
Ensek, to install a slicker, digital billing system for our business
customers. 100% of our business customers have now been moved to the Ensek
platform, enabling improved services and efficiencies through self-service.

·    We have now managed through some short-term migration issues, and
this has helped to drive record cash collections in recent months.

Digital services

Our new customer service platforms form one of the building blocks towards
digitising our business. Others include:

·    The appointment of our new Chief Executive Officer, Nigel
Pocklington, who joins from Moneysupermarket Group with a wealth of experience
in digital led, customer-centric businesses.

·    Our controlling stake in the UK's leading app in electric transport,
Zap-Map, which has over 350,000 registered users, and over 95% of the UK's
public charging points on its network. Over 70% of the UK's EV drivers have
downloaded Zap-Map.

·    Our existing 180,000 energy services customers for whom we operate as
Feed-in Tariff  administrator.

·    Our smart meter rollout is on track with over 22,000 installed in
2021 and almost 30,000 total installations to date.

 

As part of an ever-increasing digital offering, we are turning sustainability
into an engaging digital experience. We continue to evolve our digital
offering to introduce new customer touch points and cross-sell opportunities.
These improved digital tools are aimed at lowering cost to serve and improving
our monthly average users.

In late 2021 we released an automation to our feed in tariff (FiT) meter
reading capabilities. In Q4 2021, we saw a 50% reduction in the number of
manual meter reads required on FiT tariff submissions by customers. This
improves both the customers experience, as well as the time required to
services these customers effectively.

We are continuing to roll out improvements across our app, portal and customer
journey. Alongside these digital improvements will be an increasing number of
collaborative referral partners helping to drive cross sell opportunities for
more engaged customers.

Energy trading

One of the features that separates us versus other energy suppliers is our
in-house trading capabilities. We have a history of implementing a robust
hedging policy.

These trading capabilities have become of increasing importance in an energy
market as volatile as we have seen recently. We remain well hedged for summer
2022 and plan to incrementally increase hedging for winter 2022.

In October 2021, we partnered with Barrow Green Gas ("Barrow") for shipping
services. The agreement ensured continuity for our gas customers and builds on
our longstanding relationship with Barrow. This ensured continuity of supply
for our gas customers following the market exit of CNG. Looking ahead, our
extensive experience in trading renewable electricity alongside our existing
array of counterparty relationships means we are well placed to become our own
gas shipper, and Barrow is an ideal partner for that journey.

The implementation of both Kraken and Ensek act as foundations for further
trading optimisation as we continue to develop further energy services.
Particularly focused on half hourly settlement, more agile smart tariffs and
an increased focus on accessing revenue streams from the flexibility
markets.

Decentralised energy

Services to generate, store, consume and share your own power.

Services

We will help people optimise their energy and be as efficient as possible,
through a range of options. We are aiming to evolve into a trusted portal on
how to go green, to help people make the best choice for them.

Alongside our own products, we will use referrals to build a network of
services for customers. We want to be trusted and increase the length of
relationships with our customers. We have a committed and motivated green
customer base and increasingly see this business as a referral engine for
further products and services for the right customers. Almost half of our
existing feed in tariff customers were referred by solar installers.

We are actively investing in services and businesses that can accelerate our
offering.

Feed in tariff

We are one of the UK's leading FiT providers. As of December 2021, 65% of our
meter points were feed in tariff customers. We have a 93% satisfaction rating,
with customers overwhelmingly positive about their experience. We have built
and demonstrated capabilities to deliver a valuable administrative service to
solar customers. We believe that this presents several opportunities in
similar markets.

We see several cross-sell opportunities to existing and new customers.
Currently, only 7% of FiT customers are also domestic supply customers. We are
actively investing in propositions to provide additional value for this
customer base, such as our smart export programme and referral partner offers
in EV charging, battery storage and heat pumps.

Whilst the feed in tariff is closed to new entrants, The UK rooftop solar
sector is booming, as homes and businesses turn to solar to mitigate the
impact of the energy price crisis. This reflects homeowner, business, and
investor confidence. Solar PV capacity installations increased 36% in 2021 to
730MW.

This provides clean, affordable energy that reduces dependency on fossil
fuels, while installation of on-site solar protects against wholesale price
volatility. Self-generation reduces cost and increases certainty. There is a
clear opportunity to tie renewable supply alongside solar generation, EV
charging and battery storage.

Smart export payments

We have continued to develop new offerings for solar customers. Our smart
export solution pays users for what they export as opposed to deemed rates.
This could provide customers with high export a significant increased income,
ideal for homes who generate more than they are able to use, or who can shift
load effectively.

By paying customers for what they export, we can reward customer for making
the grid greener. The more electricity the customer sends to the grid, the
more they get paid.

In line with our proven capabilities of managing feed in tariff
administration, our platform allows us to make it easy to claim from OFGEM,
whilst we make a fee for each MWh our customer's export. Helping to build
longer, recurring revenue streams.

Partners

We are building a strong network of partners and plan to use referrals to
build a network of products for our customers. In these new markets we need to
be fast, flexible and responsive whilst focusing on partnerships that will
elevate our core offering for customers. We focus on the customer needs of the
future and how we make customers feel.

Initial results from our partnership with Caplor energy are extremely
positive, reinforcing the view that there is significant demand for solar,
electric vehicle and battery storage solutions. Our role is to use this to
create a referral engine and develop long lasting customer relationships who
engage with an increasing number of products and services. These services will
allow us to deliver value add solutions for customers, whilst we share the
benefit through recurring revenue streams.

 

Mobility

Our ambition is to make it easier to own, drive, fuel 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;

·    Energy supply

·    Customers with increased electricity demand, powered by 100%
renewable electricity.

·    Time of use tariffs, and automated solutions to help save money and
be green

 

·    Services

·    Zap-Map providing leading services for all electric vehicle users,
both consumer and fleet.

·    Help drivers search, plan, drive and pay.

 

·    Charging infrastructure

·    Partner with charging asset providers, for public and home charging
solutions.

·    Payment integrations to remove barriers to adoption

 

·    Electric vehicles

·    Partner with car manufacturers as EV adoption increases, driving an
increased awareness of energy services

·    Working with car purchase, leasing and subscription offerings

We are building a strong network of partnerships for our customers throughout
this ecosystem. Our focus is on the energy supply and services, whilst
partners will provide more capital-intensive solutions to infrastructure and
access to electric vehicles.

In 2021 we released our EV tariff, Green Driver. We also trialled more
innovative time of use tariffs, including those with free energy periods.
Customer feedback was clear. Longer off-peak windows were preferable, and we
are still early in the journey of automated optimisation on more complex
tariffs.

Time of use tariffs demonstrated that customers shifted 43% of load off peak,
when incentivised with lower off peak rates. More automated solutions allow
for an even greater amount of load to be shifted off peak, benefitting not
just the consumer, but also the grid in being able to consume renewable
electricity when it is most readily available, or when there are less
constraints on the grid. We are working on developing these automated
solutions, alongside ways for users to monetise and be rewarded for shifting
this load.

The electric vehicle is likely to be the catalyst for further decentralised
energy solutions alongside solar generation and battery storage. The
opportunity to optimise generation, consumption and export is significant in
both green and financial terms for consumers and energy suppliers.

Zap-Map

Zap-Map delivered a strong 2021 performance and our focus for 2022 is about
scaling up to capitalise on Zap-Map's market leading opportunity.

We intend to participate in the current funding round being undertaken by
Zap-Map and we remain in advanced discussions with a number of strategic
partners. Our expectation is that this will complete in early Q2 2022. This
will allow Zap-Map to embark on its next course of commercial and development
goals, which will crystallise its leading position for its market services in
the UK and initiate steps of international expansion to selected territories.

The electric vehicle (EV) market is experiencing a seismic shift with record
demand. EVs are expected to grow from 10% of new car sales in 2020 to 100% by
2030. This would represent over 27% of the total UK car parc. Throughout this
period, we expect a 92% compound annual growth rate (CAGR), with 47% growth
expected until 2026.

Zap-Map currently has over 350,000 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 125% vs December 2020.

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. There are over 20k chats
per month, 15k monthly routes planned and over 2.5k cross platform users. The
breadth and depth of the data available to EV drivers is what defines Zap-Map
as the market leader in this category.

In the past twelve months Zap-Map has launched its Zap-Map Plus and Premium
subscription services, including support for Apple CarPlay and Android Auto.
Its leading cross-network simple payment solution Zap-Pay now has nine
networks signed up with Osprey, ESB and char.gy live and new launches
including MFG EV Power and GeniePoint coming shortly. It also announced a
commercial partnership with worldwide leader in business payments Fleetcor for
integration in its Allstar fleet payment platform.

In March 2022, Richard Bourne was appointed as permanent CEO. Bourne joined
Zap-Map in January 2021 as Interim CEO, to work alongside the Zap-Map Board on
the business' long-term strategic plan.

EV driver products

Zap-Map is a digital platform which enables revenue streams form both
consumers and businesses. With the app as a core offering, they have developed
a range of products across consumers, fleet and business that leverage their
position at the centre of the EV charging market.

Subscriptions

Recurring revenue streams from solving the specific needs of each EV driver
segment. Providing value-add services to higher usage customers.

The core of the Zap-Map app remains free but also operates a 'freemium' model
offering value added features to simplify the driving experience. Zap-plus has
smarter search with enhanced filters and save options, while Zap-premium ads
in-car integration with Apple Car-Play and Android Auto.

Since its launch in July 2021, subscriptions have been growing and have seen
good levels of initial conversion, particularly with new drivers. The ambition
is to have 10% of the userbase as paid subscribers by 2026, which is supported
by the experience of other consumer facing freemium models.

For fleet offerings, Zap-Map are launching a co-branded free fleet payment app
alongside Allstar business solutions (Fleetcor UK) in Q1 2022. Zap-pro will
add to the premium feature set with enhanced route planning and fleet
dashboard and reporting functionality.

Zap-Pay

An interoperable payment solution with multiple charging networks accessed
with one simple payment method.

For EV drivers, this provides cross-network in app payment, removing the
complexity of the fragmented UK charging network. For a user there is a
superior experience to contactless payment, with real time charging updates
and expense management and history provided.

To date, there are three networks live on Zap-Pay, with nine due live by the
end of April 2022. Currently this provides a c. 15% coverage of the total UK
charging network, with 25% coverage of ultra / rapid chargers. Good progress
is being made signing up new charge point operators, with an ambition scale
this up significantly by the end of 2022. Utilisation of the Zap-Pay network
continues to grow providing increased driver behaviour insights.

For charge point operators, they are able to promote their network to the
Zap-Map user base, which is a low-cost alternative to contactless. There is a
clear standards-based integration, control of pricing and terms and
conditions, as well as monthly driver behaviour insights which contactless
payment is unable to provide. This data allows charge point operators to
better understand their customer base and refine services.

Zap-Pay fleet solution

For fleet drivers, Zap-Map have partnered with the UK's number one fuel card
service provider, Allstar (Fleetcor UK). This co-branded app allows drivers to
search and pay for charging across multiple charge point operator networks. It
delivers aggregated monthly billing to fleet managers, with no driver expense
management. Simplifying the user experience and removing barriers to fleet
adoption of electric vehicles. Allstar will also be reselling the Zap-pro
subscriptions to provide enhanced fleet-oriented services to drivers.

Summary

The ongoing impact of COVID-19 coupled with a national energy crisis mean that
2021 is a year that many are unlikely to forget.

However, we have navigated our way through these challenges and are well
positioned to deliver on our mission. Powering a cleaner, greener world.

We are using the capital from our past to invest in our future across a range
of new technologies, services and businesses. Whilst the upcoming investment
into Zap-Map will further help to accelerate the adoption of electric
vehicles.

We are a substantially debt free company with a strong balance sheet, primed
to capitalise on increasingly favourable market dynamics, as we emerge from
the current market volatility.

I would like to thank my Good Energy colleagues for their hard work, and our
customers and shareholders for their support in 2021. We remain excited for
what the future holds.

 

OPERATING REVIEW

Wholesale energy market conditions

Power prices

The development of power prices in the last 18 months has been significant
following COVID impacts, and dramatic in the last 6 months with average
electricity and gas prices 36% and 35% higher in December than November.

Since we entered 2021 prices have continued to escalate reaching as high as
£500/MWh in December 2021.

Weather conditions in 2021 impacted volumes with sustained low wind seen
through 2021 and especially in December 2021. There was sustained low wind in
2021, up to 33% below seasonal norms. The impact of this was seen clearly with
UK onshore wind output down 24% (Q1-Q3 2021 vs Q1-Q3 2020) despite a 2%
increase in installed capacity.

Our revenues are sensitive to changes in the demand for electricity and gas.
As the pandemic has progressed, markets and businesses have adapted to cope
with COVID and we have seen business demand recover materially, with SME
business supply volumes up 17% and HH volumes up 20% in 2021 vs 2020.

Overall supply volumes were up 10%, partly driven by average temperatures
which were 1.7 degrees lower in the first half of 2021 (vs 2020), and 0.5
degrees lower across the full year (vs 2020); and partly by COVID recovery.
The impact of colder weather meant gas supply volume increased from 486GWh in
2020 to 512GWh in 2021.

Our renewable supply business

Cash collections

Significant rise in cash collections in Q4 driven by the fully implemented
Kraken customer services platform and standard variable tariff ("SVT") price
rises for both Domestic and SME customers, high supply volumes via new and
extended business contracts and resolving teething issues with the business
billing system (Ensek) migration.

We expect significantly higher cash collections through 2022 and this is an
expectation being fulfilled in Q1 2022.

There is an increased focus on good quality business partners to ensure
future growth comes hand in hand with good collections performance.

Teething problems with the implementation of our new business billing platform
(Ensek) impacted collection during 2021, resulting in lower Q2 & Q3
collection levels.  However, in Q4 collections performance improved and the
collections deficit was substantially recovered.

Business

Total business supply customers increased by 3% to 144k. SME customers grew
the most materially up 27% and HH up 15%, which helped significantly
increase electricity supply volumes (2021: 640 GWh, 2022: 560 GWh).

Business FIT customers increased 1.7% to 132.7k, as we continue to maintain
our position as one of the market leaders in operating the feed in tariff
scheme. Total business supply customers increased by 20.1% to 144k.

Growth in business customers has underpinned our strategy in recent years, and
this planned tilting towards business provides us with greater stability
through longer term contracts and higher retention levels compared to domestic
supply. Whilst gross margins fall because of this shift, operating margins
have the potential to increase over time due to the lower cost per acquisition
and cost to serve these customers. We continue to partner with a growing
number of like-minded businesses, ranging from small, owner-managed businesses
to large corporates, providing confidence for the future.

Domestic

Total domestic customers increased by 0.9% to 133k.  Domestic FIT customers
numbers increased by 0.5% to 47.4k, whilst domestic supply customers increased
by 1.0% to 85.8k.

In the domestic supply market, 2021 saw 28 suppliers exit the market. 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 fair priced,
transparent 100% renewable electricity proposition. Elevated energy prices
will drive increasing awareness on 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. Domestic customers
numbers increased 0.5% to 47.4k and business customers increased 1.7% to
132.7k in the period.

In late 2021 we released an automation to our feed in tariff (FiT) meter
reading capabilities. In Q4 2021, we saw a 50% reduction in the number of
manual meter reads required on FiT tariff submissions by customers. This
improves both the customers experience, as well as the time required to
services these customers effectively.

Generation performance

The generation portfolio consisted of 6 solar (30.1MW) and 2 wind sites
(17.4MW). The Delabole site experienced outages following storms at the start
of the year together with some delays to parts being available from Europe as
a result of Brexit.

There was sustained low wind in 2021, up to 33% below seasonal norms. The
impact of this was seen clearly with UK onshore wind output down 24% (Q1-Q3
2021 vs Q1-Q3 2020) despite a 2% increase in installed capacity.

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 Jan 7(th), 2022, we had installed
22,00 meters delivering on our 2021 target. Total installed meters to date are
close to 30,000 meters.

 

CFO REVIEW

Overview

The Group has had a resilient financial performance despite significant
pressure from commodity markets and low wind levels, 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.

Pricing flexibility

Winter 2021/2022 commodity costs are showing significant variation due
to ongoing geopolitical impacts. However, our ability to raise Standard
Variable tariffs ("SVT") through Good Energy's ongoing derogation from
OFGEM's price cap gives good Energy a natural lever to offset these impacts
and flexibility in such volatile markets.

Following rising wholesale prices in Q4 2021, benefits from associated price
rises will flow through to working capital in 2022.

 

Financial performance

Profit and loss

Revenue increased 12% in the period to £146.0m (2020: £130.6m) driven by
growth in supply volumes (up 10%).

Cost of sales increased by 18% to £119.0m (2020: £101.1m). This impact is
net of the £6m cost of sale adjustment related to the transfer of the
generation activities to discontinued business.  Excluding this reallocation
cost of sale has increase by 24% to £126.0m.

Gross profit decreased 9% to £27.0m (2020: £29.6m). Gross margin decreased
to 18.5% (2020: 22.6%).

Administration costs excluding non-underlying administration costs decreased
5% to £23.8m (2020: £25.0m). This was primarily driven by a £0.7m reduction
in ECL provision levels compared to the prior year and smaller other
administration cost savings. Total administration costs decreased 3% to
£24.6m.

Net finance costs decreased by 86% to £0.6m driven by a combination of
significant debt reduction, including the £12m bond repayment in H1 2021, and
the transfer to discontinued activities of the generation activities.

Underlying profit before tax of £2.6m includes the impact of the cost of
sales adjustment to the transfer of generation activities. There was a £5.7m
loss from discontinued operations.

The underlying loss for the period was £3.4m and the reported loss for the
period was £4.1m (2020: £0.4m). This reflects the extraordinary market
conditions seen in 2021 a alongside the one-off impacts related to sale of the
generation business and defending a hostile takeover attempt.

Financial bridge 2020 to 2021*

2021 saw growth in supply customer numbers and a substantial recovery in
particularly business electricity supply volumes post COVID. This generated a
£2.4m positive profit impact compared to 2020

The current 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 November 2021, we highlighted the impact of incurring additional commodity
costs from a higher number of business and domestic customers than expected.
This was expected to continue into the first quarter of 2022, at sustained
high commodity prices. We have seen this play out to date. In December 2021,
we outlined that the elevated wholesale prices and record low wind levels
would lead to an adverse impact to our full year results. In aggregate the
negative profit impact through higher costs of commodity and other industry
costs led to a profit deterioration of £6m compared to the prior year.

Substantially offsetting impacts of a lower ECL provision and the increased
gross ZAPMAP loss leads to a continuing business loss before tax of £3.3m in
2021

Intra-group revenue, electricity generated by the discontinued segment
generation assets to the used within the customer supply segment of £5.9m is
eliminated as usual, however the elimination results in a lower cost of sale
within the continuing business, leading to an underlying continuing profit
before tax of £2.6m

This intra-group revenue is then removed from discontinued segment before the
operating performance of the discontinued generation segment, realising a
profit before tax of £0.5m, is added.

This then provides, at a loss of £2.8m, the most meaningful comparison with
the FY20 underlying profit of £0.5m

The impairment loss on the generation assets arises from changes in value of
the portfolio between the sale announcement date and the year end. This
incorporates estimated transaction costs (£1.0m) on the sale of the portfolio
and any change in modelled value over this period (£0.2m). The gain on the
sale of the revalued assets is offset by writing off previously capitalised
transaction and financing costs when the majority of the portfolio was first
operationally financed in 2014.

Finally non-underlying costs of £0.8m incurred track to the Company's
reported loss before tax of £5.2m.

*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
(https://group.goodenergy.co.uk/home/default.aspx) )

Cash flow and cash generation

Our business model remains cash generative. Impacts of a business billing
system migration had a working capital impact within year but has been
materially resolved by end of Q1 2022.

There was a net decrease in cash of £9.7m, which includes the repayment of
70% of Good Energy Bonds II totalling £11.9m. The resulting cash balance of
£8.9m (£6.7m continuing operations, £2.2m discontinued operations) (2020:
£18.3m) enables continued strategic investments including participation in
the Zap-Map funding round.

Cash at the end of February 2022 was £19.6m following the sale of the
generation asset portfolio.

Funding and debt

Our business is now substantially debt free on a net basis. In the period,
gross debts have reduced by 86.5% compared with year-end 2020. The gearing
ratio decreased to -7% following the sale of the generation asset portfolio in
January 2022.

Substantial progress has been made against reducing Group finance costs and
reducing the gearing ratio. The remaining Good Energy Bonds II outstanding
(£4.9m) is reported within non-current liabilities. This is due to an annual
redemption request window for bondholders in December of each year. The next
bond redemption date is 30 June 2022 with £0.2m due for repayment.

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 loss per share decreased to -21.8p (2020: 0.9p). Basic
underlying earnings per share from continuing operations increased to 13.2p
(FY 20: 0.9p).

Dividend

The Board were pleased to restart 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.

Following a good operational performance in 2021, the sale of the generation
portfolio and reflecting our confidence in the ongoing business, the Board
recommend a final dividend for 2021 of 1.8p per ordinary share, taking our
full year dividend to 2.55p.

Good Energy continues to operate a scrip dividend scheme and the payment
timetable of the final dividend will be announced alongside the notice of the
Annual General Meeting in June.

Non-underlying costs

Total non-underlying costs of £0.8m, relating primarily to corporate defence
activities against a hostile takeover approach within 2021. 2021
non-underlying costs were 69% higher than prior year (FY2021 £0.5m).

Expected Credit Loss (ECL)

ECL charge decreased 19% in the period to £3.0m (2020: £3.7m).

The main impacts in year are a faster collection of commercial debt, being
offset by increased revenue.

Zap-Map investment

2021 saw a P&L loss related to Zap-Map of £(1.0m) which increased £0.8m
from 2020, 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
£0.5m loss reflecting Good Energy's 50.1% stake in Zap-Map.

 

Events after the balance sheet

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 up to £24.5m
was comprised of initial and deferred payments.  The initial consideration
of £16.4m, less distributions since the lockbox date of £0.7m, resulted in
£15.7m being paid to the Company on completion.

The final deferred consideration payment has been agreed as follows:

£4.3m has now been paid, with a further up to £0.5m to be paid on 30 June
2022, subject to Good Energy meeting all its payment obligations up to that
date for power supplied by the Portfolio to it under the power purchase
agreements. 

The total deferred consideration is therefore agreed to be up to £4.8m.

Of the £3.3m that will not be received, £2.3m arose due to the impact of a
third-party energy yield assessment on the agreed financial model and £1m
arose during detailed technical and financial due diligence.

Total consideration received to date is therefore £20.7m, with an agreed
final total consideration of up to £21.2m by 30 June 2022.

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.

 

 

Consolidated Statement of Comprehensive Income (Unaudited)

For the year ended 31 December 2021

                                                                                2021       2020
                                                                                £'000      £'000
                                                                                Unaudited  Restated
 REVENUE                                                                        146,045    130,649
 Cost of sales                                                                  (119,019)  (101,065)
 GROSS PROFIT                                                                   27,026     29,584
 Administrative expenses                                                        (23,816)   (25,029)
 Non-underlying costs                                                           (806)      (477)

 OPERATING PROFIT                                                               2,404      4,078
 Finance income                                                                 14         109
 Finance costs                                                                  (584)      (4,172)
 Share of loss of associate                                                     -          (13)
 PROFIT BEFORE TAX                                                              1,834      2

 Taxation                                                                       (187)      19
 PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS                                 1,647      21

 DISCONTINUED OPERATIONS
 Loss from discontinued operations, after tax                                   (5,740)    -
 (LOSS)/PROFIT FOR THE PERIOD                                                   (4,093)    21

 Attributable to
 Good Energy Group PLC                                                          (3,583)    146
 NCI                                                                            (510)      (125)

 OTHER COMPREHENSIVE INCOME:
 Other comprehensive income for the year, net of tax                            (775)      13,313

 TOTAL COMPREHENSIVE INCOME FOR THE YEAR                                        (4,868)    13,334

 ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY

 Earnings per share for the year                                                (21.8)p    0.9p
    Basic
                                                                                (21.8)p    0.9p
                         Diluted

 

 Earnings per share for the                                                                        13.2p   0.9p
 year                               Basic
 (continuing                                                                                     13.0p     0.9p
 operations)
   Diluted

 

Consolidated Statement of Financial Position (Unaudited)

As at 31 December 2021

                                                             2021                  2020
                                                             £'000                 £'000
                                                             Unaudited             Restated
 ASSETS
 Non-current assets
 Property, plant and equipment                               209                   58,602
 Intangible assets                                           3,891                 4,833
 Right of use assets                                         851                   5,108
 Deferred Tax asset                                                   173          -
 Long term security deposits                                  -                    4,552
 Total non-current assets                                    5,124                 73,095

 Current assets
 Inventories                                                 7,682                 13,264
 Trade and other receivables                                 35,928                26,715
 Short term security deposits                                2,414                 698
 Cash and cash equivalents                                   6,699                 18,282
 Total current assets                                        52,723                58,959
 Held for sale assets                                        62,959                -
 TOTAL ASSETS                                                120,806               132,054

 EQUITY AND LIABILITIES
 Capital and reserves
 Called up share capital                                     840                   833
 Share premium account                                       12,790                12,790
 Employee Benefit Trust shares                               (444)                 (502)
 Retained earnings                                           3,231                 6,854
 Reserves of disposal group held for sale                    11,589                -
 Revaluation surplus                                         -                     12,472
 Total equity attributable to members of the parent company  28,006                32,447
 Non-Controlling Interests                                   (325)                 185
 Total equity                                                27,681                32,632

 Non-current liabilities
 Deferred taxation                                           -                     4,135
 Borrowings                                                  317                   53,431
 Provisions for liabilities                                  -                     1,316
 Long term financial liabilities                             -                     13
 Total non-current liabilities                               317                   58,895

 Current liabilities
 Borrowings                                                  6,867                 3,630
 Trade and other payables                                    41,253                36,897
 Total current liabilities                                   48,120                40,527
 Liabilities associated with held for sale assets            44,688                -
 Total liabilities                                           93,125                99,422
 TOTAL EQUITY AND LIABILITIES                                120,806               132,054

 

 

Consolidated Statement of Changes in Equity (Unaudited)

For the year ended 31 December 2021

                                                                               Share capital  Share premium  EBT shares  Retained earnings (Restated)  Revaluation surplus  Reserve of disposal group held for sale  Non-controlling interests  Total
                                                                               £'000          £'000          £'000       £'000                         £'000                £'000                                    £'000                      £'000
 At 1 January 2020 as previously stated                                        832            12,790         (549)       5,707                         -                    -                                        -                          18,780
 Prior year adjustment                                                         -              -              -           136                           -                    -                                                                   136
 At 1 January 2020 as restated                                                 832            12,790         (549)       5,843                         -                    -                                        -                          18,916
 Profit / (Loss) for the year                                                  -              -              -           146                           -                    -                                        (125)                      21
 Other comprehensive income for the year                                       -              -              -           -                             13,313               -                                        -                          13,313
 Total comprehensive income for the year                                       -              -              -           146                           13,313               -                                        (125)                      13,334

 Share based payments                                                          -              -              -           39                            -                    -                                        -                          39
 Exercise of options                                                           1              -              47          (15)                          -                    -                                        -                          33
 Acquisition of subsidiary                                                     -              -              -           -                             -                    -                                        310                        310
 Transfer of revaluation to retained earnings
                                                                               -              -              -           841                           (841)                                                         -                          -
 Total contributions by and distributions to owners of the parent, recognised  1              -               47         865                           (841)                -                                        310                          382
 directly in equity

 At 31 December 2020                                                           833            12,790         (502)       6,854                         12,472               -                                        185                        32,632

 At 1 January 2021                                                             833            12,790         (502)       6,854                         12,472               -                                        185                        32,632

 Loss for the year                                                             -              -              -           (3,583)                            -               -                                        (510)                      (4,093)
 Other comprehensive income for the year                                       -              -              -           (775)                            -                 -                                        -                          (775)

 Total comprehensive income for the year                                       -              -              -           (4,358)                       -                    -                                        (510)                      (4,868)
                                                                               -              -              -           (108)                         -                    -                                        -                          (108)

 Dividend Paid

 Exercise of options                                                           7              -              58          (40)                          -                    -                                        -                          25

 Transfer of revaluation to retained earnings                                  -              -              -           883                           (883)                -                                        -                          -
 Discontinued Operations                                                       -              -              -           -                             (11,589)             11,589                                   -                          -
 Total contributions by and distributions to owners of the parent, recognised  7              -              58          735                           (12,472)             11,589                                   -                          (83)
 directly in equity
 At 31 December 2021

                                                                               840            12,790         (444)       3,231                         -                    11,589                                   (325)                      27,681

 

 

Consolidated Statement of Cash Flows (Unaudited)

For the year ended 31 December 2021

                                                        2021          2020
                                                        £'000         £'000
                                                        Unaudited     Audited

                                                                      Restated
 Cash flows from operating activities
 Cash generated from operations                         3,898         11,425
 Finance income                                         620           19
 Finance cost                                           (2,902)       (3,735)
 Income tax received                                    -             66
 Net cash flows generated from operating activities     1,616         7,775

 Cash flows from investing activities
 Purchase of property, plant and equipment              (248)         (4)
 Purchase of intangible fixed assets                    (760)         (473)
 Transfers from/(to) security deposits                  1,971         (228)
 Acquisition of a subsidiary, net of cash acquired        -           107

 Net cash flows used in investing activities            963           (598)

 Cash flows from financing activities
 Payments of dividends                                  (108)         -
 Proceeds from borrowings                                   6,786     -
 Repayment of borrowings                                (18,076)      (2,184)
 Capital repayments of leases                           (616)         (411)
 Proceeds from exercise of share options                26            33
 Net cash flows used in financing activities            (11,988)      (2,562)

 Net (decrease)/increase in cash and cash equivalents   (9,408)       4,615
 Cash and cash equivalents at beginning of year         18,282        13,667
 Cash and cash equivalents at end of year               8,874         18,282

 Represented by:
 Cash and cash equivalents for discontinued operations  2,175         -
 Cash and cash equivalents for continuing operations    6,699         18,282

 

 

 

Notes to the Financial Information (Unaudited)

For the year ended 31 December 2021

1.  Basis of Preparation

Good Energy Group PLC is an AIM listed company, incorporated in England and
Wales and domiciled in the United Kingdom, under the Companies Act 2006.

 

The principal activity of Good Energy Group PLC is that of a holding and
management company to the Group. More detailed information on the Group's
activities is set out in the Chairman's statement, the Chief Executive's
review and the Finance Director's review.

 

The unaudited Preliminary Report has been prepared under the historical cost
convention and in accordance with International Financial Reporting Standards
("IFRS") and interpretations in issue at 31 December 2021.

 

The Preliminary Report was approved by the Approvals Committee and the Audit
Committee and adopted by the Board of Directors. The Preliminary Report does
not constitute statutory financial statements within the meaning of section
434 of the Companies Act 2006 and has not been audited.

 

On 24 November 2021, the Group publicly announced the decision of its Board of
Directors to sell the Good Energy Holding Company No. 1 Limited group
including its wholly owned subsidiaries ("GEGAN

group"). The sale of the GEGAN group was completed on 19 January 2022. At 31
December 2021 the GEGAN group was classified as a disposal group held for sale
and as a discontinued operation. The business of GEGAN group represented the
entirety of the Group's Electricity Generation operating segment until 24
November 2021. With GEGAN group being classified as discontinued operations,
the Electricity Generation segment is no longer presented in the segment note.

 

The prior year has been restated for:

 

·    The elimination of internally generated Renewable Obligation
Certificates (ROCs). This has the impact of reducing inventory by £1,361k and
reducing trade and other payable by the same value.

 

·    Adjustments to the treatment of leases under IFRS 16 being the
removal of future lease payment increases where the increase is determined by
a future index rate, as a result of a prior year adjustment noted by the
Group's new auditors. This has the impact of increasing retained earnings by
£220k, decreasing right of use (RoU) asset by £816k, decreasing current
short-term financial liabilities by £3k and decreasing long-term financial
liabilities by £1,033k.

 

The accounting policies adopted, other than as documented above, are
consistent with those of the annual financial statements for the year ended 31
December 2020, as described in those financial statements.

 

The Preliminary Report is presented in pounds sterling because that is the
currency of the primary economic environment in which the Group operates.

 

The Preliminary Report will be announced to all shareholders on the London
Stock Exchange and published on the Group's website on 29(th) March 2022 .
Copies will be available to members of the public upon application to the
Company Secretary at Good Energy, Monkton Park Offices, Monkton Park,
Chippenham, Wiltshire, United Kingdom, SN15 1GH.

 

2. Segmental Analysis

 

The chief operating decision-maker has been identified as the Board of
Directors (the 'Board'). The Board reviews the Group's internal reporting in
order to assess performance and allocate resources. Management has determined
the operating segments based on these reports. The Board considers the
business from a business class perspective, with each of the main trading
subsidiaries accounting for each of the business classes. The main segments
are:

·    Supply companies (including electricity supply, FiT administration
and gas supply);

·    Electricity generation companies (including wind and solar generation
companies);

·    Energy as a service (including Zap-map and nextgreencar.com)

·    Holding companies, being the activity of Good Energy Group PLC.

 

The Board assesses the performance of the operating segments based primarily
on summary financial information, extracts of which are reproduced below. An
analysis of profit and loss, assets and liabilities and additions to
non-current assets, by class of business, with a reconciliation of segmental
analysis to reported results follows:

 

Segmental analysis: 31 December 2021 (Unaudited)

 

                                    Electricity Supply  FIT Admin-isration  Gas Supply  Total Supply Companies  Electricity Generation  Energy as a service  Holding Companies/Consoli-dation Adjustments  Total - Continuing Operations
                                    £'000               £'000               £'000       £'000                   £'000                   £'000                £'000                                         £'000
 Revenue
 Revenue from external customers    116,521             5,323               23,491      145,335                 -                       643                  1                                             145,979
 FiT/ROC subsidy revenue            66                  -                   -           66                      -                       -                    -                                             66
 Inter-segment revenue              -                   -                   -           -                       -                       -                    -                                             -
 Total revenue                      116,587             5,323               23,491      145,401                 -                       643                  1                                             146,045

 Expenditure
 Cost of sales                      (103,339)           (647)               (14,851)    (118,837)               -                       (154)                (28)                                          (119,019)
 Inter-segment cost of sales        -                   -                   -           -                       -                       -                    -                                             -
 Gross Profit                       13,248              4,676               8,640       26,564                  -                       489                  (27)                                          27,026
 Administrative expenses                                                                (17,043)                -                       (1,448)              (3,612)                                       (22,103)
 Depreciation & amortisation                                                            (1,578)                 -                       (134)                (1)                                           (1,713)
 Operating profit/(loss)                                                                7,943                   -                       (1,093)              (3,640)                                       3,210
 Net finance costs                                                                      (67)                    -                       (2)                  (501)                                         (570)
 Share of loss of associate                                                             -                       -                       -                    -                                             -
 Underlying Profit                                                                      7,876                   -                       (1,095)              (4,141)                                       2,640
 Non-underlying items                                                                   (806)                   -                       -                    -                                             (806)
 Profit/(loss) before tax                                                               7,070                   -                       (1,095)              (4,141)                                       1,834
 Segments assets & liabilities
 Segment assets                                                                         63,415                  -                       633                  (6,201)                                       57,847
 Segment liabilities                                                                    48,169                  -                       1,549                (1,281)                                       48,437
 Net asset/ (liabilities)                                                               15,246                  -                       (916)                (4,920)                                       9,410
 Additions to non-current assets                                                        1,746                   -                       3                    -                                             1,749

 

All turnover arose within the United Kingdom.

 

Segmental analysis: 31 December 2020 (Audited Restated)

 

                                        Electricity Supply  FIT Adminis-tration  Gas Supply  Total Supply Comp-anies  Electricity Gener-ation  Energy as a service  Holding Companies/ Consoli-dation Adjustments  Total - Continu-ing Opera-tions  Total
                                        £'000               £'000                £'000       £'000                    £'000                    £'000                £'000                                          £'000                            £'000
 Revenue
 Revenue from contracts with customers  97,385              5,467                24,462      127,314                  1,761                    342                  -                                              129,417                          129,417
 FiT/ROC subsidy revenue                -                   -                    -           -                        1,232                    -                    -                                              1,232                            1,232
 Inter-segment revenue                  -                   -                    -           -                        5,786                    -                    (5,786)                                        -                                -
 Total revenue                          97,385              5,467                24,462      127,314                  8,779                    342                  (5,786)                                        130,649                          130,649

 Expenditure
 Cost of sales                          (77,826)            (600)                (16,909)    (95,335)                 (5,509)                  (60)                 (161)                                          (101,065)                        (101,065)
 Inter-segment cost of sales            (5,786)             -                    -           (5,786)                  -                        -                    5,786                                          -                                -

 Gross profit                           13,773              4,867                7,553       26,193                   3,270                    282                  (161)                                          29,584                           29,584
 Administrative expenses                                                                     (19,145)                 (869)                    (598)                (2,481)                                        (23,093)                         (23,093)
 Depreciation & amortisation                                                                 (1,812)                  -                        -                    (124)                                          (1,936)                          (1,936)
 Operating profit/(loss)                                                                     5,236                    2,401                    (316)                (2,766)                                        4,555                            4,555
 Net finance costs                                                                           (42)                     (3,194)                  -                    (827)                                          (4,063)                          (4,063)
 Share of loss of associate                                                                  -                        -                        -                    (13)                                           (13)                             (13)
 Underlying Profit                                                                           5,194                    (793)                    (316)                (3,606)                                        2                                479
 Non-underlying items                                                                        (477)                    -                        -                    -                                              -                                (477)
 Profit/(loss) before tax                                                                    4,717                    (793)                    (316)                (3,606)                                        2                                2
 Segments assets & liabilities
 Segment assets                                                                              54,502                   73,815                   320                  4,778                                          133,415                          133,415
 Segment liabilities                                                                         41,217                   65,723                   215                  (2,372)                                        100,783                          100,783
 Net assets                                                                                  13,285                   12,092                   105                  7,150                                          32,632                           32,632

 Additions to non-current assets                                                             899                      6                        23                   -                                              928                              928

 

All turnover arose within the United Kingdom.

Consolidation adjustments relate to intercompany sales of generated
electricity and the elimination of intercompany balances.

3. Non-underlying costs

Takeover bid

On 22 July 2021, Ecotricity announced the terms of its cash offer for the
entire issued ordinary share capital of Good Energy Group PLC not already
owned by Ecotricity, to be effected by means of a takeover offer under the
Takeover Code.

The Board unanimously rejected the offer after considering this offer together
with financial advisor, Investec Bank plc.

Ecotricity received valid acceptances of the offer representing approximately
11.5 per cent of the issued ordinary share capital of Good Energy. As such the
takeover bid was rejected by Good Energy shareholders.

This process involved considerable third party legal and professional advice
to ensure all provisions of the takeover code were adhered to. These costs
incurred are not part of the ongoing and underlying success of the business
and have been reported separately.

 

4. Finance Income and Finance Costs

 Finance income:                      2021       2020
                                      £'000      £'000
                                      Unaudited  Audited
 Bank and other interest receivables  14         16
 Gains on fair value adjustment       -          93
                                      14         109

 

 Finance costs:                   2020       2020
                                  £000       £000
                                  Unaudited  Audited Restated
 On bank loans and overdrafts     3          2,782
 On corporate bond                485        831
 Other interest payable           -          38
 Lease interest payable           69         327
 Amortisation of debt issue cost  27         194
                                  584        4,172

 

 

 

5. Earnings per Ordinary Share

Basic

Basic earnings per share is calculated by dividing the profit attributable to
owners of the Company by the weighted average number

 

 of ordinary shares during the year, after excluding 250,880 (2020: 268,270)
shares held by Clarke Willmott Trust Corporation Limited in trust for the Good
Energy Group Employee Benefit Trust.

 

                                                               2021       2020
                                                               Unaudited  Audited
 (Loss)/Profit attributable to owners of the Company (£'000)   (3,583)    146
 Basic weighted average number of ordinary shares (000's)      16,399     16,350
 Basic earnings per share                                      (21.8)     0.9

 

 Continuing operations                                     2021       2020
                                                           Unaudited  Audited

 Profit attributable to owners of the Company (£'000)      2,157      146
 Basic weighted average number of ordinary shares (000's)  16,399     16,350
 Basic earnings per share                                  13.2       0.9

 

Diluted

 

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.

 

Where the vesting of these awards is contingent on satisfying a service or
performance condition, the number of potentially dilutive ordinary shares is
calculated based on the status of the condition at the end of the period.

 

Potentially dilutive ordinary shares are dilutive only when the average market
price of 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 during the year was
269p (2020: 184p).

 

 

5. Earnings per Ordinary Share (continued)

 

The dilutive effect of share-based incentives was 145,752 shares (2020:
395,679 shares). The dilutive effect of share-based incentives for continuing
operations was 145,752 shares (2020: 395,679 shares).

 

                                                               2021       2020
                                                               Unaudited  Audited
 (Loss)/Profit attributable to owners of the Company (£'000)   (3,583)    146
 Basic weighted average number of ordinary shares (000's)      16,544     16,746
 Diluted earnings per share                                    (21.8)     0.9

 

 

 Diluted (continuing operations)                             2021       2020
                                                             Unaudited  Audited
 Profit attributable to owners of the Company (£'000)        2,157      146
 Weighted average number of diluted ordinary shares (000's)  16,544     16,350
 Diluted earnings per share                                  13.0       0.9

 

6. Borrowings

                            2021       2020
                            £'000      £'000
                            Unaudited  Audited

                                       Restated
 Current
 Bank and other borrowings  1,007      1,955
 Bond                       5,305      1,063
 Lease liabilities          555        612
 Total                      6,867      3,630

 

                            2021       2020
                            £'000      £'000
                            Unaudited  Audited
 Non-current
 Bank and other borrowings  -          33,405
 Bond                       -          16,331
 Lease liabilities          317        3,695
 Total                      317        53,431

 

The Group has undrawn bank overdraft facilities of £nil (2020: £nil) as at
31 December 2021.

 

The current portion of the bond repayment represents the interest accrued and
the amount of principal repayments requested prior to the end of the year. The
latest redemption request deadline was in December 2021, for repayment of the
remaining bond in June 2022.

 

The bank and other borrowings are made of interest accrued and amount of
principal repayments under a Revolving Credit Facility. This has been fully
repaid since year end, though the facility is still available.

7. Cash Generated from Operations

For the year ended 31 December 2021

 

                                                                                2021       2020
                                                                                £'000      £'000
                                                                                Unaudited  Restated
 Profit before tax from continuing operations                                   1,834      2
 Loss before tax from discontinued operations                                   (7,010)    -
 (Loss)/Profit before tax                                                       (5,176)    2

 Adjustments for:
 Depreciation                                                                   4,014      4,458
 Amortisation                                                                   1,133      1,218
 Impairment of assets                                                           -          287
 Impairment loss on remeasurement of discontinued operation to fair value less  1,581      522
 costs to sell
 Loss on asset disposals & writedowns                                           182        25
 Fair value adjustment of contingent consideration                              -          (86)
 Net gain on financial assets at FVTPL                                          -          (6)
 Share based payments                                                           -          39
 Share of loss of associates                                                    -          13
 Other Finance (income)/costs - net                                             2,257      4,156

 Changes in working capital (excluding the effects of acquisition and exchange
 differences on consolidation):
 Inventories                                                                    5,582      (4,813)
 Trade and other receivables                                                    (10,441)   2,844
 Trade and other payables                                                       4,766      2,766
 Cash generated from operations                                                 3,898      11,425

 

 

8.Held for sale Generation Assets

On 24 November 2021, the Group publicly announced the decision of its Board of
Directors to sell the Good Energy Holding Company No. 1 Limited group
including its wholly owned subsidiaries ("GEGAN group"). The sale of GEGAN
group was completed on 19 January 2022. At 31 December 2021 GEGAN group was
classified as a disposal group held for sale and as a discontinued operation.
The business of GEGAN group represented the entirety of the Group's
Electricity Generation operating segment until 24 November 2021. With GEGAN
group being classified as discontinued operations, the Electricity Generation
segment is no longer presented in the segment note.

 The results of GEGAN group for the year are presented below:
                                                                                                                              Restated
                                                                                                                2021          2020
                                                                                                                £'000         £'000
 Revenue
 Revenue from contracts with customers                                                                          405           1,761
 FiT/ROC subsidy revenue                                                                                        2,109         1,232
 Inter-segment revenue                                                                                          5,974         5,786
 Inter-segment adjustment                                                                                       (5,974)       (5,786)
 Total revenue                                                                                                  2,514         2,993
 Cost of sales                                                                                                  (5,250)       (5,509)
 Gross Loss                                                                                                     (2,736)       (2,516)
 Administrative Expenses                                                                                        (1,965)       (869)
 Operating Loss                                                                                                 (4,701)       (3,385)
 Net finance costs                                                                                              (728)         (3,194)
 Impairment loss on the remeasurement to fair value less costs to sell                                          (1,581)       -
 Loss before tax from discontinued operations                                                                   (7,010)       (6,579)
 Taxation benefit/(expense):
 Related to pre-tax profit/(loss) from the ordinary activities for the period                                   1,270         -
 Loss for the year from discontinued operations                                                                    (5,740)      (6,579)

In accordance with IFRS 5, inter-segment revenue between the discontinued
group and the continuing business totalling £6.0m (2020: £5.8m) has been
excluded from revenue. Without this adjustment, the loss before tax for the
discontinued group would have been £1.0m (2020: loss before tax of £0.8m).

The major classes of assets and liabilities of the GEGAN group classified as
held for sale at 31 December 2021 are, as follows:

                                                                     2021
                                                                     £'000
 Assets
 Property, plant and equipment                                       54,000
 Right-of-use assets                                                   4,280
 Intangible assets                                                         385
 Restricted deposit accounts                                              866
 Total non-current assets                                            59,531

 Current assets
 Trade and other receivables                                         1,253
 Curr Tax Receivable                                                 -
 Cash and cash equivalents                                           2,175
 Total current assets                                                3,428
 Held for sale assets                                                62,959

 Equity and liabilities
 Capital and reserves
 Revaluation Surplus                                                 11,589
 Reserves of a disposal group held for sale                          (11,589)
 Total equity                                                        -

 Non-current liabilities
 Deferred taxation - NC                                                4,225
 Borrowings - LT                                                     33,665
 LT Financial Liabilities                                              3,263
 Provisions for liabilities                                            1,339
 Total non-current liabilities                                       42,492

 Current liabilities
 Borrowings - ST                                                     1,485
 Trade and other payables                                               409
 ST Financial Liabilities                                               302
 Total current liabilities                                           2,196
 Liabilities directly associated with assets held for sale                                     44,688
 Total equity and liabilities associated with disposal group                                   44,688

 Net assets directly associated with disposal group                                            18,271

 Earnings per share                                                  2021                                                           2020
 Basic, loss for the year from discontinued operations                                           (35.0)                             (40.2)
 Diluted, loss for the year from discontinued operations                                         (35.0)                             (40.2)

 

Write down of property plant and equipment

The recoverable amount has been taken as the final agreed sale price
subsequent to the sale completion of GEGAN group on 19 January 2022, less
costs to sell.  A write down of £1.5m was performed at the year end. This is
primarily due to the revaluation method of valuation that the assets were held
at pre-sale, requiring valuation at fair value at the Held for Sale date,
followed by a valuation of fair value less costs to sell at the year end.

 

 

 

 

9. Subsequent Events

As previously announced in a strategic update on 25 November 2021, the Company
appointed KPMG LLP to lead a sale process for the Company's entire 47.5MW
generation portfolio. Following a competitive process, the disposal of the
portfolio has been completed with Bluefield Solar Income Fund ("BSIF") who are
advised by Bluefield Partners LLP.

The Disposal is for a total consideration of £20.4m. This consists of initial
and deferred consideration elements:

·    Initial consideration of £16.4m, less distribution since the lockbox
date of £0.7m. Cash proceeds of £15.7m were received on completion.

·    Deferred consideration of up to £8.1m, largely calculated with
reference to an agreed financial model and based on the actual operational,
technical, real estate and financial position of the projects.

·    The final deferred consideration is £5.3m as announced on 25
February 2025. £4.8m has now been paid, with a further up to £0.5m to be
paid on 30 June 2022, subject to Good Energy meeting all its payment
obligations up to that date for power supplied by the Portfolio to it under
the power purchase agreements.

·    Of the £3.3m that will not be received, £2.3m arose due to the
impact of a third-party energy yield assessment on the agreed financial model
and £1m arose during detailed technical and financial due diligence.

·    Total consideration received to date is therefore £20.7m, with an
agreed final total consideration of up to £21.2m by 30 June 2022.

·    The Company is now substantially debt free with a strong cash
position, strengthening the Company's balance sheet.

·    The 47.5MW generation portfolio provides around 15% of Good Energy
customers' electricity and will continue to do so via existing power purchase
agreements.

As announced on 14 January 2022, Ecotricity Group Limited requiring the
Board to convene a general meeting of shareholders for the purpose of
considering two resolutions, namely:

·    an ordinary resolution to remove William Whitehorn from office as a
director of the Company ("Resolution 1"); and

·    a special resolution to direct the Board not to dispose of the
Company's generation assets without shareholder approval ("Resolution 2").

The requisitioned General Meeting was held at 9am on Friday 11 February 2022
at SEC Newgate, 14 Greville Street, London, EC1N 8SB.

All voting was undertaken on a poll. The table below shows the votes received
for and against each of the Requisitioned Resolutions.

             For               Against           Total              Withheld
 Resolution  Votes      %      Votes      %      Votes       % ISC  Votes
 1           4,581,943  41.7%  6,411,473  58.3%  10,993,416  65.5%  35,198
 2           4,658,286  42.8%  6,226,697  57.2%  10,884,983  64.9%  143,631

Consequently, neither of the Requisitioned Resolutions received sufficient
support from the Company's shareholders to be passed.

Zap-Map Board update

 

As announced on 10 March 2022, Nigel Pocklington has been appointed Chair of
Zap-Map. He takes over the role from Good Energy Founder and Non-Executive
Director Juliet Davenport, who steps down from the Zap-Map Board. Nigel
bolsters the Board's expertise in building successful online platform
businesses, together he and existing independent Non-Executive Director Tim
Jones have a wealth of experience from leadership roles at AutoTrader,
Moneysupermarket.com Group and Hotels.com.

 

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