Un-audited interim results
17/09/2024 07:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240917:nRSQ4100Ea&default-theme=true
RNS Number : 4100E Good Energy Group PLC 17 September 2024
17 September 2024
Good Energy Group PLC
("Good Energy" or the "Company")
Un-audited results for the six months ended 30 June 2024
Good Energy profitable half year as services business expands in normalising
market
Good Energy Group PLC (AIM: GOOD), the renewable electricity and energy
services provider, today announces its interim results for the six months
ended 30 June 2024.
Financial highlights
· Full year profit expectation unchanged, strong first half of the
year during a period of normalised trading and stability, with solid profit in
energy supply and promising indicators from consolidation in services:
o Reported profit before tax of £4.4m, 78% of 2023 FY profit (2023 H1:
£13.1m and FY 2023: £5.7m)
o Revenues of £97.4m (2023 H1: £156.1m and FY 2023: £254.7m). Revenues
are directly linked to externally driven commodity costs. In H1 2024 both
revenue and costs of sales reduced replicating the reductions in wholesale
costs seen since the start of 2023.
o Reported gross profit decreased 28% to £23.6m (2023 H1: £32.7m). Gross
margin increased to 24.3% (2023 H1: 20.9%).
o Operating profit of £4.8m (2023 H1: £14.1m)
o Reported profit after tax of £2.6m (2023 H1: £12.0m). 2024 profitability
following a more normalised profile, in comparison to 2023 where an abnormal
H1 operating profit was followed by very tough margin position in H2 2023.
o Reported earnings per share of 15.6p (2023 H1: 72.0p).
o Cash and cash equivalents of £39.9m (FY 2023: £41.3m) reflecting £6m of
cash generated from operations and ongoing focus on working capital
management.
o Interim dividend of 1.1p (2023 H1: 1.0p).
Operational highlights
· Performing on track as the market normalises, with solid profit in
energy supply and consolidation in services.
· Acquisition of second solar installation business.
o £7m initial investment in JPS Renewable Energy Limited in February 2024,
in part funded via £2.1m share issuance, with the remainder paid in cash.
o Establishes capability for solar installation services across the South of
the UK.
o Three acquisitions undertaken in the past two years, two businesses are
now fully integrated into the Good Energy brand, with JPS to follow.
o Additional investments in other energy services businesses are being
actively considered with a view to expanding regional footprint.
· Full greener home and business solutions positioning in market as
installation services including heat pumps, solar, storage and EV charging are
established under the Good Energy brand alongside supply and export.
· Evidence that there is customer demand for a more straightforward
trusted provider for multiple energy services with 18% of solar sales coming
from existing Good Energy customers (supply and Feed-in-Tariff).
· Established as the microgeneration specialist with 20% share in
solar export, and a premium solar install services in an increasingly positive
policy environment.
· Innovating in supply with hourly renewable matching for businesses,
enduring derogation from the price cap in domestic market due to material
support for renewables above and beyond existing subsidies.
· Time of use and flexibility tariffs for storage, heat pumps and
electric vehicles going to market.
· Passed milestone of 50,000 smart meter installations shortly
following end of period.
· B Corp certification secured in July 2024, further establishing the
credibility of the Company's high environmental, social and governance
standards.
· The Company maintains 49.9% ownership of Zapmap, the UK's leading
EV charging app now with over 900K registered users as it focuses on achieving
profitability in core UK market. Further invested in June 2024 through loan of
£1.7m which can be converted to further equity.
Outlook highlights
· The Company is now positioned to offer 'whole greener home and
business' energy services to customers, including supply, export, installation
service and flexibility.
· Solar installation capability across the South - rooftop solar in
the region indicated to be a nationally important strategic pillar of the
recently appointed government's energy strategy.
· Installation services are actively integrating into the Good Energy
brand with completion of Wessex ECOEnergy rebrand to Good Energy Solar South
West.
· Active consideration of further acquisitions underway to solidify
offering and accelerate growth in services.
· With around 20% share of domestic scale solar export customers
including Feed-in-Tariff ("FIT") and smart export, Company is positioned as
the microgeneration specialist and well positioned for growth in this market.
· Innovation and research in flexibility developing into products
which optimise customers' energy use with grid demand - providing value for
customers, the grid and the Company - entering the market over next six
months.
· Zapmap continues to grow both in users and in commercial agreements
across its app, data and insights offering. Good Energy maintains largest
share of business in addition to recent loan providing options for additional
equity.
Nigel Pocklington, CEO, Good Energy Group PLC:
"As the energy supply market has normalised, we have shown strong
profitability in the first half of the year, whilst our expansion into energy
services is showing promise as we consolidate our offer to customers."
"Having completed three acquisitions in the clean energy installation services
space we are now offering solar, storage, heat pumps and EV charging across
the South - a trusted, truly green brand offering whole greener home and
business solutions. Good Energy is established as the microgeneration
specialist, with a significant market share of rooftop solar customers,
leading export tariff rates and premium installation services."
"In a favourable policy environment promising an imminent 'rooftop revolution'
as the new government accelerates the clean energy transition, Good Energy is
well placed for growth."
Analyst and Retail Investor Presentations
A briefing for Analysts will be held at 9:30am today. Analysts wishing to
attend the presentation either in person or virtually should register their
interest by emailing investor.relations@goodenergy.co.uk
(mailto:investor.relations@goodenergy.co.uk) or telephoning 0124 976 5573.
An investor presentation and Q&A will be held today at 13:00pm. Investors
can sign up to Investor Meet Company for free and add to meet Good Energy via:
https://www.investormeetcompany.com/good-energy-group-plc/register-investor
(https://www.investormeetcompany.com/good-energy-group-plc/register-investor)
.
A video overview of the results from the Chief Executive Officer, Nigel
Pocklington, is available to watch here
(https://www.fmp-tv.co.uk/2024/09/17/good-energy-interim-results-ceo-interview/)
.
Please take a moment to give your feedback and share your thoughts on the
announcement using the link below:
https://www.investormeetcompany.com/feedback/9cfe52b1-ca92-4e71-a5e3-030da76c8594
(https://www.investormeetcompany.com/feedback/9cfe52b1-ca92-4e71-a5e3-030da76c8594)
Enquiries
Good Energy Group PLC
Nigel Pocklington, Chief Executive Officer Email: press@goodenergy.co.uk (mailto:press@goodenergy.co.uk)
Ian McKee, Head of Communications
SEC Newgate UK
Elisabeth Cowell / Molly Gretton Tel: +44 (0)7900 248213
Email: GoodEnergy@secnewgate.co.uk (mailto:GoodEnergy@secnewgate.co.uk)
Canaccord Genuity Limited (NOMAD and Joint Broker)
Henry Fitzgerald - O'Connor / Harry Rees Tel: +44 (0) 20 7523 4617
Panmure Liberum Limited (Joint Broker)
Edward Mansfield / William King / Josh Moss Tel: +44 (0) 20 3100 2000
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 more
than 2,500 independent UK generators.
Since it was founded 25 years ago, the Company has been at the forefront of
the charge towards a cleaner, distributed energy system. Its mission is to
power a cleaner, greener world and make it simple to generate, share, store,
use and travel by clean power. Its ambition is to support one million homes
and businesses to cut carbon from their energy and transport used by 2025.
Good Energy is recognised as a leader in this market, through its B Corp
accreditation, Which? Eco Provider status and Gold Standard Uswitch Green
Tariff Accreditation.
CEO's review
Overview
Good Energy is now a full-service clean energy business, offering truly
renewable supply, market leading export tariffs, solar, storage, heat and EV
charging installations and with a stake in the UK's go-to app for public EV
charging. We offer premium solutions for a whole greener home or business,
from a trusted brand.
Strong financial performance in a normalising market
The period under review has seen us deliver in line with market expectations
for the current financial year and operate in a period of far more normalised
market conditions, as expected and outlined in my statement in the 2023 full
year results and in line with the wider sector.
Our supply business has continued to deliver strong profit, with PBT for the
first half of the year 2024 representing 78% of that achieved for the entire
2023 FY, in line with the H1 weighting of our financials traditionally.
Although energy prices are widely expected to elevate in the latter months of
2024, overall, we expect the 12 months to 31 December to be characterised by
improved stability overall. This is in stark contrast to last year when market
prices fell faster than tariffs, delivering high revenues and a profit level
for 2023 H1 which unwound through the second half of the year.
Our cash position for the period has remained strong, consistent with H1 2023.
Delivering the 'whole green home or business'
During the period we largely completed the core development of our
full-service clean energy business and are now well positioned to offer
premium, higher margin solutions for a whole greener home or business, from a
trusted brand.
Our services business grew further in the first half of 2024 with the
acquisition of JPS Renewables Limited ("JPS"), a Kent-based solar installer.
When combining this with the rest of our proposition across truly renewable
supply, market leading export tariffs, solar, storage, heat, and EV charging
installations, it is clear that Good Energy really is the go-to for any
home-owner or business looking to enhance the environmental credentials of
their premises.
As outlined in our FY 2023 results, a core aim for the period was to integrate
our prior two services acquisitions into the Good Energy brand and I'm pleased
to report that this was achieved during H1 2024. We are beginning to see the
benefits of being able to cross-sell premium, green products and offer
customers a high level of service and expertise from one trusted provider.
Following the implementation of an active cross-selling process for customers,
we saw 18% of solar sales were from existing Good Energy customers - both
supply and FIT. 10% of solar customers also buy a heat pump, and 20% have more
than one Good Energy service, be that supply, export, or another installation.
Margin expansion and EBITDA are moving in the right direction and we are
aiming to grow this side of our business to a point where it becomes more
profitable than our supply business in the next two to three years.
A differentiated green energy supply business
Our supply business continues to be differentiated in the market, as
acknowledged by the energy regulator Ofgem following its review of tariffs
derogated from the energy price cap. Good Energy's SVT has held a derogation
since the price cap was introduced, due to the material support it offers to
renewables above and beyond subsidies, and the fact that our customers choose
it for this reason. Following a review earlier this year Ofgem has confirmed
that this derogation remains.
This, alongside our Which? Eco Provider and Uswitch Green Tariff Gold Standard
accreditations mark out the environmental credentials of our green tariffs to
the extent that the Board now confidently believes we can claim to be the UK's
greenest energy supplier. In addition, our 'excellent' five star rating on
TrustPilot is testament to the high levels of customer service we provide too.
For business customers, in the first half of this year we became the first
supplier to roll out hourly matched renewable services across our portfolio.
Our fully renewable power purchase agreement backed model makes us uniquely
able to match customer demand with genuinely sourced renewable power, and this
is something we have been doing to a very high standard for many years through
our trading strategy. Now we have made this data available to our business
customers so that they can flex when they use their energy to further reduce
their carbon footprint. Our service for business customers is further
evolving, as we migrate their accounts to the Kraken platform on which we have
been successfully been managing domestic customers' through since 2020.
Favourable policy environment
During the period, we have seen the advent of a new government. Early
indications from the new Labour administration are that they intend to
accelerate the country's clean energy goals, immediately unblocking onshore
wind and promising a 'rooftop revolution'. On the latter, the South of the
country specifically has been called out as having nationally critical
importance and it is worth noting that this is exactly where we have been
building a market-leading presence. This is as decentralised power, especially
where sunshine is more abundant, affirms our energy security.
As such we are now operating in an increasingly supportive policy environment.
Good Energy is well established as the microgeneration specialist, with our
legacy in home export tariffs through to our position today with around 20%
market share of domestic scale solar customers across the FIT and smart
export. We are confident that we are ideally positioned to capitalise on a
market in which we expect to see rapid growth in over the next two to five
years.
Innovating in flexibility
Last winter saw Good Energy successfully trialling participation in the
National Grid's Demand Flexibility Service, our 'Power Pause' scheme paying
customers credit for reducing their energy usage at set times. We have also
been researching heat demand flexibility in partnership with the University of
Southampton, through the LATENT project. This has investigated customer
resilience to adapting power usage for heat pumps, the findings of which we
will be looking to implement into live products over the coming months.
This is in addition to our time-of-use EV tariff, which we have relaunched
this September with a best-in-market off peak charging rate, encouraging EV
drivers to charge their vehicles at times of low grid demand.
Zapmap
This tariff also comes bundled with a premium Zapmap subscription - offering
customers additional service for charging on the go, too.
Zapmap continues its trajectory of strong growth, now with nearly one million
registered users (916k) constituting a 75% share of the still rapidly growing
EV market, which is now at 1.2m battery electric vehicles and 0.7m plug-in
hybrids. New features in premium including a price filter and charging
discounts have drawn growth in paid subscribers. Its commercial offering is
growing too, as its Insights product solidifies as the industry's go-to source
for data on the nationally critical public EV charging network, and Spark as
the API for businesses looking to integrate Zapmap's data into their digital
infrastructure.
B Corp
Finally Good Energy has now successfully certified as a B Corp, joining the
global movement for purpose led businesses. Securing an impact score of 118.5,
impressive against the minimum qualifying score of 80 and median for companies
of 50.9, sees one of the UK's original purpose led businesses enter a
community of like-minded companies. This further solidifies our commitment to
having a positive impact on the environment and society, whilst maintaining
high standards of governance and transparency.
Looking ahead
It has been an extremely positive milestone in a year which has seen further
strides forward in Good Energy's strategy against a backdrop of a stabilising
market and shift to supportive policymaking. As we continue to integrate
services, innovate in flexibility and affirm ourselves as the microgeneration
specialists, the short and medium term future looks good for Good Energy.
Nigel Pocklington, CEO
Operating review
Wholesale energy market conditions
Wholesale power and gas prices
UK power and gas prices begun the year continuing the bearish trajectory which
was established in Q4 2023. Between the turn of the year and the end of
February, the Winter 2024 gas contract lost 18% and was trading around
pre-crisis lows. The outlook was soft as we exited the winter with healthy gas
storage levels across Europe following another mild winter and with industrial
demand remaining low. With a relatively subdued Norwegian maintenance schedule
planned for the summer, it looked like supply was adequate to meet demand. The
change in direction began in March, with drivers including unplanned outages
at the US Freeport LNG terminal as well as at the Australian Gorgon and
Wheatsone terminals. Demand has been supported across Asia and Europe due to
high cooling requirements, and with Asian prices at a premium to their
European counterparts, European LNG send out has fallen to a three-year low.
Geopolitical risks have also provided significant support with fears that the
ongoing conflicts in the Middle East and between Russia and Ukraine will
disrupt gas supplies.
Keeping a cap on the bullish movements has been French nuclear generation
increasing back to the higher levels seen in 2021. Norwegian maintenance has
also been significantly lower than last year which, coupled with lower demand
for storage injections has resulted in a comfortable supply picture. We have
also continued to see mild UK temperatures, with the average temperature at
9.7 degrees for the first half of 2024, compared to 9.5 degrees for the same
period last year, and a 30-year mean of 8.7 degrees. UK gas demand was 5%
lower in H1-2024, which was driven by a 23% reduction in gas demand for power
generation due to an increase in supply from interconnectors and renewables.
Renewable supply business
Cash collections
Cash collections through 2024 have remained strong, and though economic
pressures around inflation and the cost-of-living crisis have shown signs of
easing, consumer indebtedness across the wider industry is at an all-time
high.
Whilst residential debt has remained fairly static, commercial debt has
reduced through 2024 by 25%.
We continued to see rapid speed to cash from key accounts and larger business
supplies, further demonstrating our ability to manage large and complex
billing portfolios and broker relationships.
Direct Debit ("DD") collections remained healthy through the year, with
consistent payments made in line with consumption changes. We have been able
to issue credit back to a number of DD customers that had previously overpaid
in the prior year, leaving a healthy DD book in advance of winter consumption.
Business
Total annualised volume has fallen by 53GWh (18%). This was a result of a
conscious decision made to reduce our portfolio to a size with a comfortable
level of risk whilst remaining highly profitable. The reduction came primarily
from one large customer, meaning despite the volume decrease our customer
numbers increased by 6% (+284) in the same period.
Domestic
We remain committed to ensuring that we offer a fair priced, transparent 100%
renewable electricity proposition.
Services business
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.
Live customers are 181.1k, a 1% reduction vs December 2023 following an audit
of dormant meters. FIT sales were restructured in H1 2024 to support
maintaining growth through H2 2024 and into 2025.
Smart meters
At end of June 2024 Good Energy had installed +49,000 smart meters,
constituting over 62% of all domestic customer meters.
Heat pump installations
Revenue from heat pump installations for the first half of the year is £0.9m.
Solar installations
Revenue from solar installations for the first half of the year is £5.4m.
CFO review
Financial performance - H1 2024 delivers 78% of 2023 full year PBT.
Stabilising market results in a more normalised H1 PBT post a significant
period of market fluctuations.
Profit and loss
Revenue is heavily linked to wholesale costs, and in H1 2024 both revenue and
costs of sales reduced replicating the reductions in wholesale costs seen
since 2023. Revenue decreased 38% in the period to £97.4m (2023 H1:
£156.1m) reflecting:
1) The steep wholesale cost decreases seen in 2023 flowing through into
tariffs charged - e.g. Ofgem mandated domestic dual fuel price Cap Q1 2024
£1,928, Q1 2023 £4,059
2) The previously communicated right sizing of the business portfolio to
align with the energy services strategy. This right sizing was enacted in
April 23 and no further material reduction to business supply volumes are
envisaged.
Cost of sales decreased by 40% to £73.8m (2023 H1: £123.5m) driven largely
by wholesale costs falling materially versus 2023 H1. Per revenue we are
seeing more normalised commodity cost environment reflecting the return to
more normalised earnings profile for 2024.
Reported gross profit decreased by 28% to £23.6m (2023 H1: £32.7m). The
decrease on 2023 H1 reflects a return to more normal market and margin
condition following extraordinary margins in 2023 H1, but also reflects
improvement versus 2023 H2 reflecting the tough margin conditions experienced
in 2023 H2.
Total administration costs increased 2% to £18.9m (2023 H1: £18.6m). The
growth reflects the impact of inflation and expansion/investment into the
services business. This is partially offset by a smaller ECL provision
requirement (driven by lower absolute tariffs flowing through to the ECL
provision) and internal cost focus.
The business reported net finance income of £0.5m (2023 H1: £0.1m), whilst
gross debt remained at £6m.
Reported profit before tax of £4.4m. (2023 H1: £13.1m). Adding back £0.7m
of depreciation, amortisation, finance income & share in loss of associate
gives £5.1m EBITDA for the period (2023 H1: £14.9m).
The tax charge for H1 2024 was £1.8m (2023 H1: £1.2m ).
The reported profit for the period was £2.6m (2023 H1: £12.0m).
*A profit bridge slide has been included in the Investor presentation, which
is available on the Company's website.
(https://www.goodenergy.co.uk/investors/results-presentations/)
Cash flow and cash generation
The profitability seen in H1 2024 has driven a £6m inflow from operations
reducing to £3.1m after capturing tax and interest related outflows.
A net £5.9m outflow was seen in investing activities, this includes: 1) £7m
initial investment in JPS Renewable Energy Ltd in Feb 2024. This was part
funded by £2m of shares issued at the same time; and 2) A strategic
investment of £1.7m (convertible loan note) into Zapmap in June 2024.
There was a net decrease in cash of £1.4m over the period reflecting the
continued investments made by the business. Cash and cash equivalents at the
end of June 2024 were £40.0m, with a further £7.5m held in restricted
deposit accounts.
Funding and debt
Our business is debt free on a net basis.
Substantial progress has been made against reducing Group finance costs and
reducing the gearing ratio over the last 2 years. The remaining Good Energy
Bonds II outstanding £4.7m (2023 H1: £4.9m). This is primarily held within
short term liabilities. This is due to an annual redemption request window for
bondholders in December with repayment in June each year.
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 per share
Reported basic earnings per share decreased to 15.6p (2023 H1: 72.0p).
Dividend
The Board has declared an interim dividend for H1 2024 of 1.1p per ordinary
share (2023 H1: 1.0p per ordinary share)
Good Energy continues to operate a scrip dividend scheme, and the payment
timetable of the interim dividend will be announced in due course.
Expected Credit Loss (ECL)
ECL charge for H1 2024 was £1.8m, this is a decrease of £2.0m (2023 H1:
£3.8m). The decrease year on year is a direct impact of lower absolute
tariff levels.
Falling tariff levels are expected to flow through to lower absolute provision
levels through 2024/2025 if wholesale cost continues to stabilise.
Consolidated Statement of profit or loss (Unaudited)
For the 6 months ended 30 June 2024
Notes Unaudited Unaudited Audited
6 months to 30/06/2024 6 months to 30/06/2023 12 months to 31/12/2023
£000's £000's £000's
Revenue 97,396 156,114 254,703
Cost of sales (73,756) (123,457) (210,458)
GROSS PROFIT 23,640 32,657 44,245
Administration expenses (18,874) (18,574) (37,282)
Other operating income 44 47 171
OPERATING PROFIT 4,810 14,130 7,134
Finance income 734 299 897
Finance costs (185) (169) (321)
Share of loss of associate (929) (1,139) (2,027)
PROFIT BEFORE TAX 4,430 13,121 5,683
Taxation (1,808) (1,156) (2,807)
PROFIT FOR THE PERIOD 2,622 11,965 2,876
Earnings per Share
- Basic 9 15.6p 72.0p 17.1p
- Diluted 9 15.1p 68.6p 17.0p
Consolidated Statement of Financial Position (Unaudited)
As at 30 June 2024
Notes Unaudited Unaudited Audited
6 months to 30/06/2024 6 months to 30/06/2023 12 months to 31/12/2023
£000's
£000's
£000's
ASSETS
Non-current assets
Property, plant and equipment 871 306 180
Right-of-use assets 1,086 46 1,227
Intangible assets 11,831 5,517 5,694
Deferred tax asset - 87 131
Equity investments in associate 9,622 11,440 10,551
Total non-current assets 23,410 17,396 17,783
Current assets
Inventories 20,054 20,252 11,026
Trade and other receivables 6 25,312 49,482 35,858
Restricted deposit accounts 7,457 8,489 5,912
Cash and cash equivalents 7 39,932 34,926 41,346
Total current assets 92,755 113,149 94,142
TOTAL ASSETS 116,165 130,545 111,925
EQUITY AND LIABILITIES
Capital and reserves
Called up share capital 912 844 845
Share premium account 16,233 12,915 12,975
EBT shares - (7) -
Retained earnings 31,012 36,863 28,185
Total equity 48,157 50,615 42,005
Consolidated Statement of Financial Position (Unaudited)
As at 30 June 2024
Non-current liabilities
Borrowings 8 5,520 89 5,687
Total non-current liabilities 5,520 89 5,687
Current liabilities
Borrowings 8 535 5,169 531
Trade and other payables 60,573 73,517 63,702
Current tax payable 1,381 1,155 -
Total current liabilities 62,489 79,841 64,233
Total liabilities 68,009 79,930 69,920
TOTAL EQUITY AND LIABILITIES 116,165 130,545 111,925
Consolidated Statement of Changes in Equity (Unaudited)
For the 6 months ended 30 June 2024
Share Capital Share Premium EBT shares Retained Earnings Total
£000's £000's £000's £000's £000's
At 1 January 2023 844 12,915 (7) 25,234 38,986
Profit for the period 11,965 11,965
Total comprehensive income for the period - - - 11,965 11,965
Dividend paid - - - (336) (336)
Total contributions and distributions to owners of the parent, recognised - - - (336) (336)
directly in equity
At 30 June 2023 844 12,915 (7) 36,863 50,615
At 1 July 2023 844 12,915 (7) 36,863 50,615
Loss for the period - - - (9,089) (9,089)
Total comprehensive loss for the period - - - (9,089) (9,089)
Exercise of options - - 7 - 7
Share based payments - - - 341 341
Scrip dividends issued 1 60 - (61) -
Dividend paid - - - (108) (108)
Deferred tax movement charged to equity - - - 239 239
Total contributions and distributions to owners of the parent, recognised 1 60 7 411 479
directly in equity
At 31 December 2023 845 12,975 - 28,185 42,005
Consolidated Statement of Changes in Equity (Unaudited)
For the 6 months ended 30 June 2024
Share Capital £000's Share Premium £000's EBT shares £000's Retained Earnings £000's Total £000's
At 1 January 2024 845 12,975 - 28,185 42,005
Profit for the period - - - 2,622 2,622
Total comprehensive income for the period - - - 2,622 2,622
Exercise of options 1 19 - - 20
Share based payments - - - 205 205
Issue of shares 66 3,239 - - 3,305
Total contributions by and distributions to owners of the parent, recognised 67 3,258 - 205 3,530
directly in equity
At 30 June 2024 912 16,233 - 31,012 48,157
Consolidated Statement of Cash Flows (Unaudited)
For the 6 months ended 30 June 2024
Notes Unaudited Unaudited Audited
30/06/2024 30/06/2023 31/12/2023
£000's £000's £000's
Cash flows from operating activities
Cash inflow from continuing operations 6,036 13,033 20,634
Finance income 464 65 434
Finance cost (289) (145) (189)
Corporation tax paid (3,048) - (550)
Net cash flows from operating activities 10 3,127 12,953 20,329
Cash flows from investing activities
Purchase of property, plant and equipment (437) (61) (168)
Purchase of intangible fixed assets 70 (3) (12)
Acquisition of subsidiary, net of cash acquired (5,524) (2,163) (2,204)
Net cash flows used in investing activities (5,891) (2,227) (2,384)
Cash flows from financing activities
Payments of dividends - - (444)
Repayment of borrowings (385) (30) (180)
Proceeds from borrowings - - 134
Capital repayment of leases (389) (257) (646)
Issue of shares 2,124 - -
Proceeds from EBT shares - - 50
Net cash flows from/(used in) financing activities 1,350 (287) (1,086)
Net (decrease)/increase in cash and cash equivalents (1,414) 10,439 16,859
Cash and cash equivalents at beginning of period 41,346 24,487 24,487
Cash and cash equivalents at end of period 39,932 34,926 41,346
Notes to the Interim Accounts
For the 6 months ended 30 June 2024
1. General information and basis of preparation
Good Energy Group PLC is an AIM listed company incorporated and domiciled in
the United Kingdom under the Companies Act 2006. The Company's registered
office and its principal place of business is Monkton Park Offices, Monkton
Park, Chippenham, Wiltshire, United Kingdom, SN15 1GH.
The Interim Financial Statements were prepared by the Directors and approved
for issue on 17(th) September 2024. These Interim Financial Statements do not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. Statutory accounts for the year ended 31 December 2023 were approved
by the Board of Directors on 26 April 2024 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified and
did not contain statements under 498 (2) or (3) of the Companies Act 2006 and
did not contain any emphasis of matter.
As permitted these Interim Financial Statements have been prepared in
accordance with UK AIM rules and the IAS 34, 'Interim financial reporting' as
adopted by the United Kingdom. They should be read in conjunction with the
Annual Financial Statements for the year ended 31 December 2023 which have
been prepared in accordance with IFRS as adopted by the European Union.
In accordance with IAS 34, the tax charge is estimated on the weighted average
annual income tax rate expected for the full financial year. The accounting
policies applied are consistent with those of the Annual Financial Statements
for the year ended 31 December 2023, as described in those Annual Financial
Statements.
The Interim Financial Statements have not been audited.
2. Going concern basis
The Group has seen a stable start to 2024 reflecting a consistency in
wholesale costs over the last 12 months resulting in a return to normalised
margin levels. The Group has performed a going concern review, going out until
the end of 2025 considering both an internal base case, and various externally
provided scenarios. The scenarios were provided by Ofgem in late 2023 as part
of their ongoing check into the financial stability of UK Energy suppliers.
Having reviewed this forecast, and having applied a reverse stress test, the
possibly that financial headroom could be exhausted is remote.
The Directors are confident in the ongoing stability of the Group, and its
ability to continue operation and meet commitments as they fall due over the
going concern period. The Group therefore continues to adopt the going concern
basis in preparing its consolidated financial statements.
3. Estimates
The preparation of Interim Financial Statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing this set of condensed Interim Financial Statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the Annual Financial Statements for the year ended 31 December
2023.
4. Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk,
currency risk, credit risk and liquidity risk. The condensed Interim Financial
Statements do not include all financial risk management information and
disclosures required in the Annual Financial Statements. They should be read
in conjunction with the Annual Financial Statements as at 31 December 2023.
5.Segmental analysis
H1 2024 Electricity Supply FIT Administration Gas Supply Total Supply Companies Energy as a service Holding Company/ Total
Consolidated Adjustments
£000s £000s £000s £000s £000s £000s £000s
Revenue 71,791 2,730 16,673 91,195 6,202 - 97,396
Cost of sales (54,435) (141) (13,658) (68,234) (5,523) - (73,756)
Gross profit 17,357 2,589 3,015 22,961 679 - 23,640
Gross margin 24% 95% 18% 25% 11% - 24%
Admin costs (14,108) (2,831) (1,891) (18,830)
Operating profit/(loss) 8,853 (2,152) (1,891) 4,810
Net finance costs 391 (176) 334 549
Share of loss of associate - (929) - (929)
Profit before tax 9,244 (3,257) (1,557) 4,430
H1 2023 Electricity Supply FIT Administration Gas Supply Total Supply Companies Energy as a service Holding Company/ Total
Consolidated Adjustments
£000s £000s £000s £000s £000s £000s £000s
Revenue 122,092 2,730 30,890 155,712 402 - 156,114
Cost of sales (92,003) (93) (30,797) (122,893) (564) - (123,457)
Gross profit/(loss) 30,089 2,637 93 32,819 (162) - 32,657
Gross margin 25% 97% 0% 21% -40% 21%
Admin costs (16,102) (1,500) (925) (18,527)
Operating profit/(loss) 16,717 (1,662) (925) 14,130
Net finance costs - (53) 183 130
Share of loss of associate - (1,139) - (1,139)
Profit/(loss) before tax 16,717 (2,854) (742) 13,121
6. Trade Receivables
Unaudited Audited
As at 30/06/2024 As at 31/12/2023
£000s £000s
Gross trade receivables and unbilled receivables 40,504 49,211
Provision for impairment/non-payment of trade receivables (18,290) (18,872)
Net trade receivables and unbilled receivables 22,214 30,339
Prepayments 1,527 3,611
Other Taxation 1,571 1,908
Total 25,312 35,858
The movements on the provision for impairment and non-payment of trade
receivables is shown below:
Movement on the provision for impairment and non-payment of trade receivables Unaudited Audited
As at 30/06/2024 As at 31/12/2023
£000's £000's
Balance at 1 January 18,872 15,428
(Decrease)/Increase in allowance for impairment/non-payment (582) 3,444
Balance at 30 June 2024 / 31 December 2023 18,290 18,872
Days past due
Unaudited Current <30 days 30-60 days 61-90 days >91 days Total
As at 30/06/2024
£000's £000's £000's £000's £000's £000's
Expected credit loss rate 7.9% 14.0% 23.8% 36.5% 88.2%
Estimated total gross carrying amount at default 13,087 3,023 1,993 1,172 18,068 37,343
Expected credit loss 1,029 423 474 428 15,935 18,290
Days past due
Audited Current <30 days 30-60 days 61-90 days >91 days Total
As at 31/12/2023
£000's £000's £000's £000's £000's £000's
Expected credit loss rate 7.9% 13.9% 28.6% 43.6% 92.1%
Estimated total gross carrying amount at default 22,153 4,302 1,963 960 16,869 46,247
Expected credit loss 1,759 597 562 419 15,538 18,872
7. Cash and cash equivalents
Unaudited Audited
As at 30/06/2024 As at 31/12/2023
£000s £000s
Cash at bank and in hand 23,989 25,319
Short-term bank deposits 15,918 16,000
Security deposits 27 27
Total 39,934 41,346
At June 2024, no money was held by the Good Energy Employee Benefit Trust
(2023 H1: £6,911, 2023 FY: £nil). The Good Energy Employee Benefit Trust was
wound up during 2023.
8. Borrowings Unaudited Audited
As at 30/06/2024 As at 31/12/2023
Current: £000s £000s
Bond 200 215
Bank loans - 10
Lease liabilities 335 306
Total 535 531
Unaudited Audited
As at 30/06/2024 As at 31/12/2023
Non-current: £000s £000s
Bond 4,540 4,726
Bank Loans 20 15
Lease liabilities 960 946
Total 5,520 5,687
The fair values of borrowings have been calculated taking into account the
interest rate risk inherent in the bond. The fair value estimates and carrying
values of borrowings (excluding issue costs) in place are:
Unaudited Unaudited Audited Audited
As at 30/06/2024 As at 30/06/2024 As at 31/12/2023 As at 31/12/2023
Fair value Carrying value Fair value Carrying value
£000s £000s £000s £000s
Corporate bond 4,954 4,750 4,833 4,449
9. Earnings per share
The calculation of basic earnings per share at 30 June 2023 was based on a
weighted average number of ordinary shares outstanding for the six months to
30 June 2024 of 16,769,366 (for the six months to 30 June 2023: 16,609,219 and
for the full year 2023: 16,793,375).
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares to assume conversion of all potentially dilutive
ordinary shares. Potentially dilutive ordinary shares arise from awards made
under the Group's share-based incentive plans. When the vesting of these
awards is contingent on satisfying a service or performance condition, the
number of the potentially dilutive ordinary shares is calculated based on the
status of the condition at the end of the period. Potentially dilutive
ordinary shares are actually dilutive only when the Company's ordinary shares
during the period exceeds their exercise price (options) or issue price (other
awards). The greater any such excess, the greater the dilutive effect. The
average market price of the Company's ordinary shares over the six month
period to 30 June 2024 was 281p (for the six months to 30 June 2023: 187p and
for the full year 2023: 209p). The dilutive effect of share-based incentives
was 548,129 shares (for the six months to 30 June 2023: 839 shares and for the
full year 2023: 169,580 shares).
10. Net cash flows from operating activities
The operating cashflow for the six months to 30 June 2024 is an inflow of £6m
(for the six months to 30 June 2023: £13m inflow and for the full year 2023:
£21m inflow). The difference in the cashflow between the half year 2023 and
its comparative for the same period is primarily due to timing of working
capital related items.
11. Business Combinations
On 12 February 2024, the Group acquired 100% of the issued share capital of
JPS Group, a specialist solar and storage installation and distribution
business. Building on its acquisition of Good Energy Solar (South West)
Limited (formerly Wessex ECOEnergy Limited) in June 2023, this acquisition
strengthens Good Energy's service offering and accelerates the Company's
energy services growth strategy.
Unaudited Unaudited Audited Audited
As at 30/06/2024 As at 30/06/2024 As at 31/12/2023 As at 31/12/2023
Fair value Carrying value Fair value Carrying value
£000s £000s £000s £000s
Property, plant and equipment 500 500 171 171
Intangible assets - - 889 -
Inventories 469 469 362 362
Receivables 2,395 2,395 246 246
Cash 284 284 350 350
Payables (1,313) (1,313) (297) (297)
Borrowings (1,278) (1,278) (711) (711)
Deferred tax liability (137) (137) (223) -
Total identifiable net assets 920 920 787 121
Unaudited Audited
As at 30/06/2024 As at 31/12/2023
£000s £000s
Goodwill 6,088 1,767
Consideration 7,008 2,554
The goodwill recognised in respect of the acquisition of JPS Group at 30(th)
June 2024 is provisional, subject to a fair value assessment of identifiable
intangible assets separable from goodwill in accordance with the provisions of
IFRS 3: Business Combinations.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SFAFAMELSEFU