Unaudited results for the year ended 30 June 2020

Trading Update for the period from 1 July to 11 September 2020

eEnergy (AIM: EAAS), the leading “Energy Efficiency-as-a-Service” (EEaaS) business in the UK and Ireland, today provides its unaudited results for the year ended 30 June 2020 as well as an update on Group trading from 1 July to 11 September 2020. The Group’s subsidiary eLight provides “Light-as-a-Service” (“LaaS”) to businesses and schools to help them switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments.

Financial Highlights for the year ended 30 June 2020:

• Revenue up 14% to £4.5 million (2019: £3.9 million)
• Gross margin increased 510 bps to 35.5% (2019: 30.4%)
• Adjusted EBITDA loss reduced to £647,000 (2019: loss of £799,000)
• Positive operating EBITDA for each month in the fourth quarter
• Loss before tax of £3.2 million (including reverse takeover costs of £1.3 million) (2019: loss of £1.4 million)
• Cash at bank £1.5 million (2019: £196,000) and net debt (including IFRS 16 lease liabilities) of £528,000 (2019: £424,000).

Operational Highlights:

• The Group successfully completed its readmission to AIM on 9 January raising £2.0 million (before expenses)
• Number of LED lighting installations completed at schools and businesses in the UK & Ireland: 125 (2019: 109)
• Expanded eLight operations into Northern Ireland
• New relationships with suppliers led to efficiency gains and boosted gross margins
• Formed partnership with Irish smart energy supplier Pinergy to create a new sales channel.

Trading Update – 1 July 2020 to 11 September 2020

• 64 installations delivered so far in Q1 with revenue of £4 million, nearly 6 times the comparable quarter of FY20 (250% organic revenue growth)
• Significant uplift in new business wins and installation momentum, boosted by installation from contracts won before and during lockdown worth over £1 million
• Positive monthly operating EBITDA (before corporate overheads) has continued into Q1 making it five consecutive months
• Completed first acquisition: Renewable Solutions Lighting Limited (“RSL”), a specialist in providing the UK education sector with fully funded LED lighting solutions
• Secured new project funding partner SUSI Partners AG (“SUSI”). SUSI has provided a facility of up to €15 million to fund LaaS projects in Ireland, giving the Group’s Irish business a significantly enhanced competitive advantage
• The Board continues to expect to achieve breakeven profit after tax for the Group for the six months to 31 December 2020.

Harvey Sinclair, CEO of eEnergy, commented:

“The Company has enjoyed a strong start since its readmission to AIM in January, notwithstanding the challenges and also opportunities presented by COVID-19. In addition to the UK government’s net zero target by 2050, we have seen accelerating interest in Light-as-a-Service, especially from the education sector, as schools seek to reduce costs and carbon emissions. Furthermore, the acquisition of RSL in July has broadened the Group’s exposure to the Academy and state school sector and made eEnergy the market leader in providing Energy Efficiency-as-a-Service to the UK education sector.”

“We are pleased to report that, throughout the lockdown, none of our contracts were cancelled, however a number of installations expected to be completed in the fourth quarter were delayed into the summer. As the Group only recognises revenue at the point of installation, the revenue from these contracts has provided a further boost to the strong first quarter we have experienced. Since 1 July we have completed 64 installations, resulting in a 500% uplift in revenue, 250% organic, compared to the equivalent period of last year and we expect significant comparable growth to continue into the second quarter. Consequently the Board continues to expect the Group to achieve breakeven profit after tax in the six months to 31 December 2020.”

“As well as making progress in growing our LaaS business, eLight, we will continue to assess strategic acquisition opportunities, including exploring new opportunities in expanding our offer in the energy management sector.”

The Group published its last annual accounts for the year to 31 December 2019, covering the period before the reverse takeover of eLight in January 2020 when it was known as Alexander Mining plc. As indicated at the time of the reverse, the financial year-end for the Group was changed from 31 December to 30 June, in line with the financial year-end of the eLight business.

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