eEnergy: Interim Results

9th March 2021

eEnergy (AIM: EAAS), the leading “Energy Efficiency-as-a-Service” business in the UK and Ireland, providing Light as a Service (“LaaS”) under the eLight brand and renewable energy consulting and procurement under the Beond brand, today provides its unaudited results for the six months ended 31 December 2020.

Financial Highlights for the six months ended 31 December 2020:

  • Revenue for the enlarged Group up 245% to £6.8 million (H1 2020: £2.0 million)
  • Organic revenue up 140% to £4.5 million (H1 2020: £2.0 million)
  • eLight gross margin increased by 460 bps to 37.1% (H1 2020: 32.5%)
  • Positive operating EBITDA in each business unit
  • Profit before exceptional items (1) of £0.1 million (H1 2020 loss £1.0 million)
  • Cash at bank £2.8 million (30 June 2020: £1.5 million) and net cash (excluding IFRS 16 lease liabilities) of £0.6 million (30 June 2020: £0.1 million).
  • Completed placing to new and existing institutional investors for £3.2 million

Operational Highlights:

  • The Group’s business model has been able to navigate the impact of COVID-19 with new contract wins and accelerated installations in the school holidays
  • Number of LED lighting installations completed at schools and businesses in the UK & Ireland almost doubled in H1 2021 to 111 (H1 2020: 57)
  • The Group completed two acquisitions in line with its “buy and build” M&A strategy
    • In July 2020, the Group expanded its LaaS offering to Academy and state schools through the acquisition of Renewable Solutions Lighting Ltd (“RSL”).
    • In December 2020, eEnergy completed the acquisition of Beond Group Limited (“Beond”), a top 20 UK-based renewable energy consulting and smart procurement business.
  • Project funding partner, SUSI Partners AG agreed to provide a dedicated funding facility of up to €15 million for LaaS projects in the Republic of Ireland.
  • Agreed an exclusive OEM partnership with Venture Lighting Europe Limited to provide the Group with an eLight branded LED technology solution on exclusive terms.
  • Strengthened the Management with appointment of Rob Van Leeuwen as Group Chief Operating Officer in December 2020 and the Board with the appointments of Derek Myers as Chief Innovation Officer in December 2020, and Gary Worby as an Independent Non-executive Director in January 2021.

Harvey Sinclair, CEO of eEnergy, commented:

“The last six months has been transformational for eEnergy which has seen the Group make real progress against its strategic objectives, despite the challenges of the pandemic. We are pleased to have delivered a small inaugural profit, in line with our breakeven guidance. Our core business eLight has begun to scale, almost doubling the number of completed LED installations at schools and businesses compared to the first six months of 2019. Furthermore, the completion of our first acquisition, RSL, has further opened the Academy and State Schools sector in the UK to our Light as a Service offering.”

“With growing pressure across all businesses and public sector organisations such as schools and hospitals, to save money and cut their carbon footprint, we expect further acceleration in interest for our Light as a Service offer to grow considerably in the coming years as evidenced by our growing pipeline of opportunities.”

“In addition to sustained organic growth, our goal remains to build an integrated energy management and energy efficiency platform through our “buy and build” M&A strategy. The integration of RSL has been delivered to plan and we took another significant step with the acquisition of Beond in December, which increases the breadth of our offering to customers from energy efficiency through to energy management. We continue to adopt a disciplined approach to assessing future acquisition opportunities and are currently evaluating several interesting opportunities in our pipeline.”

“Our market-leading, diversified offering continues to underpin the Board’s confidence that the Group will deliver strong growth over the next six months compared to the prior period, especially as the impact of the pandemic begins to ease, with the Board continuing to expect the Group to achieve a breakeven net income (before exceptional items) (1) for the full year to 30 June 2021.”

Note: (1) Profit before exceptional items is the profit before and after tax excluding transaction-related costs and share based payment expenses.

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