Results for the six months ended 31 December 2021

eEnergy Group plc (AIM: EAAS), the digital energy services company, is pleased to announce its interim results for the six months ended 31 December 2021.

Financial Highlights for the six months ended 31 December 2021:

• Revenue for the enlarged Group up 42% to £9.6 million (H1 FY21: £6.8 million).
• Energy Management revenue increased to £4.8 million (H1 FY21: £0.2 million) through underlying annualised growth of 25%, the inclusion of Beond for the full period and the acquisition of UtilityTeam in September 2021.
• Energy Efficiency revenue of £4.8 million was stable with H2 FY21 but down 28% on H1 FY21 (£6.6 million), primarily as a result of the catch up effect in H1 FY21 of projects delayed from the first Covid lockdown.
• Group gross margin increased in the period to 57.6 % (H1 FY21: 38.2%) due to the change in sales mix towards Energy Management.
• Adjusted EBITDA(1) up 117% to £0.8 million (H1 FY21: £0.4 million).
• Profit before exceptional items(2) of £0.2 million (H1 FY21 £0.1 million).
• Cash at bank £2.6 million (30 June 2021: £3.3 million) and net debt (including IFRS 16 lease liabilities) of £1.1 million (30 June 2021: net cash £0.8 million).

Operational Highlights:

• Successful integration of Beond and advanced integration of UtilityTeam, both performing ahead of management’s expectations.
• Increased stake in MY ZeERO from 37.5% to 51% following the successful completion of specific development milestones.
• Contracted forward revenue(3) increased 205% to £18.3 million (31 December 2020: £6.0 million).
• Accelerating pipeline for Energy Efficiency projects – higher value of investment grade proposals(4) issued in H1 FY22 than in the whole of FY21.
• Now ranked as a Top 5 Energy Management provider in the UK by Cornwall Insight.
• Delivered the first integrated onsite solar generation and lighting replacement project
• Secured and installed the first standalone energy data and insights contract for a multi academy trust.
• 108 LED lighting installations completed at schools and businesses in the UK & Ireland in H1 FY22 (H1 FY21: 111).
• 132 MY ZeERO eMeters installed and a further 260 installed or awaiting installation at 28 February 2022.

 

Highlights post period end

• Successfully refinanced all our secured debt with Silicon Valley Bank in February 2022. The £5 million revolving credit facility is at a significantly lower average cost of finance and provides much more flexibility.
• The Company is now able to provide its clients with onsite solar generation and intends to add electric vehicle charging solutions to its offering by the end of FY22.

Full year outlook

• The Group has a growing pipeline of opportunities, which is expected to generate incremental revenue in H2 FY22.
• There are clearly risks outside of the Group’s control, including challenges to contracting new energy supply contracts in the current market environment and timing of customer decisions on Energy Efficiency contracts and installations. However, on balance, and given the full period contribution from UtilityTeam and the strength of the Group’s pipeline of opportunities, the Board expects to trade in line with the current market expectations for FY22.

Harvey Sinclair, CEO of eEnergy, commented:

“eEnergy has made robust progress over the last six months, having successfully integrated the teams at Beond and UtilityTeam, both of which are performing well and ahead of our expectations. Moreover, we are seeing strong momentum with our customers engaging with our newly rolled outsmart metering and energy efficiency as-a-service solutions.

Whilst the volatile market environment represents risks for our business, the ongoing energy crisis and the resulting increase in energy prices has provided an inflection point for our business. Our customers recognise the commercial significance of reducing energy wastage now more than ever. We are one of the only businesses that enable customers to reduce their energy consumption as well as generate their own energy without the need for capital investment.

Additionally, the broader macro conditions and clear regulatory drivers continue to be a tailwind for the business, and the Board believes this provides the Group with improved organic structural growth drivers.”

The film below, shot at last year’s full year results, outlines eEnergy’s services and growth strategy