TIDMEAAS
RNS Number : 2023K
eEnergy Group PLC
04 May 2022
4 May 2022
eEnergy Group plc
("eEnergy" or "the Group")
eEnergy Trading update and Board Change
eEnergy (AIM: EAAS), the digital energy services company, today
publishes an update in respect of the current financial year to 30
June 2022.
Summary
-- The Board is pleased with the strategic progress to date
o Integration of UtilityTeam on track to be delivered by end of
the financial year
o Record contract signings (including renewals) in Q3 of GBP8.6
million
o Recent launches of Solar and EV Charging solutions generating
higher than expected levels of customer engagement
o Strong revenue and earnings trajectory in the business, with
the exception of Ireland
o Robust long-term market opportunity with increased focus on
renewables
-- The Board is now expecting revenue and Adjusted EBITDA to be
behind current market expectations for the current financial year
as a result of:
-- Ireland business has experienced longer Covid lockdowns with
slower than expected recovery post first half results
-- Customers are entering into larger multi-service contracts
resulting in longer conversion times from signing to
installation
-- The Board expects to deliver approximately GBP23.0 million of
Revenue and approximately GBP3.0 million Adjusted EBITDA for
FY22
Trading update
In Q3 FY22, the Group delivered strong new customer wins across
its two core divisions of Energy Efficiency and Energy Management,
signing GBP8.6 million of contract value across a broad range of
Education, other Public Sector and C&I customers. This momentum
has continued into the start of Q4 with further increases in the
new business pipeline expected as commercial energy users seek to
mitigate price increases through smart procurement, onsite
generation and reducing consumption through energy efficiency
measures.
At 31 March, contracted forward revenues had increased to
GBP23.0 million from GBP18.0 million at 31 December 2021. GBP19.6
million of this related to energy management and GBP3.4 million
related to energy efficiency contracts. Of the GBP23.0 million,
approximately GBP8.3 million is expected to be recognised in
FY23.
The Group is pleased to announce that the recent launch of
eCharge, its EV charge point operating business which is aiming to
create the UK's largest public sector charging network, has
exceeded management's early expectations, with a strong pipeline of
opportunities from existing group customers built within the first
30 days of launch.
Demand from both existing and new customers for onsite solar
generation has been significant given the sharply improved spread
between implied cost per KwH for onsite generation and grid energy
prices. The Group is developing its solar capability in response.
During Q3 and Q4 to date, Heads of Terms have been signed for
GBP7.8m contract value of onsite solar with existing customers
which the Board expects will convert to revenues during H1
FY23.
Outlook
The Group continues to have a growing pipeline of new business
opportunities across both Energy Management and Energy Efficiency
which the Group expects to convert during H1 FY23.
As previously reported, H1 FY22 revenues suffered from the
negative impacts of Covid lockdowns on the pipeline in Energy
Efficiency, in addition to disruption caused by the energy crisis
sparked by the conflict in Ukraine, which impacted Energy
Management. Ireland, in particular, has suffered from harsher and
longer lockdowns during the period. At the same time, lead times
from sale to revenue have increased as the Group expands the value
and breadth of its contracts, due in part to the increased interest
from customers seeking more than one of its services.
As a result, the Board is now expecting revenue and Adjusted
EBITDA to be behind current market expectations for the current
financial year with revenue of approximately GBP23 million (up c.
70% from GBP13.6 million in FY21) and Group Adjusted EBITDA of
approximately GBP3.0 million (up c. 250% from GBP0.8 million in
FY21).
In FY23 the Board plans to increase operational investment, in
particular through eCharge and onsite solar generation, to
capitalise on enhanced long-term growth opportunities presented by
the energy crisis. As a result, the Board expects lower Adjusted
EBITDA margins in FY23 than current market expectations whilst
still delivering improved margins over FY22.
Management and Directorate changes
Ric Williams, Chief Financial Officer, has advised the Board of
his intention to step down from the Board to pursue other
opportunities. Ric will leave the Company on 31 July 2022 following
an orderly handover process. The Board would like to thank Ric for
his contributions to the growth of the business and its transition
to an integrated energy services business and wishes him well in
his future ventures.
Crispin Goldsmith, a member of the Group Executive team and
currently Chief Strategy & Commercial Officer, has been
appointed by the Board as Interim CFO.
Crispin has over 20 years of experience in corporate finance and
M&A and substantial board level experience across a range of
businesses. His previous roles include Director of Strategy and
Corporate Development at Dixons Carphone, Investment Director at
Duke Street, a leading UK private equity firm and Director at Royal
Bank Equity Finance, the manager of the GBP1.1 billion RBS Special
Opportunities Fund. Crispin started his career at PwC where he
qualified as a Chartered Accountant.
The Board expects to confirm Crispin's permanent appointment as
CFO and as a Group Board Director once customary due diligence by
the Company's nominated adviser is completed.
Harvey Sinclair, CEO of eEnergy Group plc, said, "As announced
in our Half Year results, the financial performance of the Group
was broadly in line with our expectations and Q3 saw record
contract signings with customers responding to higher energy
prices. We are pleased to see this momentum continuing with a
strong start to Q4 and a robust sales pipeline to take us into
FY23.
"Despite these gains, the impact of covid lockdowns in H1 has
continued in Ireland which has seen a slower than expected
recovery. Adding to this, we are seeing longer lead times between
signing and project completion for the larger, multi service
contracts we are now winning. Whilst this is inherently a positive,
the longer lead times means certain contracted revenues will now
fall after the financial year end.
"The Board is pleased with the new business pipeline momentum
which is not only seeing cross selling of services to existing
clients but also to new customers seeking multiservice Net Zero
strategies across our energy efficiency and energy management
divisions. We continue to invest in new products and services and
are excited by the launch of eCharge and our onsite solar power
generation offering which has met with strong demand."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. The person responsible for
arranging for the release of this announcement on behalf of eEnergy
is Harvey Sinclair, Chief Executive Officer.
--- END ---
Contacts:
eEnergy Group plc Tel: +44 20 7078
9564
Harvey Sinclair, Chief Executive Officer info@eenergyplc.com
Ric Williams, Chief Financial Officer ; www.eenergyplc.com
Singer Capital Markets (Nominated Adviser Tel: +44 20 7496
and Joint Broker) 3000
Justin McKeegan, Mark Taylor, Asha Chotai
(Corporate Finance)
Tom Salvesen (Corporate Broking)
Turner Pope Investments (Joint Broker) Tel: +44 20 3657
0050
Andy Thacker, James Pope info@turnerpope.com
Tavistock Tel: +44 207 920
3150
Jos Simson, Heather Armstrong, Katie Hopkins eEnergy@tavistock.co.uk
About eEnergy Group plc
eEnergy (AIM: EAAS) is a digital energy services company,
empowering organisations to achieve net zero by tackling energy
waste and transitioning to clean energy, without the need for
upfront investment. It is making net zero possible and profitable
for all organisations in four ways:
-- Transition to the lowest cost clean energy through our
digital procurement platform and energy management services.
-- Tackle energy waste with granular data and insight on energy
use and dynamic energy management.
-- Reduce energy use with the right energy efficiency solutions without upfront cost.
-- Reach net zero with onsite renewable generation and electric vehicle (EV) charging.
eEnergy is a Top 5 B2B energy company, currently managing 4.2TWh
of energy for 1,800 customers across the public and private
sectors.
eEnergy has been awarded The Green Economy Mark by London Stock
Exchange.
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END
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May 04, 2022 02:02 ET (06:02 GMT)
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