Acquisition of Empower Energy for up to £8.0 million

Good Energy Group PLC (AIM: GOOD), the 100% renewable electricity supplier and energy services provider, is delighted to announce that it has entered into a conditional binding agreement to acquire Empower Energy Limited (“Empower”), a commercial focused solar installation company (the “Acquisition”) with nationwide installation capabilities. The Board expects the Acquisition, coupled with the acquisition of Amelio Enterprises Limited (“Amelio”) on 4 October 2024, to be substantially earnings enhancing in FY25 and beyond.

This is the fifth acquisition Good Energy has made in the past two years, and the fourth in solar installation services. The combination of Empower, the recently-acquired Lincolnshire based Amelio, and Good Energy’s existing solar installation capability across the south, represent a major step towards completing Good Energy’s strategic objectives in the solar installation market.

The Acquisition has enabled Good Energy to continue to scale its commercial installation capacity. Empower, alongside Amelio, materially accelerate the Group’s progress in developing its services proposition to become the dominant contributor to profits and will make a material contribution to the Group’s earnings from 2025 onwards.

Transaction highlights:

• Good Energy will acquire 100% of the issued share capital of Empower on a debt-free, cash-free, basis for an initial consideration of £7.0 million. The initial consideration will be satisfied by a payment of £6.25 million in cash upon completion, and through the allotment of 254,237 new ordinary shares of 5 pence each in Good Energy at a price of 295 pence per share (the “Consideration Shares”). The Consideration Shares will be retained by the vendors and will be subject to a twelve-month lock-up period and a further 12 month orderly marketing period.
• Further deferred consideration of £1.0 million is payable in cash in January 2026, subject to certain retention arrangements relating to Ryan McShea, Founder and Managing Director of Empower.
• For the financial year ended 31 August 2024 Empower reports unaudited revenue of £10.1 million and profit before tax of £1.8 million.
• Ryan McShea will join Good Energy as part of the Acquisition to support the growth and integration of Empower into the Group.
• Able to service clients nationwide, but with a particular focus on its core territory of Hampshire and the South of England, Empower will significantly increase the commercial business footprint of Good Energy’s installation capability.
• The Acquisition will be funded from Good Energy’s existing resources whilst retaining a healthy cash balance to support the continued organic growth of the Group.

An application was made to the London Stock Exchange plc for the admission of the Consideration Shares to trading on AIM (“Admission”). Admission is expected to take place on 29 October 2024. Following Admission, the Company will have 18,506,399 Ordinary Shares in issue. There are no shares held in treasury. Therefore, the Company hereby confirms that the total number of voting rights in the Company will, following Admission, be 18,506,399. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Nigel Pocklington, CEO of Good Energy, commented:

“Businesses are increasingly recognising that the commercial rationale for installing solar is strong, even before you consider the associated benefits of carbon reduction. With energy costs remaining high, businesses and organisations with rooftop real estate can achieve excellent returns on investment.

“Good Energy is already providing high quality, consultative commercial solar installation services to customers in the South, and through Empower joining the Group we are stepping this up further. Offering commercial solar installation backed by 15 years of experience nationwide, Empower accelerates Good Energy’s solar service offering.

“As the fourth solar acquisition Good Energy has made in 18 months and the second in only weeks, we have rapidly scaled our service coverage and capability. We will now be focussed on integrating these businesses under the Good Energy brand, leveraging our increased operational scale and vertical integration to provide a cohesive experience for commercial customers looking to cut their energy bills and their carbon through installing solar.”

CEO Nigel Pocklington provides an overview of the period in the video below: