Good Energy profitable half year as services business expands in normalising market

Good Energy Group PLC (AIM: GOOD), the renewable electricity and energy services provider, today announces its interim results for the six months ended 30 June 2024.

Financial highlights

• Full year profit expectation unchanged, strong first half of the year during a period of normalised trading and stability, with solid profit in energy supply and promising indicators from consolidation in services:
  • Reported profit before tax of £4.4m, 78% of 2023 FY profit (2023 H1: £13.1m and FY 2023: £5.7m)
  • Revenues of £97.4m (2023 H1: £156.1m and FY 2023: £254.7m). Revenues are directly linked to externally driven commodity costs. In H1 2024 both revenue and costs of sales reduced replicating the reductions in wholesale costs seen since the start of 2023.
  • Reported gross profit decreased 28% to £23.6m (2023 H1: £32.7m). Gross margin increased to 24.3% (2023 H1: 20.9%).
  • Operating profit of £4.8m (2023 H1: £14.1m)
  • Reported profit after tax of £2.6m (2023 H1: £12.0m). 2024 profitability following a more normalised profile, in comparison to 2023 where an abnormal H1 operating profit was followed by very tough margin position in H2 2023.
  • Reported earnings per share of 15.6p (2023 H1: 72.0p).
  • Cash and cash equivalents of £39.9m (FY 2023: £41.3m) reflecting £6m of cash generated from operations and ongoing focus on working capital management.
  • Interim dividend of 1.1p (2023 H1: 1.0p).

Operational highlights

• Performing on track as the market normalises, with solid profit in energy supply and consolidation in services.
• Acquisition of second solar installation business.
  • £7m initial investment in JPS Renewable Energy Limited in February 2024, in part funded via £2.1m share issuance, with the remainder paid in cash.
  • Establishes capability for solar installation services across the South of the UK.
  • Three acquisitions undertaken in the past two years, two businesses are now fully integrated into the Good Energy brand, with JPS to follow.
  • Additional investments in other energy services businesses are being actively considered with a view to expanding regional footprint.
• Full greener home and business solutions positioning in market as installation services including heat pumps, solar, storage and EV charging are established under the Good Energy brand alongside supply and export.
• Evidence that there is customer demand for a more straightforward trusted provider for multiple energy services with 18% of solar sales coming from existing Good Energy customers (supply and Feed-in-Tariff).
• Established as the microgeneration specialist with 20% share in solar export, and a premium solar install services in an increasingly positive policy environment.
• Innovating in supply with hourly renewable matching for businesses, enduring derogation from the price cap in domestic market due to material support for renewables above and beyond existing subsidies.
• Time of use and flexibility tariffs for storage, heat pumps and electric vehicles going to market.
• Passed milestone of 50,000 smart meter installations shortly following end of period.
• B Corp certification secured in July 2024, further establishing the credibility of the Company’s high environmental, social and governance standards.
• The Company maintains 49.9% ownership of Zapmap, the UK’s leading EV charging app now with over 900K registered users as it focuses on achieving profitability in core UK market. Further invested in June 2024 through loan of £1.7m which can be converted to further equity.

Outlook highlights

• The Company is now positioned to offer ‘whole greener home and business’ energy services to customers, including supply, export, installation service and flexibility.
• Solar installation capability across the South – rooftop solar in the region indicated to be a nationally important strategic pillar of the recently appointed government’s energy strategy.
• Installation services are actively integrating into the Good Energy brand with completion of Wessex ECOEnergy rebrand to Good Energy Solar South West.
• Active consideration of further acquisitions underway to solidify offering and accelerate growth in services.
• With around 20% share of domestic scale solar export customers including Feed-in-Tariff (“FIT”) and smart export, Company is positioned as the microgeneration specialist and well positioned for growth in this market.
• Innovation and research in flexibility developing into products which optimise customers’ energy use with grid demand – providing value for customers, the grid and the Company – entering the market over next six months.
• Zapmap continues to grow both in users and in commercial agreements across its app, data and insights offering. Good Energy maintains largest share of business in addition to recent loan providing options for additional equity.

Nigel Pocklington, CEO, Good Energy Group PLC:

“As the energy supply market has normalised, we have shown strong profitability in the first half of the year, whilst our expansion into energy services is showing promise as we consolidate our offer to customers.”

“Having completed three acquisitions in the clean energy installation services space we are now offering solar, storage, heat pumps and EV charging across the South – a trusted, truly green brand offering whole greener home and business solutions. Good Energy is established as the microgeneration specialist, with a significant market share of rooftop solar customers, leading export tariff rates and premium installation services.”

“In a favourable policy environment promising an imminent ‘rooftop revolution’ as the new government accelerates the clean energy transition, Good Energy is well placed for growth.”

News in full

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