eEnergy Group Announces Preliminary Results

Source: 11/25/2022, Location: Europe

eEnergy (EAAS), the Net Zero energy services provider, is pleased to announce its preliminary results for the year ended 30 June 2022 ("FY22").

Financial highlights

- Revenue up 63% to £22.1 million (2021: £13.6 million)
- Energy Management revenues of £11.6 million (2021: £2.2 million)
- Energy Services revenues of £10.5 million (2021: £11.4 million)
- Adjusted EBITDA (1) up 264% to £3.0 million (2021: £0.8 million)
- Profit before tax and exceptional items (2) of £1.6 million (2021: profit of £0.1 million)
- Contracted future revenues increased 384% to £25.3 million (2021: £5.2 million)
- Energy Management revenues 20% higher than pre-acquisition revenues of Utility Team and Beond combined
- A year of significant investment in launching the integrated eEnergy proposition
- Today, separately announced a £2.5 million capital raise through a new sub-ordinated debt facility from Hawk Investment Holdings, an existing shareholder of eEnergy, FFIH, a new strategic investor, and all Directors of the company in order to strengthen the Group's balance sheet to address a tightened liquidity position and to support growth of the business and continued investment in eEnergy's market leading platform

Operational achievements

- Margins maintained or improved across Energy Management and Energy Services divisions
- The launch of a single, clear and integrated proposition, under the eEnergy brand
- Established robust cross-sell proposition and process
- Acquisition of UtilityTeam completed in September 2021 and integrated into a single Energy Management business during the year
- Increased ownership stake in measurement platform MY ZeERO from 51% to 85.5%
- Delivered commercial launch of MY ZeERO with 898 smart meters ordered for a total contract value of £1.1 million with 559 installed as at 30 June 2022
- Launched new services eCharge and eSolar, both of which have delivered strong organic growth
- Strengthening of the leadership team of both Energy Management and Energy Services
- Extension of the project funding facility with SUSI Partners

FY2023 Trading and Outlook

- The Board believes the business has seen an inflection point in revenue and earnings as a result of the energy crisis which has driven strengthening customer appetite through enhanced financial returns from tackling energy waste and migrating to Net Zero
- This has contributed to a strong start to the year with Q1 £7.6 million revenue, up 90% on prior year
- Q1 Energy Services sales of £4.1 million TCV, up 120% on same period last year, record month in October with sales of £3 million in the month. This equates to average TCV sales per quarter since January of £4.6 million
- TCV of £15.6 million signed since 1 January 2022 up 77% on same period last year, including £5.3m TCV with existing customers
- Contracted future revenues ('Forward Order Book') in Energy Management at 30 September 2022 of £25.4 million, up 39% since 31 December 2021 and 18% since 30 June 2022
- Contracted future revenues in Energy Services of £3.1 million at 30 September 2022, implying c.69% coverage of Q2 revenue budget. "Forward Order Book" increased in Q2 to imply 100% coverage for Q2 revenue target
- Total value of proposal pipeline (excluding Solar) for installation this financial year up 16% year-on-year (as at 30 September 2022), with 42% of the pipeline from repeat customers and 51% in Education.
- 8.9 MW of solar projects under Heads of Terms as at end September 2022, forecast to convert to c. £1.5 million margin contribution during H2
- Awarded a framework agreement with a multi-academy trust for LED lighting projects over 48 academies for an estimated £2.5 million in revenues, subject to survey and contracts, expected in the coming months (to be funded using trade creditor facilities)
- Average contract duration in Energy Management of 28 months at 30 June 2022, up 27% from prior year
- Strong contracted forward order book and year-to-date trading gives visibility on delivering H1 budgeted revenue
- However, the Company has experienced a tightened liquidity position subsequent to the year-end. As at 31 October 2022, prior to drawdown on the new subordinated debt facility, the Company had a cash balance of £114k
- In addition to the new £2.5 million subordinated debt facility, the Board has taken a number of working capital and trading initiatives in order to mitigate this and improve cash generation going forward
- The Group continues to expect material year-on-year Revenue and EBITDA growth for FY23, benefiting from strong organic growth

Commenting on the results, Harvey Sinclair, CEO, said : "This financial year has been pivotal for eEnergy as we have invested in launching our unified proposition under a single integrated brand. We have continued to grow organically and through acquisition, and the volatility seen across the energy sector has only made our offering more attractive. These huge tailwinds continue to present the Company with significant opportunities and our forward order book has never been stronger.

"We have continued to launch innovative products and services allowing our customers to accelerate their Net Zero strategies with no upfront capital investment. Following record revenues in Q4, we entered the new financial year with a strong new business pipeline and a contracted forward order book of £25 million. Post year-end we have raised additional capital through a new subordinated debt facility in order to strengthen the Group's tightened liquidity position. The Board is encouraged by the macroeconomic outlook and is confident in the long term prospects of the business as the UK continues on its journey to be Net Zero by 2050."

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