Harvey Sinclair, CEO of eEnergy: Robust progress in H1 and strong momentum with forward contracted revenue up by 205%

Harvey Sinclair, CEO of eEnergy #EAAS discusses their robust progress in H1 and how the strong momentum is continuing with forward contracted revenue, up by 205% to £18.3 million.

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.

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 EV charging.

eEnergy currently manages 5.3TWh of energy for 2,200 customers across the public and private sectors.