Agenda
Overview
Nigel Pocklington, CEO
Financial performance
Rupert Sanderson, CFO
Strategic update
Nigel Pocklington, CEO
2 3-7 8-19
Q&A
Nigel Pocklington, CEO Rupert Sanderson, CFO
Interim Results | © 2023 Good Enaergy. Private & Confidential
20
Overview
The business has undergone a significant transformation in the last 12 months, from renewable supplier to services provider
Strong growth in operating profits
Revenue growth
- Revenue growth of £6.0m, up 2.4% versus 2022.
£m
- Pricing reflects high commodity cost environment when entering 2023. Revenue
- 2024 will show falling revenues reflecting lower commodity costs and associated tariffs.
Commodity prices - Commodity cost fall of £8.3m (-3.8%), versus 2022.
Cost of Sales
Gross Profit
Administration Costs
Other Operating Income
- Advantaged hedge position in H1 drove strong profitability. H2 a loss as Operating Profitexpected, with a return to more normal margins expected in 2024 as commodity prices stabilise.
An evolving P&L
- Growth in overhead includes £4.2m investment into services business during 2023 (Works & Wessex) to deliver on strategy.
- Zapmap accelerates its development phase.
- Other admin costs include ECL and regulatory costs.
Net Finance Income
FY23
FY22
Delta
254.7
248.7
6.0
(210.5)
(218.8)
8.3
44.2
29.9
14.3
(37.3)
(28.1)
(9.2)
0.2
0.1
0.1
7.1
1.9
5.3
0.6
0.3
0.3
Share of Loss in Associate
(2.0)
(0.7)
(1.3)
Gain on loss of control of subsidiary
-
7.8
(7.8)
Profit before tax
5.7
9.2
(3.5)
Tax charge
(2.8)
(0.6)
(2.2)
Profit after tax
2.9
8.6
(5.7)
PBT development
Margin upside peaked in H1 2023. H2 performance was marginally ahead of expectations.
Expansion into energy services brings forecast additional costs in 2023 and sets the business up for future years.
Cashflow statement
Strong operational performance
Strongly cash generative in 2024 but:
˜ Customer credit balances growth of £9m - reflective of volatile wholesale costs, this will unwind over 2024.
˜ Ongoing requirement to hold cash for Working capital, Short term risk buffer, Regulatory commitments on credit balances/ROCs.
˜ £2.5m generated by releasing cash from security deposits.
Investing for growth
˜ £2.5m invested into Wessex, on acquisition.
˜ £4.2m invested into developing Works, Wessex and services offering during 2023.
˜ JPS purchase concluded Feb 2024.
Year End £(000)s | FY 2023 | FY 2022 |
Operational cashflows before working capital | 11,330 | 2,130 |
Working Capital movement | 9,301 | 3,050 |
Cash generated from operations | £20,631 | £5,180 |
Finance and tax cost | -£387 | -£53 |
Net cashflow from operating activities | £20,244 | £5,127 |
Net cashflow (used in)/from investing activities | -£2,369 | £14,998 |
Net cashflow used in financing activities | -£1,015 | -£2,337 |
Net increase in cash and cash equivalents | £16,860 | £17,788 |
Cash and cash equivalents at beginning of year | £24,487 | £6,699 |
Cash and cash equivalents at end of year | £41,347 | £24,487 |
Memo: | ||
Credit balances in above numbers | £13,935 | £4,876 |
Security balances excluded above | £5,912 | £8,462 |
Capital allocation
- Substantially debt free with strong available cash balance of £21.2m* (2022 equivalent £14.6m).
- Further M&A in energy services to expand regional footprint - JPS Acquisition Feb 2024.
- £11m invested in solar and heat installation businesses. Updated segmentation reporting from 2024 to reflect evolution of business.
- Dividend of 2.25p final dividend (2022: 2.0p).
*2023 Available cash based on £41.3, less balance sheet debt £6.2m and £13.9 customer credit balances 2022 Available cash based on £24.5m less balance sheet debt £5.1m and £4.8m customer credit balances
Strategic update
The UK energy supply market will be transformed over the next 10 years
Mass transition towards small-scale, low
carbon
Solar and storage
- UK Solar market worth £1.9bn*, installations +38% in 2023
- Market anticipated to be worth £4.6bn* by 2030:
+11% CAGR.
Heat pumps
- Air source heat pump installations grew 20% in 2023 to over 35,000, grant increased to £7,500.
- UK government target of 600,000 installations per year by 2028.
Cumulative installs (millions)
Annual installs (000s)
Solar installs <50kW (cumulative)
Solar installs <50kW (annual)Heat pumps (cumulative)
Heat pumps (annual)
Source: *MCS data base 2023. Domestic market <50kw.. UK Government solar deployment targets. LCP Delta.
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Disclaimer
Good Energy Group plc published this content on 25 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 11:02:04 UTC.