Good Energy has delivered another year of robust growth, while focussing on improving operational efficiency. These results demonstrate the underlying strength of our business model given the tough conditions in the UK energy supply market.
During the year Good Energy has made good progress on its strategic evolution within an energy market that is in transition.
Our Market: Opportunities & Challenges
In 2017, increased competition and wholesale market volatility led to difficult market conditions for UK consumer energy supply businesses. While we expect these conditions to continue in 2018 in the consumer market, the business customer market, the business customer market is less challenged by these factors and is one where Good Energy is successfully strengthening its position.
Addressing climate change remains a priority for the developed and developing world. In 2017, the UK government published its Clean Growth Strategy, setting out a blueprint for Britain’s low carbon future and increasing the market for Good Energy and our zero-carbon focus.
The UK energy market is changing. Good Energy is focussed on its strategic evolution within this changing landscape, and believes that the future value lies in the provision of integrated green energy services within an increasingly decentralised market.
A key focus of management and the Board is overseeing a strategy for growth and evolution that will maximise the long term value we can deliver to stakeholders and keep step with changes in the market.
Our strategy centres on building on our success, developing the long term profitability of Good Energy, and investing in the future as an integrated green energy services company.
In recent years the economics of generation development have shifted in favour of large-scale players. Our previously announced move away from generation development frees up capital and management time to allow the company to expand into growing areas of demand that are consistent with our purpose. Our pilot in battery storage and electric vehicle charging activities at the end of 2017 are examples of this.
As Good Energy continues its strategic evolution, I would like to thank our people, our customers and shareholders for their ongoing support and commitment to the company and our objectives. We are proud that a significant number of our customers also choose to invest in Good Energy as shareholders, or as bond holders, or in many cases as both.
Tim Jones joined the Board in December, replacing Francesca Ecsery who stepped down as planned following Tim’s appointment. Tim has over 20 years’ experience in leading digital innovation, execution and operation at Moneysupermarket.com Group PLC and Trader Media Group (now known as Autotrader plc). His experience of delivering business transformation through digital innovation compliments Good Energy’s strategic focus.
On behalf of the Board I would like to thank Francesca for her valued support to Good Energy during her time with the company, and welcome Tim.
Denise Cockrem who has been Chief Financial Officer and an Executive Director of the Board since 2014, will step down from these positions at the end of March 2018. Rupert Sanderson, Good Energy’s Finance Director will take over Denise’s leadership of our financial functions from April in a smooth transition, and will report to the Board on financial matters. Stephen Rosser will take over responsibility for Risk Management.
I would like to thank Denise for her valuable contributions to Good Energy’s development over recent years.
2017 Ecotricity General Meeting proposal
In July the Company received a requisition on behalf of Ecotricity Group Limited for a general meeting of the Company’s members to consider the appointment of two Ecotricity executives as directors of the Company. Ecotricity withdrew its requisition after the general meeting had been convened but before the general meeting took place.
As communicated to shareholders in August 2017, the Board unanimously recommended that Shareholders vote against such proposal due to the inherent conflict of interest and commercial and strategic risks to Good Energy. We recognise and thank customers, shareholders, and other stakeholders for the support we received regarding the matter.
Good Energy has robust corporate governance, exceeding the requirements for AIM listed companies, and wherever appropriate aligning with best practice of the UK Corporate Governance Code.
The Board has a strong mix of skills and experience at a Non-Executive level to continue to provide strong corporate governance and challenge to management.
Good Energy aims to deliver a progressive ‘green’ dividend policy. The policy has the objective of increasing the dividend over time as profitability grows to provide an appropriate return to shareholders while also maintaining and balancing the ability to invest in long term growth opportunities.
The Board has recommended a final dividend for 2017 of 2.3p per ordinary share.
In 2018 we expect to deliver a full year performance in line with current market expectations, as we see the benefits of management actions to evolve the business and continue our strategic evolution as an integrated green energy supplier.
11 April 2018