Strong growth, oversubscribed share offer and accelerated investment
Posted on: 21.07.2016
Good Energy Group PLC, which supplies and generates 100% renewable electricity and carbon neutral gas to UK homes and businesses, is pleased to provide the following trading update for the first six months ended 30 June 2016.
- Strong growth in overall customer meter points up 36% to 239,750.
- Achieved industry-leading customer advocacy scores (net promoter score).
- Significantly oversubscribed share offer raising £3.1m.
- Increased competitiveness of our gas product and launch of a carbon neutral green gas proposition.
- Signed a contract for a new SMART-ready customer management and billing system expected to be delivered in H2 2016 as well as embedding our new financial system.
- Completed the sale of a 5MW solar site.
- Achieved our highest ever brand awareness of 6.7%
- Won the Renewable Energy Association customer service and company of the year awards.
- Full year results remain in line with expectations.
Juliet Davenport, Good Energy founder and Chief Executive said:
"Good Energy has made a strong start to 2016 with customer meter points up 36% and our highest ever brand awareness. We were particularly pleased with our net promoter scores highlighting our customers' advocacy of Good Energy."
"Customer advocacy and support has always been key to Good Energy's success and we were delighted with the overwhelming uptake to our latest share offer with the majority of funds coming from our existing customers, shareholders and bondholders. This was our most successful share raise since we listed on AIM and we welcome our new shareholders to the Good Energy family."
"With 17 years of trading behind us, our clearly defined proposition of ethical principles, award winning customer service and independently certified 100% renewable electricity and carbon neutral green gas propositions, Good Energy continues to appeal to new customers."
"We continue to make rapid progress in delivering our strategic plan by investing in new systems. These systems will form the foundation on which our future growth will be built.
In the first six months of the year, the Company has maintained strong customer growth against a competitive landscape with margins in line with expectations whilst improving the competitiveness of our domestic gas proposition.
The site sale that was originally anticipated to take place in H2 2015 transacted in H1 2016 providing Good Energy a net profit of between £430k to £480k. The impact of this sale is already included in the market forecast of our full year results.
The Company completed a successful share raise of £3.1m before costs in H1 2016. The offer was significantly oversubscribed and the funds raised will be used to further strengthen the Company's balance sheet, accelerate investment in our operational platform and maximise the value of our generation portfolio.
Given current trading, continued growth in customer meter points and performance across the generation portfolio, we expect the full year result to be in line with expectations.
Customer Meter Points
|1H 2016||1H 2015||Change|
Electricity customer meter points grew by 31% to 72,250 (H1 2015 55,000) and gas customer meter points by 54% to 43,000 (H1 2015 28,000). This strong growth was the result of a collective switch in H2 2015 and continued underlying demand for the Company's 100% renewable electricity and carbon neutral green gas propositions. The Company will continue to explore new mass acquisition channels as part of our ongoing growth strategy.
FiT customers grew by 33% to 124,500 (H1 93,500) primarily driven by the Government changes to the FiT scheme coming into effect in H1 2016. While we see future growth opportunities in the FiT market, we do not expect customer growth to continue at the same pace as recent periods.
During the period the Company connected its latest 5MW solar farm in Dorset increasing the Company's generation portfolio to 52MW. An additional 5MW is expected to be completed in the second half of the year and qualifies for subsidy support under the renewable obligations grandfathering criteria.
Research and Product Innovation
The research and product innovation team is involved in several UK first of their kind projects looking at the ability to sell and match energy from renewable generation sites to consumers.
Earlier this year the Company successfully concluded a trial of the UK's first 'peer-to-peer' energy trading platform with Open Utility. The trial gave business consumers and power generators the freedom to buy and sell local renewable electricity. Following the completion of the trial the Company is working with demand and generation trial users to assess the wider commercial opportunities for the platform.
Notice of Results
The Company will announce its interim results for the six months ended 30 June 2016 on 13th September 2016.
For further information please contact:
Arden Partners plc (Nomad) 0121 423 8900
Camarco (Financial PR Adviser) 020 3757 4980
Good Energy Press Office 01249 478 358
Notes to editors
- Good Energy is a fast growing 100% renewable electricity supply and generation company, offering award-winning customer service.
- An AIM-listed PLC, and founder member of the Social Stock Exchange, its mission is to support change in the energy market, address climate change and boost energy security.
- The company has consistently performed well in the annual Which? energy company customer satisfaction survey, winning first or second place in each of the last four years.
- It now has more than 72,250 renewable electricity customers and 43,000 carbon neutral gas customers. It also provides Feed-in Tariff administration services to more than 124,500 sites. (All figures as at 30 June 2016)
- Good Energy is the owner of Delabole Wind Farm, the UK's first commercial wind farm and owns and operates Hampole Wind Farm, near Doncaster. The company also owns and operates seven solar farms.
- Good Energy received a net promotor score of 46 from electricity and gas customers and 50 from FiT customers. This compares to the average Big Six rating of -29. A net promoter score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. It is used as a proxy for gauging the customers overall satisfaction with a company's product or service and the customer's loyalty to the brand.
- Good Energy has won a number of awards including Renewable Energy Association Company of the Year Award 2016, Business Green Company of the Year 2015, and, was named Social Impact Company of the Year at the 2014 and 2015 Small Cap awards.