Ongoing progress transitioning for long-term sustainable growth
Good Energy Group PLC, which supplies and generates 100% renewable electricity and carbon-neutral gas to UK homes and businesses, today announces its results for the six months ended 30 June 2017.
Financial highlights (continuing operations)
- Revenue is up 16% to £52.0m (H1 2016: £44.8m) driven by business volume consumption growth
- Gross profit of £14.4m (H1 2016: £14.8m); gross profit margin of 28% (H1 2016: 33%), reflecting lower gas usage, the increasing proportion of lower gross margin business customers in our customer mix, and our decision to freeze price rises until March
- Profit before tax decreased 37% to £0.7m (H1 2016: £1.2m), including restructuring and investment costs of £0.9m year to date
- £16.8m gross funds raised from our second corporate bond, reducing our ongoing financing costs
- Net debt at £60.4m as at 30 June 2017 following success of Good Energy Bonds II (H1 2016: £50.7m)
- Total customer meters increased by 5% up to 251,800 (H1 2016: 239,750) driven by a growth in Feed-in-Tariff (“FIT”) customer meters
- Continued strong demand from business customers with Neal’s Yard Remedies, BAFTA and Hay Festival recently signing up – half-hourly volume supplied increased 103%
- Electricity and gas meters both decreased slightly from H1 2016 and are down by a combined 1% due to higher churn from maturing collective customer switch deals
- The first phase of restructuring Good Energy to make it more efficient and Fit-for-Growth is well underway. Annualised savings of £1m already delivered in 2017, with further cost and efficiency savings expected in 2018
“So far in 2017 we’ve made very good progress on the strategic direction of Good Energy by adapting our business model in a highly competitive and dynamic energy market.
Our Fit-for-Growth programme and investment in our digital capabilities and systems are crucial first steps and, with further investment in our core business and the start of our new propositions in electric vehicles and storage planned in the second half of the year, we believe Good Energy is well positioned to succeed in the energy marketplace for the future.”
Juliet Davenport OBE, Chief Executive
Read the full notice here