Good Energy Group PLC AGM Trading Statement & Investor Presentation (4472R)
June 30 2020 - 2:00AM
UK Regulatory
TIDMGOOD
RNS Number : 4472R
Good Energy Group PLC
30 June 2020
Good Energy Group PLC
AGM trading statement
Good Energy Group PLC, the 100% renewable electricity supplier
and innovative energy services provider ("Good Energy" or "the
Company"), announces a trading update ahead of holding its Annual
General Meeting ("AGM") at 4:00pm today.
The Company will be holding a closed AGM in light of the current
restrictions on social gatherings and unnecessary travel due to
COVID-19. The result of the AGM will be announced on the conclusion
of proceedings.
Current performance
Underlying profitability in the year to date has been in line
with management's expectations. The business continues to operate
contingency plans put in place as a result of the COVID-19
pandemic.
Overall demand within the energy supply segment remained lower
in June, in line with April and May, with an increase in domestic
supply largely offset by a decrease in SME volumes, with half
hourly business volumes also remaining below normal. However, the
Company is starting to see the first signs of increased demand pick
up in some half hourly business segments, which is encouraging.
Alongside the reduction in gross profit due to the reduction in
supply volumes, the Company has also seen a short-term gross margin
impact resulting from wholesale energy price reductions. This
resulted in excess power purchased from Good Energy's independent
generation customer base being fed back into a lower priced market.
Nevertheless, the Company has successfully offset these impacts
through a range of planned efficiencies and management initiatives.
The net result is an underlying profit performance in line with the
Board's expectations.
Good Energy has continued to see modest growth in its FiT
business. Plans to provide additional SMART services have been
impacted by COVID-19 due to delays in home installations.
Management will continue to monitor this situation closely and keep
actions under constant review.
Balance sheet and liquidity
Cash collection in the first half of 2020 has been strong and
remains in line with seasonal expectations. Whilst direct debit
receipts have not been negatively impacted, the Company has seen
some increase in the aging of SME and household debt. This was
anticipated within COVID-19 scenario modelling and the Company is
actively managing the position. It is too early to assess any
trends that may arise and that may impact rates of expected credit
loss provisioning. Good Energy started the current financial year
with a healthy cash position and robust balance sheet and, as at 31
May 2020, this position has been maintained.
Strategic update
Good Energy continues to invest across the business in the
development of energy services and a range of innovation projects
required to deliver sustainable profit growth and supporting the
journey to a zero carbon Britain.
As announced on 25 June 2020, Good Energy increased its initial
12.9% minority stake in Zap-Map to a 50.1% majority equity stake
having exercised the right to convert the convertible debt element.
Good Energy will continue to work closely with Zap-Map to ensure
the delivery of these innovative products and services, including
advisory support to accelerate the implementation of the strategy.
Zap-Map will continue to benefit from the scale and resources
supported by Good Energy, whilst leveraging the expertise of Good
Energy in innovative technology solutions.
Operationally, the Kraken customer service system implementation
and associated operating model transformation is progressing as
planned. Approximately 80% of Good Energy's customers have been
migrated successfully. The Kraken system implementation and
associated operating model transformation is expected to drive
significant operating cost savings and operating leverage by
lowering customer acquisition cost, improving customer retention
and increasing overall customer lifetime value through an improved
offering of products and services.
This will enable more customers to access competitively
positioned clean energy and technology services from Good Energy,
the energy supplier Which? recently gave its highest green rating.
It will enable more people and more businesses to reduce their
carbon footprint, at a time when consumers want to take action to
combat the climate crisis.
Outlook
The Company remains focused on delivering returns alongside
continued investment in people, processes, and technology to enable
customers to take control of their energy usage in the future.
While not discounting the current, and potential impacts of
COVID-19, Good Energy remains cash generative and profitable and
has positioned itself to lower customer acquisition costs, improve
customer retention and increase overall customer lifetime value
while continuing to implement strategic investments and invest in
new growth areas across the business.
The strides taken last year and during the current period ensure
that Good Energy is at the forefront of empowering customers to
use, share, generate and store clean energy. The Company will
continue to target both homes and businesses with an expanded
customer proposition, which can be scaled up rapidly by
cross-selling and up-selling and are excited by the growing
opportunity to provide technology enabled services.
Investor Presentation:
The online presentation is open to all existing and potential
shareholders. The presentation, hosted by Chief Executive Juliet
Davenport and CFO Rupert Sanderson, will commence at 2pm today and
will be followed by an opportunity for Q&A. To register please
follow
https://www.investormeetcompany.com/good-energy-group-plc/register-investor
and add Good Energy to attend the presentation. Questions can be
submitted pre-event via your IMC dashboard or any time during the
live presentation via the "Ask a Question" function. Although the
Company may not be in a position to answer every question it
receives, it will address the most prominent within the confines of
information already disclosed to the market. Responses to the
Q&A from the live presentation will be published at the
earliest opportunity on the Investor Meet Company platform.
For additional information please contact
goodenergy@walbrookpr.com.
Enquiries:
Good Energy Group PLC Via Walbrook PR
Juliet Davenport, Chief Executive
Charlie Parry, Investor Relations
Luke Bigwood, Communications
Investec Bank plc (Nominated Adviser) Tel: +44 (0) 20 7597 5970
Jeremy Ellis
Sara Hale
Walbrook (Financial PR) goodenergy@walbrookpr.com
Nick Rome Tel: +44 (0) 20 7933 8783
Tom Cooper
Notes to editors:
About Good Energy www.goodenergy.co.uk
Good Energy is a generator and supplier of 100% renewable power
and an innovator in energy services. It currently owns two wind
farms, six solar farms and sources electricity from a community of
1,500 independent UK generators.
Since it was founded 20 years ago, the Company has been at the
forefront of the charge towards a cleaner, distributed energy
system. Its mission is to support UK households and businesses
generate, store and share clean power.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGMKKCBKKBKBCAB
(END) Dow Jones Newswires
June 30, 2020 02:00 ET (06:00 GMT)
Good Energy (LSE:GOOD)
Historical Stock Chart
From Apr 2024 to May 2024
Good Energy (LSE:GOOD)
Historical Stock Chart
From May 2023 to May 2024