eLight Trading Update

RNS Number : 4967R

eEnergy Group PLC

30 June 2020

 

30 June 2020

eEnergy Group plc

("eEnergy" or "the Group")

eLight Trading Update

Change to Financial Year End

eEnergy (AIM: EAAS), a leading "Energy Efficiency-as-a-Service" (EEaaS) business in the UK and Ireland, provides an update on trading for the financial year ending 30 June 2020 and confirms a change to its financial year-end.

eLight Trading

As a result of the COVID-19 pandemic, the Board updated shareholders on 6 April 2020 on the Group's third-quarter trading for the three months to 31 March 2020. This period saw 48 new contract wins, of which 21 were for schools in the UK and Ireland.

Since the update, the Group's subsidiary eLight, which provides "Light-as-a-Service" (LaaS) to businesses and schools, has continued to service its existing customers effectively. eLight has completed committed installations of LED lighting and seen a strong new business pipeline.

Since April, the business has secured 18 contracts with schools in the UK and Ireland., with a total contract value of €1.6 million. eLight has completed installations at 23 schools, recognising revenue of €1.4 million. Also, eLight has evolved its service offering to include a COVID-19 package for schools. This package will ensure customers are also able to sanitise their buildings effectively. The package has proved popular and has enabled the Group to progress several new opportunities with interested schools.

As such, for the quarter ended 30 June 2020, the Group expects to have recognised unaudited revenues of €2.1 million - an increase of over 40% compared to the comparable quarter of the prior year.  Unaudited revenues for the full year ended 30 June 2020 are expected to be €5.1 million (audited 2019: €4.5 million). 

COVID-19 Update

With many schools managing the complexities of pupils returning following the easing of the lockdown, some planned installations have been delayed to July and August. As the Group only recognises revenue at the point of installation, more of the revenue from these contracts, previously expected in June, will now be recognised in the financial year ending 30 June 2021.

Outlook

As previously reported, while some installations have been delayed, no projects have been cancelled. The Group has 19 schools under contract for installations over July and August, with a total contract value of €2.1 million.  Some of these contracts were secured before the start of the fourth quarter, which have been held over to the Summer, and some were won in the fourth quarter. In addition, the Group is seeing growing demand for its services and has a strong pipeline of over 200 proposals with schools in the next financial year and beyond.

The Group has generated an operating profit before group costs in each month of the fourth quarter and the Board expects the Group to achieve its breakeven run rate in the six months to 31 December 2020.

Group Financial Year End

The Group has today separately published its annual accounts for the year to 31 December 2019, covering the period when it was known as Alexander Mining plc and before the reverse takeover of eLight, which was approved by shareholders on 8 January 2020.

As indicated in the Group's Admission Document, the financial year-end for the eEnergy Group has been changed from 31 December to 30 June, in line with the financial year-end of the eLight business.  Consequently, the next set of audited financial statements for the Group will be for the period to 30 June 2020 which, because of reverse takeover accounting policies, will include a full twelve-month contribution from eLight.  These results will be published on or before 31 December 2020 in accordance with AIM Rules.

Harvey Sinclair, CEO of eEnergy, commented : "The past few months have been a difficult time for many businesses. The safety of all our employees and stakeholders has been paramount. However, the Board is looking for the Group to come out of this pandemic stronger and moving towards a bottom-line breakeven run-rate in the coming six months.  We are delighted to be making progress in growing our EEaaS business through continued contract wins, which, as the economy comes out of lockdown and schools reopen, should provide us with the opportunity to complete these installations and recognise further revenues."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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Contacts:

eEnergy Group plc	Tel: [phone]
Harvey Sinclair, Chief Executive Officer	[e-mail]; www.eenergyplc.com
Cairn Financial Advisers (Nominated Adviser)	Tel: [phone]
Sandy Jamieson / James Caithie
Turner Pope Investments (Broker)	Tel: [phone]
Andy Thacker / Zoe Alexander	[e-mail]
Newgate Communications	Tel: [phone]
Giles Croot / Robin Tozer	[e-mail]

About eEnergy Group plc

eEnergy is an established "Energy Efficiency-as-a-Service" (EEaaS) business currently focused on providing "Light-as-a-Service" to customers through eLight. eLight helps businesses and schools switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments. For customers, the energy savings are greater than the monthly service fee, allowing them to unlock free cashflow from day one as well as to improve the quality of their lighting and reduce carbon emissions.  eLight procures, funds, installs and maintains the LED lighting, meaning the customer has no risk.

eEnergy was admitted to AIM in January 2020. The Board's strategy is to develop eEnergy as a broader energy services company and acquire other businesses in the energy management sector. The market in the EU for energy efficiency services was approximately €25 billion in 2017 and is expected to double by 2025. 

eEnergy has been awarded The Green Economy Mark by the London Stock Exchange, which recognises a company's work on sustainability. 

https://eenergyplc.com/  

 

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