Exclusive OEM partnership with Venture Lighting

RNS Number : 3932C

eEnergy Group PLC

19 October 2020

 

19 October 2020

eEnergy Group plc

("eEnergy" or "the Group")

Exclusive OEM partnership with Venture Lighting Europe

eEnergy Group plc (AIM: EAAS), a leading "Energy Efficiency-as-a-Service" (EEaaS) business in the UK and Ireland, is pleased to announce it has signed an exclusive OEM partnership with Venture Lighting Europe Limited ("Venture Lighting" or "VLE"). 

From its manufacturing facility in Castle Donington, Venture Lighting will provide eLight, the Group's Light-as-a-Service" (LaaS) business, with eLight-branded LED technology on exclusive terms. eLight project manages the switch to cheaper, more efficient LED lighting for schools and businesses in return for a fixed monthly service fee, thereby avoiding any costly upfront payments.

The partnership will give eLight its own dedicated, vertically integrated supply chain as well as technology which meets the specific requirements of the business. Chosen after a tender process which included some of Europe's leading OEM manufacturers, with a 35-year heritage, Venture Lighting is part of Advanced Lighting Technologies. This US-based group has 600 employees and an annual revenue of over $130 million.

The Group believes that an integrated supply chain for eLight will maximise operating efficiencies and is a significant market differentiator. Venture Lighting will hold dedicated stock lines for eLight, significantly reducing the time that it takes to complete installation projects. As well as providing eLight customers with an end to end solution, the improved economics will help the Group maintain or improve margins by enabling eLight to subsidise the cost of finance within its LaaS proposals. This is expected to increase the conversion rate of customers from proposal to signed contract.

Furthermore, an integrated supply chain helps support the future roll out of the eLight App.  eLight has developed a bespoke audit app which allows a client proposal to be automatically generated directly from data capture. Developed to allow third-party electrical contractors the ability to offer the eLight LaaS solution to the SME market, the app will create a whole new market opportunity for the Group. These contractors will be able to quickly access the dedicated eLight stock held by Venture Lighting for their own client projects.

One of the key reasons the Group selected Venture Lighting was because of its UK manufacturing and warehousing facility. Using technology manufactured in the UK dramatically reduces the carbon footprint of eLight's projects, as well as protecting its supply chain from any adverse effects of Brexit. As well as supporting the expansion of both businesses, the partnership is expected to lead to the creation of new jobs at Venture Lighting's facilities in Castle Donington.

Harvey Sinclair, CEO of eEnergy, commented:  "This exciting agreement ensures we can deliver schools and businesses the highest-quality LED lighting more efficiently, saving them time, money and cutting their carbon footprint. Over the last year, eLight has been working with Venture Lighting to appraise its technology against several other leading European suppliers. Venture Lighting excelled in terms of the quality of its technology, economics of its proposal and its customer service. 

"This partnership with Venture Lighting will help drive profitable growth. By buying directly from the manufacturer, we are not only speeding up installation times and reducing our costs, we are also able to offer our customers an even more compelling means of financing the upgrade to LED. eEnergy is the market leader in providing Energy Efficiency-as-a-Service to the education sector in the UK & Ireland, and this agreement further enhances our offering and differentiates us from the competition."

Phil Croker, Managing Director, Venture Lighting, said: "The entire team at VLE, are extremely proud and excited to agree terms with eLight, in a mutually exclusive partnership. We will align our design and manufacturing capabilities to create bespoke LED technology, optimised for the needs of eLight's ever-growing list of clients.

"From the outset of our trading relationship, there have been clear synergies with both our values and passion, to deliver sustainable solutions for the sectors we both serve. eLight are a forward-thinking business with an exciting trajectory of growth ahead of them, delivering unrivalled service to key sectors.

"Our partnership will combine the resources and capabilities of both our organisations, to provide tailored lighting solutions, that deliver optimal value for their clients, through eLight's innovative EEaaS model. Together we can really help these key sectors move the needle on energy and carbon reduction commitments, whilst enhancing the quality of lighting within critical applications. This brings a great sense of purpose to our partnership and what we can achieve together on the journey ahead."

Contacts:

eEnergy Group plc	Tel: [phone]
Harvey Sinclair, Chief Executive Officer	[e-mail]; www.eenergyplc.com
N+1 Singer (Nominated Adviser and Joint Broker)	Tel: [phone]
Mark Taylor / Justin McKeegan / Carlo Spingardi (Corporate Finance) Tom Salvesen (Corporate Broking)
Turner Pope Investments (Joint Broker)	Tel: [phone]
Andy Thacker / Zoe Alexander	[e-mail]
Newgate Communications	Tel: [phone]
Robin Tozer / Isabelle Smurfit	[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 commercial 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 cash-flow 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/  

About Venture Lighting

Venture Lighting Europe is a company of Advanced Lighting Technologies LLC (ADLT LLC), founded in 1983 as a metal halide, high intensity discharge lamp manufacturer based in Cleveland, Ohio.

During 2014, Venture recognised the need to adapt in the wake of changing customer requirements and evolution in technology with the commercialisation of LED. Our ability to move quickly and adapt, taking advantage of the rapid developments in technology, led to the launch of our first range of luminaires for Industrial and Commercial lighting applications, delivering a class leading range of LED Lighting Solutions to our customers.

Today, we are a market leading global manufacturer of Industrial and Commercial Lighting Solutions, combining value, quality, innovation and exceptional service. We strive to continuously push the boundaries of what can be achieved through lighting technology. Our entrepreneurial flare, passion and expertise, give us the strength and resilience to prosper in a continuously changing marketplace and make us the business we are today. 

 

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