As businesses struggle to control costs and achieve Net Zero in the current climate of soaring energy prices and geopolitical uncertainty, they have been turning to digital and smart metering and management solutions for their energy needs.
eEnergy (EAAS) and Yu Group (YU.), two energy suppliers specialising in such solutions, have reported strong financial results in H1 22 and FY 22 respectively, driven by growing new customer acquisitions. These companies are strategically positioned to serve the increased demand for efficiency and green energy with their next-gen offerings.
Yu Group's "Digital by Default" service uses efficient automated systems to reduce costs and make new client acquisitions and account monitoring/management as easy and straightforward as possible, without the extraneous and costly addons that traditional suppliers include. Yu is also launching Yu Smart, an entire division dedicated to smart metering.
eEnergy also launched its My ZeERO smart metering system that enables customers to measure, manage, and visualise energy usage at a granular level in real time. The company's two divisions, Energy Management and Energy Efficiency, have both scored many new customer wins in recent quarters, with soaring contract value across a wide range of industries. eEnergy also has two net-zero divisions: "eCharge", an EV charging network, and "eSolar" for PV deployment.
eEnergy
eEnergy (EAAS ) reported strong revenue and profit growth in its FY22 update today for the year ended 30 June 2022.
eEnergy generated revenue of £22m, up 62% YoY from £13.6m in FY21, split equally between its Energy Management and Energy Efficiency divisions. This growth was complimented by the company's largest acquisition to date, Utility Team, which was completed early last year. Even more impressively, adjusted EBITDA increased 261% to £3m.
eEnergy successfully launched the My ZeERO smart metering system in 2021, in which it has 85.5% interest. The service is a monthly subscription, delivering AI-driven automated insights, and has seen high adoption by existing and new customers. The company's eCharge (EV charging network) and eSolar (onsite solar generation) products also benefited from strong demand.
Looking ahead to FY23, eEnergy has a forward order book of £25m across its two divisions. So far, it has 88% of Q1 revenues contracted and 39% of FY23 revenues contracted as of 30 June 2022, again indicating strong demand. eEnergy plans to continue reinvesting profits into growth opportunities, in particular My ZeERO, to meet expected customer demand and payment of certain non-recurring items.
Harvey Sinclair, CEO of eEnergy, commented: "We are pleased to announce a record Q4 which follows the record contract signings achieved in Q3. The continued energy crisis continues to generate strong demand for our integrated Net Zero offering with the new business pipeline developing strongly as we enter the new financial year."
Investors welcomed the strong performance with EAAS shares up 6.90% in early afternoon trading.
View from Vox:
eEnergy's success in FY22 can be attributed to its rigorous focus on integrating the buisness into a single compelling proposition, with the aim of helping its customers achieve net zero with minimum or no capital investment via the use of smart/digital technology.
Getting to net zero as efficiently as possible, especially in the context of soaring energy prices, has become a goal for many businesses. For eEnergy, this means a strong momentum in client acquisitions as well as adoption of new services by existing customers.
Yu Group
Yu Group (YU. ) announced on Tuesday solid revenue and margin growth in a trading update for the six months ended 30 June 2022.
Revenues in H1 soared 90% YoY to £125m, compared to £65.8m in H1 21, and are up 39% from H2 21. Average monthly bookings were also up 49% to £14.3m. Adjusted EBITDA for the fiscal year is expected to rise 50%. Adjusted EBITDA margin has continued positive momentum, the company said. Yu ended with a strong cash position of £15.7m, up 36.5% YoY.
Yu successfully established its online portal during the period, which allows customers to self-serve in relation to billing, metering, and other administrative functions, reducing operating costs. The company has also begun rollout of its online platform in respect to new customer acquisitions.
In H2 22 Yu will launch Yu Smart, a new smart metering division, with the first smart meters expected to be installed by the end of the year. This will put Yu on par with other energy companies - such as eEnergy - that have already introduced smart metering solutions, and should improve margins even further.
Investors welcomed the news with YU. shares up 6.67% on the day of the announcement.
View from Vox:
Yu Group continues to build on its strong FY21 results, with exceptional revenue growth, margin expansion, and cash generation in H1 2022. Yu's "Digital by Default" strategy has already generated new growth opportunities and enabled the company to find service and cost efficiencies, improving margin. Yu Smart will build on those solid core results and should deliver new customer wins in the rapidly growing smart metering space, as well as new value creation from Yu's existing customers.
Yu reiterated its forecast for the full FY 2022, with the company expecting revenues and adjusted EBIDTA to both increase 50% YoY. Cash is also expected to perform in line with market expectations, underlying the visibility within the company. Having delivered such strong performance through the challenging times of the last four quarters, Yu is well-positioned and well-funded for continued growth.
Follow News & Updates from eEnergy: and Yu Group: