eEnergy Group (EAAS ) has entered into a new revolving credit facility of £5m over three years, replacing all existing borrowing facilities, with the US bank, Silicon Valley Bank.
Silicon Valley Bank, a US-based high-tech commercial bank, operates as a subsidiary of SVB Financial Group which is currently the biggest bank in Silicon Valley based on local deposits.
The bank has provided a revolving credit facility of £5 million over three years to eEnergy with the potential for additional capital facilities as eEnergy delivers on its growth plan in the future.
eEnergy has therefore refinanced £3.1m of existing borrowings and expects to draw down a further £1m to cover part of the deferred consideration payment to the vendors of UtilityTeam.
The Company told investors that this new facility will provide the business with ‘enhanced liquidity, more flexible financing, and a strong partner to help support its growth strategy.’
‘Whilst the blended cost of the finance will be significantly lower than the refinanced facilities, the Board’s earnings expectations are unchanged for the current financial year,’ it added.
Harvey Sinclair, CEO, eEnergy said: “This transaction with a top-tier growth investor demonstrates the strength of eEnergy’s proposition. We are delighted to be partnering with Silicon Valley Bank to continue to execute eEnergy’s growth vision and strategy.”
Thomas Easterby, Director Technology Banking, Silicon Valley Bank said: “SVB are delighted to be able to provide eEnergy with financing to support their growth ambitions. The team have made fantastic acquisitions and have built an impressive suite of products to disrupt how companies address energy efficiency. We’re excited to be part of their journey.”
eEnergy’s strategy continues to be to build a broader energy services company through acquisition with a particular focus on energy efficiency related capabilities and technologies.
According to data provided by the company, the total market in the EU for energy efficiency services was approximately €25 billion in 2017 and this is expected to double by 2025.
To date, the Group has completed four transactions since its admission AIM in January 2020, with a focus of building ‘a Top 5 energy management business in the UK and acquiring proprietary smart metering and analytics capability through the investment in MY ZeERO.’
In a recent update for the six months to 31 December 2021, eEnergy Group said it was “very encouraged” by its forward order book as well as by the macro outlook for its market position.
eEnergy Group, which operates as an energy efficiency-as-a-service business and energy management-as-a-service business across the UK and Ireland, reported 1H22 revenues and EBITDA before exceptional items up by 44% to £9.7m, and 120% to £0.8m, respectively.
The revenues in 1H reflect the first full interim results from Beond, which was acquired in December 2020, and the results of UtilityTeam since its acquisition in September 2021.
eEnergy told investors that Beond has significantly outperformed its expectations for its first full year and that the integration of UtilityTeam is progressing well (which is to be completed by June 2022) and that the business is performing in line with management expectations.
eEnergy said it has a growing pipeline of opportunities for the remainder of the financial year and has contracted forward revenues (based on expected consumption), as at 31 December 2021, of £18.3m over 5 years (up 250% from its forward order book on 31 December 2020).
Looking ahead, eEnergy informed investors that it is now able to provide its clients with onsite solar generation and intend to add electric vehicle charging solutions by the end of FY22.
The company said ‘the structural and regulatory growth drivers that it is exposed to remain highly attractive and will support Management’s growth ambitions over the medium term.’
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