eEnergy (AIM: EAAS )  announced “a strong start” since its readmission to the AIM market in January with revenue rising 14% to £4.5m for the year ended 30 June 2020.

eEnergy completed its admission to AIM on the London Stock Exchange on 9 January 2020 via the reverse takeover of the company which was previously known as Alexander Mining.

In its trading update for the period 1 July 2020 to 11 September 2020 period, the group told investors on Thursday that it has seen an uplift in business wins and installation momentum which had been boosted by contracts won before and during lockdown worth over £1m.

The UK and Irish "Energy Efficiency-as-a-Service" firm said yesterday it has since made strong financial progress despite challenges faced by COVID-19. It reported a revenue rise of 14% to £4.5m (2019: £3.9m) with gross margin increasing 510 basis points to 35.5% (2019: 30.4%).

Reported Loss before tax was £3.2m, including reverse takeover costs of £1.3m, while cash at bank by 30 June 2020 was £1.5m (2019: £0.196m) and net debt came to £0.528m (2019: £0.424m).

Despite widened losses, the group reported a strong order book of £2.2m as at 30 June 2020, 94% higher than the prior year of £1.2m, while total contract value stood at £7.0m.

eEnergy has experienced a significant acceleration in growth since the year end, generating a 6-fold revenue increase from the prior year, completing over 64 installations, and forming a pipeline of education and commercial opportunities for several significant opportunities.

While COVID-19 has meant a delay in the number of installations, none were cancelled, and all were completed this summer before schools had to manage returning their pupils.

“Since 1 July we have completed 64 installations, resulting in a 500% uplift in revenue, 250% organic, compared to the equivalent period of last year and we expect significant comparable growth to continue into the second quarter,” said CEO, Harvey Sinclair.

He said, “As the Group only recognises revenue at the point of installation, the revenue from these contracts has provided a further boost to the strong first quarter we have experienced.”

Shares have traded consistently over the past two weeks and were trading 10.20% higher at 6.75p during Thursday afternoon trading. 

Looking ahead, eEnergy will refocus its strategy to develop the business into a broader energy services company and acquire other businesses in the energy management sector. 

In keeping with its strategy, the group completed its first acquisition with its purchase of Renewable Solutions Lighting back in July. In line with a new "buy and build" strategy, the group said it continues to assess a number of further strategic acquisition opportunities. 

The Board believes it will not be impacted by Brexit while it operates in the UK and Ireland due to the low level of cross-border trading and associated supply chain management.

Interest in LaaS is growing, the group noted, particularly in the education sector as schools look to cut costs and reduce their carbon emissions in-line with government strategy. 

As well as rapidly growing its "Light-as-a-Service" business, eLight, the group said it remains encouraged by the momentum of its pipeline. Meanwhile, Sinclair added that the Board expects to achieve breakeven profit after tax in the six months to 31 December 2020.

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