eEnergy (EAAS ) announced half-year results for the 6 months ended 31 December 2022 (HY22). The company reported revenues up 58% to £15.1m, compared to £9.6m in HY21, which lifted adjusted EBITDA by 87% to £1.5m, and pretax profit up to £0.4m from a loss of £1m in HY21.
Revenues in both of the company's divisions increased materially. Energy Management revenues stood at £6.6m, compared to £4.8m in HY21, and Energy Services revenues stood at £8.5m, compared to £4.8m in HY21.
Contracted future revenues also increased 45% to £26.4m on 31 December 2022, compared to £18.3m a year ago.
As of 24 March 2023, eEnergy's cash balance was £1.1m, excluding restricted cash balances of £0.5m.
Harvey Sinclair, CEO of eEnergy, commented : "eEnergy continues to make progress towards making net zero possible and profitable. Following a transformational year in 2022 bringing our offering under one unified brand, the first half of the year has seen us grow the business across both Energy Management and Energy Services. Our financial year is traditionally second half weighted and based on the new business pipeline and a contracted forward order book of £26.4 million, with £8.8 million to be recognised in H2, we remain optimistic to deliver full year trading expectations."
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This was a strong revenue performance from eEnergy, up 58% year-on-year alongside a 45% increase in contracted future revenues. The results elicited a strong reaction from markets, propelling EAAS shares up 9.8%.
A 45% increase in contracted revenue gives eEnergy strong visibility over the next 4 years as it grows its sales pipeline from new and existing customers. Notably, eEnergy's cross selling proposition continues to improve, with 35% of Energy Service's TCV signed in 1H22 coming from existing customers. Of the forward order book, £8.8m is expected to be recognised in 2H23 and £6.8m in FY24.
Revenue growth during 2H23 should be further supported by the growing impact of eEnergy's eCharge and eSolar initiatives, launched in 2022, which leverage the group's existing cost base. eSolar has 12.3 MW under head of terms as of 31 December 2022.
eEnergy turned last year's £1m pretax loss of into a £0.4m pretax profit, and momentum is strong into 2023 across both parts of the business following a string of 3Q22 contract wins. As a result, eEnergy expects to meet full-year trading expectations. As of 24 March, there is good visibility on 93% of the full-year revenue expectation.
The conflict in Ukraine, cost of living crisis, and net zero goals, have heightened the UK's focus on energy security, smart energy, and energy management. eEnergy is well-funded and well-positioned to continue benefiting from these trends.
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