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thank you for the belated reply. You may well be correct, however, from a customer perspective i can see the logic of these bolt on acquisitions. I want a one stop solution to cover all my energy needs, i don't want to have to go to 3 or 4 different companies. I agree they may well have overpaid - Utility Team was over £20m - however, this was funded by a placing at 15p (double the current price) and shares at 24p.
The energy cap has come quite late for SMEs - prices are already 3 of 4 times what they were 12 months ago - and the cap is only for 6 months. I'm not sure the impact on new business will be significant.
Shandypants2,
Sorry for the tardy reply. I think everyone agrees on this platform that those working in the energy efficiency sector should be “flying along” with record sales/profits. So why isn't this happening?
It can be overstated that the revenue growth has tripled but at what cost? The board have acquired businesses through acquisitions and in my opinion were overpriced. The additions to the group will of course increase revenues as the positive statements being posted, but at the same time it also increases debt that needs to be serviced. These figures not so readily being highlighted.
Now that energy capped prices have been introduced, many suppliers have withdrawn their matrix prices used predominantly on SME based businesses. This means that the broker element of eEnergy will be struggle to book new business with suppliers, which will ultimately result in reduced revenue. Typically, on SME based customers (likely that UT has more SME customers than mid-market and I&C) they would receive 80% upfront payment from the supplier on signing the contract, with the remaining 20% being reconciled at the end of the fixed term (1-4 years depending on the contract). This results in the signing of new contracts being imperative to the income and overall stability of the company. As the Utility Team acquisition makes up a substantial proportion of the Groups revenue this would concern me even more.
Yes but EAAS make a substantial part of their revenue essentially through switching services. Not much point switching if every supplier is at an identical price!
The cap is on unit price and standing order for six months for businesses so it's NOT like the maximum you will be paying is £2500! Business will still pay extremely high bills even with caps, the ONLY way forward is by reducing your waste and this is what EAAS does so don't get yourself confused.
I've just sold out. If prices are fixed for business, I don't see how they can continue to make money by brokering deals
https://news.sky.com/story/energy-bills-capped-at-2-500-a-year-new-pm-liz-truss-announces-12692619
Even business getting help plus ramp up of natural gas shale gas and oil equals energy costs to plummet looks like Justin has timed his entry here to perfection lol
Justin pix good shares then sells before they rally done it loads of times lol
Sold or sliced as he puts it his high conviction holds and brought shares here... right before the new pm freezes energy prices lol impeccable timing
https://news.sky.com/story/day-one-new-prime-minister-liz-truss-to-see-queen-in-scotland-and-unveil-energy-price-freeze-that-could-last-until-2024-12690997
Nurse, Justin Waite is a Vox Markets podcaster and passionate investor with a track record in successful investing. He also founded 'Sharepickers', a subscription based investor club. He uses a a very commonsense 'fundamentals' approach to investing to search for both value and growth potential in stocks. Checkout his Sharepickers website as well as his youtube videos on specific companies.
Chazzy2, excuse my ignorance, but who is Justin?
....the right time and place to help businesses navigate through these difficult times. EAAS is also profitable and has a growing order book and recurring revenue model.
Aldebaran, Justin isn't some uninformed Troll who ramps or deramps for the sake of it. He carefully researches his shares to buy and then explains his reasons for doing so, backed up with facts and figures. He always emphasises the importance of doing your own research however.
Yes there is clearly a seller at bay, but that does not change the fact that EAAS has huge macroeconomic tailwinds and right now at a time of extortionate energy price increases is in exactly the tonight time and place to
Energy i am interested in your opinion. Why do you not rate the BOD and why do you think this is hyped?
It is in a good ' green' space and revenues are growing. YE accounts are required to get a better grip on things but H1 looked ok, if unspectacular to me.
It did get hyped a bit last year due to the Mail on Sunday tip but the share has more than halved since that high.
Thanks in advance
There is supposed to be an income stream from completed installations.
Should provide a basis for rising dividends.
But of course, it's simply syphoned off, away from the shareholders.
When it's wound up, the balance sheet will show plenty of debt.
The schools will still be paying, to somebody else.
In the solar panel rent a roof scam, the original installation company has closed,
but the Feed-in-Tariff cashflow was sold off to another company,
with no obligation to maintain the solar panels.
My god some people on here are full if sh$t. You’ve not been a CEO of anything and you certainly don’t talk like one I’ve worked with over the years. My group have bought into Eenergy. I worked with them for a bit, very impressive customer service, lovely team to work with and impressive software. Their sales pitch presentation was glossy and easy to understand. These guys will go far I am am convinced of that. In the right space at the right time. Over the next 12 months in this hellish energy environment, companies will turn to Eenergy, the only question for me is, do they have the capacity to support the growth
I am sorry if my opinions are not what you wanted to hear. They are based on my knowledge of the energy market, which I have been involved in for the past 30 years, working as a CEO for both Limited and Plc businesses.
Most of you must have come across companies that are surrounded by hype. However results are eventually needed otherwise the crash will undoubtedly happen.
If you cant see the warning signs, then leave your money where it is and run with it.
I wish you all the best.
Cash flow will reflect cash profits being re-invested back into growth opportunities,
21st/July RNS statement doesn’t exactly ring danger
What does it matter when he joined his argument is valid.
Somoene is dumping huge number of shares into this good news as desperate to get out. Why you might add with all the good news just wait for multi bags.
Justinthe ramper will have you believe the selling is just distressed but he has absolutely no way to know. The numbers aren't as rosey once you scratch below the surface and cash flow is becoming a problem here. A danger investors don't often see as they don't even look at the cashflow statement.
I don't see anything other than this dropping. With all the ramping from Justin and shareprice not moved... red flag
I see Utility Team as a sensible bolt on as it increases the company's overall offering.
In terms of the payment - i believe c£9m was paid in cash the rest in shares at a price of 24p. The £9m was funded with a placing at 15p.
As the SP i half that today you could argue it was quite a good deal at the time.
So you joined yesterday just to knock eaas. must be a decent co.then I guess for that sort of effort.
In my opinion there has been a lot of hype around Eenergy without the results to back it up.
The acquisition of Utility Team was a particularly poor investment in my opinion. To purchase a predominantly SME based energy brokerage (although there is a relatively low percentage T/O attributed to the consultancy side of the business), with the potential claw-backs, from energy suppliers due to post Covid business closures and COT's (change of tenancy), is a risky business. The price Eenergy paid again was in my opinion massively over the top at £11.5m initial consideration. In addition a further expected payment of £3m but with a contingency to make that a further £6.3m payment will be paid on reaching agreed targets.
Please also take note when you are gauging the increase in revenue for the Eenergy group. An extended accountancy period for Utility Team/Beond of 18months has been reported instead of 12 months, which has resulted in inflating the performance somewhat. EBITDA figures could also be misleading as Depreciation and Amortorisation of Intangibles have also inflated the EBITDA when compared to previous accounting periods.
It is going to take an awful long time for Eenergy to gain a return on this type of investment, especially when the overall group is reporting such low profits/losses.
I am sorry but I don't have any faith in the executive board and their reputation within the sector is anything but high, again in my opinion.
Sorry for the doom and gloom but facts are facts. Get your money out whilst you can.