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From Proactive Investors:
"eEnergy eyes win-win in sustainable energy space
Philip Whiterow 13:57 Thu 09 Jan 2020
... Revenues in the year to June were £4.5mln, but house broker Turner Pope forecasts this doubling to £8.4mln in the current year and rising again to £12.6mln in 2021.
That is also the year the broker sees eEnergy moving into profit after a loss of £1.6mln last year. ..."
Also remember the magic of 'compounding': what Einstein called the eight wonder of the world.
E.g. A company with turnover of £1M. p.a., doubling it yearly for a decade, would have annual turnover of over a billion pounds.
This is also illustrated by the famous 'Rice And Chessboard Story':
This type of stellar growth is rare though, and investors will pay very highly for it.
"Good news on new business and client contracts , as well as a successful conclusion to negotiations with the Green and Clean Technology funding partner, could drop at anytime and add significant value. In the meantime, the MM's will be happy to mop up shares from AXM shareholders on the cheap....... Gla EAAS shareholders, EAAS is well placed for significant growth during 2020 and beyond ;-)"
I totally agree.
And as you've helpfully posted on ADVFN, the EAAS CEO has said that they're hoping to announce some very large customer wins: they're working on a number of multi-site retail customers that have got in excess of 300 to 400 outlets per customer:
And remember that one huge deal can give a huge turnover leap virtually overnight.
E.g. Ecotricity's increasing four-fold in a year (nearly £40M. increase):
"This was the year we teamed up with Thames Water in a really ground breaking joint venture to produce and supply renewable electricity. ... And it was a big one – taking our turnover to £50M a year in one big (four fold) jump. ..."
Last week, I saw a mini-shopping centre in Staples Corner, near M1 Junction 1, having lots of ceiling lights replaced.
No idea whether it's got anything to do with eEnergy.
I think commercial landlords get some kind of tax break if they make energy saving upgrades.
I have no doubt eEnergy can sign up punters who pay up monthly.
The problem is, they can simply pocket the income, and say they are keeping it for expansion, but use it as collateral for building up debt. On the balance sheet, they have strong cash flow, high reserve, but at the right moment, they could pay big bonuses to the directors, then siphon off the money, then sell eEnergy for a £1.
From such a small base, there is plenty of scope for revenue to go ten fold, though.
So, if they never pay dividend, and just keep borrowing from banks and doing placings, you know they are planning to disappear soon.
A few good RNSs, they could triple the share price.
Yeah that type of post is just as bad, if going to give a negative slant then at least do it properly and explain your reasoning.
Load of TRASH coming from the biscuit dunking club and their promoters. Avoid like plague.
Potential added value from confirmation of successful negotiations with a leading green and clean technology funding partner to obtain a dedicated fund for its energy service agreements. Gla :-)
"eLight has secured contracts directly with certain of the world's leading technology manufacturers, bypassing distributors and wholesale channels to ensure a competitive advantage for its projects, and is in negotiations with a leading green and clean technology funding partner to obtain a dedicated fund for its energy service agreements. "
They've only just listed but have ambitions plans and very attractive prospects and potential for significant growth.....good news could be imminent . Gla holders:-)
Currently focused on LED lighting, eEnergy is promoting the message that reducing energy use and carbon emissions can be profitable.
Harvey Sinclair, chief executive, says that a lot of organisations are put off by the high capital cost that comes with energy-efficient projects.
“We take that cost away for schools and businesses and allow them to take advantage for a fixed monthly fee"
Schools, especially, are a market eEnergy is currently targeting.
Lighting can account for up to 50% of a school’s energy budget.
An LED upgrade can cut that cost by up to 75% with a 30% reduction in energy use and carbon emissions or about ten trees per year per classroom, says Sinclair.
Energy cost savings are greater than the monthly service fee while the quality of lighting is improved and carbon emissions reduced.
Subsidiary eLight does all the procurement, funding, installation and maintenance and in cash terms the savings can generate up to £250,000 over ten years.
It is numbers like these that underline the huge opportunity in the sustainable energy space, says Sinclair.
He sees the sector following the trend of mobile technology and cars, where monthly subscriptions have become the norm with no capital requirements for the customer.
So far, eEnergy has completed around 800 LED lighting projects in the UK and Ireland, but there are 25,000 schools in the UK alone of which 80% have yet to switch to LED.
eEnergy’s ambitions stretch further than just lighting, however.
Reasons for the listing are to fund a new app to help it push in the small business space and also to give it the currency to start a buy and build consolidation strategy among sustainable energy businesses.
That would take it into areas such as energy management, where it can both acquire customers and apply the experience it has built up during through its LED projects to offer a range of greener alternatives for their energy requirements.
Average contracts currently are sized around £130,000 but this will get larger as it moves up the value chain.
For example, Sinclair is hopeful of retail contracts that will see between 600-700 stores converted.
Revenues in the year to June were £4.5mln, but house broker Turner Pope forecasts this doubling to £8.4mln in the current year and rising again to £12.6mln in 2021.
That is also the year the broker sees eEnergy moving into profit after a loss of £1.6mln last year.
How fast the buy and build strategy progresses will have a bearing on these numbers, but there is no doubt the demand is there.
Estimates across the EU are for the energy efficiency market overall to be worth €50bn by 2025 and with pressure mounting on governments everywhere to take more radical action on climate and environmental issues it might be a lot higher.
Believe me I did not want to type what I did, I did not want to say it or think it, but you know what I mean mate.
Hence why I'm always sceptical of Aim stocks unknown.
From 11m mcap to 9m mcap, no news, no info, nothing to prop us up or move us forward so based on how every other AIM share works, we as it stands based on the info at hand are overvalued and will drip down into the low pennies, then is the time to average down.
Long boring drawn out grind this share is.
Good news on new business and client contracts , as well as a successful conclusion to negotiations with the Green and Clean Technology funding partner, could drop at anytime and add significant value. In the meantime, the MM's will be happy to mop up shares from AXM shareholders on the cheap....... Gla EAAS shareholders, EAAS is well placed for significant growth during 2020 and beyond ;-)
Can see exactly where this is going for the forseeable, not good.
Commenting on the deal, Little said: "We are delighted to have advised eEnergy Group on the acquisition of eLight and an associated fund raising and re-admission to AIM and the disposal of MetaLeach Limited. We look forward to supporting eEnergy to deliver its ambitious growth strategy
Tackling climate change through energy efficiency
eEnergy plc is a new generation of energy services company. We believe that reducing your carbon footprint should be profitable for your organisation.
Over 800 Energy efficiency projects completed in the UK and Ireland across the education, retail and industrial sectors.
100 million KG CO2 Emissions saved as a result of our projects (equivalent to 117,692 acres of forest planted per year).
£16 million saved - Our energy efficiency upgrades have resulted in significant reductions in lighting costs for our customers.
Securities in issue, percentage of shares not in public hands and significant shareholders:
Information last updated on 9th January 2020.
The Company has the following Ordinary Shares in issue:
Ordinary Shares of 0.3p each 130,926,167
The Company holds no shares in treasury
% of shares not in public hands
Percentage of shares not in public hands: 58.06%
Significant or Substantial Shareholders % of Existing Share Capital
Ian McKenna 15.77%
Harvey Sinclair 15.77%
Stella Murphy 14.56%
David Nicholl 10.03%
Hawk Investment Holdings Ltd 9.93%
Marian Rainey 3.97%
Other than the shares subject to the lock in agreement (which are considered to be shares not in public hands) there are no restrictions on the transfer of the company shares).
Energy efficiency as a service fills a need in the market. It also provides a win-win that will drive more vendors to consider the offering and encourage more building owners to invest in energy cost reductions.
That said, there are still some questions of scalability: How fast can these EEaaS firms grow? Most leading vendors have served hundreds of buildings, while even smaller energy management software players work with thousands of buildings.
And while many commercial buildings are open to third-party operation of their core building systems, some are not. For example, data centers, grocery stores and even refrigerated warehouses view HVAC and refrigeration systems as mission-critical.
Whatever the true total addressable market size of EEaaS turns out to be, the model is here to stay.
Joseph Aamidor provides product and market strategy guidance to building owners/operators, building management firms, technology providers, investors and early-stage innovators. Previously, he served as director of product at Lucid Design Group and was a product manager at Johnson Controls.
There are a number of other growing firms that have similar solutions, though the details of the offerings are often adjusted to the specific building or organization type that is targeted. For example, Sparkfund works with technology and solutions vendors, helping them fund their own deployments without upfront capital from customers.
Parity offers an as-a-service approach to energy savings, but for multifamily buildings. Cenergistic offers a “behavior-based” approach that embeds energy managers into public school districts to drive reductions. Metrus has succeeded in working with utilities, helping their customers fund various building and energy upgrades.
These firms tend to be smaller startups with fast growth. But more mature firms offer EEaaS as one of many financing and deployment options. These firms have been the targets of acquisitions, which is unsurprising given the general state of M&A in the industry.
For example, Veolia bought Enovity in 2017, which can provide upgrades with a guaranteed energy and maintenance contract. Centrica purchased SmartWatt, which also can deploy energy retrofits and/or lighting without upfront capital, earlier this year.
These vendors do not provide homogenous offerings. Their differences can be summarized across three considerations:
Range of energy measures: While most firms aspire to provide a broad range of energy conservation measures, some focus on a specific type, which can include LED retrofits or HVAC upgrades.
Significance of the as-a-service model: Some firms only offer an as-a-service approach, while others will offer this financing model as one of a few options.
Financial terms: Shared savings is a model in which the energy cost reduction is split between the client and vendor. But in some cases, beyond a prearranged service fee, the energy cost savings flows to the building owner.
The differences noted above likely will become less defined, especially as these firms seek growth by moving into adjacent markets. And moving forward there will require more innovation around financing models, which may be tailored to specific building types, specific types of equipment, or more focused on data-driven operational enhancements (without equipment upgrades).
While these firms have gained market share, they still serve a small portion of the 5.6 million commercial buildings in the U.S. Many local and regional building service contractors are the first in line to perform various upgrades and maintenance projects.
One opportunity may be to help these small firms finance upgrades on an as-a-service basis, with a technology platform to assist with ongoing operations. Without such support, offering energy efficiency services may be difficult. But given the opportunity and their established channel to market, such a growth trajectory does make sense.
Energy efficiency as a service fills a need in the market. It also provides a win-win that will drive more vendors to consider
Energy Efficiency as a Service: Having Cake and Eating It Too
While not a new concept, the EEaaS model is gaining momentum as new entrants join the market.
September 30, 2019
The as-a-service model, in which capital-intensive costs are spread out over the useful life of the product or offering, has become commonplace.
The best example is software-as-a-service (SaaS), now the preeminent way to acquire and use personal and enterprise software. This model replaced the more capital-intensive approach of businesses buying their own computing infrastructure, purchasing and updating these servers with new versions of their applications, and spending significant amounts of money to do so.
Within energy and building technology, the use of SaaS applications is not new. For example, co-working providers offer workplace-as-a-service, which replaces a long-term lease, plus a lot of other costs (such as utilities, furniture and facility management) with a flat monthly fee based on simple metrics like the total number of desks or people.
Another offering, data-as-a-service, provides a stream of data for a flat “per point” or “per feed” price. This simplifies the complexity that goes into collecting these data streams, which may include deploying sensors and other hardware.
This model also has been offered within building energy management. Energy waste, and the elimination of it, is a significant business opportunity, though the high upfront costs to improve building performance have always created friction in the market.
Energy management software, offered as an as-a-service solution, was one of first approaches to deliver energy efficiency. While software dashboards and reporting products are fairly ubiquitous, an open question is whether some energy waste is being left on the table. This is due to poor user adoption of these products, in addition to difficulty turning data analytics and insights into cost savings.
Next up: EEaaS
These questions have opened the door to energy efficiency as a service (EEaaS), which is an emerging model to deliver energy savings without upfront capital. While it has been around as a concept for nearly 10 years, it’s gained momentum since 2017 due to new market entrants.
The model sees a third-party financing the equipment used to retrofit a building, while the owner uses the ongoing energy savings to pay this back. Unlike a software subscription, actual energy savings are delivered to the building owners.
The offering is attracting attention from large incumbents across various parts of the energy and building management value chain. For example, CBRE has invested in Redaptive, which started with a focus on LED lighting retrofits, but is steadily expanding to other energy upgrades. Carbon Lighthouse, which has raised money from Johnson Controls, is another leading EEaaS provider.
" We're looking to announce very large customers wins.
We're working on a number of multi-site retail customers that have got in excess of 300 to 400 outlets per customer"
" In terms of key newsflow, we're looking to announce very large customers wins. We're working on a number of multi-outlets per customer that have got in excess of 300 to 400 outlets"