Earnz swings to deeper 2024 loss, says trading ahead of target

Fri, 27th Jun 2025 11:33

(Alliance News) - Earnz PLC on Friday reported a wider pretax loss for 2024, reflecting its transition from legacy operations and acquisition activity, but said the business is now trading ahead of target and poised for growth.

Earnz shares were up 31% to 5.25 pence on Friday morning in London.

The Cheltenham, England-based energy services company focused on decarbonisation posted a pretax loss of GBP2.9 million for the year ended December 31, widening from GBP1.3 million in 2023.

The company generated GBP2.6 million in revenue, having reported none a year prior, following the acquisition of two businesses in late August.

Administrative expenses more than quadrupled to GBP3.2 million from GBP743,000, while cost of sales came in at GBP2.3 million.

Adjusted earnings before interest, tax, depreciation and amortisation showed a loss of GBP1.0 million, excluding GBP1.7 million in exceptional costs related to acquisitions and listing activity.

Despite the deeper loss, Executive Chair Bob Holt said the headline figures "do not truly reflect the underlying business that has been built", given they include only four months of trading from acquired firms South West Heating Services Ltd and Cosgrove & Drew Ltd.

"The group is performing well, with all businesses trading ahead of target," Holt said, noting strong momentum despite capital market constraints. He added that Earnz has built a "profitable platform for growth" and is actively pursuing further acquisitions across the decarbonisation sector.

The company also confirmed its planned acquisition of A&D Carbon Solutions Ltd, announced earlier this month, remains on track to complete on July 1. The GBP2.8 million deal will be funded in part through a GBP1.0 million share placing.

By Eva Castanedo, Alliance News reporter

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