(Alliance News) - eEnergy Group PLC on Friday announced an "exciting" funding deal with NatWest Group PLC, and expects to report GBP46 million in revenue for its latest year and a half.
Shares in eEnergy were up 18% at 7.80 pence on Friday afternoon in London.
The London-based energy services provider said NatWest's National Westminster Bank PLC will provide up to GBP40 million in project funding. This facility will finance energy efficiency and onsite generation technologies for eEnergy's public sector customers.
eEnergy said the facility will be available for 12 years, with investment planned over the first 24 months. On a "particularly exciting" note, it expects the funding to lower its cost of capital, "delivering an attractive financial return on the retained project interests," as well as giving it a competitive edge in tendering for larger multi-site contracts.
"We are extremely pleased to announce this GBP40 million facility with NatWest, marking the beginning of a new collaboration between our two organisations," proclaimed Chief Executive Officer Harvey Sinclair. "This facility is the result of significant investment in honing our proposition to public sector customers and...has been structured to allow us to scale rapidly in a large addressable UK market."
He continued: "We look forward to this new relationship with NatWest which we hope is a start of a much longer-term relationship given the opportunities available."
Also on Friday, eEnergy said it expects to report revenue of GBP46 million with, adjusted earnings before interest, tax, depreciation and amortisation of between GBP5.1 million and GBP5.3 million, for the 18 months to December 31.
This would be up from revenue of GBP22.0 million in the year to June 30, 2022, and from adjusted Ebitda of GBP3.0 million. eEnergy announced in late June last year that it had changed its accounting reference date to December 31.
eEnergy explained that trading in the six months to December 31 "was impacted by the Group's balance sheet constraints which have now been alleviated as a result of the sale of the Energy Management division".
The company had announced receipt of GBP25 million from the disposal earlier this month.
"The completion of the disposal of the Energy Management division after the period-end has enabled the group to repay all borrowings, substantially strengthen its balance sheet and refocus resources on delivering on the growth opportunities in the Energy Services division," eEnergy explained.
By Emma Curzon, Alliance News reporter
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