(Sharecast News) - A significant improvement in margins at Good Energy was able to offset a big slump in revenues, with the renewable electricity and energy services provider reporting a double-digit increase in profits for 2024.
The company, which in January agreed to a £99m takeover from Esyasoft, said on Friday that pre-tax profits totalled £6.6m last year, up 16% on 2023.
Revenues, which are directly linked to externally driven commodity costs, fell to £180.1m from £254.7m. Both revenues and the cost of sales reduced, mirroring reductions in wholesale costs seen since the 2022/2023 peaks, the company said.
However, gross margins rose to 24.4%, up 7 percentage points over the previous year.
Cash and cash equivalents fell to £28.6m from £41.3m, as £5m of inflows from operational activities were offset by £18m of cash outflows mainly due to investment activities linked to the purchase of three new service installation businesses during 2024.
"As Good Energy embarks on a new chapter, we can report another strong year both financially and strategically. 2024 saw the business make three further acquisitions, significantly scaling our services for solar installation across the nation," said chief executive Nigel Pocklington.
Meanwhile, chair Will Whitehorn said: "I want to thank all of our shareholders for their support in this journey, as we have seen substantial growth in the value of the company, realised now through the impending acquisition by Esyasoft."
