Good Energy Profit More Than Halves In 2017 On Restructuring Costs

LONDON (Alliance News) - Good Energy PLC on Wednesday said despite "strong" revenue growth 2017 was "challenging" as the group's profit was hit by a transformation programme.

The renewable energy supplier's pretax profit reduced 64% to GBP700,000 in 2017 compared with GBP2.0 million the year before, impacted by GBP1.1 million of one-off restructuring costs.

During the year, the company restructured the business to reduce its long term cost base, by simplifying its operating model and upgrading systems and processes, Good Energy said.

Revenue rose 17% to GBP104.5 million from GBP89.7 million the prior year, driven by business supply volume growth. Supply segment revenue grew to GBP99.3 million from GBP85.1 million thanks to growing customer volumes.

Administration costs increased 13% to GBP23.7 million from GBP20.9 million the year earlier. Finance costs also grew 16% to GBP4.9 million compared with GBP4.2 million in 2016, due to temporary phasing between the completion and repayment of Good Energy bonds I in March 2018 and the commencement of bond II in June 2017.

The company decided to keep its total dividend for the year flat at 3.30 pence, after the final dividend of 2.30 pence was maintained.

As a result, the group's debt rose 1.9% to GBP53.1 million from the GBP52.1 million booked in 2016.

Good Energy owns and operates nine renewable energy facilities across the UK, with a total of 52.5MW of installed capacity in its generation portfolio.

During the year, Good Energy delivered total output of 87.6GWh, up 8.7% from 80.6GWh the prior year.

The group said in 2018 it is on course to perform in line with market expectations and deliver improved profitability.

Chief Executive Officer & Founder Juliet Davenport said: "Good Energy has delivered another year of robust growth in line with expectations. During 2017, we built and focussed on optimising our future operations in an energy market that is in transition. These are solid results given the tough market conditions in the retail supply market. We have also delivered good growth in the business supply market with some new key accounts."

"Looking ahead, we expect to perform in line with market expectations in 2018 and that our strategic developments will deliver growth in profitability and in value, plus deliver a green dividend yield over the longer term," Davenport added.

Good Energy shares were down 0.3% at 125.11 pence per share on Wednesday.