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It isn't correct I'm afraid. The below extract from the RNS confirms the Company (eEnergy) has entered in to an agreement with EML (the disposed division) to allow them to licence My Zero. Why would they do that if they owned the metering company.

"The Company and EML will also enter into a cross-referral and licensing agreement (the "CLA"), under which the Company and EML shall cross-refer the other party's services to their own client base with a referral fee being paid for successful referrals. EML shall licence to the Company the use of MY ZeERO, including the right permit the Company to sell up to an agreed number of MY ZeERO eMeters per year to its client base. The CLA is for an initial period of two years, following which it may be extended further by mutual agreement."

This has been bothering me Hught so I have spent some time researching this, as you make a valid point about the metering business. If this remains part of the group then I agree with you and K3V that they have a USP.

I believe eEnergy insights is the ltd company of the metering business, and if correct, this has changed ownership to Flogas. I could be wrong though and if anyone can shed clarity on it I would be interested.

https://find-and-update.company-information.service.gov.uk/company/13286210/filing-history

Was the metering business not sold as part of the energy management division? If not, then I would agree with you.

Thank you K3V, you raise some interesting points. A couple of thing I need to respond to;

-I didn't say it failed, I said the buy and build strategy hadn't worked. Not just mere semantics, but facts. By offloading the higher margin EMaaS business, it suggests to me cross selling EaaS services to the acquired businesses didn't work. The primary reason for acquiring complimentary businesses. Indeed I think Harvey cites in the RNS that the sale is a simplification of their core business. This smacks of washing their hands of an unwanted division, imho.

-There are a number of lighting as a service providers operating in the UK, none of which had a energy management division underpinned by a credible software solution. eEnergy has now sold the family silver in my view and are lack real differentiators. I do not believe they will not be able to compete head to head with the bigger players in the sector. So I disagree with you that they have a USP.

This is what leads me to believe they will sell the services business also. Either that or they will delist.

As an investor in this stock, I hope I am wrong as you claim I am. Good luck all.

Hi MrGoldsmith, as per Smythy's comment, the energy management division was sold to flogas, leaving the original energy services business. I suspect that the BoDs will look to sell this off too as the buy and build strategy employed to scale the business hasn't worked. they don't have deep enough pockets to fight an organic growth battle against the lead players in their market. I could be way off pace however, who knows with this stick... good luck all.

I agree a divi is unlikely, as I suspect they will sell the Energy Services business this year also, and having cash in bank will help their valuation. We will see. Good look all.

It would be great to get an update from the BoD soon. I suspect a delay in communicating anything at this time is that they are waiting on some key news. Hopefully a special dividend, as this would attract a different type of investor going forward and maybe encourage a few existing investors to hold on rather than take profits too early.

Let's sit and watch, good luck all.

Fully agree PTI. I suspect we have a big seller at 8p, as it has been a firm resistance for some time now. Finalised 2023 accounts, and another decent RNS will hopefully blow away the remaining cobwebs.

Given how generous the BoD has been with their own 'bonuses'... I agree a special divi would be appreciated.

It feels like we have a lot of sellers at 8p. Natural resistance level or a trigger point for a larger seller? probably both, otherwise I think we would be north of 10p already. It will come. good luck all.

The key outstanding questions I have are;

What were the final 2023 results? We are yet to see these, and the sale RNS intimated that the results were off the pace. What are they going to do with the remaining energy services business? In the scheme of things it seems too small to be listed yet the BOD have given themselves very healthy SP options with quite high SP target levels. How will they get there? I would like to see a clear strategy. If there isn't one, I suspect they will sell off this final part of the business as well at some point this year and move on to the next project.

I received the same email, with no rescheduling done as yet. I don't think it will impact the deal. It is more likely they need a bit more time for some reason, big deal near to closing maybe or want the money in the bank first..

Yes Shandy, if the SP can get north of 8p prior to the EGM then I think we will be well placed to kick on towards 10p+ quite quickly. It would be great to see a large strategic win as part an end of year financials RNS to fan the flames, which might push us towards 15p. but that is me being overly optimistic.

I agree with the sentiment of your post, and bought another decent slice this morning at a similar price to you. good luck all.

I think the reference in the RNS to under performance in the last financial year has took the shine of the potential deal, and it is exactly that, a potential deal. As likely as it is to be completed, it isn't yet . I suspect the SP will correct once the deal gets over the line and last year's results have been published. They haven't proven themselves to manage cash well previously, and having £25m in the bank doesn't guarantee they will do going forward. Investors will want to see clear direction from the BOD going forward, and maybe even an RNS of a big win to have confidence to invest or hold.

Fair points shandy, so my calcs should be worse case.. we will start to trend up soon.

I believe there are a number of things playing out currently;

-profit takers that got in sub 5p, which there there will be a lot, as we were down near 3p for a while.

-shareholders from legacy acquisitions cashing in. They have been sat on shares way below market value for some time and they are probably frustrated. I know this to be true, as I am one.. :)

-MM's playing the game to mop up cheap shares, as some of the trades today/yesterday just do not make sense.

I suspect we will settle down back end of this week and start to normalise up until the day of the vote. Once the deal is ratified I fully expect this to bounce north of 8p and hopefully test 10p. I think we will only push on from there once the AIM market as a whole starts to improve.

The interims project the Energy Services EBITDA to be £2.3 million. If you wind this down to a flat £2m to take into account the expected under performance as cited in the RNS, this gives a share price of 3.6p based on 7x. 5.2p on 10x.

I calculate the £25m to be the equiv of 6.5p (£25m/387.2m shares). This gives a fair value range of 10-12p before considering any upside 'potential'.

I agree, I was expecting it to prop above 9p and test 10p and beyond, but quite the opposite. It looks like we have a big seller at 8p, possibly an investor cashing in, which keeps pulling the rug.. I suspect we will bounce around for a few days until the system is flushed and then charge north to 10p+.

They got there in the end.. Hopefully the profit takers are mopped up quickly. I also suspect share holders from legacy acquisitions may look to cash in also, muting the upside further in the short term. Real price action will likely occur once the deal actually goes through following the AGM in Feb. We will see. good luck all.

There you go! I hang my hat on a Monday sale RNS.