eEnergy Group Regulatory News (EAAS)

4 February 2021

eEnergy Group plc

("eEnergy" or "the Group")

Pre-Close Trading Update

eEnergy Group plc (AIM: EAAS), a leading "Energy Efficiency-as-a-Service" (EEaaS) business in the UK and Ireland, is pleased to provide an update on trading for the six months to 31 December 2020.

Group Trading

The Group's business eLight, which provides "Light-as-a-Service" (LaaS) to schools and businesses, experienced strong organic growth in the period.

For the six months to 31 December 2020, the Group generated revenue (excluding the two week contribution from Beond) of approximately £6.6 million, a 235% increase on the equivalent six-month period to December 2019. Organic revenue grew by 125% on the six months to December 2019. All Group entities reported positive operating EBITDA.

The Group generated net income (before exceptional items) (1) of approximately £0.1 million, in-line with its previously announced break-even guidance.

The Group completed 111 projects, a 95% increase on the six-month period to December 2019. The average contract value of each project was 50% higher compared to the equivalent period in the prior year.

This growth has been driven by increased demand in the market for energy efficiency solutions, particularly, for the Group's EEaaS proposition. Customers can fund carbon reduction through the energy savings delivered, without investing capital upfront. The Group has experienced strong growth within the Academy and state school sector in the UK, and through the entry into new markets, including Northern Ireland.

In July, the Group expanded its LaaS offering to Academy and state schools through the acquisition of Renewable Solutions Lighting Ltd ("RSL"). The Board is pleased to report that RSL has been integrated into the eLight operating platform, which has reduced unit costs for RSL and improved pricing to its clients.

In addition, the Group is now benefitting from its exclusive OEM partnership with Venture Lighting Europe Limited ("Venture Lighting"), announced in October 2020. Venture Lighting has provided the Group with a white-label, eLight branded, LED technology solution on exclusive terms. An integrated supply chain has also increased operating efficiencies. Venture Lighting holds dedicated stock lines in the UK for eLight, which has meant the Group has avoided any supply chain disruption caused by Brexit or COVID-19.

Overall, more competitive technology pricing has improved eLight's gross margin for the period by more than 400 bps when compared to the equivalent period in the prior year.

Beond Acquisition

In December, eEnergy completed the acquisition of Beond Group Limited ("Beond"), a top 20 UK-based renewable energy consulting and smart procurement business, through a mix of consideration shares and placing shares. The integration of Beond into the Group is progressing well, and to date the business has performed as expected. As per previous guidance, the acquisition is expected to be materially earnings-enhancing in the first full year of ownership.

COVID-19 Update and Outlook

The Group's business model has been able to navigate the impact of COVID-19 with new contract wins, client properties largely remaining open and school closures allowing accelerated installations. The most recent lockdown has added some additional challenges in delaying customers' decision-making in contracting for new business. This may result in an extension of some project timeframes.

The Board remains confident that, with the current and expected contracted forward order book, together with active cross-sell engagement for customers across the eLight and Beond businesses, Group revenue and gross profit remain in-line with its expectations for the full year to 30 June 2021.

Also, the Board has recently strengthened the senior management team with the appointment of Rob Van Leeuwen, as Group COO. Rob brings 20 years of experience in the energy management sector, specialising in technology platforms and integration. The Group has also invested in a number of operational and corporate development roles, reflected in Group overheads, to accelerate the integration of Beond and the execution of the Group's stated "buy and build" strategy.

The Board expects the Group to achieve a break even net income (before exceptional items)(1) for the full year to 30 June 2021.

Harvey Sinclair, CEO, eEnergy commented: "eEnergy has made real progress over the last six months. eLight continues to benefit from strong organic growth, and the integration of our recent acquisition of Beond is progressing well.

"There has been growing interest in Light-as-a-Service from organisations, including schools, as they wrestle with the need to reduce costs and meet tough carbon reduction targets. This trend is evidenced by our significant year-on-year revenue growth and pipeline of opportunities. We are pleased to have delivered a small, inaugural profit for the interim period, in-line with our break even guidance.

"We are confident about the future, as we look to add to the energy efficiency services we can offer to customers, driven through execution of our "buy and build" M&A strategy. We are currently evaluating a number of strategic opportunities in our pipeline to build an integrated energy management and energy efficiency platform."

Note: (1) Net income before exceptional items (defined as transaction-related costs and share based payment expenses).

Contacts:

About eEnergy Group plc

eEnergy Group plc is a leading "Energy Efficiency-as-a-Service" (EEaaS) business focused on providing its core "Light-as-a-Service" ("LaaS"), to educational and commercial & industrial customers through its eLight and RSL operations in the UK and Ireland. The Group helps businesses and schools switch to LED lighting, typically for a fixed monthly service fee, avoiding any upfront payments.

eEnergy was admitted to AIM in January 2020. The Board's strategy is to develop eEnergy as a broader energy services company and acquire other businesses in the energy management sector. The market in the EU for energy efficiency services was approximately €25 billion in 2017 and is expected to double by 2025.

In December 2020, eEnergy completed the acquisition of Beond Group Limited. Beond is a UK-based renewable energy consulting and procurement business, whose services aim to reduce costs for clients and tackle climate change. Beond's services include provision of clean energy strategy, smart energy procurement, hedging strategies, bill validation, bureau services and market intelligence. However, its key offering is its proprietary platform used to run reverse energy auctions for clients.

eEnergy has been awarded The Green Economy Mark by the London Stock Exchange, which recognises a company's work on sustainability.

https://eenergyplc.com/