Last checked at 15 Sep 2022 07:00
15 September 2022
Eneraqua Technologies plc
("Eneraqua Technologies", the "Company" or the "Group")
Half-Year Trading Update
and
Contract Wins
Eneraqua Technologies plc, a specialist provider of energy and water efficiency solutions, provides an update on trading for the six months ended 31 July 2022 (H1 FYJan23). The Group is also pleased to announce the award of multiple, multi-year contracts with both new and existing social housing and private sector clients to provide heat pump solutions, with a total contract value of up to £36m, to be phased across the next three years.
Activity in the first half of the year was strong and the Group was able to invest to enable it to execute successfully on its growth strategy. H1 revenue is expected to be at least £24m, with the weighting of full year activity traditionally falling into H2 due to the nature of client procurement calendars.
As highlighted in the Group's AGM Update on 29 July and further evidenced by the contract wins detailed above, the Company has a strong pipeline of opportunities for the current year and beyond with an Order Book1 providing full revenue cover for its FYJan23 revenue target and 79% for FYJan24.
Major contracts won during the period include:
· The award of multiple contracts which have been granted by new and existing social housing and private sector clients to provide heat pump solutions. These heat pumps will help improve the sustainability of their properties and reduce the energy bills of their residents.
· First Agritech contract to provide our ClimateSmart agricultural water efficiency solution to the State of Uttarakhand in India.
· Awarded two English local authority contracts to deliver net water neutrality pilot programmes.
Post half year end the Company completed the acquisition of Mathewson Holdings Ltd, an established provider of underfloor heating solutions for the health and commercial sectors. The initial consideration was £1.4m with a further consideration of £0.35m payable over two years. The acquisition extends the Group's low-carbon offering into the healthcare and commercial sectors utilising the strong synergies between underfloor heating systems and Eneraqua's existing expertise in ground and air source heat pumps.
The Company will announce its half year results for the six months ended 31 July 2022 on 11 October 2022.
Mitesh Dhanak, CEO of Eneraqua Technologies commented: "The first half of the financial year has been strong and we are confident of meeting our financial targets for the year. We have continued to grow revenues and secure a number of new contract wins, with the contract wins announced today underpinning existing market forecasts. It is clear that the underlying drivers of our end markets are accelerating, and we are confident in the growth prospects for both our Energy and Water businesses.
"The progress we have made to date coupled with the strength of our Order Book1 provides us with continued confidence that we will deliver on the Board's growth plans for the current year as well as strengthen our ability to deliver long term value for our shareholders."
1 Order Book defined as Contracted + Secured. Contracted = project contract issued and signed, with work started or ready to start. Secured = sum of a) tender process successful, awaiting project contract, and b) Directors' assumed win rate on Framework opportunities
For more information, please contact:
Eneraqua Technologies plc | Via Alma PR |
Mitesh Dhanak, CEO | www.eneraquatechnologies.com |
Iain Richardson, CFO | |
finnCap Limited - Nominated adviser and Broker | +44(0)20 7220 0500 |
Ed Frisby / Charlie Beeson - Corporate Finance | |
Andrew Burdis / Sunila de Silva - ECM | |
Alma PR - Financial PR and IR | +44(0)20 3405 0205 |
Justine James / Sam Modlin / Will Ellis Hancock | eneraqua@almapr.co.uk |
Notes to editors
Eneraqua Technologies (AIM:ETP) is a specialist in energy and water efficiency. The Group designs and delivers improved energy and water systems which utilise its wholly owned intellectual property, Control Flow HL2024. Energy was the first market the Company entered and this is the larger sector, with the Company focused on clients with end of life gas, oil or electric heating and hot water systems. The Group provides turnkey retrofit district or communal heating systems based either on high-efficiency gas or ground/air source heat pump solutions that support Net Zero and decarbonisation goals.
Water is a growing service offering focused on water efficiency upgrades for utilities and commercial clients including hotels and care homes. It has also expanded into agritech systems.
The activities in both areas are underpinned by the Company's wholly-owned intellectual property, the Control Flow HL2024 family of products which reduce water wastage and improve the performance of heating and hot water systems.
The Company's main country of operation is the United Kingdom. The Company's head office is in London with additional offices in Leeds, Washington (Sunderland), India, Spain and the Netherlands. The Company has 116 employees, with the majority employed within the UK. Eneraqua Technologies has received the London Stock Exchange's Green Economy Mark.
To find out more, please visit: www.eneraquatechnologies.com