Last checked at 11 Aug 2014 07:00
11th August 2014
Good Energy Group PLC ("Good Energy" or the "Group" or the "Company")
Trading update
Strong customer growth and positive momentum across the generation business
The Board of Good Energy Group PLC (GOOD:LON), the AIM quoted renewable electricity supplier, is pleased to announce its trading update for the six months ended 30 June 2014 with the Group continuing to make positive progress towards its strategic objectives, across both the supply and generation businesses, tempered by reduced customer energy usage in line with the wider market.
Highlights
Supply
o Strong customer growth with increased market share across all customer bases against backdrop of lower energy consumption as a result of the mild winter
Customer type | H1: 30 June 2014 | H1: 30 June 2013 | Year-on-Year Growth | FY: 31 Dec 2013 | Growth since FY |
Electricity | 46,000 | 34,000 | +35% | 40,000 | +15% |
Gas | 20,000 | 11,000 | +82% | 15,000 | +33% |
Feed-in-tariff sites | 66,000 | 52,000 | +27% | 59,000 | +13% |
Total | 132,000 | 97,000 | +36% | 114,000 | +16% |
o Voted top of the Which? energy company customer satisfaction survey for the third consecutive year
o Pricing remains competitive with the "Big 6"
Generation/Development
o Hampole Wind Farm fully commissioned, on schedule and to budget
o Wind assets produced 16.8GWh of electricity, up 13%
o First 5MW solar park in Dorset commissioned, and a second 1.8MW solar park in North Cornwall just gone 'live'
o Planning approvals received for a 49.9MW and 4.9MW solar park
o Sale of 49.9MW solar site at West Raynham, Norfolk
Juliet Davenport OBE, Chief Executive, said:
"Our strong customer growth so far this year demonstrates that our offer of competitive pricing, 100% renewable electricity and award-winning customer service is compelling to an increasing number of consumers and businesses. Alongside managing our cost base appropriately, the significant increase in customer numbers is expected to drive future momentum.
"We have made huge strides in developing our generating capacity and now have contracts in place with 800 independent generator supply sites. Our continued investment towards our owned generation of 200MW target is indicative of our commitment to deliver a cleaner, greener and more secure energy source for the UK, the importance of which is highlighted by continued political uncertainty in Eastern Europe."
Supply
On the supply side, the number of electricity customers increased by 35% to almost 46,000 (H1 2013 34,000) and the number of gas customers by 82% to 20,000 (H1 2013 - 11,000). In addition, further Feed-in-Tariff sites were added bringing the total to 66,000, an increase of 27% (H1 2013 - 52,000). This brings the company's overall customer base to 132,000, a 36% year-on-year increase (H1 2013 - 97,000).
The strong customer growth rates seen in 2013 continued during the first half of 2014, reflecting the impact of the winter price freeze, the Company topping the Which? energy company customer satisfaction survey for the third year running and continued consumer dis-satisfaction with the 'Big 6'. In terms of pricing, Good Energy remains competitive and the Board continues to evaluate and develop new methods and products to enhance customer acquisition and retention.
In common with the rest of the market, we have seen lower energy use compared with the same period last year, as a consequence of the mild winter and continued improvement in consumers' energy efficiency.
Our business customers form an important part of our growing customer base, and this is an area of increasing focus for us. We have recently renewed our supply contract with the retailer SuperGroup and are due to commence a new contract with the Eden Project this autumn. We would expect business gains of this nature to become an increasing part of our customer portfolio.
The new trading and customer relationship management (CRM) systems have both now settled into full operation, providing strong platforms to support future growth as well as providing enhanced functionality to improve efficiency and customer service. Further investment is being made into end-to-end customer processes to enhance the customer experience and ensure that the benefits of CRM are fully embedded in the business.
Generation / Development
As expected, the operating assets have undergone a step change during the first half of 2014, with Hampole Wind Farm being fully commissioned on schedule and to budget in the first half of 2014. Delabole Wind Farm also continued to perform well in a period of high wind levels and together, to the half year, these assets alone produced some 16.8 GWh of electricity, up 13% from 14.9 GWh in H1 2013. The generation business has also recently commissioned the Group's first 5MW solar park in Dorset and an additional 1.8MW solar park in North Cornwall has just begun exporting to the grid.
The development business continues to build its portfolio of renewable energy generation capacity. Planning approvals have been received for 49.9MW and 4.9MW solar parks in the current year, and plans for a third 25MW wind farm in Cornwall are currently under consideration by the planning authority, and the company currently has more than 64MW of solar developments already approved by planning authorities. Further progress in this area is expected during the remainder of the current year.
Terms have also now been agreed to sell Good Energy's 49.9MW solar site in West Raynham, Norfolk, to a member of the Trina Solar group. The total sale value, which will be received in cash, will be between £3.4 million and £6.8 million and the net profit on sale received by the Company for the development of the site will be between £1.4 million and £3.8 million depending on when the site is completed and commissioned.
The Board continues to monitor the availability and cost of funding as part of its decisions to either fund and commission each site or to sell, in order to realise each site's optimum value. The Board has also sought to increase the long term diversification of its sources of renewable electricity generation with the acquisition of an option over 10% of the future electricity generated by the 320MW Swansea Bay Tidal Lagoon project, together with a strategic investment in that development stage project. It has also built support for its wind and solar projects through continued local community engagement and continues to seek opportunities for local community participation in and benefit from its on-going development activities.
Outlook
In common with other suppliers in the industry, we have seen a reduction in demand for energy during the first six months of the year as a result of the mild winter. At the same time, we have made further business investment, with an increased marketing spend, customer service improvements and expenditure to meet industry regulatory requirements. The Board believes that these investments will all serve to further establish Good Energy at the forefront of the independent renewable electricity supply and generation sector. The impact of this investment will be reflected in our half year interim results.
The Board nonetheless expects the Company's full year performance to be in line with its expectations. However, this is dependent on the level of profit achieved through the sale of West Raynham, continued customer growth and no further reduction in energy usage. It is confident that Good Energy will continue to see strong customer growth and further development of new generation capacity which supports our progress towards our overall strategic goals.
Ends
For further information, please contact:
Good Energy Group plc Juliet Davenport, Chief Executive |
01249 766795
|
N+1 Singer (Nominated Adviser & Broker) Andrew Craig, Ben Wright |
020 7496 3000
|
Camarco Billy Clegg, Georgia Mann |
020 3757 4980
|
Good Energy press office Gill Dickinson |
01249 765540 |
Notes to editors:
- Good Energy is a fast-growing 100% renewable electricity supply company, offering value for money and award-winning customer service.
- An AIM-listed PLC, and founder member of the Social Stock Exchange, its mission is to support change in the energy market, address climate change and boost energy security.
- Good Energy matches over the course of a year all the electricity its customers use with power from renewable sources.
- For the last three years, the company has topped the Which? energy company customer satisfaction survey. Good Energy's dual fuel tariff is cheaper on average than the standard tariffs sold by the 'Big 6' before discounts.
- It now has more than 46,000 renewable electricity customers and 20,000 gas customers. It works with a community of 66,000 small and medium scale renewable electricity generators (All figures as at 30 June 2014).
- Good Energy is the owner of Delabole Wind Farm, the UK's first commercial wind farm, and also owns and operates Hampole Wind Farm, near Doncaster. The company also owns and operates two solar farms - Woolbridge in Dorset, and Creathorne Farm in North Cornwall.
- Good Energy aims to deliver 50% of electricity from its own renewable generation assets by 2016.
- It won Company of the Year in the British Renewable Energy Awards 2013 and was named as the best green electricity supplier 2013 by the UK's leading ethical and environmental magazine, Ethical Consumer. Most recently, it won Best Utilities PLC 2014 in the UK Stock Markets Awards.