Good Energy Group Plc Preliminary results to 31 December 2019 March 2020
Agenda & presenters Overview & highlights Presenters Our market & opportunity Juliet Davenport • Chief Executive Officer Finance Rupert Sanderson • Chief Financial Officer Investing for growth 2 2 23 March 2020
Overview & highlights 3 23 March 2020
Continued delivery against strategy Strong business Increased FiT growth portfolio Kraken Investment in EV technology services platform Cash generative Financial and with strong cash operational balance resilience 4 4 23 March 2020
Coronavirus (COVID – 19) update Strong base to withstand ongoing market volatility Business No Operational Financially continuity significant integration of resilient with planning in financial Kraken cash place to impact of platform balance of ensure COVID-19 progressing £13.7m operational seen to date well effectiveness 5 5 23 March 2020
Our market & opportunity 6 23 March 2020
Our opportunity in a decentralising energy market • Over 40% of UK energy mix now from renewable energy sources • Market shifted from a few large generators to c. 1 million renewable generators in the UK today • Good Energy - a leading UK renewable energy Supply Share company with more home generation customers than energy energy supply customers • The clean energy grid of the future will be millions of households and businesses , generating, using and sharing their own power • These new generators will need energy services to support this investment and this shift represents a major opportunity for us 7 7 23 March 2020
The future of Good Expanded customer Home Business proposition Energy Sharing Energy Sharing Supply services Supply services Scale & efficiencies • Scale, efficiency, platform - Kraken investment • Scale, efficiency, system investments • Clear low carbon services roadmap and rollout • Expand number of customers we supply gas Roadmap for future energy • Leverage Zap Map customer base • Battery storage and B2B EV opportunities services Generation • Capital & operational efficiency • 47.5MW of installed renewable capacity • Net cash generative • Access to long term PPAs and SMART export services 8 8 23 March 2020
Strategic goals to drive growth Lower Increase Improve customer customer customer acquisition lifetime retention cost value Drive greater value from Implementing the Complementary new our customers through systems and scale to products and services for selling more products and acquire customers more them to stay with us for services and improved effectively longer efficiencies We believe the benefits to our customers will be more compelling propositions at a competitive price that will simplify their lives and cut carbon, whilst delivering sustainable value for all stakeholders 9 9 23 March 2020
Finance 10 23 March 2020
Financial highlights – income statement FY 2019 FY 2019 FY 2018 % change FY 2019 Continued delivery against Year end £000s continued discontinued continued continued reported operations operations operations operations Revenue 124,258 91 124,349 116,915 6.3% our strategic goals and Cost of Sales -92,601 -1,246 -93,847 -83,466 10.9% Gross Profit 31,657 -1,155 30,502 33,449 -5.4% investment in technology Administration Costs -25,219 225 -24,994 -26,800 -5.9% Operating Profit 6,438 -930 5,508 6,649 -3.2% Finance costs -4,273 0 -4,273 -4,345 -1.7% Share in loss of asociate -42 0 -42 0 Kraken Ongoing cost Underlying profit investment Business control and Discontinued before tax 2,123 -930 1,193 2,304 -7.8% costs incurred supply investment business wind Non - Underlying and performance underpinning down now costs implementation -865 0 -865 0 driving growth domestic complete underway and Profit before tax 1,258 -930 328 2,304 -45.4% business on track Tax -42 -32 -74 -660 -93.6% Profit after tax 1,216 -962 254 1,644 -26.1% 11 11 23 March 2020
Cashflow Year end £000s FY 2019 FY 2018 FY2017 Cash generative business Operational cashflows before working capital 9,991 10,626 8,783 model with strong cash balance Working capital movement -1,844 7,443 -8,756 Cash generated from operations 8,146 18,069 27 Finance and tax cost -4,031 -4,074 -4,956 Net cashflows from operating activities 4,115 13,995 -4,929 £8.1m cash Repayment of Working generated GE Bond 1 of Net cashflow from investing activities 1,357 -2,559 3,800 £6.3m of debt capital impact from £3.6m in June Net cashflows from financing activities -7,467 -9,494 8,560 repaid in the includes timing operations 2019 following period of large Net increase in cash and cash equivalents -1,995 1,942 7,431 underpinning sale of business wins investments Brynwhilach Cash and cash equivalents at beginning of year 15,662 13,720 6,289 in Q4 solar site Cash and cash equivalents at end of year 13,667 15,662 13,720 12 12 23 March 2020
Net debt & funding Continued reduction in underlying debt Gearing ratio Good Energy increased to bond I fully IFRS16 impact Prudent balance 68.9% from redeemed - of £5.4m in the sheet 68.5%. £3.6m fully period management Excluding repaid in June increasing net remains a IFRS16 gearing 2019 debt priority ratio decreased to 65.8% 13 13 23 March 2020
Capital allocation framework Organic Capital Strategic Dividends growth optimisation investments 14 14 23 March 2020
Financial outlook Underlying profit growth from both operating profit and interest savings Execution on investments across the business Progressive dividend policy Platform for significant returns beyond 2021 15 15 23 March 2020
Investing for growth 16 23 March 2020
Market background & objectives • Growing societal awareness and increasing demand for green products Secular shift in customer demand • Evolving corporate and financial institution focus • Domestic demand for green propositions and solutions continues to rise Growing addressable market • Changing Business needs to meet growing ESG requirements • Support Good Energy customers on their journey to have a zero-carbon Zero carbon future footprint in Heat, Electricity and Transport as part of a transition to a zero carbon Britain 17 17 23 March 2020
Our strengths Experts • Our 100% renewable status, over the past 20 years, gives us credibility with customers and the experience and knowledge to attract leading partners in the energy sector • Developed a proven expertise and understanding of renewables and clean technology; • Expert knowledge and high engagement through our people • Developing research in clean energy tech • Partnering to deliver innovative products and services • Strong reputation developed over time • Strong non-executive Board with expertise in brand development, renewables & digital platform (see Energy tech Partnerships appendix) 18 7 23 March 2020 18
Accelerate roll out of products and services Kraken Home Business Efficiencies & scale • Facilitate expansion • Growing addressable • Expand number of larger • Operating business model through transformational market - societal change electricity supply streamlined technology investment towards the climate crisis customers and extend into gas • Further savings reinvested • Proven technology - • Compelling customer in proposition customer experience propositions - enhanced • Roll out enhanced development and roll out improvements and service, competitive tariffs propositions - electric operational efficiency and a suite of low carbon vehicles and carbon reducing cost to serve home services improving reduction services retention 19 19 23 March 2020
Kraken – customer services platform Delivering growth with strong returns • Total forecast investment of up to £4m - cash and non cash impact • Return on investment expected within 18 months with efficiency savings reinvested across the Group • Test pricing strategies for increased competition and driving growth in 2021 and beyond • Significant scalable potential to onboard customers at pace Technology underpins the future of Good • Customer experience benefits through best in class technology • Underpinning domestic supply business in 2020 • Enables digital and clean technology innovation • Targeted marketing and new product launches 20 20 23 March 2020
Zap – Map: leveraging the UK’s leading EV platform Mapping platform • Market leader with close to 250,000 app downloads • Used my majority of UK EV drivers forming a highly engaged community • Dynamic data from over 75% of UK charging points Data & insights • Range of data products and services to match growing business requirements • Building online data portal - allowing businesses to understand and self serve • Real time market insights and analysis Payment solutions • Zap – Pay – the solution to interoperability • Simple in app payment solution across multiple networks • Reduces key barrier for mass EV adoption Investment for growth • Initial 12.9%, minority equity investment will increase to 50.1% • Able to convert £800k convertible loan to equity from April 2020 • Total investment of £1.07m - £0.87 invested to date with final £0.2m due in March 2020 21 21 23 March 2020
Recommend
More recommend
