Good Energy performing in line with expectations

Renewable electricity supplier and energy services company Good Energy Group said on Tuesday that performance in the year-to-date had been in line with its expectations, showing a “marked improvement” over 2020, which was adversely affected by several Covid-19 factors, including the first national lockdown.

The AIM-traded firm, which was holding its annual general meeting, said that alongside continued strong operational performance in the year so far, there had been a positive benefit to domestic supply gross margins from forward buying power in 2020 in a weaker commodity price environment.

Both electricity and gas volumes were higher than comparable periods in 2020, with electricity levels recovering from Covid-19-related impacts in 2020, and gas volumes benefitting from a colder-than-usual spring.

Operationally, Good Energy said its business billing system integration was progressing at pace, with 90% of accounts migrated to-date.

Smart meter rollout was also continuing, with 14,000 meters installed to-date, and of those, 9,000 had been installed in 2021.

The company said its smart meter rollout would accelerate its digital offering, describing it as a “building block” for its energy services.

“This platform has provided us with the ability to design multiple new, smart enabled tariffs, which promote further innovation and improves the speed of our product launches,” the board said in its statement.

“The recently launched ‘Zap Flash’ and ‘Green Driver’ tariffs are smart time-of-use tariffs for electric vehicle drivers, and are the first examples of a step towards genuinely smart products, including half hourly settlement for domestic customers.

“It is anticipated that business performance is returning to more normal seasonal expectations, where first half performance is stronger than second half.”

Cash collection so far in 2021 remained in line with seasonal expectations, while direct debit receipts had remained “robust”, with the company managing the expected short-term impact of business system migration.

As it had previously announced, the partial repayment of 70%, or £11.5m, of Good Energy Bonds II would be made on 30 June.

“The repayment will further simplify the capital structure, improve flexibility, and materially reduce financing costs,” the directors explained.

“We intend to continue in this direction, balancing the return on our assets, operating requirements, investment for growth and the resumption of dividend payments.”

Looking ahead, Good Energy Group said it was continuing to invest in the development of energy services propositions and a range of innovation projects to drive future profit growth.

Domestic and business billing platform integrations and smart meter rollout plans were on track, and the company’s ‘mobility-as-a-service’ offering was developing solutions for the electrification of transport for business and domestic customers.

“We are pleased with the performance of the business in the first half of the year to date, particularly in the positive rebound from Covid-19-related impacts last year,” said chief executive officer Nigel Pocklington.

“We continue to make good progress across the business, both in operational effectiveness and ongoing investments.

“In the short time that I have been in post, I have been impressed with the financial and operational robustness of the business.”

At 0902 BST, shares in Good Energy Group were up 0.18% at 284p.