18
("
Un-audited Preliminary Results for the 12 months ended
Rising customer demand and investment in 2015 supports outlook for growth
"
"At the same time, the company has demonstrated high levels of flexibility and nimbleness in adapting its business approach to reflect the changes in Government energy policy, successfully delivering growth against this challenging backdrop.
"I'm confident that
Juliet Davenport OBE, Chief Executive
KEY HIGHLIGHTS:
Financial summary
Year ended 31 December |
2015 |
2014 |
Change |
Revenue |
|
|
12% |
Gross profit |
|
|
13% |
EBITDA |
|
|
28% |
Profit before tax |
|
|
-92% |
Cash balance |
|
|
-65% |
Net debt |
|
|
66% |
Basic (loss)/earnings per share (p.) |
(1.4p) |
12.6p |
- |
Final dividend per share (p.) |
2.3p |
2.3p |
0% |
Full year dividend per share (p.) |
3.3p |
3.3p |
0% |
· Significant customer growth with overall customer numbers up 44% to more than 219,400 (FY 2014: 152,500)
- Electricity customer numbers up 32% to around 68,000 (FY 2014: 51,500)
- Gas customer numbers up 55% to just over 38,800 (FY 2014: 25,000)
- Feed-in tariff (FIT) administration sites up by 48% to more than 112,600 (FY 2014: 76,000)
· Continued progress and investment made in pipeline of generation assets
- Total owned generation output up 83% to 77GWh (2014: 42GWh)
- Four solar farms built and commissioned bringing the total number of owned and operated solar sites to six, with a combined installed capacity of 30MW. Construction of a seventh 5MW solar farm began during Q4 2015 and is now 'live'
- Two wind farms at Delabole in
- Work continues on two new wind farm projects
· Total of
· Profit before tax from the Supply business has increased from
· Group profit before tax reduced by
· A new five year strategy for future profitable growth announced targeting a five-fold growth in customer numbers by the end of 2020 focusing on:
- Improving efficiency
- Investing in technology to improve customer experience
- Developing new and differentiated propositions for domestic and business customers
- Identifying scalable acquisition channels
For further information, please contact:
|
01249 766795 |
|
|
Arden Partners plc (Nomad & Broker) |
01214 238900
|
|
|
Camarco (Financial PR Adviser) |
0203 757 4980 |
|
|
Good Energy Press Office |
01249 765540
|
-
- An AIM-listed PLC, and founder member of the
- The company has consistently performed well in the annual Which? energy company customer satisfaction survey, winning first or second place in each of the last five years.
- It has more than 68,000 renewable electricity customers and 38,800 gas customers. It works with a community of 112,600 small and medium scale renewable electricity generators (all figures as at 31 December 2015).
-
-
Chairman's Statement
In 2015, overall customer numbers grew by 44% and
The company delivered profit before tax of
There was considerable focus on the renewable energy sector in the
At the same time, the
2015 saw a number of changes to
However, as a vertically integrated utility business, both generating and supplying renewable electricity,
In September, it announced its new strategic focus and five-year business plan. This is designed to deliver the company's growth target of a five-fold increase in customer numbers (household equivalents) from a total of 176,500 as at
The strategy focuses on four key areas:
· Improving efficiency
· Investing in technology to improve customer experience
· Developing new and differentiated propositions for domestic and business customers
· Identifying scalable acquisition channels
Matters of sustainability and corporate social responsibility are becoming increasingly important for businesses, and
A founder member of the
During the year, the company further invested in its management team and leadership capability, bringing new people on board with a broad range of skills and experience. The benefits of this additional strength are already being felt across the business. In addition, the company is proposing to introduce a long term incentive plan (LTIP) for the Executive team.
All these factors provide a good foundation from which to support the company's ambitions for growth. There has been an encouraging start to 2016, with planning permission received for three solar farms, and continued momentum in customer growth. This gives confidence in the outlook for the remainder of the year.
I would like to set on record my thanks to everyone at
I would also like to thank all our customers for their support and commitment in helping us to address climate change.
Strategic review
As noted in the company's 2015 interim report,
The company sees strong prospects for growth in the renewables sector as evidenced by the momentum achieved at the 2015 Paris climate talks, where governments around the world united in their commitment to tackle climate change.
The challenge of delivering a climate change programme that keeps to the agreed pathway presents a major risk to the balance sheets of some of the world's largest companies. The Governor of the
At the same time, in the
Customers
It seeks to achieve this by delivering improved efficiency, investing in technology to improve customer experience, developing new and differentiated propositions for domestic and business customers, and identifying scalable acquisition channels.
In the business sector,
The focus on the domestic sector will be to drive down the cost to serve and introduce enhanced digital technology which will deliver a better experience for customers.
Similarly, it will target efficiencies in its Feed-in Tariff (FIT) business and explore new opportunities for solar and battery storage.
Generation
The focus on generation will shift to wind power in the medium term. In the longer term,
The company will also seek to secure access to long term supplies of renewable electricity through growing its network of power purchase agreements.
Research and innovation
As part of this approach, the company plans to launch a new 'green gas' product during
The new five-year strategy will support
Although there are risks and uncertainties,
Investments
For example, a new smart phone 'app' was launched to help customers take and submit meter readings. At the same time, the company has introduced a new on-line portal, enabling customers to opt for on-line billing, submit meter readings or activate other services.
2015 also saw the company's first successful 'clean energy' collective switch which delivered just under 10,000 new domestic customers, nearly 80% of which are dual fuel. It has also continued to invest in the planning and development of new generation projects with four solar farms coming on stream in 2015. A further three received planning permission early in 2016.
Planned investment for 2016 includes a new billing system, and enhancements to existing processes and systems.
Key Performance Indicators
The strategic KPIs are reported to the Board, Executive and Heads of Function on a monthly basis with lead and lag success indicators reported more frequently within the business. This enables consistency of reporting at all levels and provides a balanced overview of the health and performance of the company.
CUSTOMERS
OPERATIONAL
Supply
The customer is at the heart of the company's enhancements to its systems, processes and staff training and this ensures cost to serve reductions are managed alongside continual improvements in the whole
Generation
Its generation business goal is to maximise efficiency and return on investment across its portfolio of wind and solar sites. Performance will be measured by availability - the % of time each site is available to generate.
Across the company
Two further operational KPIs, introduced early in 2016, will have an impact across
The second will monitor the effectiveness of its risk management processes.
FINANCIAL PERFORMANCE
The company's financial performance is of fundamental importance to all stakeholders.
The funding strategy of the business is also reviewed on a regular basis to ensure that both the cost of funding and the balance between debt and equity funding are appropriate for the business and provide the foundation to support its future growth plans.
PEOPLE
The Executive team is focused on developing the culture of
To achieve this, the company has invested in a programme to embed its core values into its people management processes. This is supported by an improved learning and development programme and company reward strategy.
Additional KPIs introduced in 2015 included employee engagement and employee retention. Employee engagement is measured company-wide on an annual basis. The first set of results, collected in Q4 2015, showed an engagement score of 78%, which is an extremely strong result for the organisation's first formal engagement survey. The highest performing businesses industry-wide aim for a score of 80% or higher.
Employee retention is also an important enabler of the company's growth plans, ensuring the business can retain the skills and knowledge it requires. By investing in employee development and encouraging internal promotions,
To support the company's ambition for continued growth, investment in people, capability development and systems during the year was maintained. This investment enabled the company to hire a number of new senior roles, bringing in additional skills to ensure it is able to respond effectively to maximise the business growth opportunities.
Chief Executive's Review
2015 was a year of political change and uncertainty for the renewable energy industry. Throughout this period,
In the autumn of 2015,
Supply
Gas customer numbers rose by 55% to 38,800 (2014: 25,000) while there was a 48% rise in FIT customer numbers to 112,600 (2014: 76,000). Business sales revenue grew 30% during the year (2014: 22%), reflecting a number of factors including a year on year improved competitive pricing position, rising brand awareness through avenues such as social media and increased interest in corporate social responsibility. The number of sites supplied almost doubled, while the amount of power delivered to business customers grew by more than 52%.
These figures reflect
Generation & development
During the year, the company also continued to invest in its pipeline of generation sites. Four solar farms were built and commissioned during the 12-month period, bringing the total number of owned and operated solar sites to six, with a combined installed capacity of 30MW. Construction of a seventh 5MW solar farm began during the last quarter of 2015 and the site is now 'live'. Planning consent for a further three sites was received early in 2016. These sites will be developed to balance appropriate returns on the company's assets with an objective of securing access to long term renewable electricity to support customer growth.
Output from its two wind farms at Delabole (
As a result, the team will now concentrate on
The company invested in a new finance system during the year to facilitate improved internal reporting and as an ongoing driver to reduce costs as the organisation continues to grow. It also rolled out a new on-line portal, which more than 25% of the customer base has already signed up to. A new meter reading 'app' was also unveiled, which is supporting the company to produce regular accurate bills.
The company has grown considerably since its creation and 2015 was a year of particularly strong expansion. It now employs more than 300 staff at its Chippenham,
A project to refresh and further embed the company's core values across the organisation was rolled out during the year. This has provided the framework to help all employees maximise their potential and successfully deliver the company's strategy and objectives. The work on this has been reflected in relatively high employee engagement scores, which compare well with other high performing organisations.
Corporate Social Responsibility (CSR)
The company continued to make a positive impact on addressing climate change during the year. It added four new solar farms to its portfolio by the year end, increasing the amount of renewable electricity generation.
An increasing number of customers also opted to buy the company's 100% renewable electricity, enabling each individual to reduce their carbon footprint. The average
The company will shortly be releasing its first Sustainability Report, which addresses and refreshes the company's approach to CSR and associated reporting.
The company has continued to build upon its work with a range of like-minded partners during the year, including the
The company remains committed to supporting and working with local communities so that they can benefit from its wind and solar development activities, and has set up community funds alongside each of the new solar farms it commissioned during the year. The local tariffs for customers living close to the company's two wind farms remain in place and in August, Delabole residents enjoyed a windfall payment to reflect the high performance of the site's four turbines.
Looking ahead
The business sector will be a focus for
The domestic customer proposition will continue to develop and build on the progress made in 2015, such as the on-line portal and the
The company's approach to its development of assets will be adapted in the short term to reflect the impact of government policy. It remains optimistic about the available returns from operational assets and its ability to secure the long term supply of renewable electricity required to match growing customer demand.
Chief Financial Officer's Review
Financial performance overview
It delivered a profit before tax of
Profit before tax and exceptional items of
Financial performance by segment
The Supply business delivered a profit before tax of
The Supply business benefitted from a non-recurring credit of
Administration costs grew by 13%, reflecting strong cost control. The Supply business generated a positive cash flow in 2015.
The Generation business delivered a loss before tax of
Financial position and financing
The long term fixed rate funding facility secured at the end of 2014 has supported the growth of
In the autumn,
Consolidated Statement of Comprehensive Income (Unaudited)
For the year ended 31 December 2015
|
2015 |
2014 |
|
£000's Unaudited
|
£000's Audited |
REVENUE |
64,281 |
57,618 |
Cost of Sales |
(42,982) |
(38,782) |
GROSS PROFIT |
21,299 |
18,836 |
Administrative Expenses |
(17,065) |
(15,045) |
|
|
|
OPERATING PROFIT |
4,234 |
3,791 |
Finance Income |
23 |
87 |
Finance Costs - including exceptional item |
(4,129) |
(2,590) |
|
|
|
PROFIT BEFORE TAX AND EXCEPTIONAL FINANCE COST |
- |
2,169 |
Exceptional Finance Cost |
- |
(881) |
|
|
|
PROFIT BEFORE TAX |
128 |
1,288 |
|
|
|
Taxation |
(323) |
520 |
(LOSS)/PROFIT FOR THE YEAR
|
(195) |
1,808 |
|
|
|
OTHER COMPREHENSIVE INCOME: |
|
|
Items that may subsequently be reclassified to profit or loss |
|
|
Loss on cash flow hedge |
- |
(328) |
Other comprehensive loss for the year, net of tax |
- |
(328) |
|
|
|
TOTAL COMPREHENSIVE (EXPENSE)/INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY |
(195) |
1,480 |
|
|
|
|
|
|
|
|
|
(Loss)/earnings per share from profit for the year - Basic |
(1.4p) |
12.6p |
- Diluted |
(1.4p) |
11.9p |
Consolidated Statement of Financial Position (Unaudited)
As at 31 December 2015
|
2015 |
2014 |
|
£000's |
£000's |
|
Unaudited |
Audited |
ASSETS |
|
|
Non-current assets |
|
|
Property, plant and equipment |
60,984 |
44,729 |
Intangible assets |
3,317 |
3,530 |
Restricted deposit accounts |
2,801 |
- |
Investments |
502 |
500 |
Total non-current assets |
67,604 |
48,759 |
|
|
|
Current assets |
|
|
Inventories |
9,482 |
6,466 |
Trade and other receivables |
11,598 |
10,281 |
Current tax receivable |
126 |
109 |
Cash and cash equivalents |
4,751 |
13,703 |
Total current assets |
25,957 |
30,559 |
TOTAL ASSETS |
93,561 |
79,318 |
|
|
|
EQUITY AND LIABILITIES |
|
|
Capital and reserves |
|
|
Called up share capital |
748 |
733 |
Share premium account |
9,786 |
9,077 |
EBT shares |
(1,074) |
(127) |
Retained earnings |
7,483 |
8,260 |
Total equity attributable to members of the parent company |
16,943 |
17,943 |
|
|
|
Non-current liabilities |
|
|
Deferred taxation |
567 |
15 |
Borrowings |
55,911 |
39,676 |
Total non-current liabilities |
56,478 |
39,691 |
|
|
|
Current liabilities |
|
|
Borrowings |
5,626 |
6,608 |
Trade and other payables |
14,514 |
15,076 |
Total current liabilities |
20,140 |
21,684 |
Total liabilities |
76,618 |
61,375 |
TOTAL EQUITY AND LIABILITIES |
93,561 |
79,318 |
Consolidated Statement of Changes in Equity (Unaudited)
For the year ended 31 December 2015
|
Share Capital |
Share Premium |
EBT Shares |
Retained Earnings |
Total |
|
£000's |
£000's |
£000's |
£000's |
£000's |
At 1 January 2014 |
733 |
9,077 |
(236) |
6,890 |
16,464 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
1,808 |
1,808 |
Other comprehensive expense for the year |
- |
- |
- |
(328) |
(328) |
Total comprehensive income for the year |
- |
- |
- |
1,480 |
1,480 |
|
|
|
|
|
|
Share based payments |
- |
- |
- |
30 |
30 |
Tax credit relating to share option scheme |
- |
- |
- |
311 |
311 |
Sale of shares by EBT |
- |
- |
109 |
21 |
130 |
Dividend paid |
- |
- |
- |
(472) |
(472) |
Total contributions by and distributions to owners of the parent, recognised directly in equity |
- |
- |
109 |
(110) |
(1) |
At 31 December 2014 |
733 |
9,077 |
(127) |
8,260 |
17,943 |
|
|
|
|
|
|
At 1 January 2015 |
733 |
9,077 |
(127) |
8,260 |
17,943 |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
(195) |
(195) |
Other comprehensive expense for the year |
- |
- |
- |
- |
- |
Total comprehensive expense for the year |
- |
- |
- |
(195) |
(195) |
|
|
|
|
|
|
Share based payments |
- |
- |
- |
51 |
51 |
Tax credit relating to share option scheme |
- |
- |
- |
(151) |
(151) |
Issue of ordinary shares |
15 |
709 |
- |
- |
724 |
Purchase of shares by EBT |
- |
- |
(1,150) |
- |
(1,150) |
Sale of shares by EBT |
- |
- |
203 |
(4) |
199 |
Dividend paid |
- |
- |
- |
(478) |
(478) |
Total contributions by and distributions to owners of the parent, recognised directly in equity |
15 |
709 |
(947) |
(582) |
(805) |
At 31 December 2015 |
748 |
9,786 |
(1,074) |
7,483 |
16,943 |
Consolidated Statement of Cash Flows (Unaudited)
For the year ended 31 December 2015
|
2015 |
2014 |
|
£000's |
£000's |
|
Unaudited |
Audited |
Cash flows from operating activities |
|
|
Cash generated from operations |
1,590 |
3,697 |
Finance income |
23 |
87 |
Finance cost |
(3,277) |
(2,644) |
Income tax received/(paid) |
59 |
(500) |
Net cash flows from operating activities |
(1,605) |
640 |
|
|
|
Cash flows from investing activities |
|
|
Purchase of property, plant and equipment |
(17,750) |
(18,316) |
Purchase of intangible fixed assets |
(492) |
(619) |
Deposit into restricted accounts |
(2,801) |
- |
Acquisition of unquoted investment |
- |
(500) |
Net cash flows used in investing activities |
(21,043) |
(19,435) |
|
|
|
Cash flows from financing activities |
|
|
Payments of dividends |
(451) |
(472) |
Proceeds from borrowings |
24,749 |
25,983 |
Repayment of borrowings |
(10,348) |
(11,035) |
Capital repayments of finance leases |
- |
(83) |
Purchase of own shares |
(453) |
- |
Sale of own shares |
199 |
130 |
Net cash flows from financing activities |
13,696 |
14,523 |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(8,952) |
(4,272) |
Cash and cash equivalents at beginning of year |
13,703 |
17,975 |
Cash and cash equivalents at end of year |
4,751 |
13,703 |
Included in cash and cash equivalents is £1.7m (2014: £nil) which is available for use in specific circumstances (such as repayment of financing costs) as set out in the Company's loan agreement
Notes to the Financial Information
1. Basis of Preparation
Good Energy Group PLC is an AIM listed company incorporated and domiciled in the United Kingdom under the Companies Act 2006.
The principal activity of Good Energy Group PLC is that of a holding and management company to the Group. Fuller information on the Group's activities is set out in the Chairman's statement, Chief Executive's review and the Chief Financial Officer's review.
The unaudited Preliminary Report has been prepared under the historical cost convention and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and interpretations in issue at 31 December 2015.
The Preliminary Report was approved by the Approvals Committee and the Audit Committee and adopted by the Board of Directors. The Preliminary Report does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006 and has not been audited.
Statutory accounts for the year to 31 December 2014 have been delivered to the Registrar of Companies. The audit report for those accounts was unqualified and did not contain statements under 498 (2) or (3) of the Companies Act 2006 and did not contain any emphasis of matter.
The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2014, as described in those financial statements. New standards or interpretations which came into effect for the current reporting period did not have a material impact on the net assets or results of the Group.
The Preliminary Report is presented in pounds sterling because that is the currency of the primary economic environment in which the Group operates.
The Preliminary Report will be announced to all shareholders on the and published on the Group's website on 18 March 2016. Copies of the announcement will be available to members of the public upon application to the Company Secretary at Monkton Reach, Monkton Hill, Chippenham, Wiltshire, SN15 1EE.
2. Segmental Analysis
The chief operating decision-maker has been identified as the Board of Directors (the 'Board'). The Board reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The Board considers the business from a business class perspective, with each of the main trading subsidiaries accounting for each of the business classes.
The main segments are:
· Supply Companies (including electricity supply, FIT administration and gas supply)
· Electricity Generation Companies (including wind and solar generation companies)
· Generation Development (including early stage development companies)
· Holding companies, being the activity of Good Energy Group PLC
The Board assesses the performance of the operating segments based primarily on summary financial information, extracts of which are reproduced below. An analysis of profit and loss, assets and liabilities and additions to non-current asset, by class of business, with a reconciliation of segmental analysis to reported results follows:
Segmental Analysis: 31 December 2015
|
Electricity Supply |
FIT Admini-stration |
Gas Supply |
Total Supply Companies |
Electricity Generation |
Generation Development |
Holding Companies / Consolidation Adjustments |
Total |
|
|
£000's |
£000's |
£000's |
£000's |
£000's |
£000's |
£000's |
£000's |
|
Revenue |
|
|
|
|
|
|
|
|
|
Revenue from external customers |
40,192 |
3,902 |
16,411 |
60,505 |
3,576 |
200 |
- |
64,281 |
|
Inter-segment revenue |
- |
- |
- |
- |
3,882 |
- |
(3,882) |
- |
|
Total revenue |
40,192 |
3,902 |
16,411 |
60,505 |
7,458 |
200 |
(3,882) |
64,281 |
|
|
|
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
|
|
|
|
Cost of sales |
(24,542) |
(1,655) |
(12,987) |
(39,184) |
(3,440) |
(358) |
- |
(42,982) |
|
Inter-segment cost of sales |
(3,882) |
- |
- |
(3,882) |
- |
- |
3,882 |
- |
|
Gross Profit |
11,768 |
2,247 |
3,424 |
17,439 |
4,018 |
(158) |
- |
21,299 |
|
Administrative expenses |
|
|
|
(12,877) |
(353) |
(1,448) |
(1,408) |
(16,086) |
|
Depreciation & amortisation |
|
|
|
(975) |
- |
(3) |
(1) |
(979) |
|
Operating profit/(loss) |
|
|
|
3,587 |
3,665 |
(1,609) |
(1,409) |
4,234 |
|
Net finance income/(costs) |
|
|
|
136 |
(4,301) |
(494) |
553 |
(4,106) |
|
Profit/(loss) before tax |
|
|
|
3,723 |
(636) |
(2,103) |
(856) |
128 |
|
|
|
|
|
|
|
|
|
|
|
Segments assets & liabilities |
|
|
|
|
|
|
|
|
|
Segment assets |
|
|
|
34,628 |
96,091 |
6,778 |
(43,936) |
93,561 |
|
Segment liabilities |
|
|
|
29,040 |
94,239 |
12,414 |
(59,075) |
76,618 |
|
Net assets/(liabilities) |
|
|
|
5,587 |
1,852 |
(5,636) |
15,140 |
16,943 |
|
Additions to non-current assets |
|
|
|
755 |
18,090 |
- |
- |
18,845 |
|
Segmental Analysis: 31 December 2014
|
Electricity Supply |
FIT Admini-stration |
Gas Supply |
Total Supply Companies |
Electricity Generation |
Generation Development |
Holding Companies / Consolidation Adjustments |
Total |
|
£000's |
£000's |
£000's |
£000's |
£000's |
£000's |
£000's |
£000's |
Revenue |
|
|
|
|
|
|
|
|
Revenue from external customers |
31,593 |
2,544 |
11,568 |
45,705 |
1,754 |
10,159 |
- |
57,618 |
Inter-segment revenue |
- |
- |
- |
- |
2,106 |
- |
(2,106) |
- |
Total revenue |
31,593 |
2,544 |
11,568 |
45,705 |
3,860 |
10,159 |
(2,106) |
57,618 |
|
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
|
|
|
Cost of sales |
(19,789) |
(1,619) |
(9,064) |
(30,472) |
(1,840) |
(6,470) |
- |
(38,782) |
Inter-segment cost of sales |
(2,106) |
- |
- |
(2,106) |
- |
- |
2,106 |
- |
Gross profit |
9,698 |
925 |
2,504 |
13,127 |
2,020 |
3,689 |
- |
18,836 |
Administrative expenses |
|
|
|
(11,812) |
(271) |
(1,251) |
(895) |
(14,229) |
Depreciation & amortisation |
|
|
|
(808) |
- |
(4) |
(4) |
(816) |
Operating profit/(loss) |
|
|
|
507 |
1,749 |
2,434 |
(899) |
3,791 |
Net finance income/(costs) |
|
|
|
(13) |
(2,346) |
(430) |
286 |
(2,503) |
Profit/(loss) before tax |
|
|
|
494 |
(597) |
2,004 |
(613) |
1,288 |
Segments assets & liabilities |
|
|
|
|
|
|
|
|
Segment assets |
|
|
|
21,910 |
63,214 |
13,626 |
(19,432) |
79,318 |
Segment liabilities |
|
|
|
(15,000) |
(58,518) |
(16,889) |
29,032 |
(61,375) |
Net assets/(liabilities) |
|
|
|
6,910 |
4,696 |
(3,263) |
9,600 |
17,943 |
Additions to non-current assets |
|
|
|
247 |
25,208 |
- |
- |
25,455 |
All turnover arose within the United Kingdom.
Consolidation adjustments relate to intercompany sales of generated electricity and the elimination of intercompany balances.
3. Finance Income & Cost
Finance Income: |
2015 |
2014 |
|
|
£000's |
£000's |
|
Bank and other interest receivables |
23 |
87 |
|
|
|
|
|
Finance Cost: |
2015 |
2014 |
|
|
£000's |
£000's |
|
On bank loans and overdrafts |
3,192 |
1,467 |
|
On corporate bond |
1,110 |
929 |
|
Other interest payable |
1 |
56 |
|
Amortisation of debt issue cost |
327 |
196 |
|
Exceptional finance cost on repayment of borrowings |
- |
881 |
|
Total finance costs |
4,630 |
3,529 |
|
Less: amounts capitalised on qualifying assets |
(501) |
(939) |
|
Total |
4,129 |
2,590 |
|
4. Taxation
|
2015 |
2014 |
|
£000's |
£000's |
Analysis of Tax Charge in Year |
|
|
Current tax |
167 |
- |
Adjustments in respect of prior years |
(243) |
(108) |
Total current tax |
(76) |
(108) |
|
|
|
Deferred Tax |
|
|
Origination and reversal of temporary differences |
(134) |
(420) |
Adjustments in respect of prior years |
533 |
8 |
Total deferred tax |
399 |
(412) |
Tax on profit on ordinary activities |
323 |
(520) |
Factors affecting the tax charge for the year
The tax assessed for the year is higher (2014: lower) than the standard weighted average rate of Corporation Tax in the UK of 20.25% (2014: 21.5%). The differences are explained as follows:
|
2015 |
2014 |
|
£000's |
£000's |
Profit before tax |
128 |
1,288 |
Profit before tax multiplied by the weighted average rate of Corporation Tax in the UK of 20.25% (2014: 21.5%)
|
26 |
277 |
Tax effects of: |
|
|
Expenses not deductible for tax purposes |
(9) |
(2) |
Non-taxable gain on sale of investment |
- |
(728) |
Effects in changes in tax rate |
16 |
33 |
Prior year adjustment - current tax |
(243) |
(108) |
Prior year adjustment - deferred tax |
533 |
8 |
Total tax charge/(credit) for year |
323 |
(520) |
5. Loss/earnings per Ordinary Share
Basic
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to owners of the Company by the weighted average number of ordinary shares during the year after excluding 521,989 (2014: 208,863) shares held by Clarke Willmott Trust Corporation Limited in trust for the Good Energy Group Employee Benefit Trust.
|
2015
|
2014
|
(Loss)/profit attributable to owners of the Company (£000's) |
(195) |
1,808 |
Basic weighted average number of ordinary shares (000's) |
14,455 |
14,322 |
Basic (loss)/earnings per share |
(1.4p) |
12.6p |
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to assume conversion of all potentially dilutive ordinary shares. Potentially dilutive ordinary shares arise from awards made under the Group's share-based incentive plans. Where the vesting of these awards is contingent on satisfying a service or performance condition, the number of potentially dilutive ordinary shares is calculated based on the status of the condition at the end of the period. Potentially dilutive ordinary shares are actually dilutive only when the average market price of the Company's ordinary shares during the period exceeds their exercise price (options) or issue price (other awards). The greater any such excess, the greater the dilutive effect. In accordance with IAS 33 "Earnings per share", for the purposes of calculating diluted loss per share, the effect of potentially dilutive ordinary shares has not been taken into account for the year ended 31 December 2015. The average market price of the Company's ordinary shares during the year was 222p (2014: 243p). The dilutive effect of share-based incentives was nil (2014: 863,326 shares).
|
2015
|
2014
|
Profit attributable to owners of the Company (£000's) |
(195) |
1,808 |
Weighted average number of diluted ordinary shares (000's) |
14,455 |
15,185 |
Diluted (loss)/earnings per share |
(1.4p) |
11.9p |
6. Borrowings
|
2015 |
2014 |
|||
|
£000's |
£000's |
|||
Current: |
|
|
|||
Bank and other borrowings |
5,626 |
6,608 |
|||
Total |
5,626 |
6,608 |
|||
|
|
|
|
||
|
2015 |
2014 |
|||
|
£000's |
£000's |
|||
Non-Current |
|
|
|||
Bank and other borrowings |
41,265 |
24,981 |
|||
Bond |
14,646 |
14,695 |
|||
Total |
55,911 |
39,676 |
|||
The Group has undrawn bank overdraft facilities of £5,000,000 (2014: £5,000,000) as at 31 December 2015 and undrawn revolving credit facilities of £2,882,140 (2014: £6,500,000).
At 31 December 2015, £7,681,950 (2014: £8,102,446) of the bank loans relate to the Company's subsidiary, Good Energy Delabole Wind Farm Limited and is secured by a mortgage debenture on that Company.
At 31 December 2015, £37,959,777 inclusive of £659,777 of accrued interest (2014: £18,799,264 inclusive of £49,264 of accrued interest) of the bank loans relate to the Company's subsidiary, Good Energy Generation Assets No. 1 Limited. Repayments of capital and interest are scheduled quarterly over a period of 18 years. Interest is payable at 6.85% and the outstanding principal balance is partially exposed to annual RPI inflation over 3%. Costs incurred in raising finance were £2,627,109 (2014: £1,393,313) and are being amortised over the life of the loan in accordance with IAS39. The Company has drawn down £37,300,000 of the £53,500,000 loan facility as at 31 December 2015.
On 2 October 2013 Good Energy Group launched a corporate bond which closed on 24 October 2013 with subscriptions having reached the maximum target of £15,000,000. The bond was issued to bondholders on 22 November 2013 with interest scheduled bi-annually. The coupon rate is 7.25% or 7.50% for bondholders that are customers of the Group. Capital repayment of the bond is payable following notice being received from the bond holder no earlier than 4 years from inception. The total costs of issue were £770,879 which are being amortised over the life of the bond. As at 31 December 2015 the amortisation recognised in 'finance costs' totalled £165,982 (2014: £76,424).
|
|
|
7. Cash flows
|
2015 |
2014 |
|
£000's |
£000's |
Profit before income tax |
128 |
1,288 |
Adjustment for: |
|
|
Depreciation |
2,351 |
1,347 |
Amortisation |
703 |
567 |
Share based payments |
51 |
30 |
Finance costs - net |
4,106 |
2,503 |
Changes in working capital (excluding the effects of acquisition and exchange differences on consolidation) |
|
|
Inventories |
(3,871) |
(1,908) |
Trade and other receivables |
(1,317) |
(2,329) |
Trade and other payables |
(561) |
2,199 |
Cash generated from operations |
1,590 |
3,697 |
This information is provided by RNS