24 September 2015
Un-audited Interim Results for the six months ended
Customer numbers grow by more than a third in support of continued growth momentum.
"We're delighted to report good customer growth as more consumers turn to us for renewable electricity. To meet this increasing demand, we continue to invest in our generation capacity and have brought four new solar farms on stream in the first half, delivering 23MW.
"We look forward to making further progress in the remainder of the year and, with a renewed strategy for growth in place, we have every confidence that
"The outlook for both the supply and generation businesses remains in line with expectations. However, we anticipate that the costs of our development business are unlikely now to be covered by a site sale, and that the costs of the development business are likely to continue to be incurred at same rate as those incurred in the first half of the year. In addition, we expect to make additional investment in the second half of the year in the business to continue building our capability to support future growth.
"Our recent success in winning the Big Deal competitive switch initiative is very positive news and will boost customer numbers. This is a further demonstration of
Juliet Davenport OBE, Chief Executive
KEY HIGHLIGHTS
Financial summary
|
H1 2015 |
H1 2014 |
Change |
Revenue |
|
|
+47% |
Gross profit |
|
|
+38% |
EBITDA |
|
|
+157% |
Net financing costs |
|
|
+325% |
Profit before tax |
|
|
+67% |
Basic earnings per share (p.) |
2.6p |
1.9p |
+37% |
Adjusted earnings per share |
2.4p |
1.7p |
+41% |
Interim dividend per share (p.) |
1p |
1p |
0% |
|
|
|
|
· Electricity customer numbers increased by 20% to around 55,000 (H1 2014: 46,000)
· Gas customer numbers increased by 40% to 28,000 (H1 2014: 20,000)
· Feed-in Tariff (FIT) administration customer numbers increased by 42% to 93,500 (H1 2014: 66,000)
· Completion of four solar farms - Rook Wood and Lower End (
· Two additional 5MW sites (Oaklands,
· Delabole and Hampole wind farms continue to perform well, with output during the period higher than anticipated (installed capacity 17.5MW)
· Combined wind and solar installed capacity at
· As part of its growth strategy
For further information, please contact:
|
|
Notes to editors
-
- 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 four years, and topping two consecutive MoneySavingExpert consumer polls.
- It now has more than 55,000 renewable electricity customers and 28,000 gas customers. It works with a community of 93,500 small and medium scale renewable electricity generators. (All figures as at 30 June 2015.)
-
- The Company has recently won the following: Business Green Awards - Company of the Year 2015; 2015 British Renewable Energy Association Leadership Award; and, for the second year running,
Chief Executive's Review
The Company continued to perform in line with expectations in the first half of 2015, delivering customer growth across all market segments, and further expanding its portfolio of owned generation sites.
As of
The Company also saw a 42% rise in Feed-in Tariff (FIT) administration customer numbers, to 93,500 (H1 2014: 66,000).
This represents combined customer growth of 34%, a strong achievement given the continued competitive nature of the energy supply market and the pressure on supply margins.
This growth is supported by good customer service, and the Company's efforts in this area have been recognised, not only in consistently good ratings from the consumer organisation Which? but also in recent polls by
At the same time,
A number of these R&D activities are helping support the move towards more localised distribution. Current initiatives include working with partners on investigating the potential for battery storage and technology, as well as peer-to-peer energy generation.
The Company has also accelerated its investment in systems, processes and people to support the growth momentum of the business.
The political and regulatory environment has continued to be challenging, with changes to both onshore wind and solar subsidy regimes and an overall lack of clarity on energy policy. This has necessitated a constant review of the Company's longer-term plans, particularly in relation to the timing of its wind and solar asset development pipeline and its appetite for selling sites.
The changes made to the Renewables Obligation Certificate (ROC) regime and the lack of direction on the long term support mechanism developed under the Electricity Market Review (EMR) Contracts for Difference is unhelpful, and may damage the
There has been considerable change in the market that is driving
Within domestic supply, the focus will be on creating a platform for growth and driving down the Company's cost to serve. This will be achieved through increased use of digital technology and process efficiencies. The Company will also be testing the potential of scalable customer acquisition channels such as regional radio with a view to a full-scale implementation in 2017.
The pursuit of further efficiencies within the Company's Feed-in-Tariff business will continue.
As part of its growth strategy,
Financial results
Consolidated revenue continued its strong growth in H1 2015, increasing 47% to
Consolidated gross profit increased by 38% to
Consolidated gross margin reduced slightly to 31% (H1 2014: 33%). The margin on electricity sales declined 3.5% due to more competitive pricing applied to both business and domestic sales which has underpinned growth in customer numbers.
Gas margin remained static despite declining wholesale prices. This was due to excess gas being purchased compared to volumes supplied to customers. The gas purchase system is being addressed by the company and it believes this should be a non-recurring item in 2015.
Administration expenses increased 18% to
Net finance costs have increased to
Profit before tax increased 67% to
The Board is therefore pleased to announce an interim dividend of 1p per ordinary share for the period to
The Directors have once again decided to offer shareholders the opportunity to elect to receive dividends in the form of new shares in the Company as an alternative to a cash dividend payment.
Total assets have increased by 47% to
Total borrowings increased 79% to
Consolidated cash flow for the period was
Generation and development
No significant site sales were made in the first six months.
Further investment was made in
Two additional 5MW sites - Oaklands in
The combined output from
Although the recent changes in the regulatory environment have increased the challenges associated with the Company's strategy,
The Company remains committed to finding ways for local communities to participate in and benefit from its development activities.
Ethical and social mission
In the first half of 2015, the Company won a number of awards recognising its achievements. These included the
As a founder member,
Environmental responsibility
The Company will provide further details on this area and more technical information on its operational assets in its full-year report.
Outlook
In addition, the Company expects to make a further investment in the business (approximately
The outlook for both the supply and generation businesses remains in line with expectations.
The Company expects the marketplace to remain competitive and for supply margins to experience further pressure as a result.
It is anticipated that
Generation performance in H2 is likely to be lower than that in H1, a reflection of an assumption of normal weather conditions, the removal of LECs, which took effect from
As the Company's H1 results demonstrate,
This increasing demand, combined with the organisation's expanding generation capacity and position as a 100% renewable electricity supplier and generator, gives the Company confidence in its ability to deliver further growth in the years to come.
To achieve this,
The Company will also continue to invest in its generation portfolio to secure a supply of renewable energy to its growing customer base.
As part of this work, and in partnership with Open Utility, it expects to launch a trial of Piclo - the
Management team
The Executive team has been further strengthened and the Company is delighted to formally welcome
Summary
I am confident that the Company has the right strategy in place and that it is well-placed to continue to deliver against its plans for growth.
I firmly believe that
Consolidated Statement of Comprehensive Income (Un-audited)
For the 6 months ended
|
Notes |
Un-audited 6 months to |
Un-audited 6 months to |
Audited 12 months to |
|
|
|
|
|
REVENUE |
|
32,590 |
22,228 |
57,618 |
Cost of Sales |
|
(22,428) |
(14,873) |
(38,782) |
GROSS PROFIT |
|
10,162 |
7,355 |
18,836 |
Administrative Expenses |
|
(7,903) |
(6,659) |
(15,045) |
|
|
|
|
|
OPERATING PROFIT |
|
2,259 |
696 |
3,791 |
Finance Income |
|
17 |
10 |
87 |
Finance Costs - including exceptional item |
|
(1,760) |
(387) |
(2,590) |
|
|
|
|
|
PROFIT BEFORE TAX AND EXCEPTIONAL FINANCE COST |
|
516 |
319 |
2,169 |
Exceptional Finance Cost |
|
- |
- |
(881) |
|
|
|
|
|
PROFIT BEFORE TAX |
|
516 |
319 |
1,288 |
|
|
|
|
|
Taxation |
|
(146) |
(53) |
520 |
PROFIT FOR THE PERIOD
|
|
370 |
266 |
1,808 |
|
|
|
|
|
OTHER COMPREHENSIVE INCOME: |
|
|
|
|
Items that may subsequently be reclassified to profit or loss |
|
|
|
|
Loss on cash flow hedge |
|
- |
(207) |
(328) |
Other comprehensive income for the period, net of tax |
|
- |
(207) |
(328) |
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY |
|
370 |
59 |
1,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from profit for period - Basic |
6
|
2.6p |
1.9p |
12.6p |
- Diluted |
6 |
2.4p |
1.7p |
11.9p |
Consolidated Statement of Financial Position (Un-audited)
As at
|
Un-audited |
Un-audited |
Audited |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
56,181 |
30,655 |
44,729 |
Intangible assets |
3,323 |
3,519 |
3,530 |
Derivative financial instruments |
- |
121 |
- |
Investments |
500 |
538 |
500 |
Total non-current assets |
60,004 |
34,833 |
48,759 |
|
|
|
|
Current assets |
|
|
|
Inventories |
9,169 |
11,953 |
6,466 |
Trade and other receivables |
9,487 |
8,063 |
10,281 |
Current tax receivable |
- |
- |
109 |
Cash and cash equivalents |
9,533 |
5,025 |
13,703 |
Total current assets |
28,189 |
25,041 |
30,559 |
TOTAL ASSETS |
88,193 |
59,874 |
79,318 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
Capital and reserves |
|
|
|
Called up share capital |
748 |
733 |
733 |
Share premium account |
9,777 |
9,077 |
9,077 |
EBT shares |
(1,074) |
(230) |
(127) |
Retained earnings |
8,254 |
6,620 |
8,260 |
Total equity attributable to members of the parent company |
17,705 |
16,200 |
17,943 |
|
|
|
|
Non-current liabilities |
|
|
|
Deferred taxation |
119 |
791 |
15 |
Borrowings |
53,344 |
32,697 |
39,676 |
Total non-current liabilities |
53,463 |
33,488 |
39,691 |
|
|
|
|
Current liabilities |
|
|
|
Borrowings |
6,365 |
743 |
6,608 |
Trade and other payables |
10,627 |
8,906 |
15,076 |
Current tax payable |
33 |
537 |
- |
Total current liabilities |
17,025 |
10,186 |
21,684 |
Total liabilities |
70,488 |
43,674 |
61,375 |
TOTAL EQUITY AND LIABILITIES |
88,193 |
59,874 |
79,318 |
Consolidated Statement of Changes in Equity (Un-audited)
For the 6 months ended
|
|
Share Premium |
Other Reserves |
Retained Earnings |
Total |
|
|
|
|
|
|
At |
733 |
9,077 |
(236) |
6,890 |
16,464 |
Profit for the period |
- |
-
|
- |
266 |
266 |
Other comprehensive income for the period |
- |
-
|
- |
(207) |
(207) |
Total comprehensive income for the period |
- |
-
|
- |
59 |
59 |
Sale of shares by EBT |
- |
-
|
6 |
(1) |
5 |
Dividend paid |
- |
-
|
- |
(328) |
(328) |
Total contributions by and distributions to owners of the parent, recognised directly in equity |
- |
- |
6 |
(329) |
(323) |
At |
733 |
9,077 |
(230) |
6,620 |
16,200 |
At |
733 |
9,077 |
(230) |
6,620 |
16,200 |
Profit for the period |
- |
- |
- |
1,541 |
1,541 |
Other comprehensive income for the period |
- |
- |
- |
(121) |
(121) |
Total comprehensive income for the period |
- |
- |
- |
1,420 |
1,420 |
Share based payments |
- |
- |
- |
30 |
30 |
Tax credit relating to share option scheme |
- |
- |
- |
311 |
311 |
Sale of shares by EBT |
- |
- |
103 |
22 |
125 |
Dividend paid |
- |
- |
- |
(143) |
(143) |
Total contributions by and distributions to owners of the parent, recognised directly in equity |
- |
- |
103 |
220 |
323 |
At |
733 |
9,077 |
(127) |
8,260 |
17,943 |
At |
733 |
9,077 |
(127) |
8,260 |
17,943 |
Profit for the period |
- |
- |
- |
370 |
370 |
Other comprehensive income for the period |
- |
- |
- |
- |
- |
Total comprehensive income for the period |
- |
- |
- |
370 |
370 |
Issue of new shares |
15 |
700 |
- |
- |
715 |
Tax credit relating to share option scheme |
- |
- |
- |
(39) |
(39) |
Sale of shares by EBT |
- |
- |
203 |
(4) |
199 |
Purchase of shares by EBT |
- |
- |
(1,150) |
- |
(1,150) |
Dividend paid |
- |
- |
- |
(333) |
(333) |
Total contributions by and distributions to owners of the parent, recognised directly in equity |
15 |
700 |
(947) |
(376) |
(608) |
At |
748 |
9,777 |
(1,074) |
8,254 |
17,705 |
Consolidated Statement of Cash Flows (Un-audited)
For the 6 months ended
|
Notes |
Un-audited |
Un-audited |
Audited |
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Cash generated from operations |
|
(3,358) |
(8,469) |
3,697 |
Finance income |
|
17 |
10 |
87 |
Finance cost |
|
(770) |
(439) |
(2,644) |
Income tax repaid/(paid) |
|
62 |
34 |
(500) |
Net cash flows from operating activities |
7 |
(4,049) |
(8,864) |
640 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Purchase of property, plant and equipment |
|
(12,470) |
(11,016) |
(18,316) |
Purchase of intangible fixed assets |
|
(84) |
(403) |
(619) |
Acquisition of unquoted investment |
|
- |
(538) |
(500) |
Net cash flows used in investing activities |
|
(12,554) |
(11,957) |
(19,435) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Payments of dividends |
|
(316) |
(328) |
(472) |
Proceeds from borrowings |
|
21,861 |
8,496 |
25,983 |
Repayment of borrowings |
|
(8,858) |
(219) |
(11,035) |
Capital repayments of finance leases |
|
- |
(83) |
(83) |
Purchase of own shares |
|
(453) |
- |
- |
Sale of own shares |
|
199 |
5 |
130 |
Net cash flows from financing activities |
|
12,433 |
7,871 |
14,523 |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(4,170) |
(12,950) |
(4,272) |
Cash and cash equivalents at beginning of period |
|
13,703 |
17,975 |
17,975 |
Cash and cash equivalents at end of period |
|
9,533 |
5,025 |
13,703 |
Notes to the Interim Accounts
For the 6 months ended
1. General information and basis of preparation
The Interim Financial Statements were prepared by the Directors and approved for issue on
As permitted these Interim Financial Statements have been prepared in accordance with UK AIM rules and the IAS 34, 'Interim financial reporting' as adopted by the
Certain statements within this report are forward looking. The expectations reflected in these statements are considered reasonable. However, no assurance can be given that they are correct. As these statements involve risks and uncertainties the actual results may differ materially from those expressed or implied by these statements.
The Interim Financial Statements have not been audited.
2. Going-concern basis
The Group meets its day to day working capital requirements through its cash resources and bank facilities. The Directors have reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its condensed Interim Financial Statements.
3. Estimates
The preparation of Interim Financial Statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this set of condensed Interim Financial Statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Annual Financial Statements for the year ended
4. Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk, currency risk, credit risk and liquidity risk. The condensed Interim Financial Statements do not include all financial risk management information and disclosures required in the Annual Financial Statements. They should be read in conjunction with the Annual Financial Statements as at
5. Segmental analysis
H1 2015 |
Electricity Supply
£000s |
£000s |
Gas Supply
£000s |
Total Supply Companies
£000s |
Electricity Generation
£000s |
£000s |
Holding Company/ Consolidated Adjustments
£000s |
Total
£000s |
|
|
|
|
|
|
|
|
|
Revenue |
19,783 |
1,748 |
9,029 |
30,560 |
3,832 |
200 |
(2,002) |
32,590 |
Cost of sales |
(14,281) |
(1,313) |
(7,054) |
(22,647) |
(1,453) |
(329) |
2,002 |
(22,428) |
Gross profit/(loss) |
5,503 |
435 |
1,975 |
7,913 |
2,379 |
(129) |
- |
10,162 |
Gross margin |
28% |
25% |
22% |
26% |
62% |
(65%) |
0% |
31% |
Admin costs |
|
|
|
(6,600) |
(173) |
(570) |
(559) |
(7,903) |
Operating profit/(loss) |
|
|
|
1,313 |
2,206 |
(700) |
(559) |
2,259 |
Net finance costs |
|
|
|
34 |
(1,717) |
(148) |
88 |
(1,743) |
Profit/(loss) before tax |
|
|
|
1,347 |
489 |
(848) |
(471) |
516 |
Taxation |
|
|
|
(74) |
(32) |
(10) |
(30) |
(146) |
Net profit/(loss) for the period |
|
|
|
1,272 |
457 |
(858) |
(501) |
370 |
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
(425) |
(888) |
(2) |
(1) |
(1,316) |
EBITDA |
|
|
|
1,738 |
3,094 |
(699) |
(559) |
3,575 |
Holding Company/Consolidation Adjustments to revenue and cost of sales of
H1 2014 |
Electricity Supply
£000s |
£000s |
Gas Supply
£000s |
Total Supply Companies
£000s |
Electricity Generation
£000s |
£000s |
Holding Company/ Consolidated Adjustments
£000s |
Total
£000s |
|
|
|
|
|
|
|
|
|
Revenue |
14,377 |
1,183 |
5,739 |
21,299 |
1,560 |
212 |
(843) |
22,228 |
Cost of sales |
(9,872) |
(611) |
(4,443) |
(14,926) |
(686) |
(103) |
843 |
(14,873) |
Gross profit |
4,505 |
572 |
1,296 |
6,373 |
874 |
109 |
- |
7,355 |
Gross margin |
31% |
48% |
23% |
30% |
56% |
51% |
0% |
33% |
Admin costs |
|
|
|
(5,551) |
(78) |
(468) |
(562) |
(6,659) |
Operating profit/(loss) |
|
|
|
822 |
796 |
(358) |
(562) |
696 |
Net finance costs |
|
|
|
(54) |
(404) |
(138) |
218 |
(377) |
Profit/(loss) before tax |
|
|
|
768 |
392 |
(496) |
(344) |
319 |
Taxation |
|
|
|
(79) |
(59) |
84 |
- |
(53) |
Net profit/(loss) for the period |
|
|
|
689 |
333 |
(412) |
(344) |
266 |
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
(375) |
(355) |
(16) |
(1) |
(747) |
EBITDA |
|
|
|
1,197 |
1,151 |
(342) |
(561) |
1,444 |
6. Earnings per share
The calculation of basic earnings per share at
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary 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. When the vesting of these awards is contingent on satisfying a service or performance condition, the number of the 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 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. The average market price of the Company's ordinary shares over the six month period to
7. Net cash flows from operating activities
The operating cash outflow for the six months to
8. Related party transactions
In 2012, the Group entered into an agreement in connection with generation development activities with
As at
The agreement was terminated with effect from
9. Subsequent events
A further debt drawdown of
Planning permission on Mapperton was granted in
This information is provided by RNS