The Chippenham-based sustainable energy supplier, Good Energy Group PLC,
has reported an underlying strong business performance for the six months ended 30 June.
Revenue increased by more than six per cent to £67.5 million, driven by growth in business supply and feed in tariff (FIT) customers, more than offsetting a decline in domestic supply customers, the company said.
However, gross profit of £14.8 million decreased 13.3 per cent with a gross profit margin of 22 per cent (H1 2019: 26.9 per cent ). The company said that this was in line with the strategic shift toward longer term, lower gross margin business supply, and selling back excess contracted power and higher network reconciliation costs.
Within underlying loss before tax of £0.5 million (H1 2019 £2.5 million profit), are £3.1 million of increased non-cash costs, driven by an incremental £1.9m expected credit loss (ECL) and £1.2 million resulting from the positive revaluation of the generation portfolio and the write down in value of the small Creathorne solar site. This is Good Energy’s second operational solar farm and is located near Poundstock in North Cornwall. It started generating electricity in August 2014. This 1.8MW solar farm near Widemouth Bay generates enough solar energy to power approximately 500 average homes.
Non underlying costs of £0.6 million associated with restructuring costs, delivered a loss before tax from continuing operations of £1.1m. Earlier this year, the energy supplier announced it had abandoned its plans to build a new corporate headquarters in Chippenham. The firm said changes to the financial landscape caused by Covid-19 and the rise in home-working contributed to the decision. Instead, the firm will expand into another floor at Wiltshire Council’s Monkton Park office. “Future Group talent strategy will be aligned to a more remote, flexible business model,” the company said.
Juliet Davenport, Founder and Chief Executive Officer of Good Energy, said: “In the context of the COVID 19 pandemic Good Energy has delivered a strong performance in the first half of the year, with total customer numbers up, driven by continued business and Feed in Tariff growth.
“Amid economic uncertainty, Good Energy is financially and operationally resilient with a strong cash position.
“Despite the significant challenges over the past six months, we have made good progress with our strategy and continued to invest across the business – in the development of energy services propositions, innovation projects, our people, processes and technology.
“Therefore, Good Energy is well positioned to play a key role in the green recovery and help businesses and customers to “build back better”. We look forward to continuing our strategy to provide people and organisations with the tools to have a zero-carbon footprint across electricity, transport and heat.”