Good Energy reports strong annual results

Good Energy

Good Energy, 100% renewable electricity supplier and localised self-generation power service provider, which has its headquarters in Chippenham, has released its un-audited preliminary results for  2018.

And in a very tough energy market, where a number of other suppliers have failed, Good Energy has reported an increase in revenue of nearly 12 per cent.

The company reported revenues of £116.9million up 11.9 per cent driven, it said, by business supply volume growth, a price rise implemented earlier than in prior years and extreme weather conditions at the start of the year

Gross profit of £32.9million, an increase of 12 per cent and profit before tax of £1.7million, an increase of 132.6 per cent.

Strong cashflow generation leading to a cash balance of £15.7million at year end, funding investment across the business and repayment of £9.4m debt in the period with operational and billing issues addressed

However, administration costs rose over 12 per cent to £26.8 million. 

Juliet Davenport, Founder and Chief Executive Officer of Good Energy, said: “A period of rapid change is underway in the UK energy market. The trends in both the competitive landscape and the continuing renewable energy revolution leave us extremely well-placed to succeed. In a year where more than a dozen UK energy suppliers went bankrupt, Good Energy has continued to deliver robust growth and cash generation – putting the business on a firm footing for the future.

“The year ahead will be an important one for us, as we roll out our SMART meter programme. Technology is changing everyone’s relationship with energy. People want to know how much they consume in their home and their business – how much they consume, and how much their home-generation equipment shares with the grid. Your home can become a miniature power station, with the right equipment in place.

“The growth of electric vehicles is bringing smart-grid technology to the fore. Our recent investment in Zap-Map accelerates our presence in that market. Good Energy will continue to focus on profitable, sustainable growth – led by supplying power to businesses, and supported by digital investments.”

Good Energy’s Chairman, John Maltby, added: “ Increased competition, wholesale market volatility and increasing regulation were particularly prevalent in the domestic supply market. This was highlighted by twelve companies going out of business since the start of 2018 as a direct result of these pressures.  The strength of our business model ensured that, despite these challenges, we ended 2018 as a stronger business with enhanced financial performance, improved customer service and exciting prospects for the future.”

He added: “We remain committed to our domestic supply business, but we were clear that avoiding the price war in this market was imperative. We gave greater focus to growth in the business supply market, which performed strongly. Whilst both the domestic and business markets face structural challenges, there exists a large opportunity due to the growing societal focus on sustainable and green products. We believe that there are a rising number of ‘Eco Worriers’ who share our vision for the future.  We are well placed to meet their needs.”