Revenues rise at Chippenham based Good Energy Group

Good Energy

Following the sale of its generation assets in January for more than £21 million, Good Energy has reported a revenue increased 11.8 per cent to £146.0m driven by significant price rises throughout the year in response to rising wholesale costs.

Nigel Pocklington, Chief Executive Officer of Good Energy, said: “In December, I called the high cost of energy a national crisis. This has been exacerbated by Russia’s aggression against Ukraine. Whilst renewables should play a vital role in our long-term energy strategy, only the Government can bring short term respite. The response to date has been inadequate, and further support will undoubtedly be needed.”

The company said that the sale proceeds provide a balance of growth capital and buffer to volatile wholesale energy market. Good Energy navigated 2021 successfully where 60 per cent of suppliers failed and says it is now “substantially debt free with a strong cash position”.

But gross profit decreased by 8.6 per cent to £27.0m with a gross profit margin of 18.5% (FY 2020: 22.6%). This was driven by an unprecedented energy crisis and quadrupling of the wholesale market price. Cash generated from operations reduced 66 per cent to £3.9m.

As a result, underlying profit before tax was £2.6m (FY 2020: profit £0.5m). Reported profit before tax of £1.8m included non-underlying income of £0.8m associated with generation debt restructuring.

Reported loss for the period of £4.1 million includes a £5.7 million reduction in relation to discontinued activities and the sale of the generation assets.

Nigel Pocklington Good EnergyNigel Pocklington, Chief Executive Officer of Good Energy, said: “In 2021, 28 energy supply companies failed, hitting customers’ bills and their trust in the industry. This was the result of both poor business practices and the UK’s continued reliance on volatile global fossil fuel markets. There has never been a greater need for clean energy products from a reliable, real renewable, trusted company.

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