Energy efficiency firm boosts revenue 500% in "strong" first quarter

A London energy service has reported a 500 per cent revenue increase since the beginning of July this year.

Energy-Efficiency-as-a-Service (EEaaS) firm eEnergy said that the period’s “strong” performance was supported by delayed installations caused by the pandemic.

In the period, the company completed its acquisition of Renewable Solutions Lighting (RSL), which it said has made it the “market leader” in the education sector.

Revenue for the year ending July 2020 was also up by 14 per cent to £4.5m from £3.9m, with positive operating EBITDA for each month in the fourth quarter.

Harvey Sinclair, CEO of eEnergy, commented: “The company has enjoyed a strong start since its readmission to AIM in January, notwithstanding the challenges and also opportunities presented by Covid-19.

“In addition to the UK government’s net zero target by 2050, we have seen accelerating interest in Light-as-a-Service, especially from the education sector, as schools seek to reduce costs and carbon emissions.

“Furthermore, the acquisition of RSL in July has broadened the Group’s exposure to the Academy and state school sector and made eEnergy the market leader in providing Energy Efficiency-as-a-Service to the UK education sector.”

“We are pleased to report that, throughout the lockdown, none of our contracts were cancelled, however a number of installations expected to be completed in the fourth quarter were delayed into the summer.

“As the group only recognises revenue at the point of installation, the revenue from these contracts has provided a further boost to the strong first quarter we have experienced.

“Since 1 July we have completed 64 installations, resulting in a 500 per cent uplift in revenue, 250 per cent organic, compared to the equivalent period of last year and we expect significant comparable growth to continue into the second quarter.

“Consequently the board continues to expect the group to achieve breakeven profit after tax in the six months to 31 December 2020.

“As well as making progress in growing our LaaS business, eLight, we will continue to assess strategic acquisition opportunities, including exploring new opportunities in expanding our offer in the energy management sector.”

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