eEnergy Group PLC has announced a significant agreement with NatWest to secure a £40 million project funding facility aimed at financing energy efficiency and onsite generation technologies for the Group's public sector customers. The facility, available for 12 years with investment planned over the first 24 months, is designed to provide a unique, compliant off-balance sheet solution for public sector customers and strengthen the company's competitive position in tendering for large multi-site contracts.
The company's trading update for the 6-month period ended 31 December 2023 indicates that the balance sheet constraints have been alleviated as a result of the sale of the Energy Management division. The Board expects to report Group Revenues for the 18-month period ended 31 December 2023 of £46 million with Adjusted EBITDA of £5.1 million - £5.3 million, subject to completion of the audit process. The completion of the disposal of the Energy Management division has enabled the Group to repay all borrowings, substantially strengthen its balance sheet, and refocus resources on delivering growth opportunities in the Energy Services division.
The CEO, Harvey Sinclair, expressed his excitement about the new Facility, stating, "This Facility is the result of significant investment in honing our proposition to public sector customers and gives eEnergy a clear competitive advantage in the market." He also highlighted the innovative structure of the Facility, which will lower the company's cost of capital and provide longer-term economic upside on each project. NatWest's Head of Specialist Asset Finance, Jacob Lloyd, expressed the bank's delight in supporting eEnergy and looks forward to working with the company as they execute their contract pipeline and assist the public sector with deploying energy efficiency and decarbonization assets.
The company will be hosting an online presentation for investors on the 7th March 2024 to provide an update on the Group following the sale of the Energy Management division. The presentations will be held via the Investor Meet Company platform at 11:00 and the Equity Development platform at 15:00, and are open to all existing and potential shareholders.
For further information, investors can visit the company's website or contact the provided representatives.