eEnergy Group PLC has released a trading update for the first half of 2024, focusing on the restructuring of its operating platform following the sale of the Energy Management Division. The company experienced a slow start to the year due to a constrained balance sheet and weak market conditions in Q1 24. However, market conditions improved during the period, and H2 24 has started with strong momentum. The company maintains its full-year revenue guidance at £25-26m.
During the period, the company reported H1 24 Core Revenue of £6.2m and a Core Adjusted EBITDA loss of £(2.1)m. Notably, eEnergy signed a £5.2 million solar contract with Spire Healthcare plc, its largest contract to date. Additionally, the company secured an up to £40m project funding facility with NatWest to finance energy efficiency and onsite generation technologies for its public sector customers. The sales pipeline also saw strong growth during the period, with a 25% increase.
The company's H2 24 revenues are underpinned by a contracted forward order book, with £12.9m expected to convert to revenue during H2 24. This comprises 75% of forecast H2 24 Solar revenues and 44% of forecast H2 24 LED revenues. The business has entered H2 24 with positive signs of market recovery, and the interim accounts are expected to reflect an exceptional balance sheet adjustment of up to £2.5m following a full review of the Group structure and balance sheet.
Harvey Sinclair, eEnergy CEO, stated, "The first half of the year has been a transformative period for the business, with the sale of the Energy Management Division leaving a company with a solid track record and opportunity for growth. The strengthened balance sheet alongside the NatWest facility removes cash constraints on the business and provides working capital to drive growth."
The company expects to report its interim results during the second half of September 2024.