CHAIRMAN'S STATEMENT For the year ended 31 December 2008. Our Annual Report and Accounts have been prepared at a time when the UK is facing its worst economic prospects for many years. Against this backdrop, it is pleasing to report that our Group is in reasonably good condition, is continuing to grow, is profitable and set to remain so. There is no change to our strategy: Good Energy’s ambition is to be the UK’s obvious and most trusted source for relevant products, services, or information, for anyone wishing to progress to a low carbon lifestyle, or for those institutions shaping our policy at national level.
A full review of operating performance for the year is set out in pages 8 to 11. The key highlights for 2008 include our entry into the Gas market with our “Renewable Heat” product, and the strong progress of our awardwinning Home Generation business. These developments are expanding the Good Energy product base, and are in markets which have very big potential in themselves, but which have been also earmarked for specific incentivisation by Government. The establishment of our Internet Shop also featured in the year.
We should not underestimate the positive consequences for us of the imminent publication by OFGEM of the criteria by which it will permit energy suppliers to claim their “green” credentials. These criteria have been formulated after considerable debate within the industry, and as one of the signatories to these guidelines, we are pleased to see that there will now be transparency as to the fuel mix, carbon abatement, and environmental credentials of each supplier of green electricity. We have seen in the past how consumers can be confused by suppliers choosing their own definition of “green”, and we welcome the introduction of these stringent standards.
In addition, the approval of the new larger Delabole Windfarm was excellent news for us; this in itself adds significant shareholder value; its funding will be an exciting challenge, will raise our profile in the financial community and could lead to valuable new partnerships.
Looking back over the 10 years since we started this business, the main disappointment is that the size of the “green” market has reached nowhere near the levels we were entitled to assume based on Government pronouncements at that time. It remains to be seen whether the latest round of bold intentions comes to fruition, and whether the recent capsize of the banking and financial services industry is likely to cause distraction and re-prioritisation. Either way, we are well positioned strategically to develop our businesses an grow profitably.
Looking to the future, the fact that we have such a strong environmental mission by no means excuses us from the obligation to deliver efficient operational performance, financial results, and fair shareholder returns over time. We are aware that our profitability needs to be higher if we are to properly remunerate shareholder investment and attract new capital to further grow our activities.
I want to acknowledge the contribution made by Juliet Davenport and her team; this is a complex business, and these individuals who have staked their careers in it represent valuable capital, and we continue to be impressed by their knowledge, enthusiasm, and positive approach. Juliet’s contribution in particular has been recognised in the award by PLUS markets as Chief Executive of the Year for 2008. Finally, I feel we continue to have the benefit of a strong and well-balanced Board, and we should be confident that it will steer us through an exciting future and the demanding challenges it presents. John Sellers Chairman 20 April 2009 |
