Chairman’s Statement

For the year ended 31 December 2012

I am delighted to have joined Good Energy at this exciting time in its development and look forward to helping the Company to continue to fulfil its potential. I am pleased to report that 2012 was another encouraging and successful year for Good Energy. Our business performance was in line with expectations and the Company delivered growth across the whole business generating strong profit growth. Our cash flow remains healthy and as a result of the strong performance and prospects the Board have recommended for approval, by shareholders at the AGM, a final dividend for the year ended 31st December 2012 of 2p per share, giving a full year dividend of 3p (up 9% on 2011).

Renewable energy remains central to the Government’s plans for the UK energy market, with wind energy alone now regularly providing over 5 per cent of UK electricity demand. Whilst media and political commentary has increased, fundamental opportunities remain. Key policy decisions on financial support levels for renewable energy both now and in the future remain broadly favourable, and the UK Government retains a strong track record on maintaining support levels for existing sites. A decarbonisation target for the power sector has widespread industry and business support, and its adoption would be a welcome addition to Government policy. At a time when ongoing concern about rising fossil fuel prices and the security of energy supply reflect the need for the UK to develop greater energy independence, it has never been more relevant to demonstrate how to achieve a more secure and sustainable energy future thanit is today.

Customer confidence and trust in the large established energy providers continues to deteriorate. This provides an opportunity for customer centric, values-based challenger companies to gain market share and increase their profile. Good Energy is leading the way in this, through its strong values and ethics, and by its proven service proposition. We have topped the Which? customer satisfaction survey for electricity suppliers for three out of the last four years (2010, 2012 & 2013) and were the only supplier to be awarded the top five star rating for the energy efficiency advice we provide to our customers.

During the course of the year we saw a strengthening of the business foundation of the Company. Good Energy has invested in building the Company’s infrastructure, capability and balance sheet to be the foundation for future profitable growth. Our AIM listing in July 2012 raised £4m and has provided improved liquidity for our shareholders, opened the Company to a larger investor market and helped provide additional working capital for the Group. 

The Group recognises the importance of good corporate governance in line with our listing on AIM, and we are adopting best practice where appropriate. We have established governance as a platform for a bigger business through adding two further committees which overview the business of Good Energy; the Audit Committee and the Remuneration Committee. 

We have also invested in the Board, adding a wealth of experience that will be valuable for the development of the company. I would like to thank Rick Squires for his service as Chairman and am delighted that he continues to be a member of the Board as a Non-Executive Director. I am pleased to welcome Francesca Ecsery who was appointed Non-Executive Director in November. Francesca brings extensive expertise in marketing and over 22 years of experience in senior director roles. 

On behalf of the Board I would like to acknowledge the contribution of Juliet Davenport and her team, as well as all our Good Energy customers, generators and shareholders. We thank you for your ongoing support and assure you that your award-winning company will continue to be a catalyst for change in the UK energy market by empowering individuals and businesses to switch their energy supply to renewable electricity and also to generate their own renewable power.

Looking ahead, Good Energy has a number of key strengths which will allow us to perform well and capitalise on the challenges that 2013 will bring. There are opportunities for further investment in generation and increasing customer numbers, building on the momentum achieved this year. Investment in core infrastructure capability and enhancing the team will further strengthen the Company and provide a solid platform for further progress and innovation. Good Energy is well placed to continue to grow profitably and deliver renewable energy to the UK energy market.

John Maltby
Chairman
8 April 2013