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21 August 2008
GOOD ENERGY GROUP PLC - INTERIM RESULTS
GOOD ENERGY GROUP PLC ("GOOD ENERGY") INTERIM RESULTS The Board of Good Energy announces today Interim Results for the half year to 30 June 2008. HIGHLIGHTS - Continuing growth with profitability
- Launch of Good Energy internet shop
- Successful trials of gas product
- Difficult times for all UK energy customers
CHAIRMAN'S STATEMENT Under the Good Energy brand, the Group has continued to develop a range of products which provide households and businesses with simple, significant and immediate solutions to their impact on Climate Change. Its principal product is electricity provided from 100% renewable sources, but new product and market development is underway. Good Energy's vision is to be the UK's most trusted and respected market leader in low carbon energy products and services and a first port of call for anyone interested in moving towards a low carbon lifestyle. Operating Performance Electricity customer numbers increased by 7 % from December 2007 to 25,370 at 30 June 2008, and MWh sales of electricity were 12% up on the first half of 2007. Customer service performance continued to improve following the addition of staff towards the end of 2007. The Good Energy brand continues to win accolades, winning in June the British Renewable Energy Company Award, the Micropower award for innovation, and the Sunday Times Best Green Companies Award for having the most environmentally aware employees. Financial Results At £7.5m, turnover was up by 18% compared with the first half of 2007. With improved electricity margins and with strong results from its generation subsidiary, the Group has produced £640,549 of additional gross profit. This has largely been absorbed by the cost of extra staff joining the Company at the end of 2007 to support increasing customer numbers, the strengthening of our Trading Desk in order to improve risk management, and the development costs of programmes for our new products. These programmes include the Good Energy Shop (http://www.goodenergyshop.co.uk/) which is set to open on 1 September, and the establishment of a gas product which will combine with our 100% renewable electricity to provide a dual fuel offer. The gas product will have a restricted launch in September, and a wider market launch will follow once we have secured funding for this new business. Group profit before tax was a modest £242,317, a slight improvement over the first six months of 2007 thanks to interest income on the funds raised in the 2007 share offer. This was equivalent to 2.3p earnings per share (basic) compared with 3.4p for 2007 which had a more favourable tax charge. Forward looking statement These are difficult times for all UK electricity customers, with wholesale energy costs threatening to depress the ongoing profitability of retailers unless they take commensurate pricing action. We are writing to all Good Energy customers to explain what is happening to our energy costs and why we need to take pricing action. As the general downturn in the economic situation impacts inevitably on household and business budgets, we are likely to need to increase our marketing spend in order to maintain our growth in electricity customers, although our entry into a wider energy market will help profitability. The Board remains confident about the enduring prospects for Good Energy; it has a winning brand, committed staff and a strong management team, is properly funded, and should continue to grow profitably for the foreseeable future. John Sellers Chairman FINANCIAL STATEMENTS In line with latest best practice, the financial statements have been prepared using International Financial Reporting Standards (IFRS) rather than United Kingdom Generally Accepted Accounting Principles (UKGAAP). Prior year figures have been re-stated accordingly. Consolidated Income Statement | | | | | | | | | For the 6 months ended 30 June 2008 | | | | | | | | | | | | | | | 6 months | 6 months | 12 months | | | | | | | | | | to 30/06/08 | to 30/06/07 | to 31/12/07 | | | | | | | | | | £ | £ | £ | | | | Revenue | | | | | | 7,488,828 | 6,329,369 | 12,875,466 | | | | | | | | | | | | | | | | Cost of sales | | | | | (5,447,394) | (4,928,484) | (9,441,825) | | | | | | | | | | | | | | | | Gross profit | | | | | 2,041,434 | 1,400,885 | 3,433,641 | | | | | | | | | | | | | | | | Administrative expenses | | (1,830,917) | (1,105,531) | (2,794,150) | | | | | | | | | | | | | | | | Profit from operations | | | | | 210,517 | 295,354 | 639,491 | | | | | | | | | | | | | | | | Finance income | | | | | 35,225 | 16,375 | 16,419 | | | | Finance costs | | | | | (3,425) | (78,777) | (110,755) | | | | Dividend income | | | | | | 0 | 114 | 114 | | | | Profit before tax | | | | | 242,317 | 233,066 | 545,269 | | | | | | | | | | | | | | | | Tax expense | | | | | 1 | (80,551) | (33,386) | (80,954) | | | | | | | | | | | | | | | | Profit for the period | | | | | 161,766 | 199,680 | 464,315 | | | | | | | | | | | | | | | | | | | | | | | | | Profit and loss reserve brought forward | | | 1,342,996 | 878,681 | 878,681 | | | | | | | | | | | | | | | | Profit attributable to equity shareholders | | | | 161,766 | 199,680 | 464,315 | | | | | | | | | | | | | | | | Profit and loss reserve c/f | | | | 1,504,762 | 1078,361 | 1,342,996 | | | | Earnings per share | | Basic | | | 2 | 2.3p | 3.4p | 7.8p | | | | | | Diluted | | 2.0p | 3.0p | 6.9p | | | | | | | | | | | | | | | | Note 1: The taxation charge for the 6 months is based on the Directors' estimate of the likely charge at the year-end. | | | | | | | | | | | | | | | | | Note 2: The weighted average number of shares in issue for the half year to 30 June 2008 was 6,901,267 | | (for the six months to 30 June 2007 5,862,267 and 5,890,278 for the full year 2007). The number of shares in issue is as prescribed in UITF 38. | | | | The financial results for the 6 months ended 30 June 2008 and the 6 months ended 30 June 2007 are un-audited and have not been reviewed by our auditors. The Group's 2007 financial statements were prepared and audited under UK GAAP, but to reflect the Group's decision to adopt IFRS on 1 January 2008, the 2007 annual results and comparatives for the six months to 30 June 2007 have for the purposes of this interim statement been restated under IFRS by the Group but have not been audited. ENDS The Directors take responsibility for this announcement Notes to Editors | | | | | | | | | | | | | | | | | | | |
Good Energy Group PLC is the holding company of Good Energy Limited and Good Energy Generation Limited. Good Energy Limited has an Electricity Supply Licence to operate in England, Wales, and Scotland and is regulated by OFGEM. It is the only UK electricity supplier exclusively to sell electricity matched 100% (over 12 month periods) by purchases from wholly renewable sources including wind, solar and hydropower. By supplying 100% renewably generated electricity, the company enables its customers to become part of the solution to Climate Change. The Company was the first UK electricity supplier to publish independent audits of its 100% renewable supply claims. Good Energy Limited also operates "Home Generation", an award-winning home renewable electricity generation scheme whereby the Company undertakes to buy the electricity output from small-scale renewable generation equipment installed on private premises.
Good Energy Generation Limited is the Group's acquisition vehicle for the purchase of renewable energy generation assets. Its policy is to own and operate such assets and to sell their output exclusively to Good Energy Limited. It owns a 4MW wind farm at Delabole in North Cornwall which supplies part of Good Energy Limited's electricity needs. It has applied to re-power this wind farm in order to increase the output by up to three times the current level. The company continues to seek to acquire new renewable energy generating assets.
The Group's core ambition is to commercialise a wider range of lower carbon energy applications for households and businesses under the Good Energy brand. The Group is based in Chippenham, Wiltshire and commenced operations in 1999. With Juliet Davenport as its Chief Executive, the Group has a staff of approximately 50 and has 1,700 shareholders, nearly all of whom are Good Energy customers. Enquiries: Good Energy Group plc +44 124 976 6094 Jon Fairchild Group Finance Director http://www.good-energy.co.uk/ Carbon International +44 20 7483 3343 David Hopkins Director PR Samantha Hill Senior PR Manager www.carboninternational.com
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