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Good Energy revenue growth offset by restructuring costs
Renewable energy company Good Energy grew revenues 16.6% in its most recent trading year, improving the group's cash position despite it seeing pre-tax profits fall back by almost two-thirds.
The Wiltshire-based firm's annual revenue of £104.5m pushed gross profits ahead 8.2% to £29.3m; however, tighter margins and one-off restructuring costs led to a 63.7% widening of pre-tax losses for the group, which ended the period with a pre-tax loss of £700,000.
Good Energy bragged of a "solid and improving cash position" which increased 118.2% to £13.7m, despite previous billing issues, expected to normalise in 2018, thanks in part to its successful raising of £16.8m from the company's second corporate bond in June.
Basic earnings per share fell 37.2% to 8.1p.
Net debt expanded 1.9% to £53.1m as a result of a 13.5% increase in Good Energy's administration costs and a tightening of margins to 28.1% from the previous year's figure of 30.2%.
Good Energy's switch in focus from a B2C oriented company to a B2B-based one resulted in a strong volume growth of 46% in its business supply operations.
Juliet Davenport, Good Energy's founder and chief executive, said, "These are solid results given the tough market conditions in the retail supply market. We have also delivered good growth in the business supply market with some new key accounts."
"Looking ahead, we expect to perform in line with market expectations in 2018 and that our strategic developments will deliver growth in profitability and in value, plus deliver a green dividend yield over the longer term," she added.
As of 0920 GMT, shares had dropped 1.99% to 123.00p.