eEnergy Group (EAAS ) said it expects revenue and profits before exceptional items for FY22 to be materially ahead of FY21 after the company reported strong organic growth for this year.
eEnergy, which operates as an energy efficiency-as-a-service business in the UK and Ireland, reported revenue up 200% to £13.6m in the year to 30 June 2021 up from £4.5m in FY20.
Organic revenue growth was up by 75% in its core eLight business, which generated revenues of £7.9m. Maiden profit with adjusted EBITDA was £0.8m compared to a loss of £1.5m in FY20 and a profit before tax and exceptional items of £0.1m (FY20: loss £1.9m).
By period end, cash at bank was £3.3 million, more than double from £1.5m in FY20.
eEnergy said its decision in 2019 to focus on the opportunity in the education market has stood the business in good stead during FY21. It estimates that UK education alone represents a £1.5bn market opportunity given the low level of LED adoption in schools.
In FY21, around 85% of eEnergy’s revenue came from schools, while its position in Lighting--as--a-Service in Multi Academy Trusts and State Schools was strengthened by the acquisition and integration of Renewable Solutions Lighting (‘RSL’) back in July 2020.
Back in December 2020, eEnergy acquired Beond, a Top 20 energy management business. To date, it has traded ahead of the Board’s initial expectation at the time of acquisition.
‘The resilience of the Group’s business model has been able to ensure a robust performance for the year despite the impact of COVID-19 with new contract wins,’ eEnergy told investors.
In total, 211 eLight projects were installed throughout FY21, an increase of 69% on the 125 installed in FY20. Meanwhile, the average revenue per eLight project increased by 52%.
While the Company has seen some delays in new contracts, which has, in turn, impacted project timeframes, the Board said it is encouraged with the current and future order book.
‘The underlying foundations and structural drivers within our market remain very robust and the breadth of applications for our services to new clients as well as our ability to cross and up sell additional services to our existing client base, continues to grow,’ eEnergy concluded.
In September 2021, the Group completed its largest acquisition, UtilityTeam, raising £12m. On a pro forma basis, following the acquisition of UtilityTeam, it derives around 55% of Group revenue from its Energy Efficiency division and 45% from its Energy Management division.
The Group said its growth trajectory as well as the successful acquisitions made to date - including UtilityTeam - have created ‘attractive synergy and cross- selling opportunities.’
Whilst early in the current financial year, the Board said it expects revenue and profit before and after tax and before exceptional items for FY22 to be materially ahead of FY21, and noted that trading in the year to date remains in-line with current market expectations.
The Group highlighted that it continues to assess strategic and accretive acquisition opportunities that will enable it to accelerate the rate of growth across the business.
Going forward, as the Company starts to deliver measured savings contracts, it said it expects to see an increased share of its revenues come from contracted monthly recurring revenues which, in turn, will improve visibility of future revenues and lead to higher quality earnings.
Commenting on the results, Harvey Sinclair, CEO said: “As a result of the successful execution of our strategy, we now have the necessary expertise to help businesses to procure Zero carbon energy, measure their usage and wastage and then deliver the energy reduction measures to enable customers to realise their net zero strategies.”
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