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eEnergy Trading Update April 2020

Posted on: April 6th, 2020 by SianAtom42 No Comments

In this video, CEO Harvey Sinclair provides a trading update for eEnergy Group PLC, discussing the rate of new contracts wins, and how the business is handling the impact of Covid-19.  

eEnergy eyes win-win in sustainable energy space

Posted on: February 26th, 2020 by SianAtom42 No Comments

Average contracts currently are sized around £130,000 but this will get larger as it moves up the value chain.

Energy-efficient specialist eEnergy Group PLC (LON:EAAS) made a steady start as trading got underway in AIM’s first float of the new year.

The company joined the junior market through a reverse takeover of Alexander Mining and a £2mln placing at 7.5p with the shares changing hands at 8p early on, valuing the business at £10.5mln.

Currently focused on LED lighting, eEnergy is promoting the message that reducing energy use and carbon emissions can be profitable.

Harvey Sinclair, chief executive, says that a lot of organisations are put off by the high capital cost that comes with energy-efficient projects.

“We take that cost away for schools and businesses and allow them to take advantage for a fixed monthly fee”

Schools, especially, are a market eEnergy is currently targeting.

Lighting can account for up to 50% of a school’s energy budget.

An LED upgrade can cut that cost by up to 75% with a 30% reduction in energy use and carbon emissions or about ten trees per year per classroom, says Sinclair.

Energy cost savings are greater than the monthly service fee while the quality of lighting is improved and carbon emissions reduced.

Subsidiary eLight does all the procurement, funding, installation and maintenance and in cash terms the savings can generate up to £250,000 over ten years.

It is numbers like these that underline the huge opportunity in the sustainable energy space, says Sinclair.

He sees the sector following the trend of mobile technology and cars, where monthly subscriptions have become the norm with no capital requirements for the customer.

So far, eEnergy has completed around 800 LED lighting projects in the UK and Ireland, but there are 25,000 schools in the UK alone of which 80% have yet to switch to LED.

eEnergy’s ambitions stretch further than just lighting, however.

Reasons for the listing are to fund a new app to help it push in the small business space and also to give it the currency to start a buy and build consolidation strategy among sustainable energy businesses.

That would take it into areas such as energy management, where it can both acquire customers and apply the experience it has built up during through its LED projects to offer a range of greener alternatives for their energy requirements.

Average contracts currently are sized around £130,000 but this will get larger as it moves up the value chain.

For example, Sinclair is hopeful of retail contracts that will see between 600-700 stores converted.

Revenues in the year to June were £4.5mln, but house broker Turner Pope forecasts this doubling to £8.4mln in the current year and rising again to £12.6mln in 2021.

That is also the year the broker sees eEnergy moving into profit after a loss of £1.6mln last year.

How fast the buy and build strategy progresses will have a bearing on these numbers, but there is no doubt the demand is there.

Estimates across the EU are for the energy efficiency market overall to be worth €50bn by 2025 and with pressure mounting on governments everywhere to take more radical action on climate and environmental issues it might be a lot higher.

Original Article available at: https://www.proactiveinvestors.co.uk/companies/news/910287/eenergy-claims-win-win-in-sustainable-energy-space-910287.html

eEnergy lights up AIM

Posted on: February 26th, 2020 by SianAtom42 No Comments

Take a look today at eLight, a leading ‘energy efficiency as a service’ business in the UK and Ireland which is set to join AIM this morning and become the eEnergy Group (LON:EAAS).
The company has announced the reverse takeover of Alexander Mining.
Experienced technology entrepreneur and eEnergy CEO Harvey Sinclair tells Proactive how he and his management team are set to transform the energy efficiency market with an eye-catching business model that tempts customers with new money-saving lighting systems for a fixed monthly service fee.
eEnergy promises schools and commercial/industrial clients lighting overhauls, allowing them to ‘unlock cash flow from day one’ of the change by switching to LED lighting.
eEnergy has so far raised £2million through investors with plans to grow the business and eventually plans to offer a full suite of energy-related services to its customers.

Original article available at: https://www.proactiveinvestors.co.uk/companies/news/910245/eenergy-lights-up-aim-910245.html

eEnergy CEO on the energy sweetspot

Posted on: February 26th, 2020 by SianAtom42 No Comments

Entrepreneur Harvey Sinclair believes there is a huge market for the Energy-as-a-Service model (EaaS) which newly listed eEnergy is looking to provide

by Lawrie Holmes – February 14, 2020

The decision to list energy efficiency specialist eEnergy last month on junior market AIM reflects the belief of the group’s chief executive Harvey Sinclair that the time is right.

The entrepreneur says a tipping point has been reached when it comes to demand for sustainable energy from both corporates and public entities alike, and specifically the Energy-as-a-Service model (EaaS) model.

This entails taking the ‘as-a-service-model’ that has been successfully applied in areas such as technology to banking, and therefore taking away the investment concerns in shifting to a more sustainable approach, something that worries many finance leaders.

“Any building owner or tenant tends to see there being a big barrier to entry in getting energy efficiency projects off the ground. What EaaS does is transfer the risk of the project away from the client, whether that’s taking away the upfront financial risk, or the perceived technology specification risk or the delivery risk. It allows an organisation to move to an energy reduction strategy without deploying capital,” he says.

“Businesses are very used to buying technology or services via a subscription model without paying upfront for the technology itself. In the same way that solar as an industry expanded as a result of the simple hire purchase agreement which provided power to the customer via a simple pay as you go model, the energy efficiency is firmly in that adoption phase, albeit at a very early stage,” he adds.

The model works through customers paying monthly from savings that are unlocked. “A surplus of cash savings is created at the end of every first month, so that for the life of the contract the contractor releases surplus cash to the organisation, in addition to giving the carbon reduction that’s set out at the beginning of the contract,” says Sinclair, who has been involved in various ventures associated with LED technology including ELight.

That business, set up in 2013, launched the model for reducing energy costs for schools and businesses that morphed into eEnergy in December, prior to flotation. Sinclair says so far nearly 1,000 projects have been completed in five years, growing at 15-20 projects a month, and he adds that the group expects to deliver £10m of sales this year.

Having raised capital through eEnergy’s listing, the company’s approach is to grow rapidly by acquiring other EaaS providers, with an ambition of securing 2,000 customers within the next three years in the core lighting-as-a-service (LaaS) market. “We want to be dominant in the LaaS space before moving into the energy management space, which includes energy consultancy, procurement and monitoring,” says Sinclair.

Good Timing

Sinclair believes the time has come for companies to instinctly push to become more sustainable. “We have to assume that legislation will get tighter, forcing companies to take energy efficiency more seriously. We think increasing regulation and increasing sustainability targets and fines will accelerate the move to energy saving solutions.

“The business model we’ve got is about six years old, but we’re early in the adoption curve and I think it’s a case of getting scale fast enough and making sure we open up channels of communication with finance directors that are not taking energy efficiency seriously enough.

“We believe energy efficiency should be profitable for businesses. This is not a case of nice to do, or something companies should be doing for sustainability goals. Energy efficiency can release profitability in companies, and as a by-product can release carbon from the environment, which is a sustainable objective most companies should have,” he says.

But Sinclair recognises that timing, especially when entering a market, is often the difference between success or failure. “Making sure you get your timing right in the market is the lesson we’ve learned. We probably entered the market in EaaSs two to three years too early, and its only really now in the last 24 months that we’ve seen the tipping point,” he says.

That tipping point Sinclair attributes to decreasing energy costs, improved technology around LED lighting and a growing sustainability-conscious environment. “There is the challenge of any new business model being at the tipping point where it becomes the norm, but I challenge any IT directors or FDs to propose that a business should invest in their own servers. In that case, what seemed like an overnight transition took a long time,” he adds.

Some finance directors are wary of an approach that may appear to be a form of leasing or are simply not ready for change, says Sinclair. He says there is often scepticism around the scale of savings to be made, if it will be cashflow positive and if it can be delivered cheaper internally.

Sinclair insists that’s not the case. “They may be locked into the high running costs of their existing lighting solution. But to change to LED lighting they either need to invest their own capital which is usually not available or usually in demand for another project, and therefore it is usually not a priority to invest in energy,” he says.

“Our point to finance directors is that as you’re already paying for this, doing nothing shouldn’t be an option. You should be morally and socially obliged to consider all forms of energy reduction strategy because that is now a mandated responsibility for business owners,” he says.

Original article available at: https://www.financialdirector.co.uk/2020/02/14/eenergy-ceo-on-the-energy-sweetspot/

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