DJ Good Energy Group PLC Operational Update
RNS Number : 4175S
Good Energy Group PLC
21 December 2016
Good Energy Group PLC
("Good Energy" or the Company)
Good Energy Group PLC, which supplies and generates 100% renewable electricity, carbon neutral gas and feed in tariff administration services to over 239,000 UK homes and businesses, is pleased to announce the following operational update.
Sale of operational 5MW solar site in Dorset
Following a competitive tender process the Board has agreed to terms for the sale of its operational 5MW Oaklands solar farm to Eneco UK Limited ("Eneco") for GBP5.78m as well as an option to purchase power from the site. As part of the sale, Good Energy will retain asset management services for the site.
Working with the Eversheds LLP legal team contracts have been exchanged and the transaction is expected to complete on or around 3 January 2017. The total sale value will be paid in cash on completion with the net profit from the sale expected to be in the range of GBP340k to GBP390k. The profits resulting from the sale will be recognised in Good Energy's results for the year ended 31 December 2017.
The sale of Oaklands evidences further delivery of Good Energy's ongoing strategy to actively manage its generation portfolio to realise maximum value through developing renewable assets and securing access to long term power.
Funds from this sale will be used to support the construction of further solar sites before the 31 March 2017 renewable obligation certificate ("ROC") subsidy deadline.
Like all suppliers Good Energy has experienced exceptional volatility in the short term power trading market from late October to late November.
While the Company operates a prudent risk management process and hedging policy to mitigate trading risk, this volatility has led to more challenging trading over that period. Notwithstanding this, the Board still expects the Company to meet the lower end of market expectations, assuming the more favourable trading conditions experienced to date in December continue until the end of the month.
Juliet Davenport, OBE, Founder and CEO of Good Energy said:
"Good Energy developed, constructed and has been operating the Oaklands site since January 2016, showcasing the capabilities of our generation team.
The sale to Eneco gives us optionality over the power from Oaklands and continues our strategy of selling sites and reinvesting to develop renewable assets, helping the UK to become more energy self-sufficient.
This is our first project with Eneco and we look forward to working with them as we manage this great site.
While the short term trading conditions have been tough from late October through to late November we have seen a return to more normal trading conditions in December."
For enquiries: Good Energy Group PLC +44 (0) 1249 766 795 Juliet Davenport, Chief Executive Officer Denise Cockrem, Chief Financial Officer Camarco (Media) +44 (0) 203 757 4980 Geoffrey Pelham-Lane Georgia Edmonds Arden Partners plc +44 (0) 121 423 8900 Steve Douglas Patrick Caulfield Investec Bank plc +44 (0) 207 597 4000 Jeremy Ellis Sara Hale
Notes to editors
-- Good Energy is a fast growing 100% renewable electricity supply and generation company, offering award-winning customer service.
-- An AIM-listed PLC, and founder member of the Social Stock Exchange, its mission is to support change in the energy market, address climate change and boost energy security.
-- The company has consistently performed well in the annual Which? energy company customer satisfaction survey, winning first or second place in each of the last four years.
-- It now has more than 72,250 renewable electricity customers and 43,000 carbon neutral gas customers. It also provides Feed-in Tariff administration services to more than 124,500 sites
-- Good Energy is the owner of Delabole Wind Farm, the UK's first commercial wind farm and owns and operates Hampole Wind Farm, near Doncaster. The company also owns and operates seven solar farms.
-- Good Energy received a net promotor score of 46 from electricity and gas customers and 50 from FiT customers. This compares to the average Big Six rating of -29. A net promoter score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. It is used as a proxy for gauging the customers overall satisfaction with a company's product or service and the customer's loyalty to the brand.
-- Good Energy has won a number of awards including Renewable Energy Association Company of the Year Award 2016, Business Green Company of the Year 2015, and, was named Social Impact Company of the Year at the 2014 and 2015 Small Cap awards.
This information is provided by RNS
The company news service from the London Stock Exchange
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December 21, 2016 02:00 ET (07:00 GMT)