Good Energy said it had made progress on transitioning its business to a green energy services model in 2022 and promised to install 12.000 heat pumps by 2026.
A 70.3% revenue increase for the year to £248.7 million (from £146 million in 2021) and 10.7% increase in gross profit to £29.9 million (from £27 million in 2021) nevertheless saw margin fall from 18.5% to 12.0%. The company said the decline in underlying margins “reflects that pricing, whilst rising, could not keep pace with rapidly increasing wholesale costs through H1 2022”.
The company sold its 47.5MW generation portfolio at the start of 2022 for £21.2 and took a step forward in its Esco strategy in December when it acquired Igloo Works, a heat pump and solar installation business. It said this was a “new high margin revenue stream” at low capital intensity and energy services represent a “£5-10 billion market opportunity.” The first domestic rooftop solar installation has been completed, and it said “Our community of green-minded domestic customers provide a strong initial pipeline for acquired businesses and enquiries to date following the Igloo acquisition have been highly encouraging”.
It said further acquisitions as a “core near term focus”.
Nigel Pocklington, chief executive, said: “2022 was an enormously challenging year in energy. The knock-on effects of the Ukraine conflict saw energy prices surge, driving increased costs which we were forced to pass on to supply customers in the form of price rises. Therefore, the vast majority of Good Energy’s positive performance came from areas other than energy supply.
“We have made significant strides in delivering on our strategy to become a leader in green energy services, and this momentum has continued with strategic milestones already achieved in the first quarter of 2023.”
He added, “There is a potential £5 to £10 billion growth market in clean energy technology installations among climate conscious customers. We are ideally positioned for this, and are kitting homes out homes with solar panels and batteries now and plan to install 12,000 heat pumps by 2026.”