Wilshire-based renewable electricity supplier Good Energy has stated it is “well placed for growth” despite a significant decrease in half-year profits.
Good Energy has experienced a 28% drop in gross profit, falling to £23.6 million for the six months ending June 2024, compared to £32.7 million during the same period the previous year. This decline is attributed to the normalisation of the energy market. Nevertheless, the company’s gross margin has increased from 20.9% in 2023 to 24.3%. Revenues decreased to £97.4 million from £156.1 million in the first half of the previous year, mirroring the reductions in wholesale costs since early 2023. Despite the downturn, full-year profit expectations remain unchanged.
The company announced an interim dividend of 1.1p, a slight rise from the 1.0p recorded in the first half of 2023. Nigel Pocklington, the chief executive of Good Energy, commented, “As the energy supply market has normalised, we have shown strong profitability in the first half of the year, whilst our expansion into energy services is showing promise as we consolidate our offer to customers.” Over the last two years, Good Energy has made three acquisitions, including a specialist solar and storage installation and distribution business for £13.75 million. Additional investments in other energy services firms are being actively considered to expand its regional presence.
The company, a certified B Corp since July, holds a 49.9% stake in the EV charging app Zapmap, based in Bristol. In June, Good Energy made a £1.7 million investment in this venture. Pocklington noted, “Good Energy is established as the microgeneration specialist, with a significant market share of rooftop solar customers, leading export tariff rates, and premium installation services.” He further added that in a favourable policy environment promising an imminent ‘rooftop revolution,’ driven by the new government’s acceleration of the clean energy transition, Good Energy is well positioned for growth.
In July, Good Energy announced a partnership with the clean energy co-operative Ripple. This agreement allows the company to offer customers ownership opportunities in major wind or solar projects.
Despite a notable decline in profits, Good Energy remains optimistic about its growth prospects, supported by strategic acquisitions, investments, and a favourable policy environment. The company’s continued expansion into energy services and partnerships underscore its commitment to leading the clean energy transition.