TIDMGOOD
RNS Number : 1531A
Good Energy Group PLC
22 December 2017
22 December 2017
Good Energy Group PLC
("Good Energy" or the "Group")
Sale of two operational 5MW solar farms and supplementary
development rights
Good Energy, the AIM-listed renewable energy company supplying
100% renewable electricity and green gas to homes and businesses
across the UK, is pleased to make the following announcement.
Good Energy has completed the sale of its 5MW solar farm at
Newton Downs Farm near Newton Ferrers in Devon to CORE Aries
Limited in partnership with Yealm Community Energy Limited, a local
English community energy company. CORE Aries is owned by Community
Owned Renewable Energy LLP ("CORE"). CORE is funded by community
and social impact focussed investors Big Society Capital Limited
and PTC Renewable Energy Limited. The consideration is GBP5.83
million, payable in cash, giving an estimated profit before tax of
circa GBP0.75 million.
In addition, the Board has agreed to terms for the sale of the
existing 5MW solar park at Brynwhilach Farm, near Llangyfelach,
north of Swansea to CORE Pisces Limited in partnership with Gower
Power Co-op CIC, a local Welsh community energy company. CORE
Pisces is owned by CORE Home Nations Limited, funded by Big Society
Capital Limited. Subject to satisfaction of conditions, Good Energy
expects the transaction to complete in the first half of 2018. The
consideration will be GBP5.6 million, payable in cash, giving an
estimated profit before tax of circa GBP0.75 million. The
transaction includes a potential additional cash payment to Good
Energy linked to the value of any development or sale of
Brynwhilach Phase II, the amount of which is not yet
quantifiable.
Good Energy understands that CORE Aries and Core Pisces will be
working with Yealm Community Energy Limited and Gower Power
respectively to lift lifetime community benefit payments from each
of the sites to in excess of GBP1 million. It has also been agreed
that both sites will be transitioned into full community ownership
over a period of time after completion of the sales.
Good Energy will continue to be the PPA off taker for both of
the sites.
Good Energy will use the sale proceeds for general corporate
purposes, including to fund investment initiatives supporting
strategic growth, efficiency and profitability as already outlined
by the Group.
Juliet Davenport, CEO of Good Energy, commented:
"The sale of the Newton Downs Farm and Brynwhilach Farm sites is
an important milestone for Good Energy as we shift our focus away
from development and towards new growth opportunities. In keeping
with our purpose, I am delighted that we have been able to sell
both sites to community organisations who will be able to leverage
the opportunity of local renewable power generation. We look
forward to working with CORE in the future."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Good Energy Group PLC +44 (0) 1249 766 795
Juliet Davenport, Chief Executive Officer
Denise Cockrem, Chief Financial Officer
Good Energy
Investec Bank plc +44 (0) 207 597 4000
Jeremy Ellis
Sara Hale
Smithfield +44 (0) 20 3047 2543
Alex Simmons
Brett Jacobs
Notes to editors:
-- Good Energy is a fast-growing green energy company,
generating and selling 100% renewable electricity and supplying
carbon-neutral green gas to households and businesses across the
UK.
-- An AIM-listed PLC, and founder member of the Social Stock
Exchange, Good Energy was established in 1999 to empower households
and business to address climate changes through their choice of
energy supplier.
-- Good Energy has been awarded 4 out of 5 stars by Which? for
customer service in 2016 and 2017 and has been awarded a "Best Buy"
by Ethical Consumer.
-- As at 30 June 2017, Good Energy had over 71,150 renewable
electricity customers and 42,750 carbon neutral gas customers. It
also provides Feed-in Tariff administration services to over
137,900 sites, totalling over 251,800.
-- Good Energy is the owner of Delabole Wind Farm, the UK's
first commercial onshore wind farm and owns and operates Hampole
Wind Farm, near Doncaster. Following the sale of Newton Downs Farm
and Brynwhilach Farm, the Group will own and operate six solar
farms.
-- Good Energy has a net promoter score (NPS) of 45. NPS 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's used as a proxy for gauging the customer's 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.
About Newton Downs Solar Farm
-- Good Energy secured planning approval in July 2016 for a 5MW
solar farm at Newton Downs Farm near Newton Ferrers in Devon.
-- Construction of the solar farm was completed in January 2017.
-- The solar farm is expected to generate enough renewable
electricity to power approximately 1,400 average homes.
About Brynwhilach Farm Solar Farm
-- Good Energy secured planning approval in November 2014 for a
12.7MW solar farm at Brynwhilach Farm near Swansea in South
Wales.
-- Construction of the first 5MW phase of the development was
completed in March 2017 with potential to develop Phase II of the
site at a later date.
-- The constructed solar farm is expected to generate enough
renewable electricity to power approximately 1,350 homes,
increasing to approximately 2,700 average homes following
construction of Phase II.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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