RNS Number : 3813U

Good Energy Group PLC

28 March 2023

Good Energy Group PLC

("Good Energy" or "the Company")

Un-audited results for the 12 months ended 31 December 2022

Executing our strategy by transitioning our business to a green energy services model

Good Energy, the 100% renewable electricity supplier and innovative energy services provider, today announces its preliminary results for the twelve months ended 31 December 2022.

Financial highlights

-- Revenue increased 70.3% to GBP248.7m (2021: GBP146.0m) driven by rising wholesale costs which have led price rises throughout the year.

-- Government support for customers mitigated impact of very high commodity driven price points across the industry in Q4 2022.

-- 10.7% increase in gross profit to GBP29.9m (2021: GBP27.0m) with a gross profit margin of 12.0% (2021: 18.5%). T he decline in underlying margins reflects that pricing, whilst rising, could not keep pace with rapidly increasing wholesale costs through H1 2022 (price cap).

-- Profit before tax of GBP8.5m (2021: GBP1.8m) including net GBP4.9m recognised value on the Zap Map investment. Underlying PBT in the period was GBP3.1m with EBITDA of GBP4.4m.

-- Following the recent funding round, Zap-Map has been deconsolidated from full year PBT figures, FY 2022 included a loss of GBP2.0m for Zap-Map and a revaluation uplift of GBP 6.9m.

   --      Reported profit after tax for the period of GBP9.2m (2021: GBP1.6m). 
   --      Reported earnings per share of 59.7p (2021: -20.7p). 

-- Cash and cash equivalents at the end of Dec 2022 were GBP24.5m, with a further GBP8.4m in restricted deposit accounts. Within restricted deposits, GBP4.5m relates to Government support scheme monies received in late December for application to business and domestic customer accounts in January

-- Following a good operational performance in 2022 and reflecting our confidence in the ongoing business, the Board recommend a final dividend for 2022 of 2.0p per ordinary share, taking our full year dividend to 2.75p (2021: 2.55p)

Operational highlights

-- Successful execution on our strategy to transition to a leading green energy services company:

o Sale of 47.5MW generation portfolio in January 2022 for GBP21.2m to facilitate future investment and M&A.

o Acquisition of heat pump and solar installation business, Igloo Works, in December 2022, creating a new high margin revenue stream.

o Completed Zap-Map GBP9m series A fundraise with Fleetcor, valuing Zap-Map at GBP26.3m post money equity value.

o 63% increase in Zap-Map registered users to 550,000, reflecting continued strong growth in electric vehicle uptake.

   --      Renewable Supply business goals for 2022 achieved: 

o New product launched for businesses, matching their supply demands directly with generators. This reduces our exposure to wholesale markets and gives our customers comfort as to the provenance of their renewable electricity.

o Achieved target to install 13,000 smart meters during 2022, increasing total number of smart meters installed to date to over 40,000 (47% of our customer's meter points).

Post period end and outlook highlights

-- Ambition to be the UK's leading provider of green energy services, with the ability to install green energy infrastructure and provide the best tariffs for the energy produced by our customers :

o Launched a new market leading smart export tariff for households with solar panels in March 2023.

o First domestic rooftop solar installation completed, following Igloo acquisition.

   --      We assess that energy services represents a GBP5 - GBP10 billion market opportunity . ([i]) 
   --      Strategy is focused on driving high margin, low capital intensity sales growth . 
   --      Further M&A is a core near term focus, following recent buy and build acquisitions . 

-- 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.

-- Complemented through organic growth from product diversification including new generation product development and our ongoing relationship with Zap-Map and electric vehicle drivers .

-- Trading in 2023 has started in line with management expectations. Energy services continues to make good early progress. Wholesale power prices are softening but remain elevated and we anticipate the end of Government support schemes this month.

Nigel Pocklington, Chief Executive Officer of Good Energy, 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.

"As the UK's second biggest solar power payments company with more generator customers than supply, and which paid out a record amount to renewable generators in 2022, we are already the go-to energy company for solar generators.

"There is a potential GBP5 to GBP10 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.

A video overview of the results from the Chief Executive Officer, Nigel Pocklington, is available to watch here:



 Good Energy Group PLC 
  Nigel Pocklington, Chief Executive 
  Charlie Parry, Director of Corporate Strategy 
  & Investor Relations 
  Ian McKee, Head of Communications               Email: press@goodenergy.co.uk 
 SEC Newgate UK                                   Email: GoodEnergy@secnewgate.co.uk 
 Elisabeth Cowell / Molly Gretton                 Tel: +44 (0)7900 248213 
 Investec Bank plc (Nominated Adviser 
  and Joint Broker) 
                                                  Tel: +44 (0) 20 7597 
 Henry Reast / James Rudd                          5970 
 Canaccord Genuity Limited (Joint Broker)          Tel: +44 (0) 20 7523 
  Henry Fitzgerald - O'Connor / Harry Rees          4617 

About Good Energy www.goodenergy.co.uk

Good Energy is a supplier of 100% renewable power and an innovator in energy services. It has long term power purchase agreements with a community of 1,700 independent UK generators.

Since it was founded 20 years ago, the Company has been at the forefront of the charge towards a cleaner, distributed energy system. Its mission is to power a cleaner, greener world and make it simple to generate, share, store, use and travel by clean power. Its ambition is to support one million homes and businesses to cut carbon from their energy and transport used by 2025.

Good Energy is recognised as a leader in this market, through green kite accreditation with the London Stock Exchange, Which? Eco Provider status and Gold Standard Uswitch Green Tariff Accreditation for all tariffs.

Chair's review


Setting out in 2022 we aimed to make progress on our strategy across supply, generation and transport to deliver on our ambition of helping one million homes and businesses cut their carbon by 2025. We made substantial strides in executing our strategy by funding Zap-Map's growth, investing in generation services by launching smart export and acquiring a clean technology installation business, and maintaining a trusted truly green supply business against a very volatile backdrop.

We have entered 2023 a very different business to the one we were 12 months before, having taken these tangible steps in our transition to become a green energy services business during the year under review. This, together with the fact that we remain substantially debt free and have a strong cash position for continued investment, is of benefit to all our stakeholders.

For our customers, they have access to a trusted partner which can now facilitate their ambition to generate green power for their home, and which can also ensure they earn more from the power they generate. For our investors, they have exposure to a highly exciting growth market and are benefitting from the value creation achieved through our investment into Zap-Map. Plus, this growth and expansion is underpinned by a stable energy supply business.

I opened my statement last year noting the tumultuous prior year we had witnessed. 2021 was dominated by the continuation of the global pandemic and national lockdowns and 2022 saw this volatility continue, driven by Russia's aggression in Ukraine and the ensuing global supply chain issues.

Forward prices for electricity and gas hit extraordinary levels, hitting highs of over 10 times the norms of recent years. [ii] As a supplier which buys all of its power from renewable sources, due to the mechanics of the UK market Good Energy was far from immune from the knock-on effects. These increased costs drove a 70.7% increase in revenues and forced multiple price increases upon customers.

The rising costs emphasised the need to shift away from fossil fuels and encouraged people to insulate themselves from the high prices by switching to solar power, with double the number of rooftop installations taking place in the year versus 2021. [iii]

Amidst this volatile backdrop, we exited the year in a strong position. We have a robust balance sheet, continue to invest in high growth markets and are helping more homes and businesses save money and decarbonise.

Strategic developments

Despite the challenging market context, 2022 was a transformational year for Good Energy. We are well positioned for high margin sales growth from green energy services going forward. We now have a strong platform from which to execute on an extremely compelling opportunity, and we are excited to take this part of the business to the next level in 2023.

In January, we completed the sale of our generation assets. This provided us with a robust and substantially debt-free balance sheet as well as funds to invest in our green energy services proposition and in turn, the next wave of decarbonisation.

Not long after, we participated in a GBP9m Series A fundraise by Zap-Map, the UK's leading electric vehicle mapping platform. Fleetcor, one of the world's leading business payment firms took a minority stake, as they look to build on their leading fuel card offering and help businesses transition to electric vehicles. This deal values Zap-Map at GBP26.3m post money and adds non-cash profit to our balance sheet.

In December, we completed the acquisition of Igloo Works, an established UK based heat pump installation business with capability for solar installs too. The acquisition represents a significant milestone in delivering on Good Energy's strategy to accelerate its capability in decentralised energy services, complementing its established energy supply business. It also supports Good Energy's ambition to help one million customers cut carbon by 2025, creating a new service in the crucial clean, green heating space. We expect to see further acquisitions in the domestic energy services space and we look forward to updating the market on progress in due course.

Capital allocation

Our substantially debt free position and strong cash balance allows us to continue to invest for sustainable growth, including further acquisitions in energy services and our capital allocation policy reflects this. However, we recognise the importance of a dividend to many shareholders.

Following a good operational performance in 2022 and reflecting our confidence in the ongoing business, the Board recommend a final dividend for 2022 of 2.0p per ordinary share, taking our full year dividend to 2.75p (2021: 2.55p).


At the AGM in June, Juliet Davenport, founder, former CEO and then Non-Executive Director stood down from the Good Energy Board. I want to take this opportunity to thank Juliet for her enormous contribution to the wider energy transition. On behalf of the Board, I want to thank her deeply for her contribution and look forward to seeing her continue to inspire and lead the way towards a cleaner, greener future.

Looking ahead

We are seeing a softening in volatility of the energy market currently. Good Energy remains well positioned both from a shorter-term balance sheet perspective, but also from a longer-term strategic growth perspective. The climate crisis already provided urgency to transition to a clean energy system. The current economic and political turmoil provides geopolitical urgency to achieve greater energy independence too.

The opportunity ahead of us is a compelling one. We are focussed on fast growth areas, with good margin and low working capital intensity. We have identified a target addressable market of almost 900,000 households in the next two years, which equates to a c. GBP5 billion target addressable market. Including the medium term meaningful green actions households, this increases to a c. GBP10 billion opportunity. Our engaged customer base of green-minded households provides us with a strong initial pipeline for our energy services and the interest in our new services from this community has been highly encouraging.

Good Energy has a more powerful role than ever to play in accelerating the transition to renewables and we look forward to providing updates during what we expect to be another busy year for your company.

Will Whitehorn, Chair

CEO's review

Our future energy system will not be a handful of suppliers billing customers for energy produced by a few generators. It will be a decentralised, digitised, cleaner, greener grid where homes and businesses play an active role. Generating, sharing, storing, using and travelling with clean power.

This is a vision Good Energy has driven towards for years. And its urgency was more apparent than ever in 2022 as the volatility of our current centralised largely fossil fuel-based system was abundantly clear by surging costs and rising bills for customers.

This future energy system is one in which Good Energy is already a major player and our goal is to become the leading green energy services company in the UK. As the UK's largest voluntary Feed-in Tariff (FiT) administrator, and second largest overall, we are the only energy supplier today which has more customers generating their own power than buying ours. With over 180,000 FiT customers we have more than 20% market share of the biggest decentralised energy scheme in the UK today.

Robust financial performance and strong cash balance

During the energy crisis, which took hold in late 2021 and did not let up throughout 2022, Good Energy continued to show robustness. We sold our two wind and six solar farm generation assets early in the year, a departure from our past enabling us to invest in our future strategy and the next wave of decarbonisation. The cash, alongside our prudent approach to hedging throughout the year, has resulted in a strong balance sheet.

Our supply business has been a steady ship in choppy waters. After two years without a price change we implemented several throughout 2022, moving our prices as the market required. We called for government support on bills, seeing the onset of extraordinary rises during the critical winter months. This came through the Energy Bill Support Scheme and the later announced Energy Price Guarantee, in addition to the Energy Bill Discount Scheme for businesses. Implementing these schemes often at very short notice was a not insignificant task and we are proud to have done so efficiently and effectively. With clear communication to customers, we maintained the trust we have built over years and this will be essential as we evolve into a green energy services business.

Post period end, we are pleased to have signed our largest ever deal with renewable energy giant Ørsted to provide clean power to UK homes and businesses. Utilising the power from one of the world's largest offshore windfarms, Ørsted's Hornsea 1 offshore windfarm in the North Sea, the three year deal will provide 110GWh per annum, the most significant in terms of volume in Good Energy's history - and enough for almost 38,000 homes. This is testament to the strong working relationship we have built with Ørsted and speaks to the strong partnership approach we have.

Green shoots for decentralised energy

Through the challenges of 2022 there were some green shoots for a cleaner, decentralised energy system. 2022 saw a surge in rooftop solar installations, more than doubling the year previous to hit highs not seen since the peak of the FiT scheme in 2015. [iv] This was largely driven by customers looking to curb their bills by gaining energy independence and took place without an especially competitive export tariff market. The rates offered under the government's replacement to FiT, the Smart Export Guarantee, were especially low in the context of high import prices.

The rapidly growing rooftop solar market is one Good Energy is perfectly positioned for and we have launched new tariffs to ensure more people are rewarded fairly for their switch to green energy sources. We launched smart export for Feed-in Tariff customers towards the end of 2022, meaning these customers could earn more for their power than the deemed 50% rate for export under the scheme. And now we have launched Power for Good, a leading variable export tariff for households with solar power, offering a better export rate than under FiT or the standard rates under the government's Smart Export Guarantee.

Igloo Works' was established as an installer of heat pumps, a crucial technology to get the UK off gas, the fuel which is not only contributing to climate change but been the cause of stratospheric energy prices over the past 12 to 18 months. This represents another significant growth opportunity, considering the government's stated target of 600,000 annual heat pump sales by 2028. [v] Following the December acquisition the company has been fully incorporated into the Good Energy brand and we have also built out this business' ability to install domestic solar panels. Having set to work quickly, we have since completed our first solar installation meaning that customers can now get a heat pump or solar panels from Good Energy as well as the truly 100% renewable electricity to power it, or payment for what they export. We have an ambitious plan to ramp up sales from our current customer base - which has already expressed strong interest in our new services - as well as from new customers. Another significant growth opportunity as we approach the government's stated target of 600,000 annual heat pump sales by 2028.

Travel with clean power

Another pillar of our strategy which saw growth through 2022 is electrification of transport. Despite supply chain issues and rising electricity prices, more than 265,000 electric cars were registered in 2022, a growth of 40% on 2021 with a total on UK roads now counting nearly 700,000 [vi] . Zap-Map continued to maintain its strong market share in this rapidly growing contingent, reaching 1,000,000 downloads and over 500,000 registered users.

In its Series A Zap-Map raised GBP9m, including a further GBP3.7m from Good Energy in addition to GBP5.3m new strategic investment from global fleet payments giant Fleetcor. The transaction values the business at GBP26.3m with Good Energy's shareholding at 49.9%.

Zap-Map's revenue channels are all growing. Subscriptions are showing particular strength among new registered users. Zap-Pay, Zap-Map's solution to a fragmented EV charging payments experience, is now available for use on 25% of the UK's rapid chargers. Demand for Zap-Map's unique data and insights is growing in lockstep with the market, and a new dedicated insights business unit is successfully fulfilling this as a strong commercial proposition.


Having established our goal to help one million homes and businesses cut their carbon by 2025 last year, we are already well on our way. We believe that our target customer opportunity in energy services is a GBP5bn - GBP10bn market where we are focused on driving high margin, low capital intensity sales growth.

Further M&A will be a core near term focus, following the success of recent buy and build acquisitions and a way to capitalise on the market opportunity. Our strong 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. Wholesale energy prices have eased into 2023, but we continue to take a prudent approach to trading to maintain our robust position.

With a strong balance sheet, a strategy of investment in high growth markets to help more to decarbonise, Good Energy's cleaner, greener future as a services company looks very positive. Our ambition is to be the UK's leading provider of green energy services, with the ability to install green energy infrastructure and provide the best tariffs for the energy produced by our customers. The tangible steps made in 2022 have set the scene for an exciting 2023.

Nigel Pocklington, CEO

Market review

The energy market saw unprecedented volatility in 2022. Wholesale energy prices hit highs of over 10 times pre-2022 norms, fluctuating throughout the year but remaining at extreme levels.

These extreme highs and volatility were driven overwhelmingly by global gas prices due to the conflict in Ukraine and sanctions on Russia, and the UK was especially impacted due to its reliance on gas for both heating and electricity generation. The mechanics of the capacity market in the UK meant that even renewable electricity prices were driven upwards, increasing Good Energy's costs.

In 2022, in a more consolidated supply market, these increased costs impacted customers' bills. The energy price cap rose by 54% in April 2022, and soon looked to be three times the year prior from 1 October.

Government schemes

The government had announced it would be stepping in to support through the Energy Bills Support Scheme (EBSS), but as October approached it became clear that a greater level of intervention would be required.

The Energy Price Guarantee (EPG) was announced in September. A unit rate discount, it was applied from 1 October to reduce a typical annual dual fuel bill on a price capped tariff to GBP2,500, with the EBSS GBP400 payment made in monthly instalments over the winter period reducing this further.

Support for businesses was also introduced in the form of the Energy Bill Relief Scheme, operating similarly to the EPG by discounting unit rates.

Regulatory environment

Following the widespread failure of energy suppliers in 2021 the regulatory environment changed significantly, from a largely liberal approach to one of greatly increased scrutiny.

Ofgem's Market Compliance Review process demanded a new level of transparency from suppliers and has been applied with haste as the regulator looks to reform the market. The reviews have looked in detail at areas including Direct Debit processes, general standards of performance, customer service and customers in payment difficulty.

Vulnerable customers

Of greatest concern throughout this crisis has been the impact of increasing bills on vulnerable customers and the growing number in fuel poverty - defined as spending 10% or more of income on energy.

Whilst the government schemes shielded millions from the very worst of rising bills, the price cap of GBP2,500 in place from October is still nearly double the level a year prior, meaning significant bill shock for many. For those previously on cheaper fixed deals which largely do not exist in the market any longer, this increase will have been even sharper.

Particular focus has been given to prepayment customers, as the method of payment more common for lower income households. Good Energy has a very small proportion of customers which pay via this method - just 1% compared to upwards of 15% across the industry [vii] . We do not install traditional prepayment meters, as we believe they are not a good solution for any customer. We offer smart prepayment in conjunction with debt management plans as a way for customers to take control of their usage.

Good Energy campaigned vocally not only for the government support schemes to shield customers in the short term, but for investment into energy efficiency and renewables to reduce bills for the longer term. We joined Energy UK's Vulnerability Commitment and began offering the Warm Home Discount. As part of the latter we donated to the fuel poverty charity National Energy Action. We also made a special donation to our long-term partners Friends of the Earth in support of their United for Warm Homes campaign.

We are now reducing our smart prepayment prices, making our smart prepay tariff the cheapest price capped tariff on the market from 1 April - ahead of the government announcing its plans for all suppliers to do this.

Good Energy has called for the implementation of a social tariff available to lower income customers industry wide to make energy bills fairer. Ultimately, we believe the most important aspect of the pathway to a permanently fairer energy system is greater investment in renewables, flexibility and energy efficiency to make energy cheaper and greener for everyone.

Strategic update - Our transition to a green energy services company

We have a clear strategic vision. To support one million homes and businesses cut carbon from their energy and transport use by 2025. Our aim is to power a cleaner, greener, world by making it simple to generate, share, store, use and travel by clean power.

Aligning the business to our strategic vision

Our history has seen us evolve as the renewable energy industry has gathered pace over the past twenty years. Whilst our purpose and mission remains unchanged, how we are best placed to achieve that mission is evolving. Where our recent past focused on large scale generation and renewable supply, we now believe that we can have a greater impact through the provision of energy services, underpinned by renewable supply.

Energy services

Our definition of energy services focuses on three core areas:

   --      Solar and generation 
   --      Heat 
   --      Transport 

Services and tariffs for domestic and small generators, the installation of solar, battery storage and heat pumps and the provision of electric vehicle services that help drivers search, plan, route and pay.

These are high growth markets, typically requiring less working capital. We will be deploying capital for both organic growth and M&A in these markets to build on our existing capabilities.

Renewable supply

We serve both domestic and business customers, with fairly priced, real 100% renewable electricity. This is what underpins our energy services offering. We have proven operating capability and stable growth in a highly regulated market.

Energy services - a GBP5 billion to GBP10 billion opportunity

In the summer of 2022, we undertook a detailed assessment of UK households to develop an extensive understanding of our target customers. In the UK, there are approximately 29 million domestic households. Our target customers want to go green, make a difference and save money. Of the 29 million households, we view 4.1 million households as our target customers.

Of these 4.1 million, our immediate focus is on a 1.1 million segment we label as 'green champions'. Typically older, wealthier, own their own homes and willing to invest to save money and combat climate change. A larger, but more medium-term focus of a further 3 million households are the 'meaningful green actions'. Typically younger, wanting to make bold climate decisions, but require more barriers of adoption removing.

This detailed analysis showed that 16% of these green champions already had solar installed, 6% had a battery and 9% a heat pump. This compares to the national average of 4% of households who have solar installed. They are the early adopters. Of the remaining pool of customers, 32% said they would consider solar in the next two years, 35% a battery and 22% a heat pump. There were larger, albeit potentially more aspirational, figures for our meaningful green actions segment. We therefore see a target addressable market of almost 900,000 households in the next two years, which equates to a c. GBP5 billion target addressable market. Including the medium term meaningful green actions households, this increases to a c. GBP10 billion opportunity. Whilst we will be unable to serve all of those customers, it identifies the scale of opportunity that exists today. This is no longer an early adopter market for energy enthusiasts.

Solar, heat pumps and EV markets are fast growth markets, with good margin and low working capital intensity. In comparison, there is unlikely to be growth in the domestic energy supply market in the near term and business supply growth must be selective. Margins are low, and working capital is higher as a result of elevated energy costs and trading collateral requirements. Energy services offers better returns than energy supply in both the short and long term.

Solar and generation

The UK solar market has seen near record levels of growth through 2022 as energy prices remained high. Installs increased over 125% to 132,000 and are near the record highs of 2015 at the peak of the feed in tariff administration. The vast majority of this demand was domestic installs which accounted for 88% of the volumes in 2022, as people looked to shield themselves from the rising energy costs.

We anticipate cumulative capacity on the grid to be 7.5GWh by 2030 in order to be on track with net zero targets, which outlines a 9.9% CAGR to 2030. [viii] However, from install levels seen in 2022, we calculate that this only requires a 2.9% annual growth in install levels to c. 167k per year. With energy costs unlikely to be falling quickly in the short term, we see this as the main driver for install growth, which will continue to build momentum.

Solar tariffs and innovation

In early 2023 we launched a new market leading smart export tariff for households with solar panels. 'Power for Good' will pay 10p per kWh, a leading variable export tariff rate aligned to the market and reviewed on a quarterly basis and better than the standard rates offered under the Government's Smart Export Guarantee.

The new tariff, which will require homes with solar panels to have a compatible smart meter, means a typical solar powered home could get paid around GBP150 per year for the energy they share. That's in addition to saving around GBP500 off their annual energy bills for what they use themselves.

We believe that people who have solar panels should be getting a fair price for their power and our ambition is for Good Energy to be known as the as the go-to supplier if you want the best tariffs for the power you generate from the panels on your roof.

We are already the second biggest solar power payment company in the UK through the Feed-in Tariff (FiT), with over 180,000 customers for whom we administrate hundreds of millions of pounds in payments. We recently launched smart export for our FiT customers, meaning these micro-generators could be paid more for their export as it is based on what they actually share with the grid rather than the deemed 50% normally paid.

Power for Good will be Good Energy's first smart export tariff available to non-FiT customers including those who installed their solar panels after the scheme closed in 2019.

Scaling solar and generation services

Following the acquisition of Igloo Works in December 2022, we also recently announced that we will be installing solar panels. The number of installations on rooftops surged in 2022 as people looked to shield themselves from high energy bills and take control of their power. The trend is set to continue as energy prices remain high and demand for clean energy remains strong, and we are looking to help customers with its install offer and the new market leading tariff.

We will continue to be acquisitive in this space in order to bolster our expertise in solar installation and increase our installation capacity. Whilst we have significant national demand from our own customer base, we will take a highly regionalised approach to developing installation capability.

The solar installation market remains highly fragmented with over 3,000 registered installers and the vast majority installing less than 200 installs per year. Our growth strategy is focused on a regional roll up of these companies to act as installation arms. We anticipate a number of acquisitions, similar to our approach with Igloo Works, in order to build a footprint to meet this demand. From this acquired base, we will look to grow install capacity organically and leverage the Good Energy credentials of a strong brand and corporate functions to drive increased reach and help customers cut carbon and save money.

We expect to complete further acquisitions throughout 2023, whilst continuing to target our existing customer base.


Like solar installation the heat pump installation market has seen significant growth throughout 2022 and a 35% CAGR over the two years since 2020. [ix] , with air source heat pumps accounting for over 85% of installations, as people looked to benefit from solar generation and shield themselves from rising gas costs.

The boiler upgrade scheme was introduced in March 2022, offering a GBP5,000 reduction from the total cost of installation. This replaced the former renewable heat incentive, but uptake has been slow. A combination of higher up-front costs and underwhelming Government support.

Whilst growth in 2022 has been positive, a lot more needs to be done to hit net zero targets. Our modelling outlines over 400,000 installs per year by 2030 targets, with a 20% CAGR growth in installation volumes required to achieve this. This year has been a tipping point for heat pump installations but more needs to be done to reduce up front costs, promote awareness and debunk performance myths.

To date, around 60% of people with heat pumps have had solar installed first, [x] outlining the benefit of using excess solar generation to power the electricity required for an air source heat pump. We see this as a clear opportunity to market to our solar installation customers and Feed-in Tariff customer base.

Heat pump installations underway and growing

Following the acquisition of Igloo Works, heat pump installations have continued to grow and we are targeting 500 installations in 2023 and to build the capacity for 12,000 per year by 2026. Whilst these targets are ambitious, we believe we have a customer base and audience who are open to this. Initially our focus is on serving our c. 60k domestic energy supply customers, and selectively targeting both electric vehicle drivers and those with solar generation. In time, we have a future ambition to target the 1.5 million boiler replacement market, but this will take a meaningful shift in volume to reduce the up front cost for mainstream consumers.

In March 2023 we incorporated the business into the Good Energy brand and have continued to develop a range of services to improve overall user experience. This will include energy tariffs to underpin the overall renewable offering and reduce the total cost of ownership.


The electric vehicle market saw continued growth in 2022, following impressive growth in recent years. Total EVs on the road now totals over 1.1m, with over 60% of these being battery electric vehicles in 2022. These battery electric vehicles are Zap-Map's core market.

The Battery EV market grew 67% to over 700,000 in 2022 and has a 2-year CAGR of 80%. Cumulatively, Zap-Map now has over 1 million downloads of the app and over 550,000 registered users, up 63% in 2022 and a 2 year CAGR of 83%. It continues to retain its position as the market leader in the high growth electric vehicle market, with registered user penetration at over 80% of all electric vehicle drivers.

Zap-Map: Building scale and recurring revenue

In August 2022, Zap-Map closed a GBP9m series A funding round including investment from Good Energy and Fleetcor:

-- GBP5.3m new investment from Fleetcor provided strategic opportunities to leverage Fleetcor's global footprint and partnerships with electric vehicle fleets and charging providers in support of Zap-Map's international expansion plans.

-- Good Energy invested GBP3.7m in line with its strategy to make it simple for people to generate, share, store, use and travel with clean power.

Zap-Map's commercial goals include building on its paid-subscription services and initiating international expansion. The funds raised are being deployed to fuel the expansion of Zap-Map's development team to deliver its product roadmap and could pave the way for Zap-Map's international expansion, which began in late 2022. Zap-Map registered users as a share of battery EV drivers was stable around 80% and the first steps have been taken in international expansion.

Zap-Map's share of EV market has continued to transfer into revenue growth and they delivered over GBP1m in revenue in 2022 and are on track to double this recurring revenue in 2023 growing across its three core revenue streams.

   --      Subscriptions 

o Monthly or annual subscriptions for added-value features on mobile and in-car.

o Active app users growing in line with BEV market growth. Targeting 10% of registered users on paid subscription services.

   --      Pay 

o 12 charging networks now signed covering 25% of the rapid charger network.

o Zap-Pay utilisation continuing to increase. Higher charging costs on the public network allowing for more flexible payment offers.

o Integration with fleet Allstar Electric card for payment, with Fleetcor.

   --      Data and insights 

o Dedicated insights business unit created to serve growing demand.

o Increased need to understand the EV landscape for a growing range of businesses and organisations.

o Zap-Map possesses the broadest and deepest data set, excellent market knowledge and a wide range of recurring data services. High growth potential.

Zap-Map growth

A major part of the Series A investment is to allow Zap-Map to build on its market leading data and mapping, to develop its user experience. This will allow for existing services to be improved and new revenue streams to be developed. These include increasing subscriptions through value-add services, improve Zap-Pay functionality within the user journey and develop an API (application programme interface) solution to allow the app functionality to be utilised within partner apps and platforms.

The API solution is a single-entry point to enable third party digital products. The Zap-Map platform is powered by scalable, secure, and tested APIs. The first iteration of this has been developed along Allstar, Fleetcor's UK fuel brand, as part of the Allstar Electric fuel card. Further API capability will be rolled out to a wide range of partners for search, payment, and planning. This provides a range of other companies one integration to leverage Zap-Map's unique applications.

Growth will be targeted across segments.

   --      Free users will have the widest choice, best data, and the simplest way to pay. 
   --      Premium users can access added value charging features on mobile and in car. 

-- Insights and data services use rich data to support required growth in UK EV charging infrastructure.

   --      Strategic partners can gain the ability to build their own digital EV product set. 

Monetisation will focus on the development of recurring revenue streams by growing subscriptions, data API sales, insights and partner transaction fees. Payment transactions and advertising revenue will enhance revenues further.

Renewable supply

We continue to operate in both the domestic and business UK energy supply markets, but remain a premium provider for green-minded customers. We provide a range of import and export services, which underpin our overall offering. Our import services provide 100% real renewable electricity to domestic, small businesses and smaller half hourly business customers. We do not focus on large scale industrial customers. Our export services provide power purchase agreements (PPAs), Feed-in Tariff administration services and smart generation offers for domestic and business customers.

In domestic supply, we are witnessing a market with limited growth potential with the introduction of the market stabilisation charge, high wholesale costs and increased working capital requirements for purchasing power. We have continued to make good progress with our smart meter roll out and now have over 40,000 installed to date.

In Business supply, we have a clear size and sectoral targeting. Small, medium sized enterprises (SMEs), and half hourly metered business sites, with a focus on purpose driven businesses looking for a truly green supply product. Recent customer renewals include The Crown Estate, PriceWaterhouseCoopers, Rapanui and BNP Paribas.

Our purchasing of PPA's is what sets us apart and allows us to provide 100% renewable electricity. This is sourced from over 1,700 individual generators including a mix of wind, solar, hydro and anaerobic digestion.

Near term growth pathway

Our strategic vision remains unchanged, in helping one million homes and businesses cut carbon from their energy and transport use by 2025. Our growth in 2023 will be achieved through.

   --      Roll out of solar services to our existing client base. 
   --      Roll out of solar and heat pump installations. 
   --      Acquire more capacity to accelerate services strategy faster. 
   --      Drive uptake of new tariffs to maximise our customer base and potential customers. 

For many, the purchase of an electric vehicle will be the trigger into further energy services products. Initially this will require the need to search, plan and pay for EV charging on the road, and charge at home with cheaper, smarter off-peak tariffs. Research by Zap-Map indicates that EV drivers are seven times more likely to have solar PV installed than the national average, with 29% of respondents having solar panels on their home.

For those with EVs, solar PV allows you to reduce your overall energy costs, support off grid consumption and increase value through flexibility by exporting excess generation or storing it for avoiding expensive on peak consumption. Our installation partner data shows that on average 80% of solar PV installs are now also selling a battery storage system to maximise this benefit.

MCS (Microgeneration Certification Scheme) data shows that on average 60% of recent heat pump installations had solar PV installed first. This allows consumers to minimise overall heating costs by powering from solar, or replace increasingly expensive gas and oil products.

What ties this all together are smart energy tariffs that maximise the ability to save money and reduce carbon. These are smart meter enabled, and bespoke recommendations will allow us to remove complexity for consumers. In time, the technology potential will allow much of this to be automated to increase cost savings further. Smart charging, load shifting and further flexibility services provide material upside.

We remain committed to building out these range of services through our investments in Zap-Map, Igloo Works and further M&A activity. Initially through the installation of solar, storage and heat pump hardware, before wrapping appropriate tariffs to optimise consumption. And finally monetising these assets as scale is built.


Wholesale energy market conditions

Power prices

The development of power prices in the last 24 months has been significant, with COVID impacts and subsequent recovery before geopolitical matters drove a dramatic, rapid, and fluctuating upward trend in wholesale power and gas costs. Day ahead gas prices started the year at GBP1.53/therm, peaked at GBP6.44/therm on 26 August, and had dropped/stabilised to GBP1.30/therm by mid-January 2023 driven by high European gas storage levels, LNG imports into Europe, a warmer than seasonal normal winter and a general removal of risk pricing as the industry adapted to the loss of Russian Oil and Gas flows.

Weather conditions in 2022 have reflected a warmer year than ever recorded before. The provisional UK mean temperature for 2022 was 10.0 degC, which is 0.9 degC above average, reaching 10 degC for the first time and exceeding the UK's previous warmest year (2014, 9.9 degC). Overall Good Energy gas supply volume was down 17% in 2022 (vs 2021) as the warm temperature combined with price and political reasons to drive down usage.

Overall electricity supply volumes were up 2.5% (vs 2021) reflecting continued COVID recovery and increased business supply volumes.

Our renewable supply business

Cash collections

Significant rise in cash collections in 2022 driven by increased tariffs (SVT's Price Cap and Commercial tariffs) and the recovery from teething problems experienced in the implementation of our new business billing platform (Ensek) which impacted collection during Q2 and Q3 2021.

There is a continued focus on good quality business partners to ensure future growth comes hand in hand with good collections performance.

Cash collections continue to be a priority for the business, with rising wholesale prices requiring tariff increases and increased collections to continue to sustain the business.


Total business supply customers fell by 30.6% to 8,000. Despite this reduction in customer numbers, business supply volumes grew by 5% reflecting higher usage contracts. (2022: 457 GWh (Gigawatt hours), 2021: 435 GWh).


We remain committed to ensuring that we offer fair priced, transparent 100% renewable electricity proposition. Elevated energy prices will drive increasing awareness in the sector.

Feed in Tariff ("FIT")

FIT administration provides the foundation of our energy services model. Despite the FIT scheme closing to new entrants in March 2019, we continue to administer the scheme for domestic and business customers. Customer numbers increased 0.1% to 180,300 versus 2021.

Generation performance

In January 2022 we announced the disposal of the renewable generation asset portfolio (47.5MW) as part of an ongoing strategic shift to energy and mobility services.

Smart metering

Following delays in 2020 and the first half 2021 due to COVID-19 restrictions, installations are now progressing well. In 2022,13,000 meters were installed in the year delivering on our 2022 target. Over 40,000 meters have been installed to date.



The Group has had a resilient financial performance despite continued and significant pressure from commodity markets impacting on the year's performance.

Financial performance

Profit and loss

Revenue increased 70% in the period to GBP248.7m (2021: GBP146.0m) driven by increased tariffs which have followed the volatility seen in worldwide wholesale power and gas costs. Cost of sales increased by 84% to GBP218.8m (2021 GBP119.0m) driven by geopolitical impacts on wholesale costs.

Reported gross profit increased 10.7% to GBP29.9m (2021: GBP27.0m). Gross margin decreased to 12.0% (2021 Reported: 18.5%, 2021 Underlying 14.5%). The 2.5% decline in underlying margins reflects that pricing whilst rising could not keep pace with rapidly increasing wholesale costs through H1 2022 (price cap).

Total administration costs increased 20% to GBP28.8m. This increase relates to the booking of expected credit loss (ECL) provisions at 2022 year-end rates, alongside the planned expansion of Zap-Map, energy services investments, and inflationary pressures experienced by all businesses during 2022.

Finance costs decreased by 40% to GBP0.4m due to a combination of significant debt reduction over the past few years and the sale of the generation asset portfolio.

Reported profit before tax of GBP8.5m includes GBP7m of profit recognised on the deconsolidation of the Zap Map investment due to relevant accounting treatment , alongside GBP(2.0)m of losses related to the costs associated with the ZAPMAP business in 2022. Underlying profit before tax is GBP3.1m which includes price, weather, industry and the non-repeat of 2021 impairment. Adding back GBP1.3m of depreciation and amortisation gives GBP4.4m EBITDA for the period.

Reported tax credit at H1 2022 include the impact one-off benefits related to generation business sale.

The reported profit for the period was GBP9.2m (2021: -GBP3.9m). This reflects the increase in value of the Zap Map investment as explained above and extraordinary market conditions seen since H2 2021 and continuing to this day.

*A profit bridge slide has been included in the Investor presentation, which is available on the Company's website. (https://group.goodenergy.co.uk/home/default.aspx)

Cash flow and cash generation

The increased tariffs alongside the recovery from 2021 business billing migration issues has seen a significant improvement in collections year on year. Collections in H1 were up 72% and in H2 were up 88% versus the same periods in 2021.

There was a net increase in cash of GBP17.8m, which includes the proceeds from the sale of the Generation assets (GBP21.2m - gross of fees) alongside the further strategic investment in Zap-Map of GBP2.7m and the acquisition of Igloo Works for GBP1.8m.

Cash and cash equivalents at the end of Dec 2022 were GBP24.5m, with a further GBP8.4m sat in restricted deposit accounts. GBP4.5m of which relates to Government support scheme monies received in late December for application to business and domestic customer accounts in January.

Funding and debt

Our business is debt free on a net basis.

Substantial progress has been made against reducing Group finance costs and reducing the gearing ratio. The remaining Good Energy Bonds II outstanding (GBP4.9m) is split GBP10k short term liabilities and GBP4.9m within long term liabilities. This is due to an annual redemption request window for bondholders in December of each year.

The Group continues to maintain capital flexibility, balancing operating requirements, investments for growth and payment of dividends. Our business remains mindful of the need to capitalise on strategic business development and investment opportunities. Prudent balance sheet management remains a key priority.


Reported basic earnings per share increased to 59.7p (2021: -20.7p).


Following stable operational performance in 2022, the sale of the generation portfolio and reflecting our confidence in the ongoing business, the Board recommend a final dividend for 2022 of 2.0p per ordinary share.

Good Energy continues to operate a scrip dividend scheme and the payment timetable of the final dividend will be announced in due course.

Expected Credit Loss (ECL)

ECL charge in the year was GBP3.9m, this is an increase of GBP1.0m (2021: GBP2.9m).

The main impact of the year is elevated tariffs. Revenues have significantly increased but this has been partially offset by Government support schemes reducing the impact of higher prices on end customers.

Zap-Map investment

2022 saw a P&L loss related to Zap Map of GBP(2.0)m which increased GBP(1.0)m from 2021, following a period of continued investment. This was expected and related to Zap Map's growth plan. From 8 August 2022 Good Energy decreased its stake to a 49.9% minority shareholding and deconsolidated Zap Map which is now an Associate .

Generation portfolio sale

On 25 November 2021, the Company appointed KPMG LLP to lead a sale process for the Company's entire 47.5MW generation portfolio.

On 20 January 2022 the Company announced, that following a competitive process, the disposal of the 47.5MW generation portfolio was complete with Bluefield Solar Income Fund. Total consideration of GBP21.2m was received for the sale.

We are committed to delivering value to stakeholders and the sale of our generation portfolio, at a significant premium to book value, was a good deal. It is also a significant moment for Good Energy - we are using the capital from our past to invest in our future.

Events after the balance sheet

Good Energy will voluntarily withdraw the Company's ordinary shares ("Ordinary Shares") from trading on the AQSE Growth Market. Therefore, trading in the Ordinary Shares will cease at 4:30 p.m. on 31 March 2023. Trading in the Ordinary Shares will continue on the AIM market of the London Stock Exchange.

Consolidated Statement of Comprehensive Income (Unaudited)

 For the year ended 31 December 2022                                   2022        2021 
                                                                    GBP'000     GBP'000 
                                                Notes             Unaudited 
 REVENUE                                            2               248,682     146,045 
 Cost of sales                                                    (218,768)   (119,019) 
                                                                 ----------  ---------- 
 GROSS PROFIT                                                        29,914      27,026 
 Administrative expenses                                           (28,805)    (23,816) 
 Non-underlying costs                                                     -       (806) 
 Other operating income                                                  66           - 
                                                                 ----------  ---------- 
 OPERATING PROFIT                                                     1,175       2,404 
 Finance income                                     4                   633          14 
 Finance costs                                      4                 (351)       (584) 
 Gain arising on loss of control of                                   6,884           - 
 Share of loss of associate                                           (712)           - 
                                                                 ----------  ---------- 
 PROFIT BEFORE TAX                                                    7,629       1,834 
 Taxation                                                               737       (187) 
                                                                 ----------  ---------- 
  OPERATIONS                                                          8,366       1,647 
                                                                 ----------  ---------- 
 Profit/(Loss) from discontinued operations, 
  after tax                                                             858     (5,546) 
                                                                 ----------  ---------- 
 PROFIT/ (LOSS) FOR THE PERIOD                                        9,224     (3,899) 
 Attributable to 
 Good Energy Group PLC                                                9,816     (3,389) 
 Non-Controlling Interest                                             (592)       (510) 
                                                                 ==========  ========== 
 Other comprehensive income for the 
  year, net of tax                                                        -         677 
  PARENT COMPANY                                                      9,224     (3,222) 
                                                                 ==========  ========== 
 Earnings per share for the year                    5     Basic       59.7p    (20.7) p 
                                                    5   Diluted       59.7p    (20.7) p 
 Earnings per share for the year (continuing 
  operations)                                       5     Basic       50.9p       13.2p 
                                                    5   Diluted       50.9p       13.0p 

Consolidated Statement of Financial Position (Unaudited)

As at 31 December 2022

                                                    2022          2021 
                                                GBP '000      GBP '000 
 Non-current assets 
 Property, plant and equipment                       117           209 
 Intangible assets                                 3,507         3,891 
 Right of use assets                                 324           851 
 Deferred Tax asset                                  162           173 
 Equity investments in associate                  12,578             - 
 Total non-current assets                         16,688         5,124 
 Current assets 
 Inventories                                       9,211         7,682 
 Trade and other receivables                      56,882        35,928 
 Restricted deposit accounts                       8,462         2,414 
 Cash and cash equivalents                        24,487         6,699 
 Total current assets                             99,042        52,723 
                                              ----------  ------------ 
 Held for sale assets                                  -        64,798 
                                              ----------  ------------ 
 TOTAL ASSETS                                    115,730       122,645 
                                              ----------  ------------ 
 Capital and reserves 
 Called up share capital                             844           840 
 Share premium account                            12,915        12,790 
 Employee Benefit Trust shares                       (7)         (444) 
 Retained earnings                                25,231         4,774 
 Revaluation surplus                                   -        11,693 
 Total equity attributable to members of 
  the parent company                              38,983        29,653 
 Non-Controlling Interests                             -         (325) 
                                              ----------  ------------ 
 Total equity                                     38,983        29,328 
 Non-current liabilities 
 Borrowings                                        4,927         5,066 
 Total non-current liabilities                     4,927         5,066 
 Current liabilities 
 Borrowings                                          294         2,118 
 Trade and other payables                         71,526        40,911 
 Total current liabilities                        71,820        43,029 
                                              ----------  ------------ 
 Liabilities associated with held for sale 
  assets                                               -        45,223 
                                              ----------  ------------ 
 Total liabilities                                76,747        93,318 
                                              ----------  ------------ 
 TOTAL EQUITY AND LIABILITIES                    115,730       122,646 
                                              ----------  ------------ 

Consolidated Statement of Changes in Equity (Unaudited)

For the year ended 31 December 2022

                       Share     Share         EBT   Retained   Revaluation             Total   Non-controlling     Total 
                     capital   premium      shares   earnings       surplus            equity         interests 
                                                                                   to members 
                                                                                       of the 
                     GBP'000   GBP'000     GBP'000    GBP'000       GBP'000           GBP'000           GBP'000   GBP'000 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
 At 1 January 
  2021                   833    12,790       (502)      6,854        12,472            32,447               185    32,632 
 (Loss) for the 
  year                     -         -           -    (3,389)             -           (3,389)             (510)   (3,899) 
  income for 
  year                     -         -           -        677             -               677                 -       677 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
  income for 
  year                     -         -           -    (2,712)             -           (2,712)             (510)   (3,222) 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
 Exercise of 
  options                  7                    58       (40)             -                25                 -        25 
 Dividends paid            -         -           -      (108)             -             (108)                 -     (108) 
 Transfer of 
  to retained 
  earnings                 -         -           -        779         (779)                 -                 -         - 
  by and 
  to owners of 
  the parent, 
  in equity                7         -          58        631         (779)              (83)                 -      (83) 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
 At 31 December 
  2021                   840    12,790       (444)      4,773        11,693            29,652             (325)    29,327 
                 ===========  ========  ==========  =========  ============  ================  ================  ======== 
 At 1 January 
  2022                   840    12,790       (444)      4,773        11,693            29,652             (325)    29,327 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
 Profit for the 
  year                     -         -           -      9,816             -             9,816             (592)     9,224 
 Other                     -         -           -          -             -                 -                 -      - 
 income for the 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
  income for 
  year                     -         -           -      9,816             -             9,816             (592)     9,224 
 Share based 
  payments                 -         -           -        198             -               198                 -       198 
 Dividend Paid        -              -           -      (297)             -             (297)                 -    (297) 
  issued              3            125           -      (128)             -                 -                 -      - 
  arising from 
  loss of 
  of subsidiary            -         -           -      (592)             -             (592)               917       325 
 Exercise of 
  options                  1         -         437      (232)             -               206                 -       206 
 Transfer of 
  to retained 
  earnings                 -         -           -     11,693      (11,693)                 -                 -         - 
  by and 
  to owners of 
  the parent, 
  in equity                4       125         437     10,642      (11,693)        (485)                    917       432 
                 -----------  --------  ----------  ---------  ------------  ----------------  ----------------  -------- 
 At 31 December 
  2022                   844    12,915         (7)     25,231             -            38,983                 -    38,983 
                 ===========  ========  ==========  =========  ============  ================  ================  ======== 

Consolidated Statement of Cash Flows (Unaudited)

For the year ended 31 December 2022

                                                               2022       2021 
                                                            GBP'000    GBP'000 
 Cash flows from operating activities 
 Cash generated from operations                               5,763      3,900 
 Finance income                                                  17        620 
 Finance cost                                                 (351)    (2,902) 
 Income tax received                                              -          - 
                                                         ----------  --------- 
 Net cash flows generated from operating activities           5,429      1,618 
                                                         ----------  --------- 
 Cash flows from investing activities 
 Purchase of property, plant and equipment                      (9)      (248) 
 Purchase of intangible fixed assets                          (125)      (760) 
 Transfers (to)/from restricted deposit accounts            (1,515)      1,971 
 Acquisition of subsidiary, net of cash held in             (1,725)          - 
  the subsidiary 
 Investment in associate                                    (2,794)          - 
 Proceeds from disposal of held for sale assets              20,351          - 
 Net cash flows used in investing activities                 14,183        963 
                                                         ----------  --------- 
 Cash flows from financing activities 
 Payments of dividends                                        (297)      (108) 
 Proceeds from borrowings                                         -      6,786 
 Repayment of borrowings                                    (1,382)   (18,076) 
 Capital repayments of leases                                 (582)      (616) 
 Proceeds from exercise of share options                        437         26 
                                                         ----------  --------- 
 Net cash flows used in financing activities                (1,824)   (11,988) 
                                                         ----------  --------- 
 Net increase/(decrease) in cash and cash equivalents        17,788    (9,408) 
 Cash and cash equivalents at beginning of year               6,699     18,282 
                                                         ----------  --------- 
 Cash and cash equivalents at end of year 
  Represented by:                                            24,487      8,874 
 Cash and cash equivalents for discontinued operations            -      2,175 
 Cash and cash equivalents for continuing operations         24,487      6,699 
                                                         ----------  --------- 

Notes to the Financial Information (Unaudited)

For the year ended 31 December 2022

1. Basis of Preparation

Good Energy Group PLC is an AIM listed company, incorporated in England and Wales and domiciled in the United Kingdom, under the Companies Act 2006.

The principal activity of Good Energy Group PLC is that of a holding and management company to the Group. More detailed information on the Group's activities is set out in the Chairman's statement, the Chief Executive's review and the Finance Director's review.

The unaudited Preliminary Report has been prepared using consistent accounting policies with those of the previous financial year. It does not contain sufficient information to comply with the disclosure requirements of UK-adopted international accounting standards .

The Preliminary Report was approved by the Approvals Committee and the Audit Committee and adopted by the Board of Directors. The Preliminary Report does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006 and has not been audited.

On 24 November 2021, the Group publicly announced the decision of its Board of Directors to sell the Good Energy Holding Company No. 1 Limited group including its wholly owned subsidiaries ("GEGAN

group"). The sale of the GEGAN group was completed on 19 January 2022. At 31 December 2021 the GEGAN group was classified as a disposal group held for sale and as a discontinued operation. The business of GEGAN group represented the entirety of the Group's Electricity Generation operating segment until 24 November 2021. With GEGAN group being classified as discontinued operations, the Electricity Generation segment is no longer presented in the segment note.

On 8 August 2022, a subsidiary of the Group (Zap-Map Limited) completed a GBP9m Series A fundraise. This included a further GBP3.7m investment from Good Energy and a GBP5.3m investment from new strategic investor Fleetcor UK Acquisition Limited ("Fleetcor"), the leading global fuel card and payment provider with a US$17 billion market cap. From the date of the fundraise Good Energy no longer includes Zap-Map as a subsidiary within the financial statements. The results of Zap-Map are now recognised in line with accounting for associates. A gain of GBP6.9m has been recognised on disposal of the former subsidiary. Good Energy Group PLC remains a significant investor in Zap-Map.

On 2 December 2022, the Group acquired the entire share capital of Igloo Works Limited ("Igloo"), an established UK based heat pump installation business (the "Acquisition"), for an initial consideration of GBP1.75 million. The results of Igloo Works are consolidated within the financial statements.

The accounting policies adopted, other than as documented above, are consistent with those of the annual financial statements for the year ended 31 December 2022 , as described in those financial statements.

The Preliminary Report is presented in pounds sterling because that is the currency of the primary economic environment in which the Group operates.

The Preliminary Report will be announced to all shareholders on the London Stock Exchange and published on the Group's website on 28 March 2023 . Copies will be available to members of the public upon application to the Company Secretary at Good Energy, Monkton Park Offices, Monkton Park, Chippenham, Wiltshire, United Kingdom, SN15 1GH.

2. Segmental Analysis

The chief operating decision-maker has been identified as the Board of Directors (the 'Board'). The Board reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The Board considers the business from a business class perspective, with each of the main trading subsidiaries accounting for each of the business classes. The main segments are:

   --    Supply companies (including electricity supply, FiT administration and gas supply); 
   --    Energy as a service (including Igloo Works, Zap-Map and nextgreencar.com) 
   --    Holding companies, being the activity of Good Energy Group PLC. 

The Board assesses the performance of the operating segments based primarily on summary financial information, extracts of which are reproduced below. An analysis of profit and loss, assets and liabilities and additions to non-current assets, by class of business, with a reconciliation of segmental analysis to reported results follows:

Segmental analysis: 31 December 2022 - Unaudited

                   Electricity              FIT        Gas       Total    Energy                    Holding        Total 
                        Supply   Administration     Supply      Supply      as a   Companies/Consoli-dation            - 
                                                             Companies   service                Adjustments   Continuing 
                       GBP'000          GBP'000    GBP'000     GBP'000   GBP'000                    GBP'000      GBP'000 
 Revenue from 
  customers            205,942            5,588     36,500     248,030       652                          -      248,682 
 Total revenue         205,942            5,588     36,500     248,030       652                          -      248,682 
                  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
 Cost of sales       (190,391)            (688)   (27,516)   (218,595)     (196)                         23    (218,768) 
 Gross Profit           15,551            4,900      8,984      29,435       456                         23       29,914 
  expenses                                                    (20,685)   (2,041)                    (4,273)     (26,999) 
 Net other 
  (costs)                                                        (156)       170                         52           66 
  & amortisation                                               (1,806)         -                          -      (1,806) 
                  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
  profit/(loss)                                                  6,788   (1,415)                    (4,198)        1,175 
 Net finance 
  costs                                                           (96)       (3)                        381          282 
 Gain arising 
  on loss of 
  control of 
  subsidiary                                                         -                                6,884        6,884 
 Share of loss 
  of associate                                                       -         -                      (712)        (712) 
                  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
  before tax                                                     6,692   (1,418)                      2,355        7,629 
 assets & 
 Segment assets                                                 67,636        56                     48,041      115,733 
  liabilities                                                 (59,544)     (279)                   (16,924)     (76,747) 
----------------  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
 Net asset/ 
  (liabilities)                                                  8,092     (223)                     31,117       38,936 
----------------  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
  to non-current 
  assets                                                             -         -                      1,929        1,929 

All turnover arose within the United Kingdom.

Segmental analysis: 31 December 2021

                   Electricity              FIT        Gas       Total    Energy                    Holding        Total 
                        Supply   Admin-isration     Supply      Supply      as a   Companies/Consoli-dation            - 
                                                             Companies   service                Adjustments   Continuing 
                       GBP'000          GBP'000    GBP'000     GBP'000   GBP'000                    GBP'000      GBP'000 
 Revenue from 
  customers            116,521            5,323     23,491     145,335       643                          1      145,979 
 FiT/ROC subsidy 
  revenue                   66                -          -          66         -                          -           66 
 Total revenue         116,587            5,323     23,491     145,401       643                          1      146,045 
                  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
 Cost of sales       (103,339)            (647)   (14,851)   (118,837)     (154)                       (28)    (119,019) 
 Gross Profit           13,248            4,676      8,640      26,564       489                       (27)       27,026 
  expenses                                                    (17,849)   (1,448)                    (3,612)     (22,103) 
  & amortisation                                               (1,578)     (134)                        (1)      (1,713) 
                  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
  profit/(loss)                                                  7,137   (1,093)                    (3,640)        3,210 
 Net finance 
  costs                                                           (67)       (2)                      (501)        (570) 
 Share of loss                                                       -         -                          -            - 
  of associate 
                  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
  before tax                                                     7,070   (1,095)                    (4,141)        1,834 
 assets & 
 Segment assets                                                 63,415       633                    (6,201)       57,847 
  liabilities                                                 (47,826)     1,549                    (1,281)       48,094 
----------------  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
 Net asset/ 
  (liabilities)                                                 15,589     (916)                    (4,920)        9,753 
----------------  ------------  ---------------  ---------  ----------  --------  -------------------------  ----------- 
  to non-current 
  assets                                                         1,746         3                          -        1,749 

All turnover arose within the United Kingdom.

4. Finance Income and Finance Costs

 Finance income:                                   2022      2021 
                                                GBP'000   GBP'000 
 Bank and other interest receivables                 17        14 
 Preference share dividends                         187         - 
 Discount on purchase of preference shares          429         - 
                                                    633        14 
                                             ==========  ======== 
 Finance costs:                       2022     2021 
                                    GBP000   GBP000 
 On bank loans and overdrafts            -        3 
 On corporate bond                     237      485 
 Other interest payable                 70       27 
 Lease interest payable                 44       69 
                                       351      584 
                                ==========  ======= 

5. Earnings / (loss) per Ordinary Share


Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares during the year, after excluding 79,924 (2021: 250,880) shares held by Clarke Willmott Trust Corporation Limited in trust for the Good Energy Group Employee Benefit Trust.

                                                              2022      2021 
 Profit/ (Loss) attributable to owners of the Company 
  (GBP'000)                                                  9,816   (3,389) 
 Basic weighted average number of ordinary shares 
  (000's)                                                   16,440    16,399 
                                                        ----------  -------- 
 Basic earnings per share                                    59.7p   (20.7p) 
 Continuing operations                                          2022     2021 
 Profit attributable to owners of the Company (GBP'000)        8,366    2,157 
 Basic weighted average number of ordinary shares 
  (000's)                                                     16,440   16,399 
                                                          ----------  ------- 
 Basic earnings per share                                      50.9p    13.2p 


Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to assume conversion of all potentially dilutive ordinary shares. Potentially dilutive ordinary shares arise from awards made under the Group's share-based incentive plans.

Where the vesting of these awards is contingent on satisfying a service or performance condition, the number of potentially dilutive ordinary shares is calculated based on the status of the condition at the end of the period.

Potentially dilutive ordinary shares are dilutive only when the average market price of the Company's ordinary shares during the period exceeds their exercise price (options) or issue price (other awards). The greater any such excess, the greater the dilutive effect.

The average market price of the Company's ordinary shares during the year was 242p (2021: 269p).

5. Earnings per Ordinary Share (continued)

The dilutive effect of share-based incentives was 10,497 shares (2021: 145,752 shares). The dilutive effect of share-based incentives for continuing operations was 10,497 shares (2021: 145,752 shares).

                                                              2022      2021 
 Profit/ (Loss) attributable to owners of the Company 
  (GBP'000)                                                  9,816   (3,389) 
 Basic weighted average number of ordinary shares 
  (000's)                                                   16,451    16,544 
                                                        ----------  -------- 
 Diluted earnings per share                                  59.7p   (20.7p) 
 Diluted (continuing operations)                                2022     2021 
 Profit attributable to owners of the Company (GBP'000)        8,366    2,157 
 Weighted average number of diluted ordinary shares 
  (000's)                                                     16,451   16,544 
                                                          ----------  ------- 
 Diluted earnings per share                                    50.9p    13.0p 

6. Borrowings

                                   2022      2021 
                                GBP'000   GBP'000 
 Current                      Unaudited 
 Bank and other borrowings            -     1,007 
 Bond                                10       557 
 Lease liabilities                  284       555 
                             ----------  -------- 
 Total                              294     2,119 
                             ----------  -------- 
                           2022      2021 
                        GBP'000   GBP'000 
 Bond                     4,921     4,749 
 Lease liabilities            6       317 
                     ----------  -------- 
 Total                    4,927     5,066 
                     ----------  -------- 

The current portion of the bond repayment represents the interest accrued and the amount of principal repayments requested prior to the end of the year. The latest redemption request deadline was in December 2022, for repayment of the remaining bond in June 2023.

The bank and other borrowings are made of interest accrued and amount of principal repayments under a Revolving Credit Facility.

7. Cash Generated from Operations

For the year ended 31 December 2022

                                                                     2022       2022 
                                                                  GBP'000    GBP'000 
 Profit before tax from continuing operations                       7,629      1,834 
 Loss before tax from discontinued operations                         858    (6,752) 
                                                               ----------  --------- 
 Profit/ (Loss) before tax                                          8,487    (4,918) 
 Adjustments for: 
 Depreciation                                                         624      4,014 
 Amortisation                                                         951      1,133 
 Revaluation of generation site                                         -      1,324 
 Loss on asset disposals & writedowns                                   -        182 
 Share options exercised                                            (232)          - 
 Gain arising on loss of control of subsidiary                    (6,884)          - 
 Gain on sale of assets held for sale                               (776)          - 
 Share based payments                                                 198          - 
 Share of loss of associates                                          712          - 
 Other Finance (income)/costs - net                                 (281)      2,257 
 Changes in working capital (excluding the effects 
  of acquisition and exchange differences on consolidation): 
 Inventories                                                      (1,509)      5,582 
 Trade and other receivables                                     (20,642)   (10,098) 
 Trade and other payables                                          25,115      4,424 
                                                               ----------  --------- 
 Cash generated from operations                                     5,763      3,900 
                                                               ==========  ========= 

9. Subsequent Events

A final dividend of 2.0p per share (2021: 1.80p) was proposed on 23 March 2023, subject to shareholder approval at the Group's AGM.

[i] Based on growth market modelling carried out by Good Energy using market research conducted by Hall & Partners in 2022

[ii] Ofgem wholesale market indicators https://www.ofgem.gov.uk/energy-data-and-research/data-portal/wholesale-market-indicators

[iii] MCS data for 2022 https://solarenergyuk.org/news/rooftop-solar-power-installations-double-in-a-year/

[iv] MCS data for 2022 https://solarenergyuk.org/news/rooftop-solar-power-installations-double-in-a-year/

[v] Energy Security Bill factsheet: Low carbon heat scheme https://www.gov.uk/government/publications/energy-security-bill-factsheets/energy-security-bill-factsheet-low-carbon-heat-scheme

[vi] SMMT statistics, outlined by Zap-Map: https://www.zap-map.com/ev-market-statistics/

[vii] 4 million customers on prepayment meter reported by Ofgem in 2020, with increases reported since https://www.ofgem.gov.uk/publications/more-help-prepayment-customers-and-those-struggling-bills

[viii] Based on Acuity Knowledge Partners research conducted for Good Energy combined with government targets - 9.9% CAGR based on current volume installed today, vs requirement by 2030

[ix] MCS data, reported by Current+ https://www.current-news.co.uk/mcs-announces-2022-as-record-year-for-certified-heat-pump-installations/

[x] Calculated using MCS data

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(END) Dow Jones Newswires

March 28, 2023 02:00 ET (06:00 GMT)

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