Promising second half

Cautious optimism for FY23

Full year results and additional debt finance

EAAS has announced its full year results (to June ’22) alongside news that it has secured further debt finance of £2.5m in order to support the growth of the business and strengthen the Group’s balance sheet. Last Friday’s update confirmed a strong start to the new year and reiterated expectations of material year on year revenue and EBITDA growth for FY23. We expect to update our valuation analysis following the upcoming AGM (20th Dec).

Launch of eSolar strengthens offering

eEnergy has announced the launch of eSolar, its in-house Solar PV System offering, helping organisations to rapidly deploy on-site energy generation, on a capital-free basis. The economics of the offering are compelling, with the implied costs of on-site solar energy now at more than more than 50% cheaper than the equivalent cost of buying from the grid after a greater than 300% increase in grid energy costs over the past year. The Group has seen strong appetite for the eSolar offering from new

Unleashing Net Zero

Record Q4 brings FY22 to positive conclusion

eEnergy has confirmed a very strong conclusion to FY22E, delivering a record Q4 performance (£2.0m EBITDA) to hit our full year forecast (£3.0m EBITDA). This reflects a busy period for Energy Efficiency and recent momentum has carried into the new year, supporting FY23 expectations. The Group will continue to invest in growth initiatives, particularly MY ZeERO and recently launched Solar and EV Charging solutions; we reflect this in our cashflow forecasts, supporting continued growth into FY24.

Trading update and Board change

eEnergy has confirmed a strong performance in Q3 in terms of new customer wins and contract signings, with continuing momentum into Q4. However, as a result of extended installation times and a longer sales cycle, a number of recently signed contracts are unlikely to be recognised in the current financial year. Whilst underlying progress is positive, this triggers a 13% reduction to our FY22 revenue forecast (EPS -37%). We prudently trim FY23 revenue by 6%, noting a more subdued recovery in Irel

Additional project funding agreement with SUSI

eEnergy has entered into a new €10m project funding facility with SUSI Partners AG. This extends the existing relationship with SUSI to include the UK market (previously Ireland only) and fund customers’ projects across metering, EV charging, solar and lighting. The past year has been a period of successful strategic execution for eEnergy, whilst navigating market volatility. Whilst we make no changes to forecasts this morning, this is clearly another positive step for the Group, which should su

EV charging extends UK education sector offering

eEnergy has announced a new agreement with EO Charging to create the UK’s largest public sector charging network. eEnergy’s new “eCharge” brand has the potential to install at least 50,000 EV chargers across the UK education sector (and wider public sector) by 2030, adding another leg to its existing energy efficiency services offering. Although we make no changes to forecasts at this stage, we consider this another attractive medium term growth driver, given the clear cross selling opportunity

Delivering on strategy through market volatility

eEnergy delivered another period of strong progress in H1’22, completing the acquisition of UtilityTeam to add scale to its Energy Management business, whilst launching the My ZeERO metering and data analytics business and completing its first solar project. Headline financials were pre-announced in January’s trading update (revenue of £9.6m, EBITDA £0.8m) and the focus now is on the outlook for H2 in the context of an extremely volatile energy market environment. Whilst this inevitably creates

Strong revenue growth, acquisitions performing well

eEnergy’s H1 update confirms a period of very strong growth, particularly within Energy Management, which is trading ahead of plan. The two acquisitions that formed this division are both performing well and Beond in particular has exceeded pre-acquisition expectations. Energy Efficiency, meanwhile, maintained its H2’21 revenue run rate and has started the new calendar year with a record pipeline. Group revenue forecasts are unchanged as a £1m uplift to Energy Management offsets a prudent £1m re

Trading in line, key role to play in Net Zero transition

eEnergy has released a very robust AGM update, reiterating full year expectations and confirming acquisition integration is well on track. After a period of share price weakness (with the shares now trading on <10x FY23 P/E), we expect the update to be well received by the market, which may have been pre-occupied with recent energy price volatility. We remain of the view that high energy prices only serve to increase the opportunity for eEnergy to help its customers in the transition to Net Zero

Increased ownership of eEnergy Insights (MY ZeERO)

eEnergy has increased its ownership of eEnergy Insights Ltd (EIL) from 37.5% to 51%. EIL is the entity holding the Group’s MY ZeERO smart metering and analytics platform, which we consider an important differentiator for the Group. EIL has completed the development of its next generation of intelligent smart meters, which are now ready for commercial launch. eEnergy has placed an order for a number of these meters, which are expected to be rolled out in the coming months. Management is said to b

Transformational year, outlook reiterated

eEnergy’s FY’21 results confirm a transformational year. Organic revenue growth was 75% and four acquisitions have now been secured, including last month’s UtilityTeam deal. There are no surprises in the numbers and the outlook statement reiterates current year expectations. Energy market volatility increases the imperative for businesses to reduce consumption, eliminate waste and tighten risk management. This should present opportunities for eEnergy as it helps its clients navigate market uncer

Invinity Energy Systems - New Sale Could Build Familiarity

A sale of four VS3 Invinity flow batteries shows continued positive momentum for the company. This deal goes further as we see it building familiarity for the company’s storage technology with key members of the workforce in the North American electricity industry.

LIBERUM: Yü Group* - Yet more upgrades

Initial Equity Trading Comments - 15 May 2023

Invinity Energy Systems - Further US Sale

A further sale in the USA shows that Invinity is seeing growing momentum in the country. With the Inflation Reduction Act now creating storage specific tax credits for the coming decade while the Bipartisan Infrastructure Law offers significant incremental support for long duration energy storage, we see this market as a key opportunity for the company.

LIBERUM: Eneraqua Technologies* - Initiation - Saving money... and the planet

RSL budget pressures impact margin expectations

FY23 results confirm strong growth, delivering adj. PBT of £10.1m (SCMe: £9.8m, FY22: £5.6m). Investors are likely to focus on the outlook however, where we materially reduce our earnings forecasts. Registered social landlord clients are reacting to significant budget pressures, with high levels of cost inflation exceeding government rent caps. In response, clients have rephased project schedules, prioritising lower cost per unit, typically lower margin, projects as they right-size capital budge

ITM Power (ITM LN) - Trading update

ITM has released a trading update, refining guidance for the full year to April 2023, and reporting progress on the company’s ongoing project to refocus its business on manufacturing delivery and scale up

Morning Note – 11 May 2023

Hybridan Research: Sector Review: Critical minerals for UK - mining and battery recycling: 09-05-2023

Virgin mining: Energy security and decarbonisation are driving the race in the sourcing of critical minerals from the natural world. This has contributed to the revival of exploration activities in the US, Europe and to a lesser degree the UK. For example, the global identified lithium resources increased from 40m tonnes in 2015 (the Paris Agreement year) to 97m tonnes in 2023, at a CAGR of 12%, according to the U.S. Geological Survey data. For example, there was no identified lithium resources

LIBERUM: Wincanton - FY results in line, exit from closed book transport

Hybridan Small Cap Feast - 23 Feb 23

23rd May 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

LIBERUM: ATOME Energy * - Significant expansion of Villeta, BH joins the register

Webinar: “The Impact of US IRA on Clean Energy Companies”

The US Inflation Reduction Act will have sweeping impacts on the energy industry and its participants. We’ve invited four companies from the Active Net Zero Universe to share how they see the industry evolving, helping investors identify the major risks and opportunities. Companies presenting are EQTEC (EQT LN), Foresight Group (FSG LN), Invinity Energy Systems (IES LN) and Velocys (VLS LN). The Active Net Zero Universe uses the same selection methodology as the Solactive Active Net Zero Global

Powerhouse Energy - Northern Ireland Site Identified

Powerhouse has today announced an agreement with Noage Energy to establish a project in Northern Ireland using Powerhouse technology to convert waste to energy. Noage have identified a potential site and work is due to commence to negotiate access and to obtain the necessary permits for construction and operations. This follows the joint venture with Hydrogen Utopia International to develop a waste to hydrogen project in the Republic of Ireland announced earlier this year and displays a growing

In the Flow

Industry flows - bond funds remain preferred over equities Risk appetite for equity funds remained subdued with last week seeing $4bn net outflows (negative in 8 of the last 9 weeks). Flows worsened sequentially for Asia/EM categories, but improved for US and European equities. Bond funds saw inflows for a 10th straight week (c.$8bn) with broad based inflows across US government, IG and HY funds. Listed asset managers flows - inflows into ETFs, outflows from mutual funds ETFs net inflows contin