Good Energy Group PLC Operational Update (4175S)
December 21 2016 - 1:00AM
UK Regulatory
TIDMGOOD
RNS Number : 4175S
Good Energy Group PLC
21 December 2016
Good Energy Group PLC
("Good Energy" or the Company)
Operational Update
Good Energy Group PLC, which supplies and generates 100%
renewable electricity, carbon neutral gas and feed in tariff
administration services to over 239,000 UK homes and businesses, is
pleased to announce the following operational update.
Sale of operational 5MW solar site in Dorset
Following a competitive tender process the Board has agreed to
terms for the sale of its operational 5MW Oaklands solar farm to
Eneco UK Limited ("Eneco") for GBP5.78m as well as an option to
purchase power from the site. As part of the sale, Good Energy will
retain asset management services for the site.
Working with the Eversheds LLP legal team contracts have been
exchanged and the transaction is expected to complete on or around
3 January 2017. The total sale value will be paid in cash on
completion with the net profit from the sale expected to be in the
range of GBP340k to GBP390k. The profits resulting from the sale
will be recognised in Good Energy's results for the year ended 31
December 2017.
The sale of Oaklands evidences further delivery of Good Energy's
ongoing strategy to actively manage its generation portfolio to
realise maximum value through developing renewable assets and
securing access to long term power.
Funds from this sale will be used to support the construction of
further solar sites before the 31 March 2017 renewable obligation
certificate ("ROC") subsidy deadline.
Current Trading
Like all suppliers Good Energy has experienced exceptional
volatility in the short term power trading market from late October
to late November.
While the Company operates a prudent risk management process and
hedging policy to mitigate trading risk, this volatility has led to
more challenging trading over that period. Notwithstanding this,
the Board still expects the Company to meet the lower end of market
expectations, assuming the more favourable trading conditions
experienced to date in December continue until the end of the
month.
Juliet Davenport, OBE, Founder and CEO of Good Energy said:
"Good Energy developed, constructed and has been operating the
Oaklands site since January 2016, showcasing the capabilities of
our generation team.
The sale to Eneco gives us optionality over the power from
Oaklands and continues our strategy of selling sites and
reinvesting to develop renewable assets, helping the UK to become
more energy self-sufficient.
This is our first project with Eneco and we look forward to
working with them as we manage this great site.
While the short term trading conditions have been tough from
late October through to late November we have seen a return to more
normal trading conditions in December."
For enquiries:
Good Energy Group PLC +44 (0) 1249 766 795
Juliet Davenport, Chief Executive Officer
Denise Cockrem, Chief Financial Officer
Camarco (Media) +44 (0) 203 757 4980
Geoffrey Pelham-Lane
Georgia Edmonds
Arden Partners plc +44 (0) 121 423 8900
Steve Douglas
Patrick Caulfield
Investec Bank plc +44 (0) 207 597 4000
Jeremy Ellis
Sara Hale
Notes to editors
-- Good Energy is a fast growing 100% renewable electricity
supply and generation company, offering award-winning customer
service.
-- An AIM-listed PLC, and founder member of the Social Stock
Exchange, its mission is to support change in the energy market,
address climate change and boost energy security.
-- The company has consistently performed well in the annual
Which? energy company customer satisfaction survey, winning first
or second place in each of the last four years.
-- It now has more than 72,250 renewable electricity customers
and 43,000 carbon neutral gas customers. It also provides Feed-in
Tariff administration services to more than 124,500 sites
-- Good Energy is the owner of Delabole Wind Farm, the UK's
first commercial wind farm and owns and operates Hampole Wind Farm,
near Doncaster. The company also owns and operates seven solar
farms.
-- Good Energy received a net promotor score of 46 from
electricity and gas customers and 50 from FiT customers. This
compares to the average Big Six rating of -29. A net promoter score
is an index ranging from -100 to 100 that measures the willingness
of customers to recommend a company's products or services to
others. It is used as a proxy for gauging the customers overall
satisfaction with a company's product or service and the customer's
loyalty to the brand.
-- Good Energy has won a number of awards including Renewable
Energy Association Company of the Year Award 2016, Business Green
Company of the Year 2015, and, was named Social Impact Company of
the Year at the 2014 and 2015 Small Cap awards.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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