TIDMGOOD
RNS Number : 0052R
Good Energy Group PLC
25 June 2020
Good Energy Group PLC
Strategic investment in Zap-Map
Good Energy Group PLC, the 100% renewable electricity supplier
and innovative energy services provider ("Good Energy" or "the
Company"), announces that it has exercised its right to increase
its equity stake in Zap-Map's parent company, Next Green Car Ltd
("NGCL"). Following the transaction, Good Energy will have a 50.1%
majority stake in NGCL.
As per the announcement dated 5 March 2019, there is no
additional cash requirement as the transaction is being financed by
the exercise of a convertible loan.
Compelling growth
Zap-Map is the go-to app for the UK's fast growing 300,000
electric vehicle (EV) drivers - planning routes, identifying charge
points, checking their availability, and sharing power. With more
than 250,000 app downloads and 100,000 registered users, Zap-Map is
used by a significant amount of the fully electric EV market.
Both the number of EV drivers in the Zap-Map community and the
number of charge points in its network have been increasing
rapidly, which enhances the breadth and quality of the available
data. By actively logging the status and availability of the public
charging network, Zap-Map provides crucial insights on individual
users charging experience and requirements.
Background and strategic rationale
The Good Energy Board believes that the increased investment in
Zap-Map has a compelling strategic and commercial rationale.
Zap-Map holds a market leading position in the UK, with both the
large majority of EV drivers and network operators on their
platform.
Accelerating the use of EVs is crucial to helping achieve a
zero-carbon Britain, and a key part of government strategy. The
investment in Zap-Map aligns Good Energy with a platform for the
energy sharing economy which is at the forefront of EV market
growth. Technology and digitalisation are core to Good Energy's
future growth plans. The investment in the UK's leading EV mapping
platform is accelerating the company's shift into the EV market and
will allow Good Energy to leverage a number of existing and future
products and services for customers of both Good Energy and
Zap-Map.
There are planned launches for a number of innovative products
and services in 2020, including:
-- An interoperable payment solution for EV drivers and charge
point operators, providing EV drivers with simple, single point of
access to a range of public charging networks through the Zap-Map
app;
-- A data insights platform, providing unique Insights drawn
from a rich database and long-standing experience combined into a
server-based platform; and
-- Significantly increased in-car functionality for EV drivers
through partnerships with auto manufacturers, critical to the user
experience and encouraging adoption.
Good Energy will continue to work closely with Zap - Map to
ensure the delivery of these innovative products and services,
including senior advisory support to accelerate the implementation
of the strategy. Zap-Map will continue to benefit from the scale
and resources supported by Good Energy, whilst leveraging the
expertise within Good Energy on innovative technology
solutions.
Transaction
As per the announcement dated 5 March 2019, the transaction was
structured so that the initial 12.9% minority equity investment
could increase to 50.1% through the exercise of a convertible loan.
Good Energy has taken up its right to exercise the convertible
loan, resulting in a majority stake.
Total initial consideration for the 50.1% investment via the
conversion is GBP1.08m. This rises to a maximum of GBP1.80m
including deferred consideration, which is aligned with product and
financial milestones through to December 2021. Details of the
history of the transaction are shown below:
-- An initial acquisition of 12.9% of NGCL for a cash
consideration of GBP0.28m in February 2019.
-- A further investment of GBP0.80m in NGCL by way of secured
convertible loan notes, comprising an initial tranche of GBP0.4m
and two further tranches of GBP0.2m, completed in March 2020,
funded from Good Energy's cash reserves.
-- Deferred consideration payable on satisfaction of product
milestones in August 2020 and stretching financial milestone
targets in December 2021. The maximum possible deferred
consideration is GBP0.72m.
-- Good Energy has taken up its right to exercise the
convertible loan, resulting in a majority equity stake.
-- The consideration has been funded from Good Energy cash reserves.
-- Unaudited accounts for the 12 months ended 31 December 2019
record revenues of GBP0.35m and an operational loss of GBP0.33m and
net liabilities of GBP0.33m.
Additional details
As part of the transaction Good Energy will appoint two new
members to Zap-Map's Board - Tim Jones and Charlie Parry, who will
sit alongside the current Board consisting of Juliet Davenport and
the Zap-Map founders Melanie Shufflebotham and Ben Lane.
Tim Jones, a Non-Executive Director at Good Energy, is an
experienced Technology Executive who brings over 20 years of
digital innovation, execution and operation and has been CIO of
Moneysupermarket Group PLC since 2013. Tim has a background in
digital start-ups, including as co-founder of automotive retail
site, AutoTrader UK.
Charlie Parry is Head of Investor Relations & Company
Secretarial at Good Energy plc and has served as an observer to the
Zap-Map Board as part of the initial investment in 2019. Charlie
has 12 years experience across investor relations, corporate
finance & banking having previously held roles at Domino's
Pizza Group, Smiths News, Barclays Capital and Deloitte, and is a
chartered accountant.
Juliet Davenport, Founder and Chief Executive Officer of Good
Energy, said:
"The opportunity for Zap-Map to play an important role in the
green economic recovery is obvious. With electric vehicles playing
a key role in the future government strategy, and commitments to
phase out petrol and diesel new vehicle by 2030, Zap-Map is
perfectly placed to take advantage of future growth in the EV
marketplace. For Good Energy the strategic investment brings
synergies across our new propositions including One Point, our
business EV proposition and One Home our strategic development for
householders. We are really excited take the next step in
supporting Zap-Map on its strategic journey."
Melanie Shufflebotham, co-founder of Zap-Map, said:
"We are delighted to continue our relationship with Good Energy,
particularly as we look to launch of number of innovative products.
Despite the battery electric vehicle market taking record market
share, we remain at a critical moment for the electric vehicle
market, as Government and businesses look to provide the products
and services for drivers to encourage adoption of EVs. This
investment ensures that Zap-Map will remain at the forefront of the
EV market delivering products which will make charging simple for
both drivers and businesses."
Enquiries:
Good Energy Group PLC Via Walbrook PR
Juliet Davenport, Chief Executive
Charlie Parry, Investor Relations
Luke Bigwood, Communications
Investec Bank plc (Nominated Adviser) Tel: +44 (0) 20 7597 5970
Jeremy Ellis
Sara Hale
Walbrook (Financial PR) goodenergy@walbrookpr.com
Nick Rome Tel: +44 (0) 20 7933 8783
Tom Cooper
Notes to editors:
About Good Energy www.goodenergy.co.uk
Good Energy is a generator and supplier of 100% renewable power
and an innovator in energy services. It currently owns two wind
farms, six solar farms and sources electricity from a community of
1,500 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 support UK households and businesses
generate, store and share clean power.
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END
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