5 September 2016 – interim results
The group has announced its interim results covering the six months to 30 June and these have seen revenue more than double during the period to £41.8m (2015: £20.5m) with significant growth being seen in the energy business with customer numbers increasing to 220,000 during the period from 100,000 at the start of the year. This growth has continued after the period end so that the business could boast 255,000 customers on 1 September. On an annualised basis this should generate £127m of revenues. The rapid growth in the energy business is clearly impressive although it remains loss making with profits not expected mush before the end of 2017. The group’s innovative boiler business continues to make progress but it is slow and much will depend on the ruling by the UK Government on the feed in tariff with a decision likely this winter. Net cash at the end of June was £9.2m, down from £16.7m at the start of the year as the group continues to invest in expanding the business. Further cash outflows seem likely in the second half although next year should see the group become cash generative. Long term prospects for the business remain potentially very promising and we therefore feel we can justify a recommendation of SPECULATIVE BUY.