Eenergy Share Discussion Threads

[batham1] 15/4/2020 14:09

Thanks! And climbing further in the last two days

[hedgehog 100] 13/4/2020 15:43

And crucially, EAAS is also non-cyclical in nature.

Non-cyclical stocks in general tend to exhibit the following traits:
• More reliable & consistent earnings.
• Can be held for long term.
• More sought after.
• Higher ratings.

"There are other types of businesses that keep the dollars flowing in despite the economic weather. You need heat and light, or ai conditioning, don’t you? Well, your electric utility company or your natural gas company keeps churning out the power whether the economy is up or down.."


"Utility providers and companies from the health care industry are examples of firms that are seen as particularly defensive."

[hedgehog 100] 13/4/2020 14:49

EAAS's revenue, as well as growing strongly, is very recurring in nature.


"Recurring Revenue
REVIEWED BY DANIEL LIBERTO Updated Apr 25, 2019

What is Recurring Revenue?
Recurring revenue is the portion of a company's revenue that is expected to continue in the future. Unlike one-off sales, these revenues are predictable, stable and can be counted on to occur at regular intervals going forward with a relatively high degree of certainty. ...

Many market pundits consider recurring revenue to be a highly desirable quality. They make a company more stable and predictable, both operationally and financially, lowering the risk that business will take a drastic turn from one month to the next.

That stability usually comes at a cost. Investors are regularly willing to pay more for the earnings generated by companies with recurring revenues because their forecasts are deemed more reliable. ... "




Recurring revenues are also cheaper to generate after the first year, because the initial sales cost doesn't have to be repeated.

But their most important trait is that they largely keep on coming in, year after year.

So unlike one-off sales, which need to be matched annually just to stand still, recurring revenues create a base - and staircase - for revenues to grow upon year after year.

[hedgehog 100] 13/4/2020 14:23

EAAS seems to be one of the minority of businesses that is actively benefiting from the coronavirus lockdown, with this providing an excellent sales and installations opportunity:

06/04/2020 07:00 UKREG eEnergy Group PLC Trading and COVID-19 update

"... The high number of contracts reflects the success of the Group's sales operation, which has generated EUR12.5m of new proposals in the same period. The Company is currently seeing a strong sales cycle in the education sector, with 40% of proposals to UK schools being converted to signed contracts. The time taken to convert each proposal into a signed contract has been reduced by 25% to 35 days. eEnergy is actively engaged with over 150 school proposals. ...

While the tragic impact of the Coronavirus in the UK and Ireland cannot be underestimated, the Group's experience is that organisations are already planning for life after COVID-19. The decision by the UK and Irish Governments to close schools for the foreseeable future has led to a spike in interest in eLight's LaaS proposition. Many schools are looking to complete maintenance and upgrade projects, including switching to LED lighting, in what may be an extended period with either no or reduced numbers of pupils on site. ..."

[hedgehog 100] 08/4/2020 14:50

Batham,

Sometimes it takes a day or so for good news to be properly assilimated by the market.

But the EAAS share price did rise from 3.85p to 4p on Monday 6th. April, and it's up a further 0.25p so far today, to 4.25p.


06/04/2020 07:00 UKREG eEnergy Group PLC Trading and COVID-19 update

"eEnergy Group plc (AIM: EAAS), the leading "Energy Efficiency-as-a-Service" (EEaaS) business in the UK and Ireland, today issues its third-quarter trading update for the period from 1 January 2020 to 31 March 2020 and provides an update on the impact of COVID-19 on the Group.

Trading update

The Group, through its eLight subsidiary, provides "Light-as-a-Service" (LaaS) to businesses and schools to help them switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments.

From 1 January 2020 to 3 April 2020, eEnergy signed 48 new contracts which include 21 schools in the UK and Ireland. Combined, eEnergy expects to save these 21 schools over GBP360,000 in energy costs and 618 tonnes in carbon emissions each year. These new contracts include some of the UK's leading independent schools such as Marlborough College in Wiltshire and Wycliffe College in Gloucestershire. Other notable contracts in the UK are the Group's first project with a Multi-Academy Trust and with some state primary schools.

The high number of contracts reflects the success of the Group's sales operation, which has generated EUR12.5m of new proposals in the same period. The Company is currently seeing a strong sales cycle in the education sector, with 40% of proposals to UK schools being converted to signed contracts. The time taken to convert each proposal into a signed contract has been reduced by 25% to 35 days. eEnergy is actively engaged with over 150 school proposals.

Despite the spread of COVID-19, no signed projects have been cancelled, although some school installations have been delayed to the summer holidays.

COVID-19 update

The health and safety of eEnergy's employees and customers are of paramount importance. All 32 employees are working remotely, and the Group's installation partners are observing all social distancing precautions when it is appropriate to work.

While the tragic impact of the Coronavirus in the UK and Ireland cannot be underestimated, the Group's experience is that organisations are already planning for life after COVID-19. The decision by the UK and Irish Governments to close schools for the foreseeable future has led to a spike in interest in eLight's LaaS proposition. Many schools are looking to complete maintenance and upgrade projects, including switching to LED lighting, in what may be an extended period with either no or reduced numbers of pupils on site.

To help support businesses and schools, eEnergy is offering new LaaS clients a three-month payment rebate as an incentive to accelerate their transition to LED lighting. This incentive is being combined with a deep hygiene clean to reduce the risk of future COVID-19 infections.

The Board believes that the education sector represents a huge opportunity for eEnergy. As it stands, around 80% of schools have not transitioned to energy-efficient lighting. In Ireland, the sales strategy is being rebalanced away from the Commercial SME sector, which has been hit hardest by COVID-19, towards public sector schools in Ireland and Northern Ireland. The Board expects these will reopen for the Group to work with, before the Commercial SME sector.

Outlook

In each month in the quarter, the Group secured contracts worth approximately EUR1 million, which is 2.5 times that for the same period of the prior year and is in line with market expectations.

Based on the estimated pipeline, the Board anticipates maintaining the average level of contract order intake through to the end of the calendar year, despite the impact of COVID-19.

However, the impact of some installations being delayed until the Summer means that revenues will be generated later than expected. This will push back the Group's operating profit breakeven point to the second half of 2020. This shift will have a negative impact on revenues and earnings for the financial year ending 30 June 2020.

The Group has a strong balance sheet with cash of EUR1.4m as at 31 March 2020.

Harvey Sinclair, CEO, eEnergy Group plc, said: "eEnergy has had a successful start to life on AIM. We are pleased with the momentum we have achieved driven by a large number of contract wins. Like all businesses, we are working hard to meet the challenge presented by COVID-19. I am delighted with how our employees have adapted to what are difficult circumstances.

"With cashflow expected to become an even greater concern for organisations, there is a clear opportunity for us as we help schools and businesses reduce energy spend and free up cash. One potential outcome of the current situation may be the acceleration of the switch to LED lighting and other energy-efficient technologies. eEnergy is well placed to meet this demand."

-ends- ..."

[batham1] 06/4/2020 15:17

Thought that was a pretty good report given the circumstances. Surprised there hasn't been a more positive response.

[macc1] 06/4/2020 09:49

VIDEO UPDATE

CEO Harvey Sinclair talks through performance since listing, contracts wins, Covid-19 and Strategic Direction

[hedgehog 100] 21/3/2020 10:52

From the current mid price of just 3.35p, huge gains here are virtually inevitable in my opinion.

Long-term the broker thinks that revenue of £100M. is possible, which, with good profit margins and a good rating, could equate to a market cap. of £ hundreds of millions.
Compared to the current market cap. of just £4.39M.

So just £10K. invested now could potentially be worth a cool £1M. by the end of this decade.

[hedgehog 100] 19/3/2020 17:16

LSE % Gainers Top Lists
EPIC Name %
ELM Elementis +128%
ARDN Arden Partners +100%


Some more big rebounds today from oversold positions: ELM and ARDN have both doubled or more today, after issuing reassuring updates.

And I would think that EAAS's interim results statement due this month should be more than just reassuring, judging from the company's recent interviews etc.: more like uplifting.

[hedgehog 100] 19/3/2020 16:49

The need for many businesses to save money has never been more pressing, so EAAS can play a useful role in helping in the coronavirus crisis.

Dovetailing perfectly with this less busy period for many businesses, as well as schools, as an ideal opportunity to make the switch to LED lighting.


From eLight's website:

GUARANTEED REDUCTION IN YOUR ENERGY BILL
High quality LEDs use less energy. On average, our customers reduce their lighting energy costs by 70% and their total energy bill by 30%.

NO UPFRONT COSTS, NET SAVINGS FROM DAY ONE
You simply pay a fixed monthly fee, which your energy savings more than cover. The total cost over 5 years is comparable to a traditional upfront quote for an LED supply and installation.

HASSLE FREE SWITCHOVER, FULLY MAINTAINED
Our experienced team have completed 800+ projects and will manage your installation to ensure no disruption to your operations. We also fully maintain the lighting performance for the contract term.

SIGNIFICANTLY REDUCE YOUR CARBON FOOTPRINT
We are energy efficiency experts, helping you to meet your sustainability goals faster. Our data-led approach ensures that our tailored solutions maximise energy efficiency for the long term.

[hedgehog 100] 19/3/2020 11:18

Some key directors here are also large shareholders in EAAS, which means that their interests in creating shareholder value are aligned with ours.

• Harvey Sinclair (EAAS CEO) owns 15.77% of EAAS shares.
• Ian McKenna (eLight Ireland Managing Director) also owns 15.77% of EAAS shares.
• David Nicholl, (EAAS Chairman) owns 10.03% of EAAS shares.

If they turn EAAS in a company with a market cap. of £hundreds of millions, then their stakes could be worth £10s of millions each.

[hedgehog 100] 18/3/2020 18:22

EAAS is quite stunningly cheap now at just 4.1p, and looks massively oversold technically.

With big positive news due imminently, I wouldn't expect this buy opportunity to last long.

[hedgehog 100] 18/3/2020 17:58

Note that all the old AXM directors have now gone, except for Nigel Burton who was only appointed in September to help facilitate the RTO:

08/01/2020 15:14 UK Regulatory (RNS & others) Alexander Mining PLC Result of General Meeting
" ... Board Changes
On Admission, Harvey Sinclair, David Nicholl, Richard Williams and Andrew Lawley will join the Board and all of the Existing Directors will resign from the Board other than Nigel Burton. ..."


16/09/2019 06:01 UK Regulatory (RNS & others) Alexander Mining PLC Appointment of Director
" ... Further to the announcement of 9 August 2019, Alexander Mining plc, the AIM-listed mining, minerals and metals processing technology company, is pleased to confirm the appointment of Dr Nigel Burton as a Non-Executive Director of the Company with immediate effect. ... "


And remember that the new boss Harvey Sinclair sold his last AIM company for over £50M.

This is now a completely different (and much better) business, with some very impressive new management, especially compared to the ones they have replaced.

[hedgehog 100] 18/3/2020 17:40

LSE % Gainers Top Lists
EPIC Name %
CINE Cineworld +156%


Note the huge rebound today from CINE, up 156%.

EAAS could be next, but without CINE's risks.

After a market panic it can only take a few buys and the market makers are running for cover.

The imminent EAAS interim results could be the trigger.

[hedgehog 100] 17/3/2020 19:18

Due to the coronavirus outbreak many UK businesses are sadly less busy than otherwise, with some even temporarily closing.

Sustainable energy business eEnergy Group (EAAS), through its eLight subsidiary, could potentially help such businesses.

By saving those businesses money, and at no cost to them.

And utilising this less busy period as an ideal opportunity to make the switch to LED lighting.

With the bonus of course of helping the environment and the planet.

[hedgehog 100] 17/3/2020 17:00

Former AXM shareholders should be thankful that this is no longer AXM, or the fall would have been far worse, and it would probably be going bust.

Loss-making companies with no revenue are among the hardest hit in this stockmarket crash: many will probably not survive, due to the cash supply drying up.
Most resource companies are also amongst the hardest hit, and AXM's technology was for the resource sector!
I.e. a double whammy.

EAAS's RTO placing in early January was at 7.5p, so at 4.6p it is 38.6% down from that.
But the major indices are down about a third in this crash, so there's not much difference, even though the EAAS business looks more resiliant to the current situation than many large companies.

The important things to remember are that:-
• EAAS doesn't need to raise funds.
• It's non-cyclical, so won't be hit by an economic downturn.
• It has no real coronavirus danger to its business.
• It's above plan since the beginning of the year.

So there is the potential here for a big imminent rebound.

[hedgehog 100] 13/3/2020 16:06

eEnergy could hardly be doing any better since its floatation (via RTO into AXM) in early January of this year:

• Above plan since the beginning of the year.
• 35% conversion rate of proposals to contracts wins. Seeing that move to 50% this year.
• Partnership agreements signed with strategic channel partners.
• Currently generating €1m revenue a month which is on plan to generate €1M profit this FY.

Apart from the Pinergy deal this hasn't been RNSed yet, but the imminent interim results this month should make this excellent progress very clear.
The results statement will be reporting the finances for July-December 2019, but should of course also report on performance since the half year end, and the outlook going forward.

The directors will also be free to buy EAAS shares after the interim results, and I would imagine would be very tempted at this uber bargain level (5.75p).

[hedgehog 100] 13/3/2020 15:46

EAAS is a very defensive stock for an economic slowdown:

"eLight is an Energy Efficiency as a Service company which provides commercial customers with immediate energy and cost reductions with zero upfront investment by delivering Light-as-a-Service."

I.e. no cost to the customer, and immediate ongoing savings.

If anything, a customer's need to save money should increase the imperative to take up EAAS's offering.

And if a customer is less busy than otherwise, than that could be an ideal opportunity to make the switch.

[hedgehog 100] 12/3/2020 18:20

12/03/2020 07:00 RNSNON eEnergy Group PLC Ireland update and expansion into Northern Ireland

"eEnergy Group plc (AIM: EAAS), a leading "Energy Efficiency-as-a-Service" (EEaaS) business in the UK and Ireland, is pleased to provide an update on the progress of its operations in Ireland, including its first expansion into Northern Ireland.

The Group, through its eLight subsidiary, has been operating in the Republic of Ireland since 2013, and has already completed over 900 lighting upgrades in the commercial business sector. eLight provides "Light-as-a-Service" (LaaS) to businesses and schools to help them switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments.

Northern Ireland Expansion

While eLight is already well established in the Republic of Ireland, the Group believes the Northern Ireland energy efficient lighting market is underdeveloped. The Board sees significant growth potential, particularly in the education sector, where schools tend to be larger than in the Republic of Ireland.

Accordingly, eEnergy has recently expanded its operations into Northern Ireland, adding to its presence in Dublin and London. The new sales team, under the direction of business development manager Michael Aiken, is in advanced discussions with a number of educational bodies in Northern Ireland.

New Partnership in the Republic of Ireland

The Group is pleased to announce that it has formally agreed a partnership with the Irish smart energy supplier, Pinergy. This partnership creates a significant new sales channel for eLight, which will provide a LaaS product to Pinergy's business customers. Pinergy supplies its business customers with 100% renewable energy, meaning its customers are focussed not only on cost but also on sustainability, ensuring close alignment between the two businesses.

eLight has already delivered lighting solutions for a number of Pinergy clients and the partnership is expected to improve eLight's development pipeline. Pinergy joins Lynch Interact which formed a partnership with eLight in December 2019. Lynch Interact is the leading Irish owned company specialising in the provision of complete Facility Support and Building Fabric Services for the built environment.

Harvey Sinclair, CEO, eEnergy Group plc, said: "Our expansion into Northern Ireland builds on our established business in the rest of the UK and Ireland. We see considerable opportunity in an underdeveloped market in terms of LaaS and one that that has the potential for much larger contract values.

"As well as geographic expansion, we are focused on building partnerships with companies which create opportunities to increase our routes to market without growing our cost base. We are very excited about agreeing a partnership with Pinergy, whose focus on sustainability as well as customer value is in sync with our own priorities."

-ends-

Contacts: ..."

[noirua] 10/3/2020 17:54

Nothing wrong with the strategy here and the share price is low. Difficult to quite see when they will be profitable enough to pay dividends. Everything appears great and we need to wait to see quite how cash thirsty the company will be whilst growing. Looks to me to be a takeover target at some stage.

[hedgehog 100] 07/3/2020 15:09

New EAAS CEO Harvey Sinclair sold his previous AIM company for over £50M.:
i.e. the Hot Group, sold to Trinity Mirror in 2006 for about £50.5M.

This shows that he knows how to effectively execute and buy-&-build strategy, which combined with EAAS's tremendous organic growth makes the growth potential here mouth-watering.

Its usual for successful entrepreneurs to move upwards, and I expect that the ambitions for EAAS are much higher than £50M.: probably multiples of that.

Compared to a current EAAS market cap. of just £7.33M. at 5.6p.


20/12/2019 07:00 UK Regulatory (RNS & others) Alexander Mining PLC Proposed acquisition of eLight
" ... Harvey Ian Sinclair, Chief Executive Officer (age 48)
Harvey co-founded eLight and is a proven technology entrepreneur, who has achieved a number of successful exits of businesses over the last 15 years across a variety of different sectors; Software, Internet, ecommerce and in the Hospitality sector. In 2000, Harvey founded The Hot Group Plc (THG), which listed on AIM in 2002 and which he led on a successful consolidation of the online recruitment market, through a buy and build strategy, before leading the sale to Trinity Mirror in 2006. Harvey was investment director for Scottish Enterprise at Design LED between 2015 and 2019. ..."

[hedgehog 100] 07/3/2020 13:08

Noirua,

I think that your comment highlights how the market hasn't yet picked up on the potential here, and on how well EAAS is doing.

I admit that the company hasn't helped itself by not RNSing its good news, but it's a newly-listed company, and has obviously been very busy.

The imminent interim results this month should hopefully change this ... perhaps preceded by a trading statement to more formally update the market on progress.

Interviews are great, but RNSes are important too, and the ideal combination is probably an RNS, followed by an interview to put more 'meat on the bones'.


Of course, current challenged markets haven't helped matters.

But all market panics pass, and people then kick themselves at the mouth-watering opportunities they have missed, which will be the case with the 'coronavirus correction'.

China's draconian quarantine and containment measures appear to be working, and it has seen new cases of the coronavirus slow.

And the fact that we're moving into spring should also help.

From The Guardian today:

"Coronavirus: nine reasons to be reassured

Yes, Covid-19 is serious, but context is key and the world is well placed to deal with it

Jon Henley
@jonhenley
Sat 7 Mar 2020 05.00 GMT

... it is worth remembering the world has never had better tools to fight it, and that if we are infected, we are unlikely to die from it.

Here, courtesy of a number of scientists but mainly Ignacio López-Goñi, a professor of microbiology and virology at the University of Navarra in Spain, are what might hopefully prove a few reassuring facts about the new coronavirus:

• We know what it is. ...
• We can test for it. ...
• We know it can be contained (albeit at considerable cost). ...
• Catching it is not that easy (if we are careful) and we can kill it quite easily (provided we try). ...
• In most cases, symptoms are mild, and young people are at very low risk. ...
• People are recovering from it. ...
• Hundreds of scientific articles have already been written about it. ...
• Vaccine prototypes exist. ...
• Dozens of treatments are already being tested. ..."

[hedgehog 100] 07/3/2020 12:17

Noirua 7 Mar '20 - 11:48 - 61 of 61
"No announcements since the float and EAAS has drifted from 9p to 5.6p. In a very good growth sector although that growth may be slow."


Noirua,

You must have missed this RNS:

28/01/2020 07:01 RNSNON eEnergy Group PLC Appointment of Sales Director


That was a very impressive appointment, and it bodes very well that EAAS has attracted someone of his calibre.
Moreover, his ability and contacts will be invaluable.


And the growth is explosive.

From the EAAS AIM admission document, 20.12.19, page 30:

"3.9 CURRENT TRADING AND PROSPECTS

The unaudited management accounts for eLight for the three months ended 30 September 2019 show that it is trading ahead of the equivalent period in the prior year. Revenue of €872,000, represents an increase of 69 per cent. on the corresponding period last year. The Proposed Directors expect the rate of activity to increase through the rest of the fiscal year.

Over the period since the year end, the pipeline of qualified and engaged prospects has grown by over 60 per cent. and now stands at over €30 million of total contract value as the eLight Group is issuing more proposals than it has ever done. eLight continues to convert over 30 per cent. of the opportunities it engages with. ..."




A 69% year-on-year increase would see revenues rise nearly five-fold in three years.
And that 69% has been achieved without any of the benefits of the public listing and fundraising: it should initially accelerate.

There looks to be some seasonality in the figures, with the summer months being slower, but the year-on-year figures will reflect that.

And the company looks well placed to meet its forecasts.
From Proactive Investors:
"eEnergy eyes win-win in sustainable energy space
Philip Whiterow 13:57 Thu 09 Jan 2020
... Revenues in the year to June were £4.5mln, but house broker Turner Pope forecasts this doubling to £8.4mln in the current year and rising again to £12.6mln in 2021.
That is also the year the broker sees eEnergy moving into profit after a loss of £1.6mln last year. ..."
[...]