Good Energy Group PLC Significant repayment of second Good Energy Bond (6364Z)

TIDMGOOD

RNS Number : 6364Z

Good Energy Group PLC

25 May 2021

Good Energy Group PLC

("Good Energy" or "the Company")

Significant repayment of second Good Energy Bond

Good Energy Group PLC (AIM: GOOD), the 100% renewable electricity supplier and innovative energy services provider, announces a partial repayment of 70% (GBP11.5m) of Good Energy Bonds II on 30 June 2021, as a result of a strong net cash position and increased capital flexibility from recent transactions.

Debt reduction and substantial interest savings

In April 2021, Good Energy announced the successful restructuring of the financing of its renewable generation asset portfolio to consolidate and simplify funding facilities. The transaction also provides on-going improved visibility of cash flows, with a rebalancing of the performance covenants over the entire generation portfolio. This frees up future cash generated by the generation portfolio. Alongside the strong net cash position from improved operational performance, this has provided the Company with increased capital flexibility.

The Board believes this position allows the repayment of 70% (GBP11.5m) of Good Energy Bonds II in June 2021, while also enabling the Company to retain a cash buffer through to the end of winter 2021/22. The Board remains vigilant to the potential impacts of the withdrawal of various government support schemes later in 2021, both for individuals and businesses.

At the end of December 2020, the outstanding capital on Good Energy bonds II was GBP16.8m, while associated interest costs are GBP0.8m per annum. Annualised interest savings from this partial repayment are anticipated to be GBP0.6m.

The repayment will simplify the capital structure, improve flexibility and reduce financing costs. We intend to continue in this direction, balancing the return on our assets, operating requirements, investment for growth and the resumption of dividend payments.

Good Energy Bonds II background

Good Energy Bonds II was launched in June 2017, with the ambition to help support and enhance the delivery of a new strategy to explore opportunities in exciting new business areas including green business consultancy and solutions to promote the wider use of electric vehicles and energy storage.

The funds have been deployed across a range of strategic initiatives, enabling our transition into energy services:

-- Kraken customer technology platform. Supporting the implementation and rollout, with all customers now migrated. The system implementation and associated operating model transformation has delivered significant cost savings in 2020, continued improvements in customer experience and is on track to payback within 18 months as forecast.

-- Strategic investment in Zap - Map. The UK's leading EV mapping platform, which recently launched Zap - Pay, a ground-breaking payment solution across EV charging point networks. Good Energy converted its initial investment into a majority 50.1% equity stake in June 2020.

-- Mobility as a Service. Providing solutions for the electrification of transport for Business and Domestic customers, with several key mobility partnerships signed since late 2020.

-- SMART meter rollout. This remains ongoing, despite short term impact of COVID restrictions. Demand and installation numbers improving as lockdown restrictions ease and in line with expectations, with clear targets for 2021 rollout plan.

-- Implementation of Ensek. A market leading business billing platform, to offer a more digital service for Business customers, lowering costs and improving service levels.

In 2021 we are continuing to invest in our digital propositions and smart tariff capability, have committed to fund the next phase of growth in Zap-Map and will develop a new system with export functionality to build additional revenue streams and improved functionality for our feed in tariff portfolio.

Other financial information

The Company has previously received GBP0.4m redemption requests for repayment on 30 June 2021. Repayment of 70% of the outstanding, unredeemed bond debt, will total GBP11.5m. After these combined repayments the outstanding capital on Good Energy Bonds II will be GBP4.9m. The Company intends to wholly repay Good Energy Bonds II by the end of FY 2022.

The terms on the remaining 30% of Good Energy Bonds II will not be affected.

Nigel Pocklington, Chief Executive Officer at Good Energy said:

"From the development of generation assets to our strategic shift to energy services, the investment from our bondholders has, and continues to, enable investment in future innovations and services.

So far, tangible investments have been made including: Zap-Map to accelerate the shift to green transport; One Point, our all-in-one electric vehicle charge points installation service for UK businesses; and investments in our domestic and business customer platforms - Kraken and ENSEK - providing the building blocks to unlock future growth opportunities.

We are in a strong position to continue making investments across the Group and consider all relevant funding sources when appropriate."

Enquiries:

 
 Good Energy Group PLC                      Email: [e-mail] 
  Nigel Pocklington, Chief Executive         Email: [e-mail] 
  Charles Parry, Investor Relations          Phone: [phone] 
  Luke Bigwood, Communications               671003 
 Investec Bank plc (Nominated Adviser       Tel: [phone] 
  and Joint Broker)                          5970 
  Jeremy Ellis 
  Sara Hale 
 Canaccord Genuity Limited (Joint Broker)   Tel: [phone] 
  Henry Fitzgerald - O'Connor                4617 
  Georgina McCooke 
 

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 1,600 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.

Good Energy is recognised as a leader in this market, through our green kite accreditation with the London Stock Exchange and as a top rated Green energy supplier by Which?.

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May 25, 2021 02:00 ET (06:00 GMT)