Sep 12 (Renewables Now) - UK green energy company Good Energy Group Plc (LON:GOOD) saw its pre-tax profit fall 37% in the first half of 2017, down to GBP 730,000 (USD 968,000/EUR 809,000), in spite of a 16% rise in revenue.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 21% to GBP 4.7 million, while operating profit was down 11% to GBP 3 million.
Performance was affected by a contraction in gross margin to 28% from 33% a year ago. This was due to a number of factors, including a growing share of lower-margin business customers, the company's decision to postpone a price rise until March and lower gas usage, Good Energy said today.
Revenue rose 16% to GBP 52 million, driven by growing sales in the electricity supply business to business customers, while domestic customer growth was flat.
At the end of June, Good Energy had over 71,150 renewable electricity customers and 42,750 carbon-neutral gas customers. It also provides feed-in tariff (FiT) administration services to over 137,900 sites. The total number of about 251,800 represents an increase of 5% from a year back thanks to an increase in FiT customers.
Looking ahead, Good Energy said it currently expects the full-year result to be break-even to a modest profit.
The company is working to adapt to a competitive and dynamic energy market environment. "Our Fit-for-Growth programme and investment in our digital capabilities and systems are crucial first steps and, with further investment in our core business and the start of our new propositions in electric vehicles and storage planned in the second half of the year, we believe Good Energy is well positioned to succeed in the energy marketplace for the future," said chief executive Juliet Davenport.
(GBP 1 = USD 1.326/EUR 1.109)