Good Energy's H1 pre-tax profit jumps to GBP 2.4m

UK clean energy company Good Energy Group Plc (LON:GOOD) today reported a pre-tax profit from continuing operations of GBP 2.4 million (USD 3.1m/EUR 2.7m) for the first six months of 2018, a jump from GBP 730,000 a year ago.

Profit for the period was GBP 1 million, compared to GBP 496,000 in the first six months of 2017, including a GBP-698,000 loss from discontinued operations, most of which due to the write down to nil of the value of the firm's investment in Swansea Bay Tidal Lagoon plc.

Good Energy, which supplies renewable electricity and "green" gas to domestic and business customers and also provides feed-in tariff (FiT) services, saw its gross profit grow by 27.8% to GBP 18.4 million, boosted by business and domestic gas volumes and the company's move to implement a price rise earlier in the year.

Revenue rose 18.8% to GBP 61.8 million on the back of improved supply volumes due to the extreme weather conditions at the start of 2018.

The company said its 2018 profits are expected to be skewed towards the first half of the year, reflecting cyclical trends and the warmer weather during the summer. It plans increased investment in the second half, including in a brand relaunch and digital and online capabilities to drive future growth.

Founder and chief executive Juliet Davenport described the first-half results as good. "I believe this reflects the investment in the senior leadership team and the continued shift in our new business strategy as we move to align to our decentralised energy model of the future," she added.

(GBP 1 = USD 1.303/EUR 1.123)

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