Ecotricity's £13.5 million overdraft facility is due for renewal by the end of this month. It's not ideal timing as the recent surge in gas and electricity prices due to the Beast from the East could have added to the pressures on working capital. As a positive, Ecotricity say they have been moving from quarterly billing to monthly to ease the pressure on cash flow. Ecotricity's last accounts showed its shareholding in Good Energy Group on a revalued cost basis of £10.575 million compared to a current mid-market value of £5.63 million.
Life doesn't seem easy for the smaller energy suppliers at the moment.
I was just having a look at the Ecotricity Group Limited accounts for the year to April 2017 which have recently been filed at Companies House. They seem to have had a difficult year with a few issues that needed sorting out. Forest Green Rovers is costing them £2 million a year and debt has risen by £20 million in each of the last 2 years to fund investment in new projects. Good luck with your bonds!
I have been a long term supporter of Ecotricity, holding their bonds and using them to supply my energy. However as a shareholder of Good Energy it's clear there is no justification for allowing them to have a seat on the board.
If they want to mount a takeover bid then that's up to them - though I think it would be regrettable to unify the two strongest competitors to the big companies. - otherwise they should leave Good alone.
This sounds like to start of another argument by Ecotricity. Fell out with Tesla a couple of years ago and now own a quarter of a competitor and wanting to get on the board. They are a private company without shareholders so they may be a more personal expression of their founder and his attitudes. Cannot help but wonder if their is a longer term merger/takeover here, though GE seem rightly negative on the whole thing...
I hesitate to disagree, but the profit this Company generates is very small. I don't understand why it has been consistently selling solar plants it has been developing, unless it's because they are always short of cash.
It has heavy borrowings on which it has to pay significant interest. The PE ratio is very high (and IHMO too high for a Company with very poor history of cash generation. I note that a lot of the divis it pays are reinvested by shareholders back into the business so maybe there are lots of loyal shareholders. Historically however the div is not covered by cash generation. Getting the investors to reinvest their divis could be viewed as a clever way of giving an illusion of cash generation?
"In 2016, Good Energy delivered growth of 41% in revenue, 29% growth in gross profit and 41% growth in operating profit while managing the challenges of an increasing competitive UK energy market and volatile wholesale energy market."
I'm not sure what proportion of electricity "Good" generate in house but in times of "volatility" and upward price movements the more the better. Selling off their generating assets for a small profit does not make much sense.
First redT energy storage machines arrive at Gigha
Four 15-240 energy storage machines successfully delivered ahead of final installation and commissioning phase
redT energy plc ("redT energy" or the "Company"), the energy storage technology company, is pleased to have transported four of its 15kW-240kWh energy storage machines to the Isle of Gigha. The units, which are the first contract manufactured, containerised, large scale vanadium flow machines of their kind, are four out of seven modules of an energy storage system that will eventually total 1.68MWh. The machines are now sited in preparation for their installation and commissioning onto the island's electrical grid. The Company will update the market once the final three modules have been delivered to Gigha.
The 1.68MWh system will be used to generate revenue by providing grid support services. The system is configured and approved to remove generation and export constraints from the addition of an extra 330kW community-owned wind turbine on the island. In addition, the machines will also eventually provide voltage and frequency support services and back-up for the remote Scottish island in case of grid outages.
Scott McGregor, CEO of redT said,
"Today's announcement marks another significant milestone for redT and moves us closer to successfully concluding a game changing project for the energy storage industry. This is not only an important development for redT, as it demonstrates the value our technology can bring to large scale renewable energy ventures, but also for the island's inhabitants. This 1.68MWh system will help increase the output of the island's community wind farm, generate revenue and bring greater energy security to a community located in a remote part of the UK."
After being a customer for many years, I have finally bought in to the company a few days ago. It is probably as much out of principle as anything but have never had any issue with them as a customer and any queries are dealt with helpfully and efficiently.
This Company should not really be paying a divi given that it regularly raises funds from the market and has rising (and high level) of debt.
They seem to issue a lot of shares to existing shareholders in lieu of a divi so I guess that keeps the divi costs down but dilutes the existing shareholders.
It includes the sale of assets such as the occasional solar farm or approved application for one in it's bottom line. Take out the profit reported in this set of resulls and the EPS takes quite a plunge. Surely these sales should be an exceptional profit. Can one really see that they are likely to be continuing/ongoing as we move forward?
Borrowing funds to install solar farms etc at 9% from GPR Infrastructure seems a better deal for GPR than Good Energy.
I bought some on an upswing a year or two ago, and they have sat at 15% below what I paid until last week. Dividend at 1%ish currently does not make them a hold. I'm a believer in renewables, but I suspect this share is being overvalued once again. I sold out yesterday at par on the bounce.
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