Join our community of smart investors

This tech-cum-energy stock is an absolute bargain

Adjust for net cash following a recent disposal and a deferred consideration and the retained business is priced on one times cash profit – a bargain basement rating
April 30, 2024
  • Energy services unit delivers 68 per cent higher annualised revenue of £17.5mn
  • Post-period £29.3mn disposal transforms balance sheet
  • Major contract announced in April 2024
  • New funding facility secured

Annual results from technology-enabled energy services provider eEnergy (EAAS: 5.9p) had been flagged in early March when the directors announced a £40mn project funding facility with NatWest alongside a pre-close trading update.

The numbers for the 18 months to 31 December 2023 are complicated by the inclusion of the energy management business that was sold for £29.3mn after the period end. However, the bottom line is that the retained energy services business delivered £2.3mn cash profit (pre-central overheads), or £1.5mn on an annualised basis. Following the disposal, management is taking steps to right-size the cost base, which will see annual central costs reduced from £2.3mn to £1.6mn by the final quarter of 2024.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in