Good Energy revenues and customer numbers rose last year, but profits were held back by warm weather.
During the 12 months to 31 December, Good Energy's pre-tax profits declined by 33 per cent to £2.2m. The company put this down to “challenging trading conditions resulting from the warmest year since records began”, as customers used less energy.
On a brighter note, the number of customers went up by 34 per cent during the period, reflecting a greater widespread interest in renewable, environmentally-friendly sources of energy.
The company was set up in 2002 to help the UK move away from reliance on fossil-fuelled power stations. Its mission is to help the nation become 100 per cent renewable by 2050.
Adjusted earnings per share fell 16 per cent to 17.5p, but revenue was more promising at £57.6m – a 43 per cent rise from 2013.
Why it's interesting
The renewable energy generator, which supplies electricity and gas to homes and businesses throughout the UK, is currently focused on expanding into solar and tidal energy.
It built its first two solar farms last year, together these account for 3GWh power output. In the first quarter of 2015, it energised two new solar sites – one in Wiltshire and one in Cornwall.
It has also invested in the major Tidal Lagoon Swansea Bay project, with a right to purchase the first 10 per cent of output delivered from it.
Shares have been on an overall downward trajectory since this time last year, but have experienced a few spikes in price over the last five months.
What Good Energy said
Chief executive Juliet Davenport is confident about the year ahead, despite the troubling conditions:
Although 2014 proved to be the warmest year on record, with a resulting reduction in customer energy usage in line with the wider market, we nonetheless saw healthy customer growth, with overall numbers up 34 per cent. As such, we are confident that we are well-positioned to respond and adapt to further changes in the market place and to continue to deliver growth.
Although profits were down because of warmer weather, the company is benefiting from a growing interest in renewable energy, as shown by its increasing number of customers.