2021
eEnergy Group plc
Annual Report & Accounts
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Salisbury House
London Wall
London
EC2M 5PS
eenergyplc.com
UNLEASHING
NET ZERO
Unleashing Net Zero, through Zero Carbon –
Zero Capital – Zero Waste.
Glossary
We are all for zero, operating at the frontier of EnergyasaService (‘EaaS’) disrupting the way
private and public sector organisations procure, measure, and consume energy, for good.
We help clients navigate a journey to Net Zero by providing them with an endtoend Energy
Management solution ‘asaservice’. This includes access to the lowest cost procurement of
Zero Carbon energy through our proprietary eAuction platform in addition to providing access
to their granular energy and emissions data & consumption analytics via the MY ZeERO smart
metering platform; helping them identify energy wastage.
We deliver energy reduction solutions through ‘Energy Efficiency as a Service’; enabled through
Light as a Service deploying LED technology and, in time, through other energy efficiency
solutions, such as IOT enabled controls and heating optimisation.
We now offer onsite solar generation and intend to offer Electric Vehicle charging solutions that
will promote clients’ energy independence and resilience.
Our strategy is to provide a simple, one stop shop solution to organisations wanting to achieve
net zero, but who do not have sophisticated inhouse energy departments. Our business model
is to leverage the groups large customer base which has been secured through our successful
‘Buy & Build’ strategy within energy management and unlock multiple revenue streams as we
deliver energy reduction solutions for our customer base.
The following table provides an explanation of certain technical terms and abbreviations used in this announcement.
The terms and their assigned meanings may not correspond to standard industry meanings or usage of these terms.
‘ECMs’ Energy Conservation Measures
‘EEaaS’ Energy EfficiencyasaService
‘EMaaS’ Energy ManagementasaService
‘EV’ Plugin Hybrid or Battery Electric Vehicle
‘HVAC’ Heating, Ventilation, and Air Conditioning
‘IoT’ Internet of Things
‘LaaS’ LightingasaService
‘Net Zero’ Achieving net zero greenhouse gas emissions
‘TWh’ Terawatt hour, one trillion watts for one hour
The market for energy efficiency
32 Consolidated statement of financial position
Financial statements
26 Independent auditor’s report
31 Consolidated statement of comprehensive income
Contents
Strategic Report
Highlights
At a glance
Unleashing Net Zero
Chairman’s statement
CEO’s report
1
2
4
5
6
8
10 Our strategy
12 CFO’s report
15 Case study
16 Principal risks and uncertainties
18 S172 statement
Governance
19 Environment, Social & Governance (‘ESG’) report
21 Group Directors’ report
22 Statement of Directors’ responsibilities
23 Directors’ remuneration report
25 Board of Directors
33 Company statement of financial position
34 Statement of cashflows
35 Consolidated statement of changes in equity
36 Company statement of changes in equity
37 Notes to the financial statements
Corporate information
74 Officers and advisers
IBC Glossary
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The paper used in this document contains
materials sourced from responsibly managed
and sustainable commercial forests,
certified in accordance with the FSC®
(Forest Stewardship Council).
C004309
Highlights
Annual Report & Accounts 2021 1
eEnergy Group plc
Financial
• Revenue up 200% to £13.6 million (2020: £4.5 million)
• Organic revenue growth of 75% in the core eLight business, generating
revenues of £7.9 million
• Generated maiden Group profits
• Adjusted EBITDA of £0.8 million (FY20: loss of £1.5 million)(1)
• Profit before tax and exceptional items of £0.1 million (2020: loss of £1.9 million)(1)
• Cash at bank £3.3 million (30 June 2020: £1.5 million)
• Net cash (including £0.7 million of IFRS 16 lease liabilities) of £0.8 million
(30 June 2020: net debt of £0.5 million, including £0.6 million of lease liabilities)
Operational
• Number of eLight projects completed increased by 69% (FY21: 211, FY20: 125)
and average revenue per project increased by 52%
• Renewable Solutions Lighting (‘RSL’), acquired in July 2020, fully integrated
and strengthened Group’s leading LightingasaService (‘LaaS’) position in
MultiAcademy Trusts and State schools
• Beond, the Top 20 energy management business, acquired in December 2020,
integrated into eEnergy with advanced discussions with a number of Beond’s
clients for Group’s eLight LaaS solution
• Launched MY ZeERO, the smart metering and intelligent data analytics platform
• Group delivered first combined LaaS and smart metering & analytics project
in June 2021
Since the year end
• In September 2021 completed our largest acquisition, UtilityTeam, and raised
£12 million (gross) through a placing to both existing and new institutional
investors to fund the initial cash consideration
• On a pro forma basis, following the acquisition of UtilityTeam, we derive
approximately 55% of Group revenue from our Energy Efficiency division
and 45% from our Energy Management division(2)
(1) Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) is stated before exceptional items, which are predominantly transaction related
costs and sharebased payment expenses.
(2) Pro forma annualised revenue is derived from the FY21 eEnergy audited accounts and includes 12 months pro rata for Beond. UtilityTeam revenue is taken from
their FY20 accounts. No other adjustments have been made to those revenues.
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eEnergy Group plc
Annual Report & Accounts 2021
At a glance
Our mission
To enable our customers to achieve Net Zero without the need for capital investment.
We will do this through smart Zero Carbon procurement, technology enabled energy
management and through Energy Efficiency as a Service.
We believe technology and smart data play a key role in delivering this journey which is
why we are investing in market leading proprietary technology where data insights will
drive energy reduction strategies and transform the Energy Management proposition.
An Energy Services company delivering Net Zero Solutions
Where we are today
eEnergy is an established Energy Efficiency as a Service (‘EEaaS’) provider
and a Top 5 Energy Management services provider.
The Group manages 5.3TWh of energy for 1,800 customers with over
38,000 meters across both the public and private sectors, where it
provides a complete energy consultancy, procurement, management,
and efficiency service package.
We have traditionally focused our EEaaS on LED lighting and provided
capital free Light as a Service (‘LaaS’) where we switch schools and
businesses to LED for a fixed monthly fee that is less than the client’s
savings on their energy bill.
We are now looking to expand our energy reduction solutions to clients
through the deployment of IOT and Controls to further reduce energy
wastage, which are captured through a ‘share of savings’ agreement
which are measured & reported via our proprietary smart metering
analytics platform.
eEnergy was admitted to AIM in January 2020, and has been awarded
The Green Economy Mark by the London Stock Exchange.
• A high growth, profitable and
Integrated Energy Services
company.
• Providing organisations with
energy management and
capital free energy efficiency
solutions to reduce their carbon
footprint and unlock hidden
cost savings.
• Organic growth complemented
by ‘Buy & Build’ strategy.
Our brands
Energy reduction through capital free energy efficiency
solutions through LightasaService (‘LaaS’). eLight
helps businesses and schools switch to LED technology
for a fixed monthly service fee, avoiding any upfront
payments. eLight has completed over 1,100 energy
efficient projects across the UK and Ireland.
Zero Carbon Energy Procurement and Consulting.
Beond uses technology innovations to deliver high
quality services to the public and private sectors that
helps its clients contribute to a carbon free world
without compromising on their business objectives.
Energy consumption measurement and analytics.
Through our proprietary MY ZeERO platform, we
provide live, behind the meter energy consumption
data through the cloud, enabling businesses to pinpoint
energy wastage.
A leading, high growth energy consulting and
procurement business. Focusing on the Industrial
& Commercial market with its Net Zero strategy
and capability fully integrated into traditional
energy procurement.
Annual Report & Accounts 2021 3
eEnergy Group plc
£13.6m
£0.8m
eEnergy by numbers FY21
Revenue
£13.6m
+200%
FY20: £4.5m
Adjusted EBITDA (1)
£0.8m
FY20: £1.5m loss
REVENUE
2021
2020
£4.5m
ADJUSTED EBITDA
2021
2020
£1.5m
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Profit before exceptional items(1)
£0.1m
FY20: £1.9m loss
PROFIT BEFORE EXCEPTIONAL ITEMS
2021
2020
£1.9m
£0.1m
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Performance indicators FY21
Organic revenue
Meters under management (2)
+75%
£7.9m
FY20: £4.5m
30,040
(+9%)
15 Dec 20: 27,481
Number of projects installed
Energy under management (2)
EEaaS average value
per project
£52,232
(+52%)
FY20: £34,320
Acquisitions completed
in year
211
(+69%)
FY20: 125
3.4TWh
3
FY20: nil
FY20: nil
(1) Adjusted EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) is stated before exceptional items, which are predominantly transaction related costs and
sharebased payment expenses.
(2) With the acquisition of UtilityTeam in September 2021 our Meters under management increased to over 38,000 and our Energy under management increased to 5.3TWh.
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eEnergy Group plc
Annual Report & Accounts 2021
The market for energy efficiency
Overview
Near term growth drivers
Existing capabilities across Energy Management, Energy
Efficiency and Intelligent Measurement & Analysis driving
strong organic growth.
Supported by acquisition strategy to infill capability gaps
and accelerate growth.
1. Market Demand for Zero Carbon Energy & Energy Data
2. Switch to Energy Management ‘AsaService’
3. Data insights enabled by MY ZeERO drive energy
reduction through EEaaS
4. Digitisation of LaaS model; eLight App drives scalable
SME growth
5. Leverage expanded customer base to capture additional
Energy Conservation Measure’s with measured savings
6.
Integration and efficiencies leverage platform capabilities
7. Renewable generation and Electric Vehicle solutions
Government action, regulation and public sector
initiatives are changing the macro environment
NHS England plans to become world’s
first carbon neutral health service
Legally enshrined target to reduce
carbon emissions by 78% by 2035
ESG reporting to become mandatory
for LSE premium listed companies from
1 January 2022
Streamlined Energy & Carbon Reporting
requirements apply from 2020 onwards
Government procurement rules to
require businesses to commit to
achieving Net Zero by 2050
Energy efficiency, that is reducing the amount of energy
consumed to undertake a specific activity, can be improved
by better management of existing plant and equipment
and/or replacing equipment with higher efficiency units
and systems.
The Committee on Climate Change estimates that the market
opportunity for EEaaS is more than £12 billion by 2033.
The market in the EU for energy efficiency services was
approximately €25 billion in 2017 and is expected to double
by 2025. Buildings account for 39% of the EU’s total final
energy consumption and 75% of the EU’s building stock is
regarded as energy inefficient. The rate of building renovation
remains very low, at around 0.4% to 1.2% per year, relative to
where it needs to be (3% per annum) in order for the EU to
meet its emissions targets. The European Commission
estimates that €100 billion needs to be invested annually to
achieve Europe’s 2050 energy efficiency targets.
€12 billion
The Commission on Climate
Change estimates that by
2033 £4.6 billion will need to
be invested in Lighting and
Lighting Controls, £4.8 billion
in smarter control, monitoring
and management systems
and £2.6 billion for HVAC and
refrigeration.
€50 billion
The EU market for energy
efficiency services was
c. €25 billion in 2017 and
is expected to double to
€50 billion by 2025(1).
Although there are many positive drivers to encourage
businesses to adopt improved energy efficiency there are also
several barriers including the need to make capital investments
into plant and equipment that are noncore to most businesses.
Many businesses, particularly SMEs, do not have or do not
wish to allocate capital for noncore investments even though
energy efficiency investments would reduce operating costs.
EEaaS business models are expected to capture a growing
share of the energy efficiency market as they overcome this
barrier. Lighting is often the easiest Energy Conservation
Measure to address and the global LaaS market is expected to
grow from $662 million in revenues in 2017 to $2.6 billion by
2026, a CAGR of 16% (3).
> 21,000 schools
41% CAGR
There are over 30,000 schools
in the UK, of which between
70%+ have not yet
transitioned to LED lighting.
The global LaaS market is
forecast to grow at 41%
CAGR between 20182025(2).
eEnergy is building on its leading position in education in the
UK and Ireland as well as expanding into the food services,
healthcare and distribution and logistics sectors.
There are over 30,000 schools in the UK, of which more than
70% have not yet transitioned to LED lighting. With the
budgetary pressure on state schools and the UK government’s
focus on promoting energy efficiency in the public sector
the Directors remain convinced of the particular opportunity
within the education sector which they estimate to be
worth £1.5 billion.
(1) Roland Berger Energy Efficiency Services in Europe report. (2) BIS Global Lighting as a Service report, 20182025. (3) Source: Rocky Mountain Institute, Lumens as a Service (2017).
Unleashing Net Zero
Annual Report & Accounts 2021 5
eEnergy Group plc
eEnergy’s integrated services offering enables us to support our clients to achieve
their CO2 reduction targets at the same time as saving money.
Our approach focuses on four key strategic areas:
1
Zero Carbon
procurement
2
Management of
energy usage
3
Energy
efficiency
4
Renewable energy
generation
The ‘waterfall’ diagram below depicts how those areas each contribute to the client’s
CO2 reduction targets. This illustration is based upon an actual client case study where
we have delivered all of our current capabilities in less than six months and we are also
providing the tracking and reporting of the impact of each of the emissions projects.
The client is estimated to save £0.7 million over the next ten years from the LaaS
project across their 20 UK sites.
The waterfall also shows what the Board believes could be the potential 10year
economic value to eEnergy of offering all of the Group’s current capabilities to a typical
client – approximately £1.1 million, with an additional £0.61.0 million of value through
the further EEaaS and EV growth opportunities.
Potential economic value of delivering Net Zero
TRACKING & REPORTING THE IMPACT OF EMISSIONS PROJECTS
Current capabili琀es
Zero Carbon
Procurement
Technology
enabled,
transparent
marketplace
pricing
Intelligent Smart
Metering
Pinpoint
wastage and
iden琀fy efficiency
opportuni琀es
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2
Poten琀al
10 year value
to eEnergy
£500K
£240K
£340K
Light-as-a
-Service
Future growth opportuni琀es
IoT Controls
HVAC / Boiler
Op琀misa琀on
Onsite
Genera琀on
/EV Charging
Future-proofing
demand side
requirements
£300 - £500k
£300 - £500k
£1.6 - £2m
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Off-balance-sheet energy efficiency
measures deployed ‘as-a-service’
Illustrative only. Based on actual customer case study, assuming one renewal, and pipeline for Current Capabilities and eEnergy estimate
of value for Future Growth Opportunities. Actual savings and value to eEnergy are subject to each client’s energy infrastructure.
6
eEnergy Group plc
Annual Report & Accounts 2021
Chairman’s statement
“This year has been transformational for eEnergy and
I am delighted with the progress made by the Group.
Our objective is to enable our customers to achieve Net
Zero. We do that by offering our customers consultancy
and Zero Carbon energy procurement services, technology
and information systems for energy measurement and
capital free solutions for reducing energy consumption and
wastage to achieve their energy reduction goals. The Board
is encouraged by the resilience of the Group’s business
model as the senior leadership team navigated a new
environment as a result of the pandemic which saw
eEnergy enter the energy management market and deliver
its maiden profit. ” David Nicholl Chairman
Energy Markets
The UK is currently experiencing
significantly higher wholesale energy
prices than historically. High energy
prices means it is imperative that
businesses and organisations focus ever
more strongly on minimising energy
usage and eliminating wastage. Our
capability to measure and analyse
energy consumption, implement capital
free energy efficiency measures and
manage the risks around procuring
energy in volatile markets means we
are well positioned to help our clients
in these uncertain markets.
Strategy
Through FY21 we have built eEnergy
into an integrated energy services
business which allows its customers to
transition to ‘Net Zero’ through our
capital free ‘Energy as a Service’. This
business model provides many benefits
but primarily gives greater visibility and
predictability to our top line growth and
a higher quality of earnings.
eEnergy has executed its ‘Buy & Build’
strategy by completing four transactions
since listing on AIM: Renewable
Solutions Lighting Ltd (‘RSL’) completed
in July 2020 and Beond in December
2020. The investment in MY ZeERO
was initially made in April 2021 and in
September 2021 we completed our
largest acquisition to date, UtilityTeam,
so that we are now a Top 5 ranked
energy management company.
The acquisition of UtilityTeam is expected
to be significantly earnings enhancing in
the current financial year (FY22) as well
as grow our scale and scope to cross sell
our products and services across our
growing customer base.
People
eEnergy has continued to strengthen its
Board and senior leadership team, hiring
both externally and from its acquisitions
made in the year. We have grown from
a Group of 35 employees to now having
over 130.
In December 2020, eEnergy announced
the appointment of Rob Van Leeuwen
to the Group’s senior leadership team
as Group Chief Operating Officer. Rob
brings 20 years of experience in the
energy management sector. Rob has
worked closely with the Energy
ManagementasaService (‘EMaaS’)
management team and oversees its
integration and growth strategy, which
includes enhancing the customer value
proposition, increasing levels of cross
and upselling within the existing
customer base and maximising synergies.
Derek Myers joined the Board in
December as Chief Innovation Officer.
Derek had built Beond to be the
business we acquired and was CEO as
well as the controlling shareholder prior
to its acquisition by the Group.
Following the successful integration of
Beond into the Group Derek has now
chosen to change his focus and become
a NonExecutive Director. As our largest
shareholder Derek will not be
considered to be ‘independent’ but the
Board will continue to benefit from his
experience in energy management and
the broader energy markets.
In January 2021, Gary Worby joined the
Board as an Independent NonExecutive
and member of the Remuneration
Committee. Gary brings considerable
strategic experience having spent many
years in the energy and carbon sector.
Gary will support the Board in building
eEnergy into a marketleading integrated
energy management and energy savings
platform, as well as strengthening the
Group’s focus on corporate governance.
Gary’s career has included a number of
executive leadership roles and has
specific experience in implementing
successful organic growth strategies and
European expansion, M&A and trade
sales. He was Managing Director of
EnergyQuote JHA, one of the largest
panEuropean energy consultants with
a worldclass client base, which
Accenture acquired in 2014.
In June 2021, Crispin Goldsmith was
appointed to the Group’s senior
leadership team as Chief Strategy
& Commercial Officer, primarily
responsible for the Group’s M&A
strategy. Crispin has over 20 years of
experience in corporate finance and
M&A. His previous roles include
Director of Strategy and Corporate
Development at Dixons Carphone,
Investment Director at Duke Street,
a leading UK private equity firm, and
Annual Report & Accounts 2021 7
eEnergy Group plc
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Director at Royal Bank Equity Finance,
the manager of the £1.1 billion RBS
Special Opportunities Fund.
Finally, Delvin Lane, the CEO of
UtilityTeam, has joined the Group’s
senior leadership team as MD for the
EMaaS division. Delvin has over 25 years’
experience in the energy sector having
worked for several the UK’s largest
utilities. Among other roles, Delvin has
previously been Head of Energy Services
for EDF, supporting customers in
delivering cash and carbon savings, and
CEO of Anesco, an energy efficiency
solutions company. Delvin joined
UtilityTeam as a NonExecutive Director
in 2017, before being appointed as the
company’s CEO in 2019.
We have welcomed 96 new team
members since listing on AIM in January
2020, both organically and through our
M&A transactions, who, along with the
rest of our team have made the
transition to working flexibly through
the pandemic with fortitude.
COVID19
The resilience of the Group's business
model has ensured a robust performance
for the year despite the impact of
COVID19 with new contract wins.
While we have seen some delays in
new contracts, impacting on project
timeframes, the Board is encouraged
with the current and future order book.
The underlying foundations and
structural drivers within our market
remain very robust and the breadth of
applications for our services to new
clients as well as our ability to cross and
up sell additional services to our existing
client base, continues to grow.
Outlook
The strong fundamentals of the market
and associated regulatory drivers
provide a significant opportunity for
organic growth, complemented by
acquired growth from our ‘Buy & Build’
strategy in the medium term.
eEnergy will continue to execute against
its M&A strategy and to assess strategic
and accretive acquisition opportunities
that will enable it to accelerate the rate
of growth across the business.
The eEnergy leadership team is
confident in the future prospects of the
business, underpinned by the strong
pipeline of opportunities seen by the
Group, including the appetite from its
customers for other products and
services delivered by the Group.
I would like to take this opportunity to
thank our employees for their hard work
in the year, our customers for their
loyalty and our shareholders for their
continued support.
David Nicholl
Chairman
6 October 2021
‘Buy & Build’
eEnergy has executed against
its ‘Buy & Build’ strategy by
completing four transactions
since listing on AIM.
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Top 5
We are now a Top 5 ranked
energy management company.
96
New members of staff to the
Group since joining AIM in
January 2020.
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eEnergy Group plc
Annual Report & Accounts 2021
CEO’s report
“The year to 30 June 2021 was a transformational
period for the Group. We are now able to support
our customers across their journey to Net Zero
as a result of growth in our organic capability and
the select acquisitions we have made as we have
delivered on our ‘Buy & Build’ strategy. We saw
revenues grow by some 200%, delivered a profit
for the first time and made further strong progress
in executing our strategy to become a fully
integrated energy services company.”
Harvey Sinclair CEO
Introduction
Our business model combines organic
growth and carefully targeted
acquisitions and investments. The
Group became the leading provider of
Energy EfficiencyasaService (‘EEaaS’)
solutions to the school sector with
the acquisition of RSL in July 2020.
We created the Energy Management
asaService (‘EMaaS’) division with the
acquisition of Beond in December 2020
and our largest acquisition to date came
after the year end, in September, when
we acquired UtilityTeam, another Top 20
energy consulting and procurement
business whose services aim to reduce
costs for clients whilst supporting their
transition to Capitalise Net Zero.
Together UtilityTeam and Beond make
eEnergy a Top 5 energy management
business in the UK.
In April 2021, we made an initial
investment into a leading provider of
intelligent metering and smart analytics
which is now known as MY ZeERO.
The MY ZeERO platform is one of only
a handful that gathers circuit level data
‘behind the meter’ which enables us
to provide our clients with granular
visibility of their energy consumption
and wastage which in turn underpins
both our EMaaS and EEaaS businesses.
As a result we now have the necessary
expertise to help businesses to procure
Zero Carbon energy, measure their
usage and wastage and then deliver
the energy reduction measures to
enable customers to realise their net
zero strategies.
On a proforma basis 55% of our
annualised revenue comes from our
Energy Efficiency division and 45% from
our Energy Management division.
Results
Our results for the year to 30 June
2021 reflect strong organic growth as
well as increasing contributions from our
acquisitions. Despite the continuing
challenges of the COVID19 pandemic,
revenues increased to £13.6 million
(2020: £4.5 million), including organic
revenue growth of 75% in our core
eLight business, which generated
revenues of £7.9 million (2020: £4.5
million). I am particularly pleased to
report our maiden profit with adjusted
EBITDA of £0.8 million compared to
a loss of £1.5 million in FY20 and a
profit before tax and exceptional items
of £0.1 million (2020: loss £1.9 million).
Divisions
EEaaS Division
Our decision in 2019 to focus on the
opportunity in the education market
has stood us in good stead in FY21.
We estimate that UK education alone
represents a £1.5 billion market
opportunity given the low level of LED
adoption in schools. In FY21 some 85%,
of our revenue came from schools and
our leading position in Lightingasa
Service in Multi Academy Trusts and
State Schools was strengthened by the
acquisition and integration of RSL.
Demand from the education sector has
proved to be resilient in the face of the
challenges created by the COVID19
pandemic. However, in the last quarter
of FY21, the Group started to see
renewed appetite from the commercial
sector and secured its largest retail
contract to date with a leading UK
health food chain.
The strategic partnership with Venture
Lighting, which provides the Group
with eLight branded technology,
signed in November 2020, has
supported pricing to the Group’s clients
as well as contributed to improved
gross margin.
Post year end, in August 2021, we
were pleased to announce the Group’s
first contract win to provide solar
power together with LED lighting in
a single contract. The initial, single site,
contract covers a solar power system,
together with LED lighting, with a
contract value of approximately £0.4
million. Over the 20 year lifetime of the
system, we anticipate a total customer
cost saving, at today’s prices, of
almost £1.4 million and a reduction
of CO2 emissions of approximately
576 tonnes.
EMaaS Division
The Group’s EMaaS Division was initially
created with the acquisition of Beond,
a leading renewable energy consulting
Annual Report & Accounts 2021 9
eEnergy Group plc
and procurement business, in December
2020. Through Beond we offer Zero
Carbon procurement using our proprietary
reverse auction platform, ESG reporting
and risk management and bureau services.
EMaaS is a repeatable revenue model
with client retention rates of over 90%.
Beond has traded ahead of the Board’s
initial expectation at the time of
acquisition. It currently has more than
30,000 meters under management, an
increase of 9% since acquisition and
82% of all electricity meters transacted
since 1 January 2021 now have energy
from a renewable source. Integration
continues to be on plan, with sales,
marketing and finance teams integrated
and a common data platform delivered.
The acquisition of UtilityTeam in
September 2021 brings significant
additional scale to the EMaaS division
and increases the Group’s strong cross
sell opportunity through UtilityTeam’s
longterm, strategic relationships with
its midmarket customer base. The Chief
Executive Officer of UtilityTeam, Delvin
Lane, will lead the enlarged EMaaS
Division and an integration team will
work closely with the EMaaS team.
Integration will focus on initiatives to
accelerate growth, including cross selling
and the creation of specific sales
channels for Beond and UtilityTeam
respectively, as well as consolidating
operational activities, using the eEnergy
reverse auction platform across
procurement activities and ensuring
a single technology platform for all
EMaaS client data.
Intelligent Smart Metering and
Analytics – MY ZeERO
In April 2021, the Group established a
presence in smart metering and intelligent
data analytics, by making an initial
investment into a newly incorporated
company, eEnergy Insights Limited
(‘EIL’). EIL acquired the trade and assets
(including all IP) from the administrators
of Measure My Energy, a UK based
developer of intelligent energy metering
and analytical solutions. In June, the
Group confirmed plans to make a
further investment in EIL and acquire
51%, in addition to pre agreed steps
with the potential to increase the
Group’s equity stake to 100% over time.
Embedding the monitoring and
analytics of the MY ZeERO platform
into our businesses will be a key driver
of our near term growth and
differentiate our offerings from the
market. Using our energy efficiency
solutions the Group will be able to offer
measured savings contracts to its
clients using the certified International
Performance Measurement and
Verification Protocol (‘IPMVP’)
methodology to evidence the savings
delivered by efficiency measures. In
Energy Management the combination
of monitoring and analytics with our
energy procurement will enable clients
to access their energy data through a
simple subscription model and will
transform Energy Management into
‘asaService’.
Synergy
The Group’s growth trajectory and the
successful acquisitions made to date –
including UtilityTeam – have created
attractive synergy and crossselling
opportunities.
Our MY ZeERO platform enables us
to offer data and analysis as a
subscriptionbased EMaaS, therefore
increasing the ‘stickiness’ of our
client relationships.
EMaaS provides a customer acquisition
platform for zero capital energy reduction
solutions and within the Division, the
Group now has over 1,800 existing
customers with 38,000 meters under
management and manages over
5.3TWh of energy.
For example, we are already in
advanced discussions with a number
of Beond’s clients to provide them
with the Group's eLight LaaS solution.
In June, we delivered our first
combined LaaS and smart metering
and analytics project for a leading
recycling business.
Going forward, as the Group starts to
deliver measured savings contracts,
it expects to see an increased share
of our revenues come from contracted
monthly recurring revenues which,
in turn, will improve visibility of
future revenues and lead to higher
quality earnings.
£13.6m
Revenue increase
+200%
£0.8m
Maiden profit FY21
FY20: £1.5m loss
150%+
Revenues increase in the
EEaaS Division.
£2.2m
Revenue generated by
Beond since acquisition
in December 2020.
Outlook
Whilst early in the current financial
year, the Board expects revenue and
profit before and after tax and before
exceptional items for FY22 to be
materially ahead of FY21, and trading in
the year to date remains inline with
current market expectations.
The Group continues to assess strategic
and accretive acquisition opportunities
that will enable it to accelerate the rate
of growth across the business.
Harvey Sinclair
Chief Executive Officer
6 October 2021
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eEnergy Group plc
Annual Report & Accounts 2021
Our strategy
A highgrowth, profitable and Integrated Energy Services company
Our objective is clear. eEnergy seeks to become one of the leading energy services groups in the UK and
Ireland. We will do this by providing all of the services that companies and organisations need to reduce
their energy usage and cost and implement for them a pathway to Net Zero. To achieve this goal we will
continue to execute our strategy to leverage our existing capabilities to more and more clients and to infill
services we do not currently have by judicious acquisition.
If we can do this, all of our stakeholders will benefit – investors, clients, staff and management and society
as a whole as we help the UK to achieve its legislated Net Zero by 2050 target.
There are four pillars to our growth strategy:
1
2
Organic growth
New revenue channels
3
4
Leveraging existing
EMaaS client
relationships
Expanding capabilities,
eg. renewable energy
solutions
Continued growth in
education as momentum for
LaaS builds.
Using targeted marketing to
expand into new sectors,
such as healthcare, food
services and distribution.
Accelerating growth in
EMaaS as market conditions
favour the larger energy
management providers with
more advanced risk
management capabilities.
Building a new indirect sales
channel through the eLight
App for smaller projects
across education and SME
with our trusted partners.
Launching IoT intelligent
metering to existing energy
management clients via a
monthly subscription model.
Leveraging our position as a
Trusted Adviser to our EMaaS
clients and the deployment of
intelligent metering and
analytics to deliver valued
EEaaS solutions for large and
strategic clients.
40% of Beond’s initial priority
customers are now engaged
in the consideration of LaaS.
Delivering on site
generation (solar) and EV
charging solutions for
existing customers.
The organic growth that our strategy has delivered is complemented by our targeted ‘Buy & Build’ as
we bring incremental capabilities into the Group that we can harness to promote our clients’ journeys
towards Net Zero.
A Group transformed
>
Transitioned from
pureplay LaaS business
to integrated Energy
Services business
Scaled LaaS through
acquisition of RSL,
strengthened Group’s
position in Multi Academy
Trusts and State Schools.
Secured differentiated
Energy Management
platform with acquisitions of
Beond and UtilityTeam.
Strategic investment in
technologyenabled
intelligent smart metering
and analytics business
(MY ZeERO).
Demonstrated strong
and repeated organic
growth in existing
business segments
>
Strong operating execution in
Beond supporting increased
revenues and robust new
business performance.
Advanced discussions with a
number of Beond’s clients for
Group’s LightasaService
(‘LaaS’) solution.
First combined LaaS and
smart metering and analytics
project delivered in June 2021.
Capturing more of customer
wallet and delivering
profitable growth.
>
Acquisitions fully
integrated and
providing opportunities
to build scale
RSL integrated into eLight
delivery platform.
Integration of sales strategy
and teams to maximise cross
sell and upsell opportunities.
Beond fully integrated into
Group structures.
Single, cloud based,
collaboration platform
deployed.
Launch of MY ZeERO
is a key strategic
opportunity across
the Group
Energy Management –
deepen customer
relationships and facilitate
pivot to Energy Management
asaService.
Energy Efficiency –
expected to increase
customer conversion by
enabling ‘share of savings’
performance agreement.
Customer relationships
will be underpinned by
data and analysis.
Annual Report & Accounts 2021 11
eEnergy Group plc
Our two divisions
Energy Management
Energy Efficiency
The Group’s Zero Carbon energy procurement services are
essential and highly valued, as businesses face increasing
pressure to source green energy which can be complex and
time consuming. The Board believes that EMaaS provides
an attractive customer acquisition platform for zero capital
energy reduction solutions.
The Group provides capital free energy conservation
measures (‘ECMs’) where the clients make a fixed payment
over a 5 – 7 year term. Our primary product is LaaS, to
education and commercial & industrial customers in the UK
and Ireland and we are introducing Solar and other solutions
in the coming year.
With the acquisition of UtilityTeam our Energy Management
division has 1,800 customers, over 38,000 meters under
management and manages more than 5.3TWh of energy.
We are a trusted advisor to our customers, and therefore
are well positioned to provide consultancy services on the
transition to Net Zero.
To date the Group has completed over 1,100 LaaS projects
across the UK and Ireland.
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Our MY ZeERO platform provides live, behindthemeter energy consumption data through the cloud, enabling businesses
to pinpoint energy wastage and ECMs.
The Board expects MY ZeERO to (i) increase customer conversion in EEaaS by providing assurances around expected energy
savings, and enabling ‘share of savings’ performance contracts, with customer relationships underpinned by data and analysis;
and (ii) support the conversion of the supplier pays commission model in Energy Management to a subscription based data
and analytics based relationship.
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Business model
eEnergy provides organisations with energy management and
capital free energy efficiency solutions to reduce their carbon
footprint and unlock hidden cost savings.
provide Renewable and Electric Vehicle solutions, which will give
our client’s enhanced energy independence and resilience,
within the coming year.
Through our Energy Management solutions we help our clients
manage their energy supply risk and enable them to transition to
renewable energy through our Zero Carbon Marketplace, our
proprietary allofmarket reverse auction platform. As a trusted
adviser to our clients we are well positioned to provide
consultancy around the transition to Net Zero.
Our intelligent smart metering and analytics platform, MY ZeERO,
captures circuit and asset level consumption data in the cloud
and enables us to pinpoint our client’s energy wastage and
appropriate ECMs. Once we have deployed the MY ZeERO
meters at scale energy intelligence from the analysis of Big Data
will drive our consultancy around energy wastage.
Our Energy Efficiency division enables capital free Energy
Conservation Measures (‘ECMs’) through a pay as you save
business model that unlocks surplus cash savings for our clients.
LED is the natural first ECM and LaaS was the foundation of our
business. We are now extending our solutions to offer broader,
IoT enabled EEaaS and implement control solutions and will
MY ZeERO will enable us to offered measured and verified
‘share of savings’ EEaaS contracts as well as support the
move of EMaaS from a supplier pays model to a client
pays, subscription based service.
Integrated Energy Services Strategy
• Helping businesses achieve Net Zero with an endtoend
Energy Management solution ‘asaService’
• Enabled through a top tier energy procurement platform
• Granular Energy consumption analytics through
IOT smart metering via a subscription service
• Energy intelligence from Big Data and consultancy
around energy wastage(1)
• Energy reduction solutions delivered through LaaS & EEaaS(2)
• Renewable & Electric Vehicle solutions to provide energy
independence and resilience(2)
CY
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EEaaS
(IOT/Controls)
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LaaS
Renewables
(Solar/EV)
Zero Carbon
Energy
Procurement
E
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Intelligent
Smart
Metering &
Analy(cid:2)cs
EMaaS
(Risk
Management/
Hedging/Bureau)
Energy
Consultancy
(Analysis &
Advisory)
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Notes: (1) Once meters deployed at scale; (2) EEaaS and Renewable and EV solutions are future growth opportunities.
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eEnergy Group plc
Annual Report & Accounts 2021
CFO’s report
“FY21 saw the Group drive growth both organically
and through acquisition to a point where we have
reported our maiden profit before exceptional
items. eEnergy was created to deliver on a ‘Buy
& Build’ strategy and to turn a leading provider of
LightasaService into an integrated Energy
Services company that enables its clients to meet
their Net Zero objectives. I’m proud of the way that
we were able not only to weather the COVID19
pandemic, but also to deliver our underlying
growth and strengthen the business. ”
Ric Williams Chief Financial Officer
Group key performance
indicators
• Full year revenue of £13.6 million,
200% growth on FY20 revenue of
£4.5 million, despite impacts of the
COVID19 pandemic, including
unexpected lockdowns
• Organic revenue growth of 75% in
the core eLight business, generating
revenues of £7.9 million
• Adjusted EBITDA(1) of £0.8 million
(FY20 – loss of £1.5 million)
• All core business units profitable on
EBITDA basis for FY21
• Profit before tax and exceptional
items(1) of £0.1 million (2020 –
loss £1.9 million)
• Cash balance at 30 June 2021
of £3.3 million (30 June 2020 –
£1.5 million)
• Net cash (including £0.7 million of
IFRS 16 lease liabilities) at 30 June
2021 was £0.8 million (30 June 2020
– net debt of £0.5 million, including
£0.6 million of lease liabilities)
Financial position and liquidity
The Board and I pay close attention to
our financial position.
In September 2020 we increased our
debt facility by £0.2 million to cover the
costs of acquiring RSL (although the
consideration was all in shares).
In December 2020 we completed
a Placing and raised £3.0 million of net
proceeds to fund the cash component
for the acquisition of Beond and provide
additional working capital for the Group.
The combination of our organic growth
plus the targeted acquisitions made in
the year has propelled us beyond our
breakeven point and with operating
EBITDA in each core business we are
now cash generative across the Group.
The acquisition of UtilityTeam in
September 2021, which is highly cash
generative, further improves our
liquidity and working capital position.
Year end debt of £2.5 million is made
up of £1.8 million of borrowings and
IFRS 16 lease liabilities of £0.7 million.
£0.9 million of the total debt is due to
be repaid within one year and our year
end cash balance was £3.3 million.
In September 2021 we completed a
Placing and raised £11.4 million of net
proceeds to fund the cash consideration
for UtilityTeam, which is also cash
generative in its own right.
We have modelled a number of potential
scenarios that management believe are
reasonably possible, including to reflect
the ongoing impact of COVID19 on
our financial performance and cash
generation. Having considered all of
the potential scenarios the Board is
confident that the Group has sufficient
financial resources and headroom within
its debt covenants for the foreseeable
future should the worst of these
scenarios be realised.
Energy Efficiency division
• Total Contract Value (‘TCV’) secured in
FY21 was up 73% to £12.1 million
(FY19: £7.0 million)
• Order Book of £1.5 million at 30 June
2021 was down 32% (FY20: £2.2
million) although FY20 included
c. £1.2 million of projects delayed into
the summer holidays due to COVID19
• Full year revenue of £11.4 million
(FY20 – £4.5 million), representing
growth of over 150% and organic
growth of 75%
• Gross margin after commissions
increased 350 bps to 34.4% in FY21
from 30.9% in FY20
• 211 projects installed in FY21, 69%
up on 125 installed in FY20
• Average value of each installed
project was £52,232 in FY21, 52%
higher than the average value in of
£34,320 in FY20
The Group’s EEaaS division is anchored
in the core eLight business, which was
strengthened by the acquisition of RSL
on 1 July 2020. The primary focus
during FY21 in both the UK and Ireland
has been on the education sector,
which accounted for approximately
85% of revenue in FY21. The focus on
education has stood the business in
good stead in the face of the challenges
of COVID19. The delay of
approximately £1.2 million of projects
from the first half of calendar 2020 into
the school summer holidays, meant we
enjoyed a very strong first half to the
year. In the fourth quarter, the Group
started to see the benefits of renewed
appetite from the commercial sector
and secured its largest retail contract
with a leading UK health food chain.
(1) Adjusted EBITDA is EBITDA before exceptional items. Exceptional items are primarily transaction related expenses
and the cost of sharebased payments and are detailed in note 7 to the financial statements.
Annual Report & Accounts 2021 13
eEnergy Group plc
Further, the Group secured its first
integrated contract for a leading
recycling business, to provide its LaaS
offering alongside our MY ZeERO smart
metering and intelligent data analytics
solution. After the year end the range of
services was extended to include
Energy ManagementasaService.
The strategic partnership signed in
November 2020 with Venture Lighting,
which provides the Group with eLight
branded technology, has supported
pricing to the Group’s clients as well as
contributed to improved gross margin.
eLight UK (including RSL)
UK revenue grew 380% from £2.2
million to £8.5 million, of which 40%
was earned by RSL and 60% in the core
eLight UK business. This represents
organic growth of 125%.
Gross margin after commissions
improved 500bps to 33.3% (FY20:
28.3%). In part this modest improvement
reflects the transition of RSL into the
eLight operating model and being
able to deploy our Venture Lighting
technology as the year progressed.
Our operating costs increased by
£1.0 million as we increased resources in
delivery to accommodate the 121
projects completed in the year (FY20:
40 projects) as well as continued to
invest in sales and marketing channels.
RSL had a successful year and in FY21
generated more than double the
revenue it had earned in the fifteen
month period prior to being acquired.
This meant that RSL made a strong
contribution to EBITDA but in the
challenging market conditions did not
achieve the profit target to earn the
contingent consideration agreed at
the time of the acquisition. Therefore,
the provision we recorded for that
contingent consideration of £1.4 million
has been released into the income
statement as an exceptional item.
eLight Ireland (including eLight
Northern Ireland)
Revenue grew 26% to £2.9 million
(FY20: £2.3 million) with our successful
entry into Northern Ireland an important
factor in driving that growth. Our typical
project in Northern Ireland is more than
double the value of one in Ireland and
the 90 projects we completed in FY21
was only 6% up on FY20. The transition
from our old funding arrangements to
the €15 million facility committed by
SUSI Partners in August 2020 also
increased the proportion of the value
of each contract that we retained.
During the extended lockdown in
Ireland, we availed ourselves of the Irish
Government support for our staff, to
partially mitigate the impact on revenue
and as a result we reduced our net
operating costs by £0.3 million, a 28%
reduction on FY20.
Energy Management Division
The Group’s Energy Management
business, Beond, was acquired on
15 December 2020.
• Revenue of £2.2 million (since the
acquisition), ahead of the Board’s
expectation at the time of acquisition
• Over 30,000 meters under
management, an increase of 9%
since acquisition
• 82% of all electricity meters transacted
since 1 January have been from
a renewable source
Beond has performed ahead of our
expectation at the time of acquisition
with stronger revenue growth and tight
cost control. In a market with rising
wholesale prices we believe that Beond’s
customers value the risk management
knowledge and advice that Beond
provides to them. As we have focused
Beond on our strategy, we have been
able to sell all of the surplus crypto
currency assets that Beond had
acquired to support its Zero Carbon
marketplace initiative. This gain on
disposal of £0.3 million has been
recorded as other operating income,
within net operating expenses.
Under IFRS where an energy
management contract includes energy
procurement a proportion of the total
contract revenue is recognised at the
point the contract is signed. Energy
management services such as risk
management strategies, bill validation,
reporting and compliance may be
provided under the same contract and
revenue for these services are
recognised as earned over the term of
the contract. On average Beond
recognises 25% of revenue on contract
signing with the balance spread over the
term of the contract and for UtilityTeam
the average is 20%.
Head office costs
Since listing in January 2020 we have
transformed the breadth of the Group’s
activities and have expanded beyond
LaaS into broader Energy efficiency
offerings, entered the Energy
Management market and invested in
intelligent smart metering and analytics.
With the acquisition of Beond in
December 2020 we strengthened the
Board and also the senior management
team as well as developed marketing
campaigns to drive energy efficiency
opportunities in the energy
management client base. As a result
our head office operating costs have
increased 50% to £1.3 million (FY20:
£0.9 million).
During the year we implemented the
Management Incentive Plan (‘MIP’)
which is a long term incentive plan
linked to delivering total shareholder
returns. In accordance with IFRS 2
we are expensing the fair value of the
awards made over their vesting period
and have accordingly charged £0.5
million in the current year, which we
have classified as an exceptional item.
Acquisitions and investments
As we deliver our ‘Buy & Build’ strategy,
we have made three investments during
FY21 and our largest acquisition to date
in September 2021.
RSL
On 1 July 2020 we completed the
acquisition of Renewable Solutions
Lighting Limited (‘RSL’). The initial
consideration was paid entirely in
eEnergy shares and eEnergy loaned
RSL the funds to make a scheduled
repayment of a Director’s loan note.
The fair value of the initial consideration
was £0.8 million.
RSL was a lossmaking business when
we acquired it but came with a healthy
order book and a strong pipeline to
complement our education focused
business in the UK. The contingent
consideration target was based upon
FY21 adjusted EBITDA but despite
more than doubling revenue RSL did
not achieve the minimum target.
We have therefore released the
provision made of £1.4 million to the
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eEnergy Group plc
Annual Report & Accounts 2021
CFO’s report continued
profit and loss account and treated
it as an exceptional item.
Beond
On 15 December 2020 we acquired all
of the share capital of Beond Group
Limited, a Top 20 energy management
business. We used a combination of
eEnergy shares and cash raised through
a Placing and consideration was
£9.1 million. The Placing, which raised
£3.2 million gross, was completed at
10p per share.
MY ZeERO
In April 2021 the Group entered into
various agreements to acquire an initial
33.3% interest in eEnergy Insights Ltd
(‘EIL’, trading as MY ZeERO) which was
increased to 37.5% interest in June
2021. MY ZeERO is a newly formed
specialist smart metering measurement
equipment and analytics platform.
As part of the agreement entered into
in June the Group received nil cost
warrants to raise its interest to 51% of
the equity, subject to certain operational
targets being achieved. In addition,
agreement was reached on a
mechanism to acquire the remaining
49% of the equity under a pre agreed
valuation method after three years.
MY ZeERO acquired certain trade assets
out of the administration process of
Measure My Energy Limited and all
associated intellectual property assets
in April 2021.
We account for our investment in
MY ZeERO as an Associate and recognise
our share of its profit and loss. When
we are able to exercise control of the
Company following the exercise of
our warrants, which is expected to be
during the latter part of 2021, we will
account for the Company as a subsidiary
and fully consolidate its results.
UtilityTeam
On 17 September 2021 we completed
the acquisition of UtilityTeam, another
Top 20 energy management business.
We used a combination of eEnergy
shares and cash raised through
a Placing and initial consideration was
£14.5 million. The Placing, which raised
£12.0 million gross was completed at
15p per share. Contingent consideration
of up to £5.1 million is payable if
UtilityTeam delivers a minimum level
of adjusted EBITDA for the calendar
2021. The contingent consideration is
payable in eEnergy shares and up to
£1.5 million of cash.
Acquisition related costs
In delivering the ‘Buy & Build’ strategy
we have incurred professional fees in
conducting commercial, financial and legal
diligence. We have expensed £1.1 million
of such professional fees as well as £0.1
million of incremental integration costs,
which we have treated as exceptional
items in the profit and loss account.
Borrowings
Group borrowings comprise a term loan
in the eLight Group and CBILS / bounce
back term loans in Beond and RSL. Total
borrowings are £1.8 million, and we
have a further £0.7 million of IFRS16
lease liabilities. £0.9 million of our total
indebtedness is due for repayment
within one year. In addition, UtilityTeam
had, at acquisition, a CBILS loan of
£1.5 million and £0.3 million of IFRS 16
lease liabilities within the net cash
balance at acquisition of £1.0 million.
Working capital
Our two divisions each operate with
a very different working capital tempo.
In Energy Efficiency we work with our
panel of funding partners who typically
purchase or take assignment of the
future receivables for a completed
project. The funding partner takes the
collection risk and we are paid out in
full, typically within five days of
acceptance of the project by the client.
In Energy Management our contracts
are either client pays, typically in equal
instalments over the term of the
contract, or supplier pays, where we
receive a commission based upon the
actual consumption of energy of the
terms of the supply contract from the
energy supplier. A proportion of the
expected total commission is typically
received when the contract is signed or
when the energy supply to the client
starts. Beond, on average, recognises
25% of the total contract value on
contract signing and typically receives
a similar percentage from the energy
supplier, with the balance received over
the remaining term of the contract.
UtilityTeam, on average, recognises 20%
of the total contract value on signing
and typically receives between 3040%
of the contract value in cash in advance
from the energy supplier. Differences
between the revenue recognition and
the underlying invoicing and cash
collection are recorded as accrued
income or deferred revenue in the
balance sheet.
The changing profile of working capital
and cash collection and payment
accounts for the £3.2 million increase
in trade and other receivables to £4.3
million and the £3.8 million increase in
trade and other payables to £7.8 million.
Inventories have remained flat year
on year at £0.4 million, reflecting the
effectiveness of our supply chain
management in the face of significantly
higher volumes of purchases.
The Energy credits in Ireland, which are
accounted for as financial assets at fair
value through profit or loss, have
reduced from £0.4 million to £0.1 million
as the new contract we signed with an
energy supplier has accelerated the rate
at which the value of the energy credits
are realised.
Project funding
Our business model depends upon
working with a range of project funding
partners to finance our client projects
and we actively work to identify the
best partners to work with. There is no
doubt that the COVID19 pandemic
made project funders more cautious
and selective and we have built that
caution into our own credit assessment
processes. In Ireland we have completed
the migration from our principal
historical relationship to the committed
€15 million facility with SUSI Partners,
announced in August 2020, which
increases our share of each contract we
install and provides us with access to 7
or even 10year contracts. In the UK we
continue to enjoy strong relationships
with our primary funding partners and
have created new relationships to
broaden the range of our offering.
Summary
FY21 has been a transformational
year for us in which the Group
demonstrated strong organic growth,
entered the energy management
market and delivered its maiden profit in
line with market expectations, despite
the challenges of the global pandemic.
The Group is now more diversified and
financially robust and well positioned to
deliver our strategy in the coming year.
Ric Williams
Chief Financial Officer
6 October 2021
Case study
Annual Report & Accounts 2021 15
eEnergy Group plc
Holland & Barrett (multisite results)
The energy saving at each store was measured through
clamp meters on the lighting circuits and showed an
average reduction of 83% in consumption.
Holland & Barrett International is one of the world’s leading health and wellness retailers and
the largest in Europe, supplying its customers with a wide range of vitamins, minerals, health
supplements, specialist foods and natural beauty products. With over 145 years of experience
in the industry, their name is a familiar sight in almost every major city and town across the UK.
The solution
eLight worked with Holland & Barratt to develop a new lighting concept for its existing stores
to improve the look and feel whilst maximising the energy saving potential of new LED
technology. Following development of several options the selected solution was installed in six
typical stores to trial the concept. Evaluation of the energy saving was measured using clamp
meter technology on the lighting circuits, and before and after staff surveys were conducted
to assess the effectiveness of the installation process and the resulting lighting effect.
69%
Reduction in
lighting cost
73.6tCO2e
Carbon reduction
over 10 years
£29,893
£298,935
Average net Savings p.a.
10 years net savings
BEFORE
AFTER
“The lighting is absolutely smashing – I couldn’t fault it in any way, shape or form. It’s bright,
clear and even across the store, and customers have commented on how nice and fresh
the store looks. The new adjustable window display lights are really useful to highlight the
changing displays and the staff love the automatically controlled back-of-house lights. The
eLight team were a pleasure to have working in the store and they left the place spotless.”
10 out of 10. Overall, I’m 100% happy. Ash, Store Manager, Richmond
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eEnergy Group plc
Annual Report & Accounts 2021
Principal risks and uncertainties
Risks
We have identified our main risks and are taking appropriate action to prevent, manage and mitigate these.
Risk review
Effective management of risk is an integral part of how the Group operates.
The responsibility for identifying risks and developing appropriate mitigation rests with the management of the business.
The risks detailed below are those that are considered to be the principal risks based upon the likelihood of occurrence and
the severity of the potential impact, in accordance with section 414C of the Companies Act.
Risk area and potential impact
Mitigation
Change* Link to strategy
Competitive markets
The Group operates in a competitive market
place and larger competitors may be able to
invest more resources or bundle services that
may make our solution less compelling to
prospective clients.
Dependence on third party suppliers
The Group procures technology from third
parties and works with a network of preferred
installation partners. Factors outside of the
control of the Group may impact on its
supply chain resulting in lower revenue and /
or profitability.
Dependence upon funding partners
The Group assigns contracts or contract
receivables to its Funding Partners which
ensures each project is cash positive for the
Group. The appetite of the Funding Partner may
vary over time and the availability or rates for
finance may result in lower revenue or profits.
Key personnel
The Group’s business is dependent upon the
relationship it builds and maintains with its
customers and suppliers. These are typically
held by the senior managers and the Directors.
In the event that key personnel leave the Group
it may not be possible to replace them with
staff with the requisite relationships, skills
and experience.
Acquired businesses
The Group’s growth is pursued organically
and via a ‘Buy & Build’ strategy acquiring
complementary businesses in the energy
efficiency and energy management
related sectors.
Some of the Group’s growth is therefore
dependent on the performance of these newly
acquired businesses and how effectively they
are integrated into the Group’s operations
and infrastructure.
The Group closely monitors the activities of
its competitors and potential competitors.
The nature of the relationship with our OEM
partners and the inherent capabilities within
the Group give us flexibility in responding to
market challenges.
< >
Organic Growth;
New Channels;
Leverage Relationships;
Expanding Capabilities.
The Group develops long term and deep
relationships with its key suppliers to closely
align the interests of the supply chain with
the Group.
< >
Organic Growth;
New Channels;
Leverage Relationships.
We have secured a €15 million committed
facility in Ireland from SUSI Partners AG
to provide certainty of funding. We have
extended the panel of funders we work
with in the UK in order to diversify our
Funding relationships. We continue to
explore opportunities to replicate a
committed facility for the UK.
< >
Organic Growth;
New Channels;
Leverage Relationships.
The Directors and most of the senior
management team have equity interests
in the Group or interests in sharebased
incentives which aligns their interest to
the longterm interests of shareholders.
< >
Organic Growth;
New Channels;
Leverage Relationships;
Expanding Capabilities.
The Directors perform extensive
commercial, financial and legal due diligence
on any potential acquisition target. We
may include incentive packages linked
to earn out based performances for
retained management.
New
Organic Growth;
New Channels;
Leverage Relationships;
Expanding Capabilities.
The Group’s management team has
extensive experience of effectively
integrating acquisitions. We develop
a tailored integration plan for each
acquisition we complete with clear
milestones and targets and the progress
of the integration plan is reviewed by
the Board.
Annual Report & Accounts 2021 17
eEnergy Group plc
Risk area and potential impact
Mitigation
Change* Link to strategy
New
Organic Growth;
Leverage Relationships.
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Energy prices
The Group is now involved in energy
management on behalf of its corporate clients.
High gas prices in particular have caused
financial difficulties for multiple suppliers.
With fewer suppliers in the market the Group
could see a reduced market which may result
in fewer opportunities to secure favourable
contracts and in turn margins for its clients.
Revenue recognition
Within the EMaaS business in accordance
with the relevant accounting standard (IFRS15)
we recognise revenue relating to energy
procurement once we have satisfied the
performance obligation, which we judge to
be when the contract is signed. The revenue
we recognise is based upon an estimate of
future income which in turn is based upon
an estimate of future energy consumption by
our client.
Should we overestimate the value of a client
contract we may need to reverse revenue in
future years and, in extemis, refund a supplier
excess commission that has been paid.
As an intermediary the Group is not
directly exposed to high or volatile
energy prices. Energy supply contracts
are typically fixed for a number of years
and clients that are renewing in the
current environment are utilising more of
the Group’s risk management consulting
capability. In the medium term high
energy prices only emphasise the
importance of reducing energy
consumption and the Energy Efficiency
business within the Group will see more
opportunity as a result.
The energy supply market is regulated and
OFGEM operates a ‘Supplier of Last
Resort’ mechanism in the event that an
energy supplier fails. The new supplier
may choose to, but is not required to,
honour the terms of the previous supplier.
We evaluate the terms offered to our
clients and where necessary will arrange
an alternative supplier whose offer will
reflect better value for our client.
We have developed a robust methodology
for estimating future consumption based
upon evidence from energy suppliers and
we then constrain the revenue we
recognise to allow for factors such as
contract breakage or termination and,
perhaps most importantly, reduced
consumption over the life of the contract.
Our process is informed by historical
efficiencies achieved by our client and by
other clients in the same or similar sectors.
We also perform regular reviews of our
client’s actual energy consumption
compared to our expectation and ‘true up’
the revenue accordingly.
We typically only take between 2040%
of the contract value in advance from
the energy supplier and therefore have
a low risk of being required to refund
excess commissions.
* Defines the direction on the change in the risk: new risk (New), risk increased (↑), risk decreased (↓), no change (< >).
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eEnergy Group plc
Annual Report & Accounts 2021
S172 statement
Introduction
Section 172(1) (a) to (f) of the
Companies Act 2006 requires Directors
to take into consideration the interests
of stakeholders in their decision making.
We describe our values and who we
consider to be our key stakeholders in
the Environment, Social & Governance
report. The Board is committed to
engaging with all our key stakeholders
as we believe that this is the best way to
build sustainable value for the business.
The Board of Directors of eEnergy
consider both individually and together
that they have acted in such a way that
would be most likely to promote the
success of the Company in the long
term, taking into consideration the
interests of all the stakeholders
(investors, employees, customers,
suppliers and local communities) as
well as society as a whole and the
environment.
Strategy
Our business model is to provide Energy
Efficiency and Energy Management
solutions that allow our clients to reduce
their carbon footprint, release cash flow
from their utility bills and improve the
quality of their education or work
environment. Our strategy is designed
to deliver meaningful growth to the
Group which in turn supports our
employees, our supply chain partners
and our shareholders as well as reducing
the carbon footprint of our customers in
the UK and Ireland. The strategic
direction of the Group is reviewed
annually, taking into account the threats
and opportunities facing the business
and the interests of stakeholders.
The Group is committed to being a
responsible business and our behaviour
is aligned with the expectations of our
people, clients, investors, communities
and society as a whole.
People
Our people are fundamental to the
delivery of our strategy. For the Group
to succeed we need to manage our
people’s performance and develop and
bring through talent, while ensuring we
operate as efficiently as possible. We
aim to be a responsible employer in our
approach to the pay and benefits our
employees receive. The health, safety
and wellbeing of our employees is one
of our primary considerations in the way
we do business. Promoting a culture of
respect and equal opportunity is as
important as ensuring the right skills fit
for our business.
Engaged and committed employees
are integral to our overall Group
performance and the delivery of great
customer service. We currently share
information via email, Director
presentations and meetings. Our
relatively small size has meant that the
Directors (including the NonExecutive
Directors) have been able to meet
periodically with employees. Whilst this
direct engagement was reduced during
the COVID19 related restrictions the
Directors and senior managers have
maintained that engagement over
video and calls and we are once again
increasing direct engagement in all
our operating locations.
Suppliers
In our core eLight business, we work
closely with our supply chain network in
the UK and Ireland and provide training
to their staff. All installation partner staff
are liveried as eLight and in the UK will
attend our Training Academy in Bury
St Edmunds where we train them in the
eLight way. We work collaboratively
with our key equipment suppliers to
develop products suited to our key
markets and to share with them our
expectations for each coming quarter.
Shareholders
The Board is committed to engaging
openly with our shareholders. We
recognise the importance of a continuing
transparent dialogue, whether with
major institutional investors or private or
employee shareholders. It is important
to us that shareholders understand our
strategy and objectives, so seek to
explain these clearly, listen to feedback
and properly consider any issues or
questions raised.
Last year, in keeping with guidance
provided about the conduct of the
AGM during COVID19 restrictions,
we held a ‘closed’ virtual meeting.
This year guidance is that AGM’s should
be held physically. We welcome all
engagement from shareholders but
given the welfare of all concerned we
encourage shareholders to not
physically attend the meeting and to
submit questions in advance. We will
host an investor presentation on a
virtual platform, to which all current and
prospective shareholders are invited.
Customers
We actively listen to our clients in order
to understand their needs and priorities
and evaluate how we can best achieve
their objectives – whether it be
maximising savings, reducing carbon
emissions or optimising their teaching
or workplace environment. We develop
new product offerings and variations
to enhance customers’ experience of
working with us and have adapted our
contracts to suit the needs of different
client segments.
A responsible business
The Board of Directors aims to ensure
that management operates the business
in a responsible manner, to the high
standards of conduct and good
governance expected of a business such
as ours. We believe that doing so will
contribute to the delivery of our
strategy and consequently, the growth
of the Group.
The Strategic report on pages 1 to 18
was approved by the Board on
6 October 2021 and signed on its
behalf by:
R M Williams
Company Secretary
Annual Report & Accounts 2021 19
eEnergy Group plc
Environment, Social & Governance (‘ESG’) report
Introduction
As a responsible organisation our goal
is to meet the expectations of our
stakeholders while continuing to
contribute towards the sustainability of
the planet and the wellbeing of society.
These expectations increasingly include
requirements to manage our own
business impacts on the environment in
addition to the provision of energy
management and efficiency services to
our customers to help them to use
energy more frugally and to reduce their
own carbon footprints.
As a result, ESG issues have risen
towards the top of our corporate
agenda. This year will see us put a Board
ESG Committee in place which will
oversee the adoption and execution of
an ESG strategy and reporting structure
as we move forward.
Environment and sustainability
We believe in sustainable, and
responsible growth. Decarbonisation
and strategies to achieve net zero are
at the heart of what we do. We aim
to ensure that our activities have a
minimum environmental impact. The
Group notes the 2030 Agenda for
Sustainable Development proposed by
the United Nations and its Sustainable
Development Goals (‘SDGs’). The
energy sector, and in particular, the
private energy sector, has a crucial role
to play in achieving these SDGs. We will
monitor and report against these and
other reporting frameworks such as the
Global Reporting Initiative (‘GRI’) and
those set out by the Sustainability
Accounting Standards Board (‘SASB’)
to provide transparency to our
stakeholders on our performance.
We intend to drive down our
environmental and sustainability agenda
through our workforce and our supply
chain. Each employee (including
contractors) will be held accountable
for ensuring that those employees,
equipment, facilities and resources
within their area of responsibility are
managed to comply with this policy
and to minimise environmental risk.
eEnergy is a proud holder of the London
Stock Exchange’s Green Economy Mark
which recognises the companies and
funds leading the green revolution.
The Mark is awarded to Londonlisted
companies and funds that derive
more than 50% of their revenues
from products and services that are
contributing to environmental objectives
such as climate change mitigation and
adaptation, waste and pollution reduction,
and the circular economy. The Mark
provides investors with a universe of
green economy equities.
Social
We are committed to developing
mutually beneficial partnerships with
our stakeholders throughout the life
cycle of our activities and operations.
Our principal stakeholders include our
shareholders; employees, their families,
and employee representatives; the
communities in which we operate;
our business partners and local and
national governments.
Being a responsible business means
making every possible effort to identify
and eliminate exploitative working
practices wherever they occur in our
own operations and in those of our
supply chain. This means adopting best
practice standards with regards to
modern slavery – human rights, child
labour, forced labour and employee
provision. In addition, the Group
complies and will continue to comply
to the fullest extent with current and
future antibribery legislation.
We will in an accurate, timely and
verifiable manner, consistently disclose
material information about the Group
and its performance. This will be readily
understandable by appropriate
regulators, our stakeholders and the
public. We will endeavour to ensure that
no employee acts in a manner that
would in any way contravene these
principles. The Group will take the
appropriate disciplinary action
concerning any contravention.
Our Labour Policy commits us to
upholding fundamental human rights
and ensuring the implementation of fair
employment practices. The Group is also
committed to creating workplaces free
of harassment and unfair discrimination.
We will comply with all relevant
occupational health and safety laws,
regulations and standards. Where no
standards exist, we will adopt current
best practice.
We aim to have a positive impact on the
people, cultures and communities in
which we operate. We will be respectful
of local people, their values, traditions,
culture and the environment. The
Group will also strive to ensure that
surrounding communities are informed
of, and where possible, involved in,
developments which affect them,
throughout the life cycle of our
operations. We seek to undertake social
investment initiatives in areas of need
where we can make a practical and
meaningful contribution.
Governance
The Group complies with the principles
set out in the Quoted Companies
Alliance Corporate Governance Code
(the ‘QCA Code’). For further
information on how eEnergy applies
the QCA code, please visit:
https://eenergyplc.com/investors/
The Board has established appropriately
constituted Audit & Risk, Remuneration
and Nomination Committees with
formally delegated responsibilities. The
Board of Directors currently comprises
seven members, including two Executive
Directors and five NonExecutive
Directors. The Board has a wealth of
experience in both the energy efficiency
markets and corporate finance. The
structure of the Board ensures that no
one individual or group dominates the
decision making process. Our Executive
Directors are both full time and our
NonExecutive Directors typically
commit at least three days each month
to the Group and more when required.
The Company held 12 board meetings
between 1 July 2020 and 30 June
2021. Attendance was as follows:
David Nicholl 12 of 12
Harvey Sinclair 12 of 12
Ric Williams 12 of 12
Nigel Burton 12 of 12
Andrew Lawley 12 of 12
Derek Myers
(appointed 15 December 2020) 7 of 7
Gary Worby
(appointed 25 January 2021) 7 of 7
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eEnergy Group plc
Annual Report & Accounts 2021
ESG report continued
The meetings provide effective
leadership and overall management of
the Group’s affairs through the schedule
of matters reserved for Board decisions.
This includes the approval of the budget
and business plan, major capital
expenditure, acquisitions and disposals,
risk management policies and the
approval of financial statements. AlI
Directors have access to the advice
and services of the Company’s solicitors
and the Company Secretary, who is
responsible for ensuring that all Board
procedures are followed. Any Director
may take independent professional
advice at the Company’s expense in
the furtherance of their duties.
The Audit & Risk
Committee (‘ARC’)
The ARC, comprises Nigel Burton
(Chairman) and Andrew Lawley, and
meets not less than twice a year. The
committee is responsible for making
recommendations to the Board on the
appointment of auditors and the audit
fee and for ensuring that the financial
performance of the Company is properly
monitored and reported. In addition, the
ARC receives and reviews reports from
management and the auditors relating
to the interim report, the annual report
and accounts and the internal control
systems of the Company. The ARC
considers, manages and reports on
the risks associated with the Company
as well as ensuring the Company’s
compliance with the AIM Rules and the
Market Abuse Regulations concerning
disclosure of inside information.
The Nomination Committee
The Nomination Committee comprises
David Nicholl (Chairman) and Nigel
Burton, and meets at least once each
year. This committee is responsible for
reviewing the structure, size and
composition of the Board based upon
the skills, knowledge and experience
required to ensure the Board operates
effectively as well as being responsible
for the annual evaluation of the
performance of the Board and of
individual Directors. The Nomination
Committee is expected to meet when
necessary to do so. The Nomination
Committee also identifies and
nominates suitable candidates to join
the Board when vacancies arise and
makes recommendations to the
Board for the reappointment of any
NonExecutive Directors.
Internal controls
The Directors acknowledge their
responsibility for the Group’s systems
of internal controls and for reviewing
their effectiveness. These internal
controls are designed to safeguard the
assets of the Group and to ensure the
reliability of financial information for
both internal use and external
publication. Whilst the Directors
acknowledge that no internal control
system can provide absolute assurance
against material misstatement or loss,
they have reviewed the controls that are
in place and are taking the appropriate
action to ensure that the systems
continue to develop in accordance with
the growth of the Group.
The Remuneration Committee
Relations with shareholders
Membership of the Remuneration
Committee during the period consisted
of NonExecutive Directors, Nigel
Burton (Chairman), David Nicholl and
Andrew Lawley, from July 2020 to
January 2021 when he was replaced
by Gary Worby, who served on the
Committee through to the end of the
fiscal year. The Committee is responsible
for the review and recommendation of
the scale and structure of remuneration
for senior management, including any
bonus arrangements or the award of
share options with due regard to the
interests of the shareholders and the
performance of the Company.
The Board attaches great importance
to maintaining good relations with its
shareholders. Extensive information
about the Group’s activities is included
in the Annual Report and Accounts and
Interim Reports, which are published on
the Group’s website and sent to those
shareholders who have specifically
requested to receive paper copies.
Market sensitive information is regularly
released to all shareholders concurrently
in accordance with stock exchange
rules. The Annual General Meeting
provides an opportunity for all
shareholders to communicate with and
to question the Board on any aspect of
the Group’s activities. The Company
maintains a corporate website where
information on the Group is regularly
updated and all announcements are
posted as they are released. The
Company welcomes communication
from both its private and institutional
shareholders.
MAR dealing code and
policy document
The Company has in place a share
dealing code for the Directors and
employees which is appropriate for a
company whose shares are admitted
to trading on AIM and subject to the
Market Abuse Regulations.
Core values
Finally, the Group’s core values drive
every aspect of how we operate as a
business and we set these out below:
• Decarbonisation – To help the
organisations we work with and the
countries in which we operate
towards the goal of carbon neutrality
• Sustainability – To focus on
delivering greater sustainability for
our customers and the wider
community; to lead by example,
in our own operations
• Empathy – To understand and
support the needs and hopes of our
customers, suppliers and employees
as well as the wider societal demand
to improve the environment
• Integrity – To act with integrity at
all times with all those with whom
we are involved, while respecting
commercial and personal confidentiality
• Passion – To operate with passion
and professionalism in a culture
committed to continuous
improvement which delivers a return
on investment for both customers
and our shareholders
Annual Report & Accounts 2021 21
eEnergy Group plc
depends upon the Total Shareholder
Return generated over the MIP’s
measurement period but the maximum
dilution to existing shareholders is
capped at 12.5%. Details of the MIP
are included in note 32 to the
financial statements.
Provision of information
to auditor
So far as each of the Directors is aware
at the time this report is approved:
• there is no relevant audit information
of which the Company's auditor is
unaware; and
• the Directors have taken all steps
that they ought to have taken to
make themselves aware of any
relevant audit information and to
establish that the auditor is aware
of that information.
Auditor
PKF Littlejohn LLP has signified its
willingness to continue in office as
auditor and a resolution to reappoint
them will be put to the Annual
General Meeting.
This report was approved by the
Board on 6 October 2021 and signed
on its behalf.
R M Williams
Company Secretary
Group Directors’ report
The Directors present their report and
the audited financial statements for the
year ended 30 June 2021.
eEnergy Group plc is incorporated in the
United Kingdom and is the ultimate
parent company of the eEnergy Group.
Directors’ indemnity
The Company has provided qualifying
thirdparty indemnities for the benefit
of its Directors. These were provided
during the year and remain in force at
the date of this report.
A summary of key future developments
for the Company and Group are included,
together with an overview of the
business model, in the Strategic Report.
Going concern
The Directors evaluate the application
of the going concern basis having
considered a sensitised trading and cash
flow forecast for the Group for a period
of not less than 12 months from the
date that these financial statements are
approved by the Board. The sensitivities
applied to the forecast include factors
relating to the ongoing uncertainties
arising from the COVID19 pandemic.
The Directors have concluded that it is
appropriate to prepare these financial
statements on the going concern basis.
Dividends
The Directors do not recommend the
payment of a dividend in respect of the
current period (2019 – nil).
Events since the
balance sheet date
Material events since the balance sheet
date are described in note 36 of the
financial statements.
Directors
The Directors of the Company during
the year ended 30 June 2021 and
subsequently were:
• Mr David Nicholl
(NonExecutive Chairman)
• Dr Nigel Burton
(NonExecutive Director)
• Mr Andrew Lawley
(NonExecutive Director)
• Mr Derek Myers (NonExecutive
Director) – appointed 15 December 2020
• Mr Harvey Sinclair (Chief Executive)
• Mr Ric Williams (Chief Financial Officer)
• Mr Gary Worby (NonExecutive
Director) – appointed 26 January 2021
Directors interests
The Directors of the Company who held
office during the year had the following
beneficial interests in the shares of the
Company at the period end:
30 June 30 June
2021 2020
Number Number
(thousands) (thousands)
Nigel Burton 552 552
Andrew Lawley 93 93
Derek Myers 44,683 –
David Nicholl 13,221 13,221
Harvey Sinclair 20,739 20,739
Ric Williams 93 93
Gary Worby 2,312 –
81,693 34,698
The following Directors had also
been granted EMI share options
during the year to acquire the shares
of the Company:
As at 30 June 2021
Number of options (thousands)
Harvey Ric
Sinclair Williams
Exercisable at
6.12p until
30 June 2030 4,085 4,085
4,085 4,085
The total number of share options
held by the Directors at 30 June 2021
was 8,169,920.
In July 2020 the Company implemented
the eEnergy Group Management
Incentive Plan (the ‘MIP’). The MIP
includes the EMI share options
described above. As at 30 June 2021
four Directors, Harvey Sinclair, David
Nicholl, Ric Williams and Andrew
Lawley, participate in the MIP. The
extent to which the MIP converts into
new ordinary shares of the Company
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eEnergy Group plc
Annual Report & Accounts 2021
Statement of Directors’ responsibilities
The Directors are responsible for
keeping adequate accounting records
that are sufficient to show and explain
the Group’s and Company’s transactions
and disclose with reasonable accuracy
at any time the financial position of the
Group and Company and enable them
to ensure that the financial statements
comply with the Companies Act 2006.
They are also responsible for safeguarding
the assets of the Group and Company
and hence for taking reasonable steps for
the prevention and detection of fraud
and other irregularities.
The Directors are responsible for the
maintenance and integrity of the
corporate and financial information
included on the Company’s website.
Legislation in the United Kingdom
governing the preparation and
dissemination of the financial
statements may differ from legislation
in other jurisdictions.
The Company is compliant with AIM Rule
26 regarding the Company’s website.
The Directors are responsible for
preparing the annual report and the
financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to
prepare financial statements for each
financial year. Under that law the
Directors have elected to prepare the
Group and Parent Company financial
statements in accordance with
international accounting standards in
conformity with the requirements of the
Companies Act 2006. Under Company
law the Directors must not approve the
financial statements unless they are
satisfied that they give a true and fair
view of the state of affairs of the Group
and Company and of the profit or loss
of the Group for that period.
In preparing these financial statements,
the Directors are required to:
• select suitable accounting policies
and then apply them consistently;
• make judgments and accounting
estimates that are reasonable
and prudent; and
• prepare the financial statements on
the going concern basis unless it is
inappropriate to presume that the
Group and Company will continue
in business.
Annual Report & Accounts 2021 23
eEnergy Group plc
Directors’ remuneration report
This report to shareholders for the year
ended 30 June 2021 sets out the
Group’s remuneration policies. As the
Company’s shares are listed on the AIM
market of the London Stock Exchange,
the Company is required to report in
accordance with the remuneration
disclosure requirements of the AIM
Rules. The Group is not required to
prepare a Directors’ remuneration report
under Companies Act regulations and
therefore this report may not contain all
the information that would be included
were the Group required to do so.
Composition and role of the
Remuneration Committee
Membership of the Remuneration
Committee during the period consisted
of the NonExecutive Directors, Nigel
Burton (Chairman), David Nicholl and
Andrew Lawley, from July 2020 to
January 2021 when he was replaced
by Gary Worby, who served on the
Committee through to the end of the
fiscal year.
The Remuneration Committee
oversees the remuneration policies and
activities of the Group. The Committee
met five times during the year ended
30 June 2021.
The Committee is responsible for the
review and recommendation of the
scale and structure of remuneration
for senior management, including any
bonus arrangements or the award of
share options with due regard to the
interests of the Shareholders and the
performance of the Company.
Remuneration structure for
Executive Directors
Overview
The Remuneration Committee is
committed to maintaining high standards
of corporate governance and has taken
steps to comply with best practice
insofar as it can be applied practically
given the size of the Group and the
nature of its operations.
Remuneration policy
The Committee aims to ensure that the
total remuneration for the Executive
Directors is soundly based, internally
consistent, market competitive and
aligned with the interests of shareholders.
No Director takes part in decisions
regarding their personal remuneration.
To design a balanced package for the
Executive Directors and senior
management, the Committee considers
the individual’s experience and the
nature and complexity of their work in
order to pay a competitive salary that
attracts and retains management of the
highest quality, while avoiding
remunerating those Directors more than
is necessary. The Committee also
considers the link between the
individual’s remuneration package and
the Group’s longterm performance aims.
Basic salary
Salaries are benchmarked against
businesses acting within the Energy
Services market and comparable quoted
companies. The review process is
undertaken having regard to the
development of the Group and the
contribution that individuals will
continue to make as well as the need
to retain and motivate individuals.
At the time of the RTO in January 2020
the Remuneration Committee agreed
key performance thresholds that
triggered an increase in the basic salaries
of the Executive Directors. The first
threshold was achieved as of 1 July
2020 with the successful acquisition of
RSL. The second threshold, relating to
the achievement of sustainable monthly
operating EBITDA was achieved in
September 2020. The third threshold,
relating to the sustainable underlying
growth and profitability of the Group
was achieved in December 2020.
Performance-related pay
The Chief Executive Officer and
Chief Financial Officer can earn a cash
bonus of up to 100% of their annual
basic salary payable against meeting
personal and business targets as set
out by the Committee at the beginning
of each period.
Service contracts
Each Executive Director has a service
contract with the Group which contains
details regarding remuneration,
restrictions and disciplinary matters.
Executive Directors are appointed by
the Group on contracts terminable on
no more than 12 months’ notice.
NonExecutive Directors
The fees of the Chairman are
determined by the Committee and the
fees of the NonExecutive Directors by
the Board following a recommendation
from the Chairman. The Chairman and
NonExecutive Directors are not
involved in any discussions or decisions
about their own remuneration. Included
in the Salary is an additional payment of
£3,000 to each committee Chairman.
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eEnergy Group plc
Annual Report & Accounts 2021
Directors’ remuneration report continued
Single figure disclosure table
The following table sets out the remuneration of the Company’s Directors who served during the period from 1 July 2020 to
30 June 2021 that was received or receivable.
All Directors who served during the prior period were appointed during the period and the remuneration shown in the table
is for the period from their appointment. All the Directors were appointed on 9 January 2020 other than Dr Nigel Burton,
who was appointed on 16 September 2019.
Salary Pension & FY21 FY20
& fees benefits Bonus(6) Total Total
£’000 £’000 £’000 £’000 £’000
Harvey Sinclair (1) 240 15 51 306 121
Ric Williams (2) 197 7 41 245 106
David Nicholl (3) 51 1 – 52 20
Dr Nigel Burton 45 – – 45 15
Andrew Lawley (4) 39 – – 39 32
Derek Myers (5) (appointed 15 Dec 2020) 12 1 – 13 –
Gary Worby (appointed 26 Jan 2021) 20 1 – 21 –
604 25 92 721 294
(1) Prior to appointment as a Director Harvey Sinclair was the CEO of eLight and was paid £93,000 between 1 July 2019 and 9 January 2020.
(2) Prior to appointment as a Director Ric Williams was engaged by eLight as interim CFO and was paid £121,000 between 1 July 2019 and 9 January 2020.
(3) Prior to appointment as a Director David Nicholl was the Chairman of eLight and was paid £18,000 between 1 July 2019 and 9 January 2020.
(4) Prior to appointment as a Director Andrew Lawley was engaged as a consultant by eLight and was paid £10,000 between 1 July 2019 and 9 January 2020.
(5) Prior to appointment as a Director Derek Myers was remunerated as a Director of Beond Group Limited and received [£28,000] between 1 July 2020 and
15 December 2020.
(6) The bonuses are payable after the year end.
The Remuneration report was approved by the Board on 6 October 2021 and signed on its behalf by:
Nigel Burton
Chairman of the Remuneration Committee
Board of Directors
Annual Report & Accounts 2021 25
eEnergy Group plc
David Nicholl
Non-Executive Chairman
Harvey Sinclair
Chief Executive Officer
Ric Williams
Chief Financial Officer
David is an internationally
experienced and proven
technology leader in Industrial
Internet of Things (‘IIoT’) energy
management and connected
lighting, who has led significant
international businesses as
President and CEO for Philips
Lighting (UK and Ireland),
Rockwell Automation (UK and
Ireland) and Schneider Electric
(Sweden and Romania).
He is currently Executive Vice
President, Southern and Eastern
Europe, of ABB’s Electrification
Business division. David has an
MBA and a degree in electronic
engineering and physics.
Harvey cofounded eLight and
is a proven technology
entrepreneur, who has achieved
a number of successful exits of
business over the last 15 years
across a variety of different
sectors; Software, Internet,
ecommerce and in the Hospitality
sector. In 2000, Harvey founded
The Hot Group Plc (‘THG’),
which listed on AIM in 2002 and
which he led on a successful
consolidation of the online
recruitment market, through a ‘Buy
& Build’ strategy, before leading
the sale to Trinity Mirror in 2006.
Harvey was investment director
for Scottish Enterprise at Design
LED between 2015 and 2019.
Ric was an audit and corporate
finance partner with Deloitte
from 2002 – 2009 and led their
London Capital Markets practice
helping international companies
to list on AIM and the Main
Market. He was CFO and then
CEO of EQPaymaster, the
Pension Administration, Payroll
and software division of Equiniti
Group plc, from 20132019
and the Deputy Group CFO at
Waterlogic, having joined them
to list on AIM, from 20112012.
Prior to joining Deloitte, Ric had
joined Arthur Andersen after
leaving university in 1988,
trained as a chartered accountant
and made partner in 1999.
Dr Nigel Burton
Independent
Non-Executive Director
Following over 14 years as an
investment banker at leading
City institutions including UBS
Warburg and Deutsche Bank,
including as the Managing
Director responsible for the
energy and utilities industries,
Nigel spent 15 years as Chief
Financial Officer or Chief
Executive Officer of a number
of private and public companies.
In addition to the Company,
Nigel is currently a Non
Executive Director of BlackRock
Throgmorton plc and several
AIM listed companies including
DeepVerge plc and Location
Sciences plc.
Andrew Lawley
Non-Executive Director
Derek Myers
Non-Executive Director
Andrew is an experienced private
equity investor and senior strategy
leader specialising in supporting
businesses through periods of
significant scaling, transformation
and M&A. Andrew is a qualified
accountant and, after roles in
corporate finance and corporate
recovery, focussed on private equity
as a Managing Director of the RBS
Special Opportunities Fund LLP.
In 2012 Andrew joined Dixons
Retail Group as Group Strategy
Director and played a leading role
in the merger with Carphone
Warehouse plc, subsequently
becoming integration director and
interim CEO for the services
division. Andrew is currently
Chairman of Hunter Boots Limited
and an Operating Partner with
Three Hills Capital Partners.
Derek joined eEnergy following
the acquisition of Beond Group
in December 2020 initially as
Chief Innovation Officer. Derek
became a NonExecutive Director
in October 2021. He was the
controlling shareholder of Beond,
having held senior management
and Board roles, including
Managing Director and, from
2015, Chief Executive Officer.
Previously, Derek was the
Managing Director of iVentures
Capital, an investment vehicle
that raised funds to invest in
and manage energy market
businesses. Mr. Myers has
previously worked as a strategy
consultant at Accenture and
futures trader at Macquarie Bank,
trading, inter alia, energy products.
Gary Worby
Independent
Non-Executive Director
Gary is a chartered engineer.
He brings considerable strategic
experience having worked in the
energy and carbon sector and
will support the Group Board as
an Independent NonExecutive
Director. His career has included
a variety of executive leadership
roles guiding businesses through
organic growth and Pan
European expansion, acquisitions,
and trade sales. He was MD of
EnergyQuote JHA, one of the
largest energy consultants
acquired by Accenture, MD of
Energy and Carbon Management
acquired by Inspired Energy plc
and currently operates as
Executive Chairman for UDIntel.
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eEnergy Group plc
Annual Report & Accounts 2021
Independent auditor’s report
to the members of eEnergy Group plc
Opinion
We have audited the financial statements of eEnergy Group plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the
year ended 30 June 2021 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Parent
Company Statements of Financial Position, the Consolidated and Parent Company Statements of Cash Flows, the Consolidated
and Parent Company Statements of Changes in Equity and notes to the financial statements, including significant accounting
policies. The financial reporting framework that has been applied in their preparation is applicable law and international
accounting standards in conformity with the requirements of the Companies Act 2006 and as regards the Parent Company
financial statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at
30 June 2021 and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006;
• the Parent Company financial statements have been properly prepared in accordance with international accounting standards
in conformity with the requirements of the Companies Act 2006 and as applied in accordance with the provisions of the
Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs’ (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements
section of our report. We are independent of the Group and Parent Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and
we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Group’s and Parent
Company’s ability to continue to adopt the going concern basis of accounting included obtaining an understanding of the basis
of preparation of Board approved budgets and cash flow forecasts, assessing the accuracy of historic forecasts, testing the key
underlying assumptions and performing sensitivity analysis on possible changes which could impact the available headroom,
including loan covenant compliance. We also identified events subsequent to the yearend date impacting upon going concern.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group’s or Parent Company’s ability to continue as a going concern
for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections
of this report.
Our application of materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent
of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of
misstatements, both individually and on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the Group financial statements as a whole to be £148,000
(2020: £82,000). This was calculated at the average of 2% of revenue and 5% of EBITDA excluding exceptional items.
Benchmarks of revenue and adjusted EBITDA have been selected as we consider these to be the most significant determinant’s
of the Group’s performance for shareholders. The materiality benchmarks are unchanged from the prior year.
The Parent Company materiality was £147,500 (2020: £31,000) based upon 5% of the adjusted loss before tax in order to
ensure adequate coverage of expenditure.
Annual Report & Accounts 2021 27
eEnergy Group plc
Performance materiality is the application of materiality at the individual account or balance level set to reduce to an
appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for
the financial statements as a whole. Performance materiality for the Group and Parent Company was set at 70% (2020: 70%) of
overall materiality, equating to £103,600 and £103,250 respectively, based upon our assessment of the risk of misstatement
through substantive testing.
Component materiality for significant and/or material subsidiary undertakings ranged from £69,000 to £13,000 (2020: £33,000
to £11,000).
We agreed with the Audit Committee that we would report to them all individual audit differences identified during the course
of our audit in excess of £7,400 (2020: £4,100) for the Group and £7,375 (2020: £1,550) for the Parent Company.
Our approach to the audit
In designing our audit, we determined materiality, as above, and assessed the risk of material misstatement in the Group and
Parent Company financial statements. In particular, we looked at where the Directors made subjective judgements, for example in
respect of significant accounting estimates. Further details are included in the key audit matters section of our report. We also
addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the
Directors that represented a risk of material misstatement due to fraud.
The accounting records and financial statements of two material subsidiary undertakings were audited by a component auditor
in Ireland under the oversight of us as Group auditor in accordance with International Standard on Auditing 600, based upon
component materiality and risk to the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in
the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How the scope of our audit responded to the key audit matter
Revenue recognition
Revenue for the year ended 30 June 2021
amounted to £13,596,000 and details of the
related judgements and estimates are disclosed
in note 2.23.
The Group has various revenue streams comprising
LightasaService (‘LaaS’), energy management
services, capital expenditure contracts and trading
of energy credits. Each revenue stream has
different contractual and performance obligations
which in turn require separate revenue recognition
policies and assumptions requiring judgement
and estimation.
Our testing in this area included the following:
• We updated our understanding of the internal control environment in
operation for the significant income streams, and documented the
systems and control environment for the new revenue stream within
Beond Group Limited. We undertook walkthroughs to ensure that the
key controls within these systems had been operating in the period
under audit;
• Undertook substantive transactional testing of income recognised in
the financial statements, including deferred and accrued income
balances recognised at year end;
• Reviewed the audit working papers of the component auditor and
discussed their work and findings with the component audit partner
and manager;
Revenue recognition is therefore a key focus
for our audit.
• Reviewed post year end receipts and credit notes to ensure
completeness of income recorded in the accounting period;
• Tested revenue cutoff having regard to performance obligations under
the contracts, including installation, subcontractor and material costs;
• Reviewed revenue contracts to understand the substance of
arrangements with finance partners and SPVs and ensure these are
accounted for appropriately; and
• Ensured revenue is accounted for and disclosed in accordance with
IFRS 15.
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eEnergy Group plc
Annual Report & Accounts 2021
Independent auditor’s report
continued
Key audit matter
How the scope of our audit responded to the key audit matter
Acquisition accounting in accordance with
IFRS 3 ‘Business Combinations’
During the year, the Group completed two
subsidiary acquisitions:
• In July 2020, the Group expanded its LaaS
offering to academy and state schools through
the acquisition of Renewable Solutions Lighting
Limited (‘RSL’); and
• In December 2020, the Group completed the
acquisition of Beond Group Limited (‘Beond’),
a UKbased renewable energy consulting and
smart procurement business.
Goodwill and other intangible assets arising during
the year ended 30 June 2021 amounted to
£11,382,000 and details of the related judgements
and estimates are disclosed in notes 2.23 and 14.
There is a risk that the valuation of the acquired
assets and liabilities, as well as purchase
consideration where judgement and estimation is
required when valuing contingent elements, has
not been calculated correctly and is therefore
materially misstated.
The identification and valuation of separately
identifiable intangible assets, including their
estimated useful economic lives, involves
judgement and assumptions.
There is also a risk that the accounting entries
regarding business combinations have not been
recorded appropriately in accordance with IFRS 3,
and that the disclosures in the financial statements
surrounding the acquisitions are incomplete.
Acquisition accounting for business combinations
is therefore a key focus for our audit.
Our work in this area included:
• Review of the key contractual agreements and terms entered into in
connection with the acquisitions of RSL and Beond, to include in
particular the Share Purchase Agreements and any accompanying
management papers. The majority of this work was previously
undertaken at the interim review stage;
• Discussions by the audit team with the preparer of the Purchase Price
Allocation (‘PPA’) report, KPMG LLP, to obtain an understanding of
the methods and assumptions used within the report, including
compliance with the requirements of IFRS 3 and IFRS 13;
• Review of, and providing challenge to, key assumptions and methods
included within the PPA exercise by Management and Management’s
expert (KPMG LLP) in respect of the Beond Group;
• Assessing the competence, capabilities and objectivity of the preparer
of the PPA report (KPMG LLP);
• Substantively testing the cost of investment balances within the
Parent Company’s individual financial statements;
• Assessing whether any reporting framework differences arise between
UK GAAP (FRS 102) and IFRS for the two acquired companies,
including review of, and challenge to, management’s and
management’s expert’s work in this area;
• Evaluating management’s goodwill impairment review and assessed
whether there are any indicators of impairment for other intangible
assets, which are subject to amortisation;
• Discussion with management on the basis for calculating the deferred
and contingent elements of the purchase consideration (RSL) and
ensuring the rationale is in accordance with IFRS; and
• Review of the disclosures made in the financial statements to ensure
compliance with IFRS 3 and IFRS 13.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our
auditor’s report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion
on the Group and Parent Company financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to
read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a
material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Annual Report & Accounts 2021 29
eEnergy Group plc
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the
course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the Parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the statement of Directors’ responsibilities, the Directors are responsible for the preparation of the
Group and Parent Company financial statements and for being satisfied that they give a true and fair view, and for such internal
control as the Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Group and Parent Company financial statements, the Directors are responsible for assessing the Group and the
Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud is detailed below:
• We obtained an understanding of the Group and Parent Company and the sector in which they operate to identify laws and
regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our
understanding in this regard through discussions with management, and application of cumulative audit knowledge and
experience of the sector.
• We determined the principal laws and regulations relevant to the Group and Parent Company in this regard to be those
arising from IFRSs, the Companies Act 2006 and the AIM Rules.
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eEnergy Group plc
Annual Report & Accounts 2021
Independent auditor’s report
continued
• We designed our audit procedures to ensure the audit team considered whether there were any indications of noncompliance
by the Group and Parent Company with those laws and regulations. These procedures included, but were not limited to
enquiries of management and review of legal / regulatory correspondence.
• We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to
the nonrebuttable presumption of a risk of fraud arising from management override of controls, that the estimates,
judgements and assumptions applied by management regarding revenue recognition and the assessment of impairment of
goodwill and intangible assets gave the greatest potential for management bias.
• We addressed the risk of fraud arising from management override of controls by performing audit procedures which included,
but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the
business rationale of any significant transactions that are unusual or outside the normal course of business.
• We communicated the risk of noncompliance with laws and regulations, including fraud, to the component auditor who
incorporated this into their testing, which was reviewed by the Group audit team.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to
a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that
compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will
be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to
fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone, other than the Company and the Company’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
David Thompson (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
London E14 4HD
6 October 2021
Annual Report & Accounts 2021 31
eEnergy Group plc
Consolidated statement of comprehensive income
For the year to 30 June 2021
Year to Year to
30 June 2021 30 June 2020
Note £’000 £’000
Continuing operations
Revenue from contracts with customers 5 13,596 4,501
Cost of sales 6 (8,059) (3,109)
Gross profit 5,537 1,392
Operating expenses 7 (4,955) (4,237)
Included within operating expenses are:
– Exceptional items 7 248 1,320
Adjusted operating expenses (4,707) (2,917)
Adjusted earnings before interest, taxation, depreciation and amortisation 830 (1,525)
Earnings before interest, taxation, depreciation and amortisation 582 (2,845)
Depreciation and amortisation (333) (72)
Finance costs – net 11 (426) (277)
Loss before tax (177) (3,194)
Income tax 10 205 –
Profit (loss) for the year from continuing operations
attributable to the owners of the Company 28 (3,194)
Other comprehensive income – items that may be reclassified
subsequently to profit and loss
Change in the fair value of other current assets 34 –
Translation of foreign operations 102 (82)
Total other comprehensive profit (loss) 136 (82)
Total comprehensive profit (loss) for the year attributable to
the owners of the Company 164 (3,276)
Basic and diluted earnings (loss) per share from continuing operations (pence) 12 0.01p (2.96)p
The accompanying notes on pages 37 to 73 form part of these financial statements.
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eEnergy Group plc
Annual Report & Accounts 2021
Consolidated statement of financial position
As at 30 June 2021
As at As at
30 June 2021 30 June 2020
Note £’000 £’000
Noncurrent assets
Property, plant and equipment 13 80 130
Intangible assets 14 11,693 211
Rightofuse assets 20 610 538
Deferred tax asset 24 415 –
Investment in associate 21 155 –
Total noncurrent assets 12,953 879
Inventories 17 371 356
Trade and other receivables 16 4,276 1,073
Other current assets 47 –
Financial assets at fair value through profit or loss 25 140 414
Cash and cash equivalents 18 3,332 1,478
Total current assets 8,166 3,321
Total assets 21,119 4,200
Noncurrent liabilities
Lease liability 20 434 506
Borrowings 22 1,245 1,120
Deferred tax liability 24 415 –
Other noncurrent liabilities 23 468 –
Total noncurrent liabilities 2,562 1,626
Current liabilities
Trade and other payables 19 7,819 3,955
Lease liability 20 264 76
Borrowings 22 601 304
Total current liabilities 8,684 4,335
Total liabilities 11,246 5,961
Net assets (liabilities) 9,873 (1,761)
Equity attributable to owners of the parent
Issued share capital 26 16,071 15,725
Share premium 26 33,014 22,375
Other reserves 27 601 82
Reverse acquisition reserve 3 (35,246) (35,246)
Foreign currency translation reserve (13) (115)
Accumulated losses (4,554) (4,582)
Total equity 9,873 (1,761)
The accompanying notes on pages 37 to 73 form part of these financial statements.
These financial statements were approved by the Board of Directors and authorised for issue on 6 October 2021 and were
signed on their behalf:
R M Williams – Director
Company registered number: 05357433
Annual Report & Accounts 2021 33
eEnergy Group plc
Company statement of financial position
As at 30 June 2021
As at As at
30 June 2021 30 June 2020
Note £’000 £’000
Noncurrent assets
Intangible assets 13 18 –
Investment in associate 21 155 –
Investment in subsidiary 15 17,947 6,574
Total noncurrent assets 18,120 6,574
Loan to subsidiaries 579 480
Trade and other receivables 16 153 26
Cash and cash equivalents 18 1,187 909
Total current assets 1,919 1,415
Total assets 20,039 7,989
Current liabilities
Trade and other payables 19 1,003 368
Loans from subsidiaries 1,452 –
Total current liabilities 2,455 368
Total liabilities 2,455 368
Net assets 17,584 7,621
Equity attributable to owners of the parent
Issued share capital 26 16,071 15,725
Share premium 26 33,014 22,375
Other reserves 27 567 82
Accumulated losses (32,068) (30,561)
Total equity 17,584 7,621
A separate income statement for the Parent Company has not been presented, as permitted by section 408 of the Companies
Act 2006. The Company’s loss for the period was £1,507,000 (2020: loss of £635,000).
The accompanying notes on pages 37 to 73 form part of these financial statements.
These financial statements were approved by the Board of Directors and authorised for issue on 6 October 2021 and were
signed on their behalf:
R M Williams – Director
Company registered number: 05357433
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eEnergy Group plc
Annual Report & Accounts 2021
Statements of cashflows
For the year ended 30 June 2021
Group Company
Year to Year to Year to Year to
30 June 2021 30 June 2020 30 June 2021 30 June 2020
Note £’000 £’000 £’000 £’000
Cash flow from operating activities
Operating profit (loss) – continuing operations 28 (3,194) (1,507) (635)
Adjustments for:
– Depreciation and amortisation 332 72 – –
– Finance cost (net) 311 277 (3) 3
– Shares and warrants issued to settle expenses 301 108 301 108
– Sharebased payments 485 – 485 –
– Gain on disposal of subsidiary – Metaleach – – – (150)
– Share of loss in associate 34 – 34 –
– Finance charge on lease liabilities 65 53 – –
– Foreign exchange movement 34 (14) – –
– Gain on derecognition of contingent consideration (1,444) – (1,444) –
– Reverse acquisition sharebased payment expense 3 – 1,052 – –
Operating cashflow before working capital movements 147 (1,646) (2,134) (674)
(Increase) decrease in trade and other receivables (2,406) (998) (127) 98
Increase (decrease) in trade and other payables 2,496 1,236 504 148
Increase in inventories (23) (187) – –
Net cash inflow (outflow) from operating activities 214 (1,595) (1,757) (428)
Cash flow from investing activities
Amounts received from (paid to) Group undertakings – – 1,299 (578)
Acquisition of subsidiaries (2,395) – (2,395) –
Cash acquired on acquisition of subsidiaries 1,218 105 – –
Cash from exercise of options in acquired business 521 – – –
Proceeds from disposal of subsidiary – 150 – 150
Expenditure on intangible assets (217) – (18)
Purchase of property, plant and equipment (134) (82) – –
Net cash inflow (outflow) from investing activities (1,007) 173 (1,114) (428)
Cash flows from financing activities
Interest (paid) received (319) (225) – –
Repayment of lease liabilities (163) (40) – –
Proceeds from the issue of share capital, net of issue costs 3,149 1,664 3,149 1,664
Proceeds from loans and borrowings 294 1,342 – –
Repayment of borrowings (314) – – –
Net cash inflow from financing activities 2,647 2,741 3,149 1,664
Net increase (decrease) in cash & cash equivalents 1,854 1,319 278 808
Effect of exchange rates on cash – 14 – –
Cash & cash equivalents at the start of the period 1,478 145 909 101
Cash & cash equivalents at the end of the year 18 3,332 1,478 1,187 909
The non cash consideration issued to acquire subsidiaries during the year was £9.0 million and is disclosed for each acquisition
in note 28.
Refer to note 31 for net debt reconciliation.
The accompanying notes on pages 37 to 73 form part of these financial statements.
Annual Report & Accounts 2021 35
eEnergy Group plc
Consolidated statement of changes in equity
For the year ended 30 June 2021
Reverse Foreign
Share Share acquisition Other currency Accumulated
capital premium reserve reserves reserve losses Total equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 30 June 2019 18 – – – (33) (1,388) (1,403)
Other comprehensive loss – – – – (82) – (82)
Loss for the year – – – – – (3,194) (3,194)
Total comprehensive loss for the year
attributable to equity holders of the parent – – – – (82) (3,194) (3,276)
Shares issued during the year 51 – – – – – 51
Transfer to reverse acquisition reserve (69) – 69 – – – –
Recognition of plc equity at acquisition date 15,376 14,468 (28,741) – – – 1,103
Issue of shares for acquisition of subsidiary 263 6,311 (6,574) – – – –
Issue of shares for cash 80 1,920 – – – – 2,000
Issue of shares in settlement of fees 6 144 – – – – 150
Issue of warrants – – – 82 – – 82
Cost of share issue – (468) – – – – (468)
Total transactions with owners 15,707 22,375 (35,246) 82 – – 2,918
Balance at 30 June 2020 15,725 22,375 (35,246) 82 (115) (4,582) (1,761)
Other comprehensive loss – – – – 102 – 102
Change in fair value of other current assets – – – 34 – – 34
Profit for the year – – – – – 28 28
Total comprehensive profit for the year
attributable to equity holders of the parent – – – 34 102 28 164
Issue of shares for cash 96 3,104 – – – – 3,200
Issue of shares for acquisition of subsidiary 235 7,299 – – – – 7,534
Issue of shares in settlement of fees 9 293 – – – – 302
Sharebased payment – – – 485 – – 485
Exercise of warrants 6 159 – – – – 165
Cost of share issue – (216) – – – – (216)
Total transactions with owners 346 10,639 – 485 – – 11,470
Balance at 30 June 2021 16,071 33,014 (35,246) 601 (13) (4,554) 9,873
The accompanying notes on pages 37 to 73 form part of these financial statements.
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eEnergy Group plc
Annual Report & Accounts 2021
Company statement of changes in equity
For the year ended 30 June 2021
Share Share Other Accumulated Total
capital premium reserves losses equity
£’000 £’000 £’000 £’000 £’000
At 31 December 2019 15,376 14,468 – (29,926) (82)
Loss for the period – – – (635) (635)
Total comprehensive loss for the period
attributable to equity holders of the parent – – – (635) (635)
Issue of shares for acquisition of subsidiary 263 6,311 – – 6,574
Issue of shares for cash 80 1,920 – – 2,000
Issue of shares in lieu of cash 6 144 – – 150
Issue of warrants in lieu of cash – – 82 – 82
Cost of share issue – (468) – – (468)
Total transaction with owners 349 7,907 82 – 8,338
Balance at 30 June 2020 15,725 22,375 82 (30,561) 7,621
Loss for the year – – – (1,507) (1,507)
Total comprehensive loss for the year
attributable to equity holders of the parent – – – (1,507) (1,507)
Issue of shares for cash 96 3,104 – – 3,200
Issue of shares for acquisition of subsidiary 235 7,299 – – 7,534
Issue of shares in settlement of fees 9 293 – – 302
Sharebased payment – – 485 – 485
Exercise of warrants 6 159 – – 165
Cost of share issue – (216) – – (216)
Total transaction with owners 346 10,639 485 – 11,470
Balance at 30 June 2020 16,071 33,014 567 (32,068) 17,584
The accompanying notes on pages 37 to 73 form part of these financial information.
Annual Report & Accounts 2021 37
eEnergy Group plc
Notes to the financial information
For the year ended 30 June 2021
1. General information
eEnergy Group plc (‘the Company’) is a public limited company with its shares traded on the AIM Market of the London Stock
Exchange. eEnergy Group plc is a holding company of a group of companies (the ‘Group’), the principal activities of which are
the provision of Energy Efficiency and Energy Management Services in both the United Kingdom and Ireland.
The Company is incorporated and domiciled in England and Wales with its registered office at Salisbury House, London Wall,
London, England, EC2M 5PS. The Company’s registered number is 05357433.
These consolidated financial statements were approved for issue by the Board of Directors on 6 October 2021.
2. Accounting policies
IAS 8 requires that management shall use its judgement in developing and applying accounting policies that result in information
which is relevant to the economic decisionmaking needs of users, that are reliable, free from bias, prudent, complete and
represent faithfully the financial position, financial performance and cash flows of the entity.
2.1 Basis of preparation
The financial statements have been prepared in accordance with international accounting standards (‘IFRS’) in conformity with
the requirements of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention as modified by financial assets at fair value
through profit or loss and other comprehensive income, and the recognition of net assets acquired under the reverse acquisition
at fair value.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts in the financial statements. The areas involving a higher
degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements, are
disclosed in note 2.23.
The financial statements present the results for the Group and Parent Company for the year ended 30 June 2021. The
comparative period is for the year ended 30 June 2020. The comparative period for the Parent Company financial statements
comprise the six months ended 30 June 2020.
The principal accounting policies are set out below and have, unless otherwise stated, been applied consistently in the financial
statements. The consolidated financial statements are prepared in Pounds Sterling, which is the Group’s functional and
presentation currency, and presented to the nearest £’000.
2.2 New standards, amendments and interpretations
The Group and parent Company have adopted all of the new and amended standards and interpretations issued by the
International Accounting Standards Board that are relevant to its operations and effective for accounting periods commencing
on or after 1 July 2020.
The following new IFRS standards and / or amendments to IFRS standards were adopted for the first time during the year, none
of which had a material impact on the financial statements:
• Amendments to IFRS 3: Business Combinations (effective 1 January 2020)
• Amendments to IAS 1 and IAS 8: Definition of Material (effective 1 January 2020)
• Amendments to IFRS 9, IAS 39 and IFRS 17: Interest Rate Benchmark Reform (effective 1 January 2020)
No standards or Interpretations that came into effect for the first time for the financial year beginning 1 July 2020 have had an
impact on the Group or Company.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
2. Accounting policies continued
2.3 New standards and interpretations not yet adopted
At the date of approval of these financial statements, the following standards and interpretations which have not been applied in
these financial statements were in issue but not yet effective (and in some cases have not yet been adopted by the UK):
• Amendments to IAS 1: Presentation of Financial Statements – Classification of Liabilities as Current or Noncurrent (effective
date not yet confirmed)*
• Amendments to IFRS 3: Business Combinations – Reference to Conceptual Framework (effective 1 January 2022)*
• Amendments to IAS 16: Property, Plant and Equipment (effective 1 January 2022)*
• Amendments to IAS 37: Provisions, Contingent Liabilities and Contingent Assets (effective 1 January 2022)*
• Annual Improvements to IFRS Standards 20182020 Cycle (effective 1 January 2022)*
• Amendments to IAS 8: Accounting Policies, Changes to Accounting Estimates and Errors (effective date not yet confirmed)*
• Amendments to IAS 12: Income Taxes – Deferred Tax arising from a Single Transaction (effective date not yet confirmed)*
*subject to UK endorsement
The effect of these new and amended Standards and Interpretations which are in issue but not yet mandatorily effective is not
expected to be material.
2.4 Going concern
The financial information has been prepared on a going concern basis, which assumes that the Group and Company will continue
in operational existence for the foreseeable future. In assessing whether the going concern assumption is appropriate, the
Directors have taken into account all relevant information about the current and future position of the Group and Company,
including the current level of resources and the ability to trade within the terms and covenants of its loan facility over the going
concern period of at least 12 months from the date of approval of the financial statements. The eEnergy Group meets its
working capital requirements from its cash and cash equivalents and its loan facilities, which are secured by debentures over
the trading subsidiaries and their assets.
The Directors note that COVID19 continues to have a significant negative impact on the global economy and global supply
chain. Having prepared budgets and cash flow forecasts covering the going concern period which have been stress tested for
the negative impact of possible scenarios, the Directors believe the Group has sufficient resources to meet its obligations for a
period of at least 12 months from the date of approval of these financial statements. Discretionary expenditure will be curtailed,
if necessary, in order to preserve cash for working capital purposes and ensure compliance with covenants.
Taking these matters into consideration, the Directors consider that the continued adoption of the going concern basis is
appropriate having prepared cash flow forecasts for the relevant period. The financial statements do not reflect any adjustments
that would be required if they were to be prepared other than on a going concern basis.
2.5 Basis of consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control ceases. Note 3 provides information on the consolidation of eLight
Group Holdings Limited and the application of the reverse acquisition accounting principles.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the
acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree
and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability
resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any
noncontrolling interest in the acquire on an acquisitionbyacquisition basis, either at fair value or at the noncontrolling
interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets.
Acquisitionrelated costs are expensed as incurred.
Annual Report & Accounts 2021 39
eEnergy Group plc
2. Accounting policies continued
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised either in profit
or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not remeasured,
and its subsequent settlement is accounted for within equity.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated.
2.6 Investment in associate
The Group’s interest in eEnergy Insights Ltd (‘EIL’) is disclosed in note 21. This investment was included in the financial
statements and accounted for using the equity method. The Group’s share of the gains or losses of EIL are included within the
statement of comprehensive income, except for exchange gains and losses on translation.
EIL prepares financial statements in accordance with the Group’s accounting policies.
2.7 Foreign currency translation
(i) Functional and presentation currency
Items included in the individual financial statements of each of the Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are
presented in £ Sterling, which is the Company’s presentation and functional currency. The individual financial statements of each
of the Company’s wholly owned subsidiaries are prepared in the currency of the primary economic environment in which it
operates (its functional currency). IAS 21 The Effects of Changes in Foreign Exchange Rates requires that assets and liabilities be
translated using the exchange rate at period end, and income, expenses and cash flow items are translated using the rate that
approximates the exchange rates at the dates of the transactions (i.e. the average rate for the period).
(ii) Transactions and balances
Transactions denominated in a foreign currency are translated into the functional currency at the exchange rate at the date of the
transaction. Assets and liabilities in foreign currencies are translated to the functional currency at rates of exchange ruling at the
balance sheet date. Gains or losses arising from settlement of transactions and from translation at periodend exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement for the period.
(iii) Group companies
The results and financial position of all the Group entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet;
• income and expenses for each income statement are translated at the average exchange rate; and
• all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to
shareholders’ equity. When a foreign operation is partially disposed or sold, exchange differences that were recorded in equity
are recognised in the income statement as part of the gain or loss on sale.
2.8 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
makers. The chief operating decision maker, who are responsible for allocating resources and assessing performance of the
operating segments, has been identified as the executive Board of Directors.
2.9 Impairment of nonfinancial assets
Nonfinancial assets and intangible assets not subject to amortisation are tested annually for impairment at each reporting date
and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment review is based on discounted future cash flows. If the expected discounted future cash flow from the use of
the assets and their eventual disposal is less than the carrying amount of the assets, an impairment loss is recognised in profit or
loss and not subsequently reversed.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash
flows (cash generating units or ‘CGUs’).
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
2. Accounting policies continued
2.10 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, and demand deposits with banks and other financial institutions
and bank overdrafts.
2.11 Other current assets
Other current assets are digital assets, including tokens and cryptocurrency, which do not qualify for recognition as cash and cash
equivalents or financial assets, and have an active market which provides pricing information on an ongoing basis. Other current
assets are initially measured at fair value. Subsequent gains and losses on measurement are recognised in other comprehensive
income except for impairment losses which are recognised directly in profit or loss. This treatment is consistent with the
revaluation model applied to intangible assets in accordance with IAS 38. Where a digital asset is disposed of, the cumulative gain
or loss previously recognised in other comprehensive income is reclassified to other operating income or expense within profit or
loss. Digital assets are included in current assets as management expect them to be used within the normal operating cycle or
otherwise disposed of.
2.12 Financial instruments
IFRS 9 requires an entity to address the classification, measurement and recognition of financial assets and liabilities.
a) Classification
The Group classifies its financial assets in the following measurement categories:
• those to be measured at amortised cost; and
• those to be measured subsequently at fair value through profit or loss.
The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the
cash flows.
The Group classifies financial assets as at amortised cost only if both of the following criteria are met:
• the asset is held within a business model whose objective is to collect contractual cash flows; and
• the contractual terms give rise to cash flows that are solely payment of principal and interest.
b) Recognition
Purchases and sales of financial assets are recognised on trade date (that is, the date on which the Group commits to purchase or
sell the asset). Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
c) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss (‘FVPL’), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Debt instruments
Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments
of principal and interest, are measured at amortised cost. Interest income from these financial assets is included in finance
income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss
and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as a
separate line item in the statement of profit or loss.
d) Impairment
The Group assesses, on a forward looking basis, the expected credit losses associated with any debt instruments carried at
amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses
to be recognised from initial recognition of the receivables.
The Group classifies energy credits at fair value through profit or loss. Information about the method used in determining fair
value is provided in note 25.
Annual Report & Accounts 2021 41
eEnergy Group plc
2. Accounting policies continued
2.13 Revenue recognition
Under IFRS 15, Revenue from Contracts with Customers, five key points to recognise revenue have been assessed:
Step 1: Identity the contract(s) with a customer;
Step 2: Identity the performance obligations in the contract;
Step 3: Determine the transaction price;
Step 4: Allocate the transaction price to the performance obligations in the contract; and
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic
benefits will flow to the entity, and specific criteria have been met for each of the Group’s activities, as described below.
The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and
the specifics of each arrangement. Where the Group makes sales relating to a future financial period, these are deferred and
recognised under ‘accrued expenses and deferred income’ on the Statement of Financial Position.
The Group derives revenue from the transfer of goods and services overtime and at a point in time in the major product and
service lines detailed below.
Energy EfficiencyasaService
Revenues from external customers come from the provision of LightasaService (‘LaaS’) agreements where the Group delivers
lighting outcomes to its customers over time and from the supply and installation of lighting equipment. The Group may assign the
majority or all of its right and obligations under a LaaS agreement to a Finance Partner once the lighting equipment is installed.
a) Light-as-a-Service
The Group will undertake to provide Lighting Outcomes to customers over the term of a contract, typically 3, 5 or 7 years. The
Group will design the installation of lighting equipment to meet the Lighting Outcomes over the contract term, source and then
install that equipment. Once the installation has been accepted the customer will make payments monthly over the contract
term. Where a contract is assigned to a Finance Partner then revenue will be recognised at the point of assignment. Where a
contract is not assigned the transaction price will be adjusted for the time value of money and the revenue will be recognised
rateable over the term.
Included within the LaaS contract is an undertaking to ensure that the agreed Lighting Outcomes are delivered and this may
require the repair or replacement of faulty products. This performance obligation is not a material element of the LaaS contract
and accordingly revenue is not separately recognised and an accrual for the expected future costs is recognised pro rata to the
revenue that is recognised.
b) Supply and installation of lighting equipment
The Group will supply and install lighting equipment for customers. Payment of the transaction price is typically due in
instalments between the customer order and the installation being accepted or upon installation acceptance. Revenue is only
recognised upon installation acceptance as the Group does not consider the supply of equipment and its installation as distinct
performance obligations.
Cost of sales
The cost of sales for Energy EfficiencyasaService (‘EEaaS’) projects includes the cost of the technology that is installed and
the cost of bringing the technology into use. The ongoing maintenance and warranty support performance obligation within
an EEaaS contract is not considered by management to be sufficiently material to be recognised as a discrete revenue stream.
Accordingly, a provision is also included in cost of sales for the Group’s obligation to repair or replace faulty products under
the standard warranty terms.
c) Energy credits
From time to time the Group will receive consideration for both LaaS and supply & install contracts in Ireland in the form of
energy credits. Energy credits are financial assets that are valued at fair value through profit or loss and their initial estimated
value is included as part of the transaction price recognised as revenue. Energy credits are validated by the SEAI (the Irish
regulator) and once validated are transferred to an undertaking that needs those energy credits, typically a power generation
company. Any changes in the fair value of the energy credits between initial recognition and their realisation for cash are
recorded as other gains or losses.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
2. Accounting policies continued
Energy ManagementasaService
Revenue is comprised of fees received from customers or commissions received from energy suppliers, net of valueadded tax,
for the review, analysis and negotiation of gas and electricity contracts on behalf of clients in the UK.
To the extent that invoices are raised in a different pattern from the revenue recognition policy described below, entries are
made to record deferred or accrued revenue to account for the revenue when the performance obligations have been satisfied.
All of the Group’s energy management clients receive Procurement Services and many also receive Risk management, consulting
and advisory services (together ‘Management Services’). These services will often be combined into a single contract but the
Group separately identifies the relevant procurement obligations and recognises revenue when the relevant performance
obligations have been satisfied. Revenue is recognised for each of these as follows:
a) Procurement services
Procurement revenue arises when the Group provides services that lead to the client entering into a contract with an energy
supplier. The Group typically receives a commission from the energy supplier based upon the amount of energy consumed by the
client over the life of the contract. As the services provided by the Company are completed up to the point that the contract is
signed between the client and the energy supplier the performance obligation is considered to be satisfied at that point and the
revenue is recognised then. The total amount of revenue recognised is based upon the historical energy consumption of the
client. This revenue is then limited by an allowance for actual consumption to be lower than originally estimated and an
allowance for the contract term not being completed. The balance of revenue not recognised at the point the energy supply
contract is signed is recognised over the life of the contract in line with the client’s actual consumption.
b) Energy management services
As well as Procurement Services the Group provides clients with a range of risk management, consulting and advisory services
which include Bill Validation, Cost recovery, compliance services, ongoing market intelligence, ongoing account management and
the development of hedging strategies. These services are typically provided evenly over the term of the contract and are
therefore recognised rateably over the contract life.
Client segmentation
The Group’s energy management clients are segmented into four categories based upon the balance of services they contract
to receive from the Group. These categories are:
SME: Small & Medium Enterprise clients who typically only take procurement services
Fixed: Clients who typically take fixed procurement contracts with a limited range of management services
Fixed Plus: Clients who take a wider range of management services, including Bill Validation or ‘Budget Defender’ reporting
Flex: Clients who typically procure using a flex model with regular retrading of the procurement contract and more
advanced risk management services.
The overall proportion of revenue attributed by management to Procurement Services and recognised at the point the energy
supply contract is signed ranges from 70% for SME to 14% for Flex and the average recognised across the portfolio for FY21
was 25%.
Cost of sales
Cost of sales represents internal or external commissions paid in respect of sales made. The cost of sale is matched to the
revenue recognised so for Procurement Services is recognised at the time the contract is signed and for Management Services
rateably over the contract term. To the extent the pattern of payment for these commissions is different from the costs being
recognised accruals or prepayments are recorded in the balance sheet.
Other
a) Interest income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
b) Management services
The Group provides management services to customers and certain other parties under fixed fee arrangements. Efforts to satisfy
the performance obligation are expended evenly throughout the performance period and so the performance obligation is
considered to be satisfied evenly over time and accordingly the revenue is recognised evenly over time.
Annual Report & Accounts 2021 43
eEnergy Group plc
2. Accounting policies continued
2.14 Sharebased payments
The cost of equitysettled transactions with employees is measured by reference to the fair value of the equity instruments
granted at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date
on which the relevant employees become fully entitled to the award. In valuing equitysettled transactions, no account is taken
of any vesting conditions, other than conditions linked to the price of the shares of a group company (market conditions) and
nonvesting conditions. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market or nonvesting condition, which are treated as vesting irrespective of whether or not the market or
nonvesting condition is satisfied, provided that all other vesting conditions are satisfied. At each balance sheet date before
vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s
best estimate of the achievement or otherwise of nonmarket conditions and of the number of equity instruments that will
ultimately vest or in the case of an instrument subject to a market condition, be treated as vesting as described above. The
movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a
corresponding entry in equity.
Where the terms of an equitysettled award are modified, or a new award is designated as replacing a cancelled or settled award,
the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is
recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the
difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of
the modification. No reduction is recognised if this difference is negative. Where an equitysettled award is cancelled, it is treated
as if it had vested on the date of cancellation, and any cost not yet recognised in the profit and loss account for the award is
expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is
deducted from equity, with any excess over fair value expensed in the profit and loss account.
2.15 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
When the Group acquires any plant and equipment it is stated in the financial statements at its cost of acquisition.
Depreciation is charged to write off the cost less estimated residual value of property, plant and equipment on a straight line
basis over their estimated useful lives which are:
• Plant and equipment 4 years
• Computer equipment 4 years
Estimated useful lives and residual values are reviewed each year and amended as required.
2.16 Intangible assets
Intangible assets acquired as part of a business combination or asset acquisition, other than goodwill, are initially measured at
their fair value at the date of acquisition. Intangible assets acquired separately are initially recognised at cost.
Amortisation is charged to write off the cost less estimated residual value of plant and equipment on a straight line basis over
their estimated useful lives which are:
• Brand and trade names 10 years
• Customer relationships 11 years
• Software 5 years
Estimated useful lives and residual values are reviewed each year and amended as required.
Indefinite life intangible assets comprising goodwill are not amortised and are subsequently measured at cost less any
impairment. The gains and losses recognised in profit or loss arising from the derecognition of intangible assets are measured as
the difference between net disposal proceeds and the carrying amount of the intangible asset.
Other intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount might not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or group of assets (cashgenerating units).
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
2. Accounting policies continued
Goodwill impairment reviews are undertaken annually, or more frequently if events or changes in circumstances indicate a
potential impairment. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected
pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.
2.17 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the firstin, firstout (‘FIFO’) method.
The cost of finished goods and work in progress comprises design costs, raw materials, direct labour and other direct costs.
It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less applicable
variable selling expenses.
2.18 Leases
The Group leases properties and motor vehicles. Leases are recognised as a rightofuse asset and a corresponding lease liability
at the date at which the leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the following lease payments:
• Fixed payments (including insubstance fixed payments), less any lease incentives receivable;
• Variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the
commencement date;
• Amounts expected to be payable by the Group under residual value guarantees;
• The exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• Payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is
generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the rightofuse asset in a similar
economic environment with similar terms, security and conditions.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease
period. Rightofuse assets are measured at cost which comprises the following:
• The amount of the initial measurement of the lease liability;
• Any lease payments made at or before the commencement date less any lease incentives received;
• Any initial direct costs; and
• Restoration costs.
Rightofuse assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight line basis. If the Group
is reasonably certain to exercise a purchase option, the rightofuse asset is depreciated over the underlying asset’s useful life.
Payments associated with shortterm leases (term less than 12 months) and all leases of lowvalue assets (generally less than
£5k) are recognised on a straightline basis as an expense in profit or loss.
2.19 Equity
Share capital is determined using the nominal value of shares that have been issued.
The Share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs
associated with the issuing of shares are deducted from the Share premium account, net of any related income tax benefits.
The Reverse Acquisition reserve includes the accumulated losses incurred prior to the reverse acquisition, the share capital of
eLight Group Holdings Limited at acquisition, the reverse acquisition sharebased payment expense as well as the costs incurred
in completing the reverse acquisition.
The foreign currency translation reserve includes exchange differences arising from the translation of the results and financial
position of foreign operations.
Accumulated losses includes all current and prior period results as disclosed in the income statement other than those
transferred to the Reverse Acquisition reserve.
Annual Report & Accounts 2021 45
eEnergy Group plc
2. Accounting policies continued
2.20 Taxation
Taxation comprises current and deferred tax.
Current tax is based on taxable profit or loss for the period. Taxable profit or loss differs from profit or loss as reported in the
income statement because it excludes items of income and expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The asset or liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial information and
the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from initial recognition of goodwill
or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to
equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
2.21 Borrowings and borrowing costs
Borrowings are recognised initially at fair value, net of transaction costs. Borrowings are subsequently carried at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement
over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are
capitalised as a prepayment for liquidity services and amortised over the period of the loan to which it relates.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the end of the reporting period.
2.22 Exceptional items and nonGAAP performance measures
Exceptional items are those items which, in the opinion of the Directors, should be excluded in order to provide a consistent and
comparable view of the underlying performance of the Group’s ongoing business. Generally, exceptional items include those
items that do not occur often and are material.
Exceptional items include (i) the Reverse Acquisition costs incurred on the formation of the Group in 2020; (ii) the costs incurred
in delivering the ‘Buy & Build’ strategy associated with acquisitions and strategic investments; (iii) incremental costs of
restructuring and transforming acquired businesses and (iv) sharebased payments.
We believe the nonGAAP performance measures presented, along with comparable GAAP measurements, are useful to provide
information with which to measure the Group’s performance, and its ability to invest in new opportunities. Management uses
these measures with the most directly comparable GAAP financial measures in evaluating operating performance and value
creation. The primary measure is Earnings before Interest, Tax, Depreciation and Amortisation (‘EBITDA’) and Adjusted EBITDA,
which is the measure of profitability before Exceptional items. These measures are also consistent with how underlying business
performance is measured internally. We also report our profit before exceptional items which is our net income, after tax and
before exceptional items as this is a measure of our underlying financial performance.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
2. Accounting policies continued
The Group separately reports exceptional items within their relevant income statement line as it believes this helps provide a
better indication of the underlying performance of the Group. Judgement is required in determining whether an item should be
classified as an exceptional item or included within underlying results. Reversals of previous exceptional items are assessed based
on the same criteria.
In the prior year central operating expenses were included in arriving at Adjusted EBITDA due to the quantum relative to the
Group’s trading activity. Given the increased scale of the Group in the current year the Directors have concluded that central
operating expenses should no longer be included in arriving at Adjusted EBITDA. Central operating expenses are disclosed in
note 4, Segment Reporting.
NonGAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented
in compliance with GAAP.
2.23 Critical accounting judgements and key sources of estimation uncertainty
In the process of applying the entity’s accounting policies, management makes estimates and assumptions that have an effect on
the amounts recognised in the financial statements. Although these estimates are based on management’s best knowledge of
current events and actions, actual results may ultimately differ from those estimates. The following are the critical judgement the
Directors have made in the process of applying the Group’s accounting policies.
Impairment assessment
In accordance with its accounting policies, each CGU is evaluated annually to determine whether there are any indications of
impairment and a formal estimate of the recoverable amount is performed. The recoverable amount is based on value in use
which require the Group to make estimates regarding key assumptions regarding forecast revenues, costs and pretax discount
rate. Further details are disclosed within note 14. Uncertainty about these assumptions could result in outcomes that require a
material adjustment to the carrying amount of goodwill in future periods.
Energy credits
Energy credits are valued based on management’s assessment of market price fair value underlying the energy credit. Such
assessment is derived from valuation techniques that include inputs for the energy credit asset that are not based on observable
market data. Further details are disclosed within note 25. Uncertainty about the market price fair value used in valuing the energy
credit assets could result in outcomes that require a material adjustment to the value of these energy credits assets in future periods.
Intangible assets
On acquisition, specific intangible assets are identified and recognised separately from goodwill and then amortised over their
estimated useful lives. An external expert is engaged to assist with the identification of the intangible assets and their estimated
useful lives. These include items such as brand names and customer lists, to which value is first attributed at the time of
acquisition. The capitalisation of these assets and the related amortisation charges are based on judgements about the value
and economic life of such items.
The economic lives for customer relationships, trade names and computer software are estimated at between five and eleven
years. The value of intangible assets, excluding goodwill, at 30 June 2021 is £1,890,000 (2020: £nil).
Contingent consideration
An element of consideration relating to certain business acquisitions made is contingent on the future EBITDA targets being
achieved by the acquired businesses. On acquisition, estimates are made of the expected future EBITDA based on forecasts
prepared by management. These estimates are reassessed at each reporting date and adjustments are made where necessary.
Amounts of deferred and contingent consideration payable after one year are discounted. The carrying value of contingent
consideration at 30 June 2021 is £nil (2020: £nil).
Any gain or loss on revaluation of contingent consideration does not adjust the carrying value of goodwill and is treated as an
exceptional item in the income statement.
Procurement services revenue
When assessing the recognition of Procurement Services revenue within the Energy Management division the Group estimates
the degree to which expected energy consumption is constrained by reductions in energy consumption over the term of the
contract when compared to the historical energy consumption of the client and by the risk of supply contracts being terminated
by clients before the end of the contract term. These constraints reduce the extent to which Procurement Service revenue is
recognised on signing whether the client contract is purely for Procurement Services or a combination of Procurement and
Energy Management Services.
Annual Report & Accounts 2021 47
eEnergy Group plc
3. Reverse acquisition
On 9 January 2020, the Company acquired through a share for share exchange the entire share capital of eLight Group Holdings
Limited, whose principal activity is the provision of energy efficient LED lighting solutions to education and commercial clients in
the United Kingdom and Ireland.
Although the transaction resulted in eLight Group Holdings Limited becoming a wholly owned subsidiary of the Company, the
transaction constitutes a reverse acquisition as the previous shareholders of eLight Group Holdings Limited own a substantial
majority of the Ordinary Shares of the Company and the executive management of eLight Group Holdings Limited became the
executive management of eEnergy Group plc.
In substance, the shareholders of eLight Group Holdings Limited acquired a controlling interest in the Company and the
transaction has therefore been accounted for as a reverse acquisition. As the Company’s activities prior to the acquisition were
predominantly the maintenance of the AIM Listing, acquiring eLight Group Holdings Limited and raising equity finance to provide
the required funding for the operations of the acquisition it did not meet the definition of a business in accordance with IFRS 3.
Accordingly, this reverse acquisition does not constitute a business combination and was accounted for in accordance with IFRS 2
‘Sharebased Payments’ and associated IFRIC guidance. Although, the reverse acquisition is not a business combination, the
Company has become a legal parent and is required to apply IFRS 10 and prepare consolidated financial statements. The Directors
have prepared these financial statements using the reverse acquisition methodology, but rather than recognising goodwill, the
difference between the equity value given up by the eLight Group Holding Limited’s shareholders and the share of the fair value of
net assets gained by the eLight Group Holdings Limited shareholders is charged to the statement of comprehensive income as a
sharebased payment on reverse acquisition, and represents in substance the cost of acquiring an AIM listing.
In accordance with reverse acquisition accounting principles, these consolidated financial statements represent a continuation
of the consolidated statements of eLight Group Holdings Limited and its subsidiaries and include:
• The assets and liabilities of eLight Group Holdings Limited and its subsidiaries at their preacquisition carrying value amounts
and the results for both years; and
• The assets and liabilities of the Company as at 9 January 2020 and its results from the date of the reverse acquisition
(9 January 2020) to 30 June 2020.
On 9 January 2020, the Company issued 87,651,000 ordinary shares to acquire the 2,023,000 ordinary shares of eLight Group
Holdings Limited. At 9 January 2020, the quoted share price of the Company was £0.075 and therefore valued the investment in
eLight Group Holdings at £6,574,000.
Because the legal subsidiary, eLight Group Holdings Limited, was treated on consolidation as the accounting acquirer and the
legal Parent Company, eEnergy Group plc, was treated as the accounting subsidiary, the fair value of the shares deemed to have
been issued by eLight Group Holdings Limited was calculated at £1,103,000 based on an assessment of the purchase
consideration for a 100% holding of eEnergy Group plc.
The fair value of the net assets of eEnergy Group plc at acquisition was as follows:
£’000
Cash and cash equivalents 105
Other assets 253
Liabilities (307)
Net assets 51
The difference between the deemed cost (£1,103,000) and the fair value of the net assets assumed per above of £51,000
resulted in £1,052,000 being expensed within ‘reverse acquisition expenses’ in accordance with IFRS 2, ShareBased Payments,
reflecting the economic cost to eLight Group Holdings Limited shareholders of acquiring a quoted entity.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
3. Reverse acquisition continued
The reverse acquisition reserve which arose from the reverse takeover is made up as follows:
£’000
Preacquisition equity 1 (29,793)
eLight Group Holdings Limited share capital at acquisition 2 69
Investment in eLight 3 (6,574)
Reverse acquisition expense 4 1,052
(35,246)
1. Recognition of pre-acquisition equity of eEnergy Group plc as at 9 January 2020.
2. eLight Group Holdings Limited had issued share capital of £69,000. As these financial statements present the capital structure of the legal parent entity, the equity of
eLight Group Holding Limited is eliminated.
3. The value of the shares issued by the Company in exchange for the entire share capital of eLight Group Holdings Limited. The above entry is required to eliminate the
balance sheet impact of this transaction.
4. The reverse acquisition expense represents the difference between the value of the equity issued by the Company, and the deemed consideration given by eLight Group
Holdings Limited to acquire the Company.
4. Segment reporting
The following information is given about the Group’s reportable segments:
The Chief Operating Decision Maker is the Board of Directors. The Board reviews the Group’s internal reporting in order to
assess performance of the Group and has determined that in the year ended 30 June 2021 the Group had three operating
segments, being Energy Efficiency, Energy Management and Group.
The Board considers that during the year ended 30 June 2020 the Group operated in the single business segment of LED
lighting solutions, which is now part of the Energy Efficiency segment.
Energy
Management Energy Efficiency Group
United United
Kingdom Kingdom Ireland Central 2021
2021 £’000 £’000 £’000 £’000 £’000
Revenue 2,187 8,511 2,898 – 13,596
Cost of sales (590) (5,679) (1,790) – (8,059)
Gross profit 1,597 2,832 1,108 – 5,537
Operating expenses (862) (1,820) (730) (1,295) (4,707)
Adjusted EBITDA 735 1,012 378 (1,295) 830
Depreciation and amortisation (233) (7) (93) – (333)
Finance and similar charges (14) (6) (410) 4 (426)
Profit (loss) before tax and exceptional items 488 999 (125) (1,291) 71
Exceptional items – – – (248) (248)
Loss before tax 488 999 (125) (1,539) (177)
Income tax 170 – – 35 205
Profit (loss) after tax and exceptional items 658 999 (125) (1,504) 28
Net assets
Assets 9,197 6,003 2,678 3,141 21,019
Liabilities (2,322) (3,739) (4,081) (1,004) (11,146)
Net assets (liabilities) 6,875 2,264 (1,403) 2,137 9,873
Annual Report & Accounts 2021 49
eEnergy Group plc
4. Segment reporting continued
Energy Efficiency Group
United
Kingdom Ireland Central 2020
2020 £’000 £’000 £’000 £’000
Revenue 2,241 2,260 – 4,501
Cost of sales (1,607) (1,502) – (3,109)
Gross profit 634 758 – 1,392
Operating expenses (849) (1,190) (878) (2,917)
Adjusted EBITDA (215) (432) (878) (1,525)
Depreciation (3) (64) (5) (72)
Finance and similar charges (24) (52) (201) (277)
Profit before exceptional items (242) (548) (1,084) (1,874)
Exceptional item – Reverse acquisition expenses – – (1,320) (1,320)
Loss before and after tax (242) (548) (2,404) (3,194)
Net assets
Assets 978 2,037 1,335 4,350
Liabilities (1,256) (2,896) (1,959) (6,111)
Net assets (liabilities) (278) (859) (624) (1,761)
5. Revenue from contracts with customers
2021 2020
£’000 £’000
Sales revenue 13,478 4,324
Energy credits 118 177
13,596 4,501
More than 10% of the Group’s revenue was accounted for by one UK customer in 2021 (£1.6 million). In 2020 one UK customer
accounted for £1.1 million and one Ireland customer accounted for £2.0 million of the Group’s revenue.
6. Cost of sales
2021 2020
£’000 £’000
Cost of sales – labour 2,320 1,195
Cost of sales – commissions 3,179 196
Cost of sales – technology and materials 2,479 1,686
Cost of sales – other 81 32
8,059 3,109
In the prior year commissions of £196,000 were classified as part of operating expenses. In the current year all sales and third
party commissions are included in cost of sales. The prior year numbers have been restated accordingly.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
7. Operating expenses
The breakdown of operating expenses by nature is as follows:
2021 2020
£’000 £’000
Wages and salaries 3,625 1,904
Rent, utilities and office costs 253 60
Professional fees 464 389
Travel and motor vehicle expenses 175 170
Reverse acquisition expenses – 1,320
Foreign exchange (2) (14)
Share of loss on investment in associate 34 –
Realised gain on sale of other current assets (304) –
Write down of assets recorded at fair value through profit or loss – 78
Other expenditure 710 330
4,955 4,237
The Directors consider the following expenses (credits) within operating expenses to be exceptional items:
2021 2020
Note £’000 £’000
Reverse acquisition expenses 3 – 1,320
Acquisition related costs 1,094 –
Changes to the initial recognition of contingent consideration 26 (1,444) –
Incremental restructuring and integration costs 113 –
Sharebased payment expense 30 485 –
248 1,320
8. Auditors remuneration
2021 2020
£’000 £’000
Fees payable to the Company’s auditor for the audit of Parent Company
and consolidated financial statements 41 31
Tax compliance services 7 2
Corporate finance fees – 60
48 93
Annual Report & Accounts 2021 51
eEnergy Group plc
9. Staff costs and Directors’ emoluments
Directors’ remuneration for the Group and the Company is set out in the report of the Remuneration Committee on pages 23 to 24.
The aggregate staff costs for the year were as follows:
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Directors’ remuneration 648 480 648 294
Other staff wages and salaries 2,569 1,287 81 –
Social security costs 408 137 89 22
Sharebased payment expense 485 – 485 –
4,110 1,904 1,303 316
On average, excluding NonExecutive Directors, the Group and Company employed 25 technical staff members (2020: 7)
26 sales staff members (2020: 13) and 21 administration and management staff members (2020: 13).
10. Taxation
2021 2020
£’000 £’000
The charge (credit) for year is made up as follows:
Current tax expense (credit)
– Current year (36) –
Deferred tax expense (credit)
– Origination and reversal of temporary differences (169) –
Total tax charge (credit) for the year (205) –
Reconciliation of effective tax rate
Loss before income tax (177) (3,194)
Income tax applying the UK corporation tax rate of 19% (2020: 19%) (34) (607)
Effect of tax rate in foreign jurisdiction 28 58
Nondeductible expenses 95 181
Impact of tax rate change 44 –
Movement in unrecognised deferred tax asset (316) 368
Other tax differences (35) –
Income tax charge (credit) for the year (205) –
The movements in Deferred Tax are described in note 24.
Factors affecting the future tax charge
The standard rates of corporation tax in the UK and Ireland are 19% and 12.5% respectively.
A reduction in the UK corporation tax rate from 19% to 17% effective 1 April 2020 was substantively enacted on 6 September
2016. The March 2020 Budget announced that a rate of 19% would continue to apply with effect from 1 April 2020.
An increase in the UK corporate tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on
14 May 2021. This will increase the Company’s future current tax charge accordingly.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
11. Finance costs – net
2021 2020
£’000 £’000
Interest expense – borrowings (361) (224)
Finance charge on leased assets (65) (53)
Finance costs – net (426) (277)
12. Earnings per share
Basic and diluted earnings per share are calculated by dividing the profit or loss for the year by the weighted average number of
ordinary shares in issue during the year.
2021 2020
Loss for the year from continuing operations – £’000 28 (3,194)
Weighted number of ordinary shares in issue 199,038,204 108,080,337
Basic earnings per share from continuing operations – pence 0.01 (2.96)
Weighted number of dilutive instruments in issue 11,504,993 –
Weighted number of ordinary shares and dilutive instruments in issue 210,543,197 –
Diluted earnings per share from continuing operations – pence 0.01 (2.96)
Share options and warrants could potentially dilute basic earnings per share in the future but were not included in the
calculation of diluted earnings per share in the prior year as they are antidilutive. See note 31 for further details.
13. Property, plant & equipment
Plant & Computer
equipment equipment Total
£’000 £’000 £’000
Cost
Opening balance 93 2 95
Additions in the period 14 68 82
At 30 June 2020 107 70 177
Additions on acquisition 153 10 163
Additions in the year – 125 125
Transfer to intangibles – (176) (176)
At 30 June 2021 260 29 289
Depreciation
Opening balance (20) – (20)
Charge for the period (19) (8) (27)
At 30 June 2020 (39) (8) (47)
Additions on acquisition (104) (10) (114)
Charge for the year (48) (22) (70)
Transfer to intangibles – 22 22
At 30 June 2021 (191) (18) (209)
Net book value 30 June 2020 68 62 130
Net book value 30 June 2021 69 11 80
Annual Report & Accounts 2021 53
eEnergy Group plc
14. Intangible assets
The intangible assets primarily relate to the Goodwill and separately identifiable intangible assets arising on the Group’s
acquisition of ELUK, RSL and Beond. See note 28 for further details of the acquisitions made in the current year. The Group
tests the intangible asset for indications of impairment at each reporting period, in line with accounting policies.
Customer
Goodwill Software Relationships Brand Total
£’000 £’000 £’000 £’000 £’000
Cost
Opening balance 211 – – – 211
Additions in the period – – – – –
At 30 June 2020 211 – – – 211
Additions on acquisition 9,592 411 824 555 11,382
Additions in the year – 77 – – 77
Transfer from PP&E – 154 – – 154
At 30 June 2021 9,803 642 824 555 11,824
Amortisation
Opening balance – – – – –
Charge for the period – – – – –
At 30 June 2020 – – – – –
Additions on acquisition – – – – –
Charge for the year – (60) (41) (30) (131)
At 30 June 2021 – (60) (41) (30) (131)
Net book value 30 June 2020 211 – – – 211
Net book value 30 June 2021 9,803 582 783 525 11,693
Of the additions on acquisition in the year £2,762,000 of Goodwill relates to the Energy Efficiency segment and the balance of
£8,620,000 relates to the Energy Management segment.
The recoverable amount of each cash generating unit was determined based on valueinuse calculations which require the use
of assumptions. The calculations use cash flow projections based on financial budgets approved by management which are built
‘bottom up’ for the next three years. Within those cash flow projections revenues increase at a compound annual growth rate
of 20% (2020: 49%). The annual discount rate applied to the cash flows is 13% (2020: 10%) which is the same rate used by
our valuation adviser to value the separably identifiable intangible assets in the year.
The Directors have considered and assessed reasonably possible changes in key assumptions and have not identified any
instances that could cause the carrying amount to exceed recoverable amount.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
15. Investment
2021 2020
Company only £’000 £’000
Opening balance 6,574 –
Additions during the year:
– consideration shares for eLight Group Holdings (note 3) – 6,574
– consideration paid RSL (note 28) 2,238 –
– consideration paid Beond (note 28) 9,135 –
Closing balance 17,947 6,574
Company subsidiary undertakings
As at 30 June 2021, the Group owned interests in the following subsidiary undertakings, which are included in the consolidated
financial statements:
Holding Holding
Name 2021 2020 Business activity Country of incorporation Registered address
Direct subsidiary undertaking
eEnergy Holdings Limited 100% 100% Holding Company England & Wales 32 Threadneedle St,
London EC2R 8AY
Indirect subsidiary undertakings
eLight Group Holdings Limited 100% 100% Holding Company Ireland 13 The Green, Malahide,
Co. Dublin K36 N153
eLight N.I. Limited 100% – Trading Company Northern Ireland 19 Arthur Street,
Belfast BT1 4GA
eLight Ireland Limited 100% 100% Trading Company Ireland 13 The Green, Malahide,
Co. Dublin K36 N153
eLight EaaS Projects Limited 100% 100% Trading Company Ireland 13 The Green, Malahide,
Co. Dublin K36 N153
eLight U.K. Limited 100% 100% Trading Company England & Wales 32 Threadneedle St,
London EC2R 8AY
Renewable Solutions 100% – Trading Company England & Wales 32 Threadneedle St,
Lighting Limited London EC2R 8AY
Beond Group Limited 100% – Trading Company England & Wales 32 Threadneedle St,
London EC2R 8AY
Energy Centric Limited 100% – Dormant England & Wales 32 Threadneedle St,
London EC2R 8AY
Zero Carbon Projects Limited 100% – Nontrading England & Wales Old Gun Court, 1 North St,
Company Dorking, Surrey RH4 1DE
Zero Carbon Projects 100% – Nontrading Australia Suite 4, 142 Spit Rd,
Pty Limited Company Mosman, NSW, 2088
eEnergy Insights Limited 37.5% – Trading Company England & Wales 32 Threadneedle St,
London EC2R 8AY
Annual Report & Accounts 2021 55
eEnergy Group plc
16. Trade and other receivables
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Trade receivables 2,090 426 – –
Prepayments 543 99 111 25
Accrued revenue 866 535 – –
Other receivables 777 13 42 1
4,276 1,073 153 26
All trade receivables are short term and are due from counterparties with acceptable credit ratings so there is no expectation
of a credit loss. Accordingly, the Directors consider that the carrying value amount of trade and other receivables approximates
to their fair value.
17. Inventory
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
The balance at year end comprised:
Work in progress 153 175 – –
Finished goods 218 181 – –
371 356 – –
The value of inventory expensed as part of Cost of Sales in the year and prior year is disclosed in note 6. Inventories are stated
at the lower of cost and net realisable value.
18. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and short term deposits held with banks with a A1+ rating. The carrying
value of these approximates to their fair value. Cash and cash equivalents included in the cash flow statement comprise the
following balance sheet amounts.
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Cash at bank and in hand 3,332 1,478 1,187 909
Cash and cash equivalents 3,332 1,478 1,187 909
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
19. Trade and other payables
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Current liabilities
Trade payables 4,064 2,683 564 118
Accrued expenses 1,036 636 116 110
Deferred income 266 200 – –
Social security and other taxes 1,959 388 323 84
Other payables 494 48 – 56
7,819 3,955 1,003 368
Trade payables and accruals principally comprise amounts outstanding for trade purchases and continuing costs. The Directors
consider that the carrying value amount of trade and other payables approximates to their fair value. Refer note 30.
Deferred income represents revenues collected but not yet earned as at the year end. All deferred income recorded in the
opening balance sheet was recognised as revenue in the current year. Management expect all deferred income at the yearend
to be recognised as revenue in the next financial year.
20. Leases
The Group had the following lease assets and liabilities at 30 June:
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Rightofuse assets
Properties 579 477 – –
Motor vehicles 31 61 – –
610 538 – –
Lease liabilities
Current 264 76 – –
Noncurrent 434 506 – –
698 582 – –
Maturity on the lease liabilities are as follows:
2021 2020
£’000 £’000
Current 264 76
Due between 12 years 51 81
Due between 25 years 143 159
Due beyond 5 years 240 266
698 582
Annual Report & Accounts 2021 57
eEnergy Group plc
20. Leases continued
Rightofuse assets
A reconciliation of the carrying amount of each class if rightofuse asset is as follows:
2021 2020
£’000 £’000
Properties
Opening balance 477
Opening balance on adoption of IFRS 16 – 492
Additions 215 –
Depreciation (102) (26)
Impact of foreign exchange (11) 11
Closing balance 579 477
Motor vehicles
Opening balance 61
Opening balance on adoption of IFRS 16 – 30
Additions – 47
Depreciation (27) (19)
Impact of foreign exchange (3) 3
Closing balance 31 61
21. Investment in associate
During the year, the Group entered into various agreements to acquire, in April 2021, an initial 33.3% interest which was increased
to 37.5% interest in eEnergy Insights Ltd (‘EIL’) in June 2021. EIL is a newly formed specialist smart metering measurement and
analytics business. As part of the agreement entered into in June, the Group received nil cost warrants to raise its interest to
51% of the equity, subject to certain operational targets being achieved. In addition, agreement was reached on a mechanism
to acquire the remaining 49% of the equity under a pre agreed valuation method after three years.
EIL acquired certain trade assets out of the administration process of Measure My Energy Limited (‘MME’) and certain
associated intellectual property assets in April 2021.
Given the equity interest the Group holds in EIL, it accounts for its investment as an equity investment in an associate and
records its share of EIL’s losses against its investment, with the Group’s interest in EIL as follows:
2021 2020
£’000 £’000
Interest in associate at beginning of the year – –
Investment in associate during the year 189 –
Share of loss on investment in associate (34) –
Interest in associate at end of the year 155 –
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
21. Investment in associate continued
The results of EIL for the year ended 30 June 2021 were as follows:
2021 2020
£’000 £’000
Revenue – –
Operating expenses (91) –
Taxation – –
Loss for the year (91) –
Group’s share – 37.5% (34) –
22. Borrowings
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Current
Borrowings 601 304 – –
601 304 – –
Noncurrent
Borrowings 1,245 1,120 – –
1,245 1,120 – –
During the prior year eLight Group Holdings Limited (the Borrower) entered into a loan agreement to borrow €1,556,000 over
a four year term. During the year, eLight Group Holdings borrowed a further €275,000 on the loan facility.
The loan principal is repayable in equal instalments commencing in December 2020 whilst interest charged at 13.50% per
annum is paid monthly. In the event that the loan is repaid early an additional fee is payable in cash. It includes covenants relating
to total contracted orders, revenue and operating EBITDA all measured over a rolling 12 month period plus a covenant requiring
us to retain a minimum level of cash in the eLight Group.
At the year end the loan is guaranteed by the trading subsidiaries of the Borrower and is secured through debentures issued by
the Borrower and the Guarantors.
The Group drew down an unsecured £50,000 Bounce Back loan for one of its subsidiaries during the year. The Bounce Back
loan is interest free for the first 12 months and is then repaid in instalments over the following three years. The interest rate on
the Bounce Back loan is 2.5% per annum.
In addition, at acquisition Beond had a term loan of £48,000 and CBILS loans of £484,000 both of which are secured over the
assets of Beond. The CBILS loans are interest free for the first 12 months and are then repaid in instalments over the following
five years. The interest rate on the CBILS loans is 3.4% per annum.
Maturity on the borrowings are as follows:
2021 2020
£’000 £’000
Current 589 304
Due between 12 years 913 456
Due between 25 years 300 664
Due beyond 5 years 44 –
1,846 1,424
Annual Report & Accounts 2021 59
eEnergy Group plc
23. Other noncurrent liabilities
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Income and other taxes 468 – – –
468 – – –
The Group has agreed deferred payments for taxes due which are being repaid in regular instalments over a four year period.
24. Deferred tax
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Total
2021 2020 2021 2020 2021 2020
£’000 £’000 £’000 £’000 £’000 £’000
Intangible assets – – 415 – 415 –
Losses (415) – – – (415) –
Total (assets) liabilities (415) – 415 – – –
Movement in temporary difference during the year
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the
current and prior reporting period:
Intangible
assets Losses Total
£’000 £’000 £’000
Balance at 1 July 2020 – – –
Acquired on acquisition – (asset) liability 340 (171) 169
Current year P&L Movement (credit) charge 75 (244) (169)
Balance at 30 June 2021 415 (415) –
Unrecognised deferred tax assets
At 30 June 2021, the Group had tax losses in the UK and Ireland totalling £8.5 million and £2.3 million respectively (2020: £10.1
million and £1.8 million) for which no deferred tax asset has been recognised due to the uncertainty in relation to the future
taxable profits against which the Group can use the benefit therefrom.
25. Financial assets at fair value through profit or loss
The Group classifies the following financial assets at fair value through profit or loss:
Group Company
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Energy credits 140 414 – –
140 414 – –
The energy credits are measured under level 2 of the fair value hierarchy as described in note 29.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
26. Share capital and share premium
Ordinary Share capital Share premium Total
Group Shares £’000 £’000 £’000
As at 30 June 2019 2,000,000 18 – 18
Ordinary shares issued during the period 23,000 51 – 51
Transfer of capital of eLight Holdings Group
Limited to Reverse Acquisition Reserve (2,023,000) (69) – (69)
Issued capital of eEnergy Group plc at
acquisition (9 Jan 2020) 14,608,500 43 14,468 14,511
Issue of shares for acquisition of
eLight Group Holdings 87,651,000 263 6,311 6,574
Issue of shares at placing price of £0.075 26,666,667 80 1,920 2,000
Issue of shares in lieu of settlement of fees 2,000,000 6 144 150
Cost of share issue – – (468) (468)
As at 30 June 2020
(ordinary shares of £0.003 each) 130,926,167 392 22,375 22,767
Issue of shares for acquisition of RSL 13,333,333 40 744 784
Issue of shares at placing price of £0.10 32,000,000 96 3,104 3,200
Issue of initial shares for acquisition of Beond 63,771,130 191 6,441 6,632
Issue of shares for acquisition of
minority interest in Beond 1,177,326 4 114 118
Issue of shares in lieu of settlement of fees 2,841,801 8 293 301
Issue of shares upon exercise of warrants 2,208,333 7 159 166
Cost of share issue – – (216) (216)
As at 30 June 2021
(ordinary shares of £0.003 each) 246,258,090 738 33,014 33,752
Deferred share capital 15,333
Total share capital 16,071
The issued share capital of the Group for the period up to 9 January 2020 is that of eLight Group Holdings Limited. Upon
completion of the Reverse Acquisition (described in note 3) the share capital of eLight Group Holdings Limited was transferred
to the Reverse Acquisition Reserve and the share capital of eEnergy Group plc was brought to account.
Details of share options and warrants issued during the year and outstanding at 30 June 2021 are set out in note 32.
Annual Report & Accounts 2021 61
eEnergy Group plc
26. Share capital and share premium continued
Ordinary Share capital Share premium Total
Company Shares £’000 £’000 £’000
As at 31 December 2019 4,382,480,149 43 14,468 14,511
Issue of registrar shares* 69,851 – – –
Total number of shares before consolidation 4,382,550,000
Effect of share consolidation at ratio of 75,000:1 (4,382,491,566)
Total number of shares after consolidation 58,434
Effect of subdivision of shares at ratio of 1:250 14,550,066
Total number of shares after subdivision of shares 14,608,500
Issue of shares for acquisition of eLight Group Holdings 87,651,000 263 6,311 6,574
Issue of shares at placing price of £0.075 26,666,667 80 1,920 2,000
Issue of shares in lieu of settlement of fees 2,000,000 6 144 150
Cost of share issue – – (468) (468)
As at 30 June 2020
(ordinary shares at £0.003 each) 130,926,167 392 22,375 22,767
Issue of shares for acquisition of RSL 13,333,333 40 744 784
Issue of shares at placing price of £0.10 32,000,000 96 3,104 3,200
Issue of initial shares for acquisition of Beond 63,771,130 191 6,441 6,632
Issue of shares for acquisition of
minority interest in Beond 1,177,326 4 114 118
Issue of shares in lieu of settlement of fees 2,841,801 8 293 301
Issue of shares upon exercise of warrants 2,208,333 7 159 166
Cost of share issue – – (216) (216)
As at 30 June 2021
(ordinary shares of £0.003 each) 246,258,090 738 33,014 33,752
Deferred share capital 15,333
Total share capital 16,071
* Shares issued in order to deal with fractions arising under the share consolidation.
Deferred
share capital
Deferred shares Number of shares £’000
Balance at 31 December 2019 1,533,251,050,551 15,333
Movement during the year – –
Balance at 30 June 2020 1,533,251,050,551 15,333
Movement during the year – –
Balance at 30 June 2021 1,533,251,050,551 15,333
The deferred shares have no voting, dividend, or capital distribution (except on winding up) rights. They are redeemable at the
option of the Company alone.
The share premium represents the difference between the nominal value of the shares issued and the actual amount subscribed
less; the cost of issue of the shares, the value of the bonus share issue, or any bonus warrant issue.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
27. Other reserves
2021 2020
Group £’000 £’000
Sharebased payment reserve 567 82
Revaluation reserve – other current assets 34 –
601 82
2021 2020
Group £’000 £’000
Sharebased payment reserve 567 82
567 82
Sharebased payment reserve – Cumulative charge recognised under IFRS 2 in respect of sharebased payment awards
Revaluation reserve – The increase in the assessed carrying value of other current assets
28. Business combination
Renewable Solutions Lighting Limited
On 1 July 2020 the Company completed the acquisition of all of the share capital of Renewable Solutions Lighting Limited (‘RSL’).
RSL specialises in providing the UK education sector with fully funded LED lighting solutions.
The consideration, paid entirely in new eEnergy shares, was structured as follows:
• Initial consideration, paid on completion, was satisfied by the issue of 13.3 million new ordinary shares of eEnergy with a
market value at issue of £784,000;
• Contingent consideration, payable after one year of up to 16.0 million new ordinary shares of eEnergy. The amount of
contingent consideration depended upon RSL achieving predefined thresholds for adjusted EBITDA.
Although the RSL business performed strongly through the year the thresholds to trigger the contingent consideration were not
achieved and therefore no contingent consideration has been paid or is payable. As a result, the provision created for the value
of the shares that might have been issued has been released through the profit and loss account as an exceptional item.
In addition to the consideration payable, RSL will make payments equal to 3% of revenue generated during the earnout period
to an RSL Director as settlement of historical obligations agreed between RSL and the Director plus RSL will repay an existing loan
of £250,000 due to an RSL Director. £130,000 was paid on completion and £120,000 on the first anniversary of completion.
The fair value of the assets acquired and liabilities assumed of RSL at the date of acquisition are as follows:
£’000
Property, plant and equipment 2
Cash at bank 11
Inventory 7
Trade and other receivables 81
Trade and other payables (625)
Total identifiable net assets (liabilities) acquired (524)
Goodwill 2,762
Consideration (all shares)
Initial consideration (recorded at the market value of the shares issued and stamp duty paid) 794
Contingent consideration 1,444
Total consideration 2,238
Annual Report & Accounts 2021 63
eEnergy Group plc
28. Business combination continued
Goodwill relates to the accumulated ‘knowhow’ and expertise of the business and its staff. None of the goodwill is expected to
be deducted for income tax purposes.
Since acquisition RSL contributed £3.5 million of revenue and £0.4 million of operating EBITDA. Acquisition related costs that
have been expensed were £0.2 million.
Beond Group Limited
On 15 December 2020 the Company completed the acquisition of Beond Group Limited (‘Beond’).
Beond specialise in renewable energy consulting and procurement with operations in the UK.
The total consideration for the acquisition (which included £0.7 million of surplus cash in the business) was approximately
£2.4 million in cash and the issue of 64.9 million new eEnergy shares. 63.8 million shares were issued on 15 December 2020
(‘Completion’) and a further 1.2 million shares following the completion of the compulsory purchase of the remaining minority
interest on 14 January 2021.
There is no further consideration due.
The initial estimate of the fair value of the assets acquired and liabilities assumed of Beond at the date of acquisition are as follows:
£’000
Property, plant and equipment 41
Separately identifiable intangible assets 1,790
Other assets 67
Cash at bank 1,207
Trade and other receivables 953
Prepayments 216
Deferred tax asset 171
Deferred tax liability (340)
Borrowings (527)
Trade and other payables (1,273)
Total identifiable net assets (liabilities) acquired 2,305
Goodwill 6,830
Consideration
Cash paid 2,385
Shares issued (recorded at the market value at Completion) 6,750
Total consideration 9,135
Goodwill relates to the accumulated ‘knowhow’ and expertise of the business and its staff. None of the goodwill is expected
to be deducted for income tax purposes.
All of the Energy Management division results disclosed in note 4 relate to Beond’s contribution to the Group since acquisition.
Acquisition related costs that have been expensed were £0.7 million.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
29. Financial instruments and risk management
Capital Risk Management
The Company manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders. The overall strategy of the Company and the Group is to minimise costs and liquidity risk.
The capital structure of the Group consists of equity attributable to equity holders of the parent, comprising issued share capital,
foreign exchange reserves and retained earnings as disclosed in the Consolidated Statement of Changes of Equity.
The Group is exposed to a number of risks through its normal operations, the most significant of which are interest, credit,
foreign exchange and liquidity risks. The management of these risks is vested to the Board of Directors.
The sensitivity has been prepared assuming the liability outstanding was outstanding for the whole period. In all cases presented,
a negative number in profit and loss represents an increase in finance expense / decrease in interest income.
Fair value measurements recognised in the Statement of Financial Position
The following provides an analysis of the Group’s financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 & 2 based on the degree to which the fair value is observable.
• Level 1 fair value measurements are those derived from inputs other than quoted prices that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 2 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that
are not based on observable market data (unobservable inputs).
• Level 3 assets are assets whose fair value cannot be determined by using observable inputs or measures, such as market
prices or models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or riskadjusted
value ranges.
Equity Price Risk
The Group is exposed to equity price risks arising from equity investments. Equity investments are held for strategic purposes.
Interest Rate Risk
The Group is exposed to interest rate risk whereby the risk can be a reduction of interest received on cash surpluses held and
an increase in interest on borrowings the Group may have. The maximum exposure to interest rate risk at the reporting date by
class of financial asset was:
2021 2020
£’000 £’000
Bank balances 3,332 1,187
Given the extremely low interest rate environment on bank balances, any probable movement in interest rates would have an
immaterial effect.
The maximum exposure to interest rate risk at the reporting date by class of financial liability was:
2021 2020
£’000 £’000
Borrowings 1,846 1,424
1,846 1,424
The borrowings attract interest rates between 3.4% and 13.5% (2020: 13.5%). Assuming the amount at period end was held for
a year, a 10% movement in this rate would have a £18,000 (2020: £19,000) effect on the amount owing.
Annual Report & Accounts 2021 65
eEnergy Group plc
29. Financial instruments and risk management continued
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group’s receivables from customers. Indicators that there is no reasonable expectation of
recovery include, amongst others, failure to make contractual payments for a period of greater than 120 days past due.
The carrying amount of financial assets represents the maximum credit exposure.
The principal financial assets of the Company and Group are bank balances, trade receivables and energy credits. The Group deposits
surplus liquid funds with counterparty banks that have high credit ratings and the Directors consider the credit risk to be minimal.
The Group’s maximum exposure to credit by class of individual financial instrument is shown in the table below:
2021 2021 2020 2020
Carrying Maximum Carrying Maximum
value exposure value exposure
Group £’000 £’000 £’000 £’000
Cash and cash equivalents 3,332 3,332 1,478 1,478
Trade receivables 2,090 2,090 426 426
Energy credits 140 140 414 414
5,562 5,562 2,318 2,318
2021 2021 2020 2020
Carrying Maximum Carrying Maximum
value exposure value exposure
Company £’000 £’000 £’000 £’000
Cash and cash equivalents 1,187 1,187 909 909
Trade receivables – – – –
1,187 1,187 909 909
No aged analysis of financial assets is presented as no financial assets are past due at the reporting date.
Trade receivables
The Group has applied IFRS 9 Financial Instruments and the related consequential amendments to other IFRSs. IFRS 9
introduces requirements for the classification and measurement of financial assets and financial liabilities as well as the
impairment of financial assets.
In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model as opposed to an incurred credit
loss model under IAS 39. The expected credit loss model requires the Group to account for expected credit losses and changes
in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial
assets. In other words, it is no longer necessary for a loss event to have occurred before credit losses are recognised.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance
for all trade receivables. During the period, there were no credit losses experienced and no loss allowance being recorded.
Currency Risk
The Group operates in a global market with income and costs arising in a number of currencies and is exposed to foreign
currency risk arising from commercial transactions, translation of assets and liabilities and net investment in foreign subsidiaries.
Exposure to commercial transactions arise from sales or purchases by operating companies in currencies other than the
Company’s functional currency. Currency exposures are reviewed regularly.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
29. Financial instruments and risk management continued
The Group has a limited level of exposure to foreign exchange risk through its foreign currency denominated cash balances, trade
receivables and payables:
2021 2020
£’000 £’000
EURO
Cash and cash equivalents 58 105
Trade receivables 674 158
Trade payables (252) (1,960)
480 (1,697)
The table below summarises the impact of a 10% increase / decrease in the relevant foreign exchange rates versus the €EUR
rate for the Group’s pretax earnings for the period and on equity:
2021 2020
£’000 £’000
Impact of 10% rate change
Euro 57 154
57 154
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group seeks to manage liquidity risk by regularly reviewing cash flow budgets and forecasts to ensure that sufficient liquidity
is available to meet foreseeable needs and to invest cash assets safely and profitably. The Group deems there is sufficient
liquidity for the foreseeable future.
The Group had cash and cash equivalents at period end as below:
2021 2020
£’000 £’000
Cash and cash equivalents 3,332 1,478
Annual Report & Accounts 2021 67
eEnergy Group plc
30. Financial assets and financial liabilities
Financial assets
at fair value Financial Financial
through profit assets at liabilities at
2021 – Group or loss amortised cost amortised cost Total
Financial assets (liabilities) £’000 £’000 £’000 £’000
Fair value assets through profit or loss 140 – – 140
Trade and other receivables – 2,867 – 2,867
Cash and cash equivalents – 3,332 – 3,332
Trade and other payables – – (5,859) (5,859)
Lease liabilities (current and noncurrent) – – (698) (698)
Borrowings (current and noncurrent) – – (1,846) (1,846)
140 6,199 (8,403) (2,064)
Financial Financial
assets at liabilities at
2021 – Company amortised cost amortised cost Total
Financial assets (liabilities) £’000 £’000 £’000
Trade and other receivables 153 – 153
Cash and cash equivalents 1,187 – 1,187
Trade and other payables – (680) (680)
1,340 (680) 660
Financial assets
at fair value Financial Financial
through profit assets at liabilities at
2020 – Group or loss amortised cost amortised cost Total
Financial assets (liabilities) £’000 £’000 £’000 £’000
Fair value assets through profit or loss 414 – – 414
Trade and other receivables – 439 – 439
Cash and cash equivalents – 1,478 – 1,478
Trade and other payables – – (3,567) (3,567)
Lease liabilities (current and noncurrent) – – (582) (582)
Borrowings (current and noncurrent) – – (1,424) (1,424)
414 1,917 (5,573) (3,242)
Financial Financial
assets at liabilities at
2020 – Company amortised cost amortised cost Total
Financial assets (liabilities) £’000 £’000 £’000
Trade and other receivables 26 – 26
Cash and cash equivalents 909 – 909
Trade and other payables – (284) (284)
935 (284) 651
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68
eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
31. Reconciliation of movement in net debt
Interest
At New added Debt Other On At
1 July 2020 borrowing to debt repaid cashflows acquisition 30 June 2021
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Cash at bank 1,478 286 – (558) 915 1,211 3,332
Borrowings (1,424) (286) (97) 470 – (509) (1,846)
Lease liabilities (582) (160) (44) 88 – – (698)
Net Cash (debt) (528) (160) (141) – 915 702 788
Interest
At New added Debt Other On At
1 July 2019 borrowing to debt repaid cashflows acquisition 30 June 2020
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Cash at bank 196 1,424 – (230) 74 14 1,478
Borrowings (51) (1,424) (139) 190 – – (1,424)
Lease liabilities – (569) (53) 40 – – (582)
Net Cash (debt) 145 (569) (192) – 74 14 (528)
32. Sharebased payments and share options
(i) Executive Share Option Plan
The Group operates an Executive Share Option Plan, under which Directors, senior executives and consultants have been
granted options to subscribe for ordinary shares. All options are share settled.
The fair value of services received in return for share options granted is measured by reference to the fair value of the share
options granted. This estimate is based on the BlackScholes model which is considered most appropriate considering the
effects of vesting conditions, expected exercise period and the payment of dividends by the Company.
(ii) Management Incentive Plan (‘MIP’)
On 7 July 2020 the Company made a series of awards under the eEnergy Group Management Incentive Plan.
The MIP is linked to the growth in the value of the Company. The forms of incentive award to be implemented as part of the
MIP comprise:
(a) ‘Growth Share Awards’: awards granted in the form of an immediate beneficial interest to be held by participants in a discrete
and bespoke class of ordinary shares (‘Growth Shares’) in eEnergy Holdings Limited, a wholly owned subsidiary of the
Company. After a minimum period of three years, the Growth Shares may be exchanged for new ordinary shares of 0.3 pence
each in the Company (‘Ordinary Shares’), subject to meeting performance conditions.
(b) ‘Share Options’: awards granted in the form of a share option with an exercise price equal to the market value of an
Ordinary Share at the date of Grant. These are structured to qualify for the tax advantaged Enterprise Management Incentive
(‘EMI Share Options’).
Under the MIP, the aggregate value of EMI Share Options and the Growth Shares is capped at 12.5% of the Company’s market
capitalisation on conversion of the Growth Shares.
Malus, clawback and leaver provisions apply to the MIP as outlined in the Admission Document.
Annual Report & Accounts 2021 69
eEnergy Group plc
32. Sharebased payments and share options continued
Growth Shares
In July 2020 the following Directors (‘Participants’) subscribed for Growth Shares in eEnergy Holdings Limited for their tax market
value as set out in the table below. This value was determined by the Company’s independent advisers, Deloitte LLP. Payment of
the subscription monies by the Participants is a firm commitment, with payment normally deferred until the MIP matures.
Percentage of Aggregate
Director Growth Shares Subscription Price
Harvey Sinclair 55 £298,650
Ric Williams 25 £135,750
Andrew Lawley 10 £54,300
David Nicholl 10 £54,300
Total 100 £543,000
The Participants earn a percentage share of the ‘Value Created’, being the difference between the Group’s market capitalisation
(onemonth average) at the start and end of the measurement period (which is at least three years) adding any returns to
shareholders such as dividends and deducting the value of new shares issued for cash or otherwise. The percentage share of the
Value Created is subject to a minimum Total Shareholder Return (‘TSR’) hurdle of 5% and up to 15% TSR is equal to the annual
TSR realised by shareholders over the measurement period, and thereafter increased on a straight line basis so that at 25% TSR
the share of the Value Created is 20%, which is the maximum percentage of the Value Created allocated to the MIP.
Growth Shares can be exchanged for Ordinary Shares after three or four years at the Company’s or Participant’s option, based
on the Value Created at that time. The value of any EMI Share Options held by a Participant are deducted from the value of their
Growth Shares before conversion to Ordinary Shares. The Remuneration Committee must be satisfied that the gains on the
Growth Shares are justified by the underlying financial performance of the Group.
Participants will be required to hold 50% of any Ordinary Shares acquired on conversion of the Growth Shares until the end of
the fourth year (30 June 2024).
On a change of control, the TSR growth rate up to that date is measured and if the 5% minimum is achieved, Participants will
share in the value created.
During the year Ric Williams surrendered his Growth Shares at the subscription price and at 30 June 2021 has no remaining
interest in the Growth Shares. The surrender of these Growth Shares led to an acceleration of the fair value being expensed so
that all of the fair value of the surrendered Growth Shares of £208,000 was expensed in the year.
The fair value of the Growth Shares was deemed to be £833,000 and is being amortised over the vesting period, which is three
years from the date of grant. £419,000 was expensed during the year.
EMI options
The Company granted the following EMI Share Options over Ordinary Shares at an exercise price of 6.12 pence, based on the
closing price on Monday 6 July 2020:
Director Number of Options
Harvey Sinclair 4,084,960
Ric Williams 4,084,960
Total 8,169,920
The EMI options are exercisable when the MIP matures, being after a minimum period of three years. The Remuneration
Committee must be satisfied that the returns are justified by the underlying financial performance of the Group.
The fair value of the EMI Options was deemed to be £200,000 and is being amortised over the vesting period, which is three
years from the date of grant. £66,000 was expensed during the year.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
32. Sharebased payments and share options continued
(iii) Other share options or warrants
On 22 November 2017, the Company issued 40,000,000 warrants, for broker services, to JIM Nominees Limited as nominee for
Turner Pope Investments Ltd (‘TPI’) as part of its remuneration for effecting the Placing completed on that date. The warrants
were valid for three years from the date of admission of the new placing shares at 0.15p per share (before the share
consolidation completed on 9 January 2020). All of these warrants lapsed without being exercised.
On 16 August 2019, the Company issued 2,375,000,000 new shares of 0.01p each for cash at 0.02p each to raise £475,000
(gross). In connection with that placing, the Company issued 142,500,000 warrants, for broker services, to JIM Nominees Limited
as nominee for TPI as part of its remuneration for effecting the Placing, valid for 2 years from the date of admission of the new
placing shares at 0.025p per share. The fair value of the broker warrants amounted to £12,000 which equates to the fair value of
services received. These warrants were exercised in the year.
On 9 January 2020 the Company issued 26,666,667 new shares of 0.03p each for cash at 7.5p each to raise £2 million (gross).
In connection with that placing, the Company issued 1,600,000 warrants, for broker services to JIM Nominees Limited as
nominee for TPI as part of its remuneration for effecting the Placing, valid for three years from the date of admission of the new
placing shares and exercisable at 7.5p per share. These broker warrants had estimated value of £36,320 which is based on the
BlackScholes model which is considered most appropriate considering the effects of vesting conditions, expected exercise
period and the payment of dividends by the Company. These warrants were exercised in the year.
Also on 9 January 2020 the Company issued 1,575,929 warrants to a number of advisors as part of the reverse acquisition
transaction completed on that date which are exercisable for the four years following the anniversary of the date of issue at 7.5p
per share. These advisor warrants had an estimated value of £45,544 which is based on the BlackScholes model which is
considered most appropriate considering the effects of vesting conditions, expected exercise period and the payment of
dividends by the Company.
On 2 February 2020 the Company issued 10,000 warrants to an advisor for services provided to the Company which are valid
for three years from 9 January 2020 and exercisable at 7.5p per share. These advisor warrants had an estimated value of £224
which is based on the BlackScholes model which is considered most appropriate considering the effects of vesting conditions,
expected exercise period and the payment of dividends by the Company. The expected price volatility is based on the historical
share price volatility, adjusted for any expected changes to future volatility over the life of the warrants. These warrants were
exercised in the year.
The estimated fair values of warrants which fall under IFRS 2, and the inputs used in the BlackScholes Option model to
calculate those fair values are as follows:
Number of Exercise Expected Expected Risk free Expected
Date of grant warrants Share Price Price volatility life rate dividends
9 Jan 2020 1,600,000 £0.075 £0.075 45.00% 3 0.00% 0.00%
9 Jan 2020 1,575,929 £0.075 £0.075 45.00% 5 0.00% 0.00%
2 Feb 2020 10,000 £0.075 £0.075 45.00% 3 0.00% 0.00%
Total contingently issuable shares
2021 2020
Executive Share Option Plan 471,000 514,000
Other share options and warrants 1,452,596 3,794,262
1,923,596 4,308,262
Annual Report & Accounts 2021 71
eEnergy Group plc
The number and weighted average exercise price of share options and warrants are as follows:
2021 2020
Weighted Weighted
average Number of average Number of
exercise price options exercise price options
Outstanding at the beginning of the year 27.955p 4,308,262 0.287p 336,700,000
Effect of net 300:1 share consolidation – – 85.734p (335,577,667)
Revised balance at beginning of the year – – 86.021p 1,122,333
Granted during the year
(Warrants for broker services) – – 7.5p 1,600,000
Granted during the year
(Warrants for advisor services) – – 7.5p 1,585,929
Lapsed during the year (Warrants) (45p) (133,333) – –
Lapsed during the year (Options) (1,476p) (43,000) – –
Exercised during the year (7.5p) (2,208,333) – –
Outstanding at the end of the year 17.887p 1,923,596 27.955p 4,308,262
Exercisable at the end of the year 17.887p 1,923,596 39.753p 2,732,333
Share options and warrants outstanding at 30 June 2021, had a weighted average exercise price of 17.887 pence (2020: 27.955
pence) and a weighted average contractual life of 3.04 years (2020: 3.11 years). To date no share options have been exercised.
There are no market based vesting conditions attaching to any share options outstanding at 30 June 2021.
475,000 warrants issued for broker services outstanding at the end of the year had a final exercise date of 22 August 2021
and lapsed.
33. Capital commitments
There were no capital commitments at 30 June 2021 or 30 June 2020.
34. Contingent liabilities
There were no contingent liabilities at 30 June 2021 or 30 June 2020.
35. Related party transactions
The remuneration of the Directors and their interest in the share capital is disclosed in the Remuneration Committee report
on pages 23 to 24.
Balances and transactions between companies within the Group that are consolidated and eliminated are not disclosed in
these financial statements.
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eEnergy Group plc
Annual Report & Accounts 2021
Notes to the financial information
Continued
36. Events subsequent to period end
Acquisition of UtilityTeam Topco Limited and related Placing
On 17 September 2021 the Company completed the acquisition of all of the share capital of UtilityTeam TopCo Limited (‘UTT’).
At the same time the Company completed the Placing of 80 million shares which were issued at 15 pence per share which raised
£12.0 million for the Company. The Placing proceeds have been primarily used to settle the initial cash consideration for the
acquisition of UTT.
UTT is a UKbased, Top 20 energy consulting and procurement business, whose services aim to reduce costs and support clients’
transition to Net Zero.
The initial consideration of £14.5 million was satisfied as follows:
• cash consideration of £9.5 million, payable on completion with further cash consideration of £2 million, payable on or before
31 December 2021; and
• the issue of 18.0 million Ordinary Shares, which had a fair value of £3.0 million based on the closing share price on the day
prior to completion.
Further EarnOut Consideration of up to a maximum of £5.1 million may be payable, based on a multiple of 7.0x UTT’s EBITDA,
for the year ending 31 December 2021. eEnergy will pay £7 for every £1 of EBITDA generated in excess of £2.3 million, up to
a maximum EBITDA of £3.0 million (‘EarnOut Consideration’).
The EarnOut Consideration would be satisfied as follows:
• the first £1.5 million of EarnOut Consideration will be paid in cash; and
• any balance, up to £3.6 million, will be satisfied by the issue of new Ordinary Shares at a price that is the higher of 24p and
the 30 day volume weighted average price prior to 31 December 2021.
The initial estimate of the fair value of the assets acquired and liabilities assumed of UTT at the date of acquisition based upon
the UTT consolidated balance sheet at 31 July 2021 are as follows:
£’000
Property, plant and equipment 309
Intangible assets 313
Cash at bank 2,886
Inventory 15
Trade and other receivables 6,166
Trade and other payables (7,167)
Loans and other borrowings (1,836)
Total identifiable net assets acquired 686
Goodwill 18,916
Consideration
Initial consideration (recorded at the market value of the shares issued) 14,457
Contingent consideration 5,145
Total consideration 19,602
Annual Report & Accounts 2021 73
eEnergy Group plc
36. Events subsequent to period end continued
Goodwill relates to the accumulated ‘knowhow’ and expertise of the business and its staff. None of the goodwill is expected to
be deducted for income tax purposes. As we complete the purchase price allocation the Company expects to recognise specific
identifiable intangible assets which may be deductible for income tax purposes. Any separately identified intangible assets will
reduce the value attributed to goodwill.
The initial accounting for the acquisition of UTT is incomplete as at the date of these financial statements given the short period
of time since the acquisition was completed.
37. Control
In the opinion of the Directors as at the period end and the date of these financial statements there is no single ultimate
controlling party.
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eEnergy Group plc
Annual Report & Accounts 2021
Officers and advisers
Directors
NonExecutive Chairman David Nicholl
Chief Executive Harvey Sinclair
Chief Financial Officer Ric Williams
NonExecutive Directors Dr Nigel Burton (Senior NED)
Andrew Lawley
Derek Myers
Gary Worby
Company Secretary Ric Williams
Business Address 32 Threadneedle Street, London EC2R 8AY
Registered Office Salisbury House, London Wall, London EC2M 5PS
Independent Auditor PKF Littlejohn LLP
15 Westferry Circus, Canary Wharf, London E14 4HD
Nominated Advisor and Joint Broker Singer Capital Markets
1 Bartholomew Lane, London EC2N 2AX
Joint Broker Turner Pope Investments
8 Frederick’s Place, London EC2R 8AB
Legal Advisers Fieldfisher LLP
Riverbank House, 2 Swan Lane, London EC4R 3TT
Financial PR Tavistock Communications
1 Cornhill, London EC3V 3ND
Unleashing Net Zero, through Zero Carbon –
Zero Capital – Zero Waste.
Glossary
We are all for zero, operating at the frontier of EnergyasaService (‘EaaS’) disrupting the way
private and public sector organisations procure, measure, and consume energy, for good.
We help clients navigate a journey to Net Zero by providing them with an endtoend Energy
Management solution ‘asaservice’. This includes access to the lowest cost procurement of
Zero Carbon energy through our proprietary eAuction platform in addition to providing access
to their granular energy and emissions data & consumption analytics via the MY ZeERO smart
metering platform; helping them identify energy wastage.
We deliver energy reduction solutions through ‘Energy Efficiency as a Service’; enabled through
Light as a Service deploying LED technology and, in time, through other energy efficiency
solutions, such as IOT enabled controls and heating optimisation.
We now offer onsite solar generation and intend to offer Electric Vehicle charging solutions that
will promote clients’ energy independence and resilience.
Our strategy is to provide a simple, one stop shop solution to organisations wanting to achieve
net zero, but who do not have sophisticated inhouse energy departments. Our business model
is to leverage the groups large customer base which has been secured through our successful
‘Buy & Build’ strategy within energy management and unlock multiple revenue streams as we
deliver energy reduction solutions for our customer base.
The following table provides an explanation of certain technical terms and abbreviations used in this announcement.
The terms and their assigned meanings may not correspond to standard industry meanings or usage of these terms.
‘ECMs’ Energy Conservation Measures
‘EEaaS’ Energy EfficiencyasaService
‘EMaaS’ Energy ManagementasaService
‘EV’ Plugin Hybrid or Battery Electric Vehicle
‘HVAC’ Heating, Ventilation, and Air Conditioning
‘IoT’ Internet of Things
‘LaaS’ LightingasaService
‘Net Zero’ Achieving net zero greenhouse gas emissions
‘TWh’ Terawatt hour, one trillion watts for one hour
The market for energy efficiency
32 Consolidated statement of financial position
Financial statements
26 Independent auditor’s report
31 Consolidated statement of comprehensive income
Contents
Strategic Report
Highlights
At a glance
Unleashing Net Zero
Chairman’s statement
CEO’s report
1
2
4
5
6
8
10 Our strategy
12 CFO’s report
15 Case study
16 Principal risks and uncertainties
18 S172 statement
Governance
19 Environment, Social & Governance (‘ESG’) report
21 Group Directors’ report
22 Statement of Directors’ responsibilities
23 Directors’ remuneration report
25 Board of Directors
33 Company statement of financial position
34 Statement of cashflows
35 Consolidated statement of changes in equity
36 Company statement of changes in equity
37 Notes to the financial statements
Corporate information
74 Officers and advisers
IBC Glossary
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The paper used in this document contains
materials sourced from responsibly managed
and sustainable commercial forests,
certified in accordance with the FSC®
(Forest Stewardship Council).
C004309
2021
eEnergy Group plc
Annual Report & Accounts
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Salisbury House
London Wall
London
EC2M 5PS
eenergyplc.com
UNLEASHING
NET ZERO