Renewable electricity supplier Good Energy saw profits before tax rise by 30 per cent for the year ending December 31 2009, its 10th year of operation.
The group, which trades in 100 per cent
renewable energy, reported turnover increased to £18.3 million from £17.7 million in 2008. Operating profit was up 37 per cent to £675,336.
Good Energy put the improved
financial performance down to a growth in its customer base to more than 26,000. In particular, it saw its gas business grow and said it had benefited from improved
operating systems and debt collection, measures it brought in as a result of the economic downturn.
The gas and renewable heat side of the business saw revenues rise £0.7 million. The total customer numbers doubled from 1,384 at the end of 2008 to 2,675 at the end of 2009, following the launch of the company’s renewable heat product 'HotROCs’. Good Energy chief executive officer Juliet Davenport said the gas business was now profitable.
Good Energy electricity revenues fall
On the electricity supply side, despite a modest 3.5 per cent increase in customers, the company saw a one per cent decrease in revenue from electricity sales during 2009. It said this was mainly due to prices changes at the beginning of the year and low average consumption by its customers. However, the company managed to reduce its cost of sales by five per cent in the same year.
On the generation front, output fell mainly due to lower average wind speeds during 2009, but Good Energy said it had more than doubled its community of generators since 2008. It now had over 900 renewable generators an over 350 renewable heat generators from which it sources its energy.
Construction to start on Delabole wind farm
The main development on the generation front in the last year has been arranging finance for the re-powering of the company’s 10-turbine Delabole wind farm. A £11.8 million financial package got final approval in January 2010 and construction is now set begin on the new four 2.3 megawatt turbine farm in the second quarter of 2010.
Davenport said the company was now "investigating the further development of small to medium-sized wind farms to supply energy to Good Energy Ltd".
Commenting on the results as whole, Davenport said: "All in all, it’s been a busy year for Good Energy Group […] The company has matured significantly, investing in both systems and staff to ensure that our customers not only get Good Energy’s 100 per cent renewable electricity, but great customer service from people who really understand renewable energy.
"We’ve also seen some significant Government announcements on Green Accreditation, Feed-in Tariffs and Renewable Heat Incentives, all of which are potentially beneficial for our business."
John Sellers, Group chairman, added: "We have the basic assets for success – loyal and passionate customers, a growing marketplace,
legislative changes playing to our strengths, a tremendous product and a great team operating the business."
Good Energy to introduce dividend programme
The company said it expected to see a continued improvement in its financial performance in 2010 and therefore planned to introduce a dividend programme later in the year.
Good Energy Group is quoted on PLUS (Ticker: GEGP).
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Related links:
www.goodenergygroup.co.uk