Good Energy earnings halve despite customer growth

Renewable energy supplier Good Energy said its first-half earnings had halved year-on-year despite a 36 per cent increase in customers.

For the period ending June 30 2014 the company’s interim management statement said operating profits halved from £1.4 million in H1 2013 to just £0.7 million this year.

Although the company saw a 82 per cent increase in the number of its gas customers and its electricity customer base grew by 35 per cent, operating profits took a hit from a combination of high investment and reduced customer demand.

The company cited investment in customer service improvements, marketing activity and infrastructure to support its ongoing growth, as key areas of focus.

Specifically, Good Energy said that in the first half of the year its Hampole wind farm was fully commissioned, on schedule and to budget, with a further two new solar farms energized in Dorset and North Cornwall.

In addition, final planning permission was received for a 49.9MW solar park on a disused airfield site in Norfolk at the start of the year, the company said. Subsequently, in August, Good Energy agreed terms for the sale of this site to a member of the Trina Solar group.

“We remain on track to meet our goal of delivering 50% of electricity from our own renewable generation assets by 2016,” said Good Energy chairman John Maltby.

In addition, the company added that its growing customer numbers were tempered by the effects of reduced energy use due to unusually mild weather in the first quarter of the year, which was consistent with the downturn experienced by the wider market.

Despite lower earnings the company reported stronger gross profits of £7.4 million compared to £6.3 million for the same period last year, as the customer base grew to around 66,000.

“We look forward to making further progress in the second half of our financial year,” chief executive Juliet Davenport said.