Year End Trading Update and Directorate Change

Eneraqua Technologies PLC

14 March 2024

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

14 March 2024 

Eneraqua Technologies plc

("Eneraqua", the "Company" or the "Group")

Year End Trading Update and Directorate Change

Eneraqua Technologies plc, a specialist provider of energy and water efficiency solutions, provides an update on trading for the year ended 31 January 2024 (FY24). The Company also announces that Iain Richardson will be stepping down from his role as CFO with effect from 31 May 2024 and be replaced on an interim basis by his deputy, James Lamb, the current Group Financial Controller. 

Trading Update

The Company navigated challenging market conditions during FY24 and expects to report revenues of c.£54m and an adjusted PBT loss in line with consensus forecasts* of £6.0m, with a stronger than anticipated cash position at the year end of £6.4m representing a net cash position of £1.2m**. 

Across the Group, we are seeing increasing demand for our energy and water solutions as both central and local government recognise the broader benefits of our solutions and the well documented inflationary impacts on our customers subside. 

Energy

The Group has recently secured significant contracts including a £12.7m contract with the Royal Borough of Kensington & Chelsea and a £7.2m contract with a world class museum, gallery and leisure complex, both of these contracts are underway. The Group also secured its first major NHS contract through the earlier acquisition of Mathewsons, and this sector is one with exciting growth potential for the Group.

Water

The Group is making solid progress in the UK with greater awareness and adoption of our water technologies.  This is notwithstanding the recent challenges created by proposed UK Government legislative changes on net nutrient neutrality policy which resulted in contracts being deferred during FY24 whilst customers sought clarification.

The UK Government's policy on net nutrient neutrality and housing development has since stabilised and the Group has signed its first nutrient neutrality contract with a local authority in the South-East of England.  This will see Control Flow HL2024 products installed in a first phase of 3,000 existing homes which unlocks a new development of 1,000 homes that has been stalled for over 18 months. 

The Group has also expanded internationally having secured new student housing and care home customer wins in Spain and in India the Group has signed contracts to deliver additional zero-carbon irrigation solutions and to undertake trials of Control Flow HL2024 in 3,000 homes.

Directorate Change

Eneraqua also announces that Iain Richardson will be stepping down from his role as CFO, by mutual agreement, on 31 May 2024. James Lamb, Group Financial Controller, will take over the role of CFO on an interim basis, while the process to appoint a permanent successor is underway.

The Board recognises the important role played by Iain over the past 3 years would like to thank him for his dedication and contributions to the Group.  

Mitesh Dhanak, CEO Eneraqua Technologies, said: "We have navigated an extremely challenging year, which has been impacted by inflationary pressures on client budgets in Energy and the hiatus in Government policy on net neutrality and development, both of which we are encouraged to see are stabilising.

"Across both energy and water we are well placed to capitalise on growth in both the UK and internationally, and the Board remains confident that the potential for the business driven by the financial, environmental and economic imperatives of the carbon transition continues to be strong. These positive factors, together with our proven expertise and good customer relationships, are increasingly driving an increase in the range and scale of opportunities available to us. The Board is pleased to confirm that FY25 has started in line with its expectations."

 * The Company considers that consensus market expectations are:  Revenue of £55.0m, adjusted PBT loss of £6.0m and net cash of £1.0m.

**excluding IFRS 16 liabilities

For further information please contact: Eneraqua Technologies plc Mitesh Dhanak, Chief Executive Officer Iain Richardson, Chief Financial Officer	Via Alma
Liberum (Nomad and Joint Broker) Edward Mansfield Anake Singh	Tel: [phone]
Singer Capital Markets (Joint Broker) Sandy Fraser Asha Chotai	Tel: [phone]
Alma Strategic Communication (Financial PR) Justine James Andy Bryant Will Ellis Hancock	Tel: [phone] [e-mail]

Notes to editors

Eneraqua Technologies (AIM:ETP) is a specialist in energy and water efficiency. The Group operates in two markets, energy and water. Energy is the larger, with the Company focused on clients with end of life gas, oil or electric heating and hot water systems. The Group provides turnkey retrofit district or communal heating systems based either on high-efficiency gas or ground/air source heat pump solutions that support Net Zero and decarbonisation goals.

Water is a growing service offering focused on water efficiency upgrades for utilities and commercial clients including hotels and care homes.

The Group's activities are underpinned by the Company's wholly-owned intellectual property, the Control Flow HL2024 family of products which reduce water wastage and improve the performance of heating and hot water systems.

The Group's main country of operation is the United Kingdom. The Group's head office is based in London with additional offices in Leeds, Washington (Sunderland), India, Spain and the Netherlands. The Group has 206 employees, with the majority employed within the UK.

To find out more, please visit:  www.eneraquatechnologies.com

 

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