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Good Energy enhances UK reach with acquisition of solar-focused JPS

12th Feb 2024 10:45

(Alliance News) - Good Energy Group PLC on Monday said it would be acquiring JPS Renewable Energy Ltd for up to GBP13.8 million, further expanding its energy installation footprint in the UK.

The Wiltshire, England-based renewable electricity and energy services company has entered into a conditional binding agreement to acquire the entire share capital of JPS, a Kent-based provider and installer of solar panels for homes across the south east. The company will also acquire JPS's wholly owned distribution subsidiary, Trust Solar Wholesale Ltd.

The deal involves an initial consideration of GBP7.0 million, which includes a GBP3.7 million cash payment and an allotment of 1.3 million new shares in the company. A proportion of these shares have been placed on behalf of JPS's shareholders through a vendor placing of 842,000 shares at a price of 250 pence each, a 9.4% discount to Good Energy's Friday closing price of 276 pence.

Shares in Good Energy were down 7.1% at 256.40 pence each in London on Monday morning.

This will be followed by a deferred consideration of up to GBP6.8 million over a two-year period after the deal's completion, subject to JPS meeting certain performance benchmarks.

The acquisition is expected to occur on Tuesday, Good Energy said, and will become earnings accretive in the year ending December 31.

For its financial year ended April 30, JPS reported GBP12.2 million in revenue alongside a pretax profit of GBP600,000. Good Energy said that the company is on track for an improved performance in the current year, in which JPS is expected to deliver GBP19.6 million in revenue and GBP1.3 million in pretax profit.

The acquisition of the solar panel-provider is a "natural next step" for building the company's installation footprint in the south, Good Energy said, and moves it towards its stated goal of becoming a "key driver" in the UK's energy transition. In 2022, Good Energy acquired Igloo Works, a heat pump installer, and in June, it acquired Wessex ECOEnergy, a solar panel installer for the south west of the UK.

Chief Executive Officer Nigel Pocklington said: "The acquisition of the JPS Group is an exciting next step in Good Energy's growth strategy and further solidifies our position as the UK's go-to solar specialist.

"The solar installation market was worth GBP1.9 billion in 2023 with installations growing 38 per cent on already strong growth in 2022. This is pronounced in the south east, which is the region with the fastest rate of domestic installations in the country."

Good Energy also reiterated its forecasts for the full year ending December 31, predicting pretax profit of at least GBP4 million.

By Hugh Cameron, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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