Energy One Puts Up Some Good Numbers
Energy One has issued its annual report for the financial year ending June 30, 2021. It was a good year for the group growing revenue by 35% and EBITDA by 53% while reducing borrowings to zero. More than half of its revenue now originate in Europe via its Contigo and eZ-nergy assets and more than 80% of its revenues are now recurring. Given that the year was disrupted by lockdowns, COVID and other events, these are extraordinarily strong results for the company.
The detail is also interesting. Energy One’s Australian business saw its revenues grow 13% and profitability even more (18%). It is also now fully prepared for the shift to a 5-minute settlement market that will happen in Australia in October this year, it says, having gained three customers already as a direct result of the market change. In Europe, Contigo grew revenue by 17% and increased profitability to 25% as measured by EBITDA. However, the interesting part of the story told by Energy One’s financial report is that of eZ-nergy. It generated revenues of $3.4mUSD ($4.7m AUS) and an EBITDA of 36%. The two entities also signed their first new joint European customer during the period. As of the time of the report, Energy One had 230 installs, a 2.9% churn rate and 62% gross margin.
The company remains bullish over the future citing the energy transition as creating opportunity as the energy market fragments. This fragmentation – smaller distributed generation units – is seen by Energy One as the ideal market for the type of SaaS products and services offered by eZ-nergy. It expects to expand the types of services offered by eZ-nergy across Europe and into Australia. It also sees its enFlow software as having a role in helping automate smaller customers as well.
Part of Energy One’s success comes from an increasingly diversified but complimentary set of products that have been acquired by development and acquisition. This provides cross-selling opportunities for the group without the friction of having competing products and provides a clear message to the market regarding the overall footprint of the company’s products and services. This strategy is set to continue with the company seeking the right mix of acquisition and homegrown development to attract new customers, grow its installed base and enter new markets. Despite this, Energy One offer initial guidance for the current financial year that is cautiously optimistic citing continued disruption from COVID and lockdowns and the need to continue to consolidate. It projects, at this point, a similar financial performance for FY22 citing a full pipeline, increasing travel in Europe and a strong balance sheet.
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