Driving Net Zero through innovation and technology
eEnergy is a leading B2B energy services business in the UK, supporting c.2,000 clients with their energy strategies across public and private sectors. We believe the energy crisis has combined with the Net Zero agenda to create a tipping point for action on energy security, costs, consumption and waste. After three years of significant growth and investment since listing on AIM, eEnergy looks ideally placed to play a leading role in the Net Zero transition. This is underpinned by a compelling proposition, which delivers energy efficiency upgrades that are paid for by the savings generated.Today’s interims to 30th June (12-month period) confirm the continuing strength of demand, which we expect to drive sustained EBITDA growth and an improvement in free cashflow (estimated 10% free cash flow yield from 2025). In our view, medium term growth prospects are highly attractive and are not reflected in a very modest £20m market cap.
A modest P/E ratio (7.7x falling to 6.3x in FY24/FY25) appears to overlook the growth trajectory, with EBITDA expected to increase by 41% in 2023 and 30% in FY24 without factoring in the potential for M&A. A 7.5x EV/EBITDA rating would suggest Fair Value of 13p per share.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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