Renewable electrical energy provider Good Power Group on Thursday introduced the deliberate sale of its 47.5 MW renewable asset portfolio as a part of a strategic shift to vitality and mobility providers, pushed by new investments within the car mapping platform Zap-Map electrics.
The AIM-listed firm mentioned it’s launching a course of to promote its total 47.5 MW era portfolio, with the proceeds for use to speed up and help beforehand recognized strategic progress alternatives.
He mentioned these investments will not occur all of sudden, so within the meantime, the product will additional strengthen the corporate’s steadiness sheet.
Good Power’s manufacturing portfolio was refinanced and restructured in April as a part of a steadiness sheet simplification train, and as of June 30 the portfolio was held at a internet e book worth of £ 56.8m.
In early 2020, Good Power undertook a proper revaluation train of the property, as their historic e book worth didn’t totally mirror their free market worth.
The corporate mentioned it had appointed KPMG as monetary advisor for the divestiture and anticipated to finish the method within the first quarter of 2022.
In the meantime, the board mentioned the EV Zap-Map mapping platform now has over 290,000 registered customers and over 95% of UK public factors mapped on its community, with over 75% of electrical car drivers in UK having downloaded the platform.
The corporate has mentioned it intends to take part within the present funding spherical being undertaken by Zap-Map, which has an anticipated dimension of £ 7million.
“This may allow Zap-Map to embark on its subsequent set of enterprise and growth objectives, which can crystallize its management place for its market providers within the UK and provoke levels of worldwide enlargement into chosen territories. “mentioned the board of administrators of Good Power in its assertion.
It mentioned it needs to be accomplished in the same timeframe because the divestiture of its manufacturing property.
As well as, Good Power mentioned it’s constructing a brand new platform for its decentralized vitality providers enterprise, with the intention of enhancing its present merchandise and proposals and offering new providers to prospects at tariffs of. redemption.
“This platform will allow good exporting for photo voltaic prospects and the power to pay precise somewhat than inferred tariffs, offering materials advantages to the enterprise and prospects,” the directors mentioned.
“We count on a return on funding of £ 1million to ship this platform inside 12 months and can be rolled out within the first half of 2022, to help the expansion of this phase.”
Good Power mentioned it expects to make additional investments in transportation and decentralized vitality, to implement its strategic plan.
its exchanges, the board famous that the vitality provide panorama had modified “considerably” in current months, however mentioned that within the spring it anticipated “some standardization. ”Inside the home market, with“ far fewer contributors ”competing in a extra balanced market on product attributes, differentiated service and worth.
Good Power mentioned it expects a point of trade restructuring, with an elevated stage of regulatory oversight, significantly over capital adequacy, shopper safety, and operational and monetary governance.
The market had continued to expertise excessive wholesale vitality costs, resulting in the chapter of twenty-two provide corporations since early September, of which 13 had been introduced since October 13.
“These market exits could have a brief time period impression on the corporate,” mentioned the board of administrators.
“We count on to incur unanticipated prices of as much as £ 1million via the renewable vitality obligation pooling processes and feed-in tariffs, and £ 1.5million in further prices in merchandise base of extra business and home prospects than anticipated. “
Nevertheless, given its exemption from the worth cap, Good Power mentioned it had the flexibleness to alter tariffs additional if vital and would proceed to observe this intently all through the winter.
Continued volatility within the vitality sector would put short-term monetary stress on the corporate, however the firm mentioned there was nonetheless a strategy to meet its expectations for the complete yr.
“Good Power has been on the forefront of the UK’s vitality transition for over 20 years, driving the expansion of renewable vitality manufacturing,” mentioned CEO Nigel Pocklington.
“Our work is finished as developer and asset proprietor as we concentrate on new frontiers – transportation electrification and decentralized energy era.
“A bigger funding in Zap-Map will strengthen their market place and assist present services and products to electrical car drivers. “
Pocklington mentioned the corporate noticed “important alternatives” to broaden the enterprise internationally.
“We’re additionally rising investments in a model new platform to raised serve our decentralized vitality prospects.
“With one of many largest feed-in fee assured buyer bases, we’re investing in new services and products to raised meet their wants. “
Because the retail vitality market continued to expertise near-term challenges, Nigel Pocklington mentioned Good Power was “optimistic” for the long run.
“We’ll largely be a debt-free firm with a robust observe report for progress.”
As of 11:37 GMT, shares of Good Power Group have been down 1.75% at 280p.