eEnergy PLC (AIM:EAAS) shares fell 33% to 3.44p after the company issued a sharp downgrade to its full-year profit expectations following a comprehensive pipeline review by newly appointed interim chief executive John Gahan.
The energy-solutions company now expects full-year revenue of approximately £32 million, down from previous guidance of £38 million, with adjusted EBITDA of £1.7 million versus £4.5 million forecast previously.
First-half revenue of £22 million showed strong growth from £10.1 million in the prior year, but the board's revised assessment suggests significant weakness in the second half.
Gahan, who commenced in May 2026, has conducted a detailed reassessment of the company's investment-grade sales opportunities and concluded the pipeline was materially overestimated.
He has simultaneously launched a major restructuring programme to reduce operating costs by almost a third, generating annualised savings of approximately £2 million from the current £6.3 million base.
The cost-cutting exercise will improve second-half adjusted EBITDA by roughly £1 million, though first-half results will include a £0.5 million restructuring charge.
The board's candid acknowledgement that commercial expectations have been substantially reset reflects the reality check triggered by Gahan's review.
eEnergy designs and delivers energy-saving and energy-generating solutions. The sharp downgrade suggests execution challenges in converting pipeline opportunities into revenue, a critical concern for investors in growth-stage companies.
The company will report interim results for the six months ending 30 June 2026 around 30 July. With the cost base now rightsized and expectations reset, management hopes the combination of modest second-half EBITDA improvement and a clearer strategy will stabilise investor confidence.
