Good Energy Group PLC (AIM:GOOA) said its performance for 2021 continues to be in line with board expectations, despite the current volatility in the UK energy markets and low wind speeds that affected its third-quarter results.
The renewable energy supplier said long-term growth drivers, particularly in the electric vehicle (EV) market, remain buoyant.
The trading update followed news late on Friday that Ecotricity’s 400p per share hostile offer for Good Energy had lapsed after the bid was accepted by shareholders representing just 36.5% of Good Energy, below the 50% minimum level set by Ecotricity.
Commenting on the lapsed offer, Good Energy chair Will Whitehorn said: ”In the current turbulence of the wider energy market caused largely by fossil fuel prices and scarcity, the company's strategy for digitised, localised clean energy and electric vehicle services is more relevant and more urgently needed than ever.
"We consider the rejection of the hostile offer a resounding endorsement of that from shareholders and are now fully focussed on delivering our vision with their backing."
In its trading update, Good Energy said it is taking “a very cautious stance” in the current environment and is over 90% hedged for the next 12 months, weighted to this coming winter, limiting its exposure to the price volatility in the UK domestic energy market.
However, it noted that given the recent supplier exits, its business remains subject to a higher level of market risk.
The group said it has implemented material price increases in both its domestic and business supply segments and that it remains vigilant to the speed of changes and volatility in supply markets.
“Customer billing and collections remain a core short-term focus to minimise working capital stress and maintain a cash buffer over the winter,” it noted.
Good Energy highlighted the significant opportunity in the UK EV market, which saw record breaking growth in September, when one in seven of all cars sold was a battery EV, representing a 49.4% increase from September 2020.
Good Energy said it is “perfectly placed” to capitalise on the growth in this market through its investment in the EV mapping platform Zap-Map and EV services and products.
Zap-Map continues to perform strongly with positive trends on recurring revenue subscriptions, further rollout of Zap-Pay with key chargepoint operators and a pipeline of products for the remainder of 2021, Good Energy said, adding that it would take part in upcoming fundraising activities for Zap-Map.
"Despite the recent volatility in wholesale energy prices, we remain positive on the long-term opportunity in our chosen markets. Recent electric vehicle sales data proves the acceleration of adoption and reinforces the scale of opportunity for Good Energy in this market,” said Good Energy chief executive Nigel Pocklington.
"The challenges within the UK energy sector have been well documented, but - with 20 years' experience - we remain differentiated through strong governance, a prudent approach to risk management and a genuinely differentiated green product.”
Shares fell almost 4% to 340p in early trade.