eEnergy has taken the knife to its full-year forecasts, with a fresh review of its sales pipeline forcing a sharp cut to both revenue and profit expectations.
Shares sank 25% in early trading on Monday.
The AIM-listed energy services group now expects FY26 revenue of around £32m, down from the £38m previously pencilled in.
The hit to profitability is fairly dramatic; adjusted EBITDA guidance has been more than halved, slashed to £1.7m from £4.5m, and now sits below the £2.2m the company delivered last year.
The downgrade follows a detailed review led by John Gahan, appointed interim chief executive in May. After combing through the pipeline, the board has concluded that £66m of investment-grade opportunities more realistically reflects what the business can convert into revenue over the short- to medium-term. This is a much more cautious assessment than previously.
The CEO is launching a restructuring and cost-cutting drive aimed at simplifying the group and trimming the cost base. The exercise should strip almost a third out of annual operating costs and deliver roughly £2.0m of annualised savings, set against last year’s £6.3m cost base, with about £1.0m of that flowing through to H2 adjusted EBITDA.
And some may find solace in the half-year numbers. H1-26 revenue is expected at circa £22m, well up on the £10.1m a year earlier, with adjusted EBITDA of around £1.2m against £0.5m. But it’s the downward revision to the full-year outlook and the meaningfully lighter pipeline that shareholders will be upset with ahead of Wednesday’s AGM.