AIM-quoted Good Energy (LON: GOOD) is building on its energy efficiency services business through the acquisition of Maidstone-based JPS Renewable Energy, which is a solar and storage installation business. The strategy is to have energy services operations that have an equal weighting with renewable energy supply earnings by 2025.
The initial consideration is £7m in cash and shares with deferred consideration of up to £6.75m over two years. The vendors are placing 842,000 of the 1.32 million shares issued at 250p each.
JPS generated revenues of £12.4m and pre-tax profit of £600,000 in the year to April 2023 and pre-tax profit could increase to £1.3m this year. The deal should be earnings enhancing in 2024.
Solar installations are back to the previous peak and the small scale solar market was worth £1.9bn in 2023 after a 38% increase in installations. The fastest rate of growth is in JPS’s region.
Good Energy is already involved in the solar installation sector in south west England. JPS also owns a complex heating systems distribution business.
Good Energy is still trading in line with expectations. The share price fell 8.7% to 252p.
