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eEnergy warns of delays, eyes breakeven trading in H2

Tue 30 June 2020 08:21 | A A A

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(Sharecast News) - Energy efficiency group eEnergy said on Tuesday that it was aiming to turn a profit following an expansion away from its home market of Ireland but also warned of coronavirus-related contract delays.

The AIM-listed group, which provides energy-efficiency-as-service and primarily targets the education sector, has picked up 18 new contracts with UK and Irish schools since the beginning of April, valued at a total of £1.3m and putting it on track to record full-year sales of £4.7m.

However, eEnergy also reported an operating loss of £615,000 for the period but told shareholders that it was on track to breakeven in the second half of 2020. The company's loss per share from continuing operations widened to 0.03p from 0.02p.

Cash and equivalents sunk to £101,000 from £441,000, while net liabilities increased to £82,000 from £73,000.

eEnergy also warned that with many schools managing the complexities of pupils returning following the easing of government Covid-19 lockdowns, some planned installations had been delayed to July and August.

As eEnergy highlighted that it only recognises revenue at the point of installation, more of the revenue from these contracts, previously expected in June, would now be delayed until the financial year ending 30 June 2021.

Chief executive Harvey Sinclair said: "The past few months have been a difficult time for many businesses. The safety of all our employees and stakeholders has been paramount.

"However, the board is looking for the group to come out of this pandemic stronger and moving towards a bottom-line breakeven run-rate in the coming six months."

As of 1340 BST, eEnergy shares were down 6.67% at 5.95p.

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