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Good Energy

May 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GOOD
  • Price:
  • 253.5p
Investors face a dilemma with Good Energy. As the energy markets stabilize, the company’s Supply business, having set fixed buying prices for electricity and gas from its portfolio of clean energy projects at high levels, incurs losses on new contracts. However, as these supply contracts renew, it anticipates transitioning to more favourable deals. Consequently, it reported a stellar H1 performance, but as anticipated, the Supply division experienced losses in H2 when what it could charge customers fell, culminating in a group pretax profit of £5.7m and EPS of 17.1p. But alongside that, Good Energy has other irons in the fire. It has been using the cash (£35m left at the year end including £7m of customer prepayments - excess dire ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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