Good Energy to pay almost £14m for JPS Renewable Energy Ltd
Chippenham-based Good Energy Group, the 100 per cent renewable electricity and energy services provider, is seeking to acquire Maidstone-based JPS Renewable Energy Ltd, a specialist solar and storage installation and distribution business, and its wholly owned subsidiary, Trust Solar Wholesale Limited, a standalone distribution and procurement business.
The acquisition is on a debt-free, cash-free, basis for an initial consideration of £7 million with further deferred consideration of up to £6.75 million, payable in cash over a two-year period, subject to certain performance conditions. Together, the total maximum consideration is £13.75 million.
Good Energy is now seeking to raise £2.1 million maintain its cash reserves for operational needs.
Based in Maidstone, Kent, JPS Group was founded in 2011 and comprises a leading solar and storage installer and its wholly owned subsidiary Trust, a standalone distribution and procurement business whose customers include JPS.
For the financial year ended 30 April 2023, JPS Group reported revenue of £12.2 million and profit before tax of £0.6 million.
For the financial year ending 30 April 2024, the JPS Group is on track to deliver revenue of £19.6 million and profit before tax of £1.3 million.
The Acquisition strengthens Good Energy's service offering and accelerates the Company's energy services growth strategy in targeting higher margin, growth markets with lower working capital requirements. Good Energy is targeting an equal weighting of energy services and energy supply earnings by 2025.
Nigel Pocklington, Chief Executive Officer of Good Energy Group PLC, said:
"The acquisition of the JPS Group is an exciting next step in Good Energy's growth strategy and further solidifies our position as the UK's go-to solar specialist.
"Solar is experiencing a boom in the UK and its role in decarbonising our energy system is absolutely crucial. Installations are back at the peak we saw during the introduction of the Feed-in-Tariff - another period in which Good Energy was a key player, leading to our position as the largest voluntary administrator of the scheme today with over 180,000 solar generator customers.
"The solar installation market was worth £1.9 billion in 2023 with installations growing 38 per cent. on already strong growth in 2022. This is pronounced in the South East, which is the region with the fastest rate of domestic installations in the country.
"The JPS Group has carved a position as a leading installer across the region, serving as the solar specialist in the South East of the UK for larger homes and properties with more complex requirements. It is growing at a significant rate to help supply a specific market that is demanding premium clean energy products and services, which Good Energy is well positioned to provide as a premium, trusted and truly green energy supplier.
"Having integrated our previous acquisitions we are already marketing solar, storage and heat pumps alongside supply as everything you need for a greener home or business. Integrating JPS Group under the Good Energy brand will help to grow and consolidate Good Energy's market share, affirm us as solar and storage experts, while also providing the opportunity for Good Energy to introduce its wider product suite to a new customer base."
