Half Year 2026 Eenergy Group PLC Earnings Call

August 6, 2026

Speaker #2: Introduction: Good morning and welcome to the eEnergy Group PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen.

Moderator: Construction. Good morning, and welcome to the eEnergy Group plc investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll, and I'd like to hand you over to the management team. Jon, good morning, sir.

Operator: Construction. Good morning, and welcome to the eEnergy Group plc investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll, and I'd like to hand you over to the management team. Jon, good morning, sir.

Speaker #2: Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it is appropriate to do so.

Speaker #2: Before we begin, I'd like to submit the following poll, and I'd like to hand you over to the management team. John, good morning, sir.

Speaker #3: Well, good morning, Robin Lee, and welcome to the eEnergy H1 2026 interim results investor presentation. I'm joined today on the presentation by Akash, Akash Harnal.

John Gahan: Well, good morning, everybody, and welcome to the eEnergy H1 2026 interim results investor presentation. I'm joined today on the presentation by Akash. Akash Harnal has been in the finance function for just over two years, and following some of the changes which we'll talk about shortly, Akash has joined the senior leadership team and is now the Finance Director. I have retained my CFO role as well as acting as the interim CEO role. It's obviously been a very busy period, and it's been pretty turbulent, but actually, we feel that we really are now turning the corner and things are beginning to look up for us, and I'll be going through some of the details shortly. On the H1 results summary, we had record revenue in the H1 of GBP 21.8 million. Revenue more than doubled from GBP 10.1 million the previous year. Adjusted EBITDA was GBP 1.2 million.

Jon Gahan: Well, good morning, everybody, and welcome to the eEnergy H1 2026 interim results investor presentation. I'm joined today on the presentation by Akash. Akash Harnal has been in the finance function for just over two years, and following some of the changes which we'll talk about shortly, Akash has joined the senior leadership team and is now the Finance Director. I have retained my CFO role as well as acting as the interim CEO role. It's obviously been a very busy period, and it's been pretty turbulent, but actually, we feel that we really are now turning the corner and things are beginning to look up for us, and I'll be going through some of the details shortly. On the H1 results summary, we had record revenue in the H1 of GBP 21.8 million.

Speaker #3: He's been in the finance function for just over two years, and following some of the changes which we'll talk about shortly, Akash has joined the senior leadership team and is now the Finance Director.

Speaker #3: I have retained my CFO role, as well as acting as the interim CEO. It's obviously been a very busy period, and it's been pretty turbulent, but actually, we feel that we really are now turning the corner and things are beginning to look up for us. I'll be going through some of the details shortly.

Speaker #3: So, on the H1 results summary, we had record revenue in the first half of $21.8 million. Revenue more than doubled from $10.1 million the previous year.

Jon Gahan: Revenue more than doubled from GBP 10.1 million the previous year. Adjusted EBITDA was GBP 1.2 million.

Speaker #3: Adjusted EBITDA was £1.2 million. Again, EBITDA had more than doubled from the first half of '21 to H1 '25. Gross margin was lower than we were expecting.

John Gahan: Again, EBITDA had more than doubled from the H1 of H1 2025. Gross margin was lower than we were expecting. We'll come on to the real reasons for that and explain it. Effectively, gross margin was 17% against 30.6% last year and was lower mainly due to the impact of the Mace project. The Mace revenue was around circa 70% of the total H1 revenue. We incurred GBP half a million worth of unrecoverable Mace contract costs, because there was a six-month time lag between award and actually start on site, and it was a government contract pretty much on take-it-or-leave-it terms. That's not normal for us. We're normally able to pass on increases in product prices if there is a delay between award and start on site. We end up incurring a hit of GBP half a million of unrecoverable contract costs.

Jon Gahan: Again, EBITDA had more than doubled from the H1 of H1 2025. Gross margin was lower than we were expecting. We'll come on to the real reasons for that and explain it. Effectively, gross margin was 17% against 30.6% last year and was lower mainly due to the impact of the Mace project. The Mace revenue was around circa 70% of the total H1 revenue. We incurred GBP half a million worth of unrecoverable Mace contract costs, because there was a six-month time lag between award and actually start on site, and it was a government contract pretty much on take-it-or-leave-it terms. That's not normal for us. We're normally able to pass on increases in product prices if there is a delay between award and start on site. We end up incurring a hit of GBP half a million of unrecoverable contract costs.

Speaker #3: We'll come on to the real reasons for that and explain it. Effectively, gross margin was 17% against 30.6% last year, and was lower mainly due to the impact of the MACE project.

Speaker #3: The MACE revenue was around 70% of the total first-half revenue. We incurred half a million pounds' worth of unrecoverable MACE contract costs because there was a six-month time lag between award and actually starting on site, and it was on government terms.

Speaker #3: That's not normal for us. We're normally able to pass on increases in product prices if there is a delay between award and start on site.

Speaker #3: So, we end up incurring a hit of half a million of unrecoverable contract costs. And also, we have to remember we expensed £600,000 of the contract assets, which we booked in the second half of last year.

John Gahan: Also, we have to remember, we expensed GBP 600,000 of the contract asset, which we booked in the H2 of last year. Effectively, those two items together reduced gross margin by around 5%. Gross margin would have been in the low twenties on a statutory accounts basis had we not had those two items. Cash was disappointing. It was just GBP 600,000. The previous year, we were at GBP 3.1 million. The cash flow was definitely hampered by a number of factors, principally around the solar PV paperwork compliance. This will come as a surprise to investors, and it was a bit of a surprise to us. Effectively, almost all of the solar PV work on Mace had been completed by the end of June. Unfortunately, we had not kept the paperwork compliance in good enough order, and therefore, we are waiting to invoice.

Jon Gahan: Also, we have to remember, we expensed GBP 600,000 of the contract asset, which we booked in the H2 of last year. Effectively, those two items together reduced gross margin by around 5%. Gross margin would have been in the low twenties on a statutory accounts basis had we not had those two items. Cash was disappointing. It was just GBP 600,000. The previous year, we were at GBP 3.1 million. The cash flow was definitely hampered by a number of factors, principally around the solar PV paperwork compliance. This will come as a surprise to investors, and it was a bit of a surprise to us. Effectively, almost all of the solar PV work on Mace had been completed by the end of June. Unfortunately, we had not kept the paperwork compliance in good enough order, and therefore, we are waiting to invoice.

Speaker #3: So, effectively, those two items together reduced gross margin by around 5%. So, gross margin would have been in the low 20s, on a statutory accounts basis, had we not had those two items.

Speaker #3: Cash was disappointing. It was just £600,000. The previous year we were at £3.1 million. The cash flow was definitely hampered by a number of factors, principally around the solar PV paperwork compliance.

Speaker #3: This will come as a surprise to investors—it was a bit of a surprise to us. But effectively, almost all of the solar PV work on MACE had been completed by the end of June. Unfortunately, we had not kept the paperwork compliance in good enough order, and therefore we're waiting to invoice. As we'll explain later, there was around £4.8 million of MACE cash which was yet to be invoiced and collected, effectively, at the 30th of June.

John Gahan: As we'll explain later, there was around GBP 4.8 million of Mace cash, which was yet to be invoiced and collected effectively at 30 June. This cash will be received in the H2 of 2026. Following my appointment as the interim CEO, we launched a cost-saving exercise pretty quickly. The impact of this exercise will save an annualized GBP 2 million in costs. There's an anticipated benefit of around GBP 1 million in the H2 of this year. That work commenced in June and was effectively completed by the end of June. I've been in position now for 11 weeks. There's been a lot of change in the last 11 weeks. We've been streamlining the SLT and streamlining the operations of the business to reduce costs, and I'll give you some more details on that shortly.

Jon Gahan: As we'll explain later, there was around GBP 4.8 million of Mace cash, which was yet to be invoiced and collected effectively at 30 June. This cash will be received in the H2 of 2026. Following my appointment as the interim CEO, we launched a cost-saving exercise pretty quickly. The impact of this exercise will save an annualized GBP 2 million in costs. There's an anticipated benefit of around GBP 1 million in the H2 of this year. That work commenced in June and was effectively completed by the end of June. I've been in position now for 11 weeks. There's been a lot of change in the last 11 weeks. We've been streamlining the SLT and streamlining the operations of the business to reduce costs, and I'll give you some more details on that shortly.

Speaker #3: So, this cash will be received in the second half of 2026. Following my appointment as the interim CEO, we launched a cost-saving exercise pretty quickly.

Speaker #3: The impact of this exercise will save an annualized £2 million in costs. There’s an anticipated benefit of around £1 million in the second half of this year.

Speaker #3: So, that work commenced in June and was effectively completed by the end of June. So I've been in position now for 11 weeks. There's been a lot of change in the last 11 weeks.

Speaker #3: And we've been streamlining the SLT and streamlining the operations of the business to reduce costs, and I'll give you some more details on that shortly.

Speaker #3: As a result of the changes we made, we've booked a first half one-off restructuring cost of half a million pounds. But effectively, we're already seeing the cash and the profit benefit coming through as a result of the changes which we've made.

John Gahan: As a result of the changes we made, we booked a H1 one-off restructuring cost of half a million GBP. Effectively, we're already seeing the cash and the profit benefit coming through as a result of the changes which we've made. One of the other major changes which I've implemented is I've reorganized the sales and marketing team by sector, because previously, the sales team was set up by postcode, which wasn't optimized. I've also put it under new leadership and with one person managing both sales and marketing, where previously we had different people managing both of those functions. They're now much, much more coordinated, which is great. The pipeline is around GBP 66 million.

Jon Gahan: As a result of the changes we made, we booked a H1 one-off restructuring cost of half a million GBP. Effectively, we're already seeing the cash and the profit benefit coming through as a result of the changes which we've made. One of the other major changes which I've implemented is I've reorganized the sales and marketing team by sector, because previously, the sales team was set up by postcode, which wasn't optimized. I've also put it under new leadership and with one person managing both sales and marketing, where previously we had different people managing both of those functions. They're now much, much more coordinated, which is great. The pipeline is around GBP 66 million.

Speaker #3: One of the other major changes, which I've implemented, is I've reorganized the sales and marketing team by sector, because previously the sales team was set up by postcode, which wasn't optimized.

Speaker #3: And I've also put it under new leadership, with one person managing both sales and marketing, whereas previously we had different people managing each of those functions.

Speaker #3: And so they're now much, much more coordinated, which is great. The pipeline is around £66 million. These are investment-grade opportunities where we have outbound and inbound communications with the customer, and we're working to try and close those opportunities into revenue in the balance of this year and into next year.

John Gahan: These are investment-grade opportunities where we have outbound and inbound comms with the customer, and we're working to try and close those opportunities into revenue in the balance of this year and into next year. The contracted revenue for the H2 of this year is GBP 5.5 million. That breaks down as follows. GBP 3 million of signed contracts at the end of June, and in July, we signed GBP 2.5 million worth of business. We signed another GBP 100,000 this week, which is great. Effectively, for the balance of the H2, GBP 5.5 million of revenue is already secured, and we anticipate that that revenue will be delivered in the H2 this year.

Jon Gahan: These are investment-grade opportunities where we have outbound and inbound comms with the customer, and we're working to try and close those opportunities into revenue in the balance of this year and into next year. The contracted revenue for the H2 of this year is GBP 5.5 million. That breaks down as follows. GBP 3 million of signed contracts at the end of June, and in July, we signed GBP 2.5 million worth of business. We signed another GBP 100,000 this week, which is great. Effectively, for the balance of the H2, GBP 5.5 million of revenue is already secured, and we anticipate that that revenue will be delivered in the H2 this year.

Speaker #3: The contracted revenue for the second half of this year is £5.5 million. So that breaks down as follows: £3 million of signed contracts at the end of June, and in July, we signed £2.5 million worth of business.

Speaker #3: We signed another £100,000 this week, which is great. But effectively, for the balance of the second half, £5.5 million of revenue is already secured, and we anticipate that that revenue will be delivered in the second half this year.

Speaker #3: As we sit here today, we continue to trade in line with FY26 market guidance, which we revised on the 22nd of June this year. That guidance indicates revenue of around £32 million and adjusted EBITDA of £1.7 million.

John Gahan: As we sit here today, we continue to trade in line with FY26 market guidance, which we revised on 22 June of this year, which indicates revenue of around GBP 32 million and adjusted EBITDA of GBP 1.7 million. Just to talk about the cost-saving exercise. Effectively, we had a management team of around 10 people, often attending meetings regularly on a sort of weekly, monthly basis, but I've reduced the team to a team of five. The management team was effectively set up really for probably a business around twice the size that we actually are. We used to have an enormous number of people sat in meetings. Even the cleaner was in the C-suite is sort of one of the jokes we talked about internally. Effectively, we've reduced the management team down to five now.

Jon Gahan: As we sit here today, we continue to trade in line with FY26 market guidance, which we revised on 22 June of this year, which indicates revenue of around GBP 32 million and adjusted EBITDA of GBP 1.7 million. Just to talk about the cost-saving exercise. Effectively, we had a management team of around 10 people, often attending meetings regularly on a sort of weekly, monthly basis, but I've reduced the team to a team of five. The management team was effectively set up really for probably a business around twice the size that we actually are. We used to have an enormous number of people sat in meetings. Even the cleaner was in the C-suite is sort of one of the jokes we talked about internally. Effectively, we've reduced the management team down to five now.

Speaker #3: So just to talk about the cost-saving exercise: effectively, we had a management team of around 10 people, often attending meetings regularly on a sort of weekly, monthly basis, but I've reduced the team to a team of five. So, the management team was effectively set up really for probably a business around twice the size that we actually are.

Speaker #3: So, we used to have an enormous number of people sat in meetings—even the cleaner was in the C-suite, is sort of one of the jokes we talked about internally. But effectively, we've reduced the management team down to five now.

Speaker #3: So we've created one operational team across all technologies under one Chief Operating Officer. So Chris Polton now runs Lighting and Solar, which has brought control over the CV and Battery business back into head office, as we had with the LED business.

John Gahan: We've created one operational team across all technologies under one Chief Operating Officer. Chris Poulton now runs lighting and solar, which has brought control over the EV and battery business back into head office as we had with the LED business. Chris is getting his arms around all the paperwork involved with the Mace projects. The solar PV project managers now implement decisions made centrally. Historically, they were working more remotely and making decisions. Actually, we've brought the authority and the decision-making back into head office, which has given us much more control around no PO, no go, which is an instruction we've given out last year around suppliers not actually doing any work until they've got a signed purchase order from us. Improving discipline, strengthening controls, and it's making a big difference already.

Jon Gahan: We've created one operational team across all technologies under one Chief Operating Officer. Chris Poulton now runs lighting and solar, which has brought control over the EV and battery business back into head office as we had with the LED business. Chris is getting his arms around all the paperwork involved with the Mace projects. The solar PV project managers now implement decisions made centrally. Historically, they were working more remotely and making decisions. Actually, we've brought the authority and the decision-making back into head office, which has given us much more control around no PO, no go, which is an instruction we've given out last year around suppliers not actually doing any work until they've got a signed purchase order from us. Improving discipline, strengthening controls, and it's making a big difference already.

Speaker #3: So Chris is getting his arms around all the paperwork involved with the MACE project. The solar PV project manager is now implementing decisions made centrally.

Speaker #3: Historically, more people were working remotely and making decisions, but actually, we've brought the authority and the decision-making back into the head office. This has given us much more control around 'no PO, no go,' which is an instruction we issued last year. It means we don’t advance suppliers or actually do any work until they've got a signed purchase order from us.

Speaker #3: So improving disciplines, strengthening controls, and it's making a big difference already. And also, we've now got one project manager effectively responsible to the customer for each job. The project manager would turn up, traveling across the UK to arrive at the customer.

John Gahan: We've now got one project manager effectively responsible to the customer for project manager would turn up traveling across the UK to arrive at the customer. On Wednesday, the LED project manager would turn up traveling across the UK to meet the customer. On Friday, when we're talking about batteries or EV installation, another person would turn up. Effectively, we've made the delivery of our services much more customer-centric. There's one person responsible to the customer for delivery of all of our activity, which massively reduces our cost and simplifies our delivery of the project. It's all going through one person, not three. The customer views it much more favorably because they've only got to communicate with one person, not several.

Jon Gahan: We've now got one project manager effectively responsible to the customer for project manager would turn up traveling across the UK to arrive at the customer. On Wednesday, the LED project manager would turn up traveling across the UK to meet the customer. On Friday, when we're talking about batteries or EV installation, another person would turn up. Effectively, we've made the delivery of our services much more customer-centric. There's one person responsible to the customer for delivery of all of our activity, which massively reduces our cost and simplifies our delivery of the project. It's all going through one person, not three. The customer views it much more favorably because they've only got to communicate with one person, not several.

Speaker #3: Then on Wednesday, the LED project manager would turn up, traveling across the UK to meet the customer. And then on Friday, when we're talking about batteries or EV installation, another person would turn up.

Speaker #3: So, effectively, we've made the delivery of our services much more customer-centric. There's now one person responsible to the customer for the delivery of all our activity, which massively reduces our costs and simplifies our delivery of projects.

Speaker #3: It's all going through one person, not three. And also, the customer views it much more favorably because they've only got to communicate with one person, not several.

Speaker #3: There was quite a bit of sales and marketing activity which was outsourced, and I brought it back in-house. So, this has helped reduce the cost and get us closer to the key actions and activities that we're doing to try and drive revenue.

John Gahan: There was quite a bit of sales and marketing activity, which was outsourced, and I've brought it back in-house. This has helped reduce the cost and get us closer to the key actions and activities that we're doing to try and drive revenue. We've also moved offices in London. Literally, we've moved across the road to a slightly smaller and cheaper office, which is great. We've just taken a much, much tougher stance across all areas of expenditure across the business, where we were spending too much money in a number of areas. We've just cut that right back. The board has reduced from six to three directors now. That's also a cost saving for shareholders. Overall, GBP 2 million annualized cost saving with an expected benefit of around GBP 1 million in the H2 of this year.

Jon Gahan: There was quite a bit of sales and marketing activity, which was outsourced, and I've brought it back in-house. This has helped reduce the cost and get us closer to the key actions and activities that we're doing to try and drive revenue. We've also moved offices in London. Literally, we've moved across the road to a slightly smaller and cheaper office, which is great. We've just taken a much, much tougher stance across all areas of expenditure across the business, where we were spending too much money in a number of areas. We've just cut that right back. The board has reduced from six to three directors now. That's also a cost saving for shareholders. Overall, GBP 2 million annualized cost saving with an expected benefit of around GBP 1 million in the H2 of this year.

Speaker #3: We've also moved offices in London. So literally, we've moved across the road to a slightly smaller and cheaper office, which is great. And we've just taken a much, much tougher stance across all areas of expenditure across the business, where we were spending too much money in a number of areas, and we've just cut that right back.

Speaker #3: So the Board has reduced from six to three directors now, so that's also a cost saving for shareholders. So overall, yes, a £2 million annualised cost saving, with an expected benefit of around £1 million in the second half of this year.

Speaker #3: And that work is now done. So I'm now moved away from moving on and away from the cost-saving exercise to now making the changes stick as part of the senior leadership team, and to now focus my efforts on new sales.

John Gahan: That work is now done. I've now moved away from moving on and away from the cost-saving exercise to now making the changes stick as part of the senior leadership team and to now focus my efforts on new sales. As I mentioned before, we've reorganized the sales and marketing team by sector. Effectively, we serve three sectors. Education as being our principal market, and of course, NHS, and then what we call C&I, which is the commercial industrial space. Historically, the sales team was organized by postcode. When people woke up in the postcode, they were responsible for all of those customers in the postcode. Restructuring and reorganizing the sales team by sector makes so much more sense to me. Sales team reacted really positively because they see themselves as education, healthcare, or C&I. That makes sense.

Jon Gahan: That work is now done. I've now moved away from moving on and away from the cost-saving exercise to now making the changes stick as part of the senior leadership team and to now focus my efforts on new sales. As I mentioned before, we've reorganized the sales and marketing team by sector. Effectively, we serve three sectors. Education as being our principal market, and of course, NHS, and then what we call C&I, which is the commercial industrial space. Historically, the sales team was organized by postcode. When people woke up in the postcode, they were responsible for all of those customers in the postcode. Restructuring and reorganizing the sales team by sector makes so much more sense to me. Sales team reacted really positively because they see themselves as education, healthcare, or C&I. That makes sense.

Speaker #3: So, as I mentioned before, we've reorganized the sales and marketing team by sector. So, effectively, we serve three sectors: education as being our principal market, and, of course, NHS.

Speaker #3: And then what we call CNI, which is the commercial and industrial space. So, historically, the sales team was organized by postcode, and when people woke up in the postcode, they were responsible for all of those customers in that postcode.

Speaker #3: Restructuring and reorganizing the sales team by sector makes so much more sense to me. And the sales team reacted really positively, because they see themselves as education, healthcare, or CNI.

Speaker #3: So that makes sense. We've introduced a new sales process, which looks at the probability and the likely timing of converting pipeline opportunities into revenue.

John Gahan: We've introduced a new sales process which looks at the probability and the likely timing of converting pipeline opportunities into revenue. This has been the Achilles heel of this business historically. I'm pleased to say that in July, for the first time in a long time, the sales team delivered the revenue forecast for July, which is really pleasing. One of the changes we've implemented is we're reclassifying a lot of the opportunities into three buckets: commit where effectively we're really 95% confident the customer will sign the contract. Upside, where there's a good opportunity, good chance that they will, but we're working to try and drive upside into commits. Of course, pipeline, which is we've sent the customer an investment-grade proposal typically, and we're then working through that and answering customer questions and trying to progress it into upside and commit.

Jon Gahan: We've introduced a new sales process which looks at the probability and the likely timing of converting pipeline opportunities into revenue. This has been the Achilles heel of this business historically. I'm pleased to say that in July, for the first time in a long time, the sales team delivered the revenue forecast for July, which is really pleasing. One of the changes we've implemented is we're reclassifying a lot of the opportunities into three buckets: commit where effectively we're really 95% confident the customer will sign the contract. Upside, where there's a good opportunity, good chance that they will, but we're working to try and drive upside into commits. Of course, pipeline, which is we've sent the customer an investment-grade proposal typically, and we're then working through that and answering customer questions and trying to progress it into upside and commit.

Speaker #3: This has been the Achilles' heel of this business historically. I'm pleased to say that in July, for the first time in a long time, the sales team actually delivered the revenue forecast for July, which is really pleasing.

Speaker #3: And so, one of the changes we've implemented is we're reclassifying a lot of the opportunities into three buckets: commit, where we're effectively really sort of 95% confident the customer will sign the contract; upside, where, yep, there's a good opportunity, a good chance that they will, but we're working to try and drive upside into commit; and then, of course, pipeline, which is we've sent the customer an investment-grade proposal, typically, and we're then working through that and answering customer questions and trying to progress it into upside and commit.

Speaker #3: So there are now clear and unambiguous criteria to forecast revenue in each category. I look at it every single week now, as the interim CEO.

John Gahan: There is now clear and unambiguous criteria to forecast revenue in each category. I look at it every single week now as the interim CEO. I see all the detail, the sales team is now doing a great job using the information in Salesforce to slice and dice the data in such a way which makes it understandable. I'm going to hit the same data in the same way each week. What is not measured is not managed, I'm really pleased with how we've progressed really quickly, the changes in the sales team to try and increase the accountability of the business to achieve the commit sales. We've got some mechanisms now to track opportunities through to pipeline, into upside, into commit. Marketing is now much more focused on lead generation than the brand.

Jon Gahan: There is now clear and unambiguous criteria to forecast revenue in each category. I look at it every single week now as the interim CEO. I see all the detail, the sales team is now doing a great job using the information in Salesforce to slice and dice the data in such a way which makes it understandable. I'm going to hit the same data in the same way each week. What is not measured is not managed, I'm really pleased with how we've progressed really quickly, the changes in the sales team to try and increase the accountability of the business to achieve the commit sales. We've got some mechanisms now to track opportunities through to pipeline, into upside, into commit. Marketing is now much more focused on lead generation than the brand.

Speaker #3: I see all the detail, and the sales team is now doing a great job using the information in Salesforce to slice and dice the data in such a way that makes it understandable.

Speaker #3: I'm looking at the same data in the same way each week. What is not measured is not managed. And I'm really pleased with how we've progressed really quickly, the changes in the sales team to try and increase the accountability of the business to achieve the committed sales.

Speaker #3: So we've got some mechanisms now to track opportunities through to pipeline, into upside, into commit. So marketing is now much more focused on lead generation than the brand.

Speaker #3: I think historically, we did a good job trying to develop the energy brand. But, effectively, what I'm really interested in is lead generation, and that's where my focus has been. Probably around 60% of my time now is spent on lead generation and new sales.

John Gahan: I think historically, we did a good job trying to develop the eEnergy brand. Effectively, what I'm really interested in is lead generation, and that's where my focus has been. Probably around 60% of my time now is spent on lead generation and new sales. We're also introducing AI in a number of areas. We've got AI, which we are taking the data out of Salesforce using AI, which is Clay, effectively to validate and improve and scrub the data to make it better, make it more accurate, which will allow us to improve the targeting of our customers as we pursue sales leads, which is really good.

Jon Gahan: I think historically, we did a good job trying to develop the eEnergy brand. Effectively, what I'm really interested in is lead generation, and that's where my focus has been. Probably around 60% of my time now is spent on lead generation and new sales. We're also introducing AI in a number of areas. We've got AI, which we are taking the data out of Salesforce using AI, which is Clay, effectively to validate and improve and scrub the data to make it better, make it more accurate, which will allow us to improve the targeting of our customers as we pursue sales leads, which is really good.

Speaker #3: We're also introducing AI in a number of areas. We've got AI, and we are taking the data out of Salesforce using AI, which is Clay.

Speaker #3: Effectively, to validate, improve, and scrub the data to make it better—make it more accurate—which will allow us to improve the targeting of our customers as we pursue sales leads, which is really good.

Speaker #3: We're also using an AI tool around solar desktop work to try and quantify what the savings for customers will be, which is a really quick way of getting to an accurate starting point to engage with customers.

John Gahan: We're also using an AI tool around solar desktop work to try and quantify what the savings for customers will be, which is a really quick way of getting to an accurate starting point to engage with customers, and we can do it live. It literally takes less than 60 seconds to enable us to be able to assess and measure very quickly and provide details to customers for their solar desktop work. I've also introduced a stronger focus on customer and vendor interaction. One of the things which is really important is that, I've insisted to the staff, if customers are calling or a vendor's calling us, individuals in the business take those phone calls even if they're in an internal meeting. It's our customers that pay our bills, and we have to work closely with our vendors. I'm prioritizing interactions with those two groups.

Jon Gahan: We're also using an AI tool around solar desktop work to try and quantify what the savings for customers will be, which is a really quick way of getting to an accurate starting point to engage with customers, and we can do it live. It literally takes less than 60 seconds to enable us to be able to assess and measure very quickly and provide details to customers for their solar desktop work. I've also introduced a stronger focus on customer and vendor interaction. One of the things which is really important is that, I've insisted to the staff, if customers are calling or a vendor's calling us, individuals in the business take those phone calls even if they're in an internal meeting. It's our customers that pay our bills, and we have to work closely with our vendors. I'm prioritizing interactions with those two groups.

Speaker #3: And we can do it live. It literally takes less than 60 seconds to enable us to assess and measure very quickly, and provide details to customers for their solar desktop work.

Speaker #3: I've also introduced a stronger focus on customer and vendor interaction. So one of the things which is really important is that I've insisted that customers if I've assisted to the staff, if customers are calling or a vendor is calling us, they take those phone the individuals in the business take those phone calls, even if they're in an internal meeting, as our customers that pay our bills and we have to work closely with our vendors.

Speaker #3: So I'm sort of prioritizing interactions with those two groups. Even if those people are in a meeting with me—which causes some amusement sometimes—people, please step out, take the customer call, take the vendor call, and we'll make sure that we are as responsive as we possibly can be to our customers and our vendors.

John Gahan: Even if those people are in a meeting with me, which causes some amusement sometimes, people please step out, take the customer call, take the vendor call, we'll make sure that we are as responsive as we possibly can be to our customers and our vendors. I'll now hand over to Akash, who'll just quickly run through a summary of the H1 2026 financials.

Jon Gahan: Even if those people are in a meeting with me, which causes some amusement sometimes, people please step out, take the customer call, take the vendor call, we'll make sure that we are as responsive as we possibly can be to our customers and our vendors. I'll now hand over to Akash, who'll just quickly run through a summary of the H1 2026 financials.

Speaker #3: I'll now hand over to Akash. He'll just quickly run through a summary of the H1 2026 financials.

Speaker #2: H1 2026 saw us achieve our record revenue of £21.8 million, in comparison to H1 2025 of £10.1 million. For the whole of 2025, we achieved on average £1.6 million of revenue per month to get to the £19 million full-year number, whereas for the first six months of this year, it was just over £3.6 million, which contextualises the improvement.

Akash Harnal: H1 2026 saw us achieve a record revenue of GBP 21.8 million in comparison to the H1 2025 of GBP 10.1 million. For the whole of 2025, we achieved on average GBP 1.6 million of revenue per month, to get to the GBP 19 million full year number. Whereas the first six months of this year, it was just over GBP 3.6 million, which contextualizes the improvement. 70%, roughly, of our revenue related to the Mace contract, which again underpins its strategic importance to the performance of this year. Adjusted EBITDA was GBP 1.2 million, which again, was an improvement on the GBP 0.5 million compared to the prior year, although we would've liked that number to be higher. The gross margin was 17%, compared to the restated H1 2025 margin of 30.6%, the Mace project was a reason behind this.

Speaker #2: Roughly 70% of our revenue is related to the MACE contract, which again underpins its strategic importance to this year’s performance. Adjusted EBITDA was £1.2 million, which again was an improvement on the £0.5 million in the prior year, although we would have liked that number to be higher.

Speaker #2: The gross margin was 17%, compared to the restated H1 25 margin of 30.6%. The MACE project was a reason behind this; we had to go in at a very competitive margin in order to win the work, which was one of the factors.

Akash Harnal: We had to go in at a very competitive margin in order to win the work, which was one of the factors. Another factor was that there was a 6-month delay between when we were awarded the contract to start on site, and in that time, there was a surge in the panel prices, which was circa GBP 0.5 million. Usually, we have provisions in our contracts to deal with this, because of the tender, the contractual terms were pretty rigid, therefore GBP million non-cash charge for a contract asset in H1 2026. This related to costs that we had incurred in Q4 2025 in order to mobilize the Mace project. The amalgamated impact of these two things was that gross margin reduced by circa 5%. If you were to allow us to add these back, the gross margin actually stood at 22%.

Speaker #2: But another factor was that there was a six-month delay between when we were awarded the contract and when we could start on site. And in that time, there was a surge in the panel prices.

Speaker #2: Which was circa $0.5 billion. Usually, we have provisions in our contracts to deal with this, but because of the tender, the contractual terms were pretty rigid, therefore.

Speaker #2: Million non-cash charge for a contract asset in H1 26. This related to costs that we had incurred in Q4 of '25 in order to mobilize the MACE project.

Speaker #2: The amalgamated impact of these two things was that gross margin reduced by circa 5%. So, if you were to allow us to add these back, the gross margin actually stood at 22%.

Speaker #2: Further to this, as a result of our accounting policy change, we can now attribute staff time directly towards departments. This means that we recharge into cost of sales, and the cost in H1 was £1.2 million.

Akash Harnal: Further to this, as a result of our accounting policy change, we can now attribute staff time directly towards departments, this means that we recharge into cost of sales. The cost in H1 was GBP 1.2 million, again, in relation to the higher levels of activity associated with the Mace award. This also reduced the statutory margin by a further 5%. The PLC costs held at the same level as last year, which was the GBP 0.9 million, the total overheads reduced by GBP 0.1 million. They were roughly in line with the prior year, but the cost benefits we should see will really materialize in H2. The closing cash position in H1 2026 was GBP 0.6 million, the main reason for this is that GBP 4.8 million of the Mace cash that we had expected to receive in H1, we will now be receiving in H2.

Speaker #2: Again, in relation to the higher levels of activity associated with the MACE award, this also reduced the statutory margin by a further 5%. The PLC costs were held at the same level as last year, which was £0.9 million.

Speaker #2: And the total overheads reduced by £0.1 million, so they were roughly in line with the prior year. But the cost benefits we should see will really materialize in H2.

Speaker #2: The closing cash position in H1 26 was £0.6 million, and the main reason for this is that £4.8 million of the MACE cash that we had expected to receive in H1 will now be received in H2.

Speaker #2: The reason for this is that the construction was very fast-paced, and the paperwork could not keep up with the pace of this. But we are working with the Department of Education in order to expedite the process of accessing this cash.

Akash Harnal: The reason for this is that the construction was very fast-paced and the paperwork could not keep up with the pacing of this. We are working with the Department for Education in order to expedite the process of us accessing this cash. With it, we'll pay down our trade creditor balance, as well as the remaining GBP 0.5 million in the Harwood loan. Of the Harwood loan, we did repay GBP 0.5 million of it already, we have extended the term so that the balancing figure will be repaid in November. The cost-saving exercise, which was undertaken in H1, which will be a GBP 2 million annualized benefit, we'll really see that impact in FY27 fully. However, in H2, we will see GBP 1 million of that benefit, we're already starting to see, from a cash perspective, the benefit of that starting to materialize.

Speaker #2: And with it, we'll pay down our trade creditor balance, as well as the remaining $0.5 billion in the Harvard loan. Of the Harvard loan, we did repay $0.5 billion of it already.

Speaker #2: And we have extended the term, so that the balancing figure will be repaid in November. The cost-saving exercise, which was undertaken in H1, will be a £2 million annualized benefit and will really see that impact in FY27 fully.

Speaker #2: However, in H2, we will see £1 million of that benefit. And we're already starting to see, from a cash perspective, the benefit of that starting to materialize.

Speaker #2: Moreover, in H1 26, there was a restructuring cost of circa £0.5 million in order to progress with that cost-saving exercise. Regarding the outlook for the rest of FY26...

Akash Harnal: Moreover, in H1 2026, there was a restructuring cost of circa GBP 0.5 million in order to progress with that cost-saving exercise. Regarding the outlook for the rest of FY26, there is a GBP 10.2 million revenue bridge, of which GBP 5.5 million has already been contracted. We expect to deliver these projects in H2, therefore that leaves a GBP 4.7 million gap remaining. We have been making positive inroads towards this, we are looking forward to hoping to realize this.

Speaker #2: So, there is a £10.2 million revenue bridge, of which £5.5 million has already been contracted. We expect to deliver these projects in H2.

Speaker #2: And therefore, that leaves a £4.7 million gap remaining. We have been making positive inroads towards this, and we are looking forward to, and hoping to, realize this.

Speaker #1: Thank you, Akash. So, the all-important summary outlook. We can see that legislation continues to drive revenue growth. Later on in this presentation, in the appendices, we've set out a summary of some of the key legislation that is driving activity in each of our core markets.

John Gahan: Thank you, Akash. The all-important summary outlook. We can see that legislation continues to drive revenue growth, later on in this presentation, in the appendices, we've set out a summary of some of the key legislation that is driving activity in each of our core markets. Later this year, we are seeking to secure a share of GB Energy's three-year partnership, which was delivered through Mace this year. We should remember that the reason why we went in with Mace at a very competitive margin to secure it, is it was the first of what we knew was likely to be some very sizable awards from the government into our sector, of which we were one of three delivery partners. We are positioning ourselves, hopefully, to win a chunk of that work going forwards.

Jon Gahan: Thank you, Akash. The all-important summary outlook. We can see that legislation continues to drive revenue growth, later on in this presentation, in the appendices, we've set out a summary of some of the key legislation that is driving activity in each of our core markets. Later this year, we are seeking to secure a share of GB Energy's three-year partnership, which was delivered through Mace this year. We should remember that the reason why we went in with Mace at a very competitive margin to secure it, is it was the first of what we knew was likely to be some very sizable awards from the government into our sector, of which we were one of three delivery partners. We are positioning ourselves, hopefully, to win a chunk of that work going forwards.

Speaker #1: Later this year, we are seeking to secure a share of GB Energy's three-year partnership, which was delivered through Mace this year. So we should remember that the reason why we went in with Mace at a very competitive margin to secure it is it was the first of what we knew was likely to be some very sizable awards from the government into our sector, of which we were one of three delivery partners.

Speaker #1: So we are positioning ourselves, hopefully, to win a chunk of that work going forward. The government's talking about 500 schools compared to the 250 schools, which the project involved in 2026, of which we secured 65 sites for solar.

John Gahan: The government's talking about 500 schools compared to the 250 schools which the project involved in 2026, of which we secured 65 sites for solar. We had around GBP 15 million worth of revenue this year. It wasn't just solar. We ended up with a very sizable LED, EV charger, and battery portion of installation as well, which is great. That's exciting, and we hope to hear later on this year as to what the government's plans are exactly, and who. We will obviously tender for that work, and we will see whether we win it or not. In the NHS, we've already got a couple of trusts taking our private finance EPC contract, which allows the NHS to use third-party, private sector finance to fund solar and LED installations in the NHS sector. This is a very significant development for us.

Jon Gahan: The government's talking about 500 schools compared to the 250 schools which the project involved in 2026, of which we secured 65 sites for solar. We had around GBP 15 million worth of revenue this year. It wasn't just solar. We ended up with a very sizable LED, EV charger, and battery portion of installation as well, which is great. That's exciting, and we hope to hear later on this year as to what the government's plans are exactly, and who. We will obviously tender for that work, and we will see whether we win it or not. In the NHS, we've already got a couple of trusts taking our private finance EPC contract, which allows the NHS to use third-party, private sector finance to fund solar and LED installations in the NHS sector. This is a very significant development for us.

Speaker #1: So we had around £15 million worth of revenue this year. And it wasn't just solar—we ended up with a very sizable LED, EV charger, and battery portion of installation as well, which is great.

Speaker #1: So that's exciting, and we hope to hear later on this year as to what the government's plans are exactly, and who. We will obviously tender for that work.

Speaker #1: And we will see whether we win it or not. In the NHS, we've already got a couple of trusts taking our sort of private finance EPC contract, which allows the NHS to use third-party private sector finance to fund solar and LED installations in the NHS sector.

Speaker #1: So this is a very significant development for us. Redaptive is our sort of key funding partner and very supportive here. But I think this could be a very, very sizable sector for us going forward.

John Gahan: Redaptive is our key funding partner, and are very supportive here. I think this could be a very, very sizable sector for us going forwards. It's an area where obviously, again, structuring the sales team into individual sectors has allowed us to provide greater focus on making sure we can secure our rightful share of NHS. Longer term, I think the NHS market could actually be bigger than education for us, because as we sit here today, the government has thus far not been using third-party finance. This is a very significant change in strategy for the government, and as we know, the NHS is quite strapped for cash. The third sector which we are targeting is C&I. Specifically, we're trying to target owner-occupied buildings.

Jon Gahan: Redaptive is our key funding partner, and are very supportive here. I think this could be a very, very sizable sector for us going forwards. It's an area where obviously, again, structuring the sales team into individual sectors has allowed us to provide greater focus on making sure we can secure our rightful share of NHS. Longer term, I think the NHS market could actually be bigger than education for us, because as we sit here today, the government has thus far not been using third-party finance. This is a very significant change in strategy for the government, and as we know, the NHS is quite strapped for cash. The third sector which we are targeting is C&I. Specifically, we're trying to target owner-occupied buildings.

Speaker #1: This is—it's an area where, obviously, again, structuring the sales team into individual sectors has allowed us to provide greater focus on making sure we can secure our rightful share of NHS.

Speaker #1: Longer term, I think the NHS market could actually be bigger than education for us, because as we sit here today, the government has thus far not been using third-party finance.

Speaker #1: So, this is a very significant change in strategy for the government. And, as we know, the NHS is quite strapped for cash. The third sector, which we are targeting, is CNI.

Speaker #1: And specifically, we're trying to target owner-occupied buildings, and the reason why we're doing that is we then don't have to deal with the complexities around managing the tenant and the landlord.

John Gahan: The reason why we're doing that is we then don't have to deal with the complexities around managing the tenant and the landlord. It makes life much easier. Also, there is legislation in 2029 and 2030, which the government have already published, which requires buildings to improve their EPC ratings, which they can do through the implementation of LED and solar. That will make a massive difference. As I mentioned earlier, we're also using AI to identify the key customer leads, and that's proving quite fruitful, which is great. Sales and marketing has now been reorganized by market sector, as we've discussed. We can see already we've got several multimillion-pound sales opportunities for solar PV. The issue is, of course, they're binary. You either get them or you don't. We're chasing those opportunities down, and hopefully, a number of them will close this year.

Jon Gahan: The reason why we're doing that is we then don't have to deal with the complexities around managing the tenant and the landlord. It makes life much easier. Also, there is legislation in 2029 and 2030, which the government have already published, which requires buildings to improve their EPC ratings, which they can do through the implementation of LED and solar. That will make a massive difference. As I mentioned earlier, we're also using AI to identify the key customer leads, and that's proving quite fruitful, which is great. Sales and marketing has now been reorganized by market sector, as we've discussed. We can see already we've got several multimillion-pound sales opportunities for solar PV. The issue is, of course, they're binary. You either get them or you don't. We're chasing those opportunities down, and hopefully, a number of them will close this year.

Speaker #1: It makes life much easier. And also, there is legislation in 2029 and 2030—which the government have already published—which requires buildings to improve their EPC ratings. They can do this through the implementation of LED and solar.

Speaker #1: So that will make a massive difference. As I mentioned earlier, we're also using AI to drive a number of the—to identify the key customer leads.

Speaker #1: And that's proving quite fruitful, which is great. So, sales and marketing has now been reorganized by market sectors. As we've discussed, we can see already we've got several multi-million-pound sales opportunities for solar PV.

Speaker #1: The issue is, of course, they're binary—you either get them or you don't. We're chasing those opportunities down, and hopefully a number of them will close this year.

Speaker #1: Most likely, we'll see that we may not see so much revenue, particularly in the last couple of months of this year, because it takes a minimum of two or three months between contract signature and actually working on site to be able to develop the revenue from that project.

John Gahan: Most likely, we may not see so much revenue, particularly in the last couple of months of this year, because it takes a minimum of two or three months between contract signature and working on-site to be able to develop the revenue from that project. We'll be updating the market later this year, on how we're progressing, and we'll give a trading update later this year. Towards the end of H1, eEnergy was appointed to Everything Estates framework for schools, trusts, and the wider public sector. I think being on frameworks is really important to secure public sector work. We're also on six other major frameworks. There's quite a complex, convoluted value for money, et cetera.

Jon Gahan: Most likely, we may not see so much revenue, particularly in the last couple of months of this year, because it takes a minimum of two or three months between contract signature and working on-site to be able to develop the revenue from that project. We'll be updating the market later this year, on how we're progressing, and we'll give a trading update later this year. Towards the end of H1, eEnergy was appointed to Everything Estates framework for schools, trusts, and the wider public sector. I think being on frameworks is really important to secure public sector work. We're also on six other major frameworks. There's quite a complex, convoluted value for money, et cetera.

Speaker #1: But we'll be updating the market later this year on how we're progressing, and we'll give a trading update later this year. Towards the end of the first half, eEnergy was appointed to the Everything Estates Framework for schools, trusts, and sort of the wider public sector.

Speaker #1: I think being on frameworks is really important to secure public sector work. We're also on six other major frameworks. There's quite a complex, convoluted value-for-money process, etc.

Speaker #1: But we're working with all the six major frameworks on a regular basis. And obviously, we've had work previously extensively approved for approved to progress to contract, which is which means that we've got good relationships with them.

John Gahan: We're working with all the six major frameworks on a regular basis. Obviously, we've had work previously extensively approved to progress the contract, which means that we've got good relationships with them, and we'll continue to work with them to get business across the line, so we can then deliver it as quickly as we can. Normally, typically, framework approval probably adds another up to two or three weeks into the timetable before we're able to start work. We're working through the GBP 66 million investment-grade pipeline. We can slice and dice it. It's roughly 50/50 between LED and solar. We're working that through with the sales team to try and progress those from pipeline to upside into commit. In summary, eEnergy is definitely going in the right direction. We've got a streamlined team of five now.

Jon Gahan: We're working with all the six major frameworks on a regular basis. Obviously, we've had work previously extensively approved to progress the contract, which means that we've got good relationships with them, and we'll continue to work with them to get business across the line, so we can then deliver it as quickly as we can. Normally, typically, framework approval probably adds another up to two or three weeks into the timetable before we're able to start work. We're working through the GBP 66 million investment-grade pipeline. We can slice and dice it. It's roughly 50/50 between LED and solar. We're working that through with the sales team to try and progress those from pipeline to upside into commit. In summary, eEnergy is definitely going in the right direction. We've got a streamlined team of five now.

Speaker #1: And we'll continue to work with them to get business across the line, so we can then deliver it as quickly as we can.

Speaker #1: But normally, typically, a framework approval probably adds another, up to sort of two or three weeks, into the timetable before we're able to start work.

Speaker #1: And we're working through the £66 million investment-grade pipeline. We can then slice and dice it. It's sort of roughly 50/50 between LED and solar.

Speaker #1: And we're working that through with the sales team to try and progress those from pipeline to upside intercommit. So, in summary, eEnergy is definitely going in the right direction.

Speaker #1: We've got a streamlined team of five now. I'm really pleased with how the team is working. Obviously, it's been through a period the business has been through a period of significant change.

John Gahan: I'm really pleased with how the team's working. Obviously, the business has been through a period of significant change. The team's pulled together. I'm really pleased with how the staff have responded as well. It really feels like we're all pulling together and going in the right direction. We strengthened the controls now with one business unit managed by Chris, supported by Akash running finance. Again, the disciplines that we've had and the efficient way in which we have run and we are running the LED business, we're now applying those disciplines to solar, which I think does need some support, as we've seen some evidence by the fact that some of the paperwork around the Mace installations has not kept up to date with all the operational work.

Jon Gahan: I'm really pleased with how the team's working. Obviously, the business has been through a period of significant change. The team's pulled together. I'm really pleased with how the staff have responded as well. It really feels like we're all pulling together and going in the right direction. We strengthened the controls now with one business unit managed by Chris, supported by Akash running finance. Again, the disciplines that we've had and the efficient way in which we have run and we are running the LED business, we're now applying those disciplines to solar, which I think does need some support, as we've seen some evidence by the fact that some of the paperwork around the Mace installations has not kept up to date with all the operational work.

Speaker #1: But the team's pulled together. I'm really pleased with how the staff have responded as well. It really feels like we're all pulling together and going in the right direction.

Speaker #1: We strengthened the controls, now with one business unit managed by Chris and supported by Akash running finance. So again, the disciplines that we've had, and the efficient way in which we have run and we are running the LED business, we're now applying those disciplines to solar, which I think does need some support, as we've seen some evidence by the fact that some of the paperwork around the MACE installations has not kept up to date with all the operational work.

Speaker #1: We've kind of re-energized the sales and marketing team now under Mark Dolling's leadership as Chief Sales Officer. So, all activity is now focused by sector.

John Gahan: We've kind of re-energized the sales and marketing team now under Mark Dolling's leadership as Chief Sales Officer. All activity is now focused by sector. It's giving us much greater focus, much greater insight into the sector. We're also now allocating marketing budget by sector spend, which is great, to try and drive activity there. I'm currently spending around 60%, maybe slightly more of my time driving revenue and trying to link the marketing activities to drive revenue, because historically that's always been an area where that relationship has been quite loose, and I want to see it, a direct link between the marketing spend and the lead generation and the conversion of those leads into revenue. The GBP 2 million annualized cost-saving exercise is completed. We'll just keep a very close eye on costs for the balance of this year. Effectively, there's no more work to do there.

Jon Gahan: We've kind of re-energized the sales and marketing team now under Mark Dolling's leadership as Chief Sales Officer. All activity is now focused by sector. It's giving us much greater focus, much greater insight into the sector. We're also now allocating marketing budget by sector spend, which is great, to try and drive activity there. I'm currently spending around 60%, maybe slightly more of my time driving revenue and trying to link the marketing activities to drive revenue, because historically that's always been an area where that relationship has been quite loose, and I want to see it, a direct link between the marketing spend and the lead generation and the conversion of those leads into revenue. The GBP 2 million annualized cost-saving exercise is completed. We'll just keep a very close eye on costs for the balance of this year. Effectively, there's no more work to do there.

Speaker #1: It's giving us much greater focus, much greater insight into the sector. And we're also now allocating marketing budget by sector spend, which is great.

Speaker #1: To try and drive activity there. I'm currently spending around 60 percent, maybe slightly more, of my time driving revenue and trying to link the marketing activities to drive revenue.

Speaker #1: Because, historically, that's always been an area where that relationship has been quite loose. And I want to see a direct link between the marketing spend and the lead generation, and the conversion of those leads into revenue.

Speaker #1: The £2 million annualized cost-saving exercise is completed. We'll just keep a very, very close eye on costs for the balance of this year.

Speaker #1: But effectively, there's no more work to do there. And we're already seeing the benefits coming through in cash flow and P&L now, which is great.

John Gahan: We're already seeing the benefits coming through in cash flow and P&L now, which is great. Improving cash flow and gross margin are obviously key for us. The H2 is really important. The margins will definitely improve in the H2 because we're through all the Mace work now. There is no more Mace revenue to be recognized in the H2 of this year. Where we are today, we continue to trade in line with the FY2026 guidance, which we revised on 22 June of this year, with revenue around GBP 32 million and adjusted EBITDA of GBP 1.7 million. In summary, I think we're in a good position to take advantage of opportunities to drive a sustainable growth in shareholder value. That concludes the presentation today.

Jon Gahan: We're already seeing the benefits coming through in cash flow and P&L now, which is great. Improving cash flow and gross margin are obviously key for us. The H2 is really important. The margins will definitely improve in the H2 because we're through all the Mace work now. There is no more Mace revenue to be recognized in the H2 of this year. Where we are today, we continue to trade in line with the FY2026 guidance, which we revised on 22 June of this year, with revenue around GBP 32 million and adjusted EBITDA of GBP 1.7 million. In summary, I think we're in a good position to take advantage of opportunities to drive a sustainable growth in shareholder value. That concludes the presentation today.

Speaker #1: Improving cash flow and gross margin are obviously key for us. The second half is really important. The margins will definitely improve in the second half because we're through all the MACE work now.

Speaker #1: There is no more MACE revenue to be recognized in the second half of this year. Where we are today, we continue to trade in line with the FY26 guidance, which we revised on the 22nd of June this year, with revenue around £32 million and adjusted EBITDA at £1.7 million.

Speaker #1: And in summary, I think we're in a good position to take advantage of the opportunities to drive sustainable growth in shareholder value. So, that concludes the presentation today.

Speaker #1: I'll just hand back to Lily for a second, and then we'll take any questions that have been submitted, which should come up on my screen shortly.

John Gahan: I'll just hand back to Lily for a second, and then we'll take any questions which have been submitted, which should come up on my screen shortly. Thank you.

Jon Gahan: I'll just hand back to Lily for a second, and then we'll take any questions which have been submitted, which should come up on my screen shortly. Thank you.

Speaker #1: Thank you.

Speaker #2: That's great. Thank you very much for your presentation, ladies and gentlemen. Please do continue to submit your questions by using the Q&A tab situated in the right-hand corner of your screen.

Moderator: That's great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via Investor Meet Company. John, if I could just hand back to you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Operator: That's great. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via Investor Meet Company. John, if I could just hand back to you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Speaker #2: While the company takes a few moments to review the questions submitted today, I'd like to remind you that a recording of this presentation, along with copies of the slides and the published Q&A, can be accessed via the investor dashboard.

Speaker #2: John, if I could just hand back to you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Speaker #1: So, in no particular order, just looking at the first question here: is John Garland expected to move into a permanent CEO role? Well, I've been doing the CEO role and the CFO role.

John Gahan: In no particular order, just looking at the first question here. Is John Gahan expected to move into a permanent CEO role? Well, I've been doing the CEO role and the CFO role. It's been a really busy time. I'm really enjoying the job. Obviously, the board are considering its options, and I'm sure they'll make an announcement at the appropriate time when they've decided how they want to progress. Right here, right now, I've got a job to do. I'm getting on with the job. I've got a fabulous team of people to help me manage the business. It's been, yes, it's been a turbulent period, but it does feel like we've really turned the corner now. The group of people we've got managing the business and a loyal workforce, it feels like we're really making progress. There's another question here. Okay.

Jon Gahan: In no particular order, just looking at the first question here. Is John Gahan expected to move into a permanent CEO role? Well, I've been doing the CEO role and the CFO role. It's been a really busy time. I'm really enjoying the job. Obviously, the board are considering its options, and I'm sure they'll make an announcement at the appropriate time when they've decided how they want to progress. Right here, right now, I've got a job to do. I'm getting on with the job. I've got a fabulous team of people to help me manage the business. It's been, yes, it's been a turbulent period, but it does feel like we've really turned the corner now. The group of people we've got managing the business and a loyal workforce, it feels like we're really making progress. There's another question here. Okay.

Speaker #1: It's been a really busy time. I'm really enjoying the job. Obviously, the Board are considering its options, and I'm sure they'll make an announcement at the appropriate time, once they've decided how they want to progress.

Speaker #1: But right here, right now, I've got a job to do. I'm getting on with the job. I've got a fabulous team of people to help me manage the business.

Speaker #1: And it's a pretty it's been yes, it's been a turbulent period, but it does feel like we've really turned the corner now. And the group of people we've got managing the business and a loyal workforce it feels like we're really making progress.

Speaker #1: There's another question here. Explain why you're only able to deliver £1.7 million EBITDA on £32 million for '26, when you delivered £2.2 million on '19 in 2025.

John Gahan: Explain why you're only able to deliver GBP 1.7 million EBITDA on GBP 32 million for FY26 when you delivered GBP 2.2 million on GBP 19 million in 2025. Also, you've unlocked GBP 1 million of cost savings, what's happening here? Okay, there's a couple of things going on here. Firstly, I think it's important to understand there's been a major shift in the revenue mix year on year. I think shareholders know that the LED margins are typically mid-30s and solar is mid-20s. Historically, back in 2025, we were circa 2/3 LED, 1/3 solar. One of the things that's happened is that shift has completely gone the other way. It's now 2/3 solar, 1/3 LED in the H1 of this year, specifically. That's one of the reasons why the margin's low.

Jon Gahan: Explain why you're only able to deliver GBP 1.7 million EBITDA on GBP 32 million for FY26 when you delivered GBP 2.2 million on GBP 19 million in 2025. Also, you've unlocked GBP 1 million of cost savings, what's happening here? Okay, there's a couple of things going on here. Firstly, I think it's important to understand there's been a major shift in the revenue mix year on year. I think shareholders know that the LED margins are typically mid-30s and solar is mid-20s. Historically, back in 2025, we were circa 2/3 LED, 1/3 solar. One of the things that's happened is that shift has completely gone the other way. It's now 2/3 solar, 1/3 LED in the H1 of this year, specifically. That's one of the reasons why the margin's low.

Speaker #1: And obviously, you’ve unlocked £1 million of cost savings. So, what’s happening here? Okay. There are a couple of things going on here. Firstly, I think it’s important to understand there’s been a major shift in the revenue mix year-on-year.

Speaker #1: So I think shareholders know that the LED margins are typically sort of mid-30s, and solar is kind of mid-20s. Historically, back in 2025, we were circa two-thirds LED, one-third solar.

Speaker #1: And so, one of the things that's happened is that that shift has completely gone the other way. It's now two-thirds solar, one-third LED in the first half of this year, specifically.

Speaker #1: So that's one of the reasons why the margin is low. We obviously know with MACE as well that we incurred around half a million of additional unbudgeted costs, due to the factors Akash has explained, where effectively the panel prices increased from the 1st of January due to action taken by the Chinese government, which unfortunately we weren't able to pass on.

John Gahan: We obviously know with Mace as well that we incurred around half a million of additional unbudgeted costs due to the factors Akash has explained where effectively the panel prices increased from 1 January due to action taken by the Chinese government, which unfortunately we weren't able to pass on. When we were budgeting, we were expecting more of an LED split than a solar split, so that's another reason why the overall profitability is lower. I think the other point that is worth mentioning, without wishing to go back over all the old ground of the previous accounting adjustments, shareholders may remember that we originally announced that the adjusted EBITDA for FY25 was going to be circa GBP 1.7 million, was our expectation. The final number we ended up with was around GBP 2.2 million.

Jon Gahan: We obviously know with Mace as well that we incurred around half a million of additional unbudgeted costs due to the factors Akash has explained where effectively the panel prices increased from 1 January due to action taken by the Chinese government, which unfortunately we weren't able to pass on. When we were budgeting, we were expecting more of an LED split than a solar split, so that's another reason why the overall profitability is lower. I think the other point that is worth mentioning, without wishing to go back over all the old ground of the previous accounting adjustments, shareholders may remember that we originally announced that the adjusted EBITDA for FY25 was going to be circa GBP 1.7 million, was our expectation. The final number we ended up with was around GBP 2.2 million.

Speaker #1: When we were budgeting, we were expecting more of an LED split than a solar split, so that's another reason why the overall profitability is lower.

Speaker #1: And I think the other point that is worth mentioning, without wishing to go back over all the old ground of the previous accounting adjustments, shareholders may remember that we originally announced that the adjusted EBITDA for FY25 was going to be 1.

Speaker #1: Circa $1.7 million was our expectation, and the final number we ended up with was around $2.2 million. So, the adjusted EBITDA actually increased by $500,000.

John Gahan: The adjusted EBITDA actually increased by GBP 500,000. The reason for that was there was a lot of accrued revenue which then was shifted out of 2024 to the beginning of 2025, which then came into the 2025 numbers. That's another reason why 2025 was boosted by the half a million from the profit in the accrued revenue, which was an adjustment from 2024. I think it's also worth remembering that we moved GBP 700,000 worth of costs, pre-contract costs, so it's people cost effectively, internal cost mainly, out of the P&L and put it into the balance sheet because it represented a contract asset which the auditors were very happy with. It represented the value of the work which we'd done, but where we hadn't actually secured any business. Again, when I look at 2025 benefited from that GBP 700,000 share.

Jon Gahan: The adjusted EBITDA actually increased by GBP 500,000. The reason for that was there was a lot of accrued revenue which then was shifted out of 2024 to the beginning of 2025, which then came into the 2025 numbers. That's another reason why 2025 was boosted by the half a million from the profit in the accrued revenue, which was an adjustment from 2024. I think it's also worth remembering that we moved GBP 700,000 worth of costs, pre-contract costs, so it's people cost effectively, internal cost mainly, out of the P&L and put it into the balance sheet because it represented a contract asset which the auditors were very happy with. It represented the value of the work which we'd done, but where we hadn't actually secured any business. Again, when I look at 2025 benefited from that GBP 700,000 share.

Speaker #1: And the reason for that was there was a lot of accrued revenue, which then was shifted out of 2024 into the beginning of 2025, which then came into the 2025 numbers.

Speaker #1: So that's another reason why 2025 was boosted by the half a million from the accrued revenue of profit in the accrued revenue, which was an adjustment from 2024.

Speaker #1: I think it's also worth remembering that we moved £700,000 worth of pre-contract cost. So it's a people cost, effectively—mainly internal cost.

Speaker #1: Out of the P&L and put it into the balance sheet because it represented a contract asset, which the auditors were very happy with. But it represented the value of the work which we'd done, but where we hadn't actually secured any business.

Speaker #1: So again, when I look at 2025, 2025 benefited from that £700,000 shift. So if you take out, and you back out, the £500,000 profit in the accrued revenue, that's £1.1 million in total.

John Gahan: If you take that out and you back out the GBP 500,000 profit in the accrued revenue, that's GBP 1.1 million in total, GBP 1.1 million off the GBP 2.2 million, kind of indicates that FY25 was probably a lower number of circa GBP 1.1 million. Yes, there is an increase this year and obviously the revenue's gone up, but obviously the Mace revenue, which will account for around 50% of the revenue in the full year and around 70% of the revenue in H1, the Mace contract was at a significantly lower margin. As a result, with two-thirds of the revenue materializing in H1 and one-third in H2, we will struggle to try and significantly improve the margin because of the weighting impact of the revenue H1 versus H2. Yes, we expect an increase in margins in H2.

Jon Gahan: If you take that out and you back out the GBP 500,000 profit in the accrued revenue, that's GBP 1.1 million in total, GBP 1.1 million off the GBP 2.2 million, kind of indicates that FY25 was probably a lower number of circa GBP 1.1 million. Yes, there is an increase this year and obviously the revenue's gone up, but obviously the Mace revenue, which will account for around 50% of the revenue in the full year and around 70% of the revenue in H1, the Mace contract was at a significantly lower margin. As a result, with two-thirds of the revenue materializing in H1 and one-third in H2, we will struggle to try and significantly improve the margin because of the weighting impact of the revenue H1 versus H2. Yes, we expect an increase in margins in H2.

Speaker #1: 1.1 million off the 2.2, then kind of indicates that FY25 was probably a lower number of circa 1.1 million. So yes, there is an increase this year.

Speaker #1: And obviously, the revenue has gone up. But the MACE revenue, which will account for around 50% of the revenue in the full year and around 70% of the revenue in the half-year, was at a significantly lower margin.

Speaker #1: And as a result, with sort of two-thirds of the revenue materializing in H1 and one-third in H2, we will struggle to try and significantly improve the margin because of the weighting impact of the revenue in H1 versus H2.

Speaker #1: So, yes, we expect an increase in margins in the second half. The margins on non-MACE business have still been performing well, kind of in line with expectations—in line with the guidance that I've given, sort of mid-20s for solar, mid-30s for LED.

John Gahan: The margins on non-Mace business are still performing well, kind of in line with expectation, in line with the guidance that I've given, mid-20s for solar, mid-30s for LED. Effectively, I think at current course of speed, we are on track for H2 to deliver H2 results in line with expectation. It's quite a long answer to that question. I hope people can follow the detail there. In H2, the revenue forecast is currently GBP 10.8 million with GBP 5.5 million contracted. What percentage of H2 forecast is likely to be LED? If I look at the GBP 5.5 million, it's roughly 50/50 split between LED and solar, maybe slightly solar weighted. When I look at the balance of the pipeline opportunities which we'll have to convert to secure that revenue of GBP 10.2 million in the balance of H2, it is slightly more solar weighted again.

Jon Gahan: The margins on non-Mace business are still performing well, kind of in line with expectation, in line with the guidance that I've given, mid-20s for solar, mid-30s for LED. Effectively, I think at current course of speed, we are on track for H2 to deliver H2 results in line with expectation. It's quite a long answer to that question. I hope people can follow the detail there. In H2, the revenue forecast is currently GBP 10.8 million with GBP 5.5 million contracted. What percentage of H2 forecast is likely to be LED? If I look at the GBP 5.5 million, it's roughly 50/50 split between LED and solar, maybe slightly solar weighted. When I look at the balance of the pipeline opportunities which we'll have to convert to secure that revenue of GBP 10.2 million in the balance of H2, it is slightly more solar weighted again.

Speaker #1: But effectively, I think a current course of speed, we're on we are on track for a second half to deliver second half results in line with expectation.

Speaker #1: So, there's quite a long answer to that question. I hope people can follow the detail there. So, in H2, the revenue forecast is currently £10.8 million, with £5.5 million contracted.

Speaker #1: What percentage of H2 forecasts is likely to be LED? So, if I look at the 5.5 million, it's roughly a sort of 50/50 split between LED and solar, maybe slightly solar-weighted.

Speaker #1: But when I look at the balance of the pipeline opportunities, which we'll have to convert to secure that revenue of £10.2 million in the balance of H2, it is slightly more solar-weighted again.

Speaker #1: So if we're able to swing it back towards LED, then I'd expect there to be a slightly margin-accretive impact. But as we sit here today, it's a slightly higher weighting for solar.

John Gahan: If we're able to swing it back towards LED, I'd expect there to be a slightly margin accretive. As we sit here today, it's a slightly higher weighting for solar. Which customer verticals are growing fastest? That's a really interesting question. I think that when I look at the opportunities, I think NHS has got to be a really good opportunity for us. I think C&I is at a really low starting point, so if I look at percentage growth, it's difficult to compare. Education, there are around some 28,000 schools. Market penetration still suggests there's loads to go at for the foreseeable future. Hopefully, we'll be able to provide investors and shareholders with an update, to give you more detail on the individual channels later this year. We're still exploring all the pipeline opportunities.

Jon Gahan: If we're able to swing it back towards LED, I'd expect there to be a slightly margin accretive. As we sit here today, it's a slightly higher weighting for solar. Which customer verticals are growing fastest? That's a really interesting question. I think that when I look at the opportunities, I think NHS has got to be a really good opportunity for us. I think C&I is at a really low starting point, so if I look at percentage growth, it's difficult to compare. Education, there are around some 28,000 schools. Market penetration still suggests there's loads to go at for the foreseeable future. Hopefully, we'll be able to provide investors and shareholders with an update, to give you more detail on the individual channels later this year. We're still exploring all the pipeline opportunities.

Speaker #1: Okay. Which customer verticals are growing fastest? That's a really interesting question. I think that, when I look at the opportunities, I think NHS has got to be a really good opportunity for us.

Speaker #1: And I think CNI is at a really low starting point, so if I look at percentage growth, it's difficult to compare. And in terms of education, I mean, there are around 28,000 schools—market penetration still suggests there's loads to go at for the foreseeable future.

Speaker #1: Hopefully, we'll be able to provide investors and shareholders with an update to give you more detail on the individual channels later this year. We're still exploring all the pipeline opportunities.

Speaker #1: I think that the NHS is a great opportunity for us. And once we've got the first EPC contract and we've proven the model, and it's got government support as well, so I think that that could be that could be probably, as I sit here today, probably the most sizable growth area for the business.

John Gahan: I think that the NHS is a great opportunity for us, and once we've got the first EPC contract and we've proven the model and it's got government support as well. I think that could be, probably as I sit here today, probably the most sizable growth area for the business. Having said that, we are making great strides with the C&I business as well, targeting owner-occupied buildings, as an opportunity to try and drive revenue growth. The slide shows PLC costs in H1, at GBP 1.8 million annual run rate. What is included in that and has that been reduced by the GBP 2 million cost reduction? The PLC costs were about GBP 900,000 in H1 of this year. There will be a reduction on that number in H2.

Jon Gahan: I think that the NHS is a great opportunity for us, and once we've got the first EPC contract and we've proven the model and it's got government support as well. I think that could be, probably as I sit here today, probably the most sizable growth area for the business. Having said that, we are making great strides with the C&I business as well, targeting owner-occupied buildings, as an opportunity to try and drive revenue growth. The slide shows PLC costs in H1, at GBP 1.8 million annual run rate. What is included in that and has that been reduced by the GBP 2 million cost reduction? The PLC costs were about GBP 900,000 in H1 of this year. There will be a reduction on that number in H2.

Speaker #1: Having said that, we are making great strides with the CNI business as well, targeting owner-occupied buildings as an opportunity to try and drive revenue growth.

Speaker #1: The slide shows PLC costs in H1 at a £1.8 million annual run rate. What is included in that, and has that been reduced? How has that been reduced by the £2 million cost reduction?

Speaker #1: So, the PLC costs were about £900,000 in the first half of this year. There will be a reduction in that number in the second half.

Speaker #1: Obviously, we've lost a number of people from the C-suite roles, which has made a sizable dent in the cost base. I think that probably around £300,000 or £400,000 is the saving at a PLC level.

John Gahan: Obviously, we've lost a number of people from the C-suite roles, which has made a sizable dent in the cost base. I think that probably around GBP 300,000 or GBP 400,000 is the saving at a PLC level. There are also savings and most of the savings falling in the business unit, in the arena of the business unit as well because we have consolidated a number of roles, project management. We are obviously operating now with one Chief Operating Officer, not two Chief Operating Officers. Yeah, I think so there'd be savings probably split 60% to 70% in favor of business units than in the balance in the PLC line. Obviously, we're just keeping a very close eye on costs. Yeah. That's where I do expect to realize circa GBP 1 million in H2 of this year and GBP 2 million annualized. Here's a question.

Jon Gahan: Obviously, we've lost a number of people from the C-suite roles, which has made a sizable dent in the cost base. I think that probably around GBP 300,000 or GBP 400,000 is the saving at a PLC level. There are also savings and most of the savings falling in the business unit, in the arena of the business unit as well because we have consolidated a number of roles, project management. We are obviously operating now with one Chief Operating Officer, not two Chief Operating Officers. Yeah, I think so there'd be savings probably split 60% to 70% in favor of business units than in the balance in the PLC line. Obviously, we're just keeping a very close eye on costs. Yeah. That's where I do expect to realize circa GBP 1 million in H2 of this year and GBP 2 million annualized. Here's a question.

Speaker #1: But there are also savings, and most of the savings are falling in the business unit—in the arena of the business unit as well—because we have consolidated a number of roles, project management.

Speaker #1: We're obviously operating now with one Chief Operating Officer, not two Chief Operating Officers. So, yeah, I think there'll be savings—probably, the savings have probably split 60–70% in favor of business units, with the balance in the PLC line.

Speaker #1: But obviously, we're just keeping a very, very close eye on costs. So, yeah, that's where I do expect to realize circa £1 million in the second half of this year, and £2 million annualized.

Speaker #1: Here's a question: Is there any risk that the £4.8 million of MACE cash won't be received once the paperwork is fully provided? I don't believe there is a risk at all that it won't be received.

John Gahan: Is there any risk that the GBP 4.8 million of Mace cash won't be received once the paperwork is fully provided? I don't believe there is a risk at all that it won't be received. We're talking to the DfE today, to try and secure and accelerate the timing of those payments to us. It's fair to say that the solar business was not in a state which it should have been, frankly. It's disappointing to be in a position where we expected to collect all of that Mace cash before the end of June. In fact, our internal trackers showed that, the trackers which we showed to the customer showed that. The reality is we're just not.

Jon Gahan: Is there any risk that the GBP 4.8 million of Mace cash won't be received once the paperwork is fully provided? I don't believe there is a risk at all that it won't be received. We're talking to the DfE today, to try and secure and accelerate the timing of those payments to us. It's fair to say that the solar business was not in a state which it should have been, frankly. It's disappointing to be in a position where we expected to collect all of that Mace cash before the end of June. In fact, our internal trackers showed that, the trackers which we showed to the customer showed that. The reality is we're just not.

Speaker #1: We're talking to the DOB today to try and secure and accelerate the timing of those payments to us. It's fair to say that the solar business was not in the state in which it should have been, frankly.

Speaker #1: And it's disappointing to be in a position where we expected to collect all of that MACE cash before the end of June. In fact, our internal trackers showed that, and the trackers we showed to the customer showed that as well. But the reality is we're just not.

Speaker #1: So the team have done a great job getting their arms around exactly what is outstanding. And it's a paperwork exercise to do all the relevant planning, the O&M manuals, the building control, etc., etc., etc.

John Gahan: The team has done a great job getting their arms around exactly what is outstanding, and it's a paperwork exercise to do all the relevant planning, the O&M manuals, the building control, et cetera. There's quite a lot to get signed off and get submitted. You have to provide the as-built drawings, not the original drawing. We need to know exactly what was installed and provide the technical drawings for that, and that takes time. Yeah, I don't think there isn't a risk around the quantum coming in. It's only a risk around the timing of that cash being received. We received a big chunk of it already, in July. Obviously we're trying to secure the rest as quickly as possible. A question here. You've got GBP 500,000 profit in H2, implies a loss-making business with the GBP 1 million cost savings delivered.

Jon Gahan: The team has done a great job getting their arms around exactly what is outstanding, and it's a paperwork exercise to do all the relevant planning, the O&M manuals, the building control, et cetera. There's quite a lot to get signed off and get submitted. You have to provide the as-built drawings, not the original drawing. We need to know exactly what was installed and provide the technical drawings for that, and that takes time. Yeah, I don't think there isn't a risk around the quantum coming in. It's only a risk around the timing of that cash being received. We received a big chunk of it already, in July. Obviously we're trying to secure the rest as quickly as possible. A question here. You've got GBP 500,000 profit in H2, implies a loss-making business with the GBP 1 million cost savings delivered.

Speaker #1: There's quite a lot to get signed off and submitted. You have to provide the as-built drawings, not the original drawings. We need to know exactly what was installed and provide the technical drawings for that.

Speaker #1: And that takes time. So, yeah, I don't think that there is a risk around the quantum coming in—it's only a risk around the timing of that cash being received.

Speaker #1: We received a big chunk of it already—in July. And obviously, we're trying to secure the rest as quickly as possible. Question here: So you've got £500,000 profit in H2.

Speaker #1: This implies a loss-making business, even with the £1 million cost savings delivered. Why are you not able to deliver more than £1 million? Good question.

John Gahan: Why are you not able to deliver more than GBP 1 million? Good question. I think our focus is obviously trying to drive up margins, particularly in the solar business, where I think margins are constrained. I think they're constrained for two reasons. I don't think we've got an ideal fix on all the purchase prices of products. Given the increase in volumes, we're trying to now go back and speak to vendors to try and secure better pricing, for some of the key components which would make a difference. I think secondly, the competitive market, particularly when we're doing tenders, for example, we're having to compete at very keen prices to secure the work. That's particularly the case for solar and obviously as we having a slightly dilutive impact on margins.

Jon Gahan: Why are you not able to deliver more than GBP 1 million? Good question. I think our focus is obviously trying to drive up margins, particularly in the solar business, where I think margins are constrained. I think they're constrained for two reasons. I don't think we've got an ideal fix on all the purchase prices of products. Given the increase in volumes, we're trying to now go back and speak to vendors to try and secure better pricing, for some of the key components which would make a difference. I think secondly, the competitive market, particularly when we're doing tenders, for example, we're having to compete at very keen prices to secure the work. That's particularly the case for solar and obviously as we having a slightly dilutive impact on margins.

Speaker #1: I think our focus is obviously trying to drive up margins, particularly in the solar business, where I think margins are constrained. I think they're constrained for two reasons.

Speaker #1: I don't think we've got an ideal fix on all the purchase prices of products. But given the increase in volumes, we're now trying to go back and speak to vendors to try and secure better pricing.

Speaker #1: For some of the key components, which would make a difference. I think, secondly, the competitive market, particularly when we're doing tenders, for example, we're having to price to secure the work.

Speaker #1: That's particularly the case for solar. And obviously, as we have, it's having a slightly diluted impact on margins. And obviously, when we look year on year, as I said before, last year LED was 65%, and solar was 35%.

John Gahan: Obviously when we look year on year, as I said before, we had last year, LED was 65% and solar was 35%. This year it's flipped around the other way with solar around 35% and LED at around Sorry, solar at 65% and LED at 35%. I think it's also worth pointing out that this year as part of the Mace contract, we also have been installing EV chargers, which is about GBP 1.6 million of the total circa GBP 15 million of revenue recognized this year on Mace. Margins on EV chargers are low twenties. Again, that's slightly margin dilutive versus LED. Similarly with batteries, margins on battery installations have been low twenties. There's definitely further work to do to try to drive up the revenue, to help us boost the bottom line and improve our operating leverages.

Jon Gahan: Obviously when we look year on year, as I said before, we had last year, LED was 65% and solar was 35%. This year it's flipped around the other way with solar around 35% and LED at around Sorry, solar at 65% and LED at 35%. I think it's also worth pointing out that this year as part of the Mace contract, we also have been installing EV chargers, which is about GBP 1.6 million of the total circa GBP 15 million of revenue recognized this year on Mace. Margins on EV chargers are low twenties. Again, that's slightly margin dilutive versus LED. Similarly with batteries, margins on battery installations have been low twenties. There's definitely further work to do to try to drive up the revenue, to help us boost the bottom line and improve our operating leverages.

Speaker #1: This year, it's flipped around the other way with sort of solar around 35 and LED at around yeah, solar at 65 and LED at 35.

Speaker #1: I think it's also worth pointing out that we had this year—it's part of the MACE contract. We have also been installing EV chargers, which is about £1.6 million of the total, circa £15 million of revenue recognized this year on MACE.

Speaker #1: And margins on EV chargers are kind of low 20s. So again, that's slightly margin-dilutive versus LED. And similarly with batteries, margins on battery installations have been sort of low 20s.

Speaker #1: So there's definitely further work to do to try and drive up the revenue, to help us boost the bottom line and improve our operating leverage.

Speaker #1: And the changes we’ve made have definitely helped there, but there’s certainly more work to do to drive up, improve, and increase the profitability of the business.

John Gahan: The changes we've made have definitely helped there's definitely more work to do to drive up and improve and increase the profitability of the business. Look at the next question. If you win further government contracts, will you be putting in protections on costs? I'd love to be able to do that. It's a great question. I think the reality is that the government presents a lot of these contracts, GB Energy present them as a take it or leave it. I guess because of the quantum of the contract and the GB Energy contract could be a very sizable contract, potentially 3 years worth of revenue for us if we can secure it. There's very little scope really to negotiate, unfortunately.

Jon Gahan: The changes we've made have definitely helped there's definitely more work to do to drive up and improve and increase the profitability of the business. Look at the next question. If you win further government contracts, will you be putting in protections on costs? I'd love to be able to do that. It's a great question. I think the reality is that the government presents a lot of these contracts, GB Energy present them as a take it or leave it. I guess because of the quantum of the contract and the GB Energy contract could be a very sizable contract, potentially 3 years worth of revenue for us if we can secure it. There's very little scope really to negotiate, unfortunately.

Speaker #1: Look at the next question. If you win further government contracts, will you be putting in protections on costs? I'd love to be able to do that.

Speaker #1: It's a great question. I think the reality is that the government presents a lot of these contracts—GB Energy, for example—and presents them as a take it or leave it.

Speaker #1: And I kind of guess we're in because of the quantum of the contract, and the GB Energy contract could be a very sizable contract—potentially three years' worth of revenue.

Speaker #1: For us, if we can secure it, there’s very little scope really to negotiate, unfortunately. In all of our contracts, we do have a clause which talks about if the work is not commenced within three months of the contract signing, then we're allowed to go back to the customer and have a negotiation in good faith to secure the on-cost which we've incurred.

John Gahan: In all of our contracts, we do have a clause which talks about if the work is not commenced within 3 months of the contract signing, then we're allowed to go back to the customer and secure, and have a negotiation in good faith to secure the on costs which we've incurred. I think where Mace was concerned, we unfortunately couldn't do that. We did factor in a small contingency, by the way, but we burnt through that pretty quickly with some of the panel cost increases we saw after the Chinese government increased the duty on panel prices coming out of China from 1 January this year. Let me have a look at the other questions. Is there any thought of clearing out the share overhang from the holders who are no longer with the company? Look, investors make their own decisions.

Jon Gahan: In all of our contracts, we do have a clause which talks about if the work is not commenced within 3 months of the contract signing, then we're allowed to go back to the customer and secure, and have a negotiation in good faith to secure the on costs which we've incurred. I think where Mace was concerned, we unfortunately couldn't do that. We did factor in a small contingency, by the way, but we burnt through that pretty quickly with some of the panel cost increases we saw after the Chinese government increased the duty on panel prices coming out of China from 1 January this year. Let me have a look at the other questions. Is there any thought of clearing out the share overhang from the holders who are no longer with the company? Look, investors make their own decisions.

Speaker #1: But I think with MACE, as was concerned, we unfortunately couldn’t do that. We did factor in a small contingency, by the way, but we kind of burnt through that pretty quickly with some of the panel cost increases we saw.

Speaker #1: After the Chinese government increased the duty on panel prices coming out of China from the 1st of January this year, let me have a look at the other questions.

Speaker #1: Is there any thought of clearing out the share overhang from the holders who are no longer with the company? Look, investors make their own decisions.

Speaker #1: It's not for me to determine what investors wish to do, so I will just let the market decide how investors want to play that going forward.

John Gahan: It's not for me to determine what investors wish to do. I will just let the market decide, investors will decide how they want to play that going forward. It's not for me to answer that one. In terms of cash going forwards after paying trade debtors and the Harwood loan, are we okay for cash or could there be another need for a loan from Harwood, or any other large Mace contract wins going forward? I think, look, once we've collected the cash from Mace, we can repay the balance of the Harwood loan as half a million GBP of the loan was extended from the end of July to the end of November for repayment. That's great. We've got a very supportive shareholder. The other thing to note is with the Mace contract, we're paid on 28 days from date of invoice.

Jon Gahan: It's not for me to determine what investors wish to do. I will just let the market decide, investors will decide how they want to play that going forward. It's not for me to answer that one. In terms of cash going forwards after paying trade debtors and the Harwood loan, are we okay for cash or could there be another need for a loan from Harwood, or any other large Mace contract wins going forward? I think, look, once we've collected the cash from Mace, we can repay the balance of the Harwood loan as half a million GBP of the loan was extended from the end of July to the end of November for repayment. That's great. We've got a very supportive shareholder. The other thing to note is with the Mace contract, we're paid on 28 days from date of invoice.

Speaker #1: It's not for me to answer that one. So, in terms of cash going forward, after paying trade debtors and the Harvard loan, are we okay for cash?

Speaker #1: Or could there be another lead, another need for a loan from Harvard, or any other large MACE contract wins going forward? So I think, look, once we've collected the cash from MACE, we can repay the balance of the Harvard loan, as half a million of the loan was extended from the end of July to the end of November for repayment.

Speaker #1: So that's great. We've got a very supportive shareholder. The other thing to note is, with the MACE contract, we're paid on 28 days from date of invoice.

Speaker #1: This is a very significant change. And obviously, it's one of the reasons why our working capital if you look at the net working capital year on year, working capital should be in credit for this business because we should always be all of our projects should overall be self-funding.

John Gahan: This is a very significant change and obviously it's one of the reasons why our working capital, if you look at the net working capital year-on-year, working capital should be in credit for this business because we should always be, all of our projects should overall be self-funding. We should be able to collect the cash, particularly on LED projects, in advance, having to settle all of the creditors on the hardware, et cetera. It should be cash positive. However, on the Mace contract, the credit terms are horrible. They're 28 days from date of invoice. Again, it's a sort of take it or leave it. I think we've learnt a lot over the last sort of 12 months, particularly around management of net working capital. We've had really supportive creditors around hardware and some of the contract creditors as well, which have been terrific.

Jon Gahan: This is a very significant change and obviously it's one of the reasons why our working capital, if you look at the net working capital year-on-year, working capital should be in credit for this business because we should always be, all of our projects should overall be self-funding. We should be able to collect the cash, particularly on LED projects, in advance, having to settle all of the creditors on the hardware, et cetera. It should be cash positive. However, on the Mace contract, the credit terms are horrible. They're 28 days from date of invoice. Again, it's a sort of take it or leave it. I think we've learnt a lot over the last sort of 12 months, particularly around management of net working capital. We've had really supportive creditors around hardware and some of the contract creditors as well, which have been terrific.

Speaker #1: So we should be able to collect the cash, particularly on LED projects, in advance, before having to settle all of the creditors on the hardware, etc.

Speaker #1: So it should be cash positive. However, on the MACE contract, the credit terms are horrible. They're 28 days from date of invoice. And again, it's a sort of take it or leave it.

Speaker #1: I think we've learned a lot over the last, sort of, 12 months—particularly around management of net working capital. We've had really supportive creditors.

Speaker #1: Around the hardware and some of the contractor creditors as well, which have been terrific. If and when the cash comes in from MACE, we'll obviously be bringing creditors up to date and repaying the Harvard loan.

John Gahan: Once the cash comes in from Mace, we'll obviously be bringing creditors up to date and repaying the Harwood loan. We're going back to a normal run rate of working capital where effectively, once we raise an invoice, we get paid within 7 days. I'm hoping cash flow should improve going forwards as well. If we win another piece of Mace business, we'll have to assess it. It may not be Mace business, it would probably be GB Energy, because they're the awarding company. We'll have to assess it at that point in time. As we sit here today, there are no plans for that.

Jon Gahan: Once the cash comes in from Mace, we'll obviously be bringing creditors up to date and repaying the Harwood loan. We're going back to a normal run rate of working capital where effectively, once we raise an invoice, we get paid within 7 days. I'm hoping cash flow should improve going forwards as well. If we win another piece of Mace business, we'll have to assess it. It may not be Mace business, it would probably be GB Energy, because they're the awarding company. We'll have to assess it at that point in time. As we sit here today, there are no plans for that.

Speaker #1: And we're kind of going back to a sort of normal run rate of working capital, where effectively, once we raise an invoice, we get paid within seven days.

Speaker #1: So I'm hoping cash flow should improve going forward as well. So if we win another piece of MACE business, we'll have to assess it.

Speaker #1: It won't be—it may not be MACE business. It would probably be GB Energy, because they're the awarding company. We'll have to assess it at that point in time.

Speaker #1: So, as we sit here today, there are no plans for that. Can we have an explanation of what went wrong with the NatWest facility?

John Gahan: Can we have an explanation of what went wrong with the NatWest facility? Well, the NatWest facility was put in place by the previous management team back in, I think it was around March, April 2024, at a cost of GBP 300,000 or GBP 400,000 on professional fees and legal fees. On the face of it was a really good facility because it allowed eEnergy to secure finance from NatWest at really competitive interest rates. I'm talking 6.5%, so it was a really low interest rate. The only problem was, is that eEnergy had to leave in the deal 15% of the value of the installation revenue in the contract. When you're short of cash, as eEnergy was historically, you haven't got the cash flow to be able to do it.

Jon Gahan: Can we have an explanation of what went wrong with the NatWest facility? Well, the NatWest facility was put in place by the previous management team back in, I think it was around March, April 2024, at a cost of GBP 300,000 or GBP 400,000 on professional fees and legal fees. On the face of it was a really good facility because it allowed eEnergy to secure finance from NatWest at really competitive interest rates. I'm talking 6.5%, so it was a really low interest rate. The only problem was, is that eEnergy had to leave in the deal 15% of the value of the installation revenue in the contract. When you're short of cash, as eEnergy was historically, you haven't got the cash flow to be able to do it.

Speaker #1: Well, the NatWest facility was put in place by the previous management team back in, I think it was around March or April 2024, at a cost of three or four hundred thousand pounds on professional fees.

Speaker #1: And legal fees. And on the face of it, it was a really good facility because it allowed eEnergy to secure finance from NatWest at really competitive interest rates.

Speaker #1: I'm talking sort of six and a half percent. So it was a really, really low interest rate. The only problem was is that e-energy had to leave in the deal 15% of the value of the installation revenue in the contract.

Speaker #1: And when you're short of cash, as eEnergy was historically, you don't have the cash flow to be able to do it. So when I joined, one of the first things I observed was that the NatWest facility was actually unaffordable.

John Gahan: When I joined, one of the first things I observed was the NatWest facility is actually unaffordable, therefore it's unusable. One of the first things we did, we approached Redaptive to see whether they would be willing to provide the funding to us, they offered us a GBP 100 million facility, which we've been using ever since, which has been great. Effectively, Redaptive purchased, if you remember last year, they purchased the NatWest facility from us. It's just not, as a facility, great interest rate, but the cost is just far too high in terms of the cash flow. Obviously, eEnergy would have to leave that money in, then we recover our investment plus interest over the course of the contract for seven to 10 years.

Jon Gahan: When I joined, one of the first things I observed was the NatWest facility is actually unaffordable, therefore it's unusable. One of the first things we did, we approached Redaptive to see whether they would be willing to provide the funding to us, they offered us a GBP 100 million facility, which we've been using ever since, which has been great. Effectively, Redaptive purchased, if you remember last year, they purchased the NatWest facility from us. It's just not, as a facility, great interest rate, but the cost is just far too high in terms of the cash flow. Obviously, eEnergy would have to leave that money in, then we recover our investment plus interest over the course of the contract for seven to 10 years.

Speaker #1: And therefore, it's unusable. So, one of the first things we did was approach Redaptive to see whether they would be willing to provide the funding to us.

Speaker #1: And they offered us a £100 million facility, which we've been using ever since, which has been great. And effectively, Redaptive purchased—if you remember last year—they purchased the NatWest facility from us.

Speaker #1: So it's just not—it's just not, as a facility, a great interest rate, but the cost is just far too high in terms of the cash flow.

Speaker #1: Obviously, energy would have to leave that money in, and then we recover our investment plus interest over the course of the contract for seven to ten years.

Speaker #1: Well, I mean, we'd need an enormous balance sheet to be able to utilize the full £40 million. If circa 15% of the deals which we secure, we've got to leave that money in for seven to ten years.

John Gahan: Well, we'd need an enormous balance sheet to be able to utilize the full GBP 40 million if circa 15% of the deals which we secure, we've got to leave that money in for seven to 10 years. It just wasn't workable, as a result, we terminated this year, which is helpful. We save around GBP 10,000 of non-utilization fees a month, which will be offset by the interest cost broadly on the Harwood loan. That's why we terminated the NatWest facility. As a result, yes, we wrote off the balance of the fees. There's around GBP 300,000 still in the balance sheet because it was terminated. That was part of a non-cash charge in the interest line in our results. Got a question here, Is the streamlined team hiring? Excellent question.

Jon Gahan: Well, we'd need an enormous balance sheet to be able to utilize the full GBP 40 million if circa 15% of the deals which we secure, we've got to leave that money in for seven to 10 years. It just wasn't workable, as a result, we terminated this year, which is helpful. We save around GBP 10,000 of non-utilization fees a month, which will be offset by the interest cost broadly on the Harwood loan. That's why we terminated the NatWest facility. As a result, yes, we wrote off the balance of the fees. There's around GBP 300,000 still in the balance sheet because it was terminated. That was part of a non-cash charge in the interest line in our results. Got a question here, Is the streamlined team hiring? Excellent question.

Speaker #1: So it just wasn’t workable. And as a result, we terminated this year, which is helpful. We save around £10,000 of non-utilization fees a month, which will be offset by the interest cost broadly on the Harvard loan.

Speaker #1: So that's why we terminated the NatWest facility. And as a result, yes, we wrote off the balance of the fees. There's around £300,000 still on the balance sheet because it was terminated.

Speaker #1: That was part of a non-cash charge in the interest line in our results. But the question here is the streamlined hiring—so, excellent question.

Speaker #1: I think that we know where the bottlenecks in this business are, and we could, if we won the next contract with GB Energy, scale up much faster by outsourcing some of those key activities and tightly managing those outsourced resources.

John Gahan: I think that we know where the bottlenecks in this business are, we could, if we won the next contract with GB Energy, scale up much faster by outsourcing some of those key activities and tightly managing those outsourced resources. We know what they are, but I think any additional cost will be justified by additional profit on those contracts. I think I'm really comfortable with the size of the team where we are today, bearing in mind, this team, I believe as they're constructed today, is sufficient to be able to deliver GBP 21.8 million of revenue, which is what we did in H1. That implies we've got a business, a cost base that could deliver circa GBP 40 million of annualized revenue. A lot of the savings we've made have been in the senior leadership of the team as well.

Jon Gahan: I think that we know where the bottlenecks in this business are, we could, if we won the next contract with GB Energy, scale up much faster by outsourcing some of those key activities and tightly managing those outsourced resources. We know what they are, but I think any additional cost will be justified by additional profit on those contracts. I think I'm really comfortable with the size of the team where we are today, bearing in mind, this team, I believe as they're constructed today, is sufficient to be able to deliver GBP 21.8 million of revenue, which is what we did in H1. That implies we've got a business, a cost base that could deliver circa GBP 40 million of annualized revenue. A lot of the savings we've made have been in the senior leadership of the team as well.

Speaker #1: We know what they are. But I think any additional cost would be justified by additional profit on those contracts. I think I'm really comfortable with the size of the team where we are today. Bearing in mind, this team, I believe, as they're constructed today, is sufficient to be able to deliver £21.8 million of revenue, which is what we did in the first half.

Speaker #1: So that kind of implies we've got a business, a cost base that could deliver circa £40 million of annualized revenue. So, a lot of the savings we've made have been in the senior leadership of the team as well.

Speaker #1: So, it's not just the operations side—we've trimmed the cost base and streamlined the number of roles. I think putting everything under one Chief Operating Officer makes complete sense.

John Gahan: It's not just the operations side, which we've trimmed the cost base to streamline the number of roles. I think putting everything under one chief operating officer makes complete sense. I wish we'd done it previously, but we are where we are. We've done it now, and it's made a massive difference to how the team operates, which is great. Okay. I think we've answered all of the questions. Thank you very much everybody for attending today. I really appreciate it. On behalf of Akash and I hope we've answered all the questions that you've raised. If you've got any other questions, please feel free to submit them through to this website, and obviously, they'll be forward on to us, and we'll try and answer them as best as we can. I'll hand back to Lily. Thank you.

Jon Gahan: It's not just the operations side, which we've trimmed the cost base to streamline the number of roles. I think putting everything under one chief operating officer makes complete sense. I wish we'd done it previously, but we are where we are. We've done it now, and it's made a massive difference to how the team operates, which is great. Okay. I think we've answered all of the questions. Thank you very much everybody for attending today. I really appreciate it. On behalf of Akash and I hope we've answered all the questions that you've raised. If you've got any other questions, please feel free to submit them through to this website, and obviously, they'll be forward on to us, and we'll try and answer them as best as we can. I'll hand back to Lily. Thank you.

Speaker #1: I wish we'd done it previously, but we are where we are. We've done it now, and it's made a massive difference to how the team operates, which is great.

Speaker #1: Okay, I think we've answered all of the questions. So, thank you very much, everybody, for attending today. I really appreciate it. On behalf of Akash and myself, I hope we've answered all the questions that you've raised.

Speaker #1: And if you've got any other questions, then please feel free to submit them through this website. Obviously, they'll be forwarded on to us, and we'll try to answer them as best as we can.

Speaker #1: I'll hand back to Lily. Thank you. Thank you.

Akash Harnal: Thank you.

Speaker #3: That's great. Thank you for updating investors today. Can I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations.

Moderator: That's great. Thank you for updating investors today. Can I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments.

Operator: That's great. Thank you for updating investors today. Can I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments.

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Half Year 2026 Eenergy Group PLC Earnings Call

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