Shares in eEnergy Group PLC were up on Friday, as the group received an injection of cash following the disposal of one of its divisions.
In January, eEnergy agreed to dispose of its energy management system to Flogas Britain Ltd, a Leicester-based off-grid energy supplier, for an initial consideration of GBP 29.3 million. An additional £8.0 million to £10.0 million will be given to eEnergy, contingent on the energy management division’s trading performance in the period to September 30, 2025.
At the company’s general meeting on Wednesday, the sale was approved with over 99% of shareholder votes cast in favour.
On Friday, eEnergy confirmed receipt of the first £25.0 million cash consideration. The remaining £4.3 million has been used to repay amounts owed by eEnergy to the energy management division, the company said.
As per the January announcement, proceeds from the disposal will be reinvested in the company’s ‘high growth’ energy services division. The funds will also go towards paying down eEnergy’s external debt facilities of £8.1 million, as well as general working capital purposes.
Chief Executive Officer Harvey Sinclair said: ‘I am very pleased to announce the completion of the disposal, which unlocks value for shareholders and significantly strengthens our balance sheet so that we can focus our resources on our fast-growing energy services business.’
Shares in eEnergy were up 8.6% at 8.10 pence each in London on Friday afternoon.
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