Good Energy Group acquires JPS Renewable Energy to bolster renewable energy services

In a notable development within the renewable energy sector, Good Energy Group PLC (AIM: GOOD), known for its commitment to 100% renewable electricity and energy services, has announced a significant acquisition. The company has entered a conditional binding agreement to acquire the entire issued share capital of JPS Renewable Energy Ltd, a leading specialist in solar and storage installation and distribution, and its wholly owned subsidiary, Trust Solar Wholesale Limited. This strategic move, valued at a total maximum consideration of £13.75 million, marks a pivotal step in Good Energy’s growth strategy, emphasizing its ambition to become a dominant player in the renewable energy services market.

The acquisition, executed on a debt-free, cash-free basis, entails an initial consideration of £7 million with an additional deferred consideration of up to £6.75 million, contingent on specific performance conditions over a two-year period. This financial arrangement includes a cash payment of £3.7 million at completion and the allotment of 1,322,000 new ordinary shares in Good Energy, further underlining the strategic importance of this acquisition for both parties involved.

JPS Renewable Energy Ltd, based in Maidstone, Kent, has established itself as a prominent figure in the solar and storage sector since its inception in 2011. The acquisition by Good Energy is not just a testament to JPS’s success and expertise but also a clear indicator of the growing importance of renewable energy solutions in tackling the challenges of climate change. For the financial year ending April 2023, JPS Group reported significant financial health with a revenue of £12.2 million and a pre-tax profit of £0.6 million, showcasing its pivotal role in the renewable energy market.

Good Energy’s acquisition of JPS Group is expected to be immediately earnings accretive, contributing to the company’s performance in the current financial year. This move is aligned with Good Energy’s objective to balance its earnings between energy services and energy supply by 2025, demonstrating a strategic approach to capturing growth in high-margin markets with lower capital requirements.

Nigel Pocklington, CEO of Good Energy, highlighted the strategic importance of this acquisition, stating, “The acquisition of the JPS Group is an exciting next step in Good Energy’s growth strategy and further solidifies our position as the UK’s go-to solar specialist.” Pocklington’s remarks underscore the company’s commitment to leading the charge in the UK’s solar boom and its role in decarbonizing the energy system.

This acquisition comes at a time when the solar installation market is experiencing robust growth, particularly in the South East of the UK, a region known for its rapid rate of domestic solar installations. JPS Group’s expertise and market presence in this region position Good Energy advantageously to cater to the increasing demand for premium clean energy products and services.

In conclusion, Good Energy Group PLC’s acquisition of JPS Renewable Energy Ltd represents a significant milestone in the renewable energy sector, signaling a strong commitment to sustainable growth and innovation. This strategic move not only enhances Good Energy’s service offerings but also accelerates its growth strategy in the renewable energy market, promising a greener future for homes and businesses across the UK.