eEnergy Group HY Results: Revenue Surges but Cash Remains the Key Test

eEnergy Group's first-half results tell two quite different stories. Trading grew strongly and adjusted profit improved, but cash collection failed to keep pace.

Revenue more than doubled to a record £21.8 million, helped by a major solar project covering 62 schools. Adjusted EBITDA also rose to £1.2 million.

However, the quality of that growth matters. Gross margins fell sharply, operating cash flow was negative and eEnergy finished June with only £0.4 million in cash. Management now needs to show that delayed project receipts can be converted into cash during the second half.

These eEnergy Group PLC figures are unaudited and cover the six months ended 30 June 2026.

eEnergy's key first-half figures

Metric	H1 2026	H1 2025	Change
Revenue	£21.8 million	£10.1 million	Up 117%
Gross profit	£3.7 million	£3.1 million restated	Up 21%
Gross margin	17.0%	30.6% restated	Down 13.6 percentage points
Adjusted EBITDA	£1.2 million	£0.5 million	Up £0.7 million
Loss before tax	£1.1 million	£1.9 million	Loss reduced
Operating cash flow	£0.6 million outflow	£5.3 million inflow	Weaker
Closing cash	£0.4 million	£3.1 million	Down £2.7 million
Net debt including leases	£2.2 million	£1.1 million net cash	Weaker

Adjusted EBITDA means earnings before interest, tax, depreciation and amortisation, with share-based payments and exceptional items also excluded. It is useful for assessing underlying trading, but it is not the same thing as cash generation or statutory profit.

Record revenue came with a margin cost

The headline revenue growth is impressive. Delivery of the Mace project across 62 school sites helped revenue reach £21.8 million, already above the £19.0 million generated during the whole of 2025.

But this contract was secured at a lower gross margin than eEnergy's wider work. The company also suffered approximately £0.5 million of unrecoverable materials inflation after a six-month delay between winning the project and beginning installation.

A further £0.6 million contract asset, covering costs incurred before the contract started, was expensed during the half. Together, these two items reduced reported gross profit by £1.1 million and the gross margin by five percentage points.

The result was a 17.0% gross margin, compared with a restated 30.6% a year earlier. That is the clearest weakness within the income statement. Revenue expanded rapidly, but a much smaller proportion flowed through as gross profit.

Management says it is now focusing on winning higher-margin work. Investors will want evidence of that in future contract announcements rather than simply further top-line growth.

Adjusted earnings improved, but the statutory business remained loss-making

Adjusted EBITDA increased from £0.5 million to £1.2 million, while central costs remained broadly unchanged at £0.9 million.

That improvement is encouraging, although eEnergy still reported a £391,000 operating loss and a £1.1 million loss before tax. Finance expenses of £870,000 remained significant relative to the group's adjusted earnings.

Exceptional charges totalled £1.2 million. This included £0.5 million of restructuring costs and a £0.7 million non-cash share-based payment charge, partly linked to options lapsing following director departures.

There was also a £0.3 million finance charge connected with terminating the NatWest customer facility and writing off associated arrangement costs.

Cash collection is the central investor issue

The largest concern is the balance sheet rather than the reported revenue figure.

Cash fell from £0.9 million at the end of December 2025 to £386,000 at 30 June 2026. Operating activities used £622,000 of cash, despite generating £722,000 before working-capital movements.

Trade and other receivables increased to £13.1 million from £3.5 million at the end of December. This reflects the timing gap between completing work, obtaining approval for the relevant paperwork and collecting customer payments.

At the reporting date, £4.8 million remained to be collected from the Mace project for work that was subsequently completed. The company had expected most of this cash to arrive before 30 June.

Management expects the working-capital build-up to unwind and says eEnergy should be cash-generative in the second half. That would be a meaningful improvement, but it is still a forecast. The timing and size of collections will be crucial.

Net current liabilities stood at £2.2 million, while total equity was only £36,000. The directors continue to use the going concern basis and say they have a reasonable expectation that the group has sufficient resources for the foreseeable future.

Restructuring could materially lower the cost base

Interim chief executive John Gahan has moved quickly to reduce overheads following his appointment in May.

The restructuring is expected to save approximately £2.0 million annually, cutting operating costs excluding share-based payments, depreciation and amortisation by around 50%. The management team has been reduced from ten people to five.

Management expects the changes to improve second-half adjusted EBITDA by approximately £1.0 million, with the monthly cash-flow benefit beginning from the end of July.

This is important because eEnergy's previous cost base offered limited room for project delays or margin pressure. A leaner structure could make future revenue more valuable, provided service delivery and sales execution are not weakened by the scale of the cuts.

The overhaul follows substantial board and executive changes. The chief executive, former chairman and another non-executive director all departed during the period. The board now has three members and intends to recruit a permanent chief executive in due course.

Pipeline reset leaves a more realistic starting point

Management has reassessed the sales pipeline and reduced it to approximately £66 million. The new figure includes opportunities considered more current and where there is a healthier level of customer engagement.

The reset contributed to the revised 2026 guidance discussed in June. Full-year revenue is expected to be £32.0 million, with adjusted EBITDA of £1.7 million. Trading remains in line with those expectations.

The group entered the second half with £3.0 million of contracted revenue and has secured a further £2.5 million of orders since 30 June.

The £40 million NatWest facility has been terminated because eEnergy was required to invest approximately 20% in each funded deal from the start, creating cash-flow pressure. The group will instead use Redaptive and a small number of alternative funders.

What investors should watch next

There are genuine positives here. Revenue reached a record level, adjusted EBITDA improved and the restructuring could substantially lower ongoing costs. The smaller, more carefully assessed pipeline may also be more credible than the previous figure.

The risks are equally clear. Cash is tight, net debt has increased, margins fell sharply and the balance sheet has little room for further disruption. The £0.5 million balance on the February Harwood loan is now due on 30 November 2026 and carries interest of 1% per month.

The next important evidence will be whether eEnergy collects the delayed Mace receipts, generates cash in the second half and delivers the expected £1.0 million EBITDA benefit from restructuring.

For now, this is a recovery and execution story rather than a straightforward revenue-growth story. The original company announcement provides the full unaudited financial statements and accompanying notes.