eEnergy Adopts Conservative Revenue Policy and Lifts FY26 Revenue Outlook

FY25 and FY24 (unaudited) snapshot: profitability and cash step forward

Applying the updated policy, eEnergy expects FY25 revenue of £19.0m (FY24 restated: £22.4m). More importantly, profitability has improved: Adjusted EBITDA of £2.2m in FY25 versus a £0.7m loss in FY24 (restated).

• FY25 net cash inflow from operating activities: £2.5m – a meaningful improvement in cash conversion
• Board expects a clean audit opinion from Cooper Parry on FY25 results
• Adjusted EBITDA excludes share-based payments (£0.8m in FY25; £1.6m in FY24)

Management’s line here is clear: the model is converting EBITDA into cash, which is what you want to see in a funded infrastructure roll-out business.

FY26 outlook: revenue lifted to £38.0m, EBITDA steady at £4.5m

The Board has raised FY26 revenue expectations to £38.0m, reflecting improved visibility, mobilisation of bigger FY25 wins, strong frameworks and funding partnerships, plus the revised revenue recognition policy across the year.

Adjusted EBITDA is expected to remain at £4.5m. The reason it stays flat despite the revenue upgrade is the expensing of £0.6m of contract assets carried from FY25, which will broadly offset incremental gross profit this year.

• Company expects to become increasingly cash generative during FY26 as H2 FY25 working capital unwinds
• Plans to repay the £1.0m Harwood Holdco Limited loan ahead of its 31 July 2026 due date
• Strong pipeline, with multi-channel routes to market – direct sales, frameworks, tenders and funding partnerships

The frameworks and funding backstop are notable: up to £100m of project funding via Redaptive and a £40m NatWest facility for public sector deployments, plus positions on key public sector frameworks (CCS, LASER, Lexica/NHS London, NHS Commercial Solutions, Proactis/YPO). That combination supports scale and repeatability.

Key numbers at a glance

Metric	Figure	Period/Notes
Revenue	£11.0m	Q1-26
Adjusted EBITDA	£0.7m	Q1-26
Forward contracted order book	£10.7m	As at 31 March 2026
H1-26 expected revenue	Circa £24.0m	Circa £21.0m already delivered/contracted
FY25 revenue	£19.0m	Unaudited, applying new policy
FY25 Adjusted EBITDA	£2.2m	Unaudited
Cash from operations	£2.5m inflow	FY25
FY26 revenue outlook	£38.0m	Upgraded
FY26 Adjusted EBITDA outlook	£4.5m	Unchanged
Contract assets expense	£0.6m	To be expensed in FY26
Loan facility	£1.0m	Expected early repayment before 31 July 2026

Why the revenue policy change matters

Revenue recognition can feel like dry accounting, but it goes straight to the heart of trust in reported numbers. Booking less revenue upfront and more on delivery typically improves the match between sales, profit and cash. For investors, that reduces the risk of over-optimistic early revenue and makes cash generation a more reliable yardstick.

There is a short-term headline cost – FY25 revenue is £4.0m lower under the new policy – but that revenue reappears in FY26, and management is explicit that there is no cash impact and no change to contract-level profitability.

Opportunities and watch-fors

Positives

• Record H1-26 revenue run-rate with strong delivery already in the bag
• Improved cash conversion in FY25 (£2.5m inflow) and an increasingly cash generative outlook for FY26
• Conservative accounting that should enhance earnings quality and investor confidence
• Access to major public sector frameworks and dedicated funding lines supporting scale
• Expectation of a clean FY25 audit opinion following engagement with a new auditor

Risks

• Execution risk on larger, multi-site projects and frameworks, where timing can move reported revenue between periods
• FY26 EBITDA held flat as £0.6m of contract assets are expensed – margins still need to prove through the year
• Working capital discipline remains important as the business scales project delivery

My take: credibility-building step with tangible delivery

This is a confidence-boosting RNS. The accounting clean-up is sensible, the cash generation in FY25 is encouraging, and the upgraded FY26 revenue outlook to £38.0m signals growing scale. Holding FY26 Adjusted EBITDA at £4.5m despite the top-line upgrade is conservative given the £0.6m contract asset expense, which reads as prudence rather than lack of progress.

Near term, watch three things: delivery of circa £24.0m H1-26 revenue, cash flow as H2 FY25 working capital unwinds, and early repayment of the £1.0m loan. If those land as guided, eEnergy will have taken another step forward in proving an Energy-as-a-Service model that converts into cash, not just headlines.