Castlefield AIM Stock Story - Good Energy

For this featured stock, Castlefield Investment Analyst David Gorman introduces Good Energy - the utility supplier specialising in the provision of carbon free electricity and gas - held in our AIM portfolios.

No doubt clients will have personal experience of the volatility of the energy supply market over the last few years, both as bill-payers and as consumers of goods and services affected by higher gas and electricity prices.

You may also have been with an energy provider which no longer exists. One of the survivors of this serious shakedown of energy providers is Good Energy, whose shares we hold in our AIM portfolios. The company meets the requirements for our positive investment theme of Resource Efficiency.

Good Energy is a utility supplier specialising in the provision of carbon free electricity and gas to UK customers, both business and residential. It is also involved in decentralized energy, e-mobility and in energy services. We have been shareholders in Good Energy for several years, as part of our commitment to supporting businesses which are at the forefront of the energy transition.

Good Energy helps over one million customers cut carbon emissions

The company continues to evolve and has undergone a transformation in the last year or so from renewable supplier to services provider. This is demonstrated by three acquisitions of installation companies across the south of England which supply and fit solar panels, energy storage and heat pumps. This means that Good Energy customers can now obtain energy but also generate electricity for their own use or to export it back into the grid and the company now claims that it helps over one million customers cut carbon emissions.

In an industry with a poor reputation for customer service, Good Energy scores well, winning several consumer awards. It also has the London Stock Exchange’s “Green Economy Mark.”

Good Energy is also a major shareholder in ZapMap, a market leading phone app which enables users to locate charging points for their electric vehicles, plan long trips and to pay for the energy they use. The app has around 330,000 monthly active users, a number which is growing all the time.

Unsurprisingly, the Good Energy share price has been volatile in the last three years, reflecting the unpredictable nature of energy markets, especially since the start of the war in Ukraine.

Nevertheless, the company is in excellent financial shape and the strength of its balance sheet combined with skill of senior management helped it emerge from a challenging period in good heart and ready for the future.

Written by David Gorman

With investment, capital is at risk.