Good Energy has reported a surge in operating profit for the first half of 2018 as it narrows in on a brand relaunch and enhanced digital offering.
Yesterday the clean energy supplier reported a 52.3% year-on-year increase in operating profit to £4.6 million for the six months ended 31 June 2018, with revenues up nearly 20% to £61.8 million for the period.
The financial performance was driven primarily by strong supply volumes triggered by weather events in the first half of the year – the so-called ‘Beast from the East’ has been cited by many suppliers as providing an unseasonable boost in late February and early March – but Good Energy has set its sights on an enhanced customer offering.
Having previously bolstered its digital teams and teased a series of investments in its capabilities, Good Energy has now disclosed that it intends to release a new customer-facing app later this year before coming to market with an enhanced digital offering next year.
Speaking to Current± earlier this summer, chief executive Juliet Davenport revealed how the company was planning to take advantage of a revolution in the supplier market, hinting that a possible ‘Energy as a Service’ subscription model could be brought to market at some point next year.
Central to this is the deployment of Self-Monitoring Analysis and Reporting Technology (SMART) and smart meters. Good is now intending to trial SMETS 2 meters supplied by Smart Meter Systems later this year before rolling them out to its customers from 2019.
Furthermore, Good revealed it has shifted its marketing expenditure to H2 2018 in anticipation of a planned brand relaunch, slated for Q3.
This, the company said, would look to target so-called ‘Eco Worriers’ – described as households with a new-found interest in climate issues, willing to do their part – as well as ‘Eco Warriors’, potentially boosting their target audience from 2.1 million homes to 5 million, around 20% of the total market.
Davenport said the “good set of results” reflected investments in its senior leadership team and the continued shift in business strategy as it moves to “align to our decentralised energy model of the future”.
“We continue to roll out digital improvements and upgrades which is beginning to receive positive feedback from our customers on their experience of Good Energy. Our customer service is getting back on track and we continue to listen to our customers to help us improve our future service. The brand and marketing campaign for all of our customers is now taking shape, and will be seen in market from this autumn.
“It's an exciting time for Good Energy, with a large addressable market of business customers and the ‘eco worrier’ householders who want to do their bit to stop climate change.
"We have some great strategic partnerships beginning to take shape and innovative technology solutions being delivered, all of which provide us with strong growth opportunities for both the short term and the longer term,” she said.