eEnergy Group is launching an emergency fundraising effort to refinance its operations, clear overdue creditor obligations, and restore stability after a difficult summer. The firm specializes in designing and installing solar photovoltaic systems, LED lighting solutions, battery storage units, and electric vehicle chargers for both public and commercial customers. Current financial difficulties stem primarily from payment delays tied to its Mace program.
The board has approved a share placement to raise at least £4 million in gross proceeds, supplemented by a retail offering that lets existing shareholders participate. This decision follows a series of setbacks, including a 66% decline in the company’s share price this year and a revised financial outlook issued by interim CEO John Gahan, who was later confirmed as permanent CEO.
Founded in 2018, eEnergy had originally forecast full-year revenue of £38 million and adjusted EBITDA of £4.5 million. However, Gahan adjusted those projections downward to £32 million in revenue and £1.7 million in adjusted EBITDA after reassessing the sales pipeline. To address the shortfall, the company implemented aggressive cost-cutting measures, reducing annual operating expenses from £6.3 million to approximately £2 million.
The payment delays originate from the Mace initiative, where 65 sites are now active but payments remain outstanding. The company anticipates recovering £1.9 million from solar and battery projects within six months, while the remaining £900,000 from EV charger and LED installations is expected in two months. Despite these forecasts, the outstanding £2.8 million shortfall has severely impacted cash flow, prompting the company to negotiate loan extensions and pursue new financing options.
Earlier this month, eEnergy secured a £500,000 loan from shareholder Nigel Burton, along with an extended repayment period on an existing £500,000 loan. The company has also activated a Capital Access Window, a trading suspension under AIM rules intended to facilitate fundraising by assessing investor interest.
Despite serving high-profile clients, including UK schools, and marketing its ability to reduce energy costs by up to 70% without requiring upfront payments, eEnergy now faces liquidity challenges. The fundraising effort comes as eEnergy’s market capitalization stands at just £5.8 million, signaling investor concerns over its financial position. The company’s next steps depend on whether the share placement achieves its target and whether outstanding payments from the Mace program are resolved within the projected timelines.