(Alliance News) - Good Energy Group PLC shares plunged on Tuesday, after it reported annual profit dropping by more than a third due to rising costs and its bottom-line readjusting from a one-off gain a year prior.

Shares in the Wiltshire, England-based renewable electricity and energy services company dropped 20% to 270.00 pence each in London on Tuesday afternoon.

Good Energy said pretax profit in 2023 fell 38% to GBP5.7 million from GBP9.2 million in 2022.

This was despite revenue rising 2.4% to GBP254.7 million from GBP248.7 million, which it said was driven by high commodity cost, and cost of sales falling 3.8% to GBP210.5 million from GBP218.8 million.

Profit fell as Good Energy failed to book a GBP7.8 million gain arising on loss of control of a subsidiary, as it did in 2022, while administrative expenses rose 32% to GBP37.2 million from GBP28.1 million.

Despite this, it raised its final dividend for 2023 by 13% to 2.25p from 2.0p in 2022. This takes the total dividend for the year to 3.25p, up 18% from 2.75p.

"Following multiple acquisitions in the heat and solar space we can now offer customers premium services across supply, export, heat pumps, solar [photovoltaic], storage and [electric vehicle] charging. Alongside this, we are now a leader in smart export for small scale solar and have trialled innovative flexibility services for businesses and consumers to shift their demand to cut their carbon further," said Chief Executive Officer Nigel Pocklington.

"Good Energy is establishing itself as the microgeneration specialist for the premium end of a rapidly growing market, offering everything a home or business needs to go greener, from a trusted brand with unparalleled expertise. Good Energy has had a strong financial performance in 2023 and we have a strong balance sheet to continue to invest in the future."

Good Energy said trading in 2024 has started in line with management expectations.

Both revenue and cost of sales are expected to be significantly lower in 2024, it said, reflecting lower wholesale costs and associated tariffs in the supply segment of the business.

Good Energy added it expects to see a return to more normalised supply segment margin levels in 2024, while it beleves its energy services segment will be a "material driver of group profitability" by 2025.

By Greg Rosenvinge, Alliance News senior reporter

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