# EOL - Energy One



## springhill (28 July 2012)

MC - $2m
SP - 10c
Shares - Approx 20m
Options - ?
Cash - $1.95m

Energy One is Australia’s leading provider of ETRM solutions, with software product and service solutions for wholesale and retail energy businesses, including carbon and environmental certificate trading and management needs.

*Energy One Limited acquires the Web Offer System (WOS) business, Australia’s leading energy market bidding software.

*Energy One is pleased to announce that it has acquired the assets, business and existing customers of the company HARD Software Pty Ltd, including the Web Offer System (WOS) software and intellectual property.

The WOS system is Australia’s leading energy bidding software platform, enabling the bidding of multi-billion dollar electricity transactions into the National Electricity Market (NEM) on a daily basis. This is a mission-critical activity for generators in the NEM and WOS is the trusted and proven platform used by many of Australia’s largest energy companies.

The acquisition is mutually beneficial for both Energy One and for HARD Software. Energy One has a strategy of growth through targeted acquisition and HARD Software was keen to form a strategic alliance to further develop the platform and to enhance services to its major clients.

Managing Director of Energy One, Shaun Ankers commented: “We are very excited to welcome the WOS software to our product suite. Energy One prides itself on being the premier supplier of integrated, enterprise-level energy software solutions to Australian energy customers and this acquisition enhances our position as a key supplier to the major energy businesses, many of whom are ASX200 companies”.

Dr Harley Mackenzie, Managing Director of HARD Software, said: “We have developed WOS over a number of years to become the market’s leading electricity bidding solution. We were keen to find a purchaser who would take the software solution to its next logical step, whilst maintaining the high levels of support with which our customers are familiar. Energy One’s suite of energy related software products and services, plus their commitment to the Australian market, made them an ideal choice for the future growth and development of the software”.

Dr Mackenzie will remain closely connected with the newly acquired business on an ongoing basis. “We are pleased that Harley will help to provide unbroken support for existing WOS customers and will help us to develop and innovate new products to meet the needs of our customers in a carbon-constrained economy”, said Mr Ankers.

The acquisition is earnings accretive and is funded via cash and future earnings.


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## Dona Ferentes (24 December 2019)

Not a lot of comment on EOL. Up 20% today, on news the company has just _"signed a share purchase agreement to acquire 100% of eZ-nergy, a French company selling Software as a Service to utility customers across Europe.

eZ-nergy is a well-established profitable company and on completion of the transaction will be earnings accretive. The total purchase price of €4million will be funded using bank debt and equity. Equity (equal to €500k) will be issued to the vendors and consideration is being given to a small capital raise depending on debt sizing."
_
This will probably make it easier to move into Europe, seeing the UK acquisition may not achieve that (Brexit??). As outlined in Oct 2019, .._.looking forward, the domestic energy market will be undergoing significant change in the next 2-3 years, as regulatory adjustments to market structure (such as Australia’s cutting edge adoption of the 5-minute market) become reality. This requires front ended investment (which has already commenced) to allow customers to meet these but will create future opportunities as customers with legacy or less flexible product suites struggle to comply. _

_The opportunities in Europe will expand as our sales focus in the UK and exploration of European niches flow through to revenues, and existing UK customers are exposed to the capability of products like Energy Flow_..


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## Dona Ferentes (15 January 2020)

I wanted to put this in the FY 2020 comp, but it didn't qualify as turnover is too low. I hold some EOL but couldn't capitalise on the recent drop (high to low 2's) and pick up some more, because of limited stock availability and an annoying bot.

Market cap is still only $35million. EOL has been around for a decade but only really hitting its straps in the last few years. The Company offers SaaS and automation solutions for the trading and scheduling of physical and contract bulk energy and derivatives (including electricity, gas, liquid commodities and environmental and carbon trading).

With some 50% of Australia’s bulk energy traded using its systems, it might be thought that it is a niche player in a small sector, a ticket clipper but regulated, and without too much growth. This is reflecting in having a low PE (around 15), paying out unfranked dividends in last 4 years (1c, 1c, 2c, 3c). However, a few things are in play.
*
1. Five Minute Settlement?*
In November 2017, the Australian Energy Market Commission (AEMC), the rule-maker for the National Electricity Market, decided 5 Minute Settlement should be implemented in the NEM and come into effect on 1 July 2021. They tasked AEMO with the role of implementing changes to market procedures and systems necessary to perform 5 Minute settlement, as well as obligations on participants to adopt the changes.
https://www.aemc.gov.au/news-centre/media-releases/delivering-grid-future
This requires front ended investment (which EOL has already commenced) to allow customers to meet these changes but will create future opportunities as customers with legacy or less flexible product suites struggle to comply.

*2. Changing nature of the grid, suppliers and consumers*
Baseload is no longer the only (and cumbersome) option. Utilising gas fired stations, hydro, plus ever-increasing solar and wind, both large scale and domestic, demand can be managed from many sources. Batteries will probably play an increasing role in this management; the push to renewables and phasing out coal, and eventually gas, will mean a continual juggle of supply and demand.
https://www.aemc.gov.au/news-centre/media-releases/ebay-ing-australias-energy-market

*3. Growth through both organic expansion and targeted acquisitions.*
Contigo is a vendor of energy trading systems in the UK and Europe. Based in the UK, it is a similar size to EOL, & was acquired in late 2018. Then in Dec 2019, the acquisition of Paris-based eZ-nergy was announced. The software developed by eZ-nergy is written in the same language as Contigo’s software and the two product-sets are highly complementary. Energy One is now looking to immediately extend its geographic presence in Europe, already having 250 customers in 18 countries. Apart from combining back office, sales and marketing resources but also technical resources, the company has the ability to provide 24 hour global support.

The timing of these transactions means costs will be booked this FY but the benefits not show up till next year. The UK is a market 3x the Australian one, and continental Europe some 10-12 times. Meantime, directors are buying.


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## galumay (15 January 2020)

I had quite a close look at this one when it came across my bow recently. In the end the debt ratio was the thing that stopped me looking any deeper as I have a hard rule on debt to equity ratios. My other concern that made it a bit problematic was the lack of free cash flow at this stage.


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## sptrawler (15 January 2020)

Dona Ferentes said:


> I wanted to put this in the FY 2020 comp, but it didn't qualify as turnover is too low. I hold some EOL but couldn't capitalise on the recent drop (high to low 2's) and pick up some more, because of limited stock availability and an annoying bot.
> 
> Market cap is still only $35million. EOL has been around for a decade but only really hitting its straps in the last few years. The Company offers SaaS and automation solutions for the trading and scheduling of physical and contract bulk energy and derivatives (including electricity, gas, liquid commodities and environmental and carbon trading).
> 
> ...



Great write up Dona, I will have a look tomorrow.


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## Dona Ferentes (15 January 2020)

galumay said:


> ..the debt ratio was the thing that stopped me looking any deeper as I have a hard rule on debt to equity ratios. My other concern ... was the lack of free cash flow at this stage.



noted about the debt. The attraction, if they can incorporate the new acquisitions (and we're only talking small numbers of employees, offices), is maintaining margins and integrating operations, stripping out costs. It's a punt, but in a time of transformation and growth opportunity.


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## galumay (16 January 2020)

Agree, there is a potential catalyst with the acquisitions and growth tipping it into a FCF +ve position.

The debt thing is just one of my defensive rules in times where the market is frothy & strongly overvalued - in the paraphrased words of Howard Marks, in times like these its prudent to proceed with caution!


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## Dona Ferentes (4 February 2020)

sptrawler said:


> ...I will have a look tomorrow.




tomorrow now three weeks ago. SP then was $2.80 and it had run hard to that point, mainly on the eZnergy news. Since then, and unlike previous times when there may not have been any trades for days, it would be the case that volume has lifted, buyers have outnumbered sellers (as disclosed on the boards), bots have had a hard time of it, and most sell offers have been snapped up, with a daily dribble seeing higher prices by most days' ends. Now* $3.59*.


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## sptrawler (5 February 2020)

Dona Ferentes said:


> tomorrow now three weeks ago. SP then was $2.80 and it had run hard to that point, mainly on the eZnergy news. Since then, and unlike previous times when there may not have been any trades for days, it would be the case that volume has lifted, buyers have outnumbered sellers (as disclosed on the boards), bots have had a hard time of it, and most sell offers have been snapped up, with a daily dribble seeing higher prices by most days' ends. Now* $3.59*.



Jeez I forgot, grandkids just gone back to school monday, story of my life. 
Still I'm a bit of a Jonah, so you are probably lucky I didn't buy in.
The EZ-Nergy acquisition looks promising, I will see if there is an opportunity, but if it turns pear shaped don't blame me.
I bought PPS on a recommendation here and it has done nothing since.


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## Dona Ferentes (21 February 2020)

financial performance of the Group, for the half, was as follows:
· Group operating revenue was $9.4M (total revenue and other income: $9.7M)
· EBITDA of $2.3M, which is 24% of total revenue.
· NPBT was $0.767M.
· NPAT of $0.41M

The immediate observation is that while both revenue and EBITDA are up on the prior corresponding period, the Net Profit Before Tax is flat. As previously foreshadowed, this is a direct result of the considerable investment being made in our products to prepare for the new 5-minute settlement market, and other key initiatives (such as platform integration), in Australia.

It is worth noting that the business is neither seasonal nor symmetrical (from one half to the next) with performance in each half being reflective of the ebb-and-flow of project work during any given 12-month period.


> We are pleased with the continual improvement in financial performance and steady, synergistic growth in customer numbers and revenues without loosing focus on continued, reliable profitability, and ongoing investment in the development and enhancement of products.





> We now hold strong positions in the physical and contract trading software for electricity and gas and have an increasing presence in Europe (shortly to become stronger via eZ-nergy). We also remain committed to building on our existing product range, reputation and customer base to make EOL a one-stop shop for energy trading software and services in our target markets here and abroad.





> With this in mind, the Board remains confident in it’s existing guidance of a full-year FY20 operating EBITDA result (excluding one-acquisition costs and lease accounting changes) of $4.5M.



- market liked it. Buying up to $3.60


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## Dona Ferentes (3 March 2020)

here I go again (here it goes again)!

with recent volatility, a stock like EOL that has wide Buy/ Sell spreads, low turnover (some days without any matching) can bounce around dramatically. And it did, with the recent COVID-19 conniptions.

With 21.3 million shares on issue and a M/Cap above $60mill, there is even a likelihood of inclusion the All Ords (an index based entirely on market capitalisation and with no filter for liquidity, & rebalanced once a year, on the third Friday of March). Coming soon??
https://www.marketindex.com.au/all-ordinaries


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## Dona Ferentes (20 April 2020)

Raise $4.4mill from sophisticated investor (Topline Capital Partners) and Directors @ $2.20 a share to finalise the eZnrgy acquisition.

No scraps off the table for retail, though


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## Dona Ferentes (28 April 2020)

Dona Ferentes said:


> Raise $4.4mill from sophisticated investor (Topline Capital Partners) and Directors @ $2.20 a share to finalise the eZnrgy acquisition.
> 
> No scraps off the table for retail, though



but, oh yes, some available through a SPP. Formula looks vague, though







> opportunity to apply for up to A$11,000 of new Shares without incurring brokerage or transaction costs. Participation in the SPP is optional. The issue price of the new Shares under the SPP is fixed at* $2.20 per share*.





> The Company reserves the right (in its absolute discretion) to scale-back applications if demand exceeds A$750,000. If the Company chooses to scale back applications it will do so on a pro-rata basis (determined either by the number of shareholders participating, and/or the size of the Eligible Shareholder’s shareholding at the Record Date, and/or the number of shares an Eligible Shareholder has applied for under the SPP).


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## Dona Ferentes (29 May 2020)

EOL originally announced a targeted cap of $750,000 for the SPP, but has increased that target to $1,815,000, to acknowledge the oversubscription for the SPP. As such SPP applications will not be scaled back. 

The SPP complements the Company’s recently announced private placement to Topline Capital Partners LP, two directors and an officer of the company raising $4.4 million.
. 
At $2.20 a share, there's a nice upkick here for participants. Currently Buy $3.20 ~ Sell $3.70. I suppose that will drift down a bit with profit taking

_(HOLD, took part)_


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## Dona Ferentes (30 June 2020)

hitting new highs. Buyer(s) nibbling away, selling is a reluctant drip feed. Small volumes.






(_hold, added at SPP)_


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## Dona Ferentes (21 August 2020)

Dona Ferentes said:


> hitting new highs. Buyer(s) nibbling away, selling is a reluctant drip feed. Small volumes.



new, new high. plus everything as per above. Reporting next week?






(_hold; added at SPP, which now doubled from $2.20.)_


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## Dona Ferentes (25 August 2020)

EOL announcing another year of profitable growth for the Group, with revenues up 28% and net profit after tax up 26% on the prior year. 

_To date, the business has not been materially affected by COVID-19.  Our customers (for the most part) are large utility companies and infrastructure providers operating in the gas and electricity markets.  The Group provides its Software-as-a-Service to these entities, where it is generally considered mission-critical in order to ensure daily operations are maintained. In addition, our staff are highly skilled IT professionals who routinely install software remotely from customers premises.  To this end all our employees can also work remotely from home. The robustness of selling SaaS to blue-chip customers has certainly been borne out during the recent uncertain environment. _

_Comparative EBITDA, net of adjustments such as one-off acquisition costs and lease accounting changes, was $4.7M, up 23% on FY19 while EBITDA was $5.3M, up 38% on the prior year. These results include contributions from U.K-based Contigo Software (Contigo) for a full 12 months and French based eZ-nergy (eZ), contributing 1 month.  Group EBITDA margin for FY20 was 26% (FY 19: 24%). _

_Group recurring revenues were 77% of operating revenue. These recurring revenues arise from SaaS fees, which are generally renewed automatically on an annual basis.  The balance of operating revenue arises from one-off project work such as ‘time and materials’ fees for installation, bespoke enhancements or consulting. _

_In FY20, 44% of our revenue is now being generated in UK/Europe. The Group now has customers in 17 countries and is well positioned as a global-reach, independent player in the energy trading software market. The UK business has grown beyond our original expectations, producing revenue of $8.7M and EBITDA of $1.6M (upon acquisition, we noted ‘first full year’ forecasts of $8.5M and $1.25M respectively). This result indicates not only the quality of the business but also the benefits gained from integration. _

_Net assets increased by $9.7M during the year with closing cash of $3.53M. Notably, cash is up from $2.2M at June 19. During the year, we successfully raised equity capital via two raisings (a placement for $4.4M and an oversubscribed SPP for $1.815M). The funds being used to partially fund the eZ acquisition and for working capital. Total debt was reduced from $6.5M to $0.6M with $4.45M available for redraw_.

Dividend of 3.5c unfranked. 

OUTLOOK : _We expect that our business will remain materially unaffected by COVID-19 in the coming year, but we are aware that we may see some smaller customers exit the market and/or mergers between larger players. For this reason, we are expecting a steady year ahead in terms of organic growth in customer numbers. In addition to seeking this organic growth, the Group continues to actively seek strategic growth through prudent acquisitions and other strategic relationships related to highly complementary businesses. _

_In keeping with past practice, the Group wishes to provide shareholders with an indication of the shape of the business going forward, now that Contigo has been successfully integrated. As such, our expectations are that for FY21, the Group is likely to achieve revenues in the order of $25M and EBITDA of approximately $6.5M_.


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## ben267 (26 August 2020)

Thanks for all the udpates. All-in-all it looks like a great company, guidance for FY 21 looks great too, but one thing I couldn't completely get behind. They have an employee benefits expense that is almost 50% of the revenues. When going into the footnotes, most of it goes into other employee benefits. Anyone knows what that is? Is this shares issued to management or something else?

Thanks!


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## Dona Ferentes (1 December 2020)

ben267 said:


> Thanks for all the udpates. All-in-all it looks like a great company, guidance for FY 21 looks great too, but one thing I couldn't completely get behind. They have an employee benefits expense that is almost 50% of the revenues. When going into the footnotes, most of it goes into other employee benefits. Anyone knows what that is? Is this shares issued to management or something else?



the $10mill is $8mill salaries (incl $441K  R&D), then a mill each on Super + Employee Share Plan (*includes a share option arrangement and an employee share scheme. The bonus element over the exercise price of the employee services rendered in exchange for the grant of shares and options is recognised as an expense in the income statement. Fair value of the options at the grant date is expensed over the vesting period...) ..
- generous, but a small company needing to attract talent?

Very thinly traded, a Director got a few away the other day. Downside could be more selling, and/ or the double top? and 
/or the gap needing to be filled?
Six month/ daily basis:


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## Dona Ferentes (14 December 2020)

Updated for 6 months to end-Dec 2020:

_Previous guidance for full FY21 was Revenue of $25M and EBITDA of $6.5M. The Company now expects revenues for H1 FY21 to be in the order of $13.7M and EBITDA of around $4.1M. _
_ 
The improved result stems from strong (previously announced) project implementations during the half.  Customer accounts also continue to grow, with eZ-nergy winning four new accounts in November alone, amounting to 12 new accounts for 2020 thus far. Contigo has also won new accounts and sold additional enhancements to existing customers and successfully completed milestones on major customer projects, providing us with further evidence for our European growth strategy. Australia continues to make progress rolling out the 5MS solutions for the upcoming market change. 

While not providing guidance for Net Profit After Tax (NPAT) for the half, the Company expects there to be a pronounced improvement in NPAT (compared to the prior corresponding period) given the beneficial effects of the increased profits and the Company’s Australian and overseas tax treatments (see note 4 of FY20 Annual report).  
_
_We have previously noted that the business is neither seasonal, nor symmetrical (from half-to-half) and therefore it is not appropriate to assume that the H1 FY21 result will be replicated in the second half of the FY21 year. Nonetheless, it is expected that the full year result will exceed the prior guidance. _

(Happy to Hold)


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## Dona Ferentes (22 December 2020)

sometimes I go for 'free carry' but in this instance I will continue to hold sll my EOL. There has been steady buying with only limited release onto the Sell side. And it has been that way for a while, at the SP moved through $5 and into the 6's with little retracement


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## Dona Ferentes (19 February 2021)

· Group revenue (and other income) of $14.0M up 45%
· EBITDA of $4.17M up 78%
· NPBT was $2.68M up 250%
· NPAT of $2.0M up 398%

We are also pleased to note basic earnings per share of 7.85 cents (diluted: 7.73 cps), up 341% from 1.78 cps (Diluted 1.76 cps) in the prior comparative period.

The first half of FY21 has been very strong, and we expect the second half to be slightly reduced in comparison



> _We now hold strong positions in the physical and contract trading software for electricity and gas and have an increasing presence in Europe. We also remain committed to building on our existing product range, reputation and customer base to make EOL a *one-stop shop* for energy trading software and services in our target markets here and abroad._





> _With this in mind, the Board expects that the full-year FY21 will produce a result in the order of Revenue $27.5M and EBITDA (excluding any one-offs) of $8.0M.  NPAT is expected to be in the order of $3.7M_




(HOLD) (_no dividend this Half_)


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## Dona Ferentes (19 February 2021)

*Europe is a new growth engine*

_• We have a strong market share in Australia, Europe gives us another area for strong growth  
• 53% of group revenue is now being generated in Europe 
• Further synergies available via product and solution integration 
• EOL still has less than 5% European market share 
• Focus is on integrating eZ-nergy 
• Scope exists for another complementary European acquisition 
• US expansion being considered in the next 2-3 years should the right opportunity arise_

Sticky customer base
_• Churn much lower in the first half (e.g. AU lost only 1 customer, market exit) 
• Energy One looks to sell more than one product from the range to customers. We currently average 1.2 products per customer with 4 products the highest_


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## barney (19 February 2021)

Dona Ferentes said:


> · Group revenue (and other income) of $14.0M up 45%
> · EBITDA of $4.17M up 78%
> · NPBT was $2.68M up 250%
> · NPAT of $2.0M up 398%
> ...




Good results!!

Nice Chart!!

Amazing 3 years for EOL  (DNH unfortunately )


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## Dona Ferentes (23 August 2021)

Announcing another year of profitable growth for the Group, with Revenues up 35% on FY20 and net profit after tax (NPAT) up 125% on the prior year.  

While headquartered in Australia, the Energy One Group has built a presence in Europe with Contigo Software in the UK and more recently in France with the acquisition of eZnergy in France.  

_Our products and solutions involve enterprise software for energy trading of bulk wholesale energy (typically electricity and gas). Consequently, the software is inherently mission critical to many customers and we therefore experience low churn. As a result, we have found that acquisitions are a reliable method to acquire new customers and enhance organic revenue growth from the cross selling of modules and services._

This strategy has proven successful with some 54% of our FY revenue now being generated in UK/Europe.  All of it profitable.  The Group has customers in 17 countries and is well positioned as an independent global provider of energy trading software.

A_nd a 6c unf dividend


*OUTLOOK*
With a strong balance sheet and solid operating cash flows the Group will continue to actively seek strategic growth through prudent acquisitions and strategic relationships with highly complementary businesses.  

Additionally, the Company intends to invest in further sales, technical and managerial resources, in order to capitalize on our European opportunities and reflect on the Group increasing global footprint. We will also continue our process of management structure refinement to increase and/or deploy resources where best needed across the group.  

 The company currently has a number of projects in the pipeline and until the outcome and timing of these becomes clearer we will maintain FY21 guidance for the year ahead until we have a greater degree of certainty regarding our performance and growth prospects for FY22. _


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## Dona Ferentes (25 August 2021)

_from today's Investor Briefing and Information Session:_

Rapidly changing energy markets are presenting new growth opportunities
• The energy market is fragmenting. In the future there will be fewer large generation units and more distributed energy resources. 
• For example rather than a single 2,500MW thermal coal generator there might be 5 x 200MW solar farms plus 5 x 200MW wind farms combined with 5 x 200MW batteries. This fragmentation is termed Distributed Energy Resources or DER. 

_*Dispatching distributed energy resources into electricity networks can be more difficult*_
• The growing share of green distributed power generation increases the complexity in both the European and Australian energy markets 
• Given the smaller size of Distributed Energy Resources it is often uneconomical for operators to man 24/7 control rooms to dispatch energy. Furthermore, the two sided market (users also nominate) is active in Europe and coming to Australia 
• While eZnergy offers the software to facilitate market operations it also offers a bureau service to submit market notices on behalf of customers. 
• This is done based on an agreed set of operational/commercial parameters. (i.e. EOL do not take energy market risk)

*Energy One will launch a new product offering to address this rapidly growing market by selling software with a service*
• We intend expanding the types of services currently provided by eZnergy. 
• Aspiring to a global 24/7 operations function to complement our software 
• Our automation software (enFlow) means EOL is well placed to automate these manual operations on behalf of customers 
• Goal is to expand this offering not only in Europe but also introduce it to Australia

Guidance for FY22
_• Focus will be on consolidating a strong FY21 and leveraging our technologies and eZ capability in the dispatch services space. 
• We will invest in additional managerial resources in Europe to facilitate additional growth. 
• Group revenue consists of 80% recurring revenue and 20% project revenue. 
• As we enter the second year of Covid19 travel restrictions are making it more difficult to close the large new project work. 
• The company currently has a number of projects in the pipeline. Until we have greater certainty regarding our growth prospects for FY22 we expect revenue and earnings to be similar to FY21. 
• Pleasingly we are already beginning to see the easing of travel restrictions in Europe. 
• With a strong balance sheet and cash flow we continue to seek strategic acquisition opportunities_


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## Dona Ferentes (1 October 2021)

_and another purchase_

Established in 2008, the EGSSIS business has been developed by its Founders to be a significant provider of energy scheduling and nomination software and associated 24/7 trading services to European gas and power market participants.

Egssis will join eZ-nergy (and Contigo) as a major software vendor in the European Energy Trading and Risk Management markets. In particular, eZ and Egssis are highly complementary, offering modern SaaS products and services to customers, while sharing a similar culture of being highly responsive to customers and providing exceptional levels of customer service. Coupled with Contigo’s contracts and derivatives trading software, the transaction enhances our pan-European trading capability in both physical and financial markets. 

As well as being complementary, the Egssis acquisition offers us strategic opportunities: 
 Even broader European reach - eZ,  Egssis and Contigo now serve markets across 17 European countries    
 Enhanced ability to win customers - The Energy One group now comprises 2 of the 3 vendors in Europe who offer software plus 24/7 operational (bureau) services. Together, eZ and Egssis provide 24/7 operational services for 29 customers and software to over 100 customers.  The increased capability from merging eZ and Egssis will provide strong alternatives to the remaining (incumbent) vendor those customers using in-house solutions 
 Building capability for a global 24/7 energy services business. Egssis enhances our capability to establish global 24/7 operations (bureau) services and potentially establish an Australian services business to complement Europe



> “_Egssis is a great business, providing high quality software and services to the European energy trading market and we are very excited to welcome them into the family. Our European businesses comprise a strong and highly-capable team for pan-European energy trading solutions, assisting customers operating in Europe’s fast paced 24/7 wholesale energy markets. I’d like to welcome Tom Dufraing, MD of Egssis to our European leadership team alongside Johann Zamboni of eZ-nergy and headed up by Simon Wheeler, our European CEO_”; said Shaun Ankers, Group CEO.




Energy One Limited purchased Egssis for a total outlay of €4,250,000 (approx. A$6.8M at the current exchange rate), to be paid in cash and equity, in instalments over an 18-month period. The initial payment comprises €2,500,000 cash and €750,000 in EOL shares. The acquisition will be *funded from the existing cash reserves and debt facilities*.


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## Dona Ferentes (31 January 2022)

The market is responding well to EOL's announced acquisition of a SA based company CQ Energy, which offers bidding and dispatch and control room services to wind farms, solar farms, industrial gas customers and other clients, as well as consulting and broking.



> CQ Energy is the leading provider of operational energy services to the Australian gas and electricity sector. They provide similar 24x7 operational services as our European businesses eZ-nergy and Egssis, as well as running a sophisticated risk transfer/broking business.




Energy One Limited purchased CQ Energy for a total outlay of $36,000,000 to be paid in cash and equity, over a 12-month period. The initial payment comprises $26,400,000 cash and $6,000,000 in EOL shares. The acquisition will be funded using a combination of debt and equity (issued to the founders). The later cash instalment will be funded internally from cash flow.



> Energy markets across the globe are decarbonizing and de-centralising.  As large thermal power stations  become a thing of the past numerous new smaller renewable generation assets will fill the gap. Given the smaller size of distributed energy generation assets it is often uneconomical to operate 24/7 control rooms to dispatch/schedule energy. CQ energy provide bidding and dispatch services as well as control room services.




EOL is talking about an addressable market much larger, _mainly through smaller decentralised generation. This segment has shown an increase use of outsourced services to compliment their software. _


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## Dona Ferentes (2 February 2022)

EOL has pushed higher , and is some 10% higher in the last few days

_With the energy market changing so quickly we have seen the emergence of a new rapidly growing segment, the provision of energy services. Having observed the emergence of this new market in both Europe and Australia we have concluded it is a highly desirable segment and one we are ideally suited for given our world class software. 

Over the last five years a number of acquisitions have been integrated into the Energy One group. Each operating under their own brand. Going forward all business within the group will now operate under the Energy One brand._

_Energy One *Software*_
_Energy One *Services*_


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## Dona Ferentes (5 February 2022)

good to see Regal Funds Mgmt come onboard, now holding 1.412million shares.  The disclosures show purchases since Oct 2021 (no sales) and, with a $3million or 500K share purchase recently, it has tipped over to 5.32% holding.

I have been a long term holder but find it illiquid, the bots nibble away but sometimes the revealed spread can be 10% ((yesterday was B: 6.26 and S: 6.72 for most of the day, until 145 + 1 went through at 6.69 !)


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## Dona Ferentes (10 February 2022)

Dona Ferentes said:


> EOL has pushed higher , and is some 10% higher in the last few days



and another 10%. Took out $7.00 and nibbling at $7.16 now .... an _ATH_


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## sptrawler (10 February 2022)

I've been waiting for a correction, starting to look like it ain't going to happen with this one.


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## Dona Ferentes (10 February 2022)

sptrawler said:


> I've been waiting for a correction, starting to look like it ain't going to happen with this one.



i wanted to top up when it was briefly below $6, but there was no volume disclosed and, as noted, the spread was ridiculous at times.

now B 7.45; S 7.55


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## sptrawler (10 February 2022)

Dona Ferentes said:


> i wanted to top up when it was briefly below $6, but there was no volume disclosed and, as noted, the spread was ridiculous at times.
> 
> now B 7.45; S 7.55



I'm ever hopeful, there has to be an orchestrated correction soon, hopefully this rally is the cat bouncing. 
It was a toss up between EOL and WBC recently when EOL dipped, WBC won on the div side, time will tell.


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## Dona Ferentes (11 April 2022)

sptrawler said:


> I've been waiting for a correction, starting to look like it ain't going to happen with this one.



_There has been a lack of conviction in the SP; holding around mid $6's but any attempt to go higher gets slapped down. And still the low volume, with bots nibbling away on a 50c+ range of Buy/ Sell offers. Not conduicive to building a parcel. 

And now it would seem the growth by acquisition plans are still in place, and likely to be in Europe?_

_EOL Formalises Finance Facility Agreement to Support  CQ Energy (Australia) Acquisition _


> Energy One Limited (ASX:EOL) today announces it has finalised a formal three-year debt finance agreement with National Australia Bank Limited (NAB) providing *$30million *of acquisition funding.


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## Dona Ferentes (6 June 2022)

AGM today

_In Europe, E-world Energy & Water is being held in June for the first time in a number of years. E-world is the meeting place for the energy industry in Europe and offers EOL the opportunity to showcase our business and capabilities as one. E-world was previously a key driver of leads and sales and as such is a greatly anticipated event. In advance of the E-world show, the company has seen an uptick in interest from customers for market solutions. Our European business continues to sign customers and entertain opportunities for larger projects. All of this encourages our thinking that FY23 will see a market led resurgence, post-Covid....._

_....The 2022 financial year has seen the business continue its profitable operation with performance on a normalised basis within the ranges communicated to the market. Reaching completion of the CQ acquisition took a month longer than expected, as a result, we now anticipate revenue for FY22 circa $AUD 31.4m (FY21 27.9) and EBITDA circa $AUD 9.2m (FY21 8.1)_. 

... Actually can now get to meet cistomers, and the acquired companies, after two years !!


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## Dona Ferentes (15 June 2022)

must be a bit hard to make money when there is *no market*



> The Australian Energy Market Operator has announced the electricity market across every state except Western Australia was suspended at 2:05pm AEST. In a market notice issued this afternoon, AEMO declared the spot market in NSW, Queensland, South Australia, Tasmania and Victoria suspended from trading as it was “impossible to operate the spot market in accordance with the rules”.






> “Dispatch prices for the first one or two dispatch intervals of this market suspension will be reviewed manually.”




EOL operates Energy Trading and Risk Management (ETRM) software systems and services. A Hybrid business model of recurring (SaaS) revenue (80%) and project T&M (20%) 
 • Solutions for the trading of energy derivatives and the scheduling of physical energy (including green power, electricity, gas, liquid commodities and environmental and carbon trading).


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## peter2 (8 July 2022)

The price of *EOL* has bounced nicely off the recent low.
I'm unaware if *EOL* was effected by the recent suspension of Aust East Coast energy market. There were no comments from *EOL*, so I suspect not.  *EOL* has seemed to me to be a great buy the dip type of stock. Volatility in the energy markets will continue to remain high thanks to the Russian invasion of Ukraine and the possible cutting off of gas supplies to the EU. If their software can find the bargains when they appear in the energy markets and transact automatically I imagine this should be valuable. I am unaware of how their software functions.


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## Dona Ferentes (22 August 2022)

FY22 was  another year of profit and growth, with

_revenues up 16% and underlying EBITDA growing by 15% over FY21 (net of one-off costs)._
_recurring revenues continuing to grow both organically and via acquisition with recurring revenue growth of 29% over the prior year (to be 92% of total revenue) and Annualised Recurring Revenue (a forward-looking measure) growing by 24%. _
_organic recurring revenue grew by 11%.  Recurring revenues for the business arise from evergreen contracts with customers for licence fees, software support and hosting fees and recurring operational services such as market scheduling, nominating, monitoring etc. _
_Since 2012, the company has consistently grown recurring revenues achieving a CAGR of 35% per year.  _
Unfranked dividend of 6c per share announced.

*Investing for growth *
_"Over the next 2 years, we will invest in building our global capability in the software and services business, specifically related to the *follow-the-sun, 24/7 *market operations services. As such we intend to invest $1.5M-$2M in each of the next two financial years to achieve this goal. 

"Building out this global capability will require investment in best-practice cybersecurity frameworks; legal, contractual and technical standards; technical (systems and software) and key global personnel and expertise to shape our capability and become the leading international supplier of these types of services. To our knowledge, we have an early or first-mover advantage globally, as no other vendor offers a similar global service.  Given the strength of the existing business this investment will be funded from internally generated cash flows. _

"... _investing for future growth will obviously come at the expense of short-term performance. As such, guidance for FY23 is for revenue of approximately $44.0mil and EBITDA of approximately $12.5mil. This represents an increase in revenue of 37% and EBITDA of 33% over FY22 even after the additional investment in developing a global platform."

(Hold)_


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## Dona Ferentes (22 August 2022)

_Energy Market disruption will help Energy One in the long term  _

_"Given the recent (and well publicised) disruptions in energy markets both in Australia and Europe a common question I get asked relates to whether this turbulence will have an impact on EOL’s business, particularly via its effects on junior energy retailers.  

We do not have any material exposure to the small retailers currently experiencing financial difficulties or believe that we will. Each year, as we report, we lose a few smaller customers (usually new-entrant retailers) to market exits and corporate activity which is to be expected.  
However, we have a very diverse customer base that includes not only retailers, but also generators, traders, infrastructure providers, investment banks etc. It’s worth noting the larger, vertically integrated retailers are better placed to manage wholesale market volatility as parts of their portfolio benefit from the increased prices. We witnessed similar market turmoil in the U.K. a couple of years ago, without material impact on our business. 

It’s worth remembering that for every customer paying these high energy prices, another customer is receiving them on the basis they are producing the energy.  Indeed, many of our clients are benefiting of our software, given that trading and scheduling of energy in real time is becoming increasingly important with markets becoming more volatile. To this end, as energy markets become more complex and volatile the need for sophisticated software to help manage portfolio positions will only increase. _
_ 
In addition, given the high wholesale prices and renewed focus on energy policy, we see an acceleration in the roll out of additional renewable generation. In that sense, the longer-term effects of these energy crises will act as a further tail wind._


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## Dona Ferentes (15 September 2022)

Trading Halt pending an announcement to the ASX in relation to an equity *capital raising*

_EOL has been every which way except up, for the last few months_


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## Dona Ferentes (15 September 2022)

*The Capital Raising *will be comprised of two components being a non-underwritten institutional placement to eligible sophisticated and professional investors, which will be followed by a non-renounceable non-accelerated *1 for 62 *partially underwritten rights issue .

Placement is intended to raise up to $5.5m whilst the Rights Issue will raise up to a further approximately A$2.0m at the same offer price of *$4.50 *per share.


> Funds raised under the Capital Raising will be used to settle deferred consideration amounts payable to the sellers of Egssis NV and CQ Energy Group and fund transaction costs, with remaining amounts being used as working capital to provide balance sheet support.



.... _pretty derisory scraps off the table, for existing shareholders_


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## Dona Ferentes (20 November 2022)

I'll keep posting on EOL as I am a shareholder. As a LT exposure (first buy in 2019, and have put in $18K, average buy-in $2.40) I'm happy to hold, but there is a bit of a 'consolidation' occurring.

The recent placement and rights @ $4.50 seems to have been well priced. But market doesn't think taht short-term there's much more in it?

One matter hanging over EOL shareprice could be the recent resignation of a Director, one who has been there since the early days, 2007, and hence likely picked up a significant holding (has 1.4 million shares @ last notice). A notice at 31 Oct said that although this holding has increased, it is no longer a Significant Holding (IE. slipped below 5%). And now, no longer a Director, there is no need to disclose sales. So there 'could be' an overhang of $6million+ EOL shares if all are sold?






(the Placement in Sept at $4.50 was upsized from $5.5 million to $7.5 million _in response to strong demand from new and existing institutional investors  _.... maybe some 'approaches' will be made for some off-market action to the same cohort)


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