Good Energy Group PLC on Thursday said that it has bought EcoEnergy Ltd in a deal worth up to £4 million.

Good Energy is a Wiltshire, England-based supplier of 100% renewable power and an innovator in energy services.

Ahead of its annual general meeting Thursday, Good Energy said it has performed better than expected in the first five months of the year.

It said that profit in the first half will be higher than expected driven by falling and less volatile wholesale commodity costs. However, the second half will be loss making given the ‘interplay between hedged prices of power and gas and current falling market prices.’

It added that it is fully hedged for the third quarter of the year and over 50% hedged for winter 2023 across power and gas.

Looking ahead, Good Energy said that it is ‘optimistic’ for the full year outturn. It added that its expectations for the full year remain unchanged.

The company will release interim financial results for the six-month period to June 30 on September 19.

In a separate announcement, Good Energy said it has bought Wessex EcoEnergy Ltd, a solar installation business, for an initial consideration of £2.5 million.

The company noted that there is also a deferred consideration of up to £1.5 million dependent on the achievement of certain milestones, over an 18 month transition period to December 31, 2024. These are split broadly equally across service quality, management transition, increased installation capacity and earnings run rate, it explained.

Good Energy said the acquisition represents ‘a further milestone’ in delivering its strategy to expand its capability in decentralised energy services, complementing its established energy supply business and heat pump installation capability.

For the financial year ended 31 October 2022, Wessex reported sales of £2.2 million and a net profit of £300,000.

Good Energy expects the acquisition will be marginally earnings per share accretive in the first full year of ownership and materially accretive in 2025.

Chief Executive Officer Nigel Pocklington said: ‘Good Energy is fast becoming the UK’s go-to all-in-one solar service company. We have the second largest solar generating customer base, paid out a record amount for solar power last year and have launched market leading smart export tariffs. Bringing Wessex into the business accelerates our solar and storage installations business, as the solar surge which saw installs grow 125% in 2022 continues.’

Shares in Good Energy were up 1.5% to 175.00 pence each in London on Thursday afternoon.

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