- Locality Planning Energy (LPE) has turned a profit for the first half of the 2021 financial year after bolstering revenue by almost 30 per cent
- The Queensland-based electricity provider made $24.8 million in revenue over the half-year, which is 28.2 per cent higher than the same time in 2019
- As such, though LPE's cost of goods was higher, the result was a $200,000 net profit after tax for the half-year
- For reference, LPE made a $3.3 million net loss after tax of the same half-yearly period in 2019
- LPE grew its customer base by 33.9 per cent over the half-year, servicing 35,878 customers by the end of December 2020
- The company has reaffirmed its guidance from July 2020 of gaining 10,000 new customers over the 2021 financial year
- Shares in LPE tacked on 17.5 per cent today to close at 24 cents per share
Locality Planning Energy (LPE) has turned a profit for the first half of the 2021 financial year after bolstering revenue by almost 30 per cent.
The Australian electricity provider pulled in $24.8 million in revenue for the six months to the end of December 2020 — 28.2 per cent more than the $19.3 million over the same period in 2019.
While the company's cost of goods was higher, earnings before interest and tax improved from a $1.9 million loss in the six months to the end of 2019 to a $400,000 loss over the same period in 2020.
The result was a $200,000 net profit after tax, which is a major increase from the $3.3 million net loss after tax from the previous corresponding period.
LPE Chairman Justin Pettett said performance metrics across the entire business improved majorly over 2020 — even despite the economic headwinds brought on by COVID-19.
"Throughout the 2021 calendar year our focus will be on reducing finance costs as the financials of the company continue to improve," Justin said.
What drove the growth?
At the forefront of the strong half-yearly performance is a 33.9 per cent increase in customers compared to the prior corresponding period, with LPE servicing 35,878 customers by the end of December 2020.
Importantly, the company's embedded customer retention rate was a perfect 100 per cent over the half-year.
Locality Planning CEO Damien Glanville said while there is still a lot of work ahead of the company, the first-half results show strong top-line growth for LPE.
"LPE remains on track to achieve full-year customer growth guidance of 10,000 new customers, which was provided in early July 2020 and has not been revised," Damien said.
"The current financial year is also expected to mark a significant milestone in the company’s evolution, as benefits of improved scale are becoming evident in our financial performance," he said.
On top of the extra 10,000 customers by the end of the financial year, LPE said it's planning to keep expanding its market position in residential networks.
Based in the Sunshine Coast, Locality Planning is currently focussed on electricity provision across Queensland.
Shares in LPE tacked on 17.5 per cent today to close at 24 cents per share. The company has a $12.57 million market cap.