The company achieved a 59.88% year-over-year revenue growth, yet this is offset by a 22.31% gross margin that fails to cover operating expenses, resulting in a negative -2.43% operating margin.
| Metric | Jun'24 | Jun'23 | Jun'22 | Jun'21 |
|---|
| Sales/Revenue | 9.6M | 6.01M | 4.96M | 10.28M |
| Revenue Growth % | 59.88% | 21.09% | -51.76% | - |
| Cost of Goods Sold | 7.46M | 4.92M | 3.88M | 6.76M |
| COGS % of Revenue | 77.69% | 81.93% | 78.24% | 65.79% |
| Gross Profit | 2.14M | 1.08M | 1.08M | 3.52M |
| Gross Margin % | 22.31% | 18.07% | 21.76% | 34.21% |
| Gross Profit Growth % | 97.47% | 0.52% | -69.31% | - |
| Operating Expenses | 2.38M | 2.64M | 2.18M | 2.24M |
| OpEx % of Revenue | 24.74% | 43.99% | 43.97% | 21.74% |
| Selling, General & Admin | 2.07M | 2.04M | 1.63M | 2.02M |
| SG&A % of Revenue | 21.59% | 34.03% | 32.8% | 19.64% |
| Research & Development | 260.71K | 256.99K | 175.76K | 201.22K |
| R&D % of Revenue | 2.72% | 4.28% | 3.54% | 1.96% |
| Other Operating Expenses | 42K | 341.21K | 378.15K | 14.92K |
| Operating Income | -233.09K | -1.56M | -1.1M | 1.28M |
| Operating Margin % | -2.43% | -25.92% | -22.21% | 12.47% |
| Operating Income Growth % | 85.03% | -41.36% | -185.94% | - |
| EBITDA | -97.07K | -1.25M | -842.41K | 1.33M |
| EBITDA Margin % | -1.01% | -20.75% | -16.99% | 12.93% |
| EBITDA Growth % | 92.21% | -47.96% | -163.36% | - |
| D&A (Non-Cash Add-back) | 136.03K | 310.38K | 258.86K | 48.12K |
| EBIT | -553.21K | -1.73M | -1.3M | 1.37M |
| Net Interest Income | -553.28K | -382.01K | -293.05K | -223.05K |
| Interest Income | 0 | 0 | 20.7K | 69.45K |
| Interest Expense | 553.28K | 382.01K | 313.75K | 292.5K |
| Other Income/Expense | -873.4K | -550.76K | -514.71K | -202.3K |
| Pretax Income | -1.11M | -2.11M | -1.62M | 1.08M |
| Pretax Margin % | -11.52% | -35.09% | -32.58% | 10.5% |
| Income Tax | 2.51K | 176.92K | -88.94K | 116.73K |
| Effective Tax Rate % | -0.23% | -8.39% | 5.5% | 10.82% |
| Net Income | -1.11M | -2.28M | -1.53M | 962.45K |
| Net Margin % | -11.55% | -38.04% | -30.79% | 9.36% |
| Net Income Growth % | 51.45% | -49.6% | -258.66% | - |
| Net Income (Continuing) | -1.11M | -2.28M | -1.53M | 962.45K |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.08 | -0.16 | -0.11 | 0.07 |
| EPS Growth % | 51.38% | -45.45% | -262.96% | - |
| EPS (Basic) | -0.08 | -0.16 | -0.11 | 0.07 |
| Diluted Shares Outstanding | 14.25M | 14.25M | 14.25M | 14.25M |
| Basic Shares Outstanding | 14.25M | 14.25M | 14.25M | 14.25M |
| Dividend Payout Ratio | - | - | - | - |
Liquidity and funding dependency
As reported in recent financial disclosures, ENGS achieved a significant 59.88% year-over-year revenue growth, reflecting a strong market fit for its decarbonization services within the UK public sector, though this rapid top-line expansion warrants careful scrutiny regarding the sustainability of its project-based revenue model.
The aggressive revenue growth suggests that the company is successfully capturing demand from government-backed energy efficiency initiatives. However, investors should monitor whether this trajectory is driven by repeatable service contracts or a series of lumpy, one-off installations that may be difficult to replicate in future periods.
Based on the reported 22.31% gross margin, the company appears to face significant pressure from hardware procurement costs and competitive bidding, which limits its ability to generate the necessary gross profit to cover its current operating expense structure.
The relatively thin gross margin indicates that the company's value proposition may be heavily reliant on pass-through hardware costs rather than high-margin proprietary technology. Without a shift toward recurring monitoring services, the firm may struggle to achieve the structural profitability required to sustain its current growth phase.
According to the provided financial data, the company's negative operating margin of -2.43% indicates that administrative and selling expenses are currently outpacing gross profit, suggesting that the firm has yet to achieve the economies of scale necessary to reach operational break-even.
The inability to scale operating income alongside revenue growth implies that the company's cost base is currently too high relative to its project contributions. This suggests that management must either significantly improve project execution efficiency or pivot toward higher-margin service offerings to achieve long-term operating leverage.
With cash and equivalents representing only approximately 2.7% of TTM revenue, the company's liquidity profile appears strained, raising concerns about its ability to fund large-scale projects without continued reliance on external financing or support from its parent entity, Moonglade Investment Limited.
The disconnect between the company's rapid revenue growth and its thin cash position suggests a high degree of operational risk. Investors should be wary that any delay in government grant funding or a tightening of credit conditions could severely impact the company's ability to maintain its current pace of operations.
Quick answers to the most common questions about buying ENGS stock.
For fiscal year 2023, Energys Group Limited Ordinary Shares (ENGS) reported total revenue of $9.6M. This represents a 6.6% decline compared to $10.3M in 2020.
Energys Group Limited Ordinary Shares (ENGS) reported a net loss of $1.1M for the fiscal year ending 2023.
Energys Group Limited Ordinary Shares (ENGS) reported an operating income of $-0.2M, resulting in an operating profit margin of -2.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Energys Group Limited Ordinary Shares (ENGS) generated $2.1M in gross profit for the year, representing a gross profit margin of 22.3%. This demonstrates the company's core pricing power and production efficiency.