Good Energy Group PLC (GOOD) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Good Energy Group PLC full year results investor presentation for the year ended 31st of December 2020. I apologize for the delay of the start of this event. [Operator Instructions] I'd also like to remind you that this presentation is being recorded. Before we begin, we'd like to submit the following poll. I'd now like to hand over to Juliet Davenport, CEO; and Rupert Sanderson, CFO of Good Energy Group PLC. Good afternoon.

Good afternoon, and thank you. And sorry for the delay. My computer decided it didn't really want to start working this afternoon, so it went on strike. So good afternoon, and welcome to the Good Energy 2020 results. Rupert and I are going to talk to you through the results, and we may bring in Charlie as well to talk through some of the more strategic part of what we're doing on mobility as a service. So just an overview. I'll give you a very quick overview of the business. Rupert will talk through the detailed financial performance. I'll give a strategic update and then a summary at the end. So just, I guess, in notable activity this year, these are sort of just some clips of what's happened in 2021. One of the things that we were working through the whole of 2020 was to our greenwashing campaign, which is really to try and make sure that people were buying truly green products in this marketplace. We've seen a lot of entry into the market of people mis-selling on green. And so this is part about protecting our customer base and being able to grow our customer base. The other part was the -- our investment in Zap-map and really the transformation we're seeing in the electric vehicle market. and the energy transformation overall, how we're seeing transport really move to electrification. Then we've been talking for some years about the asset base. So we own renewable generation assets. But it's always been quite difficult to explain, one, the value of that; and two, how the debt looks. So we've restructured that and revalued that, and Rupert can talk you through what that looks like. And then finally, Nigel Pocklington, joining the company as group CEO. That's really exciting. He's going to bring a real transformatory sort of piece around digital marketing and really help us boost the proposition set for Good Energy. So in terms of the overview, we've had a really, I would say, positive performance in 2020 despite COVID. So obviously, we've been operational throughout that whole period. But what we've managed to do is to produce solid cash really by looking at how we're doing cash collection and also our investment in Kraken meant that we did reduce our overall overhead before COVID turned up. So we actually were in a pretty good position going into COVID. We've also managed to continue to roll out our strategic development with some delay to Kraken, but not much. And so by the end of the year, we have now successfully implemented the Kraken system, which is the domestic supply service system. And that allows us to now roll out smart metering and really start to get into data around domestic consumers. And then looking forward, really how we're thinking about growth and where we're taking that. So our investment in Zap has allowed us to really bring in an [indiscernible] company that is really trying to transform the electric vehicle charging marketplace. And that's given us an opportunity to build to support them, invest in that organization, but also to build mobility as a service between Good Energy and Zap. So generally, good year, continue to invest and really -- although -- and we have some growth in the core business of business customers. But really, we're seeing big growth potentially coming out of Zap-Map. I'm going to turn over to Rupert now.

Thank you, Juliet. Good afternoon, everybody. So this first slide is just a bridge of our profit before tax from 2019 to 2020. And there's quite a lot going on, both in terms of sort of external environment, COVID being the biggest impact there. The business delivery plans that we have taken control of, so what I would call sort of internal performance. And then there's 2 or 3 sort of specific items I want to draw your attention to. So on the left, we start with what was our underlying profit before tax in 2019 of GBP 2.1 million. The biggest negative impact from a P&L perspective in 2020 has been COVID. And that's really manifested itself in a number of ways. Within the supply business, we see the impacts really in the half hourly demand, which is our bigger customer demand and then some of the [indiscernible] customers. We saw those segments reduce their power consumption in the summer, in the period of that first lockdown by between 30% and 40% on average. There are obviously some businesses that shut down completely. Some businesses actually increase their consumption. But it was a very, very significant shock, that first lockdown. And that also resulted in us needing to sell back the excess power that those customers were intending to use into a market where the prices were falling, or prices are falling because demand across the U.K., in fact, demand across all of Continental Europe in that first spring lockdown was sharply reduced. We've also seen some additional debt provisioning. We call that expected credit loss provisioning. And whilst that is not as significant as we expected it to be when we announced our half year results because our performance on cash collection has remained very resilient. There is an additional impact of provisioning mostly as a result of the fact that the economic outlook still is not as good as it was when we're looking back to the sort of start of 2020. And so in aggregate, that's around about GBP 2 million of impact. So a very significant sort of P&L impact where the majority of which came in that first period of lockdown. As Juliet talked about, we've completed the migration of our domestic customer base onto a new billing platform, the Kraken system. And in doing that, we have saved around GBP 2.7 million worth of predominantly headcount costs. And we completed -- we initiated that program at the start of 2020, and we've finalized the migration at the end of last year. So that's been -- that's been both a benefit to us from a P&L perspective, but it's also underpinned a lot of the strength of the cash collection benefits we've had within the domestic part of the business. So that gives us a sort of normalized bar in the middle of the slide that middle blue bar from which we then got sort of 2 structural changes. The first is we have brought in for the first time the results of Zap-Map. So we own a majority stake in that business now. So we consolidated current loss before taxes to our results. And then we have the -- there's 2 impacts associated with the generation revaluation. The first one is an ongoing impact, and that will be a higher level of depreciation charge that goes through the P&L associated with our upwards revalued portfolio, although it has no impact on retained earnings and hence ability to pay out dividends after retained earnings in the future. And then the second is one of the sites in a very small solar site, we actually had an impairment on that side as a result of that revaluation, that is a one-off impact. So that leaves us with an underlying profit of GBP 0.4 million. The completion of the Kraken implementation was also finalized in 2020, and the remaining transformation costs are shown in that final orange block. So it leaves us right on the cost from a reported perspective in terms of sort of roughly breakeven position for the year. So just pulling out a couple of other points around the sort of income statement as a whole. And we've sort of gone through most of the profit bridge. So I'll really just pick up on revenue. So revenue despite the fact that we have had quite a sharp contraction over the summer and to a lesser extent, in the autumn in our business demand. We have still shown an increase in revenue. Domestic consumption has remained relatively static in electricity. Gas was a little bit down on account of the warm start to 2020. And we've also seen a slightly higher level of prices in that contracted business segment. So we've mitigated most of the impact of that demand reduction and [indiscernible] revenue slightly moving forward. Cost of sales is slightly ahead of the increase in revenue, and that's mostly on account of those one-off COVID impacts that I touched on before and the additional generation in the additional depreciation and the generation sites, which is accounted for within cost of sales. Otherwise, the gross profit or the increase in cost of sales would have been very similar to the increase in revenue. So if I move on to cash, and I think cash has been the sort of standout area of our financial performance for 2020. And if you look down the sort of 2 comparative columns in that chart, you can see that our operating cash flow before working capital, positive working capital movement and lower finance costs have all -- are all ahead of the comparative performance in 2019. And I think that's underpinned both by the successful implementation of that Kraken system alongside improvements that we have been putting in place during the end of 2019 and into the start of 2020 that have put us in really good stead to maintain a really strong focus on cash collection over the course of this year despite disruption. We have got a quality customer base within the business sector. We have a number of Blue Chip Companies in there that account for a relatively significant proportion of our business segment revenues. And we have a very high proportion of our domestic customers paying by direct debit. It's around about the 85% level. And we've really seen very little sort of change in the sort of underlying behavior and payment pattern of those customers, which is really very -- which is very pleasing given the backdrop of such economic uncertainty. And it's provided us with the platform to continue to pay down debt as we have done over recent years, but also out of our own operating cash flow allow us to fund growth investment or potential M&A opportunities, follow-on opportunities as we have done with Zap-Map. And I think that's -- those combined themes of debt reduction and investment expenditure once that will continue into future years. This is a slide that we pull out for each one of our results presentations, which is really sort of showing that similar theme around debt reduction over the course of the last 3 or 4 years. And so the net debt at the end of 2020, a little under GBP 35 million is -- you can see significantly down over recent years. And as Juliet was talking about, we have looked at the way in which our generation asset has been represented against the debt that supports it. And the debt effectively amortizes over a longer period. So in the early years, the interest charge is much more significant. And therefore, that take the longer time for the absolute quantum of it to reduce, whereas our generation assets on a streamline depreciation basis have been reducing in notional book value more quickly. And so starting to get to the position where it was very hard for investors to really understand the relative values of the debt and the asset that it was being financed -- that was financing -- the debt was financing. And so at the end of 2019, we started the discussions on the revaluation of that asset portfolio, and we completed that in the first half of 2020. And that's resulted at the end of 2020 of an uplift to our reserves of around about GBP 13 million. And so with the debt reduction and that asset revaluation to market prices we saw in Q3 2020, our gearing has reduced to a little over 50%. As we look forward around this -- around our sort of capital structure, the refinancing of the generation debt that we completed at the start of April 2021 is effectively the next step in the balance sheet structuring. So that has provided us with approximately -- it's a little under GBP 8 million of unrestricted cash mostly as a result of taking out some of the reserve account balances from when those first generation assets were financed that we can put back into the rest of the business. And so this gives us really strong visibility over the ability to repay Good Energy bonds to, which is a little under GBP 17 million worth of retail bonds where the first maturity is this June. That will allow us to effectively remove debt from the supply side of the business. So we are only left with debt supporting those generation assets, which I think provides a sort of much clearer and cleaner capital structure for the business going forward. Final slide, just in terms of where we are at the end of quarter 1 of 2021. So our current trading has been in line with our expectations for the first quarter of this year and the cash collection progress that we saw during 2020 has been maintained into 2021, and that remains consistent and strong. In terms of some of the actions we took at the height of the pandemic to ensure that the business was safe as we sort of embarked into a period of very significant uncertainty. We sort of restricted some of our sort of marketing comms in test and learn strategy in 2020. And so we are looking to reinstate some of that investment into 2021, again, out of our strong operating cash flow. And I'll let Juliet talk to all of the pieces around future growth and leveraging the basics that we have now in place with the Kraken system and the ENSEK system, which is a system that supports our business customers and the smart meter rollout, which is gathering pace as we emerge from lockdowns. And finally, I want to close with a position on dividend. So the Board has announced that we will not be paying a 2020 final dividend alongside that we wouldn't pay an interim dividend for 2020. But we've made the strongest commitment we can to our intention to recommence that program from 2021, recognizing the importance of dividends to many investors, but also balancing against the future investment we have both in the sort of core business and in some of the new growth areas that we see. So I think at that point in time, I'll hand back to Juliet, who can talk a little bit more about future strategy.

Thanks, Rupert. So -- Just as a kind of overview of the strategic sort of review. Where we are today is that -- this kind of highlights the core capability and competence of the company today. So we own our renewable -- in renewable energy, we own our own generation assets. We actually develop those assets. We operate them and we trade the power out of them. So we have a pretty deep knowledge of how to connect and integrate renewables into the electricity system. We also operate 1,600 PPAs with renewable generators across the system. And we also look after, I think it's about 170,000 feed in tariff customers. And we're the second largest feed in tariff customer base in the U.K. And feed in tariff is mainly renewable generating on people's roofs, that's in the form of solar with some small wind and some small hydro. So that's where kind of the business has come from. We use that power that we buy there to supply to consumers with a truly green proposition. And one of the things we've leen working on this year is the greenwashing campaign to highlight where other people are selling propositions that aren't properly green. And we also use organizations like Ethical Consumer, a good shopping guide in which to demonstrate why our proposition is different. One of the successes we've had this year is that the CMA is now doing a review of this sector. [indiscernible] is also carrying out a review and Ofgem is looking at it. And it was a recommendation for the Climate Change Committee to government that they need to consider protecting green consumers. So we think this is an area where we have struggled on the domestic side because we've seen cheaper sort of less green products, sort of sell themselves as green and undermine our proposition. So that's been quite an important part of our work for the last 12 months. And then obviously, the feed in tariff business is important. It's a recurring revenue stream, but also feeds into the future of generation services for customers, for householders. And as we evolve, one of the key areas that we've looked at, and we'll talk through a little bit more is the Energy as a Service and particularly EV is the first area we've worked with our investment in Zap-Map and looking at an end-to-end solution for people who want to drive an electric vehicle. So if we start with what building blocks we've put in place to deliver on this strategy, the Kraken customer services platform for the domestic customer gives us fully scalable technology. It's an up-to-date technology that was specifically built for this marketplace. And we're already seeing significant returns in terms of reduced cost and improvements in data. Smart metering are going to be the next key piece that we need to implement in 2021. We've done a certain amount in 2020, which was slowed down by COVID, but we really need to accelerate this now because smart metering is all about getting the data on your customers and then being able to provide them data-led services. ENSEK is a business using platform that we're part of the way through transforming on to. We've got about 80% of our business customers migrated on to that to date. That allows our business customers to a self-serve portal much better integrated with the brokers. So it gives us a better billing platform than we've had previously. And then mobility as a service, we talked about that's really the Zap-Map investment and beginning to work through what that commercial proposition looks like. And then the final point is sort of mapping off the back of what we've been doing with Zap? What does the business proposition look like in terms of for fleets in terms of mobility, but then what does proposition -- what the propositions look like in heat and flexibility services? And how do we really take some of the innovation work that we did sort of 2 or 3 years ago on electricity a small export guarantee and bring that in as a commercial proposition to consumers? The first area, so in terms of the success on the Kraken portfolio, the implementation was to reduce cost, which we've done successfully, improved service. And what we've actually seen during COVID is a lot of people have switched to e-mail as opposed to phone, which is really important. And so you can see our e-mail response time has gone down and our trust pilot scores have gone up. We've also got better scalability. So we've reduced the amount of paper that we need to do, which should reduce in cost. We've got people -- more people using the app and portal, which is a better self-service capability. And we've got good debt collection with people -- a lot of people of our customer base using direct debit to pay their bills. And essentially, this platform then allows us to use Agile Tariffs. It's one of the few platforms in the market that can facilitate agile tariffs. It can support smart meter rollout. And we're really looking to how can we leverage the value of this platform into new products and services. And we'll talk briefly about the Zap-Map flash tariff later on in the presentation. In terms of the Energy as a Service, I guess what we're trying to do is that we see. if we take a step back in terms of the energy market in transition, one of the key elements that everybody has agreed on. So there's various different parts, whether you're taking a hydrogen carbon catcher storage path whether you're taking a sort of pure renewable path. Either way, we're going to see more electricity generated in the market, and we're going to see more renewables come into that system. So we have been -- we've existed in this market to enable this transition, be part of this transition for 20 years. We know a lot about the renewable electrification side of this market. We've got proven credentials in terms of how to contract and how to trade in this market. And we've now got a platform that really gives us the data and digitalization that we can then evolve into these new propositions that we're going to see coming forward because one of the things we actually know in the Climate Change Committee report came out with a lot of the actions that going forward on climate change is going to need engagement from consumers. And we are at that sort of just the point between consumers and the marketplace. And that is where we see using data-led services to really leverage our position. In terms of focusing on Mobility as a Service, I'm actually going to ask Charlie to join us here and to take us through the slide.

Thanks, Juliet. As Juliet has touched on the mobility service and how that's part of an evolution as our business from Energy as a Service. And so far it is Good Energy really, it's about making sure that we remain at the heart of the ecosystem focused around electricity. And for us, that's around more access to more energy throughout this entire mobility ecosystem. When we look at customers within this space, there's broadly 2 those the direct ownership of electric in calls and these are your traditional direct consumer drivers. There's also the business side, and we see no split into 2 areas. One is the centralized fleet to these very classical fleet, the likes of grow on mail, both drivers go back to a depot and even in charge up there. The other side of this is around decentralized fleets. So these are companies like Virgin Media, where fleets will be going home in the evenings and the drivers have ownership of those bands and taking them back to solutions there. That also covers the wide range of drivers or company car scheme, salaries sacrifices and their life as well. And for Good Energy, we see this in 4 key verticals through supply, through infrastructure, through services and through EVs themselves. And the reason behind this is that the shift into electric mobility is much more consumer and customer focused than it is focused on the car. But all of these inputs help to form what that Mobility as a Service piece looks like. The 100% renewable supply, as Juliet mentioned earlier, we received the Uswitch green accreditation. This has been a goal to supply. And it really helps to differentiate our 100% renewable supply offering in what is quite a homogenized market in energy, and that becomes a real powerful piece, not only for domestic customers who want to make sure their cars are powered by green energy, but also the businesses who want to be able to report on this as well that their power miles are on Good Energy. The infrastructure side, again, we look at this in 2 ways. One is 4 businesses, and we've built up our 1 point offering, which is around hardware installations, covering a range of EV charges through from slow to rapid to ultrarapid. And we're working alongside a funding partner in Horizon and what they're been able to do is to offer different upfront funded solutions. We know that the installation of these charges from talking to business, cost is one of the key issues. So ways of spreading this out over between 5 and 7 years, helps to remove one of those barriers to adoption for businesses. And we'll also be working on solutions for domestic consumers as well have been able to spread these payments over a 12-month period just to help remove those barriers. In the services side, this is where Zap-Map comes to the fore. And alongside the car itself, we also need to be able to search plan and pay for these opportunities. And that's core to what Zap-Map does. We'll touch on that shortly in a moment. We have a partnership in place with a company called Mina. And what Mina do for fleet managers is they help to separate out the cars charging at home from the rest of the home electricity for a fleet manager, that means they're able to settle those payments and no reimbursements, but their drivers separate to their home electricity. Zap-Map last week, they signed a partnership with FleetCor, who are one of the leading global providers of fuel cars. And in the U.K., they've got on a 40% market share, and they're building out through where all star one electric card, an EV fuel card for customers. And Zap-Map through their Zap Pay technology, that's going to be the payment platform through the app as part of the on-the-road charging solution there. And what that solution is aiming to do is for a fleet manager is to replicate the fuel card as it stands today. So for businesses that are adopting electric fleets when they go in charge and pay on the road, they'll be able to pay by as at pay. And when they go home, these payments will be settled by Mina. It means that all that reporting or the reimbursement is able to be brought through in the same manner. And again, for business, it's about removing those barriers to adoption. And we look at expanding these range of services out again through partnerships in the likes of insurance and many others. And then finally, on EVs themselves, we could anyhow, this is another route to market that for customers that are first are the customers where it's now the business customers, domestic they'll be needing an electric vehicle to join this revolution. And what we will see is through partnerships with select car leasing we have at the moment and expanding these out is working alongside them to provide tariffs that ties into the length of those contracts. So for Good Energy, we look at this as a way of helping to reduce our cost per acquisition, improve our customer retention rates and ultimately providing a service to these drivers as they meet electric vehicles. And all of this really is what gets pulled together over the longer term by the kind of flexibility platforms and energy optimization that through smart charging, through been able to optimize this energy, we're able to provide a better service and more cost-effective piece in help cars charge at a time that both sets degree and is cleaner that we'll continue to build out. And going on to Zap-Map. So Zap-Map Is the leading EV mapping platform in the U.K. They've currently got over 95% of all public charging points with 70% showing live dynamic data, which takes every couple of seconds. Zap, however, 80% of all EV charges downloaded their app with over 320,000 downloads, of which 180,000 of those are registered users and the data that sits behind there is around e-mail addresses, locations, post codes, make and model of cars. It's a very rich data set that sits underneath that. And a really high proportion of those are what we call cross platform users. And these are people using the app, mobile web and we're engaged through the ecosystem and planning routes and using on-the-go as well. And we have seen over 130,000 route plans saved for people that have gone on to plan this week to use them and use the various builders to understand the best way of getting to and from the destination. And then finally, the piece that really separates that map from the homogenized mapping platforms in these user interactions and around the sort of the 12,000 per month that we get and what that it did is it's updating on the status of the charges, whether they're working or not, people have used them successfully, whereabouts, they are in car parks, little tips and tricks in them. If we look into many other businesses, the likes of ways and where they created value, it was that user engagement through nowhere traffic signals work and then what live traffic data was. And this is what the users bringing to Zap-Map as a real strong piece. Then looking into 2021 and some of the key commercial milestones. We see the business model ends up driven by 3 key areas, driven by the mapping, driven by payment and driven by data. And so today, we've launched a new tariff with Zap-Map, which we'll touch on shortly, but it's bringing more -- an innovative EV tariff to these EV drivers that the customers at Zap-Map have subscribed in there. One of the ways that we look at monetizing this user base is through a subscription model and through a freemium app, so looking to Strava, MyFitnessPal, Spotify. And what this is doing is the core functionality of the mapping and the payment will sit outside the firewall that would be available for all. But what we'll be looking to do is bring this increased value add services that sit behind that. So for heavy users of for people who need extra functionality, this is what the business will continue to build out. And we'll see this launched in the coming month. On the payment side, there's 2 key aspects of this. There's the partnership with FleetCor that we mentioned, and that is really a business solution that is focused on business and fleet customers, but it helps to drive adoption of Zap-Map with the charge point operators to out the U.K. And then does that pay itself, we installed a new Commercial Director, Alexa and the new interim CEO, Richard Bourne, who've been doing great work in building our partnerships here and helping to roll these out at scale throughout the year. And it's this payment that will underpin a lot of the growth coming throughout this year. And then finally, data in terms of data monetization. Zap does a great job in packaging data and insights for a broad range of customers throughout the mobility ecosystem, ranging from auto manufacturers, OEMs, insurance firms and many others. But one of the pieces that we will be continuing to build out is almost is the forward-looking piece that sits within that. So if you really understand in user behavior to understand the utilization and how businesses can interact with their and understand EV drivers. And then we've launched today a new tariff, which we're really excited about for a couple of reasons, really. One is, is using Zap as a strategic channel partner. Zap obviously have a leading name within the EV sector and in many ways, is the voice of the EV drivers. So for Good Energy, a way of understanding how customers interact with the tariff coming through, secreted voicing EV space and providing something new for EV drivers is going to be really interesting to see the uptake in there. And the second piece is around the innovative nature and this is a tariff for people with a smart meter. So SMETS2, that we've touched on earlier in his presentation. And it's really around the kind of the 3 energy periods that can be off say, 4-hour windows, there will be at different times depending on summer and winter. And users will get notifications as when these free charging period will be based on weather forecasting based on our own portfolio of renewables. And what's going to be interesting for us to see and to learn from it to adapt our tariff as we go is how users interact differently, it's when can we influence behavior is when people charge at a time, there's better set for the grid when there's an abundance of renewables or how people interact with that smart charge. As Juliet touched on earlier, the evolution of this then becomes linking to the smart EV chargers, linking into flexibility platforms and helping to really optimize this energy usage of both domestic users and eventually business users as well. Juliet, I'll pass back to you for the summary.

Thanks, Charlie. So overall, I think where we're at is that despite COVID, we had positive performance and business customer growth. Cash from a strong cash-generative position over the year, plus our new net cash position allows us to have capital flexibility. The platform for growth, Kraken has gone well. We now are really beginning to start the pace and the smart meter rollout. I'm going to see a couple of questions in the questions on that. Zap-Map then is also prime to scale. So as Charlie went through, we've got the opportunities of really monetizing that customer base now and really getting the proof points around that. And then looking at in terms of where we're investing, looking at taking energy and mobility as a service and really starting to see where the new opportunities are revolving in the heat market and the flexibility markets as well. So thank you very much for listening. We've got some questions in the site. So shall I just go through and sort of start to answer some of those?

Juliet, perhaps we could start with some of the pre-submitted questions, if that's okay, and then move on to the live questions, if you don't mind.

Okay. Do I need to -- have I got a copy of those?

I'll just read them out if that's okay.

Okay. That's perfect.

[Operator Instructions] So let's move on to the pre-submitted question. The first one reads as follows. Julian team. First, I just wanted to say that I like the company and what you're doing. However, taking a long-term view and looking at your share price over a 5-year period, the company shares, or only now, roughly the same price they were 5 years ago. If you include dividends, shareholders have essentially had roughly speaking, about 5% return or 1% per annum average best. Please, can you tell us what actions you're taking or going to start to take to generate a positive return on investment for shareholders annually to kickstart the shares upwards?

Great. So shall I kick off on that one. And then Charlie and Rupert can jump in whenever you want to. So I mean, I think what we've seen in the energy market, and actually, I think our shares have performed relatively well if you compare us to, say, a British Gas I think have seen their share price continuing drop till kind of more recently. We -- there was obviously -- it's 5 years ago since the CMA investigated so to market and brought the price cap in. I think we've navigated that really well. We've also pivoted the strategy sort of 2 or 3 years ago to really focus more on the business growth strategy, which I think has been really helpful. And then looking at EV as an opportunity in Energy as a Service. So I think driving the share price from here. I think we've done a lot of the groundwork really now to launch that. we've appointed a new and highly commercial CEO who comes from a digital transformation background. As what you can see -- what we've been talking through is that we know the energy part of this marketplace really well. We know the particularly the renewables part of the market. But where we have really struggled and where we've seen sort of some of our capacitors accelerate on the ideas that we have, is through the digital transformation side. So by bringing Nigel on, he's got a big background, he's got marketing in his background. He's got digital transformation. That is his core and that's what we really think this company needs now. And then obviously, as time goes on, the -- we switched off the dividend, which is I think most companies have done during COVID, but we are looking to continue that dividend going forward, and we hope that, that should also begin to drive value as well as driving value through the overall growth of the business. I think the investment in Zap. So obviously, the more users that we drive through Zap that once we start monetizing those users, that should just have a general pickup. And I think Charlie mentioned that the growth in the users on Zap are directly related to the overall growth in that marketplace. And I also think that we've only had a small part of the year, really reflecting the cost savings and efficiencies that were from the Kraken and ENSEK. And in a full year, we should start to see more of that come through. Rupert, I don't know whether you want to sort of comment on that last part.

I don't think that there's probably that much to add in terms of the absolute cost. I think the other important point is that now that those systems are in place, they are tried and tested scalable systems. So as we start to build on both the domestic side and on the business side, then there is plenty of capacity for further efficiency and the sort of operating leverage benefits that we would expect to be able to get out of those systems. I think that's a really important point about how we can sort of exploit in the future as well.

That's great. The next one, I think you kind of touched on the presentation, but what is your target in deleveraging debt in the business? What is the blended average interest cost you pay? And once you've reduced debt, what do you intend to do new renewable investments, other investments?

Rupert, do you want to take the first part, and I'll touch on the second part.

Yes, of course. So I think it's a good question in terms of what is our target on deleveraging. We've -- you would have seen the reduction in the debt that we have been managing over the course of the last 2 or 3 years. And I think we've laid out fairly clearly today and in the sort of announcement, our intention in terms of the full repayment of the retail bond by the end of next year. That will take nearly GBP 17 million worth of debt off our balance sheet and effectively remove debt from the supply side of the business. So we will just be left with the Generation Z. That's all now in one place financed by an organization called GCP and again, sort of highlighted in our preliminary results this morning. The coupon on that is a little under 6.5% and runs out to 2035 in line with the life of those assets. And it will amortize over the course of those 15 years. So it will reduce over the time and the interest cost associated with it will reduce alongside that.

That's great. Thank you very much, indeed, Rupert. Next one we've got here is, for those who don't follow you or the energy sector, please could you tell us about your long-term strategy for growth? What kind of levels of growth do you or should we expect? And what in terms of revenue uplift should we conservatively expect also?

In the core business, so the majority of customer growth in the market is driven by energy switching sites in the domestic sector and brokers in the business sector. So there are 2 factors in there. One of the reasons for the work on the greenwashing work was to basically convince the regulator to put the regulation outlined that people couldn't mis-sell on green and then to encourage the switching sites like uSwitch to come up with a green ranking. So we have successfully now, obviously got Uswitch to come up with that green ranking. We'd hope to be able to persuade some of the other organizations. But I think uSwitch's switch is about 40% of the market at the moment. So it gives us a significant increase in market space. What we are also testing is a range of different tariffs through that. So there's fixed rate tariffs, Agile Tariffs, and Charlie touched on the new tariff that we're going to now start selling through the Zap customer base. In terms of the business customer growth, the ENSEK system integrates directly into a lot of the broker systems. So that means we can actually quote for more than we've traditionally done previously because it's been quite a manual process. We've picked and choose who we go to. Hopefully, with this system, we'll be able to do more. And we're also going to be offering gas to business customers, so that should increase the potential around that as a result of the ENSEK system. I think then the rest of the growth that we'll be really starting to try and do is looking at, obviously, Zap-Map and the Mobility as a Service will really be driven through the Zap approach and then start to look at, okay, so what does Zap look like for heat and what does Zap look like for the flexibility. And I think flexibility is probably the furthest away, heat will be the next one we start to look at. So where is the marketplace for heat pumps? Heat pumps, switch people out of particularly initially out of oil. So that means it's a new market share for us into electricity. And the heat pumps in people's homes, we're beginning to see that really come in through new builds and sort of inner London -- innner city infrastructure. So those are, again, opportunities for us to work with developers and provide a service, a heat service through that. So that -- those are the kind of areas that we're looking at in terms of driving growth going forward.

That's great. Thank you so much, Juliet. Next one, we've got really just a little bit around the company. What is the free flow of the company? Who are the biggest shareholders? And how much skin does management have in the company?

Charlie, do you want to take that one, actually.