Rapidly growing managing agent in the energy company obligation (ECO4) market

The company is a successful managing agent operating in the energy company obligation market, specialising in the provision of funding to contractors for the procurement, qualification, assessment and installation of home energy efficiency upgrades.

Operating with a lean, focused workforce, the company has implemented a highly efficient and profitable business model, developing strong relationships with leading energy companies and a significant number of contractors across the UK, enabling it to secure a dependable stream of recurring revenue.

The company is now being offered for sale as part of the Director’s plans to accelerate its expansion, with access to additional investment and a larger workforce supporting its diversification into new areas and driving further growth.

Key Highlights

– The company has secured contracts with several of the UK’s largest energy providers, working with a significant network of contractors to manage projects across England, Scotland and Wales.

– Approximately 98% of turnover is supplied through ECO4 projects, with recent diversifications into GBIS and SHDF works accounting for a rising proportion of revenue.

– Highly experienced and driven management team in place, all members of which wish to remain with the company to support its continued growth, post-sale.

– Currently operates from well-connected leasehold premises in Yorkshire.

– Scope to increase revenue and profits considerably through the implementation of an in-house installation function and an enhanced focus on lead generation. Efforts are currently underway to support these endeavours.

Financial Highlights

– Achieved turnover of £22.2 million in YE23, with an adjusted EBITDA in excess of £1 million.

– Turnover is on course to exceed £34.2 million in the current year, with adjusted EBITDA also rising to £3.4 million.

– The company has achieved consistent year-on-year growth across the last three years, with turnover increasing by 5,079% between YE21 and YE23.

– Turnover is projected to rise to £62.3 million by YE26, with adjusted EBITDA also expected to increase to £5.4 million.

– It is currently estimated that the ECO4 scheme is valued at around £1 billion per annum, with the scheme continuing until at least 2026.

– The company’s rising prevalence in the energy obligation market, combined with its strong, direct relationships with blue-chip energy companies and contractors, ensures that future revenue remains secure.