EARNZ plc (Energy Advisory Regeneration Net Zero), a new British listed business that will form a leading energy services group, is pleased to announce the acquisitions of two leading South West businesses, Bristol based Cosgrove & Drew Ltd and Plymouth focused South West Heating Services Ltd.

The acquisitions will immediately position EARNZ as one of the leading energy services groups backed by a highly experienced, entrepreneurial management team delivering vital services across residential and commercial properties including heating maintenance, new energy services, and boiler refits.

EARNZ plc will work to augment their service oOerings and focusing on continued excellent service to their existing customers, and regions. Supported by additional fundraising the Group will then focus on broadening the UK footprint through organic growth and focused acquisitions.

Overview of the sector

With the UK having an estimated 23 million gas boilers, the energy transition away from this heating form will take decades. There is still a clear need for highly experienced energy services across residential, public, and private property types.

The UK energy services sector is highly fragmented with significant organic and inorganic growth opportunities. There is a large addressable market, with at least 3.5 million social homes that are eligible for grant funding under The Energy Company Obligation (“ECO4”), designed to tackle fuel poverty and reduce carbon emissions. In 2021, the public sector property portfolio was worth £515bn with energy consumption of c.£3.5bn.

UK Government sees changing energy demands within homes as a key driver of the UK becoming a clean energy superpower and is backing change in the form of a Social Housing Decarbonisation Fund (“SHDF”), which is available for all existing social housing, representing 4.1m eligible homes in 2022 with £778 million committed for SHDF Wave 2 in March 2023. In addition, the Government Property Sustainability Strategy 2022-30 has set targets for the decarbonisation of public sector buildings of 50% by 2032 and 100% by 2050 while many local authorities and housing associations are aiming to achieve net zero before 2050.

Detail of the transaction

The proposed acquisitions of Cosgrove & Drew Ltd and South West Heating Services Ltd are for a total maximum consideration of £3.1 million following the admission and re-admission of new and existing ordinary shares to AIM.

Cosgrove & Drew is an asset and energy support services company, predominantly servicing customers in the South-West of England but also London and the South of England. It delivers a range of mechanical engineering services, such as full industrial and commercial projects, installations across housing associations, local authorities and domestically, transitioning to renewable energy, and servicing and maintenance.

South West Heating Services provides heating installation and maintenance services predominantly for domestic insurance claims of national heating providers, but it also oOers its services directly to some private domestic clients. SWHS is based in Plymouth and operates across Cornwall, Devon and Somerset.

Both of the proposed acquisitions are in line with the Company’s strategy to acquire businesses that operate within the energy services sector, in particular businesses that specialise in the maintenance and/or installation of energy eOicient products for domestic and commercial use.

EARNZ today also announces that it is proposing to raise conditionally up to £4 million by way of a Placing, subject to shareholder approval to accelerate the strategy.

Bob Holt, Executive Chairman of EARNZ plc, commented:

“We are delighted to announce the proposed acquisitions of Cosgrove & Drew and South West Heating Services. These two businesses are well aligned to the Group’s strategy to build a leading energy services business in a high growth market that is aligned to the UK Government’s decarbonisation agenda.

“We intend to continue to grow the business and extend our presence in the sector, and to be the partner of choice for our customers through the provision of consistent, high quality, multi- dimensional oIerings.

“EARNZ is well positioned to take advantage of the very exciting commercial opportunities ahead in what is a highly fragmented market, which will ultimately deliver positive shareholder value. I look forward to bringing news of further earnings enhancing acquisitions in the not too distant future.”

For further information, please contact:

EARNZ plc

Bob Holt, Executive Chairman Elizabeth Lake, Chief Financial Officer

Camarco

Ginny Pulbrook, Rosie Driscoll, Andrew Turner

Notes to Editors

via Camarco
EARNZ@camarco.co.uk / 020 3757 4980

EARNZ plc

EARNZ plc is an energy services group operating at the heart of the UK’s green agenda. The Company’s strategy is to buy and build a leading business with a focus on decarbonisation and net zero, focusing on whole building fabric approach, working with public and private sectors utilising government incentives such as ECO4. To date, the business as acquired two businesses: Cosgrove & Drew and South West Heating Services.

EARNZ is run by an experienced management team. Bob Holt, Executive Chairman, has 35 years’ experience in senior leadership roles. He successfully led Sureserve Group plc as Chair, overseeing its successful turnaround that resulted in over a fivefold increase in the company’s share price. In addition, Bob also oversaw the IPO of Mears plc and established the business as a market leader in its sector.

Cosgrove & Drew Ltd

Cosgrove & Drew was founded in 2014 by its Joint Managing Directors, Zac Cosgrove and Luke Drew, incorporated in 2015 and is headquartered in Bristol. It is an award-winning asset and energy support services company which focuses on two key services: (i) major projects, self-delivering mechanical engineering projects for mainly commercial sites; and (ii) facilities management, providing maintenance, compliance or reactive services of client facilities for heating and plumbing.

The business predominantly servicing customers in the South-West of England across Bristol, Gloucestershire, Wiltshire and Dorset, but also London and the South of England.

It currently employs over 50 staO, including approximately 40 engineers and 14 support staO.

The C&D directors believe that C&D has created a strong reputation for delivering bespoke and complex mechanical engineering solutions and building fabric within both the private and public sectors, including for housing associations and local authorities.

South West Heating Services Ltd

South West Heating Services was incorporated in 2019 by its founder and Managing Director, Andrew Custer, who has over 20 years’ experience operating within the heating services sector and manages an experienced team of qualified heating technicians

SWHS provides heating and installation maintenance services largely for domestic insurance claims of national heating providers, while also oOering its services directly to private domestic households.

SWHS is based in Plymouth and operates across Cornwall, Devon and Somerset. It has 14 employees consisting of a team of administrative staO and 10 heating technicians, most of whom are based in Plymouth.