The Locality Planning Energy Holdings Ltd (ASX: LPE) share price is rocketing higher today, gaining a massive 47.22%.
Right now, the Locality Planning Energy (LPE) share price is 26.5 cents – up from its previous close of 18 cents.
Earlier today, the LPE share price reached 34 cents, which represents a 67% gain.
LPE is an energy provider focused on the New South Wales and Queensland markets. According to the company, it has used first-to-market technology to provide apartment buildings with solar energy and carbon-neutral hot water systems.
Today’s massive gain follows the company’s release of a trading update and unaudited preliminary results for the 2021 financial year.
Let’s take a look at what’s driving the Locality Planning Energy share price today.
Successful financial year
The LPE share price is soaring today after the company announced it has passed a milestone 10,000 new customers and a $1 million net profit, which is also LPE’s maiden net profit.
Over the 2021 financial year, LPE reported growth across all key financial metrics.
The company reported a 27% increase in revenue, while its operating costs only increased 8%.
LPE’s earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 217% over the 2021 financial year.
Its EBITDA went from a $3.8 million loss in the 2020 financial year, to a $3.6 million profit in the financial year just ended.
It also posted $55 million in reoccurring revenue.
Finally, it now has 41,000 customers using its services.
Commentary from management
LPE chair Justin Pettett commented on the company’s results:
The company’s maiden net profit represents just the beginning of the delivery on our vision for the company… [We] look forward to building on these results into FY22, as the company begins to deploy its unique, and exclusive shared solar product to strata communities throughout Queensland and New South Wales…
[The] company is now positioned for further growth with the uptake of our exclusive shared solar for apartment living.
LPE share price snapshot
For a moment, the LPE share price was in the green today on a year to date basis. However, it’s dipped slightly from its intraday high.
Right now, LPE shares have fallen 5% in 2021. They’ve also dropped 24% since this time last year.
The company has a market capitalisation of around $16 million, with approximately 62 million shares outstanding.
The post Why the Locality Planning Energy (ASX:LPE) share price is up 47% today appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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