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We are delighted to announce that, subject to shareholder approval, EARNZ PLC is proposing to acquire Cosgrove & Drew Ltd. After almost a decade of growth, we’re delighted to welcome this new era.  

EARNZ PLC has been established to focus on building a leading energy services business across the UK, servicing the residential and commercial markets.

As part of EARNZ PLC, Cosgrove & Drew Ltd will be able to continue to grow to meet the UK’s energy services needs and provide its clients with a high quality offering, now backed by additional expertise.

Luke Drew, Managing Director of Cosgrove and Drew Ltd, commented: “Fuelled by a shared commitment to sustainability, we look forward to combining our strengths to deliver exceptional service to our customers.”

For more information, read the full announcement below. For media enquiries please contact [email protected].

 

New British business EARNZ plc makes first acquisitions of Cosgrove & Drew Ltd (“C&D”) and South West Heating Services Ltd (“SWHS”) to build market presence

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 offerings 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 2050while many local authorities and housing associations are aiming to achieve net zero before 2050.

Detail of the transaction

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 offers 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 efficient products for domestic and commercial use.

EARNZ today also announces that it is proposing to raise conditionally up to £10 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 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 offerings.

“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.”