NextGen is Australia’s largest environmental broker of carbon credits and renewable energy certificates and a major broker in the wholesale electricity market. As a broker it operates between the buyers and sellers of these environmental and electricity products with its clients being Australia’s largest players in these markets.
The results for the business to the 31st of December show a number of effects. Firstly the business results are traditionally heavily biased towards the 2nd half (65 % of the revenue normally generated in the second half).
This half year revenue performance is in line with the previous corresponding period.
Secondly, management focus was on a number of matters in the first half including, the listing, potential acquisitions and preparing the business for growth. Thirdly, some of the preparation and expenditure for this growth acceleration of green invest occurred in the first half prior to acquisition.
Electricity market volatility in the previous reporting period reached record levels, but returned to average levels in the six months to December. Going forward, given the current and future uncertainty of carbon pricing for both electricity and environmental markets, we expect volatility to again move above historical levels.
The second half performance is showing an increasing positive trend with the business recording a record month in environmental credit turnover for February.