LPE Navigates Legal Disputes and Leadership Changes While Maintaining Growth Path

Operational Resilience and Financial Performance

Locality Planning Energy Holdings Ltd (ASX: LPE), a specialist embedded electricity provider focused on strata communities in Queensland, has delivered a resilient operational and financial performance for the nine months ending 31 March 2025. Despite the challenges posed by Cyclone Alfred, the company confirmed that all client sites have power restored and any property damage repaired, with no material impact on operations or financial results.

Financially, LPE remains cashflow positive year-to-date, a notable achievement given the complex timing effects related to the Cost-of-Living Rebate (COLR). While the March quarter recorded a net cash outflow, this was largely due to the timing mismatch between receipt and application of COLR funds, which the company holds on behalf of customers. The available COLR balance decreased from $12.7 million at the end of December 2024 to $7.3 million by March 2025, reflecting ongoing application against customer bills.

Strategic Board Refresh and Leadership Transition

In a move to strengthen governance and strategic execution, LPE appointed three new independent non-executive directors, Craig Chambers, Nicole Noye, and Andrew Vlachos, during the quarter. This board refresh aims to drive growth initiatives as the company scales its embedded network business. The outgoing directors, Simon Tilley and Stan Kolenc, remain substantial shareholders and supporters, signaling continuity amid change.

Leadership transition is also underway with the resignation of CFO Michelle Alexander, effective 1 July 2025. The recruitment process has attracted strong interest, with a shortlist of candidates expected to be interviewed shortly, underscoring LPE’s commitment to maintaining financial stewardship during this pivotal growth phase.

Legal and Operational Developments

LPE resolved a confidential Federal Court matter related to alleged breaches of the Corporations Act involving Powershift Technologies Pty Ltd, removing a potential overhang. Meanwhile, the company continues to pursue disputed costs litigation against the Harbour Towers Strata Plan in New South Wales.

Operationally, the Bundaberg BioHub project experienced delays due to adverse weather impacting demolition timelines, pushing the repayment date to 30 June 2025. BioHub has made partial interest payments, with the remaining balance expected to be repaid from sale proceeds.

Capital Management and Outlook

LPE’s share buyback program, initiated in September 2024, continues to be funded from cashflow and reserves, though future activity will depend on market conditions. The company holds a $10 million loan facility with Roadnight Capital Pty Ltd, of which $2.3 million is drawn, providing ample liquidity alongside $10.15 million in cash and equivalents. This positions LPE with an estimated 3.8 quarters of funding runway, supporting operational continuity and growth investments.

The Board reaffirmed its FY2025 net profit guidance of $3 million to $3.5 million, reflecting confidence in the company’s strategic direction and operational resilience despite external challenges.