Earnz – from losses into big profits, this £9.1m company is certainly one to watch, shares just 3.85p, SQC TP 6p

Mark Watson-Mitchell - 16.06.2026

Today I am pinpointing a very interesting ‘small cap’ stock, valued at just £9.1m, which has significant potential.

The driver is Bob Holt, a seasoned entrepreneur with a score of corporate successes to his credit.

Holt is the person who, in 1996, identified massive possibilities with a small, quoted vehicle that later became the mega-Mears Group.

He has been involved in other market situations including Unicorn Asset Management, DX Group, Totally, Revolution Beauty, Sureserve and is today also a director of the Synectics Group.

Holt plays a steady game, gradually massing up both sales and profits in his companies, never over-egging the market, always preferring to underplay his hand and then surprising onlookers with good news.

He is perhaps most widely known for his role in the rise of Mears Group, which he built up from a company with 83 employees and a turnover of £12m.

From 1996, he guided the company through its successful IPO on AIM and played a pivotal role in building its order book value to £3bn and revenues in excess of £1bn, establishing Mears as a market leader in its sector, with a market capitalisation of £450m and a workforce of 15,000.

Subsequently, from 2016 to 2021, he led the Sureserve Group as Chairman, overseeing its successful turnaround that resulted in over a five-fold increase in the company's share price.

An adept player in market terms, he has a considerable book of ‘connections’ especially those that can help him as he alights upon a ‘vehicle’ with a view to grow it into a useful business.

He is skilled in his ‘buy-and-build’ strategy and is always prepared to add to his personal holdings when acquisitions are being funded.

And that is just what he is now doing with this support services group, Earnz (LON:EARN).

So, What About Earnz?

Without showing any signs of haste, Holt has been gradually putting together a very interesting business with potential in a major marketplace.

The AIM-quoted company focussing upon ‘Energy Advisory Regeneration Net Zero’, is an energy services group operating at the heart of the UK’s green agenda delivering vital services across residential and commercial properties including heating maintenance, new energy services, and boiler refits.  

Its strategy is to ‘buy and build ‘leading businesses 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.

At the heart of its operations, there is a commitment to driving innovation and sustainability in the energy services sector, with the objective to capitalise on the drive for global decarbonisation.

To date, Earnz has acquired six businesses: Cosgrove & Drew, South West Heating Services, A&D Carbon Solutions, Warm Low Living, National Retrofit Solutions and Zero Carbon Group.

It is still very, very early days in the development of Holt’s new group.

However, it is beginning to see its various subsidiaries winning new business.

Just like the build-up of Mears and then Sureserve, his group strives to win contracts with local councils, initially on one-year terms but capable of being extended upon satisfactory performance.

Latest Results

The group is benefitting from significant opportunities for growth, following the first phase of the ‘buy and build’ strategy.

On Tuesday, 26^th May, the group reported a significant revenue increase to £11.8m for the year to end-December 2025, up from £2.6m in the prior year, largely due to the full-year impact of acquisitions and new business integration.

The company achieved a positive adjusted EBITDA of £0.1m, a substantial improvement from a £1.0m loss in 2024, despite increased central support costs.

The reported loss before tax narrowed to £1.7m from £3.6m in the previous year.

Net debt stood at £1.2m, with net debt excluding IFRS16 lease liabilities at £0.7m.

The company also highlighted operational progress, including a further acquisition post year-end and significant contract wins, expressing confidence in its FY26 outlook.

The Equity

There are some 235m shares in issue.

The larger holders include Pentwater Capital Management (15.0%), Gresham House Asset Management (7.40%), UBS Group (7.25%), Gresham House Asset Management (Investment Management) (7.12%), Bob Holt, Chairman (5.74%), Elizabeth Lake, CFO (3.50%), Philip J Milton & Co (2.40%), Andy Custer (1.99%), Oakglen Wealth (1.58%), Canaccord Genuity Wealth (1.53%) and G-Force Capital (1.44%).

Brokers View

Analyst Andy Hanson, at Zeus Capital, has estimates out for the current year, to end-December, to see group revenues almost treble to £30.5m (£11.8m), helping to turn the £0.6m adjusted loss of last year into a £1.2m profit.

For the coming year he sees £38.7m revenue, generating a £1.8m profit.

The year to end-2028 is estimated for £44.1m revenues, with £2.6m pre-tax profits.

My View

Holt’s declared aim is to build up an energy services company whose objective is to capitalise on the drive for global decarbonisation.

Just think, only valued at £9.1m, making £1.2m this year and heading up to £2.6m within two years or so!

As such, the upside for its shares, now just 3.85p, is absolutely massive.

I see the shares moving up to break through 6p very soon, with a 10p price objective within a couple of years.

I would hope for some sort of Corporate Update to be issued along with the AGM next Tuesday, 23^rd June.

(Profile 12.12.25 @ 3.9p set a Target Price of 5p*)

(Profile 16.06.26 @ 3.85p set a Target Price of 6p)

Getting it right!