Utilitywise is pleased to announce its financial results for the six months ended 31st January 2014 and the acquisition of the entire issued share capital of ICON Communication Centres, a leading international provider of contact centre services based in the Czech Republic.
- Revenue increased 105% to £21m (H1 2013: £10.2m)
- Gross profit increased 110% to £9.0m (H1 2013: £4.3m)
- Adjusted EBITDA increased 135% to £5.4m (H1 2013: £2.3m)
- Adjusted Pre-tax profit increase of 133% to £4.9m (H1 2013: £2.1m)
- Adjusted fully diluted EPS 5.1p (H1 2013: 2.4p)
- Proposed interim dividend of 1.2p, in line with progressive policy
- Like-for-like revenue increased 65% to £16.8m (H1 2013: £10.2m) and adjusted EBITDA increased 78% to £4.1m* (H1 2013: £2.3m*), after removing the effect of the acquisitions of Energy Information Centre Ltd and Aqua Veritas Consulting Ltd.
- Continued growth in customer base to 17,903 an increase of 36% on 31 January 2013
- Further expansion of Energy Consultants team to 347 consultants as at 31 January 2014, an increase of 34% since 31 January 2013 and 23% since 31 July 2013.
- Over £27m of new business secured in H1 2014 a 107% increase on H1 2013, with gross unrecognised secured revenue of £23.8m (31 January 2013: £8.5m) waiting to go live
- Successful integration of the recent acquisitions to create a new Utility Management Services Division, delivering £4.5m of revenue (H1 2013: £0.4m), representing 21% of total Group revenue
- Strengthening the Group’s business development resource to support the recently created Utility Management Services Division
- Continued investment in the Group’s IT systems and products and services with the launch of Quantum to enhance the functionality of Darwin, our in house CRM platform
Geoff Thompson, Chief Executive of Utilitywise, said: “Utilitywise has continued to make impressive progress, with improvement in all of our key metrics. With our current positive momentum, we now anticipate our performance for the full year will be slightly ahead of current market expectations.
“These results demonstrate the strength of our proposition, our continued ability to scale our business model and the important differentiation we have achieved through our on-going development of our energy management products and services.”
Acquisition of ICON
ICON is an established provider of multilingual contact centre services for the international market. Founded in 2003, the company currently operates one call centre in the Czech Republic with 150 employees and the capacity to expand to 300 seats. For the year to 31 December 2013, ICON reported revenue of £3.0m and EBITDA of £0.13m.
Geoff Thompson said: ”Our initial testing of the European market is showing early positive results and the addition of ICON to the Group provides us with a European footprint from which to expand our services in Europe to the full intermediary procurement model that we employ in the UK. While the opportunity in the UK remains large and our primary focus, we are encouraged with the positive reception to our offering in the European energy markets and look forward to pursuing this opportunity.”
Utilitywise also announced an immediate opportunity for its new acquisition. TGP and Utilitywise have now agreed, subject to contract, to further expand their co-operation. Two contracts are envisaged for delivery by the new Prague operation, each with an initial term running to end of 2016.
Under the first, Utilitywise will implement the final expansion phase of the existing TGP telesales service contract to France from its Prague operation. This is expected to add an additional 20 seat telesales capacity resulting in a total commitment approaching 65 seat capacity.
The second contract relates to co-operation in the German B2B market. Utilitywise will offer its clients, as part of its energy service packages in Germany, exclusive TGP energy products. The two organisations are expecting the combination of products and services to result in very attractive customer propositions that will allow greater market penetration for both businesses. A team of up to 100 Utilitywise resources will be engaged in this joint marketing project over a 2.5 year contract.
On target revenues from these contracts will assure the medium term growth for the new Prague operation and will help the Utilitywise Group to fully exploit the additional capacity created by the Prague acquisition.
TGP Senior Vice President Jon Shead said: “These proposed new co-operations between TGP and Utilitywise re-affirms our confidence in the ability of Utilitywise. We believe in their ability to deliver the types of telephone based services that we need to support our continued growth and delivery of strong customer services. We have worked with Utilitywise over a number of years and we appreciate the strength of their business model and the performance focus of their management.”