Utilitywise plc (AIM:UTW), the leading independent utility cost management consultancy, today provides an update on trading for the six months ended 31 January 2015.
(“Utilitywise” or the “Company”)
The Board is pleased to confirm that the Company has performed in line with management expectations during the period.
As a result of the strong growth in the Company’s customer base since IPO and following the introduction of new, longer term energy supply contracts by several energy suppliers, an opportunity arose to strengthen customer relationships whilst securing revenue, profit and cash flow over the longer term for the Company. Utilitywise sought to capitalise on the opportunity that this presented and temporarily switched focus onto extending and renewing energy contracts for its existing customers during the period, continuing a trend which commenced in the second half of FY2013/14. The introduction of the longer term energy supply contracts allowed Utilitywise’s customers to secure further price certainty and take advantage of the recent falls in energy prices.
Revenues from extensions of existing customer contracts are recognised as they are secured, not added to the new customer pipeline. As would therefore be anticipated, the Group revenue pipeline was lower as at 31 January 2015 and stood at £23.5 million from £28.2 million as at 31 July 2014 and £23.8 million as at 31 January 2014. In the second half, it is expected that the revenue mix will revert to more normal patterns. The change in revenue mix did not impact cash, revenue or profitability in the first half.
Geoff Thompson, Chief Executive of Utilitywise, commented: “During the period we seized a unique opportunity to lock in significant future revenues, profits and cashflows whilst providing our customers with long term price security. Going forward, our efforts will revert to focusing on the acquisition of new customers in our highly fragmented target markets. We expect to report a significant increase in both revenue and profits for the full year in line with previous expectations.”
Notice of Results
Utilitywise will announce its interim results for the six months ended 31 January 2015 on Tuesday, 21st April 2015.
For further information please contact:
|Utilitywise PLC||0870 626 0559|
|Geoff Thompson (CEO)|
|Andrew Richardson (Deputy CEO)|
|Jon Kempster (CFO)|
|finnCap (NOMAD and broker)||020 7220 0500|
|Matt Goode / Charlotte Stranner (Corporate Finance)|
|Simon Johnson (Corporate Broking)|
|Redleaf Communications||020 7382 4730|
|Rebecca Sanders-HewettEmma Kane|
Utilitywise is a leading independent utility cost management consultancy based in North Tyneside. The Group has established trading relationships with a number of major UK energy suppliers and provides services to its customers designed to assist them in achieving better value out of their energy contracts, reduced energy consumption and lower carbon footprint.
Businesses large and small rely on Utilitywise for their energy management needs. Clients range in size from single site SME’s to multinationals with thousands of sites and cover the whole of the UK. In total, Utilitywise has over 22,000 customers and manages an overall energy consumption of approaching 20 terra watt hours per annum.