Interim Results to 31 January 2017

Interim Results to 31 January 2017

Utilitywise today announced interim results to 31 January 2016.

Press Release

Utilitywise, a leading independent utility cost management consultancy, is pleased to announce its financial results for the six months ended 31 January 2017.

Financial highlights

H1 2017
H1 2016 % change
Revenue£46.1m£41.6m11%
Adjusted EBITDA1£9.7m£9.7m
Adjusted profit before tax2£9.4m£9.1m54%
Adjusted fully diluted earnings per share39.6p9.6p5
Interim dividend per share2.3p2.2p5%
Closing net debt£9.6m£16.8m (*)5(43%)%

(*) Closing net debt impacted by prior period adjustments (see ‘Financial performance’)

Operational highlights:

  • Strong performance from Enterprise division:
    • Revenue added to order book4 during the period increased by 24% to £50.2m (H1 2016: £40.4m), from increase in Energy consultants headcount 6% to 661 (H1 2016: 625)
    • Future secured revenue increased 13% to £28.0m (H1 2016: £24.7m)
  • Investment in ‘smart’ building energy management technology and services to drive future growth in Corporate division
  • Total group customers increased by 17% to 40,855 (H1 2016: 35,064)
  • Customer advocacy remains high with Net Promoter Score of 59 (FY16: 58)

Post period end highlights:

  • Geoff Thompson becomes Non-executive Chairman
  • Appointment of Kathie Child-Villiers to the Board as non-executive director
  • Announcement of refreshed Strategy for Growth
  • Commitment to continue to pursue best possible terms with suppliers for procurement price competitiveness
  • De-regulation of water market in England

Brendan Flattery, Chief Executive of Utilitywise, commented:

“The Group has continued its sustained progression in the period, whilst investing and preparing the Group for its next phase of growth. With an extensive portfolio of services in place and a focus on providing a great customer experience, Utilitywise has a strong platform for continued growth.

There continues to be an increasing opportunity for us on both sides of the meter – from providing independent advice on tariffs and helping customers get a better deal on their energy procurement, to providing technology that helps them monitor and reduce energy consumption as well as ensuring compliance and saving money.

In order to further strengthen the Group’s commercial prospects, the Board has taken the strategic decision to discontinue the practice of taking cash advances from suppliers, as well as increasing the transparency of the balance sheet through a number of prior period restatements and the non-cash impairment of our investment in t-Mac.  The decision to discontinue cash advances from suppliers and the prior period adjustments will have a one-off impact on net debt but puts the Group in a stronger position to achieve its future growth ambitions.

Against this market backdrop, the Group’s refreshed strategy is aimed at growing customer numbers, cross and upselling its increasing suite of products to those customers, and increasing recurring revenues as a percentage of Group revenues.  There are ambitious KPIs in place and the Group is focused on delivery of those.

With clarity of strategy, ambition and focus, Utilitywise enters the period ahead with confidence and looks forward to full year trading in line with expectations and driving longer-term shareholder value.”

1 EBITDA means earnings before interest, taxation, depreciation and amortisation and adjusted EBITDA is stated before exceptional income and costs and non-cash accounting charges for share based payments, as set out in the financial review
2 Adjusted profit before tax is stated before exceptional income and costs, non-cash accounting charges for share based payments and amortisation of intangible assets acquired through business combinations, as set out in the financial review
3 Adjusted earnings per share is stated before exceptional income and costs, non-cash accounting charges for share based payments and amortisation of intangible assets acquired through business combinations and the tax impact of those items, as set out in Note 6
4 Order book means total value of closed transactions in the period, which may either be included within revenue in the period or is included within future secured revenue
5 Restated, as set out in the financial review and in Note 10.

There will be a meeting for analysts at 9.30am today at the offices finnCap, 60 New Broad Street, London EC2M 1JJ. To register to attend, please contact Redleaf Communications at utilitywise@redleafpr.com or 020 7382 4730.

Read our full results here.

For further information:

Utilitywise PLC0330 303 0233
Brendan Flattery (CEO)
Richard Laker (CFO)
finnCap (NOMAD and broker)020 7220 0500
Matt Goode / Henrik Persson (Corporate Finance)
Simon Johnson (Corporate Broking)
Liberum (Joint broker)020 3100 2000
Robert Morton / Steve Pearce
Redleaf Communications020 7382 4730
Rebecca Sanders-Hewett / David Ison / Susie Hudson

About Utilitywise

Utilitywise is a leading independent utility cost management and services consultancy based in Newcastle. The Group has established trading relationships with a number of major UK and European 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.

Utilitywise

Posted by on Tuesday, the 4. April at 7.07

Utilitywise has been helping businesses manage their business utilities since 2006. With over 40,000 customers across Europe, we help businesses save time, save effort and save money by reducing their energy and water consumption.