TIDMUTW
RNS Number : 7123F
Utilitywise plc
29 April 2014
Under embargo until 7am, 29 April 2014
Utilitywise plc
("Utilitywise" or the "Company")
Interim Results
for the six months ended 31 January 2014
Utilitywise, a leading independent utility cost management
consultancy is pleased to announce its financial results for the 6
months ended 31(st) January 2014.
Financial Highlights
-- Revenue increased 105% to GBP21m (H1 2013: GBP10.2m)
-- Gross profit increased 110% to GBP9.0m (H1 2013: GBP4.3m)
-- Adjusted EBITDA* increased 135% to GBP5.4m (H1 2013: GBP2.3m)
-- Adjusted Pre-tax profit** increase of 133% to GBP4.9m (H1 2013: GBP2.1m)
-- 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 GBP16.8m (H1 2013:
GBP10.2m) and adjusted EBITDA increased 78% to GBP4.1m* (H1 2013:
GBP2.3m*), after removing the effect of the acquisitions of Energy
Information Centre Ltd and Aqua Veritas Consulting Ltd.
*Adjusted for share based payments of GBP411k (H1 2013: adjusted
for share based payments of GBP87k)
** Adjusted for share based payments of GBP411k and amortisation
of IFRS3 intangibles of GBP452k (H1 2013: adjusted for share based
payments of 87k)
*** Adjusted for share based payments of GBP411k, amortisation
of IFRS3 intangibles of GBP452k and the tax impact of those
adjustments of (GBP181k) (H1 2013: adjusted for share based
payments of 87k)
Corporate Highlights
-- 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 GBP27m of new business secured in H1 2014 a 107%
increase on H1 2013, with gross unrecognised secured revenue of
GBP23.8m (31 January 2013: GBP8.5m) waiting to go live
-- Successful integration of the recent acquisitions to create a
new Utility Management Services Division, delivering GBP4.5m of
revenue (H1 2013: GBP0.4m), 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, commented:
"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.
"Alongside the impressive organic growth achieved we have
successfully created value through strategic acquisitions. We
continue to investigate potential acquisitions to broaden our
energy services offering and increase shareholder value.
"In light of the on-going debate over energy costs, and the keen
interest being shown in the sector by government and the regulator,
Utilitywise is well positioned to provide commercial customers of
all sizes with the right energy solutions to meet their individual
needs."
For further information:
Utilitywise PLC 0870 626 0559
Geoff Thompson, CEO
Andrew Richardson, CFO
finnCap (NOMAD and broker) 020 7220 0500
Matt Goode / Charlotte Stranner / Henrik
Persson
(Corporate Finance)
Simon Johnson (Corporate Broking)
Newgate Threadneedle 020 7653 9850
Josh Royston /John Coles/ Hilary Millar
About Utilitywise
Utilitywise is a leading independent utility cost management
consultancy based in South Shields, Tyne and Wear. The Company 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 high street shops to
multinationals with thousands of sites and cover the whole of the
UK. In total, Utilitywise has over 17,000 customers and manages an
overall energy consumption of approaching 20 terra watt hours per
annum.
Utilitywise is a UK company quoted on the AIM market of the
London Stock Exchange. For more information, please visit
www.utilitywise.com.
Chief Executive's Statement
I am pleased to report on the continued strong performance of
the Group delivering another period impressive revenue and profit
growth and making good progress on a number of strategic goals.
The growth we achieved during the period demonstrates the
importance of our proposition to commercial customers and is driven
by the continued controlled expansion of our team of energy
consultants to meet the demand. We have grown this team by 34% over
the prior six month period, bringing the total number of energy
consultants to 347 as at the end of January 2014.
We continued to increase our contracted customers during the
period increasing the total customer base to 17,903 as at 31
January 2014. This represents an increase of 36% when compared to
31 January 2013. We have seen a continued improvement in our
renewal rate to 74% by meter volume for our SME customers and 89%
for our Industrial and Commercial (I&C) customers serviced from
our newly created Utility Management Services Division.
Investment in our products and services has continued during the
period. Our IP is an integral part of our business proposition and
we remain committed to the ongoing development and innovation of
our unique energy management solutions portfolio. In particular we
have:
-- Launched Quantum, the next generation of our CRM solution Darwin
-- Continued to improve Utility Insight, our multi-utility
reporting solution, which now has extensive functionality providing
customers with alarms and alerts when consumption thresholds and
erroneous patterns of consumption are detected
-- Initiated patents pending on Volthammer the Group's new Voltage Optimisation solution
-- Further improved our proprietary Energy Auditing Software
Following our successful acquisitions over the last 18 months,
the Group now operates as two distinct divisions; namely our
Procurement Services division and our Utility Management Services
division. As such, the Board are required under International
Financial Reporting Standard 8: Operating Segments (IFRS 8) to
provide segmental analysis on the two divisions within the
Group.
Procurement Services
Our Procurement Services division is the foundation of the
Utilitywise business. We have well established trading
relationships with a number of major UK energy suppliers and
provide services to our customers designed to assist them achieve
better value from their energy contracts. Utilitywise negotiates
rates with energy suppliers on behalf of business customers and
provides an account care service.
Utility Management Services
The Utility Management Services division consists of a broad
array of products and services designed to assist companies of all
sizes manage their energy consumption. This division has achieved
growth in the period following the successful acquisitions of
utility management businesses, and now accounts for 21% of the
Group's total revenue.
We have continued to invest in the Utility Management Services
division, created from the integration of Clouds, Aqua Veritas and
EIC, with additional business development and energy solution
resource. It is pleasing to see this division performing in line
with our expectations with a growing number of new business
wins.
Our relationship with the UK Energy Supply companies remains
strong and as a result we have secured important new commercial
terms with a number of suppliers during the period. We continue to
work closely with them to provide innovative energy solutions for
the benefit of our customers. Work has been ongoing during the
period to create exciting new products that provide SME customers
with a more flexible approach to energy procurement combined with
integrated consumption management advice. These new product
innovations branded 'The Energy Alliance' are due for launch early
in H2 2014.
KPIs
6 months
6 months to to January
January 2014 2013 Change
Energy consultants at period end 347 259 34%
Contracts secured in period 15,306 12,178 26%
Gross secured future unrecognised
revenue at period end* GBP23.8m GBP8.5m 180%
Total Group customers 17,903 13,121 36%
* where gross secured future unrecognised revenue does not take
into account the time value of money, and as such may not be fully
released to the income statement
People
We remain committed to attracting the right talent and to
developing the skills of our people so that our customers benefit
from our knowledge and experience and the quality of service we
provide. As detailed previously, a key focus in the first half has
been the continued recruitment of Energy Consultants to support our
organic growth and we have added a further 88 Energy Consultants in
the first half.
Our new training academy continues to ensure that all of our
people have the appropriate knowledge and skills to service our
clients with our full range of products and services.
Acquisitions
It is our aim to enhance our organic growth with selected
acquisitions to broaden and develop our product and service
offering. Progress has been made in this regard with a clear
strategic focus on Energy Control and Demand Response as
capabilities we intend to develop via acquisition.
Additionally, we intend to further develop our European
capabilities to leverage the opportunities we have identified in
France, Germany and other key European markets.
Compliance and Quality Assurance Process
Given the current scrutiny of the wider energy market,
Utilitywise remains committed to ensuring that its compliance and
quality assurance processes are best in class standard. We have a
number of procedures in place to ensure that our sales processes
and staff behaviours are compliant with our quality assurance
requirements and meet energy suppliers' compliance procedures. This
includes training, coaching and documentation of our compliance
procedures, as well as checks on all sales documentation and random
checks on call recordings. A percentage of our sales documentation,
including call recordings, is also quality checked by energy
suppliers. We remain focused on both our internal and external
procedures and thereby maintain our status of trusted partners to
energy suppliers and customers alike.
Principal Risks and Uncertainties
There have been no changes to the principal risks and
uncertainties identified in the annual financial statements for the
year ended 31 July 2013.
Outlook
These interim 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. Despite
this growth, we believe we still only have market penetration of
under 2%.
We have good visibility over future revenue and a healthy
pipeline of new business, which, combined with the growing sales
momentum from our recently expanded team of energy consultants,
leaves us confident in the future prospects of the business and a
successful outcome for the full year.
Financial Review
Income Statement
During the six month period ended 31 January 2014 revenue
increased by 105% over the corresponding period last year to
GBP21.0 million. A like for like comparison (excluding the impact
of the acquisitions of Energy Information Centre Ltd and Aqua
Veritas Consulting Ltd) further illustrates the growth in the
business with revenues increasing by 65% to GBP16.8m reflecting the
continued investment in energy consultant expansion with heads
growing by 34% in the six months to 347.
The successful strategy of increasing energy consultant
headcount is further evidenced by the increase in gross secured
future revenue rising to GBP23.8 million from GBP8.5 million at
January 2013, a 180% increase and GBP16.6 million at July 2013, a
43% increase. Approximately 76% of gross secured future revenue as
at January 2014 will be recognised over the next 12 months.
Gross Margins are at 43% remaining in line with H1 2013 (42%),
after another period of energy consultant growth. The increase in
the secured future unrecognised revenue is a direct function of the
productivity of these energy consultants.
Adjusted EBITDA, defined as EBITDA adjusted for share based
payments for the period was GBP5.4 million, an increase of GBP3.1
million (135%) on the period to 31 January 2013 - with a like for
like increase of GBP1.8 million (78%). The business has been
reported on a segmental basis for the first time reflecting the
increasing utility management services delivered to customers by
the enlarged group. As at the half year GBP4.5 million (21%) of
group revenue and GBP1.0 million (25%) of group adjusted profit
before tax was attributable to our newly formed Utility Management
Services Division. Our Procurement Services Division produced
revenue of GBP16.5million and adjusted profit before tax of GBP3.9
million.
Cash and Borrowings
The Group has invested GBP2.3 million of cash for operations
during the six month period as it pursues its energy consultant
headcount growth, the infrastructure to support future growth and
investment in utility management products and services. This has
resulted in a period end net negative cash balance of GBP0.1
million, in line with expectations. This trend will improve in the
second half as revenues and cashflow from this investment in talent
and infrastructure follow and the effects of second half supplier
tranche payments take effect.
Balance Sheet
As at 31 January 2014 the Group had total non-current assets of
GBP35.9 million (GBP9.6 million as at 31 January 2013) which
include GBP13.7 million of goodwill (GBP3.4 million as at 31
January 2013) and GBP6.5 million of intangible assets (GBP0.0
million 31 January 2013) following investment in acquisitions. The
balance also includes fixed assets of GBP4.8 million (GBP0.9
million as at 31 January 2013) and GBP11.0 million trade and other
receivables (GBP5.2 million as at 31 January 2013) reflecting the
above investment in continued business expansion.
Inventory increases reflect expansion in the utility management
services division and include holding stock of eddie energy
monitoring units. Current trade and other receivables stood at
GBP11.7 million as at 31 January 2014, (GBP4.3 million at 31
January 2013) including GBP3 million of trade debtors (GBP1.8
million 31 January 2013) .Total current liabilities stood at
GBP14.8 million (GBP4.3 million 31 January 2013).
Net assets were GBP29.3 million as at 31 January 2014, compared
to GBP12.5 million as at 31 January 2013.
Dividend
The Board is proposing an interim dividend of 1.2p per share
payable on 9(th) June 2014 to shareholders on the register at close
of business on 9 May 2014, with an associated ex-dividend date of 7
May 2014
INDEPENDENT REVIEW REPORT TO UTILITYWISE PLC
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 31 January 2014 which comprises the condensed
consolidated statement of total comprehensive income, the condensed
consolidated statement of financial position, the condensed
consolidated statement of changes in equity, the condensed
consolidated cash flow statement and related notes.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 31
January 2014 is not prepared, in all material respects, in
accordance with the rules of the London Stock Exchange for
companies trading securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
United Kingdom
28 April 2014
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Condensed consolidated statement of total comprehensive income -
Unaudited
6 months ended 6 months ended Year ended
31 January 31 January 31 July 2013
2014 2013
Note GBP GBP GBP
Revenue 3 20,979,641 10,217,183 25,256,142
Cost of sales 11,936,057 5,917,657 13,119,386
Gross profit 9,043,584 4,299,526 12,136,756
Other operating income 152,704 54,679 142,739
Administrative expenses 4,978,110 2,350,258 5,194,916
Exceptional items 4 - - 826,935
------------------------------------ ----- --------------- --------------- -------------
Total administrative expenses 4,978,110 2,350,258 6,021,851
Profit from operations 4,218,178 2,003,947 6,257,644
Interest received 4,453 26,279 41,296
Interest and finance costs 174,582 32,725 83,521
--------------- --------------- -------------
Finance expense 170,129 6,446 42,225
Profit before tax 4,048,049 1,997,501 6,215,419
Tax expense 654,430 519,350 1,457,213
Profit for the period attributable
to equity holders of the
parent company 3,393,619 1,478,151 4,758,206
Other comprehensive income
(net of tax) - - -
Total comprehensive income
attributable to equity holders
of the parent company 3,393,619 1,478,151 4,758,206
Earnings per share for profit
attributable to the owners
of the parent during the
period
Basic 6 0.047 0.024 0.075
Diluted (pence) 6 0.044 0.023 0.071
Condensed consolidated statement of financial position -
Unaudited
31 January 31 January 31 July 2013
2014 2013
restated
Note GBP GBP GBP
----------- ------------- -------------
Non-current assets
Property, plant and
equipment 7 4,755,316 947,778 4,795,670
Goodwill 13,697,092 3,352,869 13,697,092
Intangible assets 6,501,600 32,235 6,943,854
Trade and other receivables 10,965,406 5,211,897 7,269,680
Deferred tax asset - 25,781 -
Total non-current assets 35,919,414 9,570,560 32,706,296
----------- ------------- -------------
Current assets
Inventories 118,966 52,989 80,825
Trade and other receivables 11,703,081 4,324,136 8,554,629
Cash and cash equivalents 4,853,908 4,951,295 9,014,680
Total current assets 16,675,955 9,328,420 17,650,134
----------- ------------- -------------
Total assets 52,595,369 18,898,980 50,356,430
----------- ------------- -------------
Current liabilities
Trade and other payables 13,625,753 3,351,662 12,644,484
Loans and borrowings - - 1,252
Corporation tax liability 1,141,298 974,057 1,357,362
------------- -------------
Total current liabilities 14,767,051 4,325,719 14,003,098
----------- ------------- -------------
Non-current liabilities
Trade and other payables 3,491,821 2,048,790 4,669,308
Loans and other borrowings 5,000,000 - 5,000,000
Deferred tax liability 15,115 - 1,373,466
Total non-current liabilities 8,506,936 2,048,790 11,042,774
----------- ------------- -------------
Total liabilities 23,273,987 6,374,509 25,045,872
----------- ------------- -------------
Net assets 29,321,382 12,524,471 25,310,558
----------- ------------- -------------
Equity attributable
to equity holders of
the company
Called up share capital 8 72,445 61,821 71,858
Share capital to be
issued 8 - 253 -
Share premium 11,256,678 6,187,598 10,864,765
Merger reserve 5,684,693 299,605 5,684,693
Merger reserve on shares
to be issued 8 - 192,247 -
Share option reserve 1,757,626 108,108 228,916
Retained earnings 10,549,940 5,674,839 8,460,326
Total equity 29,321,382 12,524,471 25,310,558
----------- ----------- -----------
Condensed consolidated statement of changes in equity -
Unaudited
Merger
Share reserve
capital on shares Share
Share to be Share Merger to be option Retained
capital issued premium reserve issued reserve earnings Total
GBP GBP GBP GBP GBP GBP GBP GBP
--------- --------- ------------ ---------- ----------- ------------ ------------ ------------
At 1 August
2012 61,426 - 6,187,598 - - 20,952 4,814,894 11,084,870
Profit for
the period - - - - - - 4,758,206 4,758,206
Other - - - - - - - -
comprehensive
income
--------- --------- ------------ ---------- ----------- ------------ ------------ ------------
Total
comprehensive
income - - - - - - 4,758,206 4,758,206
Dividends
paid - - - - - - (1,112,770) (1,112,770)
Share option
expense - - - - - 207,964 - 207,964
Issue of
shares 10,432 - 4,995,000 5,684,693 - - - 10,690,125
Share issue
costs - - (317,833) - - - - (317,833)
--------- --------- ------------ ---------- ----------- ------------ ------------ ------------
Equity as
at 31 July
2013 71,858 - 10,864,765 5,684,693 - 228,916 8,460,326 25,310,558
At 1 August
2012 61,426 - 6,187,598 - - 20,952 4,814,894 11,084,870
Profit for
the period - - - - - - 1,478,151 1,478,151
Dividends
paid - - - - - - (618,206) (618,206)
Issue of
shares 395 - - 299,605 - - - 300,000
Share option
expense - - - - - 87,156 - 87,156
Shares to
be issued - 253 - - 192,247 - - 192,500
Equity as
at 31 January
2013 61,821 253 6,187,598 299,605 192,247 108,108 5,674,839 12,524,471
At 1 August
2013 71,858 - 10,864,765 5,684,693 - 228,916 8,460,326 25,310,558
Profit for
the period - - - - - - 3,393,619 3,393,619
Other - - - - - - - -
comprehensive
income
--------- --------- ------------ ---------- ----------- ------------ ------------ ------------
Total
comprehensive
income - - - - - - 3,393,619 3,393,619
Dividends
paid - - - - - - (1,304,005) (1,304,005)
Share option
expense - - - - - 411,231 411,231
Deferred tax
on share
options - - - - 1,117,479 - 1,1,117,479
Issue of
shares 587 - 391,913 - - - - 392,500
Equity as
at 31 January
2014 72,445 - 11,256,678 5,684,693 - 1,757,626 10,549,940 29,321,382
Condensed consolidated cash flow statement - Unaudited
6 months ended 6 months ended Year ended
31 January 31 January 2013 31 July 2013
2014
GBP GBP GBP
------------------ ------------------ -------------------
Operating activities
Profit before tax 4,048,049 1,997,501 6,215,419
Interest paid 174,582 32,725 83,521
Interest received (4,453) (26,279) (41,296)
Depreciation of property,
plant and equipment 332,558 148,513 332,911
Share option expense 411,231 87,156 207,964
Grant income (18,000) (18,000) (36,000)
Amortisation of intangible
assets 455,841 27,288 191,406
------------------ ------------------
5,399,808 2,248,904 6,953,925
(Increase)/Decrease in trade
and other receivables (6,844,178) (6,324,744) (11,209,146)
(Increase)/Decrease in inventories (38,140) 45,632 17,796
Increase/(Decrease) in trade
and other payables (205,405) 2,131,035 7,142,642
------------------ ------------------ -------------------
(6,676,914) (4,148,077) (4,048,708)
Cash generated/(used) in
operations (1,277,106) (1,899,173) 2,905,217
------------------ ------------------ -------------------
Income taxes paid (1,111,241) (250,000) (1,206,853)
Net cash flows from operating
activities (2,388,347) (2,149,173) 1,698,364
------------------ ------------------ -------------------
Investing activities
Purchase of property, plant
and equipment (292,204) (291,215) (467,063)
Purchase of intangibles (13,587) (14,471) (57,557)
Acquisition of subsidiary,
net of cash acquired - (196,669) (8,997,012)
Consideration paid (192,500) - -
Net cash used in investing
activities (498,291) (502,355) (9,521,632)
------------------ ------------------ -------------------
Financing activities
Issue of shares 200,000 - 5,000,000
Share issue costs - - (317,833)
Dividends paid (1,304,005) (618,206) (1,112,770)
Loans repaid/ advances - (24) (24)
Loans received - - 5,000,000
Interest paid (174,582) (32,725) (220)
Interest received 4,453 26,279 41,296
------------------ -------------------- ------------------
Net cash raised/ used in
financing activities (1,274,134) (624,676) 8,610,449
------------------ -------------------- ------------------
Net increase/ decrease in
cash and cash equivalents (4,160,772) (3,276,204) 787,181
Cash and cash equivalents
at beginning of period 9,014,680 8,227,499 8,227,499
-------------------- ------------------
Cash and cash equivalents
at end of period 4,853,908 4,951,295 9,014,680
------------------ -------------------- ------------------
Notes
1. Accounting policies
The condensed consolidated interim financial information should
be read in conjunction with the annual financial statements for the
year ended 31 July 2013, which have been prepared in accordance
with International Financial Reporting Standards ("IFRS") as
adopted by the European Union.
The interim financial information for each of the six month
periods ended 31 January 2014 and 31 January 2013 has not been
audited and does not constitute statutory accounts within the
meaning of Section 435 of the Companies Act 2006. The information
for the year ended 31 July 2013 does not constitute statutory
accounts within the meaning of Section 435 of the Companies Act
2006, but is based on the statutory financial statements for that
year, on which the auditors have reported. Their audit report was
unqualified, did not include references to any matters to which the
auditors drew attention by way of emphasis without qualifying their
report and did not contain a statement under Section 498 (2) or (3)
Companies Act 2006.
During the preparation of the financial statements for the year
ended 31 July 2013, management reviewed the discount rate applied
to the expected future cash flows from revenue. After due
consideration, management now believe that the discount rate of 9%
previously applied was a misstatement and did not appropriately
reflect the risk associated with this revenue. The discounting rate
has therefore been revised to 3% to more accurately reflect the
risk of trading with blue-chip energy companies. Management
consider it appropriate to reflect this as a prior period
adjustment to the financial position in the prior period interim
results. There is no impact on actual cash flows.
The principle accounting policies have been applied consistently
to all years and are set out below.
2. Basis of preparation
Utilitywise Plc is incorporated and domiciled in the United
Kingdom.
The accounts for the periods have been prepared in accordance
with International Accounting Standard 34 "Interim Financial
Reporting" and the accounting policies are consistent with those of
the annual financial statements for the year ended 31 July 2013 and
those envisaged for the financial statements for the year ending 31
July 2014. The Group has not adopted any standards or
interpretation in advance of the required implementation dates. It
is not anticipated that the adoption in the future of the new or
revised standards or interpretations that have been issued by the
International Accounting Standards Board will have a material
impact on the Group's earnings or shareholders' funds.
The financial statements have been prepared on a going concern
and historical cost basis as stated in the accounting policies.
There have been no changes in accounting policies. All policies are
in line with the year ended 31 July 2013 and we do not anticipate
any further changes for the year ended 31 July 2014.
3. Segment information
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision maker has been identified as the
management team including the Chief Executive Officer, Chief
Operating Officer and Chief Financial Officer. The Group reports to
the Board under both UK GAAP and IFRS. Underlying accounting
information is prepared under UK GAAP and the below adjustments to
take results to IFRS are made for the purpose of reporting to the
Board and external reporting.
During the current period the Group offered both procurement and
utility management services. The Board considers that the services
were offered form two distinct segments in the current period.
Operating segments are determined based on the internal
reporting information and management structure within the Group.
Information regarding the results of the reportable segment is
included below. Performance is based on segment operating profit or
loss before share-based payment charges, depreciation, amortisation
and acquisition costs, as reported in the internal management
reports that are reviewed by the CODM. The segment operating profit
or loss is used to measure performance. Revenues disclosed below
represent revenues to external customers.
6 months ended 6 months ended Year ended
31 January 31 January 31 July
2014 2013 2013
GBP GBP GBP
Revenue
Procurement Services (UK
GAAP) 16,715,464 10,155,217 23,902,261
Utility Management Services
(UK GAAP) 4,093,689 372,006 1,602,077
IFRS adjustments 170,488 (310,040) (248,196)
--------------- --------------- -----------
Total Group revenue 20,979,641 10,217,183 25,256,142
=============== =============== ===========
6 months ended 6 months ended Year ended
31 January 31 January 31 July
2014 2013 2013
Profit before tax GBP GBP GBP
Procurement Services (UK
GAAP) 3,604,832 2,309,695 5,784,521
Utility Management Services
(UK GAAP) 508,132 7,127 145,323
IFRS adjustments (64,915) (319,321) 285,575
--------------- --------------- -----------
Total Group profit before
tax 4,048,049 1,997,501 6,215,419
=============== =============== ===========
6 months ended 6 months ended Year ended
31 January 31 January 31 July
2014 2013 2013
Net assets GBP GBP GBP
Procurement Services (UK
GAAP) 25,653,224 12,605,293 24,393,737
Utility Management Services
(UK GAAP) 1,668,305 124,835 1,164,500
IFRS adjustments 1,999,853 (205,657) (247,679)
--------------- --------------- -----------
Group net assets 29,321,382 12,524,471 25,310,558
=============== =============== ===========
Other information
6 months ended 6 months ended Year ended
31 January 2014 31 January 2013 31 July 2013
GBP GBP GBP
---------------- ---------------- -------------
Revenue arises from:
Provision of services 20,979,641 10,217,183 25,256,142
================ ================ =============
Analysis of concentration
of customers (Energy
suppliers)_top 3 and
other:
Customer 1 5,057,249 2,467,566 4,558,216
Customer 2 3,786,583 1,849,892 3,859,520
Customer 3 2,161,125 1,748,118 3,740,411
Other suppliers 9,974,684 4,151,607 13,097,995
20,979,641 10,217,183 25,256,142
================ ================ =============
4. Exceptional items
Exceptional items in the year ended 31 July 2013 relate to the
costs incurred in the acquisitions of Clouds Environmental
Consultancy Limited, Aqua Veritas Consulting Limited and Energy
Information Centre Limited. Costs associated with share issues have
been taken to the share premium account. Please see the
Consolidated Statement of Changes in Equity. Exceptional items are
included in the administrative expenses in the income
statement.
5. Dividends
6 months ended 6 months ended 12 months ended
31 January 31 January 31 July 2013
2014 2013
GBP GBP GBP
Final dividend of 1
pence per ordinary share
proposed and paid during
the period relating
to the previous year's
results 1,304,005 618,206 1,112,770
6. Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares in issue to assume the
conversion of all potentially dilutive ordinary shares.
The Group has potentially dilutive ordinary shares: those share
options granted to employees where the exercise price is less than
the average market price of the Company's ordinary shares during
the period.
6 months ended 6 months ended 12 months ended
31 January 2014 31 January 2013 31 July 2013
GBP GBP GBP
Profit
Profit used in calculating
basic and diluted
profit 3,393,619 1,478,151 4,758,206
Number of shares
Weighted average number
of shares for the
purpose of basic earnings
per share 71,998,063 61,688,999 63,220,550
Effects of:
Employee share options
and warrants 3,951,020 2,896,773 3,109,573
Contingent shares
to be issued 1,249,940 168,859 315,315
Weighted average number
of shares for the
purpose of diluted
earnings per share 77,199,023 64,754,631 66,645,438
7. Property, plant and equipment
During the six months ended 31 January 2014 the group incurred
property, plant and equipment additions of GBP292,204 (HY 2013:
GBP291,215).
GBP
8. Share capital
6 months ended 6 months ended Year ended
31 January 31 January 31 July
2014 2013 2013
Share capital issued
and fully paid
72,444,699 Ordinary
shares of GBP0.001
each 72,444 61,821 71,858
--------------- --------------- -----------
Ordinary shares carry the right to one vote per share at general
meetings of the Company and the rights to share in any distribution
of profits or returns of capital and to share in any residual
assets available for distribution in the event of a winding up.
During the period ending 31 January 2014 333,332 warrants were
exercised, which resulted in additions to share capital of GBP333
and additions to share premium of GBP199,667.
During the period ending 31 January 2014 253,289 were issued as
deferred consideration on the acquisition of Clouds Environmental
Consultancy Limited which took place in October 2012.This resulted
in additions to share capital of GBP253 and additions to share
premium of GBP192,247.
During the period ending 31 January 2014 the company set up a
further Save As You Earn scheme (SAYE), Long Term Incentive Plan
(LTIP) and Company Share Option Plan (CSOP). A total of 2,181,348
options were issued. These carry an average exercise price of
GBP1.403 per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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