The Group ended the half year with a net cash balance excluding
finance leases of GBP2.2m compared to a small net debt figure at 31
January 2014 of GBP0.1m. The cash flow in the period has seen
capital expenditure on the new offices of GBP1.6m which was paid
out of a GBP2m cash contribution to cover this that was received
prior to the year ended 31 July 2014. Other significant cash flows
included a share award related PAYE payment of GBP4m that was made
immediately after the year end. The main trading related item is
the increase in the net accrued revenue balance in the period. This
is to a large extent a result of the contract extension business
undertaken that has seen revenue recognised shown as accrued
revenue. The net accrued revenue balances are discounted at the
cost of debt of our customers which in our case is 3%.
Balance Sheet
As at 31 January 2015 the Group had total net assets of GBP39.6m
compared to GBP29.3m at the end of January 2014. As mentioned
above, property, plant and equipment (PPE) have increased following
the fit out costs associated with the new Head Office. There was no
acquisition activity in the six months and as such the Goodwill and
Intangible Assets balances remained at brought forward levels with
the latter suffering the normal level of amortisation.
The growth in net assets with the exception of the PPE
investment has seen the net accrued revenue balance increase from
GBP10.1m to GBP21.6m. This represents future cash flows which are
contracted by a utility provider with our end user business
customers and which are paid to the Group by the underlying Utility
provider. To a large extent the increase in net accrued revenue has
arisen as a result of the contract extension business undertaken in
our Enterprise division. The net accrued revenue balance has a
maturity profile which has c41% due within one year and the balance
of 59% extending in to the future with c40% due after 31 July 2017.
As we are not an energy supplier, any variability over the cash
flows receivable from the utility provider will only arise if an
end business user defaults or consumes less than 85% of the energy
consumption anticipated at the start of its contract. This is
because the Group recognises 85% of the expected revenue from
energy supply to a business end user at the start of each
contract.
Dividend
The Board is proposing an interim dividend of 1.7p per share
payable on 20(th) June 2015 to shareholders on the register at
close of business on 22 May 2015, with an associated ex-dividend
date of 21 May 2015.
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 2015 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.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. The
condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with International
Accounting Standard 34, "Interim Financial Reporting", as adopted
by the European Union.
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 2015 is not prepared, in all material respects, in
accordance with International Accounting Standard 34, as adopted by
the European Union, and the rules of the London Stock Exchange for
companies trading securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
Location
United Kingdom
Date
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Condensed consolidated statement of total comprehensive income -
Unaudited
Six months Six months Year ended
ended ended
31 January 31 January 31 July
2015 2014 2014
Note GBP GBP GBP
Revenue 3 29,886,253 20,979,641 48,641,855
Cost of sales 16,413,806 11,936,057 26,585,832
Gross profit 13,472,447 9,043,584 22,056,023
Other operating income 126,125 152,704 327,647
Exceptional contingent
consideration release - - 2,000,000
----------- ------------ -------------
Total operating income 126,125 152,704 2,327,647
Administrative expenses 7,192,107 4,978,110 10,621,221
Exceptional items (194,484) - 2,021,790
----------- ------------ -------------
Total administrative
expenses 6,997,623 4,978,110 12,643,011
Profit from operations
before exceptional
items 6,406,465 4,218,178 11,762,449
Exceptional items 194,484 - (21,790)
-------------------------- ----- ----------- ------------ -------------
Profit from operations 6,600,949 4,218,178 11,740,659
Finance income 50,709 4,453 103,697
Finance expense 261,397 174,582 476,393
----------- ------------ -------------
Profit before tax 6,390,261 4,048,049 11,367,963
Tax expense 1,417,318 654,430 2,101,925
----------- ------------ -------------
Profit for the period
attributable to equity
holders of the parent
company 4,972,943 3,393,619 9,266,038
Other comprehensive
income (net of tax)
Items to be reclassified
to profit or loss
in subsequent periods 159,641 - (77,308)
Total comprehensive
income attributable
to equity holders
of the parent company 5,132,584 3,393,619 9,188,730
Earnings per share
for profit attributable
to the owners of the
parent during the
period
Basic 6 0.067 0.047 0.127
Diluted (pence) 6 0.065 0.044 0.121
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