Utilitywise plc Trading Update (4699G)
August 08 2016 - 1:00AM
UK Regulatory
TIDMUTW
RNS Number : 4699G
Utilitywise plc
08 August 2016
8 August 2016
Utilitywise plc
("Utilitywise" or the "Group")
Trading update
Utilitywise plc (AIM:UTW), the leading independent utility cost
management consultancy, today provides an update on trading for the
year ended 31 July 2016.
The Group expects to report significant revenue growth in the
period with revenues of at least GBP82m (GBP69.1m 2015). Adjusted*
Group EBITDA is expected to be greater than GBP18m (GBP17.8m 2015).
Net debt at year end was GBP0.2m (2015: GBP6.7m) as progress with
improved commercial terms in our Enterprise division yielded some
improvement in cash flow. As previously reported this is expected
to continue into FY17.
Enterprise
The Enterprise division continued to grow its contracted
customer base, increasing total Enterprise customer numbers by 21%
to 30,552 as at 31 July 2016 (2015: 25,185). In the year
approximately 75% (2015: 62%) of revenues came from new customers.
Overall Enterprise revenue added to order book during the period
increased by 35% to GBP84.5m (2015: GBP62.7). Future secured
revenue was GBP25.6m as at 31 July 2016 compared to GBP24.7 million
at 31 January 2016. The Energy Consultant headcount at 31 July 2016
was 625 up from 610 a year earlier.
As announced at the half year, staff attrition has continued to
be a challenge. Although the actions taken to address the staff
attrition are well underway, it has had an impact on the
performance of this division in the period. However, we are already
seeing the benefits of the actions that we have taken and we
therefore expect energy consultant headcount to increase in the new
financial period, as previously indicated.
The Enterprise division has continued to invest in the
multi-channel route to customer acquisition which we expect will
drive productivity improvements going forward. Whilst the
investment in building the Group's multi-channel approach has
increased costs in the short term, this will drive customer
acquisition and assist the actions taken to reduce attrition.
The European business has performed well in the year and will
achieve the break even position targeted. The customer base has
increased in line with our expectations and will be built upon
whilst targeting an improvement in the revenue per Energy
Consultant in the year ahead.
Steve Attwell who was brought into the Enterprise Division to
commence the transformation of the division has left the Group with
immediate effect to pursue opportunities in the technology sector
and has been replaced by Chris Charlton who will steer the division
through this exciting growth period. Chris has been with the
business for six years and has held a number of senior positions
throughout this period.
Corporate
The Corporate division has traded satisfactorily and as with
Enterprise, the division is going through a major transformation as
it builds upon the t-mac acquisition to provide the wider Energy
Services capability. The roll out of the "smartdash" data analytics
software we acquired with t-mac is continuing, and a plan is
underway to roll out the software to all customers, as we arrange
installation of their AMR Smart Meter. The partnership with Dell to
introduce Internet of Things (IoT) Building Automation solutions to
customers is progressing well with trials underway and we see a
significant opportunity to roll this out to both new and existing
customers.
Group
We will continue to invest in the business in the new financial
year ahead to drive the next phase of growth for the Group. We
expect to see revenues, EBITDA and cash flow grow across the two
divisions aided by the headcount growth and the emerging Energy
services opportunities.
Geoff Thompson, Chief Executive of Utilitywise, commented:
"Whilst we have seen significant revenue growth and increased
customer numbers in the period, it has been a challenging year with
staff attrition in the Enterprise division resulting in a weaker
overall performance than we would have liked.
"We continue to drive the transition within the two divisions
and focus them on the longer term objective of building our Energy
Services offering with a large customer base and adjacent revenue
streams. The new management team will soon be complete and we look
forward to the future with a great degree of confidence."
Notice of Results
Utilitywise will announce its interim results for the year ended
31 July 2016 on 18(th) October 2016.
*Adjusted for share based payments and exceptional items
For further information:
Utilitywise plc 0330 303 0233
Geoff Thompson (CEO)
Jon Kempster (CFO)
finnCap (NOMAD and broker) 020 7220 0500
Matt Goode/ Grant Bergman (Corporate Finance)
Simon Johnson (Corporate Broking)
Liberum (Joint broker) 020 3100 2000
Robert Morton/ Steve Pearce
Redleaf Communications 020 7382 4730
Rebecca Sanders-Hewett/ David Ison/ Susie Hudson
About Utilitywise
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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