Energy Assets Group plc:
Preliminary Results for the year ended 31 March 2014

Another year of strong growth

LONDON--()--Energy Assets Group plc (“Energy Assets”, the “Company” or the “Group”) (LSE: EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK1, is pleased to announce its preliminary results for the year ended 31 March 2014.

Financial highlights

  • Total revenue increased by 34% to £24.2m (2013: £18.0m);
  • Recurring revenue increased by 37% to £16.9m (2013: £12.3m) representing 70% of total revenue (2013: 68%);
  • EBITDA increased by 39% to £15.0m from £10.8m;
  • Operating profit before exceptional items increased by 38% to £9.8m from £7.1m;
  • Profit before tax and exceptional items increased by 72% to £6.7m (2013: £3.9m). Profit before tax was £6.0m (2013: £2.9m) after incurring exceptional costs of £0.6m (2013: £1.0m);
  • Cash generated from operations of £14.5m (2013: £9.2m), a growth of 58%;
  • Adjusted EPS increased by 73% to 18.84p (2013: 10.90p);
  • A new £35m facility announced in November 2013 with Bank of Scotland to refinance existing debt and facilitate further opportunities to grow the existing meter portfolio;
  • At 31 March 2014 the Group had available facilities with its funding partners totalling £39.0m and cash at bank of £7.9m.

Operational highlights

  • The metering portfolio owned and installed increased by 25% to circa 101,000 assets (2013: circa 81,000);
  • Increased cumulative capital investment in meter assets of 34% to £78.0m which has produced long term recurring revenue in the current year of £10.6m (2013: £7.8m);
  • Meter Asset Management (MAM) services now provided to 30 (2013: 27) gas suppliers within the UK I&C gas market;
  • The number of meter points from which AMR data is collected on behalf of our customers has increased by 19% to circa 62,500 (2013: circa 52,500). This represents one of the largest portfolios within the UK I&C sector;
  • Revenue from Siteworks activity increased by 28% to £7.3m (2013: £5.7m).

Outlook

  • The acquisition of BGlobal Metering Limited (BGM) completed after the end of the financial year on 17 April 2014 for £2.3m;
  • This provides the systems, accreditations and expertise to operate as a leading provider in the electricity sector and is in line with the Group’s strategy to offer metering and associated energy services across a multi-utility platform;
  • This acquisition has already increased the meters under management to circa 161,000 and Energy Assets now retrieve data from circa 152,500 meter points across the combined gas, water and electricity sectors;
  • The new financial year has started strongly, all segments continue to grow and we are on track to deliver another year of strong operating and financial performance.

Chief Executive’s comment

Commenting on today’s announcement, Chief Executive Phil Bellamy-Lee said:

“I am delighted to report another year of strong operational and financial performance, with continued growth across our three business divisions. Energy Assets is a strong, growing company which has continued to make great progress and as an organisation we are committed to creating shareholder value. The Board is confident that Energy Assets will continue to deliver added value for all our stakeholders as we continue to broaden our offering.

The Group’s primary objective is to further consolidate our position as the largest independent metering service provider to the UK I&C gas sector, to grow our position across the utility sector as a whole, and to grow our successful Siteworks business. The combination of our strong supply chain relationships, engineering competence, bespoke systems and focus on technology continue to differentiate us from our competitors.

The BGM acquisition enables Energy Assets to expand its presence into the electricity sector and is a significant step in the delivery of the Group’s strategy to offer services across a multi-utility platform.

With the combination of opportunities arising from Government regulatory requirements and our relationships with energy suppliers and the wider market we are confident of delivering our long term growth strategy.”

Enquiries

For further information visit www.energyassets.co.uk.

1 by number of meters owned and managed

Contacts

Energy Assets Group plc
Phil Bellamy-Lee / John McMorrow
Tel: +44 (0)1506 405 405
or
Buchanan
Richard Darby / Clare Akhurst / Louise Mason
Tel: +44 (0)20 7466 5000
or
Numis Securities Limited
Charlie Farquhar / Stuart Skinner
Tel: +44 (0)20 7260 1000
or
Macquarie Capital (Europe) Limited
Steve Baldwin / Nicholas Harland
Tel: +44 (0)20 3037 2000

Release Summary

Energy Assets Group plc announces preliminary results for the year ended 31 March 2014.

Sharing

Contacts

Energy Assets Group plc
Phil Bellamy-Lee / John McMorrow
Tel: +44 (0)1506 405 405
or
Buchanan
Richard Darby / Clare Akhurst / Louise Mason
Tel: +44 (0)20 7466 5000
or
Numis Securities Limited
Charlie Farquhar / Stuart Skinner
Tel: +44 (0)20 7260 1000
or
Macquarie Capital (Europe) Limited
Steve Baldwin / Nicholas Harland
Tel: +44 (0)20 3037 2000