Energy Assets Group plc: Interim Results for the Six Months Ended 30 September 2015

LONDON--()--Note: A briefing for analysts will be held at 9.30am this morning at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN. For further details please contact Buchanan on 020 7466 5000.

Energy Assets Group plc (LSE:EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK1 and a major provider of utility infrastructure services and electricity metering and data services is pleased to announce its Interim Results for the six months ended 30 September 2015 (H1 2015/16).

Financial highlights

  • Total revenue increased by 22% to £20.6m (H1 2014/15: £16.9m);
  • Recurring revenue generated from the Group’s meter and data asset portfolio increased by 15% to £12.7m (H1 2014/15: £11.0m), representing 62% of total revenue;
  • The Siteworks business continues to make good progress with revenue increasing by 34% to £7.9m (H1 2014/15: £5.9m), through both organic growth and from the SA Gas acquisition in March 2015;
  • EBITDA increased by 19% to £10.5m (H1 2014/15: £8.8m);
  • Operating profit increased by 25% to £7.0m (H1 2014/15: £5.6m);
  • Profit before tax increased by 26% to £4.8m (H1 2014/15: £3.8m);
  • Basic earnings per share increased by 27% to 14p (H1 2014/15: 11p);
  • Cash generated from operations increased by 21% to £9.7m (H1 2014/2015: £8.0m);
  • Available facilities at 30 September 2015 of £24.8m and cash at bank of £7.1m.

Operational highlights

  • The Group’s owned and managed meter and data asset portfolio has increased by 11% since the last financial year end to circa 404,000 assets (31 March 2015: circa 365,000);
  • The contract with British Gas Business, awarded in July 2014, is now generating increased installation rates compared to prior periods, in line with management expectations;
  • Within the electricity sector, an agreement with npower, secured in October 2014, for the provision of data collection and aggregation services has been extended to 2019. Additionally, our relationship with major gas customer Corona Energy has been further strengthened through a new electricity metering contract signed during the period;
  • Cumulative capital investment in meter and data assets increased by 10% since the start of the financial year to £118.3m which has driven the increase in recurring revenue in the current period;
  • The three new businesses acquired in the previous financial year, Bglobal Metering, Origin and SA Gas, are now fully integrated into the Group and are performing well under Energy Assets management. Performance to date in the current financial year is as expected and the Board is pleased with the progress of each of these businesses;
  • An additional ‘Community Metering’ pilot project has been undertaken with a London council, further proving the technology and delivery concept of this initiative.

Current trading and outlook

The second half of the financial year has started well. The Group’s major metering and data contracts continue to perform strongly and the Siteworks business continues to make good progress both in terms of revenue growth and the sophistication of the services provided.

Commenting on the half year results, Chief Executive Officer Phil Bellamy-Lee said:

“The results for the first half of the financial year show a continuation of the excellent growth and success Energy Assets has achieved in recent years following another period of strong trading activity.

Our strong supply chain relationships, engineering competence, experienced management team and focus on quality continue to differentiate us from our competitors as we strive towards being the supplier of choice for customers within the UK I&C sector, enabling achievement of our primary objective to be the largest independent provider of I&C energy metering services in the UK.”

Enquiries

For further information visit www.energyassets.co.uk

Notes to Editors:

Energy Assets provides metering and related services in the I&C segment of the UK utility market and is the largest independent provider of I&C gas metering services in the UK, by number of assets owned and managed.

The Group offers utility suppliers and end-user consumers of energy a broad spectrum of expert metering services from the provision and management of new and replacement meters through its Meter Asset Management division to the procurement and project management of related utility infrastructure works, including fully managed gas installations and live connections, gas pipework modifications and in-depth gas maintenance projects, through its Siteworks division. The Group also collects and provides energy consumption data through its Data Services division.

Energy Assets (EAS) is listed on the Main Market of the London Stock Exchange.

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 / Vicky Watkins / Robbie Ceiriog-Hughes
Tel: +44 (0)20 7466 5000
or
Numis Securities Limited
Charlie Farquhar / Stuart Skinner
Tel: +44 (0)20 7260 1000

Contacts

Energy Assets Group plc
Phil Bellamy-Lee / John McMorrow
Tel: +44 (0)1506 405 405
or
Buchanan
Richard Darby / Vicky Watkins / Robbie Ceiriog-Hughes
Tel: +44 (0)20 7466 5000
or
Numis Securities Limited
Charlie Farquhar / Stuart Skinner
Tel: +44 (0)20 7260 1000