Helping companies manage their energy costs is proving to be big business for Utilitywise (UTW). The shares shot up 12 per cent after the company reported a 46 per cent jump in underlying earnings per share to 7.5p. Broker finnCap said this beat expectations and upgraded its EPS forecast for the current financial year by 12 per cent to 12.5p to reflect anticipated further scaling up of the business and predicts EPS of 17.5p next year. The broker also hiked its target price by a third to 200p.
Utilitywise, which floated on Aim in June 2012, helps businesses across the UK save on energy costs by providing a raft of services ranging from the installation of smart meters to negotiating with energy suppliers on their behalf to get the best energy rates. As at the end of July, Utilitywise had signed up 15,333 customers and managed 44,361 meters - both metrics were up 35 per cent since the end of September 2012.
The company also has £18.2m of new contracts waiting to go live; chief executive Geoff Thompson says just over £15m of these will drop onto the P&L within the next six months, so future growth looks assured. And plans to increase the number of energy consultants, who drum up business by contacting prospective clients, from the current 280 to 400 by the year end should also drive expansion.
UTILITYWISE (UTW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 191.5p | MARKET VALUE: | £138m | |
| TOUCH: | 190-193p | 12-MONTH HIGH: | 191.5p | LOW: 75p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 34p* | NET CASH: | £4m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 10.9 | 3.33 | na | na |
| 2012 | 14.4 | 3.47 | 4.7 | 1.00 |
| 2013 | 24.8 | 5.78 | 7.0 | 2.60 |
| % change | +73 | +67 | +49 | +160 |
Ex-div: 27 Nov Payment: 13 Dec *Includes intangible assets of £20.6m, or 29p a share | ||||
