Helping companies manage their energy costs is proving to be big business for
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.
|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)|
Ex-div: 27 Nov
Payment: 13 Dec
*Includes intangible assets of £20.6m, or 29p a share
Utilitywise shares are up 76 per cent in the past year, but the rating is not stretched at 15 times this year's earnings estimates, dropping to 10 times next year. There is a modest dividend yield too. So with rising energy prices keeping Utilitywise’s services in demand, and good visibility from secured contracts, the shares remain a buy.
Last IC view: Buy, 93p, 16 April 2013
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