Energy Assets (EAS), which offers smart gas-metering services to the commercial sector, reported further robust progress at the half-year stage. Adjusted pre-tax profit increased 30 per cent year on year to £3.9m, helped by acquisitions and the impact of significant new contract wins.
April's acquisition of BGlobal metering helped more than double the group's portfolio of metering assets to 334,500. That deal added 150,000 meters, with the remainder reflecting organic growth. Significantly, the group also signed a contract with British Gas in July to install half its planned smart meters between now and 2020. Other wins included a data-collection contract with Npower, signed last month. This is all great news for recurring revenue prospects, though these are already growing strongly - by 39 per cent to £11m during the first half.
True, Energy Assets' borrowings continue to mount as the group grows: the net debt pile rose 15 per cent year on year to £58.7m. But management isn't too worried, pointing to the group's growing ability to throw off cash; cash generated from operations increased by a quarter to £8m.
Broker Numis Securities expects full-year pre-tax profit of £9.2m, giving EPS of 26.3p (from £6.7m and 18.8p in 2014).
ENERGY ASSETS (EAS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 478p | MARKET VALUE: | £130m | |
| TOUCH: | 475-480p | 12-MONTH HIGH: | 495p | LOW: 300p |
| DIVIDEND YIELD: | nil | PE RATIO: | 24 | |
| NET ASSET VALUE: | 115p* | NET DEBT: | 187% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 11.8 | 2.8 | 8.4 | nil |
| 2014 | 16.9 | 3.8 | 11.0 | nil |
| % change | +43 | +36 | +31 | - |
Ex-div:- Payment:- *Includes intangible assets of £13m, or 48p a share | ||||
