Utilitywise (UTW) delivered across a range of performance metrics at the half-year mark, but perhaps the 33 per cent increase in customer numbers to more than 29,000 is the most fitting testament to the group's operational progress. Returns have improved on the back of increased investment in the core enterprise division, the spend justified by a 50 per cent increase in the segment's contribution to the order book. Gross profit of £16.6m was 17 per cent in advance of the comparable figure in 2015, although margins were squeezed due to costs associated with marketing initiatives and the growing headcount of energy consultants.
It was also revealed that the group will receive £2.3m from a "key energy supplier" due to a change to existing payment terms, whereby the supplier has agreed to treat contract extensions in the same manner as new customer wins. The upshot is that 80 per cent of the revenue from the contract will fall due on the extension signing and the remainder at maturity. A similar renegotiation was struck with another supplier in the period under review, leading to the remittance of another £3.6m.
Separately it was announced that founder and chief executive, Geoff Thompson, will move to a new role on the board as executive chairman - his successor will be announced in due course.
Broker Liberum forecasts pre-tax profit of £19.3m for the July 2016 year-end, leading to adjusted EPS of 19.8p, against £16.7m and 17.9p in 2015.
| UTILITYWISE (UTW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 180p | MARKET VALUE: | £140m | |
| TOUCH: | 175-181p | 12-MONTH HIGH: | 288p | LOW: 115p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 71p* | NET DEBT: | 19% | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 (restated) | 30.6 | 7.1 | 7.6 | 1.7 |
| 2016 | 41.6 | 11.9 | 13.6 | 2.2 |
| % change | +36 | +69 | +79 | +29 |
Ex-div: 19 May Payment: 21 Jun *Includes intangible assets of £35m, or 45p a share | ||||
