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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Utilitywise | LSE:UTW | London | Ordinary Share | GB00B6WVD707 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.903 | 1.806 | 2.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMUTW
RNS Number : 5696V
Utilitywise plc
19 April 2016
19 April 2016
Utilitywise plc
("Utilitywise", the "Company" or the "Group")
Interim Results
for the six months ended 31 January 2016
Utilitywise, a leading independent utility cost management consultancy, is pleased to announce its financial results for the six months ended 31 January 2016.
Financial Highlights
-- Revenue increased 36% to GBP41.6m (H1 2015(1) : GBP30.6m) -- Adjusted EBITDA(2) increased 15% to GBP9.7m (H1 2015(1) : GBP8.4m) -- Adjusted Pre-tax profit(3) increase of 17% to GBP9.1m (H1 2015(1) : GBP7.8m) -- Adjusted fully diluted EPS(4) increased 21% to 9.8p (H1 2015(1) : 8.1p) -- Proposed interim dividend increased 29% to 2.2p (H1 2015: 1.7p) -- Net (debt) / cash of (GBP10.2m) (H1 2015: GBP1.6m)
Operational Highlights
-- Enterprise revenue added to order book(5) during the period increased by 50% to GBP40.0m (H1 2015: GBP26.6m)
-- Future secured revenue increased 5% to GBP24.7m (H1 2015: GBP23.5m) -- Total customers increased by 33% to 29,288 (H1 2015: 22,048) -- Utility Management Plan and multi-channel offering are progressing well -- Customer advocacy remains high with strong positive Net Promoter Score -- Energy consultants increased 39% to 625 (H1 2015: 449) -- Strengthened management team
Post period
-- Energy consultants increased to 630 -- Future secured revenue as at 31 March 2016 at GBP26.6m -- Partnership agreement signed with Dell to advance Energy services offering
Geoff Thompson, Chief Executive of Utilitywise, commented:
"The Group has continued to drive growth across all of its KPIs including strong growth in revenue and EBITDA. Enterprise, inclusive of Europe, and the Corporate division have performed well in the first half and I am very pleased to see the positive momentum maintained.
We have continued to strengthen the Group operationally with the continued roll out of our Utility Management Plan and further progress with the Group's multi-channel offering - both of which contribute to the Group's continued organic growth. Supporting this progress, we have bolstered our senior management team with the arrival of Brin Sheridan as Chief Operating Officer and Adrienne McFarland as People Operations Director.
The combination of our market-leading procurement business alongside our energy services offering is a compelling proposition. The market opportunity to assist customers to procure gas, power and water efficiency to comply with regulation and importantly enable them to manage their energy usage is significant and we look forward to building on our unrivalled position in the market to drive further growth."
(1) As restated
(2) Adjusted for share based payments of GBP286k (H1 2015: GBP366K) and exceptional items credit of GBP4,055k (H1 2015: GBP194k credit)
(3) Adjusted for share based payments of GBP286k (H1 2015: GBP366K), amortisation of IFRS3 intangibles of GBP975k (H1 2015: GBP531K) and exceptional items credit of GBP4,055k (H1 2015: GBP194k credit)
(4) Adjusted for share based payments of GBP286k (H1 2015: GBP366k), amortisation of IFRS3 intangibles of GBP975k (H1 2015: GBP531k), the tax impact of those adjustments of GBP171k credit (H1 2015: GBP162k credit) and exceptional items credit of GBP4,055k (H1 2015: GBP194k credit)
(5) where revenue added to order book is gross additions to future secured revenue
For further information:
Utilitywise PLC 0330 303 0233 Geoff Thompson, CEO Jon Kempster, CFO finnCap (NOMAD and joint broker) 020 7220 0500 Matt Goode / Grant Bergman (Corporate Finance) Simon Johnson (Corporate Broking) Liberum (Joint broker) 020 3100 2000 Robert Morton / Steve Pearce Redleaf Communications 020 7382 4730 Rebecca Sanders-Hewett / David Ison/ Susie Hudson
About Utilitywise
Utilitywise is a leading independent utility cost management consultancy based in Newcastle upon Tyne. The Group has established trading relationships with a number of major UK energy suppliers and provides services to its customers designed to assist them in achieving better value out of their energy contracts, as well as enabling reduced energy consumption and lower carbon footprint.
Businesses large and small rely on Utilitywise for their energy management needs. Clients range in size from single site SME's to multinationals with thousands of sites and cover the whole of the UK. In total, Utilitywise has c.30,000 UK & I customers. The Group also has a European operation which is starting to build a presence in France, Germany, Belgium and Netherlands with a total customer base of c. 5,500.
Chief Executive's Statement
I am pleased to report on the continued strong performance of the Group delivering another period of revenue and profit growth.
Our focus on operational excellence has continued with our Trusted Advisor strategy being deployed, a strong positive Net Promoter Score which is independently managed and a continued focus on the customer journey with the deployment of the Utility Management Plan.
KPIs
Hot Features
Premium
As
at As at
January January As at
2016 2015 Change July 2015
Energy consultants
at period end 625 449 39% 610
Future secured revenue* GBP24.7 GBP23.5m 5% GBP26.2m
Total Group customers 29,288 22,048 33% 25,976
*where future secured revenue is contracts which have been won but are not currently live and therefore have no contribution to these financial statements.
We also regard the main financial indicators such as revenue, EBITDA and cash as important measures and these are disclosed as such throughout.
Progress by division
During the period the Group operated from two principal divisions. The performance of both divisions is reported separately.
Enterprise division
Our Enterprise division is the foundation of the Utilitywise business, focusing on small, medium and multi-site organisations. We have well established trading relationships with a number of major UK energy suppliers and provide services to our customers designed to assist them in achieving better value from their energy contracts. Utilitywise negotiates rates with energy suppliers on behalf of business customers and provides an account care service where account managers help customers execute a Utility Management Plan to manage their energy contracts more efficiently, as well as reducing waste and lowering their carbon footprint.
Enterprise revenue added to order book increased by 50% to GBP40.0m (H1 2015: GBP26.6m) in the period, demonstrating the relevance of our proposition and the quality of our sales and marketing capability. Revenue in the division grew 31% to GBP32.6m (H1 2015: GBP24.9m) with gross profit increasing 13% to GBP12.7m (H1 2015: GBP11.2m). Overall gross margins reduced to 39% compared to 45% in the previous period and EBITDA increased 15% to GBP7.5m (H1 2015: GBP6.5m).
The movement in the gross margin is attributable to the additional costs incurred in employment of Energy Consultants and in support of various marketing initiatives and the continued investment in our multi-channel route to market. During the current financial year the people attrition rate has continued to be a challenge.
We have seen the 'go live' profile for the secured order book improve with more near term sales being transacted and as such we are seeing a quicker translation into revenue whilst still maintaining a significant secured pipeline. In addition, we have seen a consistent renewal rate of c. 80% by meter volume for our Enterprise customers.
During the period we continued to increase our contracted customers, increasing the total Enterprise customer base by 33% to 28,384 as at 31 January 2016 (H1 2015: 21,290). In the period 77% (H1 2015: 58%) of revenues came from new customers.
We have made significant operational progress in the period including:
-- The appointment of our new People Operations Director, Adrienne McFarland, with which we have focused on reducing the attrition rate which has increased throughout the year. I am pleased that this is now reducing with the focus on improving the quality of our hiring, building our recruitment strategy to match the multi-channel strategy and developing team manager skills/capabilities
-- A continued focus on delivering our multi-channel strategy and investment in the marketing to support its growth including the launch of new online switching platform, www.utilitywise.com/energy-quote
In the period we received GBP3.6m from a supplier who agreed to harmonise the payment terms on extension contracts with that of newly acquired customers. Our cash conversion from the Enterprise division will continue to improve as we negotiate with suppliers to change their terms on extension contracts and the absolute proportion of extensions contracted reduces as it has in the period to 23%, down from 42% in 2015.
European expansion continues to perform in line with expectations and we will continue to evolve our business model and expand our resources deployed on the French, German, Belgium and Netherlands markets in the coming year.
Corporate division
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The Corporate division consists of a comprehensive portfolio of products and services, as defined within our Utility Management Plan, designed to assist companies with more complex energy needs in managing their energy consumption. Procurement is at the core of the offering but, due to the size and complexity of the energy needs of these larger customers, the other elements of our Utility Management Plan are even more critical. In delivering a complete Strategic Utility Management Plan to our Corporate customers, we continue to develop strong customer relationships and Utilitywise is seen as their trusted advisor.
The acquisition of t-mac technologies in April 2015 added cutting edge cloud-based energy monitoring and controls capabilities to our service portfolio and we have shown great progress integrating this business alongside our Corporate and our Enterprise customer base. The number of customers benefitting from the "smartdash" data analytics software we acquired with t-mac is currently 1,281, and a plan is in place to roll out the software to all customers, as we arrange installation of their AMR Smart Meter. This data-led service enables a wider and more comprehensive dialogue around energy management with customers and includes the deployment of our Edd:e monitoring hardware alongside the t-mac controls hardware as a key part of this.
During the period, the Corporate division incorporating t-mac, enjoyed strong revenue growth with revenue in the division increasing 61% to GBP9.0m (H1 2015: GBP5.6m) and gross profit increasing 34% to GBP3.9m (H1 2015: GBP2.9m). This growth was supported by significant customer wins in the medium-sized business space. EBITDA increased 16% to GBP2.2m (H1 2015: GBP1.9m). Of the revenue growth GBP2.2m was from t-mac which operates at lower gross margins than the core procurement business. We have also benefited from good revenue growth in the non-procurement business specifically related to the ESOS (Energy Savings Opportunity Scheme) which was also at lower gross margins than the procurement revenues.
Principal Risks and Uncertainties
The Group is affected by certain risks, not wholly within our control. The most significant of these, are as follows:
-- Reliance on key suppliers -- Exposure to underlying customers -- Customer service and delivery -- Competition -- Recruitment and retention of the right people -- Security and resilience of our networks and IT systems -- Liquidity -- Legislation and regulatory
The principal risks and uncertainties facing the Group have therefore not changed from those as set out in the Strategic report on pages 8 to 9 of the 2015 Annual Report and Accounts. Further detail regarding the risk and mitigation can be found in the Annual Report.
Related Parties
During the period there have been no related party transactions which have had a material impact on the financial position or performance of the Group. There have been no significant changes to related party transactions disclosed in the annual report for the year ended 31 July 2015.
Outlook
Of particular focus in the period ahead will be the continued implementation of the productivity initiatives and emphasis on our recruitment strategy within our Enterprise division. In addition we will continue to focus on the roll-out of our Utility Management Plan and the development of Corporate division's energy services offering alongside growth in the core procurement business.
We are confident about the future prospects of the business. The productivity measures in our Enterprise division, with a lower attrition rate in the second half, will see an improved second half performance against the first half. Overall we remain on track to deliver revenue and EBITDA margins in line with market expectations.
Financial Review
Income Statement
During the six month period ended 31 January 2016 revenue increased by 36% over the corresponding period last year to GBP41.6 million. A key driver of growth has been the addition of revenue generating Energy Consultants. At the end of January the headcount had increased to 625 up from 449 at the end of January 2015.
Total Enterprise revenue added to order book in the period totaled GBP40.0m (H1 2015: GBP26.6m), demonstrating the strength of our proposition and the quality of our sales and marketing.
The secured pipeline (gross secured future revenue) was GBP24.7 million compared to GBP23.5million at January 2015. As at 31 March 2016, the secured pipeline has increased to GBP26.6m.
Overall Gross Margins are 40%, down on the prior period of 46%, due to our continued investment in energy consultants and our numerous marketing and multi-channel initiatives.
Adjusted EBITDA, defined as EBITDA adjusted for share based payments and exceptional items for the period was GBP9.7 million, an increase of GBP1.3 million (15%) on the period to 31 January 2015.
At the divisional results level we are pleased to see both divisions progress from the prior period. Of the EBITDA increase of GBP1.3m, GBP1.0m (77%) was attributable to the growth in the Enterprise division, with the remainder reflecting strong growth in Corporate.
Within the accounts there is release of the deferred consideration we expected to pay to the vendors of t-mac technologies of GBP5.7m, net of discounting, offset by an impairment charge to the carrying value of the goodwill relating to t-mac of GBP1.3m. The business is performing satisfactorily and we are successfully integrating the t-mac smart dash software reporting solution across both Enterprise and Corporate customers. However, the revenue streams to be derived from the full integration into the wider Energy services offering are largely planned to fall outside the earn out period and the order book and business activity without these will not be sufficient currently to pay further sums to the vendors. The impairment charge reflects the timing changes to the revenue and profits arising from the business.
Cash and Borrowings
The Group ended the half year with a net debt balance of GBP10.2m compared to a net cash balance of GBP1.6m at 31 January 2015. The acquisition of t-mac technologies occurred in the second half of 2015 and cash of GBP6.4m was spent on this. Eliminating this from the movement between the two periods isolates the trading flows which overall equates to a GBP5.4m outflow of cash. The cash is in line with our expectations and the second half is a stronger cash period.
Balance Sheet
As at 31 January 2016 the Group had total net assets of GBP54.9m compared to GBP37.4m at the end of January 2015.
The net accrued revenue balance increased from GBP18.7m to GBP34.9m. This represents future cash flows which are contracted by a utility provider with our end user business customers and which are paid to the Group by the underlying utility provider. To a large extent the increase in net accrued revenue has arisen as a result of the contract extension business undertaken in our Enterprise division. The net accrued revenue balance has a maturity profile which has c34% due within one year and the balance of 66% extending in to the future. This compares to 43% due within one year as at the end of H1 2015 and 25% due within one year at the end of July 2015.
Dividend
The Board is proposing an interim dividend of 2.2p per share payable on 21 June 2016 to shareholders on the register at close of business on 20 May 2016, with an associated ex-dividend date of 19 May 2016.
INDEPENDENT REVIEW REPORT TO UTILITYWISE PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 January 2016 which comprises the condensed consolidated statement of total comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and related notes.
We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.
Scope of review
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We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 January 2016 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
Location
United Kingdom
Date
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Condensed consolidated statement of total comprehensive income - Unaudited
Six months Six months Year ended
ended ended
31 January 31 January 31 July
2016 2015 2015
(as restated)
Note GBP GBP GBP
Revenue 4 41,565,345 30,557,368 69,106,061
Cost of sales (25,000,560) (16,413,806) (38,809,898)
Gross profit 16,564,785 14,143,562 30,296,163
Other operating
income 222,237 126,125 467,108
Exceptional contingent 5,740,318 - -
consideration release
------------- --------------- -------------
Total operating
income 5,962,555 126,125 467,108
Administrative
expenses (8,775,986) (7,192,107) (15,835,732)
Exceptional items (1,685,540) 194,484 (570,133)
------------- --------------- -------------
Total administrative
expenses (10,461,526) (6,997,623) (16,405,865)
Profit from operations
before exceptional
items 8,011,036 7,077,580 14,927,539
Exceptional items 4,054,778 194,484 (570,133)
-------------------------- ----- ------------- --------------- -------------
Profit from operations 12,065,814 7,272,064 14,357,406
Finance income 38,881 50,709 82,218
Finance expense (197,379) (261,397) (316,895)
------------- --------------- -------------
Profit before tax 11,907,316 7,061,376 14,122,729
Tax expense (1,463,221) (1,556,037) (2,926,549)
------------- --------------- -------------
Profit for the
period attributable
to equity holders
of the parent company 10,444,095 5,505,339 11,196,180
Other comprehensive
(expense)/income
Items that may
be reclassified
to profit or loss
in subsequent periods
Exchange difference
on translation
of foreign operations (4,173) 159,641 35,964
Total comprehensive
income attributable
to equity holders
of the parent company 10,439,922 5,664,980 11,232,144
Earnings per share
for profit attributable
to the owners of
the parent during
the period
Basic 0.136 0.076 0.149
Diluted 0.136 0.074 0.146
------------- --------------- -------------
Condensed consolidated statement of financial position - Unaudited
31 January 31 January 31 July
2016 2015 2015
(as restated)
GBP GBP GBP
----------- --------------- -----------
Non-current assets
Property, plant
and equipment 5,705,422 6,577,151 5,899,463
Goodwill 23,808,291 14,851,149 25,123,291
Intangible assets 11,290,952 6,556,389 12,047,410
Trade and other
receivables 25,707,031 16,306,957 22,977,894
Total non-current
assets 66,511,696 44,291,646 66,048,058
----------- --------------- -----------
Current assets
Inventories 507,542 85,323 642,825
Trade and other
receivables 23,407,383 15,855,805 15,939,299
Cash and cash equivalents 6,932,711 8,247,395 6,492,485
Corporation tax - 758,249 -
asset
Total current assets 30,847,636 24,946,772 23,074,609
----------- --------------- -----------
Total assets 97,359,332 69,238,418 89,122,667
----------- --------------- -----------
Current liabilities
Trade and other
payables 14,424,511 15,169,339 17,131,012
Loans and borrowings 4,000,000 199,673 -
Corporation tax
liability 1,749,181 2,169,218 585,613
Current provisions 711,460 390,556 703,550
--------------- -----------
Total current liabilities 20,885,152 17,928,786 18,420,175
----------- --------------- -----------
Non-current liabilities
Trade and other
payables 6,438,669 5,678,136 9,340,004
Loans and other
borrowings 13,175,000 6,399,347 13,175,000
Deferred tax liability 1,995,765 1,171,931 1,898,001
Non-current provision - 682,874 168,224
Total non-current
liabilities 21,609,434 13,932,288 24,581,229
----------- --------------- -----------
Total liabilities 42,494,586 31,861,074 43,001,404
----------- --------------- -----------
Net assets 54,864,746 37,377,344 46,121,263
----------- --------------- -----------
Equity attributable
to equity holders
of the company
Called up share
capital 77,716 74,734 76,593
Share premium 13,812,760 12,738,290 12,873,498
Merger reserve 9,531,644 5,783,427 9,531,644
Share option reserve 1,069,431 1,099,809 1,599,744
Foreign currency
reserve (45,517) 82,333 (41,344)
Retained earnings 30,418,712 17,598,751 22,081,128
Total equity 54,864,746 37,377,344 46,121,263
----------- ----------- -----------
Condensed consolidated statement of changes in equity - Unaudited
Share Foreign
Share Share Merger option Retained currency
capital premium reserve reserve earnings reserve Total
GBP GBP GBP GBP GBP GBP GBP
--------- ----------- ---------- ---------- ------------ ---------- ------------
At 1 August
2014 (restated) 74,514 12,477,889 5,783,427 1,231,434 14,112,219 (77,308) 33,602,175
Profit
for the
period - - - - 5,505,339 - 5,505,339
Other comprehensive
income - - - - - 159,641 159,641
--------- ----------- ---------- ---------- ------------ ---------- ------------
Total comprehensive
income - - - - 5,505,339 159,641 5,664,980
Dividends
paid - - - - (2,071,887) - (2,071,887)
Share option
expense - - - 365,624 - - 365,624
Deferred
tax on
share options - - - (444,169) - - (444,169)
Issue of
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shares 220 260,401 - - - - 260,621
Reserve
transfer
relating
to share
based payment - - - (53,080) 53,080 - -
Equity
as at 31
January
2015 (as
restated) 74,734 12,738,290 5,783,427 1,099,809 17,598,751 82,333 37,377,344
At 1 August
2015 76,593 12,873,498 9,531,644 1,599,744 22,081,128 (41,344) 46,121,263
Profit
for the
period - - - - 10,444,095 - 10,444,095
Other comprehensive
income - - - - - (4,173) (4,173)
--------- ----------- ---------- ---------- ------------ ---------- ------------
Total comprehensive
income - - - - 10,444,095 (4,173) 10,439,922
Dividends
paid - - - - (2,514,452) - (2,514,452)
Share option
expense - - - 285,922 - - 285,922
Deferred
tax on
share options - - - (408,294) - - (408,294)
Issue of
shares 1,123 939,262 - - - - 940,385
Reserve
transfer
relating
to share
based payments - - - (407,941) 407,941 - -
Equity
as at 31
January
2016 77,716 13,812,760 9,531,644 1,069,431 30,418,712 (45,517) 54,864,746
Condensed consolidated cash flow statement - Unaudited
Six months Six months Year ended
ended ended
31 January 31 January 31 July
2016 2015 2015
(as restated)
GBP GBP GBP
------------------- ------------------- ----------------------
Operating activities
Profit before tax 11,907,316 7,061,376 14,122,729
Interest paid 197,379 261,397 (82,219)
Interest received (38,881) (50,709) 316,895
Depreciation of property,
plant and equipment 393,349 380,838 864,989
Impairment of goodwill 1,315,000 - -
Share option expense 285,922 365,624 695,291
Grant income - (18,000) (30,790)
Amortisation of intangible
assets 985,348 540,211 1,296,878
------------------- -------------------
15,045,433 8,540,737 17,183,773
Increase in trade
and other receivables (10,197,221) (7,993,484) (14,245,779)
Decrease/(Increase)
in inventories 135,283 12,660 (45,455)
Decrease in trade
and other payables (5,566,867) (3,858,347) (5,108,945)
Decrease in provisions (160,314) (120,465) (325,127)
------------------- ------------------- ----------------------
(15,789,119) (11,959,636) (19,725,306)
Cash used in operations (743,686) (3,418,899) (2,541,533)
------------------- ------------------- ----------------------
Income taxes paid (619,576) (172,392) (2,208,042)
Net cash flows from
operating activities (1,363,262) (3,591,291) (4,749,575)
------------------- ------------------- ----------------------
Investing activities
Purchase of property,
plant and equipment (199,308) (1,644,713) (1,849,851)
Purchase of intangibles (228,890) (21,398) (31,886)
Acquisition of subsidiary,
net of cash acquired - (430,474) (6,397,858)
Finance income 7,305 17,446 82,219
Net cash used in investing
activities (420,893) (2,079,139) (8,197,376)
------------------- ------------------- ----------------------
Financing activities
Issue of shares 940,385 260,621 148,859
Dividends paid (2,514,452) (2,071,887) (3,365,287)
Loans repaid - - (6,000,000)
Loans received 4,000,000 - 13,175,000
Finance expense (197,379) (70,041) (316,895)
------------------ ------------------ ------------------
Net cash raised/ (used)
in financing activities 2,228,554 (1,881,307) 3,641,677
------------------ ------------------ ------------------
Net increase/ (decrease)
in cash and cash equivalents 444,399 (7,551,737) (9,305,274)
Exchange losses on
cash and cash equivalents (4,173) (24,005) (25,378)
Cash and cash equivalents
at beginning of period 6,492,485 15,823,137 15,823,137
------------------ ------------------ ------------------
Cash and cash equivalents
at end of period 6,932,711 8,247,395 6,492,485
------------------ ------------------ ------------------
Notes
1. Accounting policies
The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 July 2015, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
The interim financial information for each of the six month periods ended 31 January 2016 and 31 January 2015 has not been audited and does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The information for the year ended 31 July 2015 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006, but is based on the statutory financial statements for that year, on which the auditors have reported. Their audit report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under Section 498 (2) or (3) Companies Act 2006.
The principle accounting policies have been applied consistently to all years and are set out below.
2. Basis of preparation
Utilitywise Plc is incorporated and domiciled in the United Kingdom.
The accounts for the periods have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the accounting policies are consistent with those of the annual financial statements for the year ended 31 July 2015 and those envisaged for the financial statements for the year ending 31 July 2016. The Group has not adopted any standards or interpretation in advance of the required implementation dates. It is not anticipated that the adoption in the future of the new or revised standards or interpretations that have been issued by the International Accounting Standards Board will have a material impact on the Group's earnings or shareholders' funds.
The financial statements have been prepared on a going concern and historical cost basis as stated in the accounting policies. There have been no changes in accounting policies. All policies are in line with the year ended 31 July 2015 and we do not anticipate any further changes for the year ended 31 July 2016.
3. Prior year adjustment
The financial statements have been adjusted to reflect the correction of an error made in the financial statements for the year ended 31 July 2013 and 2014, which has led to the restatements 2015 interim results. This arose following management's review of the revenue provision calculation. The conclusion of the review was that the rate used to calculate the estimated variability in value was too low and also the provision was held for 24 months and then released which did not reflect the lengthening of contract terms the Group was experiencing.
Details of the year end adjustment are included in the audited 31 July 2015 accounts.
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The following financial statement extracts show the impact of the prior period adjustments to the Group's 2015 interim financial statements.
Consolidated statement of profit and loss and other comprehensive income
2015
Revenue pre-adjustment 29,886,253
Adjustment 671,115
Revenue post-adjustment 30,557,368
Tax expense pre-adjustment 1,417,318
Adjustment 138,719
Tax expense post-adjustment 1,556,037
Consolidated statement of financial position
Non-current assets 2015 Accrued revenue pre-adjustment 18,408,579 Adjustment - 6 months to Jan 2015 755,356 Adjustment - Prior year restatement (2,856,978) Accrued revenue post-adjustment 16,306,957 Current assets Trade and other receivables pre-adjustment 16,699,496 Adjustment- 6 months to Jan 2015 (84,241) Adjustment- Prior year restatement (759,450) Trade and other receivables post-adjustment 15,855,805 Corporation tax asset pre-adjustment - Adjustment - 6 months to Jan 2015 201,354 Adjustment - Prior year restatement 556,895 Corporation tax asset post-adjustment 758,249 Current liabilities Corporation tax liability pre-adjustment 2,132,344 Adjustment- 6 months to Jan 2015 340,074 Adjustment- Prior year restatement (303,200) Corporation tax liability post-adjustment 2,169,218 Consolidated statement of changes in equity Total equity BF pre-adjustment 36,358,508 Adjustment- Prior year restatement (2,756,333) Total equity BF post-adjustment 33,602,175 Profit for the year pre-adjustment 4,972,943 Adjustment- 6 months to Jan 2015 532,396 Profit for the year post-adjustment 5,505,339 4. Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision maker has been identified as the management team including the Chief Executive Officer and Chief Financial Officer. The Group reports to the Board under both UK GAAP and IFRS. Underlying accounting information is prepared under UK GAAP and the below adjustments to take results to IFRS are made for the purpose of reporting to the Board and external reporting.
During the current period the Group serviced both Corporate and Enterprise businesses. The Board considers that the services were offered form two distinct segments in the current period.
Operating segments are determined based on the internal reporting information and management structure within the Group. Information regarding the results of the reportable segment is included below. Performance is based on segment operating profit or loss before share-based payment charges, depreciation, amortisation and acquisition costs, as reported in the internal management reports that are reviewed by the CODM. The segment operating profit or loss is used to measure performance. Revenues disclosed below represent revenues to external customers.
The Enterprise Division derives its revenues from energy procurement by negotiating rates with energy suppliers for small and medium sized business customers throughout the UK, Republic of Ireland and certain European markets. The Corporate Division derives its revenues from energy procurement of larger industrial and commercial customers, providing an account care service and offering a variety of utility management products and services designed to assist customers manage their energy consumption.
Six months Six months Year ended
ended ended 31 July
31 January 31 January 2015
2016 2015 (as
restated)
GBP GBP GBP
Revenue
Enterprise (local GAAP) 32,873,183 25,734,314 55,852,477
Corporate (local GAAP) 9,577,842 6,302,468 15,953,655
Intersegment revenue (566,229) (675,590) (1,298,775)
Accrued Revenue (GAAP
adjustment) (24,156) (6,802) (31,603)
Discounting of cash
flows (GAAP adjustment) (295,295) (797,022) (1,369,693)
Total Group revenue 41,565,345 30,557,368 69,106,061
============ ============ ============
Enterprise Corporate
Six months ended 31 January 2016 GBP GBP
Segment profit 5,898,620 2,081,876
Finance income 37,127 1,754
Finance expense (197,282) (97)
Depreciation (287,621) (105,728)
Amortisation (8,153) (2,369)
Taxation (1,309,651) (399,508)
Profit after tax (local GAAP) 4,133,040 1,575,928
============ ==========
Enterprise Corporate
Six months ended 31 January 2015
(as restated) GBP GBP
Segment profit 6,266,289 1,589,158
Finance income 13,399 4,047
Finance expense (261,211) (186)
Depreciation (235,968) (144,870)
Amortisation (4,051) (5,520)
Taxation (1,848,911) 17,667
Profit after tax (local GAAP) 3,929,547 1,460,296
============ ==========
Enterprise Corporate
Year ended 31 July 2015 GBP GBP
Segment profit 13,123,087 2,709,918
Finance income 19,861 6,493
Finance expense (269,575) (6,441)
Depreciation (333,334) (531,654)
Amortisation (10,931) (184,539)
Taxation (2,791,848) (833,110)
Profit after tax (local GAAP) 9,737,260 1,160,667
============ ==========
Six months Six months Year ended
ended ended 31 July
31 January 31 January 2015
2016 2015 (as
restated)
Profit after tax GBP GBP GBP
Enterprise (local GAAP) 4,133,040 3,929,547 9,737,260
Corporate (local GAAP) 1,575,928 1,460,296 1,160,667
Accrued revenue (GAAP
adjustment) (24,156) (6,802) (31,603)
Grant release - 18,000 30,790
Discounting of cash
flows net of unwinding
(GAAP adjustment) (199,897) (832,421) (1,358,857)
Amortisation 287,924 661,512 1,327,608
Exceptional release 5,740,318 - -
of contingent consideration
Goodwill impairment (1,315,000) - -
Investment costs - - (372,194)
Other accruals discounting
and adjustments - - 4,100
IFRS deferred tax adjustments 245,938 275,207 698,409
Total Group profit
after tax 10,444,095 5,505,339 11,196,180
============ ============ ============
Six months Six months
ended ended Year ended
31 January 31 January 31 July
2016 2015 (as 2015
restated)
Net assets GBP GBP GBP
Enterprise (local
GAAP) 39,251,506 29,695,615 27,919,465
Corporate (local GAAP) 7,492,960 3,929,657 14,070,477
Accrued revenue and
tax impact (GAAP adjustment) 267,894 307,060 287,218
Grant release and - (10,238) -
tax impact
Discounting of cash
flows and tax impact
(GAAP adjustment) (1,731,384) (1,060,789) (1,486,829)
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Share options (38,090) 173,080 370,204
Amortisation 4,134,923 2,880,590 3,696,172
Investments costs (928,192) (555,998) (928,192)
Exceptional release
of contingent consideration 7,699,439 2,000,000 2,000,000
Business combinations 30,690 18,367 192,748
Goodwill Impairment (1,315,000) - -
Group net assets 54,864,746 37,377,344 46,121,263
============ ============ =============
Other information
Six months Six months
ended ended Year ended
31 January 31 January 31 July
2016 2015 (as 2015
restated)
GBP GBP GBP
Analysis of concentration
of customers (Energy
suppliers) comprising
revenues of 10% or
more:
Customer 1 10,274,435 8,468,121 15,851,905
Customer 2 7,715,825 4,341,939 11,870,002
Customer 3 5,457,036 - -
Other suppliers 18,118,049 17,747,308 41,384,154
41,565,345 30,557,368 69,106,061
=========== =========== ===========
5. Exceptional items
Exceptional items in the six months ending 31 January 2016 relate to GBP341k in relation to restructuring and reorganisation costs and GBP29k of onerous lease discounting.
Included in exceptional items is also a credit of GBP5,740k which has arisen from the release of deferred consideration, net of discounting, in relation to the acquisition of t-mac technologies Limited where earn-out criteria were not met and a related goodwill impairment charge of GBP1,315k.
Exceptional items in the year ended 31 July 2015 relate to the costs incurred in the acquisition of t-mac Technologies Limited, costs of GBP39k in relation to unforeseen late invoices connected to the prior year acquisition of Icon Communication Centres s.r.o. and other aborted acquisition costs. Also included are restructuring and re-organisation costs such as settlement payments of GBP83k and costs of GBP52k incurred in the set-up of a new head office.
In the year ended 2015 there is also a credit of GBP268k offsetting these costs which arose from the release of restructure and dilapidation provisions not utilised. Exceptional items are included in administrative expenses in the statement of profit and loss.
6. Dividends
Six months Six months
ended ended Year ended
31 January 31 January 31 July
2016 2015 2015
GBP GBP GBP
Final dividend
of 3.3 pence per
ordinary share
proposed and paid
during the period
relating to the
previous year's
results 2,514,452 2,071,887 3,365,287
In the period a final dividend in relation to the year ended 31 July 2015 of 3.3p was paid on 76,195,520 shares. The dividend was waived on 500,000 shares.
7. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume the conversion of all potentially dilutive ordinary shares.
The Group has potentially dilutive ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the period.
Six months Six months 12 months
ended ended ended
31 January 31 January 31 July 2015
2016 2015 (as restated)
GBP GBP GBP
Profit
Profit used in
calculating basic
and diluted profit 10,439,922 5,664,980 11,232,144
Number of shares
Weighted average
number of shares
for the purpose
of basic earnings
per share 76,884,618 74,572,247 75,270,221
Effects of:
Employee share
options and warrants (254,035) 1,530,832 1,150,512
Contingent shares
to be issued - 61,332 474,570
Weighted average
number of shares
for the purpose
of diluted earnings
per share 76,630,583 76,164,411 76,895,303
8. Property, plant and equipment
During the six months ended 31 January 2016 the group incurred property, plant and equipment additions of GBP199,308 (HY 2015: GBP2,120,852).
9. Share capital
Six months
ended 31 Six months Year ended
January ended 31 31 July
2016 January 2015 2015
GBP GBP GBP
Share capital issued
and fully paid
77,716,312 Ordinary
shares of GBP0.001
each 77,716 74,734 76,593
----------- -------------- -----------
Ordinary shares carry the right to one vote per share at general meetings of the Company and the rights to share in any distribution of profits or returns of capital and to share in any residual assets available for distribution in the event of a winding up.
During the period ending 31 January 2016 a further 1,123,978 were issued pursuant to the exercise of options over such shares, which resulted in additions to share capital of GBP1,123 and additions to share premium of GBP939,262.
10. Post balance sheet events
Since the end of financial period, the Directors are not aware of any other matter or circumstance that would need disclosing.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWRKRNUASAAR
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