Utilitywise plc Trading Update (3747X)

TIDMUTW

RNS Number : 3747X

Utilitywise plc

21 February 2017

21 February 2017

Utilitywise plc

("Utilitywise" or the "Group")

Trading Update

Utilitywise, the leading independent utility cost management consultancy, today provides an update on trading for the six months ended 31 January 2017.

The Board is pleased to confirm that the Group has performed in line with management expectations during the period, with double-digit revenue growth compared to the same period last year. Net debt at 31 January 2017 was GBP4.1m (31 January 2016: GBP10.2m, 31 July 2016: GBP0.2m).

The Enterprise Division, which serves the SME market and represented 94% of adjusted(1) profit before tax for the year ended 31 July 2016, performed strongly, with an increase in revenue and profit compared to the same period last year. Gross order book additions were GBP50.2m, compared to GBP40.4m in the same period last year and the revenue pipeline, still to "go-live", increased to GBP28.0m as at 31 January 2017 (GBP25.6m at 31 July 2016 and GBP24.7m at 31 January 2016). As a result of continued focus on people retention, Energy Consultant headcount at 31 January 2017 increased to 661, compared to 625 at both 31 July 2016 and 31 January 2016.

The Corporate Division, which services larger organisations and represented 6% of adjusted(1) profit before tax for the year ended 31 July 2016, saw a reduction in revenue compared to the same period last year. This was primarily due to slower progress than previously hoped in the deployment of technology solutions to certain customers but was also impacted by ESOS(2) -related revenue in the first half of last year, which has not recurred this year. That revenue reduction, coupled with the on-going investment that commenced in the second half of last financial year, has led to a reduction in profit compared to the first half of last year. The Board remains confident in the outlook for this Division.

Utilitywise will announce its interim results for the six months ended 31 January 2017 on 4 April 2017 and will also hold a Capital Markets Event for institutional investors and analysts on 2 March 2017, during which the executive team will update on the Group's strategy and markets.

Brendan Flattery, CEO of Utilitywise, commented:

"We are pleased to be reporting the key indicators all showing growth against the prior year in our Enterprise Division, which continued to impress with an increased order book and a strong revenue pipeline. Whilst deployment to certain customers in the smaller Corporate Division was slower than we had hoped, the Division's prospects, and those of the Group as a whole, remain unchanged.

The opportunities for Utilitywise across all of our markets continue to grow. We have made significant progress in the first half in further strengthening the management team, investing in new products and services and implementing new internal initiatives. I look forward to providing a more comprehensive update in our interim results statement in April."

(1) Adjusted profit before tax means stated before exceptional items, non-cash accounting charges for share-based payments and amortisation relating to acquired intangible assets.

(2) ESOS means Energy Savings Opportunity Scheme.

For further information

 
 Utilitywise plc                           0330 303 0233 
 Brendan Flattery (CEO) 
 Richard Laker (CFO) 
 
 
 finnCap (NOMAD and broker)                020 7220 0500 
 Matt Goode / Henrik Persson (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 
 

Utilitywise is a leading independent utility cost management consultancy, which has established trading relationships with a number of major UK and European energy suppliers and provides services to its customers designed to assist them in achieving better value out of their energy contracts, reduced energy consumption and lower carbon footprint.

Utilitywise is a UK company quoted on the AIM market of the London Stock Exchange. For more information, please visit www.utilitywise.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTEAPAEADNXEFF

(END) Dow Jones Newswires

February 21, 2017 02:00 ET (07:00 GMT)