Utilitywise Share Discussion Threads

[pictureframe] 13/11/2018 12:37

No a word from the company. Soeaks volumes...

[knowing] 13/11/2018 11:15

The Vultures have arrived LOL

[still waiting] 13/11/2018 11:10

Energy switcher, the costs to do this will make matters worse, hence the rush for the exit imho

How many ex staff will also have shares to cash in before Xmas ?

[tomboyb] 13/11/2018 11:07

Looking at the balance sheet it looks like worst is yet to come -

It may however give a trading opportunity at some point -

[energywatcher] 13/11/2018 11:00

Personally I have to agree with the pessimists, the fundamental facts are;

Utilitywise have been running a huge (6-900 fte) sales team with the vast majority of effort being outbound cold calling.
The sales team have been poorly controlled, allowing them to hugely inflate consumption ( UW income, and sales person commission based on a p/kWh consumption uplift).
Suppliers have the contractual right to claw back commission where actual consumption is lower than contracted, which they now are.

Consequently, activity that appeared, at inflated consumption, to be profitable is actually loss making.

Furthermore, the uplift applied to some contracts was very high, in some instances adding over 100% to the underlying utility bill. Suppliers are now restricting these very high commisions (fearing OFGEM will force fee disclosure). This means that UW are now unable to drive profit through this small percentage of very profitable contracts. Anecdotally, I have heard that they have 800 of these contracts and that they are the only part of the SME business that is profitable.

The business model is bust, they are unable to profitably generate sales, hence the redundancies.

There only hope would be to cease unprofitable sales activity and farm a dwindling renewal portfolio. However I suspect that it is too late for that to work.

I guess the shares have fallen so far, so fast, that there may be a temporary bounce at some stage, before the seemingly inevitable conclusion. Personally I wouldn't risk it though.

[still waiting] 13/11/2018 10:49

The m cap. is way too low to raise decent amounts of equity so hinges on rolling over the debt now.

[tomboyb] 13/11/2018 10:36

Going bust?? -

[mikeh30] 13/11/2018 10:30

Something is definitely not right here. Dumping at any price. Might throw some punt money in at 1p.Anyone holding?

[dianecarberry] 13/11/2018 10:13

BUST here is a certaintly from what I am hearing.

Big staff lay offs in Newcastle yesterday. All told to leave the building.

[still waiting] 13/11/2018 10:12

Looks a destinct possibility..

Something not quite right here.

[still waiting] 13/11/2018 09:51

The size of the debt due for renewal is the killer here.

Needs to be sorted before sign off and with the figures all over the place I think the lender may just prefer cash back.

Let's see.

[dianecarberry] 13/11/2018 09:13

NOT CHEAP all.

With the debt pile its more or less bust.

[shawzie] 12/11/2018 20:17

Woodford has been selling a number of investments to raise cash. Perhaps this is one of them.

[the stinger] 12/11/2018 19:22

Someone took his last 6%?...and the rest! was it Regent Gas Holdings?.... is this a T/O target...hmmm,, even with previous issues this is very cheap with a current £6m MC...60% large holders too.. interesting!. As at 7/11/18 SIGNIFICANT SHAREHOLDERS (3% AND ABOVE)
Woodford Investment Management – 23,534,413 (29.98%)
Regent Gas – 5,126,961 shares (6.53%)
Hargreaves Lansdown stockbrokers (EO) – 4,959,788 (6.32%)
Aberdeen Standard Investments 4,851,864 (6.18%)
Interactive Investor (EO) – 3,423,136 (4.36%)

[mikeh30] 12/11/2018 18:55

Depends on how long it goes back.Seems like the most obvious reason for the sharp decline/founder selling.

[opodio] 12/11/2018 18:15

00000000000000p


game over man

[mikeh30] 12/11/2018 17:46

As previously announced, the Group appointed PricewaterhouseCoopers LLP to be its external auditors in June 2018. The Group is reviewing its revenue estimation methodology as part of its FY18 year-end audit process, in light of the adoption of the accounting standard IFRS 15 (Revenue from Contracts with Customers) on 1 August 2017. A further update will be provided in due course, once the review is complete.There's the problem."Revenue estimation" Probably cooking the books regarding revenue and it's leaked

[ochs] 12/11/2018 17:38

Thanks dianecarberry... has he shed any specific light on why he thinks that will be the case? ie. have sales fallen recently? staff issues? bad debtors etc. Thanks

[dianecarberry] 12/11/2018 16:40

My man in Newcastle upon Tyne who works for Utilitywise in a senior capacity reckons the company is going bust before Xmas.

[still waiting] 12/11/2018 16:13

In and out of auctions now.

[cc2014] 12/11/2018 16:08

Could be cascading stops but whatever it doesn't look good.

[still waiting] 12/11/2018 16:07

An accelerated game of pass the parcel.

Looks like the contents aren't worth having.

[still waiting] 12/11/2018 16:05

Looks like it.