21st Apr 2020 16:42
(Alliance News) - Calisen PLC on Tuesday reported a widened loss in its maiden annual results following its February initial public offering.
In 2019, the energy smart meter firm recorded a pretax loss of GBP82.2 million, widened from GBP65.8 million.
The widened loss was attributed to the GBP11.3 million of additional costs associated with the company's IPO.
The IPO comprised the issue of 125 million shares to raise gross proceeds of GBP300 million, while 12 million existing shares were sold by shareholders, including private equity firm KKR Evergreen Aggregator LP.
Calisen priced its initial public offering at 240 pence per share, giving it a market capitalisation of GBP1.32 billion at the start of trading on the London Main Market. Shares were 0.1% lower on Tuesday at 179.80p.
Revenue was 29% higher year on year at GBP208.8 million versus GBP162.1 million. Average revenue per smart meter was 4.4% higher at GBP26.0.
Calisen has two business units. One of these is Calvin Capital - which procures, owns, and manages domestic gas and electricity meters - and the other is Lowri Beck. Calisen bought installation, meter reading, and maintenance services firm Lowri Beck in August last year.
The company ended 2019 with 5.2 million smart meters - up 37% - and 3.4 million traditional meters - flat on 2018.
Chief Executive Bert Pijls said: "Calisen achieved record growth in 2019 and this was driven by an increase in our portfolio of 1.3 million revenue generating smart meters. The 29% increase in revenue drove a 17% increase in underlying Ebitda with funds from operations, our preferred measure of cash flow generation, growing by 16% to reach GBP135.9 million."
Looking ahead, Calisen said its revenue generating meter portfolio has continued to result in steady and resilient cash flows. However, the Covid-19 pandemic has seen a reduction in the number of meter installations - hurting net cashflows.
Pijls added: "We are delighted to have de-risked a material component of our smart meter pipeline with the conclusion of a contract in the first quarter 2020 for a minimum of 1 million smart meters where we were previously in advanced negotiations. This will add a large number of meters to our portfolio over the next few years and reinforces my confidence that the combination of our solid business model and financial strength will see the group deliver growth as expected in the longer term."
By Paul McGowan; [email protected]
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