13th Jan 2015 10:45
LONDON (Alliance News) - Energy Assets Group PLC Tuesday said revenue has increased by 47% over the last nine months compared with the same period a year earlier, and said recurring revenue now accounts for over two-thirds of the company's revenue, but it said a big contract to install smart metres for Centrica PLC's British Gas was proceeding at a slower rate than hoped.
"The group has delivered another strong performance in the period, which is significantly ahead of the same period in the prior year," said the provider of industrial and commercial gas metering services in the UK,
For the nine months ended December 31, the company generated revenue of GBP25.9 million, up from GBP17.6 million a year earlier.
Energy Assets said recurring revenue increased by 38% to GBP16.8 million, accounting for 65% of the company's total revenue. This is higher than recurring revenues in the 9 month period in 2013 of GBP12.2 million. Revenue in its Siteworks gas infrastructure business also increased by 65% to GBP9.1 million in 2014.
The company's owned and managed asset portfolio increased by 3% since the first half to 345,000 assets, with 76% of asset installations related to gas with the remaining 24% related to electricity.
At the end of 2014, Energy Assets reported cash and available funding facilities of GBP41.3 million, including a GBP5 million revolving credit facility with Santander to provide additional finance to grow the business, it said in a statement.
Energy Assets said a contract awarded by the Pirbright Institute to design and manage the installation of gas infrastructure and metering at its campus in Surrey is on course to be completed by the end of the financial year in March 2015. It is the largest siteworks project the company has ever had with a value in excess of GBP1 million.
The company said a contract signed with British Gas Business in July 2014 is progressing "slower than anticipated." The contract is for Energy Assets to install advanced meters for around 50% of industrial and commercial British Gas customers. Energy Assets said only a modest number of installs have been completed and said the full installation programme will not begin until the first quarter of the 2015 financial year.
"Demand for the installation of advanced utility meters and related services remains strong and continues to be driven by regulatory requirements. As a result, I am delighted to report another period of solid trading activity, maintaining a continued pattern of growth across our asset portfolio and siteworks business and keeping us on track to deliver another significant increase in profitability in the current financial year," said Chief Executive Phil Bellamy-Lee.
Energy Assets shares were down 5.5% to 428.20 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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