13th Feb 2015 08:41
LONDON (Alliance News) - Utility consultancy Utilitywise PLC on Friday said it performed in line with expectations in its first half, but said its revenue pipeline weakened owing to a temporary focus on extending and renewing energy contracts with its existing customers.
The group said its revenue pipeline stood at GBP23.5 million at the end of the period on January 31, down from GBP28.5 million at the end of July and slightly off the GBP23.8 million reported a year earlier.
In the half, the group decided to temporarily switch its focus toward extending and renewing contracts with existing customers, following a trend of energy suppliers introducing new, longer-term energy supply contracts. Such agreements are not added to the revenue pipeline.
The company expects its revenue mix to return to more normal patterns in the second half, though it said the change in the first half has not had any impact on cash, revenue or profitability.
"During the period we seized a unique opportunity to lock in significant future revenues, profits and cashflows whilst providing our customers with long term price security. Going forward, our efforts will revert to focusing on the acquisition of new customers in our highly fragmented target markets," said Utilitywise Chief Executive Geoff Thompson.
"We expect to report a significant increase in both revenue and profits for the full year in line with previous expectations," Thompson adds.
Utilitywise shares were down 8.5% to 201.15 pence on Friday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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