Energy Assets provides gas metering and related services in the I&C segment of the UK gas market and is the largest independent provider of I&C gas metering services in the Uk (by number of meters under management). The Group offers gas suppliers and end-user consumers of gas a broad spectrum of metering services, from the provision and management of new and replacement meters through its MAM Services division to the procurement and project management of related gas infrastructure works and the collection and provision of gas consumption data through the Siteworks and Pulse 24 (Automated Meter Reading) divisions. The industry will, under recent legislation, need to ensure that all meters are “advanced” by 2019, and Energy Assets expects to be at the forefront of the exchange programme to upgrade the national meter portfolio.

Through its Siteworks division, Energy Assets provides a comprehensive consultancy, system design and project management service for gas infrastructure works and meter point infrastructure. We are able to procure and manage engineering services required by a gas supplier or end-user consumer to install a new metering point, including laying the connection from the gas network to the meter, move an existing metering point, or remove a metering point from a disused or demolished site and disconnecting it from the gas network. Siteworks customers are mainly comprised of end-user consumers of gas.

The Metering Division owns, manages and maintains advanced I&C gas meters as an OFGEM-accredited MAM, generating revenue through rental payments from gas suppliers who supply gas through the Group's gas meters. Advanced gas meters are capable (when a data logger unit is attached) of providing gas consumption data in half-hour increments. This information can then be used by end-user consumers to monitor, and hence better manage, gas consumption with a view to increasing their energy efficiency and reducing costs. The industry will, under recent legislation, need to ensure that all meters are “advanced” by 2019, and Energy Assets expects to be at the forefront of the exchange programme to upgrade the national meter portfolio.

Energy Assets provides data collection and management services through its Pulse 24 division. Pulse 24 provides Automated Meter Reading (AMR) services, arranging the installation of data loggers that collect consumption data from advanced gas meters and transmit the data daily to the Group's data management system. These data loggers, which are owned and managed by the Group, enable the Group to produce accurate, up-to-date energy-usage reports for end-user consumers and invoicing information for gas suppliers.

Data collected from data loggers is provided to two types of customer. Gas suppliers require consumption data on a monthly basis, to assist in billing, and receive a raw data file which they can convert for their own use. Conversely, end-user consumers of gas typically rely on data loggers to closely monitor energy usage with a view to reducing their levels of consumption. This requires very regular meter read gas consumption data (which can be provided in half-hour increments). Pulse 24 hosts a dedicated website with reports tailored to the consumer from which the consumer can access usage information in almost real time


http://www.energyassets.co.uk/

Preliminary Results

RNS


RNS Number : 3745A

Energy Assets Group plc

07 June 2016




For immediate release 7 June 2016



Energy Assets Group plc

("Energy Assets", the "Company" or the "Group")



Preliminary Results for the year ended 31 March 2016



Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK1 and a major provider of multi-utility network, metering and data services, is pleased to announce its preliminary results for the year ended 31 March 2016.



Financial highlights



· Total revenue increased by 25% to £45.3m (2015: £36.2m);



· Recurring revenue, generated from the Group's meter and data asset portfolio, increased by 12% to £26.1m (2015: £23.3m) representing 58% of total revenue;



· Revenue from Siteworks activity increased by 49% to £19.2m (2015: £12.9m);



· EBITDA before exceptional items increased by 16% to £22.5m from £19.4m;



· Operating profit before exceptional items increased by 20% to £15.2m from £12.7m;



· Profit before tax and exceptional items increased by 20% to £10.7m (2015: £8.9m). Profit before tax was £10.5m (2015: £9.3m);



· Basic earnings per share increased by 11% to 30.36p (2015: 27.30p);



· Cash generated from operations increased by 8% to £21.1m (2015: £19.5m);



· In November 2015, the Group announced a £10m increase to its current facility with Lombard, the asset finance division of The Royal Bank of Scotland Group, taking total facilities from the Group's three main funding partners to £110m. Additionally, a two year extension of the Group's £35m Bank of Scotland facility was also agreed in November 2015;



· Available facilities at 31 March 2016 were £29.5m and cash at bank was £6.7m.



Operational highlights



· The Group's owned and managed meter and data asset portfolio has increased by 23% in the year to circa 450,000 assets (2015: circa 365,000) with all existing major contracts across gas and electricity contributing to this growth;



· The Company acquired Blyth Utilities Limited (Blyth), a Multi-Utility Infrastructure Provider, on 9 December 2015. Integration is progressing well;



· Since acquisition, Blyth has successfully secured a new £6m contract with East Lothian Developments Ltd (ELDL) to provide utility networks for a new development in East Lothian. This is testimony to the expertise and uniquely differentiated offering within our expanded business;



· The three new businesses acquired in the previous financial year, Bglobal Metering, Origin and SA Gas, are now fully integrated into the Group and are performing well under Energy Assets management. Performance in the 2015/16 financial year was as expected and the Board is pleased with the progress of each of these businesses;



· Energy Assets was appointed as a preferred supplier to Crown Gas and Power (Crown), the gas supply division of Crown Oil Ltd, in December 2015. The appointment, for the provision of advanced gas metering technology and data services solutions, was made due to Energy Assets reputation for delivering a high quality service offering.



1 By number of meters owned and managed



Corporate developments



On 18 April 2016, the Boards of Energy Assets and Euston BidCo Ltd (BidCo) announced that they had reached agreement on the terms of a recommended cash acquisition by BidCo, a newly established company indirectly wholly owned by the Alinda Funds, which are controlled and managed by Alinda, of the entire issued and to be issued share capital of Energy Assets.



As previously advised by the Board of Energy Assets on 19 May 2016, the Court Meeting and the General Meeting were adjourned, in each case to a date, time and place to be determined by the directors. We would expect to be in a position to further update shareholders in relation to this in the next few days.



Further information on the proposed acquisition, which has been unanimously recommended by the Energy Assets Board, and its current status can be found on the Energy Assets website.



Chief Executive's comment



Commenting on today's announcement, Chief Executive Phil Bellamy-Lee said:



"The financial year to 31 March 2016 has been very successful for Energy Assets incorporating good organic growth across our asset portfolio and Siteworks business from strong trading activity and new contract wins.



We were delighted to welcome Blyth into the Energy Assets Group in December 2015. This acquisition represents another step in our continuing growth strategy and has allowed us to expand our services to become a fully accredited multi-utility infrastructure provider in the commercial area. The acquisition has also enabled us to extend our utility networks offering to businesses within the UK house building sector at a very exciting time following recent government announcements that investment in the housing sector is set to double to support home ownership.



The addition of Crown to our customer portfolio and the confidence they have shown in the capabilities and technology that the Energy Assets Group can offer is testament to the hard work and focus of our operational team. The relationship is progressing well as we continue to deliver a level of service which matches their expectations.



We continue to enjoy good relationships with all of our banking partners who have expressed a keen interest to continue working with the Group. We are confident that these relationships will provide sufficient funding to facilitate our future growth plans as we work towards being the supplier of choice for customers within the UK I&C utilities sector and the largest independent provider of I&C energy metering services in the UK.



The new financial year has started well, all segments continue to grow and we are on track to deliver another year of strong operating and financial performance."