LONDON (Alliance News) - Entu (UK) PLC on Tuesday reported a big rise in pretax profit for the year as revenue increased across its operations, and said it has signed a memorandum of understanding with Flowgroup PLC to sell, install and maintain Flowgroup's domestic boiler units.
Entu, which provides energy efficiency products and services to the UK residential market, said its pretax profit for the year to October 31 was up 48% to GBP9 million from GBP6.1 million last year.
The rise was driven by a 25% increase in revenue for the year, up to GBP119 million from GBP95.5 million a year earlier. Revenue increased across its business segments, with home improvement revenue rising to GBP84.3 million from GBP71.2 million and energy generation and saving products sales rising to GBP23.9 million from GBP20.8 million.
Revenue in its insulation unit also rose, up to GBP8.4 million from GBP1.2 million, while its repair and renewal service agreements business increased revenue to GBP2.4 million from GBP2.2 million.
The group, which listed in London in October, said it will pay a special interim dividend of 1.5 pence per share.
In addition to the results, the group said it has signed a memorandum of understanding with fellow AIM-listed Flowgroup, under which it will sell, install and maintain Flowgroup's electricity-generating domestic boilers.
"This has been a significant year of development for the group, culminating in our admission to AIM in October 2014. We have strengthened our leading positions in our target markets across the UK, buoyed by our strong brand reputation, our national coverage, and by steadily improving consumer demand," said Entu Chief Executive Officer Ian Blackhurst.
"With our market leading positions, diversified product portfolio and deep customer knowledge, we are able to look forward to the future with confidence, and the board believes Entu is well positioned to deliver growth and shareholder value," Blackhurst added.
Entu shares were up 6.9% to 122.40 pence on Tuesday morning, while Flowgroup shares were up 2.8% to 36.25 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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