LONDON (Alliance News) - Utility cost management consultancy Utilitywise PLC on Tuesday posted higher pretax profit driven by a one-off gain, changes to its management team and said it has secured better terms on an existing contract.
The group, which advises businesses on their energy procurement, said pretax profit grew to GBP12.1 million in the half to the end of January from GBP7.3 million a year earlier, mostly due to a GBP5.7 million one-off gain made from the release of deferred consideration the group had expected to pay to the sellers of T-Mac Technologies.
Adjusted pretax profit, removing all the one-offs, increased 17% year-on-year to GBP9.1 million from GBP7.8 million, Utilitywise said.
The company will pay an interim dividend of 2.2 pence per share, up 29% year-on-year from 1.7p.
Revenue grew to GBP41.6 million in the half, up 36% from GBP30.6 million a year earlier, as total customer numbers grew 33% and the group increased its energy consultant headcount 39%. Utilitywise said enterprise revenue added to its order book in the first half grew 50%, covering mostly SME customers.
The company said it remains confident about its prospects and expects a better performance in the second half compared to the first.
The group also said it has reshuffled its management team and Geoff Thompson, currently chief executive, will become executive chairman. Utilitywise said it has "identified a high calibre external candidate" to replace Thompson in the CEO role and will announce further details on this, and when Thompson will move roles, when it has agreed a contract.
Separately, Utilitywise said it has secured an immediate change to the payment terms with a key energy supplier client.
The result of the renegotiated terms, which will govern when Utilitywise received a cash payment when contract extensions are secured, Utilitywise expects to receive GBP2.3 million in cash from the supplier prior to the end of its financial year at the end of July.
"This is another success in harmonizing terms with an important supplier and we are pleased to receive the cash payment earlier than originally due," Thompson said.
Utilitywise shares were up 5.4% to 191.00p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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