LONDON (Alliance News) - Utilitywise PLC Tuesday reported a material rise in revenue and profit in the last financial year, leading it to lift its full year dividend by 25% as the company continues to attract new customers.
The independent utility cost management consultancy reported a healthy rise in pretax profit in the financial year ended July 31 to GBP14.1 million from GBP11.7 million a year earlier as revenue soared to GBP69.1 million from GBP48.9 million.
The rise in revenue boosted gross profit up to GBP30.3 million from GBP22.4 million, bringing earnings before interest, tax, depreciation and amortisation to GBP17.8 million from GBP14.5 million.
Revenue rose after its contracted customers continued to grow. At the end of July, the company had around 26,000 customers on its books, compared to the 10,000 it had when it launched its initial public offering back in 2012. It also has 4,000 customers in Europe.
Reflecting that, the company now employs 610 energy consultants at the end of the year compared to 363 at the end of July 2014.
"We have slowed and refocused our recruitment in recent months to ensure that we have the highest quality of staff capable of delivering our trusted advisor strategy effectively and increasing our new customer conversion rates," said Chief Executive Geoff Thompson.
"Since period end the group's UK customer base has increased further to 27,265 as at September 30, with a corresponding increase in secured but not yet recognised revenue to GBP28.3 million as at September 30 compared to GBP26.2 million at period end," he added.
Following the lift in profit, Utilitywise increased its total full year dividend for the financial year by 25% to 5.0 pence from the 4.0 pence paid last year.
In a separate statement, Utilitywise said it has agreed "important and immediate" changes to its payment terms with one of its key energy suppliers.
Previously, Utilitywise would receive the majority of its revenue from a customer contract once it ended, whilst it received the majority of revenue from new customer contracts upfront. Under the new terms, Utilitywise will now receive 80% of the contract revenue once it has been signed and the last 20% once the contract ends.
Those new terms have been backdated, meaning Utilitywise has been paid GBP3.6 million by the supplier.
"The recognition by our supplier to treat a contract extension in the same way it does for a new customer acquisition is very positive and addresses a concern that the revenue was being booked in advance of the payment of our commissions," said Thompson.
"Whilst this amendment to payment terms with one of our major suppliers is very welcome, we are in ongoing discussions with all our other key energy suppliers and will update the market as and when we are in a position to do so," he added.
"Our outlook for the coming years remains extremely positive and we look forward to welcoming thousands of new customers to the services and products we can deploy to help them optimise their energy usage and to save money," said Thompson.
In a third statement Tuesday, Utilitywise said it has appointed Brin Sheridan as its new chief operating officer. Sheridan became the managing director of The Energy Solutions Group in 2006 and has previously held UK and European leadership positions with Satchwell Control Systems and Schneider Electric.
Chairman Richard Fegen said: "We are delighted that Brin has chosen to join us, at what is an exciting time for the business. Brin brings a wealth of experience from his previous roles and will be integral in ensuring that, as our range of products and services grows, we are well-placed to continue on our growth trajectory."
Utilitywise shares were trading up 1.1% to 178.0 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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