ok22 Apr 2013 11:46
Date:
22 April 2013
On behalf of:
BGLOBAL PLC ("Bglobal" or the "Company" or the "Group")
Embargoed until: 0700hrs
BGLOBAL PLC
Trading Update
Bglobal plc (AIM:BGBL), the leading provider of smart energy solutions and services to the UK energy market, is pleased to provide an update on its trading performance for the year ended 31 March 2013 in advance of its preliminary results.
Utiligroup has continued to see strong interest in the software and services that it provides across the utility industry, with particular demand for the "Supplier in a Box™" product. In the 12 months to 31 March 2013, Utiligroup has brought four new entrants into the UK energy market through the Supplier in a Box model and is in the final stages of concluding the sale of two more pre-accredited supply companies, which were expected to complete before the end of March. As well as an up-front fee for each Supplier in a Box, each transaction also includes the sale of software and services which helps to build Utiligroup's recurring revenue stream and improve group margins.
On 28 February 2013 the Group completed the sale of its Australian subsidiary, Utilisoft Pty Ltd ("Utilisoft Australia"), to Hansen Corporation Pty Ltd for a cash consideration of AUD$3.5 million (£2.37 million). The disposal has resulted in a charge to the income statement of approximately £0.38 million due to a write off of intangible assets, recognised in 2010 at the time of the acquisition of Utiligroup by the Company, of £1.96 million. The sale of Utilisoft Australia will allow the Board to focus on its remaining UK operating businesses and continue to develop its "meter to cash" smart meter services platform. The disposal has also strengthened the Group's balance sheet and as at 31 March 2013 the Group had cash in the bank of approximately £3.10 million.
During the year, revenue investment of approximately £0.6 million has been made in establishing Bsmart Energy Solutions, a company that is focused on delivering end to end energy services to the SME market and Nutech Training Limited, a company that provides dual fuel smart meter installation training. Both of these subsidiaries are now generating revenues for the Group.
Development of our Smart Pay As You Go ("PAYG") integrated software solution for both new entrants and existing supply companies, which allows the Group to offer a complete "meter to cash" solution, has progressed well and trials of this solution are due to commence this Summer. The Group has seen strong interest in this solution, which forms an integral part of the Smart Meter Services Platform that the Group has developed.
Over the past few years, the Group has diversified the product offering in order to be no longer solely reliant on the smart metering business. As the Board had anticipated, installation volumes in the Group's smart
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