Member Info for peakyblinders

Even if they were just buying the customer base it could prove to be a good deal. If they really do have 40,000 active customers, even if they renewed half of them over time at an average order value of £1,500 each that’s £30m

I think he’d struggle to find a buyer.

I would be surprised if some Private Equity houses weren’t interested. Typically they would look to strip-out lots of costs and sweat the customer-base as much as possible (as quickly as possible). Interesting to see yesterday’s news re LDC / Love Energy Savings. £25m deal.

True but if the shareholders decide its a good deal then it doesn’t really matter what Management think.

Not true. It’s down to acquiring company to decide.

That’s just Corporate Division. Their numbers have been pretty weak historically so an increase of 252% is relative. Enterprise Division contributed 80% of revenue in FY17 with Corporate only contributing 20% (approx).

Ironic isn’t it? The challenge is proving mis-selling. The sector is unregulated (unlike financial services). It’s notoriously difficult to get out of a commercial energy contract. Business Energy Claims takes a share of any money they recover for their clients apparently.

They’re not free. The exercise price is 28.9p so that’s what he pays for each share, assuming the business has achieved the targets. He can then sell them whenever he wants and take the profit (assuming there is one).

Interesting article in yesterday’s edition re unscrupulous energy brokers. UTW was mentioned and there were quotes from 2 ex-employees (including Ex-CFO who made £millions from UTW and is now preaching about unscrupulous energy brokers - how ironic!).

Market probably waiting for year end trading update

Actualky I think it’s nearer 72p

Yes but that 250% target is within 3 years so I guess it’s achievable at a stretch

It’s a combination of share price increase and dividends and is expressed as an annual %

Not sure where you get figure from. The exercise price is 28.9p and the minimum TSR is 250% wirh free cashflow of £8.4m (by 2021). Pretty ambitious targets.

He’s not. I agree. It tells us nothing about how they intend to achieve those numbers. Driving inbound sales through their price comparison website? No chance. Not unless they have Comparethemarket’s advertising budget. Online is hugely crowded and the margins are tiny. Their model of applying uplifts doesn’t work in the online world so they would judt generate a dmall fixed fee for each sale (typically £50 per meter).

I meant the best option for the future of the company (and its employees). I’ve written-off my investment so anything I get back from now on is a bonus. Thankfully I sold the bulk of mine at £2:10 so I was one of the lucky ones.

I’m an ex-investor. I still hold a small volume but don’t anticipate recouping my initial investment. I don’t disagree with some of your points and genuinely hope you’re right. For me, the best option for UTW would be a buyout or it de-lists.

Sorry but you guys are deluded if you think this will make any difference. They bought EIC then scrubbed it to the ground by imposing the UTW ‘up-lift’ commission modelbto what was a true business energy consultancy. It cost them a fortune. They bought T-Mac to get into the building controls business. That went well!! They’d already squandered hundreds of thousands of £££ on their Edd:e product and that got also got scrapped. What makes you think today’s announcement will be different? They’re now trying to pitch themselves against a whole host of long-established players in this space.......and their credibility is zero. Most of their Corporate Division sales / BDM have gone.

The market’s reaction is ridiculous (but does show how desperate people are for some positive news from UTW). There is absolutely no chance that Vodafone would open-up their Client-base to these guys. Also, the proportion of businesses in the UK that use this type of technology is tiny compared with the energy procurement market. SMEs aren’t interested as the costs are totally disproportionate to their energy spend.

The other irony is that their ex CFO has also setup his own business (Troocost) and is trying to build his brand on the basisv that brokers rip-off Clients.......didn’t seem to bother him when UTW floated and he owned 10%......