25 Mar 2020 07:00
25 March 2020
COVID-19 Update
Calisen plc ("Calisen" and together with its subsidiaries the "Group") has taken the decision to temporarily suspend all non-essential installations and field services. This follows recent direction from the UK Government and consultation with its customers who have also taken similar decisions in respect of their own installation activities.
The Group's priority is the safety and wellbeing of its staff, customers and consumers. Calisen's Lowri Beck subsidiary has therefore closed all its offices and warehouses with the exception of facilities used by a small group of engineers who remain on standby to respond to emergency call-outs.
Since there will now be a reduction in installations, Calisen is withdrawing guidance for an average of 100,000 meter installations per month in 2020. Given the uncertainty over the duration of the COVID-19 outbreak, it is not possible to give revised guidance for 2020 installations at this stage.
Cash flow and balance sheet remain strong
The reduction in the number of meter installations for a period of time will reduce the capital expenditure requirement. Additionally, reduced smart meter installations are expected to result in our traditional meters remaining on the wall and generating revenue for longer. The Group has a large existing portfolio of 8.6 million revenue generating meters (at 31 December 2019). This existing portfolio of meters produces the great majority of existing and recurring revenue, EBITDA and cashflow for the Group, which Calisen does not expect to be impacted by the measures currently proposed to tackle COVID-19. With existing meters continuing to generate cash and lower levels of capital expenditure, the Group's net cashflow will increase during this period.
At IPO, Calisen raised £300m of additional funds (prior to fees) of which the majority was used to de-lever the business. The Group, as at the end of February, had cash balances available of £78.9 million and committed undrawn funding facilities in place of £984.7 million, including an undrawn 5-year £240 million revolving credit facility. These facilities combined with internally generated cashflow mean the Group has sufficient funding to meet its pipeline of metering opportunities as disclosed at the time of the listing. No meter funding facility renewals fall due before October 2022 with most debt structured as long-term amortising facilities.
Current trading and outlook
Trading for the year-ended 31 December 2019 and for the period ended February 2020 has been in line with expectations. The Group intends to provide more detailed information regarding 2019 performance in its full year results on 21 April 2020.
Calisen currently believes the impact from COVID-19 will not be material to its longer-term plans for growth in the metering portfolio to the end of 2024.
Commenting, Calisen CEO Bert Pijls said:
"As COVID-19 continues to have a profound impact on lives across the UK, we believe it appropriate to take action to minimise its impact and safeguard the health and well-being of our employees, customers and consumers by temporarily suspending non-essential installations and field services.
"Since our IPO in February, Calisen's installed meter portfolio has continued to generate steady and resilient cash flows underpinned by our strong balance sheet. I am confident that the combination of our solid business model and financial strength will see the Group deliver growth as expected in the longer term."
Media enquiries
Finsbury (public relations adviser to Calisen)
Dorothy Burwell / Harry Worthington
+44 7733 294 930 / +44 7818 526 556
Calisen-LON@finsbury.com
Investor and analyst enquiries
Calisen investor relations:
Adam Key, Investor Relations DirectorTel: +44 161 220 1900 / Mob: +44 7572 231453adam.key@calisen.com
This announcement includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Group's control and all of which are based on the Directors' current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "guidance", "believe", "expects", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned", "targets" or "anticipates" or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group concerning, among other things, the results of operations, financial condition, prospects, growth, strategies, and dividend policy of the Group and the industry in which it operates. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements. Such forward-looking statements contained in this announcement speak only as of the date of this announcement.