EAS.L Regulatory News (EAS)

Energy Assets Group plc

("Energy Assets", the "Company" or the "Group")

Interim Management Statement

Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial ("I&C") gas metering services in the UK (by number of meters owned and managed), is pleased to issue its Interim Management Statement for the period from 1 April 2012 to 30 June 2012. 

Group revenue for the three months to 30 June 2012 was £3.7m showing an increase of 37% on the comparative figure to 30 June 2011 of £2.7m. Recurring revenue increased 33% from the corresponding period to £2.4m (30 June 2011: £1.8m), accounting for 65% of total revenue (30 June 2011: 67%). The business outlook for 2012/13 remains positive and the Company remains well capitalised with a solid balance sheet.

The Group continues its active discussions regarding potential new business opportunities with gas suppliers, other market participants, and end user consumers requiring a fully integrated Metering, AMR, and Siteworks service provision.

Meter Asset Management

The metering portfolio owned and managed has increased by 8% since the year end to c.68,000 assets1 (31 March 2012: c.63,000) and by 33% from c.51,000 assets over the 12 months since 30 June 2011. The Group's metering assets are spread across 23 gas suppliers who represent over 80% of the UK I&C gas market by volume of gas supplied.

Siteworks

The Siteworks business has delivered a strong first quarter performance with divisional targets being achieved. Revenue increased by 29% to £1.2m compared to the corresponding period last year and the outlook for the second quarter remains buoyant and in line with management expectations.

Pulse 24 - Automated Meter Reading (AMR)

The AMR division has focussed on the renewal of existing contracts in the first 3 months of the financial year achieving a very high success rate of 98% based on the number of AMR units available for renewal. With in excess of 21,000 data loggers installed, Energy Assets currently owns and manages one of the largest independent portfolios in the UK I&C market and, although first quarter growth in AMR units has been slower than expected, the Group remains confident of increased growth for the year as a whole.

Commenting on the Group's first quarter performance and outlook for 2012/13, Chief Executive Phil Bellamy-Lee said:

"First quarter trading remains in line with management expectations as the Group continues to expand its I&C metering portfolio and increase its market share in line with its primary strategy.

Our successful positioning as the leading independent MAM (by volume of meters owned and managed) and strong financial position gives us the flexibility to respond rapidly to future opportunities. Government regulatory requirements to ensure meters in the UK are advanced gives rise to numerous opportunities within the I&C gas industry and Energy Assets is well placed to take advantage of these.

Overall, the Group remains well funded and continues to look to the future with confidence."

1 At 30 June 2012, the c.68,000 meters owned and managed consist of c.53,000 I&C gas meters and c.15,000 domestic meters compared to c.48,000 I&C meters and c.15,000 domestic meters at 31 March 2012.

Enquiries

For further information visit www.energyassets.co.uk, where this statement is also available, or contact:

Notes to Editors

Energy Assets provides gas metering and related services in the I&C segment of the UK gas market and is the largest independent provider of I&C gas metering services in the UK (by number of meters under management). The Group offers gas suppliers and end-user consumers of gas a broad spectrum of metering services from the provision and management of new and replacement meters through its MAM Services division to the procurement and project management of related gas infrastructure works and the collection and provision of gas consumption data through the Group's Siteworks and AMR divisions.