EAS.L Regulatory News (EAS)

For immediate release 24 July 2013

Energy Assets Group plc

("Energy Assets" 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[1], is pleased to issue its Interim Management Statement for the period from 1 April

2013 to the present date. 

The Group's overall trading performance continues to improve on the prior year and is on course to deliver anticipated levels of growth in line with management expectations.

Group revenue for the three months to 30 June 2013 was £5.5m showing an increase of 49% on the comparative figure to 30 June 2012 of £3.7m. Recurring revenue increased 58% from the corresponding period to £3.8m (30 June 2012: £2.4m), accounting for 69% of total revenue (30 June 2012: 65%). 

The Group maintains substantial headroom in its funding facilities and had cash at bank of £8.8m at 30 June 2013.

Meter Asset Management

The metering portfolio owned and managed has increased by 7% since the year end to circa 86,500 assets (31 March 2013: circa 81,000) and by 27% from circa 68,000 assets over the 12 months since 30 June 2012. 

The Group's metering assets are spread across 28 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 42% to £1.7m compared to the corresponding period last year and the outlook for the second quarter remains positive and in line with management expectations.

Automated Meter Reading (AMR)

With in excess of 54,000 meter points from which data is collected on behalf of our customers, Energy Assets currently owns and manages one of the largest portfolios in the UK I&C market. 

The AMR division also continues to achieve a very high renewals success rate of 98% based on the number of AMR units available for renewal, extending the long term revenue stream from these contracts. 

Research and Development Activity

We continue to seek to offer market leading technologies to our clients and, alongside the continued development of our own internal products and intellectual property, we have recently joined forces with Elster, a world leading producer of advanced metering products and intelligent metering solutions, entering into an agreement for the long term supply of large capacity gas meters together with a joint commitment to work together in the development of absolute encoder technology for the UK I&C gas market.

The development activity to date has involved a joint project team working to develop a specific variant to Elster's standard absolute encoder technology that can interface with Energy Asset's own Safir data logger thus providing a unique solution to the Group. 

In addition, the Energy Assets technical team has provided field and application support to the Elster R&D team in their development of a new diaphragm meter with consumption data logging and communication capability. This meter will be added to the extensive technology and metering range provided by the Group when it is launched later this year.

Further details of our new joint development with Elster were announced on 17 July 2013.

Commenting on the Group's first quarter performance and outlook for 2013/14, Chief Executive Phil Bellamy-Lee said:

"First quarter trading has been very encouraging, showing our continued pattern of growth. The Group continues to expand its I&C metering portfolio and increase its market share in line with its primary strategy.

The underlying business continues to perform well and we remain confident of gaining new work with other major gas suppliers. Our strong supply chain relationships, our focus on technology and the opportunities arising from Government regulatory requirements, put us in a strong position to deliver our long term growth strategy.

The Group remains well funded and we are confident that our attractive business model will secure continued growth into the future."

Enquiries

For further information visit www.energyassets.co.uk 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.