EAS.L Regulatory News (EAS)

For immediate release 28 July 2014

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 2014 to the present date. 

The Group has delivered another quarter of excellent trading performance and is on course to achieve anticipated levels of growth. 

Financial highlights for the three months to 30 June 2014

· Total revenue for the period increased by 53% to £8.4m (3 months to 30 June 2013: £5.5m);

· Recurring revenue increased by 45% to £5.5m (3 months to 30 June 2013: £3.8m), accounting for 65% of total revenue;

· Siteworks revenue increased by 71% to £2.9m (3 months to 30 June 2013: £1.7m);

· At 30 June 2014, the Group had available facilities with its funding partners and cash at bank totalling £42.8m.

Operational highlights

· On 23 July 2014, it was announced that Energy Assets has signed a strategic agreement with British Gas Business (BGB) to install advanced meters for around 50% of BGB's I&C customers across the UK. These meters will have a 20 year contracted term which allows for an annual RPI price adjustment and provides opportunity for significant future growth to the Energy Assets long-term recurring revenue portfolio;

· On 17 April 2014, the Group completed the acquisition of BGlobal Metering Limited for £2.3m. This provides the systems, accreditations and expertise required for Energy Assets to operate as a leading provider in the electricity sector. The acquisition is in line with the Group's strategy to offer metering and associated energy services across a multi-utility platform and integration of this business into the Group is progressing well;

· The Group's owned and managed asset portfolio has increased by 98% since the year end to circa 323,000 assets (31 March 2014: circa 163,500), incorporating circa 150,000 assets from the acquisition of BGlobal Metering Limited. Of the asset installations in the period, 79% related to the I&C gas sector and the remaining 21% related to the I&C electricity sector;

· Siteworks has delivered a strong first quarter performance with divisional financial and operating targets being achieved.

Outlook

The new financial year has started strongly, all segments continue to grow and the Group is on track to deliver another year of good operating and financial performance ensuring Energy Assets is well positioned to achieve its primary objectives:

· To further consolidate its position as the largest independent metering service provider to the UK I&C gas sector;

· To grow its position across the utility sector as a whole; and

· To grow the successful Siteworks business. 

Commenting on the Group's first quarter performance and outlook for 2014/2015, Chief Executive Phil Bellamy-Lee said:

"First quarter trading has been very encouraging, showing a continued pattern of growth across our asset portfolio and Siteworks business.

The Group has made two significant steps towards the achievement of our primary objectives within the period. The strategic agreement with BGB provides opportunity for significant future growth to the Energy Assets long-term recurring revenue portfolio and is a significant step in the consolidation of our position as the largest independent metering service provider to the UK I&C gas sector.

Additionally, the BGlobal Metering Limited acquisition enables Energy Assets to expand its presence into the electricity sector and is a significant step in the delivery of the Group's strategy to offer services across a multi-utility platform.

Energy Assets is a strong, well funded and growing company. With our attractive business model, the opportunities arising from Government regulatory requirements and our reputation and relationships across our markets, we are confident of delivering continued future growth."

Enquiries

For further information visit www.energyassets.co.uk or contact:

Notes to Editors:

About Energy Assets 

Energy Assets provides metering and related services in the I&C segment of the UK utility market and is the largest independent provider of I&C gas metering services in the UK. The Group offers utility suppliers and end-user consumers of energy 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 infrastructure works and the collection and provision of consumption data through the Group's Siteworks and AMR divisions. 

Energy Assets is listed on the Main Market of the London Stock Exchange.