EAS.L Regulatory News (EAS)

For immediate release 13 January 2015

Energy Assets Group plc

("Energy Assets" or the "Group")

Interim Management Statement

Another quarter of strong growth

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 October 2014 to the present date. 

Financial highlights for the nine months to 31 December 2014

· The Group has delivered another strong performance in the period, which is significantly ahead of the same period in the prior year;

· Total revenue for the period increased by 47% to £25.9m (9 months to 31 December 2013: £17.6m);

· Recurring revenue increased by 38% to £16.8m (9 months to 31 December 2013: £12.2m), accounting for 65% of total revenue;

· Siteworks revenue increased by 65% to £9.1m (9 months to 31 December 2013: £5.5m);

· At 31 December 2014, the Group had available facilities with its funding partners and cash at bank totalling £41.3m which includesa new £5m revolving credit facility with Santander secured in November 2014 to provide additional finance to support the continued growth of the business.

Operational highlights

· The Group's owned and managed asset portfolio has increased by 3% since the half year to circa 345,000 assets (30 September 2014: circa 334,500). Of the asset installations in the period, 76% related to the I&C gas sector and the remaining 24% related to the I&C electricity sector;

· Siteworks has delivered a strong performance in the year to date with divisional financial and operating targets being fully achieved;

· The new contract awarded by The Pirbright Institute to design and project manage the installation of gas infrastructure and metering to support the ongoing refurbishment of the organisation's Surrey campus is progressing well and is on course for completion by the end of the financial year. This represents the largest Siteworks project to date with a value in excess of £1m;

· The integration of Origin Technical Business Services Limited, a provider and developer of mobile works management systems, data capture, data hosting and analysis services, is on track following the strategic acquisition of this company in October 2014 and should be completed by the end of the current financial year allowing the Group to further increase the range and sophistication of services offered to customers;

· The strategic agreement with British Gas Business, signed in July 2014, to install advanced meters for around 50% of their UK I&C gas customers has had a slower than anticipated start with only a modest number of installs completed to date during the integration phase. The full installation programme is now not expected to commence until quarter one of the next financial year;

· Bglobal Metering Limited is expected to commence provision of data collection and aggregation services for circa 60,000 advanced electricity meters to be installed by npower over 12 to 18 months, in accordance with an agreement with npower secured in October 2014, early in the new financial year.  

Outlook

The last quarter of the financial year has started well as the Group's major contracts and Siteworks business continue to perform strongly thereby ensuring Energy Assets remains well positioned to achieve its primary objectives:

· To further consolidate its position as the largest independent metering and data 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 and expand the range and complexity of the services provided. 

Commenting on the Group's performance and outlook for the financial year ending 31 March 2015, Chief Executive Phil Bellamy-Lee said:

"Demand for the installation of advanced utility meters and related services remains strong and continues to be driven by regulatory requirements. As a result, I am delighted to report another period of solid trading activity, maintaining a continued pattern of growth across our asset portfolio and Siteworks business and keeping us on track to deliver another significant increase in profitability in the current financial year."

Enquiries

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

Notes to Editors:

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, by number of assets owned and managed. 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 Meter Asset Management (MAM)/Meter Operator (MOP) divisions to the procurement and project management of related utility infrastructure works and the collection and provision of energy consumption data through the Group's Siteworks and Automated Meter Reading (AMR) divisions.

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