7 Mar 2017 07:00
Date: 7 March 2017
Lakehouse plc ("Lakehouse" or the "Company")
New Contract Win & Update on Trading
Lakehouse awarded a £39m metering contract in the West Midlands with Scottish Power
Lakehouse, the asset and energy support services group, is pleased to announce the award of a major contract with Scottish Power ("the Contract"). The Contract commences on 1 May 2017 and requires the installation of some 400,000 meters, comprising both smart meters and "business as usual" installations. The Contract is anticipated to be worth £39m over its four year term.
The Contract covers the West Midlands and is in addition to the Group's £37m domestic smart meter contract with Scottish Power across Northern Scotland, Wales and North West England, announced on 2 August 2016.
The Group considers its metering business, Providor, to now be a leading contractor in the roll-out of smart meters on a nationwide basis, placing it well for future growth.
Trading Update
Elsewhere the Energy Services Division has had a good start to the current financial year ("FY17"), securing important External Wall Insulation contracts with Fife Council, Rosehill Housing Association, Grampian Housing Association and the London Borough of Camden.
The Compliance Division has had a number of important contract wins in FY17, meeting our strategy to grow organically in both service lines and geographic footprint. These include a £7m commercial gas programme with London & Quadrant over five years, a £2.8m heating and boiler replacement programme with Central Bedfordshire Council, a £2m heating servicing and repairs contract with Derbyshire County Council over two years, a £1m fire equipment service and maintenance contract with Shepherd's Bush Housing Association over three years, a four year legionella framework with Procurement for All potentially worth £650,000 and a £1.6m lift modernisation programme with the London Borough of Hammersmith and Fulham. The Division has also been successful in resecuring a number of existing contracts, which help underpin the prospects for the business.
The Construction Division was delighted that the Chadwell Heath Campus at Redbridge College, a Lakehouse design and build project, won the Light and Exterior Surface award at the recent Surface Design Awards, demonstrating the quality and innovation Lakehouse brings to such works. The division has also secured a number of important new wins in FY17, including a £6.1m contract with Uxendon Manor Primary School (London Borough of Brent), a £4.2m contract for Haslam House & Chichester Court (London Borough of Harrow) and a £2.7m contract for Harris Academy (London Borough of Merton). The division continues to experience delays on new contracts related to two stage procurement, albeit 14 of the 17 contracts discussed in the FY16 annual report have now mobilised.
The turnaround of the Property Services Division continues, with the new management team in place implementing the strategy.
Bob Holt, Executive Chairman, said:
"We are very pleased to have been awarded this significant contract, further expanding our relationship with Scottish Power and demonstrating our excellent customer service levels. The award of this latest contract reaffirms our strategy of becoming a best in class supplier in the energy services market.
Elsewhere the Group is performing to the Board's expectations as a result of the strategic initiatives implemented in each division and we expect a strong second half performance from the Group as previously indicated. We remain focused on restoring shareholder value by delivering against our organic growth strategy."
Contact:
Lakehouse plc Telephone: 01708 758800
Bob Holt, Chairman (07778 798816)
Michael McMahon, Chief Operating Officer
Jeremy Simpson, Chief Financial Officer
Camarco Telephone: 0203 757 4992
Ginny Pulbrook/Tom Huddart