Vipera Regulatory News (VIP)

7 Dec 2007 08:00

Energy Asset Management PLC07 December 2007 Energy Asset Management Plc (the "Company" or "EAM")) Trading Update Exciting contracts have either now been signed or are in advanced stages ofnegotiation, demonstrating that there is strong market appetite for ourcompetitively priced and efficiently delivered metering and data provisionservices. The timeframe for completing such discussions and implementingcontracts however, is notoriously protracted in this sector and although majorlong term contracts have been secured at a rate higher than previouslyanticipated the Company will not achieve it's monthly profit and cashprojections previously advised for 2007. Since the Company has high operationalgearing the full benefit of our current and expected contracts and strategicalliances will add only a small increment to costs enabling profitability to bequickly attained and the directors continue to remain optimistic this will befully reflected in the results for 2008 and 2009. In anticipation of theaccelerated growth the Company has decided to expand its IT infrastructure tofacilitate the use of a "hand held" works management system by field operativesin order to further improve efficiency and effectiveness. The Company thereforemay carry out a limited placing of new ordinary shares to accommodate this ITrequirement and provide additional working capital. Contract Awards Customer Groups - High Street Retail - Public Sector The Company is pleased to announce that, following successful implementation ofits electricity metering project with Woolworths, services provided by EnergyAssets Limited (a wholly-owned subsidiary of EAM) have been extended to includegas metering and data collection services, including the installation andmanagement of a SMS-enabled gas metering solution. Installations are underway. Similar success has been achieved on the Marks and Spencer gas meter datacollection contract. This has been successfully completed and has now beenextended to incorporate gas meter exchanges for a further 100 sites. Such is thesuccess of the gas metering project this has now been extended to specific Marksand Spencer electricity metering sites and water metering sites. Installationsare underway. EAL's success with Woolworths and Marks and Spencer have generated interest fromother similar high street retail groups and we are presently at varying levelsof negotiations with a number of these retail groups, with trials underway insome cases. Our present strategic alliance with IMServ, a subsidiary of Invensys Plc, has inaddition introduced several high street and blue chip names to our portfolio,ranging from Local Authorities to public service and leading financialinstitutions. These prospects are existing customers of IMServ and we thereforeanticipate a smooth transition into these customers. EAL have recently successfully completed a significant gas meter exchange anddata collection programme on behalf of a major Local Authority. The directorsbelieve that this programme will be extended to position EAL as the LocalAuthority's exclusive metering services provider. Such was the success of thisprogramme the Local Authority energy manager has highly recommended EAL to otheradjacent Public Sector groups and more importantly to neighbouring LocalAuthorities. Energy Suppliers EAL has signed a further 3 long term contracts with established energy suppliersfor the provision of new and exchange metering services and data collection andmanagement services. Contract discussions are progressing at varying stages with a further 5 energysuppliers to provide similar metering and data services. Others A unique opportunity has been presented to EAL to collaborate with anindependent gas transporter. This opportunity introduces EAL to the potential of15,000-20,000 new domestic, industrial and commercial metering installations onan annual basis. Medium term contracts have been signed and implementation isunderway. This opportunity also extends to "smart metering" and the potential tobecome involved in social housing and fuel poverty projects which all attractGovernment grant funding. This one project in isolation has the ability todeliver EAL's original expectations and objectives over the coming 3 years. Projects of Public Interest • Tower of London • Windsor Castle • O2 Arena (Millennium Dome) • Liverpool Arena and Convention centre All of the above are major tourist attractions and have one thing in common,namely EAL meters and data collection solutions have recently been fitted ateach of these sites. Managing Director, Alan McKeating, stated, "The business is now in a strong position and significant effort is now beingfocused on progressing, mobilising and implementing current contractualagreements with customers for new and existing business. The Board is confidentthat the potential for the business exceeds our original expectations, as theintent to become "green", combat rising energy costs, allied to the need toconserve dwindling energy resources are all factors driving major industrial andcommercial customers towards the need for our competitively priced andefficiently delivered metering and data provision services." I look forward to announcing further contract wins regularly throughout the yearand more importantly maintaining awareness of the progress of the aboveprojects. For further information please contact: Energy Asset Management Plc Stephen Barclay, Non-Executive ChairmanTel: 07767 444114 Alan McKeating, Managing DirectorTel: 07843 231372 Ruegg & Co Limited Gavin BurnellTel: 0207 584 3663 This information is provided by RNS The company news service from the London Stock Exchange