Energy Assets Group plc: Preliminary Results for the year ended 31 March 2013 Business Wire LONDON -- June 11, 2013 Energy Assets Group plc (“Energy Assets”, the “Company” or the “Group”) Preliminary Results for the year ended 31 March 2013 A Year of Strong Growth and Strategic Acquisition Profit before tax and exceptional items up 34% to £3.9m 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 announce its preliminary results for the year ended 31 March 2013. Financial highlights *Total revenue increased by 42% to £18.0m (2012: £12.7m); *Recurring revenue increased by 48% to £12.3m (2012: £8.3m) representing 68% of total revenue; *EBITDA increased by 37% to £10.8m from £7.9m; *Operating profit before exceptional items increased by 27% to £7.1m from £5.6m; *Profit before tax and exceptional items increased by 34% to £3.9m, in line with market expectations (2012: £2.9m). Profit before tax was £2.9m (2012: £0.2m) after incurring exceptional costs of £1.0m (2012: £2.6m); *Cash generated from operations of £9.2m (2012: £6.5m), a growth of 42%; *Adjusted EPS increased by 39% to 10.90p (2012: 7.85p); *Refinancing of £24m of existing debt held with Lombard resulting in substantial interest cost reductions from an average rate of 8.3% to a fixed rate of 5.27%, resulting in savings of in excess of £0.5m in the first full year; *A further £20m extension to the current Lombard facility on improved terms to facilitate further opportunities to grow the existing meter portfolio. Operational highlights *The metering portfolio owned and installed increased by 28% to circa 81,000 assets (2012: circa 63,000); *Increased cumulative capital investment in meter assets of 36% to £58.3m which has produced long term recurring revenue in the current year of £7.8m (2012: £5.7m); *Meter Asset Management (MAM) services now provided to 27 gas suppliers within the UK I&C gas market; *The number of meter points from which data is collected on behalf of our customers has increased by 150% to circa 52,500 (2012: circa 21,000). This represents one of the largest portfolios within the UK I&C sector; *Continued strong performance in AMR contract renewals with a 98% success rate based on the number of meter points as a percentage of AMR units, ensuring a continuation of the long term revenue attached to these contracts; *Revenue from Siteworks activity increased by 30% to £5.7m (2012: £4.4m); *Transformational acquisition of EA Energy Solutions Limited (EAES), formerly Gazprom Global Energy Solutions Limited (GGES), on 11 October 2012 which brings exclusive agreements with Gazprom for all three of the Group’s business streams (Metering, AMR and Siteworks); *New agreement with DONG Energy Sales (formally Shell Gas Direct) for the provision of advanced metering technology and data services solutions to DONG'sI&C customers; *During the year the Group successfully registered as an Ofgem Approved Meter Installer (OAMI) and has developed an internal resource team enabling further control over operational activities. Current trading and outlook *The new financial year has started strongly with management’s growth target across all divisions on track; *Contracts with Gazprom Energy, British Gas and Corona Energy continue to perform strongly; *The outlook remains positive and has been considerably enhanced by the acquisition of EAES which has significantly added to the Company’s install and meter exchange growth prospects; *Additionally, new cutting edge technologies will enable Energy Assets to offer further cost effective solutions to our clients. These include: *Multi utility GSM data loggers, with owned IP, that are capable of delivering next day data granularity of half hourly or less; *Low powered radio technology providing delivery capability where normal GSM coverage is poor or unavailable and at a lower cost per unit on multi meter/multi site applications; *Data delivery via Ethernet which provides the capability to address the increasing demand for real time/live data rather than next day as has been the industry norm; and *Proven, efficient, and low cost demand side management of electrical equipment/circuits using the Z-LYNK system, a Power Line Communication technology that has been deployed widely for many years across a range of end user applications. Commenting on the strategy and outlook, Chief Executive Phil Bellamy-Lee said: “I am delighted to be able to report a strong operational and financial performance in the year to 31 March 2013, reflecting an excellent first full year as a listed company, with continued growth across our three business divisions. Our primary strategy continues to be the expansion of our market share within the UK I&C sector and the consolidation of our position as the UK’s leading independent MAM. This position remains secure and has been further enhanced through our performance in this financial year. Our current contracts with Gazprom Energy, British Gas and Corona Energy continue to perform strongly and the transformational acquisition of EAES provides us with an opportunity to more than double the size of the I&C metering portfolio in place at the time of acquisition during the five year term of the metering contract with Gazprom. Additionally, over the last 12 months, we have assembled a team of business and technology experts to build on our range of technologies which are yet to be fully exploited and to add focus to the further development of current core and non core market sectors, building the Energy Assets offering for the future. We are confident of gaining additional work with other major gas suppliers and, together with the opportunities arising from Government regulatory requirements and our range of technology and supply chain partners, we are 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 and systemised approach will secure continued growth into the future.” Enquiries For further information visit www.energyassets.co.uk ^1 by number of meters owned and managed Contact: Energy Assets Group plc Phil Bellamy-Lee / John McMorrow Tel: +44 (0)1506 405 405 or Buchanan Richard Darby / Diane Stewart / Carrie Clement / Clare Akhurst Tel: +44 (0)20 7466 5000 or Numis Securities Limited Charlie Farquhar / Stuart Skinner Tel: +44 (0)20 7260 1000 or Macquarie Capital (Europe) Limited Steve Baldwin / Dan Iacopetti Tel: +44 (0)20 3037 2000
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Energy Assets Group plc: Preliminary Results for the year ended 31 March 2013
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