Interim Results to 31 January Geoff Thompson, CEO Jon Kempster, CFO Brin Sheridan, COO

Transcription

1 Interim Results to 31 January 2016 Geoff Thompson, CEO Jon Kempster, CFO Brin Sheridan, COO

2 Key messages Group revenue increased 36% to 41.6m Adjusted EBITDA increased 15% to 9.7m Enterprise revenue added to order book increased by 50% to 40.0m Total customer numbers increased by 33% to 29,288 Energy consultants increased by 39% to 625 Continued customer acquisition growth Strengthened management team Development of energy services inclusive of UMP roll-out We are 2

3 Two divisions: Enterprise and Corporate Enterprise Division Services small, medium and multi-site opportunities Providing a full utility management service covering power, gas and water a range of fixed procurement packages incorporating monitoring and energy saving products Fast sales cycle enabled by Quantum, our in-house CRM system Historic engine of organic growth Uses well-established trading arrangements with UK energy suppliers Supported by energy services operation Corporate Division Industrial & Commercial (I&C) focus Providing a full utility management service covering power, gas and water a range of bespoke fixed and flexible energy procurement packages a full set of monitoring, management and energy saving products, including t-mac Compliance, invoice checking and energy market advice services Consultative sales cycle 3

4 Market Engagement 2.45m businesses 593,000 TPS 4,073 businesses Market size 3,455 businesses Large Upper Mid Market Channels to market Field sales, energy consultants, partner channel, inbound Field sales, energy consultants, partner channel, inbound Corporate Division 230,560 businesses 46,494 businesses Lower Mid Market Small Businesses Field sales, energy consultants, partner channel, inbound Energy consultants, partner channel, inbound Enterprise Division 2,168,707 businesses Micro Businesses E-commerce, inbound, energy consultants 4

5 Financial HIGHLIGHTS Revenue 000 s 41,565 EBITDA* 000 s 9,675 PBT** 000 s 9,113 30,557 8,365 7,763 H1 FY15 (restated) H1 FY16 H1 FY15 (restated) H1 FY16 H1 FY15 (restated) H1 FY16 EPS (FD)*** pence Dividend (pence) 2.2 1,648 Net (Debt) / Cash 000 s 8.1 H1 FY15 Apr-15 Jul-15 H1 FY16 H1 FY15 (restated) H1 FY16 H1 FY15 H1 FY16 (4,750) t-mac (6,683) *Adjusted for share based payments of 286k (H1 2015: 366k) and exceptional items 4,055k credit (H1 2015: 194k credit)). **As above but excluding amortisation of 975k (H1 2015: 531k), ***As above but excluding the tax impact of the above adjustments 171k (H1 2015: 162k) (10,242) 5

6 Financial Review

7 INCOME STATEMENT months ended Jan months ended Jan 2015 (restated) % Change Revenue 41,565 30,557 36% Gross profit 16,565 14,144 17% Gross margin 39.9% 46.3% Other operating income % Admin expenses 7,112 5,905 20% EBITDA* 9,675 8,365 16% PBT** 9,113 7,763 17% Strong revenue growth Gross margin impacted across both divisions Adjusted excludes exceptional items in the period Interim dividend of 2.2p, up 29% Earnings per share (FD)*** 9.8p 8.1p 20% *Adjusted for share based payments of 286k (H1 2015: 366k) and exceptional items 4,055k credit (H1 2015: 194k credit)). **As above but excluding amortisation of 975k (H1 2015: 531k) ***As above but excluding the tax impact of the above adjustments 171k (H1 2015: 162k) 7 7

8 EBITDA BRIDGE (0.3) (0.2) 1.4 (0.4) (0.2) Adj. EBITDA H1 FY 2015 Enterprise GP t-mac GP Corporate, ex. t-mac Enterprise office costs Enterprise overheads t-mac overheads Corporate scaling-up EBITDA H1 FY

9 Divisional Performance - Enterprise 000 Utilitywise Enterprise 6 months ended Jan 2016 Utilitywise Enterprise 6 months ended Jan 2015 (restated) % Change Revenue 32,578 24,937 31% Gross profit 12,676 11,231 13% Gross margin 38.9% 45.0% Other operating income % Admin expenses 5,449 4,848 12% EBITDA* 7,447 6,508 14% PBT** 6,991 6,053 15% UK revenue up 6,713k International revenue up 928k GP margin movement: partner commissions ( 0.9m) headcount/recruitment ( 1.4m) marketing ( 0.3m) improved international GP 0.6m Overhead growth controlled *Adjusted for share based payments of 286k (H1 2015: 366k) and exceptional items 4,055k credit (H1 2015: 194k credit)). **As above but excluding amortisation of 975k (H1 2015: 531k) 9

10 m Secured unrecognised future revenue m Unwinding of pipeline Go live of 24.7m: < 1 year = 81% 1 2 years = 16% > 2 years = 3% As at the end of March m 90% Enterprise customer revenue split As at end Jan 2014 As at end July 2014 As at end Jan 2015 As at end July 2015 As at end Jan % 70% 60% 50% 40% 30% 20% 10% 0% H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 New Customers Extension/Renewal 10

11 Divisional Performance - Corporate 000 Utilitywise Corporate 6 months ended Jan 2016 Utilitywise Corporate 6 months ended Jan 2015 (restated) % Change Revenue 8,987 5,620 60% Gross profit 3,889 2,913 33% Gross margin 43.3% 51.8% Other operating income Admin expenses 1,663 1,056 57% EBITDA* 2,228 1,857 20% Corporate revenue up 20%, 1,133k t-mac revenues of 2,234k Like for like GP margin 47% (excluding t mac) t-mac EBITDA 300K in period PBT** 2,122 1,710 24% *Adjusted for share based payments of 286k (H1 2015: 366k) and exceptional items 4,055k credit (H1 2015: 194k credit)). **As above but excluding amortisation of 975k (H1 2015: 531k) 11

12 BALANCE SHEET months ended Jan-16 6 months ended Jan-15 PPE, goodwill and intangibles 40,805 27, 985 Trade and other receivable 25,707 16,307 Total non-current assets 66,512 44,292 Inventories Accrued revenue due > 1 year Accrued revenue due < 1 year JAN-16 JULY -15 JAN-15 (RESTATED) 25,707 22,978 16,306 13,785 8,535 9,370 Trade and other receivable 23,407 15,856 Cash and cash equivalents 6,933 8,247 Corporation tax Total assets 97,360 69,238 Trade and other payables 20,864 20,848 Loans and borrowings 17,175 6,599 Corporation tax and deferred tax 3,745 3,341 Provisions 711 1,073 Total liabilities 42,495 31,861 Net assets/liabilities 54,865 37,377 Supplier advance due < 1 year Supplier advance due > 1 year (1,812) (1,799) (1,301) (2,796) (2,769) (5,678) Net accrued revenue 34,884 26,945 18,697 Net Accrued Revenue Maturity 6 months to July months to July months to July 18 MATURITY PROFILE 12 months to July months to July 20 Post July 20 Maturity Profile 22% 23% 15% 10% 17% 13% 12

13 CASH FLOW STATEMENT months ended Jan months ended Jan 2015 (restated) Cash generated from operating activities pre-working capital movements 15,045 8,541 76% Working capital movements (15,789) (11,960) 32% Income taxes paid (620) (172) 260% Net cash flow from operations (1,364) (3,591) (62)% Net cash used in investing activities (421) (2,079) (80)% Working capital outflow - increase in accrued revenue 7.9m and of t-mac deferred consideration 5.7m Net debt at year end 6.7m, at Jan 16 net debt 10.2m Net cash generated/ (used) in financing activities Net increase/(decrease) in cash and cash equivalents 2,229 (1,881) (219)% 444 (7,551) (106)% 13

14 Enterprise Division Business Review

15 Utilitywise enterprise division 35,000 30,000 25,000 20,000 15,000 15,333 Customer numbers Excluding 5,576 European customers 19,966 25,185 28,384 29,294 Contract renewal rates maintained at circa 80% Utilitywise NPS* positive 52% Aggregated Utilities NPS* negative -36% 10,000 5, Jul-14 Jul-15 Jan-16 Mar-16 Contracted meters 70,000 60,000 56,035 58,136 51,026 50,000 44,193 40,000 32,972 30,000 20,000 10,000 0 IPO 2013 Jul-14 Jul-15 Jan-16 Mar-16 *Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm's customer relationships Energy supplier concentration 6 months ended Jan months ended Jan months ended July 2015 Supplier % of revenue % of revenue % of revenue Other Total

16 ENTERPRISE INITIATIVES Productivity improvements e.g. Electronic letter of authority Roll out of Utility Management Plan Data universe increased with richer data Progress with multi-channel strategy Digital marketing campaigns scaling-up ecommerce site launched P272 opportunity Strengthening of International operations Solid performance in major territories of France and Germany Launch of Utility Management Plan Pipeline/order book 518k 16

17 Marketing campaigns Medical Dental Property Churches ESOS P272 Online switching 17

18 18

19 Corporate Division Business Review

20 Utilitywise corporate division Customer numbers Utilitywise NPS* positive 52% 1, Circa 365,000 energy monitoring points Renewal rates, fixed & flexible procurement 98% Jul-14 Jul-15 Jan-16 Mar-16 *Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm's customer relationships 20

21 Corporate initiatives 67% of renewal revenues already secured 281 ESOS compliance projects won (80% new clients) Launch of ISO service Expansion of our bill and data validation service Water procurement a 2.1bn market opening in 2017 Roll out of Strategic Utility Management Plan t-mac roll-out and integration 21

22 Building Energy Optimisation The Customer Journey Market value 7bn and growing 18.6% CAGR Source: CIL March 2015 Monitoring & Reporting Data Capture Consultancy Services Compliance & Accreditation Controls & Reduction Discovery Consultancy Intervention Strategic Utility Management Plan AM&T Metering Solutions T-mac at the meter EDD:E - at the circuit IoT at the device SmartDash human interface Important because data-led (ie fact-led) Allows us to measure impact Granularity is our USP Lets us track through factual data the benefits we provide to customers Data-led advice How your business works before prescribing solutions Strategic Utility Management Planning Energy Saving Opportunities Cost reduction strategies Compliance ISO 50001, ISO ESOS, CRC, CAA, EPC, DEC Smart or smarter building Dell/Intel/Cisco IoT t-mac SmartDash t-mac analytics t-mac controls Energy Solutions Projects HVAC, lighting, renewable, storage Constant view of your building and its operation Proactive remote services Predictive Analytics Prescriptive Analytics (reactive) 22

23 t-mac the journey so far Growth platform for the new Energy Services Operation Progress with proof of concept in major retail bank project (indicating 29% energy saving from trial to date) SmartDash now available to 1,383 customers in Corporate and Enterprise with more to come 536 Enterprise customers 847 Corporate customers Enhanced technology development team New products launched (SmartDash, App) Dell, Intel IoT relationship 23

24 Dell Strategic OEM Partnership The world is changing Buildings can become intelligent through IoT Any IP addressable equipment 6.4 billion devices billion devices by 2020 Lights PCs, laptops Sockets Appliances Dell strategic partnership provides building systems connectivity that we can control Dell is excited to be working with Utilitywise, and we believe they have the infrastructure, industry knowledge and market reach to introduce innovative IoT solutions. Andy Rhodes, Dell 24

25 Summary

26 Summary Strengthened management team People Operations Director, Adrienne McFarland, January 2016 Chief Operating Officer, Brin Sheridan, November 2015 People strategy roll-out with short term recruitment focus Productivity initiatives and continuation of multi-channel priorities in Enterprise Preparation for England water market opening Ongoing Integration of t-mac Further development of energy services offering (incl. t-mac) Exciting IoT technology strategy to enhance t-mac platform 26

27 Appendix

28 Income statement (DETAILED) 000 Utilitywise 6 months ended Jan 2016 Utilitywise 6 months ended Jan 2015 (restated) Revenue 41,565 30,557 Gross profit 16,565 14,144 Other operating income Admin Expenses (8,776) (7,192) Exceptionals 4, Profit from Operations 12,066 7,272 Add back Depreciation Amortisation Share Expenses Exceptionals (4,055) (194) Adjusted EBITDA 9,675 8,365 Less Interest (158) (211) Less Depreciation (393) (381) Less Amortisation (11) (10) Adjusted PBT 9,113 7,763 28

29 The Utility Management Plan 1. The right tariff 6. On-site Audit 2. Account Management 7. Controls 3. Utility Health Check 8. Staff Awareness 4. AMR meter 9. Carbon Management 5. T-mac dashboard 10. Contract Renewal 29

30 The regulatory landscape opportunity Driving customer behaviour Driving TPI behaviour Compliance Energy Saving Opportunity Scheme (ESOS) Billing Half-hourly settlement for 160,000 sites and100,000 businesses (P272) Reform Electricity Market reform (EMR) Rising noncommodity costs Structural Significant Code Review (SCR) Regulation Ofgem code of conduct proposes to license suppliers to work only with compliant TPIS Structural CMA report reviews pricing and vertical integration Aims to encourage a greater number of microbusinesses to benefit from switching to more competitively priced deals 30

31 Regulatory update CMA Energy Market Investigation (provisional decision March 2016) Recognises role of TPIs in driving market engagement Suppliers to disclose customers Out of Contract +3 years Concerns around suppliers price transparency on micro business tariffs Suppliers to publish prices for micro business and build online pricing engines Proposes TPIs gain increased access to customer data through: Electricity Central Online Enquiry Service (ECOES) Single Centralised On-line Gas Enquiry Service (SCOGES) Recognises that complaints against TPIs result in reduced level of trust The CMA have not made a recommendation for TPI s to disclose Response to CMA report by Ofgem expected after CMA final report in June Any customer who wishes to find the cheapest tariff on the market will in practice need to use a TPI CMA Energy Market Investigation summary report March