Livingston-based gas metering specialist Energy Assets Group revealed an “excellent” quarter of trading growth as revenues leapt by more than half.
The listed firm the largest independent provider in the industrial and commercial (I and C) sector said income in the 13 weeks to the end of June climbed 53% on the same period last year, to £8.4 million, with recurring contracting business climbing 45% and siteworks leaping more than 70%.
Its earnings boost follows the £2.3m acquisition of BGlobal Metering in April, a deal which will allow Energy Assets to hasten its diversification into electricity metering by exploiting BGlobal’s systems, accreditations and expertise.
Energy Assets said the integration of the new unit was progressing well, and would boost its efforts to develop a multi-utility presence in the metering and energy services industry. The deal has helped double the number of owned and managed meters to 323,000 in the quarter, with four-fifths of installations in the period in gas and the remainder for electricity.
The announcement of Q1 results comes just days after Energy Assets tied up a new strategic agreement with the business arm of British Gas (BGB), which will see it install advanced meters for around half the company’s industrial and commercial customers on a 20-year contracted term.
No value for the deal has been released, but the firm said it provided opportunity for “significant future growth to the Energy Assets long-term recurring revenue portfolio”.
CEO Phil Bellamy-Lee said the new financial year had started in a “very encouraging” vein with growth throughout the group. “The group has made two significant steps towards the achievement of our primary objectives,” he said.
“The strategic agreement with BGB provides opportunity for significant future growth to the Energy Assets long-term recurring revenue portfolio and is a significant step in the consolidation of our position as the largest independent metering service provider to the UK I and C gas sector.
“Additionally, the BGlobal Metering Ltd acquisition enables Energy Assets to expand its presence into the electricity sector and is a significant step in the delivery of the group’s strategy to offer services across a multi-utility platform.”
Mr Bellamy-Lee said the “strong, well-funded and growing company” had significant potential from efforts to cut energy usage.
“With our attractive business model, the opportunities arising from Government regulatory requirements and our reputation and relationships across our markets, we are confident of delivering continued future growth,” he said.
The company said it had cash at bank and finance facilities totalling £42.8m at the end of the period.
Shares closed the day up 15p at 445p.