Member Article

Utilitywise announces anticipated £4.7 million pipeline revenue decline amidst contract focus switch

North Tyneside based Utilitywise, the energy and water cost management consultancy company, has announced a decline in pipeline revenues following a temporary switch in focus regarding the company’s contracts with existing customers.

Utilitywise revealed that at 31 January 2015 pipeline revenues stood at £23.5 million, down from £28.2 million on 31 July 2014 and £23.8 million on 31 January 2014.

However, the board did confirm that the company has performed in line with management expectations during the period. Moreover, revenue is anticipated to be restored to normal levels over the next 6 months, following the managed switch in focus.

The company reported that as a result of the strong growth in customer base since IPO and following the introduction of new, longer term energy supply contracts by several energy suppliers, an opportunity arose to strengthen customer relationships whilst securing revenue, profit and cash flow over the longer term for itself.

Utilitywise sought to capitalise on the opportunity that this presented and temporarily switched focus onto extending and renewing energy contracts for its existing customers during the period, continuing a trend which commenced in the second half of FY2013/14.

The introduction of the longer term energy supply contracts allowed Utilitywise’s customers to secure further price certainty and take advantage of the recent falls in energy prices.

It is expected that the revenue mix will revert to more normal patterns. The change in revenue mix did not impact cash, revenue or profitability in the first half.

Geoff Thompson, Chief Executive of Utilitywise, said: “During the period we seized a unique opportunity to lock in significant future revenues, profits and cashflows whilst providing our customers with long term price security.

“Going forward, our efforts will revert to focusing on the acquisition of new customers in our highly fragmented target markets. We expect to report a significant increase in both revenue and profits for the full year in line with previous expectations.”

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