Financial Highlights:
Results and dividend in line with expectations
Revenue up 2.1% to £744.7m
Adjusted profit before tax up 4.2% to £54.4m
Statutory profit before tax down 3.3% to £40.7m
Adjusted EPS up 7% to 56.7p
Strong cash generation
Full year dividend up 15% to 46p per share
Operating Highlights:
Further organic growth in both Members and services
Almost 600,000 Members
Service numbers up by 4.2% to 2.18 million
Successful launch of innovative nationwide light bulb replacement service
Shortlisted by Which? for 'Best Telecom Services Company' in 2016 Annual Awards
Ranked #2 in The UK 2016 Customer Satisfaction Index
Andrew Lindsay, CEO, commented:
"I am very pleased with the further solid progress we have made this year, despite a challenging competitive environment for supplying domestic energy; it demonstrates both the resilience of our business model and the strength of our unique route to market.
"Whilst many other independent energy suppliers appear to be pursuing growth at any cost, our focus is very clearly on growing our profits in a sustainable way, with a view to maximising shareholder value.
"We have seen a material improvement in the quality of new Members joining our Discount Club following the launch of our free LED replacement light bulb service in the autumn. This benefit significantly reduces their electricity bills forever and is of substantially greater value than the short term introductory discounts offered by our competitors. We look forward to helping tens of thousands more homes throughout the UK to reduce their electricity consumption by taking advantage of this unique benefit.
"We were delighted to be ranked second in The UK 2016 Customer Satisfaction Index. Our position was in stark contrast to other utility and telecoms providers, none of whom made it into the top 30, and is a huge endorsement of our commitment to treating our Members fairly.
"The current adverse market conditions will not persist indefinitely, and we are confident that when the recent downward trend in wholesale commodity prices reverses, our growth rate will start returning towards the higher levels we have historically achieved. In the meantime we expect to continue to deliver further modest growth in revenues, profits, earnings per share and dividends for the current year, with adjusted pre-tax profits of between £55m and £59m."
