Half Year Trading Update
December 10 2009 - 2:00AM
UK Regulatory
TIDMEAGA
RNS Number : 8824D
Eaga plc
10 December 2009
10 December 2009
eaga plc ("eaga" or "the Group")
Half year trading update
eaga, a "Green" support services Group and the UK's leading provider of
residential energy efficiency solutions, today announces its half year trading
update in respect of the period 1 June 2009 to 30 November 2009.
The Board is pleased to announce that trading conditions have remained as set
out in the Interim Management Statement released on 14 October 2009. Revenues
across each of the Group's core segments have continued to grow compared to the
same period in the prior year and we expect to record double digit profit growth
in the first half of the financial year, compared to the first half of the
previous financial year.
The Group's balance sheet remains strong, providing a platform to continue the
development of a number of strategic opportunities across each of eaga's core
markets. In particular we continue to make good progress on the opportunities
arising from the proposed introduction of feed-in tariffs ("FITs") for domestic
micro-generation and, following the confirmation contained in the Government's
Pre Budget Report ("PBR") on 9 December that FITs will be introduced from April
2010, expect Government to finalise the regulatory framework early in the new
calendar year.
The Group also welcomes the announcement made within the PBR that an additional
GBP150m will be allocated to the Warm Front scheme during the year from April
2010. This funding will not have a material impact on the financial year to May
2010. The announcement is a clear indication of the Government's ongoing
commitment to meeting key social and environmental challenges.
The Board remains confident of delivery in the Group's core markets and expects
eaga to continue its
progress during the year to 31 May 2010.
The Group will announce its interim results for the half year ended 30 November
2009 on Thursday 28 January 2010.
New segmental reporting structure
The Group has completed an internal reorganisation to align our activities more
closely to the core markets in which we now operate and to improve the focus on
key strategic objectives and market opportunities. Following this change we will
align our external reporting segments to the way in which we now manage the
business.
The change in reporting segments does not have any impact on previously reported
consolidated profits or net assets or earnings per share of the Group.
Within future financial statements the Group will report its segmental financial
information across three primary reporting segments comprising:
* Heating and Renewables Services
* Managed Services
* Carbon Services
Heating and Renewables Services will focus on the opportunities in the domestic
heating and renewables markets. This includes the further development of our
able to pay heating model through strategic partnerships and further penetration
of the growing opportunities in the domestic renewables market.
Managed Services will largely be unchanged from the previous reporting segment
and will focus on the provision of outsourced end to end solutions to local and
central Government as well as other commercial organisations.
Carbon Services will focus on our operations across the developing carbon
economy including all our delivery into the CERT and CESP markets along with the
opportunities which will arise in the international carbon markets.
The key changes to our previously reported segments are:
* The carbon related activities which were previously reported under our
Installation Services Segment including insulation activities and the delivery
of the Scottish Power CERT contract will now be reported under Carbon Services;
* The aftercare and insurance businesses relating to the installation of central
heating systems which was previously reported under our Specialist Support
Services will be reported under the Heating and Renewables segment;
* The external wall insulation and contracting activities which were previously
reported under Installation Services will be reported under Carbon Services.
* Certain activities, including our Customer Contact Centre previously reported
under Installation Services will be reported under Managed Services.
* Our International activities will be reported under the relevant segment to
which the activities relate.
Segmental Information for the previous financial year (31 May 2009) and interim
period (30 November 2008) will be restated. This restatement will be presented
as comparative financial information our interim
announcement for the six
months to 30 November 2009 and full year announcement for the year to 31 May
2010. In advance of publishing our interim report on 28 January 2010 we are
publishing restated summarised segmental information to enable users of our
financial statements to understand the impact of the changes we have made.
In addition the Group has adopted the requirements of IFRS 8 "Operating
segments". The standard required the reporting of segment information in line
with the information reviewed regularly by the "Chief Operating Decision Maker
(CODM)". The group has concluded that the CODM for eaga plc is the main Board of
Directors. The revised reporting segments as set out above are in line with the
format of reporting to the main Board of Directors.
The financial information set out below is unaudited and does not comprise
statutory accounts within the meaning of the Companies Act 2006. The amounts
reported below will be included in the Group's interim report for the six months
to 30 November 2009 and its annual report for the year to 31 May 2010. Full
disclosure of segmental net assets and other required information will be
provided in those reports.
+--------------+--+----------+---------------+-----------+--------------+---------+
| 6 months ended 30 November 2008 (as restated) | | |
+--------------------------------------------------------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | Managed | Heating and | Carbon | Eliminations | Total |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | Services | Renewables | Services | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| Revenue | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| Third Party | 192,674 | 53,604 | 93,112 | 0 | 339,390 |
+-----------------+----------+---------------+-----------+--------------+---------+
| Intersegment | 20 | 45,180 | 12,877 | (58,077) | 0 |
+-----------------+----------+---------------+-----------+--------------+---------+
| Total | | 192,694 | 98,784 | 105,989 | (58,077) | 339,390 |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| EBITA | | 4,170 | 9,175 | 8,075 | 0 | 21,420 |
+--------------+--+----------+---------------+-----------+--------------+---------+
| EBITA % | | 2.2% | 9.3% | 7.6% | | 6.3% |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| 12 months ended 31 May 2009 (as restated) | | | |
+--------------------------------------------+-----------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | Managed | Heating and | Carbon | Eliminations | Total |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | Services | Renewables | Services | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| Revenue | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| Third Party | 439,577 | 108,347 | 190,980 | 0 | 738,904 |
+-----------------+----------+---------------+-----------+--------------+---------+
| Intersegment | 40 | 93,868 | 25,247 | (119,155) | 0 |
+-----------------+----------+---------------+-----------+--------------+---------+
| Total | | 439,617 | 202,215 | 216,227 | (119,155) | 738,904 |
+--------------+--+----------+---------------+-----------+--------------+---------+
| | | | | | | |
+--------------+--+----------+---------------+-----------+--------------+---------+
| EBITA | | 9,694 | 19,824 | 17,689 | 0 | 47,207 |
+--------------+--+----------+---------------+-----------+--------------+---------+
| EBITA % | | 2.2% | 9.8% | 8.2% | | 6.4% |
+--------------+--+----------+---------------+-----------+--------------+---------+
For further information please contact:
eaga plc 0191 245 8501
Drew Johnson Chief Executive Officer
Ian McLeod Group Finance Director
Giles Sharp Director of Investor Relations
Hogarth Partnerships Ltd 0207 357 9477
Chris Matthews
Andrew Jaques
Ian Payne
This information is provided by RNS
The company news service from the London Stock Exchange
END
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