EAGA Eaga

 

TIDMEAGA 
 
RNS Number : 1549O 
Eaga plc 
24 June 2010 
 

24 June 2010 
 
                      Trading Update & Directorate Change 
 
Eaga plc, a "Green" Support Services Company which provides a range of 
outsourced services and residential energy efficiency solutions across the UK 
and Ireland, today issues a trading update ahead of its preliminary results 
announcement for the year to 31 May 2010. 
 
The Group is pleased to announce that trading for the year is in line with the 
guidance given in our Interim Management Statement on 15 April 2010. 
Demand under the programmes in our Managed Services segment remains high, 
particularly for the assistance offered by the fuel poverty schemes we deliver. 
Revenues for the year within this segment are likely to be marginally below our 
expectations due to the impact of the slower delivery of sub-contractor 
services. This lower level of sub-contracted pass-through activity is not 
expected to reduce segmental profitability. Performance across both our Heating 
and Renewables and Carbon Services segments was in line with our expectations. 
The Group's performance during the year has been pleasing and progress has been 
made across a number of wider market developments. 
 
We have continued to work hard to develop opportunities in the Community Energy 
Savings Programme ('CESP') market and, following the Drax contract that was 
announced in January, we are pleased to announce today that we have secured 
contracts with three UK power generators for the delivery of their CESP 
commitments.  This brings the total estimated value of CESP contracts secured 
since the beginning of the current calendar year, and to be delivered during the 
period to the end of 2012, to cGBP50m.  Discussions with a number of other power 
generators are progressing well and we expect to announce further positive news 
flow over the coming months. 
 
We are continuing to make good progress with our social housing targeted solar 
photovoltaic (solar PV) project. Pilot installations are continuing to perform 
well, and we now have access to survey over 250,000 potential homes. Since our 
investor and analyst briefing on this opportunity held on 13 May, Ofgem has 
published its final guidance on the Feed In Tariff ('FiT') regime. This was a 
positive step in allowing us to finalise the commercial structures around the 
practical administration of the FiT regime and has enabled us to further 
progress contractual negotiations with a number of residential social landlords. 
 
Government's ongoing public spending review has resulted in a slowdown of 
procurement decisions which will push-out the timing of some current BPO 
contract awards.  Beyond the near term we believe that there will be an 
increasing number of outsource contract opportunities for the Group as 
Government continues to seek efficiency and cost savings in public spending. 
 
Today the Company also announces that Ian McLeod will step down as Chief 
Financial Officer at the Group's Annual General Meeting in October and will be 
succeeded by Giles Sharp.  Ian's decision reflects his desire to take a break 
from corporate life.  We are grateful to Ian for his service and particularly 
his significant contribution to Eaga through its early years as a listed 
company.  Ian has agreed to support the business for a further period of time to 
secure and embed the financial infrastructure for the Group's solar PV project. 
We wish him well for the future. 
 
Giles joined Eaga in 2005 and he is currently Group Finance and Investor 
Relations Director, a role he assumed after successfully leading Eaga's IPO 
implementation programme in 2007.  We are pleased that our succession planning 
and active management development programme enables us to promote a candidate 
with Giles' abilities to the Board.  Neil Spann the current Group Financial 
Controller will succeed Giles as Group Finance and Investor Relations Director. 
 
The Group intends to announce its results for the year to 31 May 2010 on 2 
September 2010. 
 
                                    - ends - 
 
For further information please contact: 
Drew Johnson, Chief Executive Officer 
Ian McLeod, Chief Financial Officer 
Giles Sharp, Group Finance and Investor Relations Director 
0191 245 8501 
 
Hogarth: 
Andrew Jaques 
Chris Matthews 
Ian Payne 
020 7357 9477 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTSESFUDFSSEEM 
 

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