Trading Update & Directorate Change
June 24 2010 - 2:00AM
UK Regulatory
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
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