Spice Swings To 1st Half Loss On Social Housing Gas Unit Charge

Utility support services group Spice PLC (SPI.LN) Monday swung to a first-half pretax loss because of a charge related to its social-housing focused gas business, but it raised its dividend as its supply and utilities distribution business performed strongly.

For the six months to Oct. 31 Spice, which offers services such as energy consultancy and bill collection, posted a pretax loss of GBP31.5 million compared with a pretax profit of GBP9.4 million in the same period a year earlier, reflecting a GBP42.9 million non-cash charge at its social-housing focused gas business.

Spice said market conditions have been tough in its social housing-focused gas business, which has been loss making in the first half.

Not including the non-cash charge, the company posted a pretax profit of GBP16 million compared with GBP14 million.

Revenue totaled GBP193.4 million compared with GBP192.6 million.

The company increased its interim dividend to 0.4 pence a share from 0.36 pence, saying its other businesses were supported by regulatory and environmental drivers.

However the company said its supply division and its utilities distribution business have both performed strongly, with earnings before interest, taxes and amortization rising 25%.

The divisions have recently received contracts with ScottishPower PLC (SPI) and United Utilities Group PLC (UU.LN), which Spice said would likely increase start up costs in the second half.

Company Web site: www.spiceplc.com

-By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; rachael.gormley@dowjones.com

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