Our integrated service business model for long-term value
Our meter assets generate highly sustainable, annuity-style cash flows and provide a secure foundation for the future growth of the business. Approximately 30% of all meters covered by the UK smart meter rollout, including domestic and non-domestic, were operating as smart at 31 December 2019, with c.70% still to be exchanged.
We are focused on employee retention, training and development, productivity and, above all, an unwavering commitment to health and safety. We have a nationwide in-house engineering and expert consultancy workforce, with a strong track record of service delivery, which allows us to make smart decisions about all aspects of our customers’ projects.
We have significant IT software and data security capabilities and capacity and the ability to develop new applications and technologies to the ongoing benefit of our customers. Delivery of our integrated services is supported by our own central cloud-based IT and data platform.
With more than two decades of operations, we enjoy multi-level relationships with energy suppliers, developers and enterprises within the UK industrial and commercial sector. The enduring partnerships we maintain with our customers are testament to our unrivalled support, extensive industry knowledge and commitment to providing successful, innovative and forward-thinking energy solutions.
We continually review our funding position to ensure that we maintain an efficient capital structure, with sufficient capacity and flexibility to maximise growth. Our primary source of debt has been Group-level funding secured on our revenue-generating assets; however, following the contingent disposal of a minority of our meter assets in early 2020, the business has reset its leverage, resulting in a net cash positive position. The Group plans to maintain prudent leverage going forward, using internal cash generation and a revised debt facility to fund our secure order book, with additional mechanisms in place to enable new CaRe asset classes to be independently funded.
Investing in meter and energy infrastructure assets and providing remote reading solutions and other data services, focusing on increasing growth rate of meter assets portfolio and driving recurring revenue.
Direct field force management and asset installation, targeting the domestic smart meter opportunity. Design, installation and management of utility connections and energy infrastructure.
Providing energy-efficient strategies with key focus on cross-selling and establishing additional energy-efficient products and services.
Our business creates value:
15% increase in dividend per share to 6.88p
We have historically aimed to provide a progressive dividend that shares the rewards of our profitability and growth with shareholders and provides a sustainable return. Following the conditional sale of a minority of our assets in early 2020 we have reset our balance sheet and intend to pay a notably increased dividend from 2020 onwards, supported by asset-backed recurring revenue.
We provide an end-to-end service in all aspects of utility infrastructure, smart metering and energy management. This breadth of service makes us unique in our industry, with our expertise allowing our customers to have confidence that we will deliver an appropriate solution.
Putting our people first
A motivated workforce encourages creativity and productivity and is critical to the execution of our strategy. We place great importance in creating a positive working environment for all our people, providing interesting and challenging career opportunities that offer staff the chance to develop.
We work with a wide range of partners over the long term including suppliers, lenders, government and regulatory bodies. These relationships are crucial in delivering our business model and strategy and maintaining positive and open engagement is a key priority
73% renewable electricity purchased in 2019
As a major energy services and smart metering company, sustainability is at the core of our business. Through training and development, the sustainability culture of the business is instilled in all staff from the moment they join the Company.