Providing an integrated service, using innovative solutions, to generate 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. 42% of all meters covered by the UK smart meter rollout, including domestic and non-domestic, were smart meters at 31 December 2020, of which 34% were operating in smart mode and 8% were operating in traditional mode. Over 50% of meters are 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. Fostering innovation and creativity in what we do is also critical to allow us to deliver new and exciting solutions.
We have significant IT software and data security capabilities, 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 sectors. 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 disposal of a minority of our meter assets earlier in 2020 the business has reset its leverage, resulting in a net cash-positive position. We plan to maintain prudent but efficient leverage going forward using internal cash generation, our available debt facility and additional mechanisms to fund our secure order pipeline and new carbon reduction (‘CaRe’) asset classes.
Our strategic priorities:
- Building long-term, recurring cash generation from secure infrastructure assets
- Customer excellence and efficient delivery
- Efficient capital allocation to provide headroom for growth
- Sustainable and socially responsible business
Who we deliver for:
As we strive to deliver attractive and sustainable returns to our shareholders, we are also aware of the potential value creation we can offer to our diverse range of stakeholders.
25p dividend for FY 2020, with an intended 10% annual increase until FY 2024
The Group has a growing, sustainable dividend and intends to pay a 25p per share dividend in respect of FY 2020 (representing an increase of 3.6x over FY 2019), to be paid over four instalments. There is intent to increase the dividend by 10% annually through to FY 2024, which will generate a more predictable and attractive return to shareholders.
£103m turnover earned in 2020 from c.1,000 customers
Delivering customer excellence is a core value underpinning our business. Our 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.
£46m of staff costs in 2020
A motivated workforce encourages creativity and productivity and is critical to the execution of our strategy. We place great importance on creating a positive working environment for all our people, and in providing interesting and challenging career opportunities that offer staff the chance to develop.
£300m revolving credit facility
We work with a wide range of partners over the long term including suppliers, lenders, government and regulatory bodies. These relationships are critical in delivering our strategic objectives and business model. Maintaining positive and open engagement is a key priority.
2030 Targeting net-zero carbon by 2030
As a major energy services and smart metering company, we place sustainability 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.