Energy consultancy Utilitywise has announced a major acquisition on the back of a half-year of startling growth.
The North Tyneside company has taken on the entire issued share capital of t-mac Technologies Ltd for an initial consideration of £10m.
The news came as the business released interim results for the six months ended January 31, 2015, which show revenue increased 42% compared to the same period the year before, going from £21m to £29.9m.
EBITDA increased 42%, from £5.4m to £7.7m, while adjusted pre-tax profit rose 49%, from £4.9m to £7.3m.
t-mac Technologies offers cloud-based technology, alongside assets and skills that Utilitywise intends to use to offer new value-added subscription services as part of a complete utility management plan covering procurement, management, monitoring and reduction of electricity, gas and water costs.
The acquisition will mean Utilitywise, which was advised throughout the process by Newcastle’s Square One Law, can offer customers hardware that can both monitor and remotely control electricity consumption through the likes of lighting and air conditioning.
Utilitywise chief executive Geoff Thompson said: “We know that our customers are increasingly looking for rapid impact, cost-effective services that provide them with more control over their electricity, gas and water usage, to help drive their business efficiency agenda as well as mitigate against future price volatility.
“This acquisition continues to expand our broad range of services that address the breadth of our customers’ energy needs.
“The acquisition of t-mac Technologies will play a major role in helping us deliver significant added-value services and develop closer, more profitable relationships with existing customers, as well as supporting our new customer acquisition strategy.”
Established in 2006 with just three staff in Gateshead, Utilitywise currently works with more than 23,100 customers, helping them get better value from their energy contracts, reduce their energy consumption and lower their carbon footprints.
Mr Thompson said a number of factors had contributed to the firm’s half-year growth, from moving its headquarters to Cobalt Business Park to taking on more staff across the board.
During the period total head rose 16% to 884, with energy consultant numbers growing 29% to 449.
Since the period end, numbers have grown further to 1,011 and 549 respectively.
Mr Thompson said: “The group has continued to make progress with impressive growth in both revenue and EBITDA.
“During the period, we both extended contracts for existing customers and continued to secure new customers, providing further validation of the strength of our proposition and the important differentiation we have achieved through the on-going development of our energy management products and services.
“The move to our new head office was completed on schedule and on budget in November 2014, enabling us to accelerate the recruitment of additional staff in order to drive future growth and the progress with this is in line with our plans.
“New customer acquisition remains an important priority and, in line with this, we are pleased to report that March 2015 represented the highest monthly customer acquisition performance for the group in its history.
“A significant market opportunity exists for continued profitable growth and we look forward to a second half of continued positive momentum.”
An interim divided rise of 55% to 1.7p is proposed.