IOMINVESTCOM
19 Apr 2016
Paul Scott's view Share price: 188.4p (up 3.9% today)No. shares: 77.8mMarket cap: £146.6mChange to payment terms - good news - Utilitywise has successfully managed to persuade another energy supplier to pay it more quickly.This has been the company's Achilles Heel in the past - a balance sheet groaning with debtors, and hence question marks over its revenue recognition policy....The supplier has agreed to amend its terms such that any future extension secured to a contract that has not expired receives the same cash payment terms as for a new contract, in this case 80% of the expected revenue from the contract falling due on the extension signing and the remainder at maturity subject to the normal reconciliation process. We have also agreed that this change of terms will apply to historic accrued revenue balances and we will therefore receive £2.251 million (inc VAT) in cash from the supplier prior to the Company's financial year end on 31 July 2016.My opinion - this is clearly a step in the right direction, although I would like to see the next set of numbers before considering putting this back on my list of investable shares.Interim results - for the 6 months to 31 Jan 2016. The P&L figures look good, e.g. adj. diluted EPS is up 21% to 9.8p for the half year.Net debt has risen to £10.2m.Balance sheet - still looks mighty peculiar to me. There is a long term debtors figure of £25.7m. This hasn't fallen, it's actually still rising. I'm not comfortable with that.My opinion - I have 2 worries with this company - firstly its revenue recognition policy, and associated extended debtors.Secondly, I'm not convinced that profits are sustainable. After all, it's a rather unnecessary intermediary. What if the energy companies decide they don't want to keep giving away some of their profit margin to intermediaries such as Utilitywise? The business could be wiped out overnight. However unlikely that might seem, it's possible, and that puts me off this share.[link] See more at: [link]
II Editor
19 Apr 2016
NEW ARTICLE: Utilitywise rallies as founder steps down "Another boss is off: this time it's the turn of LSE:UTW:Utilitywise's Geoff Thompson. Having grown the utilities broker from a small bedroom outfit into a £150 million company, he's moving upstairs to the chairman's role. Of course, the process ..."[link]
claude reins
12 Apr 2016
Re: Utilitywise signs partnership deal w... Join the club! Had an immediate effect on price, but volume low and price currently negative versus yesterday. Bit of a damp squib.
winningstreak
12 Apr 2016
Re: Utilitywise signs partnership deal with ... I for one do not understand this T-Mac business at all, it is away above mytechnology-comprehension.ws
IOMINVESTCOM
12 Apr 2016
Utilitywise signs partnership deal with Dell Energy and water consultancy Utilitywise (UTW) has partnered with technology provider Dell in an ‘internet of things’ project.Liberum analyst Andrew Bryant retained his “buy” recommendation and target price of 270p on the shares, which rose 6.2% to 171p yesterday.‘Utilitywise has announced that it has been named as original equipment manufacturer partner by Dell as part of a joint strategy to introduce internet of things building automation solutions to customers,’ he said.‘This agreement highlights the value and opportunity in the T-Mac acquisition and further supports the increasingly positive mix shift in group earnings.’Bryant added: ‘The partnership highlights that management has built a leading market position with a business model positioned for further significant growth and improving quality of earnings. The challenge alongside the top line execution and cash conversion is to transition the model from largely out-bound led to a multi-channel value-added service, maintenance and repairs service and the partnership with Dell adds to that strategy.’[link]
mcescher
22 Mar 2016
Re: Encouraging fundamentals Agreed! The forecasts appear to be from the average of 5 analysts so hopefully not all of them have ulterior motives.
claude reins
14 Mar 2016
Re: Encouraging fundamentals Interesting report. Hope pretty good forecast reliability rather than just pretty graphics!
mcescher
14 Mar 2016
Encouraging fundamentals Quite like what I see on this report: [link] thoughts from the crowd whilst I do more DD?
IOMINVESTCOM
18 Feb 2016
Predicted to rerate over next 18 months There are short-term concerns around energy and water consultancy Utilitywise (UTW) but it is still expected to rerate over the next 18 months.Liberum analyst Andrew Bryant retained his ‘buy’ recommendation and target price of 270p on the shares, which rose 1.3% to 174.3p yesterday.‘Utilitywise has released a trading statement…which confirms that the company has performed in line with management expectations during H1,’ he said.‘The two key features are an increase in the “go live” rate from the order pipeline and a faster rate of growth in new business compared to extensions. The valuation reflects concerns around profit and loss provisioning, cash collection and lower energy prices. However, delivery of forecasts and higher cash flow backing of earnings per share over the next 18 months should drive a rerating of the shares back to 200p+.’[link]
winningstreak
28 Jan 2016
INSE I have owned shares in UTW, did sell out to buy INSE, no regrets!ws
smudgedan
22 Dec 2015
Apc Technology (APC) Christmas cracker of mega deal, Possible £20m Bid From Utilitywise [link] .
IOMINVESTCOM
17 Dec 2015
Re: Paul Scott's view Hi Casabanker,I do value his views as added opinion even if it is opposite to mine which makes me re-think!!Still holding after 2 or 3 purchases with the last one at 1.65 so intend to also remain holding although I will reduce underwater position when possible.GLTA
casabanker
17 Dec 2015
Re: Paul Scott's view Hello IOM,I have read Paul Scott's views on UTW and clearly he is not a lover. I respect his opinions and read them on a daily basis. He will be the first to admit that he doesn't get it right on every occasion. I am hoping he is wrong on this occasion too. I, too, am not keen on aggresive accounting but the management seem to be tackling this issue which will address the cash flow shortage. I think there is upside in this share so I am sticking with it for now.Casa.
IOMINVESTCOM
15 Dec 2015
Paul Scott's view [link]
valuemanbuyer
15 Dec 2015
Re: AGM Answers CasaI assume you mean the utility companies.i can't say on a forum why the suppliers are relying on UTW but they do. They run rings around supplier customer acquisition. I came away feeling that that they are adding value by helping companies become more efficient and alerting them to savings in price initially and then usage control . A lot of effort is going into differentiation and becoming the go to advisor.The market is massive and in the sme sector UTW is number 1 so it's a case of taking market share and keeping them with added value services. As the cash flow improves through 2016 and the supply contracts are improved , with the sales growing at 20% + the shares should re-rate to a more sensible rating of 12-15x imho .
