Member Article

Pretax profits jump up at North Tyneside’s Utilitywise amidst new £10m acquisition

Utilitywise, the North Tyneside-based independent utility cost management consultancy, has announced a 49% pretax profit increase to £7.3m, up from £4.9m.

The company also reported that revenue increased by 42% to £29.9m, up from £21m, as it announced its financial results for the six months ended 31 January 2015.

Utilitywise have enjoyed both an expansion in premises and in people, successfully moving to new corporate headquarters and hiring new energy consultants, meaning over 1000 employees now work for the company.

Today, the company announced an acquisition of t-mac Technologies Ltd for an initial consideration of £10m. The acquisition is in line with the company’s stated strategy of broadening its service offering and, in particular, expanding into energy management systems.

t-mac’s modern, cloud-based technology reportedly provides Utilitywise with the assets and skills to offer new value-added subscription services to its customers as part of a complete Utility Management Plan which covers Procurement, Management, Monitoring, and Reduction of electricity, gas and water. The acquisition will allow Utilitywise to protect and deepen its customer relationships whilst providing an opportunity to further upsell to our current customer base.

Geoff Thompson, Chief Executive of Utilitywise, said: “The acquisition of t-mac Technologies will play a major role in helping us to deliver significant added-value services and develop closer, more profitable relationships with existing customers, as well as supporting our new customer acquisition strategy”.

“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.”