Good morning!

I'm running late today, as had to check out of my hotel in Bournemouth at 10:30, and then remembered that I'd left the car a mile away (due to being over the limit after last night's curry). Anyway, it took a while to get organised, but here we go.

Utilitywise (LON:UTW)

Share price: 193p (down 12% today)
No. shares: 76.6m
Market cap: £147.8m

(EDIT: I opened a small long position in this share, after publishing the article below)

Trading update - the market has interpreted this as a profit warning, as the shares are down 12% today, and have been on a losing streak for a while now (see chart below). It's a rather long-winded update, so I'll work my way through it, and this relates to the year ended 31 Jul 2015.

Turnover is higher than expected;

The Board is pleased to announce that revenue for the period is expected to be slightly ahead of market expectations at approximately £69m, representing growth of c.42 per cent. against the prior year.

Six bullet points are then given explaining why costs have risen, and all seem to relate to increased headcount, for sales & marketing, overseas trials, etc. As a result;

As a result, EBITDA is expected to be slightly below market expectations.

So only a slight miss, which is not the end of the world.

Net debt - is reported at c.£7.5m at 31 Jul 2015, which looks modest compared with the level of profitability and size of the business.

Outlook & Directorspeak - this sounds upbeat, including;

This momentum provides the Board with confidence in its expectations of continued significant revenue growth in the new financial period.

Also, it sounds like the company is gearing up for further growth;

Fuelling and sustaining our growth is key and, as such, we now have significantly more Energy Consultants acquiring new customers than at any time in the Group's history and, importantly, the internal infrastructure sufficiently bolstered to support them. At the same time, we are continuing to build out our multi-channel route to market and drive innovation through the introduction of new products such as controls technology into the smaller and medium size business segments, which we believe is integral to building our reputation as a trusted advisor.

My opinion - I've flirted with this share in the past, but have always felt uneasy when going through their accounts. I'm not keen on their accounting…

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