Utility not so wise

Friday, Apr 20 2018 by

I find myself continually drawn back to (lose more money with) Utilitywise (LON:UTW) but not today having read this, from transcript of analyst meeting, 22nd March 2018.

Unidentified analyst:
Can you be a bit clearer on what expectations you're in line with to be clear?


Richard Stephen Laker, Utilitywise Plc - CFO, Company Secretary & Executive Director [24]

Yes. So the expectations that we're talking about are -- and this is a good point you raised, Ben. There's a slight subtlety to this, and it's a slightly oblique one. And it's a -- the -- it actually talks about trading line with bold expectation rather than the market expectation. And actually, it come back to Brendan's point, which is actually covered in that complementary's sort of or supplementary Q&A R&S, which I don't know if you've seen that as well this morning. But there's a section there which actually asks the question how is management going to run the business almost day-to-day with this new accounting policy, we make the point which is actually interim -- effectively our management accounts on a 20% constant leakage basis. A, because hopefully, the data we've shown you in the sort of strategic report in these slides kind of supports the 20% is reasonable. Accepting that under the format is the big contracts leak by more. And the secondly, is the point that we know, we see that as being broadly analogous to cash flow. And therefore, effectively, our internal expectation only have 20% constant consumption basis. I accept this is a slightly irregular position and that we all understand that broadly a company's expectation should be materially the same as the markets expectation. Otherwise, we'd be under a reporting obligation to say something to the markets. And so there is a kind of close correlation between them. But we're broadly saying effectively on a 20% constant consumption basis that we traded in the first half in line with our expectations. I'm not sure how useful that is to an equity analyst like yourself, but that is just sort of truth of the matter.

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Utilitywise plc is a United Kingdom-based business energy and water consultancy. The principal activity of the Company is of an intermediary for energy supplies to the commercial market. Its operating segments include Enterprise and Corporate. The Enterprise segment is engaged in energy procurement by negotiating rates with energy suppliers for small and medium-sized business customers throughout the United Kingdom, the Republic of Ireland and certain European markets. The Corporate segment is engaged in energy procurement of larger industrial and commercial customers, often providing an account care service and offering a range of utility management products and services designed to help customers manage their energy consumption. It provides energy management services, including procurement, energy reduction and audit, carbon offsetting, smart metering, water brokerage, design, manufacture and supply of timers, controllers and building management systems, and the Internet of Things. more »

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7 Posts on this Thread show/hide all

sharmvr 20th Apr '18 1 of 7

What now? Perhaps Neil will be able to explain since there is no concern around third accounting!

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mrosbiston 20th Apr '18 2 of 7

say enough words until the analyst shoots himself? if i could short any more than i already am, i would

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shipoffrogs 20th Apr '18 3 of 7


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AnonymousUser252054 10th May '18 4 of 7

Utilitywise (LON:UTW) is described as a 'sucker stock' by Stockopedia algorithms, and has been annihilated on a regular basis by resident analysts Paul and Graham, and to add to that I think Ben suggested it's  showing as highly likely to fail in the next two years.

OK, so I forgot all about that, and the hideous FD expectations nonsense above and opened a small spread bet this morning, and no, not a short.  I've lost plenty here before, now I'm back for more.

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ianahughes 12th Nov '18 5 of 7

the cash flow profile says it all

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oscar247 12th Nov '18 6 of 7

Its a dog! Non investable - how on earth did Neil Woodford ever get suckered into backing this?

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AnonymousUser252054 13th Feb 7 of 7

Paul in particular, but also Graham and a few others on Stocko, have been scathing for quite some time about Utilitywise (LON:UTW), and predicted the worst. They have been proved entirely correct with this evening's RNS.

Sympathy to holders as Utilitywise (LON:UTW) announce the intention to appoint adminstrators

Unfortunately, discussions with respect to the sale of the Group and in relation to an equity fundraising and bank refinancing have not been successful. As a consequence of the above, the Formal Sale Process, so far as it relates to a possible sale of the share capital of the Company, has been terminated. 

Furthermore, since the announcement of the Strategic Review, the cashflows of the business have deteriorated and, therefore, regrettably the business does not have sufficient funding to meet its liabilities as they fall due. 

Consequently the Board has taken the decision that it will take the necessary steps to appoint Andrew Johnson and Chad Griffin of FTI Consulting LLP as administrators of Utilitywise plc.

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