2016 summary

Group profit up 9% to £93.0m with an 11% increase in customer numbers to 7.0m

UK – Customer numbers increase 3% from 2.1m to 2.2m with profits also increasing 3% to £58.0m

  • Acquisition of a heating services business brings gas capability and 0.1m customers
  • Good marketing performance delivering 0.4m gross new customers (FY15: 0.3m)
  • Retention rate of 82% reflecting increased number of first year renewals (FY15: 83%)

USA – Profits up 89% to £12.1m combined with 17% customer growth to 2.3m

  • Continued strong marketing performance adding 0.7m gross new customers (FY15: 0.7m)
  • Customer loyalty remains strong with 82% retention rate (FY15: 82%)
  • Strong partner pipeline, with 2.8m households added in the year, up to 32m households (FY15: 29m)
  • Agreement to acquire Utility Service Partners Inc. (USP) for $75m, adding a further 9.4m partner households and 0.4m customers, expected to complete in the first half of FY17

France – Customer numbers up 7% to 1.0m with stable profits of £23.2m

  • Renewed sales momentum adding 0.2m gross new customers (FY15: 0.1m)
  • High retention rates continue at 89% (FY15: 89%)

Spain – Customer numbers up 11% to 1.2m with profits increasing from £7.5m to £9.9m

  • Retention rate of 77%, reflecting the increased number of first year renewals (FY15: 79%)

New Markets – Investment of £5.9m in Italy and digital innovation

  • Digital hub established to enhance self-serve customer experience and drive business efficiencies
  • Started to make progress on international development

Group – Strong earnings growth, increasing dividend growth, high cash generation and a strong balance sheet

  • Adjusted earnings per share up 15% to 21.8p with proposed 10% increase in dividend payment to 12.7p per share
  • Year end net debt of £169.5m, 1.4x adjusted EBITDA, reflecting payment of £99.4m special dividend in July 2015 (FY15: £64.1m; 0.6x adjusted EBITDA)