Interim Management Statement

RNS Number : 5998C

Spice PLC

03 September 2008

 

3 September 2008

Spice plc ("Spice" or "the Group")

Interim Management Statement

The Board of Spice plc, the provider of Total Utility Support Services, is pleased to release its Interim Management Statement for the period from 1 April 2008. Separately, Spice has today announced a conditional placing with institutional investors of £50 million. Spice is also today holding its Annual General Meeting at 14:00 at Yorkshire Sculpture Park, Bretton Hall, West Bretton, Wakefield WF4 4LG. 

Spice has started the new financial year well, building upon the record results reported for the year ended April 2008, and the Group's trading for the period to 31 July 2008 was in line with the Board's expectations. Trading conditions within our electricity and energy markets remain particularly favourable where we have continued to make good progress. 

Our Distribution Division (comprising our Electricity, Gas, Facilities, Telecoms and Water businesses) has secured contracts with Scottish Power, where we are upgrading perimeter security surrounding critical infrastructure, and with One Vision Housing, where we are providing gas maintenance and compliance services. The Group is particularly pleased to have secured its first specialist facilities management and maintenance contract with EDF Energy for their operational property. Through utilising the skills of our Facilities business, the Group also hopes to widen its market to encompass other utilities. 

In July, we acquired British Power International which significantly enhances our capability to offer higher value consultancy services through adding highly skilled and scarce resource to the Group. Since acquisition, BPI has secured various small project wins. We believe that BPI will deliver a number of cross selling opportunities for our Electricity, Energy and Billing businesses. 

During the period, our Supply Division (which comprises our Energy and Billing businesses) has disposed of its fuel card business which will give rise to a profit on disposal of £0.3 million. The fuel card business was non-core to our energy procurement and consultancy activities and will allow us to focus better on our core areas of expertise. Our energy business is now recognised as the largest third party energy intermediary in the UK by Datamonitor. The integration of Energy 2000 has progressed well. Our Billing business has successfully secured a pilot contract with EON to provide electricity imbalance services. 

Within the current economic environment, efficiency is becoming a key driver for our commercial clients. We believe that the Group is well placed to innovate in order to maintain and to win market share in this tougher environment. The economic environment is also giving rise to a number of attractive acquisition opportunities, in particular within our electricity and energy markets, which we are seeking to develop and exploit. 

At the end of July 2008, the Group successfully concluded its move up from AIM to the Official List.

The Board believes that the opportunities created by the current economic climate combined with regulatory drivers means Spice is well positioned and that the markets in which we operate continue to offer further growth opportunities. The Group is confident of delivering half year results in December in line with the Board's expectations. Spice continues to look to the future with confidence. 

A telephone conference call for analysts has been scheduled for 08:15 today on 3 September 2008. Dial in details may obtained from Financial Dynamics.

                    Ends

Enquiries:

Spice plc

Simon Rigby, Chief Executive Officer              Tel: [phone]

Oliver Lightowlers, Group Finance Director

Andy Catchpole, Group Strategy and Development Director

Financial Dynamics                             Tel: [phone]

Billy Clegg  

Caroline Stewart

KBC Peel Hunt (Broker)                       Tel: [phone]

Julian Blunt

Daniel Harris

NOTES TO EDITORS

Spice plc

Spice is a total utility infrastructure support services business. The Group's operations were founded in 1996 and have their origins in the electricity industry, though the range of activities has since been expanded into the water sector, niche telecommunications services, statutory gas inspections, energy management and facilities management. Spice's businesses have a common theme of delivering and co-ordinating infrastructure services to customers, and the technological element within the product mix has been built up significantly over the course of the last three years.

 

END

 

 

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