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Utilitywise

July 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • UTW
  • Price:
  • 105p
Utilitywise has acquired Energy Information Centre for £15.5m (£10.5m cash plus £5m in shares). To help fund the cash element it has placed 5m new shares at 100p. EIC offers energy procurement services similar to those of Utilitywise for both electricity and gas but focuses on industrial and commercial customers whereas Utilitywise focuses mainly on SMEs.  The two   are therefore complementary. The deal implies a historical EV/EBITDA exit multiple of 6.7x although EIC has been in decline for a number of years mainly because of a poor sales team which will be revitalised in Utilitywise’s hands.Finncap has increased its forecast for the year to end July to £6.75m (7.6p) with next year seeing a real jump off to  ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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