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Energis Reports FY05

Energis reports £1.3B of contract signings for fiscal 2005; revenue falls from £745M to £720M

June 13, 2005

3 Min Read

LONDON -- Energis today announced that it has been awarded £1.3 billion worth of contracts in the last financial year.

As the only major telecoms company focused exclusively on the largest organisations in the UK and Ireland, Energis’ success is driven by its absolute focus on delivering superior levels of service and sourcing and building individual solutions for customers.

Major contracts include:

  • BBC with Siemens Business Services

  • Caudwell Communications

  • Northrop Grumman



The last year has seen Energis successfully managing the decline of its narrowband ISP business by replacing it with lucrative, long term business from the high end corporate market:

  • £1.3 billion of contract signings to the year end 2005 – with over £930 million of new wins

  • consistent 9% per annum revenue growth from non-ISP business

  • average annual value of corporate contracts rising from £1.6 million to £2.5 million over the last two years

  • value of top 30 contracts increasing by over 20% to nearly £200 million per year

  • 40% of new contracts over 5 years in duration

  • nearly two thirds of capital expenditure over the last 12 months was channelled towards delivering individual solutions for new customers



John Pluthero, chief executive of Energis, commented: “Our transformation continues apace and our contract signings in 2005 of £1.3 billion clearly establish us as the leading altnet in the corporate market.

“This was our most successful year ever for contract wins; a sign that our approach to service is valued by customers.”

2005 results:Table 1: Profit and Loss

�million

2004

2005

Revenue

745

720

EBITDA* before exceptional items

125

116

* FY04 EBIT of �10m pre-exceptional items



Table 2: Cash Flow

�million

2004

2005

Capital expenditure

(67)

(94)

Free cash flow

66

23

Cash balance

171

154

* EBITDA � Earnings Before Interest, Tax, Depreciation and Amortisation



Notes on 2005 results:

  • Results for year ended 31 March.

  • The 3% revenue decline reflects the impact of the decreasing narrowband internet business and masks a consistent 9% year on year growth in core activities.

  • EBITDA before exceptional items was strong at £116 million despite the impact of the decline in the narrowband internet business. 2004 EBITDA included £9.5 million of retrospective benefit resulting from the Regulator's decision to reduce BT's Intelligent Network charges.

  • Capital expenditure in 2005 was £94 million compared to £67 million in 2004, an increase of 40%. This investment has delivered tailored solutions for customers, improvements in delivery processes and customer-facing systems as well as ongoing upgrades to the core network.

  • Free cash flow for the year to March 2005 was £23 million compared to £66 million for the year to March 2004 and mainly reflects increased capital expenditure.

  • The year end cash balance of £154 million represents a net cash generative position since Energis’ renewal in 2002 and provides significant headroom for investment over the following year.



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