8 August 2016 – trading update
The utility cost consultancy has provided a trading update for the year to 31 July stating that it expects to report significant revenue growth foe the year as this rises to at least £82m (2015: £69.1m) with adjusted EBITDA expected to be over £18m (2015: £17.8m). Net debt at the year end had fallen to £0.2m (2015: £6.7m) as improved commercial terms helped cash flow. Although the group has suffered from a number of staff losses during the year, which has had a negative impact on the results, the situation now seems to be improving and the group expects revenues, EBITDA and cash flow to grow in the current year. Given the improving prospects we rate the shares as a BUY.