Bglobal plc (AIM:BGBL), the leading UK smart metering and energy data company, announces an update
on trading and recent contract wins underpinning the future prospects for the year to 31 March 2011.
British Gas Business
Bglobal is pleased to announce that it has signed a new agreement to supply and install smart meters for
British Gas Business during 2010. This contract value is anticipated at more than £12 million. In addition,
the Company will provide new data services, delivering recurring revenues of more than £1 million per
annum.
Bglobal has supplied British Gas Business with smart metering services under a preferred supplier
framework contract since July 2006. The new agreement is a variation to this framework which will
guarantee delivery of a fixed programme of meter installations by the end of the current calendar year.
British Gas Business is the market leader in providing energy services to UK businesses, including
advanced and smart meters. The provision of smart metering and energy solutions is a key focus for
British Gas Business, as it helps its business customers manage their energy usage and meet regulatory
requirements such as the Carbon Reduction Commitment Energy Efficiency Scheme.
Dual Energy
Bglobal is also pleased to announce that it has signed an agreement to deliver end-to-end smart metering
services to new electricity market entrant Dual Energy Direct Limited (“Dual”).
Bglobal will supply, install and service its latest generation of smart electricity meters to Dual’s business
customers in the UK from April 2010 onwards in support of ambitions growth plans. Bglobal will also
supply data collection and analysis services and its web-based energy management software platform.
Dual is the second new electricity market entrant that Bglobal has won in recent months following
Gazprom Marketing and Trading Ltd with whom the Company has been working since September 2009.
G4S Utility Services
To support Bglobal’s increased installation and field service requirement, the Company has sought to
develop relationships with established national providers of field services. The Company has now
established relationships with five such providers, all of whom are installing for the Company alongside
Bglobal’s own national field force. Since October 2009 the Company has been working on a trial basis
with G4S Utilitiy Services, one of the UK’s largest national providers of metering and field services and
part of G4S plc (LON:GFS). We are pleased to announce that this trial has been successful and that
Bglobal is to extend this working relationship by significantly increasing the volume and type of field
services performed by G4S Utility Services in parts of the UK on the Company’s behalf.
Recent Trading
During the third quarter of the year Bglobal installed nearly 10,500 meters and recently installed its
80,000th meter in the large and medium business market.
The freezing weather conditions experienced in December and January throughout the UK affected our
programme of installations with many schools, local authorities, public sector premises and business
premises closed and hazardous driving conditions on roads making sites inaccessible. The Company’s
completion rate on booked meter exchange appointments therefore fell from our targets.
Despite the recent disruptions, the Company continues to trade broadly in line with current market
revenue expectations for the year to 31 March 2010. However, a combination of the adverse weather
conditions, the demand from customers for a new type of meter which led to the need to make larger and
more frequent shipments of meters by air to the UK and the investment by the Group in additional field
service capability ahead of the British Gas Business order has affected the gross margin. Profit for the
period will therefore be lower than current market expectations.
Tony Barnes, Chief Executive of Bglobal, said: “We have seen a rapid bounce back in the daily
installation rate following the disruption brought to our installation operations by the big freeze in December and early January.
“Looking forward, our new contracts and the move to a fixed programme of meter installations in the year
ahead with British Gas Business underpins our forward order book for the year to 31 March 2011, which
is currently more than 75 per cent covered. The contract also signals British Gas Business’ clear intent to
bring on the smart energy revolution and accelerate the benefits of smart metering for UK businesses.
“Until now we have been asked to deliver on broad framework agreements where exact monthly
customer requirements have sometimes been difficult to forecast. By signing a fixed delivery agreement
under our long-term framework we can set better expectations with our customer and plan ahead with
more certainty.”
Jeff Whittingham, Head of Energy Services at British Gas Business, said: “With over 50,000 smart
meters already in use, British Gas Business is the largest provider of smart meters to UK businesses.
Our customers have told us they’re finding smart meters easy to use, and that they’re helping them be
more aware of how they use energy, and how they can save it. Today’s contract announcement is an
important element of our smart meter rollout plan, which is to have an additional 100,000 smart meters in
operation by the end of 2010.”