Losses widen at meter group

METER group Bglobal today said it had fallen further into the red after a “difficult” six months but added that a government mandate would spark a bright future for the group.

The Blackburn-based group installs smart meters for energy companies such as npower. In the six months to September 30, losses before tax increased from £1.6m to £2m, while turnover was up to £2.7m from £2.2m last time.

Bglobal said the roll-out of meter installation over the last six months has been slower than anticipated, and increased losses have been a result of administrative overheads as it moved to improve staff capability and investment in infrastructure.

However it added that the government’s recent announcement that it is going to mandate smart meters for large to medium businesses by 2014 and all residential customers by 2020, has created a substantial opportunity for the group which should help it to “consolidate its position as one of the leading players in the UK smart metering market.”

During the period it signed an agreement with npower, whereby it will deliver smart meters and data services to the energy group’s large to medium size customers in a phased roll-out over the next two years. Npower has announced that, initially, this will be for 88,000 of their customers.

Bglobal now has framework contracts with five energy and utility companies which the board estimates together have approximately 60% of the medium to large and SME markets.

Chief executive Peter Kennedy the group’s order book is at its strongest point in its history and he is confident that it can achieve an installation rate of 8,000 per month during the first half of the next financial year.

Chairman James Newman added: “The group’s existing framework contracts with leading energy and utility companies as well its cutting edge technology and expertise in data management already put it ahead of its competitors as the UK market develops.

“Overall, despite the slower than anticipated roll-out during the last six months, the board remains confident that it has the systems, infrastructure, products and services in place to capitalise on the significant market opportunities which will arise over the next few years.”