Spice looks forward to growth

SPICE, the utility support services company, said today trading has been in line with expectations and said it sees significant growth opportunities in utility and energy markets.

The Leeds-based company said the performance of its electric utility business has been strong with strong order flows expected to continue.

The group said that the integration of the billing services unit into the group has gone according to plan with several new client wins.

During the last six months Spice has won several new clients and estimates that its market share has risen from 40% to 89% in gas and from 8% to 35 % in electricity.

This increase will not immediately translate into earnings however the group said it did mean that it “had made significant progress in developing and securing its acquired markets.”

The group said it had maintained momentum within its other divisions with a number of new contract wins including a three-year contract with Three Valleys Water for water meter installation and replacement services; and a project with Siemens for 50,000 gas meter replacements.

Spice has also recently received its largest ever project order for the refurbishment of major electricity substations in London which is worth around £15m.

The group said it expects to see good levels of organic growth from existing operations and a strong conversion of operating profits into cash in the second half of the year.

Simon Rigby, chief executive of Spice, said: “The board believes that Spice is well positioned for growth and that the markets in which we operate continue to offer significant opportunities for further growth going into the new financial year. Spice continues to look to the future with confidence.”