Strong demand boosts Spice
SUPPORT services group Spice said today that strong demand had seen the business enjoy a record month in September.
The Leeds-based group said that trading for the period ended October 31, 2008 was in line with the expectations as conditions within its electricity and energy markets remain favorable.
Spice said its distribution division has seen strong demand for electricity services and recorded a record month for tenders in September.
Within the supply division, the group said it had seen strong demand for energy procurement services which it expects to be reflected in the performance in the second half of the year.
Spice said it had also seen positive organic growth from billing services in the like- for-like period from acquisition.
During the period, the group renewed and extended a number of contracts with major customers including British Airways, Yorkshire Water and Transport for London .
The group said it had substantially reduced its after borrowings following the conclusion in September of an institutional share placing to raise £50m before expenses.
Chief executive officer Simon Rigby said: “The board is confident that any softness within some areas of the group’s facilities business is being outweighed by the favorable conditions within its energy and utility businesses.
“The board believes that Spice continues to be well positioned within its markets and that these markets continue to offer significant growth opportunities, whilst at the same time having defensive qualities.”
Spice was founded 12 years ago when Mr Rigby and his team bought the facilities business of Yorkshire Electricity for a nominal sum. It then had 12 employees and now has several thousand staff.
