LONDON, UK: Telecom Plus Plc has agreed the disposals of two non-core companies comprising its wholly owned meter operator, UW Home Services Ltd (UWHS), and its 75% owned boiler set up business, comprising Glow Green Ltd and Cofield Ltd.
Neither disposal is anticipated to have a significant impact on Group profits in FY22 or on an ongoing basis.
UWHS
UWHS has been sold to Lowri Beck Holdings Limited (“Lowri Beck”), a specialist meter operator owned by the Calisen Group. UWHS was initially arrange by the Group to extend the tempo of its smart meter rollout and allow it to meet the difficult rollout targets set by Ofgem. Since beginning operations in 2018, it has efficiently put in over 400,000 meters, resulting in the second highest smart meter penetration rate inside the industry.
Following this transaction, UWHS will proceed to present the Group with meter operator services, while benefitting from higher utilisation ranges and elevated effectivity from offering similar services to different energy suppliers as a half of the Calisen Group.
Section 10.4.1 of the Listing Rules requires the disclosure of the next information in relation to this transaction: (i) the consideration for the sale of UWHS was £1 in cash, (ii) the worth of its gross assets inside the final audited accounts of UWHS was £7.6m (net liabilities of £5.3m), and (iii) it made a pre-tax lack of £3.0m inside the year to 31 March 2021.
Glow Green
The Group has additionally agreed to sell, topic to the necessary FCA change of administration approval, its 75% shareholding in Glow Green for money consideration of £1 to Charles Wigoder, Executive Chairman of the Group. As beforehand announced, Mr Wigoder (whilst remaining as Chairman) is moving to a non-executive role inside the Group with impact from the AGM in July.
Since buying Glow Green in 2018, the enterprise has been consistently loss-making; this has contributed to a cumulative funding requirement of over £6m that will stay with Glow Green as a debt to the Group and be repaid over time.
The Board believe that the disposal of Glow Green is inside the best pursuits of the Group given the numerous administration useful resource it would in any other case require, particularly at a time when the expansion alternatives inside the core enterprise are so exciting.
Telecom Plus, which owns and operates the Utility Warehouse brand, is the UK’s solely fully built-in supplier of a variety of competitively priced utility services spanning the Communications, Energy and Insurance markets.
www.telecomplus.co.uk