Financial summary
- Revenue £547m (2012: £535m)
- Adjusted operating profit £108m (2012: £128m):
o UK adjusted operating profit down £25m to £78m
o Established International businesses adjusted operating profit1 up 20% to £34m
- Free cash flow of £69m with net debt of £43m at 31 March 2013 (31 March 2012: £66m)
- Statutory profit before tax of £67m (2012: £138m) includes exceptional expenditure of:
o £4m relating to UK reorganisation costs
o £6m relating to the costs of the Financial Conduct Authority investigation, including a potential fine
o £15m write down of the carrying value of Société Francaise de Garantie
UK business is a more customer focused operation
- 2.3m customers in line with our target
- Retention has been improving in the second half of the year. The full year rate was 79%
- Improved customer satisfaction and service
- Improving sales and marketing effectiveness
- Financial Conduct Authority investigation progressing
International businesses now account for 53% of total customers
- Strong growth with customer numbers up 19% to 2.6m:
o USA customer numbers up 25% to 1.3m
o Spain customer numbers up 50% to 0.4m
- Retention rate remains strong at 83%:
o USA retention has increased from 79% to 80%
o Doméo in France has increased its retention rate from 88% to 89%
- Increasing number of International affinity partners:
o 10 new utility affinity partners in the USA across 10 states
o Long-term affinity partner agreement with Enel Energia enabling us to market to over 3.5m households in Italy
Richard Harpin, Chief Executive, commented:
"We have made very good progress in growing our International businesses over the past year and these now account for over 50% of our customers. We continue to increase the number of International affinity partners with 12 new agreements signed during the past year covering over 5m households.
