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January 28, 2010 6:29 pm
A focus on markets relatively insulated from the recession has helped Eaga grow revenues in the six months to November 30.
However, pre-tax profits at the UK’s largest residential energy efficiency provider fell from £17.4m to £15.7m.
Buoyed by the knowledge that energy efficiency and carbon reduction will remain a legislative priority – whatever the outcome of the UK’s impending general election – Eaga said that its outlook remains strong.
The company, which has a £1.4bn pipeline of secured orders and a bid pipeline of more than £2bn, said it would increase its interim dividend by 10 per cent to 1.21p (1.1p).
“We are in the right place at the right time but the whole general economic climate is one where you can’t afford to become complacent,” said Drew Johnson, chief executive.
The green services support business was established in 1990 to lead government-funded efforts to improve living conditions for vulnerable people in energy inefficient homes, a goal delivered through the government’s Warm Front programme, for which Eaga is the sole deliverer.
While maintaining involvement in fuel poverty schemes, the company now is pursuing wider markets, including heating and renewable energy installations, such as photovoltaic cells, for private householders.
Earlier in January, Eaga announced a three-year contract worth £14m from Drax Power to deliver the power generator’s entire obligation under the government’s £350m community energy savings programme.
Warm Front was granted a further £150m in the December pre-Budget report, taking total funding for 2010/11 to £345m.
For the six-month period Eaga’s revenues rose 15.3 per cent from £339.5m to £391.5m, and earnings per share rose 10.1per cent to 6.74p (6.12p). The closing net cash balance was £34.6m (£31.3m).
The shares closed up at 3.2p to 144.7p.
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