LONDON, UK: Telecom Plus Plc has agreed the disposals of two non-core businesses comprising its wholly owned meter operator, UW Home Services Ltd (UWHS), and its 75% owned boiler installation business, comprising Glow Green Ltd and Cofield Ltd.
Neither disposal is expected 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 originally set up by the Group to increase the pace of its smart meter rollout and enable it to meet the challenging rollout targets set by Ofgem. Since starting operations in 2018, it has successfully installed over 400,000 meters, leading to the second highest smart meter penetration rate in the industry.
Following this transaction, UWHS will continue to provide the Group with meter operator services, whilst benefitting from higher utilisation levels and increased efficiency from providing similar services to other energy suppliers as part of the Calisen Group.
Section 10.4.1 of the Listing Rules requires the disclosure of the following information in relation to this transaction: (i) the consideration for the sale of UWHS was £1 in cash, (ii) the value of its gross assets in the last audited accounts of UWHS was £7.6m (net liabilities of £5.3m), and (iii) it made a pre-tax loss of £3.0m in the year to 31 March 2021.
Glow Green
The Group has also agreed to sell, subject to the necessary FCA change of control approval, its 75% shareholding in Glow Green for cash consideration of £1 to Charles Wigoder, Executive Chairman of the Group. As previously announced, Mr Wigoder (whilst remaining as Chairman) is moving to a non-executive role in the Group with effect from the AGM in July.
Since acquiring Glow Green in 2018, the business has been consistently loss-making; this has contributed to a cumulative funding requirement of over £6m that will remain with Glow Green as a debt to the Group and be repaid over time.
The Board believe that the disposal of Glow Green is in the best interests of the Group given the significant management resource it would otherwise require, particularly at a time when the growth opportunities within the core business are so exciting.
Telecom Plus, which owns and operates the Utility Warehouse brand, is the UK’s only fully integrated provider of a wide range of competitively priced utility services spanning the Communications, Energy and Insurance markets.