Investment column: Independent
Tuesday 17 August 1999
Independent Energy was set up to take advantage of deregulation in the UK electricity market, and has done so with gusto. Although a minnow in a market dominated by the regional electricity companies, Independent has concentrated on supplying electricity to medium-sized businesses and claims a 6 to 7 per cent share of that business.
It has been helped by being able to use its nimbler marketing techniques to outmanoeuvre the lumbering Recs. It also has a built-in regulatory advantage, which means that if a Rec offers a discount to an individual customer if must offer the same terms to all other customers in that category. With their margins already under attack from Ofgem, the Recs have so far not been sufficiently worried about the threat from the likes of Independent Energy to bother, though of course that could change as the threat grows.
A move to the main market is planned for the autumn. This will be combined with a fund raising of about pounds 50m to underwrite investment in better systems as well as expansion plans in the deregulating electricity markets of continental Europe. Spain and Holland are likely to be the first targets, though not until next year.
On Peel Hunt's full-year profit forecast of pounds 18m the shares trade on a forward multiple of 22, falling to 13 the following year. Investors who were in at the start might consider taking profits after such a strong run. But prospects are still good, making the shares an attractive buy on weakness.
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- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
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