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.
- 1 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 2 Black Mass trailer: Johnny Depp might have started making good films again
- 3 Jacob Lescenski and Anthony Martinez: Straight student asks gay friend to High School prom and makes a million Twitter friends
- 4 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Head transplant: man will be attached to new body in under an hour and aim is immortality, doctor says
Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...