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.
Justin Bieber was one of the hardest hit
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
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