Make your money go further for just 25p per day

Utilitywise (AIM:UTW) perhaps it’s the unusual accounting treatment which has come back to haunt

12/08/2015 · Utilitywise (UTW) 

Shares in the AIM quoted utility cost management consultancy suffered a sharp correction today following a trading update and news of management changes. We liked this business when it first arrived on AIM and continue to admire its impressive sales mechanism. However, we became increasingly uncomfortable about its unusual, or rather unexplained, accounting treatment in terms of revenue recognition. We just wonder if today’s sell-off remains a reflection of the growing concerns surrounding this rather than simply a short term profit miss.

Revenue for the year ending July 2015 is expected to be slightly ahead of market expectations at approximately £69m, representing growth of c.42%. However, an increase in a number of costs, including costs associated with a significant increased consultant headcount in the Enterprise Division, means that the (dreaded) “EBITDA” is expected to be slightly below market expectations – how we dislike that term!


The house broker…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login


Previous article Next article

DON'T MISS OUT!

Get top investment ideas to help safeguard and grow your wealth.

Invaluable insight from the exciting world of smaller companies.

REGISTER FREE

DON'T MISS OUT ON OUR PREMIUM CONTENT

Become a champion investor for just £90 a year. Benefit from our high performing portfolios:

START FREE TRIAL

More on Utilitywise

AIM heroes, villains and an exciting IPO, at last

24/05/2019 · Company Insights

With AGM season in full swing on AIM, we have put together a review of recent updates…


Utilitywise - is this Woodford pick reaching the end of the line?

09/11/2018 · Company Insights
News that founder of utility cost management consultancy business Utilitywise has now sold out entirely, despite…

More Company Insights

AIM new arrivals and departures October 2024

08/11/2024 · GenIP · Pulsar Helium

Challenging outlooks | Reassuringly boring | Hidden value

Stonking Small Cap reports cracking results

06/11/2024 · dotDigital

Sign-up to our free email updates

SIGN UP