Locality Planning Energy Holdings Limited (ASX: LPE) operates as a holding company. The Company, through its subsidiaries, distributes electricity to communities. Locality Planning Energy Holdings operates in Australia.
The company has via the latest release on ASX disclosed the market update and presented its cash flow for the period ended 31 December 2018.
The Australian Energy Regulator (AER) report which released their annual performance, ranked LPE 15th nationally across all the retailers, with customer growth for the year of around 85.16% through to June 30, 2018. Since that date, there has been further growth in the Network customer numbers by a further 14%.
The firm is still seeing continued traction in the direct market offering segment, which is predominantly concentrated upon the small common area supply for strata communities along with residential customers moving out of strata into the detached dwellings is up 48%.
The company has through guidance for the next 12-month forecast through to 30 June 2019 (FY19) has downgraded revenues to a $32 million. This downgrade was mainly on account of the reduction witnessed in the wholesale cost of electricity and Energex network charges which are needed to be passed on to the electricity consumer in full. With the later than expected financial close on the BlackRock funding (November 2018), the company had also experienced a time lag in the new community conversions and onboarding of direct market customers which has had its effect on to the previously anticipated revenues of $44m.
The BlackRock debt facility has continuously been provided in the utilization of the company’s operations and the BlackRock are continuing to aid the company and its management in progressing its operations and also in pursuing the new opportunities.
The company had a cash balance at the end of the quarter amounting to $3,350 Mn which is after the repayment of $1,934M of director loans.
The Company finalized several one-offs, professional and corporate costs for the quarter amounting to an approximate $1.0M due to the professional, due diligence and legal costs to garner & facilitate the BlackRock loan facility.
Other than this, the administration costs of $1,077M that was incurred for the operating activities during the quarter are in line with management’s expectations and in accordance with the stage of growth of the Company.
Now let us quickly look at the company’s stock performance over the last few months. The stock was last traded at $ 0.82, with a market capitalization of circa $40.92 Mn as on 25 Jan. 2019. The stock has delivered a YTD return of -4.65%. The company has posted returns of -13.68%, and -1.20% over the last six months & one months period respectively, as on 25 January 2019. It has a 52-week high price of $1.30 and a 52-week low of 0.765, with an average volume of 422,957 approximately.
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