Friday, November 22, 2024

Smart meter giant Utilita eyes capital-raise to fund net zero ambition

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Utilita, one of Britain’s top ten energy suppliers, is plotting to raise tens of millions of pounds to fund projects aimed at meeting net zero targets.

Sky News has learnt that Utilita, which last season sponsored the Premier League football club Luton Town, has hired Alexa Capital to advise on the equity injection.

Sources close to the company, which has about 850,000 customers and installed 1.5m smart meters, said the initial tranche of money – likely to be around £50m – was expected to be followed by a larger fundraising in due course.

Industry insiders said infrastructure and climate change-driven funds were likely to be interested in a deal with Utilita.

The energy group, which used to be part-owned by BP, has been profitable for the last three years, and is said by insiders to have a strong balance sheet after coming through the sector-wide energy crisis exacerbated by Russia’s invasion of Ukraine.

A management buyout of the business took place earlier this year.

The new capital will primarily be used to fund growth initiatives at Utilita’s technology arm, Procode, and its growing renewables arm.

It is in the processing of installing solar power-generating panels at Hampshire County Cricket Club’s ground, known as the Utilita Bowl, and will commence installation at a Premier League football club this week.

“Utilita has never been in a better position, with a strong balance sheet and consistent profitability,” said Bill Bullen, Utilita’s chief executive, said.

“This will help us accelerate our growth plans in the tech and renewables space to deliver low carbon solutions and help our customers on the journey to net zero.”

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