Energy savers eaga to create 100 new jobs

Jan 29 2010 by Peter McCusker, The Journal

SALES and profits have continued to surge at environmental support services company eaga, which has revealed plans to create another 100 jobs this year with a series of new initiatives.

A strong six months to the end of November 2009 has seen the Newcastle-based plc post revenues up 15% to £391.5m with pre-tax profits up 10% to £23.9m.

The company, which provides a host of energy-saving support services, currently employs around 1,400 staff in the North East and almost 5,000 across the UK.

It generates three-quarters of its revenues from the Government Warm Front home insulation programme, the Government’s fuel poverty scheme and from working with utility companies to cut carbon emissions.

This year it will enter the home energy creation market with the launch of a division to install domestic solar roof panels and this could create up to 100 jobs, said chief financial officer Ian McLeod.

He said: “We will continue to grow our workforce as the business expands and there are growth opportunities across all parts of the business.”

The company sees further growth potential in the division which provides back-office functions as cash-strapped local and central government authorities look to outsource more work.

Eaga’s strength lies in it ability to position itself in areas of work which are benefiting from the UK’s low-carbon energy regulatory initiatives.

“But this is no accident”, said Mr McLeod. “We have scrutinised the market and identified what we can see as growth areas.”

Chairman Charles Berry said: “I am pleased with the progress that the group has made during the first half of the year, continuing its track record of delivering strong year-on-year growth.

“The outlook for the group remains strong and we continue to be well placed to capitalise on the opportunities that arise in our core markets.

“Trading since the period end has continued in line with our plans and the board remains confident of the financial performance of the group for the remainder of the financial year.”

Analysts estimate eaga will produce full-year revenues of £780m and full- year profits of £53m. It made pre-tax profits of £47.5m in the 12 months to the end of last May.

Brokers Panmure Gordon said: "With the ongoing drive to improve energy efficiency, fuel poverty, environment and carbon-reduction issues, backed up by Government- funded schemes, we have a positive stance.”

The company has won work believed to be worth in excess of £14m to help power generator Drax meet new Government energy efficiency targets. The two companies will deliver the Community Energy Saving Programme.