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EXHIBIT 99.1
INDEPENDENT ENERGY HOLDINGS PLC
FOR IMMEDIATE RELEASE 14 June 2000
Not for release, publication or distribution in or into Canada, Australia or
Japan
INDEPENDENT ENERGY HOLDINGS PLC (the "Company")
RESPONSE TO SHARE PRICE MOVEMENT
The Board of Independent Energy Holdings has noted the recent movement in the
prices of its ordinary shares and American Depositary Shares and wishes to
clarify the Company's current position.
In its results announcement of 17 May for the nine months to 31 March 2000, the
Company referred to its difficulties in the timely billing of customers in the
sub-100kW market, which represents approximately 40 per cent. of the Company's
turnover. Progress towards the resolution of this issue continues but has been
slower than anticipated. The level of billings delayed is Pound Sterling119
million (against Pound Sterling112 million at 17 May), albeit against the
background of the continued growth of the business.
To address this, the Company has significantly expanded its in-house billing
infrastructure for this market. This expansion is enabling the Company to
transfer additional customer accounts from its outside billing service provider
to its in-house facility. The Company's current billing position does not yet
fully reflect the benefits of these recent improvements, which the Directors
believe will lead to the resolution of the sub-100kW billing problems.
In the above 100kW and gas markets, which together represent approximately 60
per cent. of its revenues, the Company continues to bill its customers in a
timely manner using its existing in-house systems for these markets.
The Board is keeping under close review the Company's actual and forecast cash
position and the utilisation of its bank facilities. Based on its current
expectations as to the rate of cash collections, levels of Electricity Pool
prices, and the continuing availability of the Company's banking facilities, the
Board believes that the Company has sufficient working capital available for its
current requirements until the expiration of its revolving credit facility on 29
September 2000. The Company is in active discussions to put in place an
appropriate longer term facility which will provide for its future working
capital requirements. In addition, the Company is reviewing other financial and
strategic alternatives available to it.
Enquiries:
Independent Energy Holdings Plc
John Sulley, Chief Executive 0121 705 1111 (from 10.00 a.m.)
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Note
This press release includes forward-looking statements within the meaning of
Section 27A of the U.S. Securities Exchange Act of 1934. Although Independent
Energy Holdings Plc believes that its expectations are based on reasonable
assumptions, it cannot provide assurances that these expectations will be
achieved. Important factors could cause actual results to differ materially from
those in the forward-looking statements, including, but not limited to, the
ability to bill and collect revenue in a timely manner, success in implementing
its business strategies, increases in the cost of energy, its ability to develop
or obtain the necessary systems required by an expanding level of operations and
changes in the economic and other conditions in which it competes. Many of these
factors are beyond the control of Independent Energy Holdings Plc and its
management.
