__________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a OR 15d-16 OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For the month of February 2000.
INDEPENDENT ENERGY HOLDINGS plc
(Translation of Registrant's Name Into English)
RADCLIFFE HOUSE
BLENHEIM COURT
SOLIHULL, WEST MIDLANDS B91 2AA
UNITED KINGDOM
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F).
Form 20-F X Form 40-F
----- ------
(Indicated by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities and Exchange Act of 1934).
Yes No X
----- ------
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- . )
__________________________________________________________________________
1. Press Release dated February 15, 2000, entitled "Interim Results for the
six months to 31 December 1999."
INDEPENDENT ENERGY HOLDINGS PLC
INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999
INDEPENDENT ENERGY HOLDINGS PLC ("INDEPENDENT ENERGY"), THE LONDON AND
NASDAQ QUOTED ELECTRICITY, GAS AND TELECOMMS SUPPLIER, ANNOUNCES INTERIM
RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999.
* Turnover increased by 284% to [BRITISH POUND]338m (1998: [BRITISH
POUND]88m)
* Pre-tax profit of [BRITISH POUND]12.1m (1998: [BRITISH POUND]707,000)
* Post-tax profit of [BRITISH POUND]8.4m (1998: [BRITISH POUND]707,000)
* Customers now on stream increased to 259,000 for electricity and
63,000 for gas (1998: 2,425 and nil)
* Customers increasing at an average rate of 7,000 per week
* Total contracted annualised sales now [BRITISH POUND]1 billion (1998:
[BRITISH POUND]400m)
* Self generated electricity increased to 90MW (1998: 36.5MW)
* Substantial progress on billing issues
* Completed integration of York Gas
* Marketing underway to offer telecom services to small businesses
following agreement with Future Integrated Telephony
JOHN SULLEY, CHIEF EXECUTIVE, INDEPENDENT ENERGY, COMMENTED:
" THE GROUP HAD AN EXCEPTIONALLY GOOD START TO THE YEAR INCREASING SALES
AND PROFITABILITY AHEAD OF ORIGINAL EXPECTATIONS. THIS TREND HAS CONTINUED
INTO OUR SECOND HALF. WE HAVE FURTHER DEVELOPED OUR MULTI UTILITY OFFER TO
INCLUDE BOTH MOBILE AND FIXED TELEPHONES; THE RESPONSE TO THIS HAS BEEN
VERY ENCOURAGING TO DATE."
" GOING FORWARD WE WILL CONTINUE TO PURSUE FURTHER ORGANIC GROWTH WITHIN
THE UK THROUGH BOTH EXISTING AND NEW UTILITY OFFERS WHILST ALSO TARGETING
THE EUROPEAN MARKETS. IT IS ALSO PLEASING TO REPORT SUBSTANTIAL PROGRESS
IN REMOVING THE DELAY IN BILLS GOING OUT. THE COMPANY HAS PUT IN PLACE
PROCEDURES TO OVERCOME THE DATA PROBLEMS WHICH CONTINUE TO AFFECT THE
INDUSTRY IN GENERAL. THE PROSPECTS FOR THE GROUP REMAIN MORE THAN
ENCOURAGING."
16 FEBRUARY 2000
ENQUIRIES:
INDEPENDENT ENERGY TEL: 0121 705 1111
John Sulley, Chief Executive
Ian Stewart, Finance Director
COLLEGE HILL TEL: 0171 457 2020
James Henderson
Chelsea Allen
REVIEW OF OPERATIONS
RESULTS
The Group has had an exceptionally good start to the year, with turnover
increasing from [BRITISH POUND]88m to [BRITISH POUND]338 million. This
progress reflects Independent Energy's recently established position as the
cost effective alternative for electricity supply. Volume of electricity
supplied has increased over 240% to 7.2 TWh (1998: 2.1 TWh), giving
Independent Energy around a 5% market share of the UK electricity market.
The group has successfully capitalised on its growing presence within the
utility sector by acquiring a material number of gas customers in the first
half.
Contracted gas and electricity annualised sales are currently [BRITISH
POUND]1 billion, up from [BRITISH POUND]400 million at December 1998.
Electricity sales split as follows; [BRITISH POUND]548m medium-sized
businesses market (over-100kW), [BRITISH POUND]374m small-sized businesses
(sub-100kW), and [BRITISH POUND]47m domestic customers. Annualised gas
sales are up to [BRITISH POUND]31m. A total of 259,000 electricity
customers are now on line as well as 63,000 gas customers. The growth
continues with customers in the sub 100kW market increasing at a rate of
7,000 per week.
Pre-tax profit increased to [BRITISH POUND]12.1 million (1998: [BRITISH
POUND]707,000) and post-tax profit rose to [BRITISH POUND]8.4 million
(1998: [BRITISH POUND]707,000). The Board believes these results, which are
above our original expectations, highlight the material progress the Group
has made in a short period of time.
ELECTRICITY SUPPLY
Current electricity sales represent an annualised run rate of [BRITISH
POUND]969m, an increase of 142% from a year ago.
In the small business/domestic markets the sales effort is continuing to
deliver 7,000 customers per week. The creation of an electricity/gas
/telecom package for the small business market is being well received and
this will be used as a platform from which to drive forward sales in to the
future. The domestic market will continue to be attacked through affinity
arrangements offering "dual fuel".
CUSTOMER BILLING
Customer billing in the medium business (over-100kW) electricity and all
gas markets continues to run smoothly. These categories of business
represent 60% of billable sales in this period.
In the small business/domestic (sub-100kW) market industry problems with
the quality of data have resulted in delays to the billing of many
customers. At the time of full de-regulation of the electricity industry,
the Regional Electricity Companies were made responsible for passing on
meter reading and relevant meter details for all of their former customers
to new electricity suppliers. This transfer of data has not happened as
smoothly as originally envisaged by the industry and the Regulator and is a
problem for the whole of the electricity industry. Data problems have been
experienced in the majority of new customers which has delayed the sending
out of bills. The Company has developed new software and procedures to
allow it to overcome the data inadequacies.
The industry wide billing issue only relates to those customers in the sub
100k market who have been most recently deregulated. This category
represents some 40% of sales in the half year period. Billable sales
falling into this category at 31 December 1999 stood at [BRITISH POUND]130
million with [BRITISH POUND]35 million (27%) having been billed. After
implementing the new software and procedures some three weeks ago, an
additional [BRITISH POUND]52 million was billed by 15 February 2000. At 15
February billable sales are now [BRITISH POUND]166 million with bills worth
[BRITISH POUND]87 million (52%) having been issued. The Group is confident
that significant progress will continue to be made.
MARKETING AGREEMENT TO OFFER TELECOM SERVICES TO BUSINESS CUSTOMERS
On 29 December 1999 we announced a marketing agreement with Future
Integrated Telephony PLC ("FIT") allowing us to sell telecoms services
alongside our gas and electricity package to business customers. Gas and
electricity will also be sold to FIT customers with FIT acting as a sales
agent.
Independent Energy will receive commissions from FIT in respect of the
telecoms services sold which will be receivable in FIT shares (up to a
maximum of 2.5 million shares) and in cash, based on the number of customer
acquisitions. The share arrangement will exist for one year and the full
allocation equates to 57,000 new telecom customers. This is a significant
move for the Group and the first step towards becoming a true multi-
utility. Marketing started at the end of January and on the basis of early
indications we are confident of achieving the ambitious telecoms sales
targets we have set and benefiting from both the cash and share commission
which equates to 13% of FIT stock. A key benefit to business customers of
this agreement is the single offering of both mobile and fixed telephone
supply and billing.
GAS OFFERING
In October, the Group acquired York Gas Limited from Kelda Group plc,
following a trial retail partnership in 1998 and the award of a licence to
supply gas to households as well as business customers in June 1999. York
Gas is now fully integrated within Independent Energy. Gas sales have now
reached [BRITISH POUND]31 million on an annualised basis.
Following the agreement with FIT Independent Energy has progressed its
multi-utility offering of gas, electricity and telecoms for business
customers. It intends to continue to exploit existing affinity marketing
with Amerada, CPL and Cambridge Gas to supply gas and electricity to the
domestic market.
MEETING ENERGY REQUIREMENTS
Although the company purchases the majority of the energy requirements for
its customers from the pool, the company's generation and gas assets
provide a significant contribution to the reduction of overall energy cost.
Independent Energy generates electricity from a number of its own gas fired
plants, situated throughout the UK, for sale direct to its customers.
These plants are fuelled by its own small onshore gas fields and other
stranded fuels.
Considerable progress has been made in electricity generation over the past
year with 26 MW of generation being brought on-stream this quarter.
Independent Energy now generates a total of 90MW with a further 60MW
anticipated to be on stream by the end of the calendar year.
Independent Energy continues to be conscious of the need for energy
conservation and environmental issues and its policy is always to examine
any opportunity for the more efficient production and use of energy.
FARM OUT OF EXPLORATION ACREAGE
In February 1999 the Group announced the farm out of the exploration of its
Petroleum Licences on the Lancashire Plain, in the East Midlands and in The
Weald to Archean Energy (UK) Ltd and ISO (UK) Ltd, a subsidiary and an
affiliate of Archean Energy Ltd, a medium sized Canadian oil and
exploration and production company.
To date a total of 4 wells have been drilled out of a projected 7, with one
gas discovery at Cowden and an oil discovery at Lingfield. These are very
preliminary and results of further tests need to be evaluated. The Group
anticipates making a further announcement before the year end.
The whole exploration programme is being carried out at no cost to
Independent Energy.
OVERSEAS STRATEGY
The company continues to work on developing the framework for replication
of its UK model as continental European markets deregulate. Progress is
being made on developing relationships which will enable market entry into
Spain. No material sales are expected in the current financial year but it
is hoped to create a platform for future growth before the end of this
year.
STRATEGY AND PROSPECTS
The Group has had an exceptionally good start to the year increasing sales
and profitability ahead of original expectations. This trend has continued
into the second half. Independent Energy now has a material small to medium
business customer base and is ideally placed to capitalise on its position
as an electricity and gas supplier. Its recent entry into the supply of
telecomms services is a significant development and the Group intends to
seek ways of broadening its product offerings in the future.
Whilst small to medium sized businesses continue to be its main customer
focus, Independent Energy will continue to target domestic customers
through affinity relationships. The Group believes it can achieve
considerable organic growth from its existing offering in the UK, aside
from its overseas ambitions.
The prospects for the Group remain more than encouraging. Independent
Energy is ideally placed to move into its next phase of growth.
JOHN SULLEY
CHIEF EXECUTIVE
16 FEBRUARY 2000
NOTE:
This press release includes forward-looking statements within the meaning
of Section 27 A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Independent Energy believes that
its expectations are based on reasonable assumptions, it can give no
assurance that such expectations will be achieved. Important factors that
could cause actual results to differ materially from those in the forward
looking statements herein include, but are not limited to, success in
implementing its business strategies, increases in the cost of energy, the
nature and extent of new competition and changes in the general economic
condition in the United Kingdom and/or in the markets in which it compete.
Many of these factors are beyond the control of Independent Energy and its
management.
<TABLE>
INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999
ABRIDGED GROUP PROFIT AND LOSS ACCOUNT
<CAPTION>
6 months 6 months
ended 6 months ended Year ended
31 December ended 31 December 30 June
1999 31 December 1998 1999
(Unaudited) 1999 (Unaudited) (Audited)
[BRITISH (Unaudited) [BRITISH [BRITISH
POUND]000 $000 POUND]000 POUND]000
<S> <C> <C> <C> <C>
TURNOVER 337,692 546,170 88,218 246,856
Cost of sales (313,219) (506,570) (85,297) (234,387)
GROSS PROFIT 24,473 36,600 2,921 12,469
Net operating expenses (8,393) (13,578) (1,584) (4,530)
Depreciation & amortisation (1,405) (2,272) (702) (1,650)
OPERATING PROFIT 14,675 23,750 635 6,289
Net interest & similar (expense) / income (2,609) (4,216) 72 (1,353)
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 12,066 19,534 707 4,936
Taxation (3,620) (5,860) 0 (929)
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION 8,446 13,674 707 4,007
BASIC EARNINGS PER SHARE 26.7p 43c 2.9p 15.7p
DILUTED EARNINGS PER SHARE 24.1p 39c 2.6p 14.2p
<FN>
NOTES:
i ) The three months results have been translated into US dollars solely for
the convenience of readers at a rate of $1.60 per [BRITISH POUND]1 which was the
average exchange rate for the quarter to 30th September 1999, for the first
three months, and at a rate of $1.63 per [BRITISH POUND]1, which was the average
exchange for the quarter to 31 December 1999.
These translations should not be construed as representative of US dollar values
that would have been obtained had they been computed in accordance with US
generally accepted accounting principles.
ii ) p = Pence. c = US cents.
</FN>
</TABLE>
INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999
ABRIDGED GROUP BALANCE SHEET
As at As at As at
31 December 31 December 30 June
1999 1998 1998
(Unaudited) (Unaudited) (Audited)
[BRITISH [BRITISH [BRITISH
POUND]000 POUND]000 POUND]000
FIXED ASSETS 64,384 32,730 45,842
NET CURRENT ASSETS
Cash 1,405 2,894 578
Security deposit 4,029 7,557 6,738
Debtors 271,670 50,477 84,383
Creditors (161,978) (34,136) (68,513)
Corporation tax (600)
TOTAL NET CURRENT ASSETS 114,526 26,792 23,186
CREDITORS - DUE AFTER MORE
THAN 1 YEAR (24,516) (14,154) (19,220)
PROVISIONS FOR LIABILITIES
AND CHARGES (3,949) 0 (929)
NET ASSETS 150,445 45,368 48,879
CAPITAL AND RESERVES
Ordinary share capital 367 261 263
Share premium account 139,046 45,822 46,030
Profit and loss
account 11,032 (715) 2,586
SHAREHOLDERS' FUNDS 150,445 45,368 48,879
NOTES:
1) THE BASIS OF PREPARATION
This six months reports have been prepared using the same accounting
policies used for the full annual report for the year ended 30th June 1999.
2) EARNINGS PER SHARE
Basic EPS for the six months is based on the weighted average number of
ordinary shares of 31,663,761 (1998: 24,752,402). Diluted EPS for the six
months is based on the weighted average number of ordinary shares of
35,949,030 (1998: 28,310,400).
INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999
ABRIDGED GROUP CASH FLOW STATEMENT
6 months
6 months ended
ended 31 December Year ended
31 December 1998 30 June
1999 (Unaudited) 1999
(Unaudited) [BRITISH (Audited)
[BRITISH POUND]000 [BRITISH
POUND]000 POUND]000
Operating Profit 14,675 635 6,289
Depreciation & amortisation 1,405 702 1,650
(Increase) in working
capital (116,580) (15,710) (39,666)
NET CASH (OUTFLOW) FROM
OPERATING ACTIVITIES (100,500) (14,373) (31,727)
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
INTEREST (PAID)/RECEIVED (2,741) 5 (1,771)
CAPITAL EXPENDITURE
Payments to acquire fixed
assets (net) (8,687) (7,180) (14,845)
Payments to acquire
subsidiary undertakings (4,422) 0 0
TOTAL CAPITAL EXPENDITURE (13,109) (7,180) (14,845)
FINANCING - SHARES
Issue of ordinary shares
(net of expenses) 93,120 35,209 35,419
TOTAL FINANCING - SHARES 93,120 35,209 35,419
FINANCING - LOANS
New loans 39,000 2,674 5,172
Repayment of loans (673) (5,900) (6,400)
Capital element of finance (814) (582) (1,189)
lease rental payment
TOTAL FINANCING - LOANS 37,513 (3,808) (2,417)
NET CASH INFLOW/(OUTFLOW)
IN THE PERIOD 14,283 9,853 (15,341)
Net effect of exchange rate
movements 37 (1) 20
INCREASE/ (DECREASE) IN
CASH & INVESTMENTS IN THE
PERIOD 14,320 9,852 (15,321)
INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE THREE MONTHS TO 31ST DECEMBER 1999
ABRIDGED GROUP PROFIT AND LOSS ACCOUNT
3 months 3 months 3 months Year
ended 31 ended 31 ended 31 ended
December December December 30 June
1999 1999 1998 1999
(Unaudited) (Unaudited) (Unaudited) (Audited)
[BRITISH $000 [BRITISH [BRITISH
POUND]000 POUND]000 POUND]000
TURNOVER 195,424 318,541 61,191 246,856
Cost of sales (180,662) (294,479) (59,335) (234,387)
GROSS PROFIT 14,762 24,062 1,856 12,469
Net operating (4,972) (8,104) (903) (4,530)
expenses
Depreciation &
amortisation (821) (1,338) (366) (1,650)
OPERATING PROFIT 8,969 14,619 587 6,289
Net interest &
similar (expense)
/ income (1,397) (2,277) 25 (1,353)
PROFIT ON ORDINARY
ACTIVITIES BEFORE
TAXATION 7,572 12,342 612 4,936
Taxation (2,272) (3,703) 0 (929)
PROFIT ON ORDINARY
ACTIVITIES AFTER
TAXATION 5,300 8,639 612 4,007
Basic Earnings per
share 14.4p 24c 2.3p 15.7p
Diluted Earnings
per share 13.2p 22c 2.1p 14.2p
NOTES:
i ) The three months results have been translated into US dollars solely
for the convenience of readers at a rate of $1.63 per [BRITISH POUND]1
which was the average exchange rate for the quarter to
31 December 1999.
These translations should not be construed as representative of US dollar
values that would have been obtained had they been computed in accordance
with US generally accepted accounting principles.
ii ) p = Pence. c = US cents.
INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE THREE MONTHS TO 31ST DECEMBER 1999
ABRIDGED GROUP CASH FLOW STATEMENT
3 months
ended 3 months ended Year ended
31 December 31 December 30 June
1999 1998 1999
(Unaudited) (Unaudited) (Audited)
[BRITISH [BRITISH [BRITISH
POUND]000 POUND]000 POUND]000
Operating Profit 8,949 586 6,289
Depreciation & amortisation 821 366 1,650
(Increase) in working
capital (82,715) (6,920) (39,666)
NET CASH (OUTFLOW) FROM
OPERATING ACTIVITIES (72,945) (5,968) (31,727)
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
INTEREST (PAID)/RECEIVED (1,398) 4 (1,771)
CAPITAL EXPENDITURE
Payments to acquire fixed
assets (net) (2,315) (2,426) (14,845)
Payments to acquire
subsidiary undertakings (4,422) 0 0
TOTAL CAPITAL EXPENDITURE (6,737) (2,426) (14,845)
FINANCING - SHARES
Issue of ordinary shares
(net of expenses) 93,120 (10) 35,419
TOTAL FINANCING - SHARES 93,120 (10) 35,419
FINANCING - LOANS
New loans 35,000 2,673 5,172
Repayment of loans (673) (250) (6,400)
Capital element of finance
lease rental payment (447) (313) (1,189)
TOTAL FINANCING - LOANS 33,880 2,110 (2,417)
NET CASH (INFLOW) IN THE
PERIOD 45,920 (6,290) (15,341)
Net effect of exchange rate
movements 50 7 20
INCREASE/(DECREASE) IN CASH
& INVESTMENTS IN THE PERIOD 45,970 (6,283) (14,321)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
INDEPENDENT ENERGY HOLDINGS plc
Date: February 15, 2000 By: /S/ JOHN SULLEY
-------------------------------
John Sulley
Chief Executive
