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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 May 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- . )
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See attached press release.
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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: May 17, 2000 By:/s/ John Sulley
--------------------------
John Sulley
Chief Executive
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION OF EXHIBIT
99.1 Press Release, dated 17 May 2000.
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Exhibit 99.1
INDEPENDENT ENERGY HOLDINGS PLC
THIRD QUARTER RESULTS FOR THE NINE MONTHS ENDED 31 MARCH 2000
INDEPENDENT ENERGY HOLDINGS PLC ("INDEPENDENT ENERGY"), THE LONDON AND NASDAQ
QUOTED ELECTRICITY, GAS AND TELECOMS SUPPLIER, ANNOUNCES THIRD QUARTER RESULTS
FOR THE NINE MONTHS TO 31 MARCH 2000.
* Turnover for the nine months of Pound Sterling566.3m, (Pound Sterling157m
in the same period in 1999)
* Turnover for the quarter Pound Sterling228m (Pound Sterling68.5m in the
same period in 1999)
* Profit before tax of Pound Sterling21.7m (Pound Sterling1.9m in the same
period in 1999)
* Profit before tax for the quarter Pound Sterling9.6m (Pound Sterling1.2m in
the same period in 1999)
* Total contracted annualised sales of gas and electricity of Pound
Sterling1,088 (1999: Pound Sterling543m)
* Progress made on resolution of billing difficulties
* 1,600 telecoms customers recruited in the last quarter
* Additional 10MW of electricity generation added bringing total electricity
generated to 100MW
JOHN SULLEY, CHIEF EXECUTIVE OF INDEPENDENT ENERGY HOLDINGS PLC, COMMENTED:
" THESE ARE EXCEPTIONAL RESULTS HIGHLIGHTING THE GROUP'S POSITION AS A UTILITY
SUPPLIER PARTICULARLY TO SMALL AND MEDIUM SIZED BUSINESSES, WHICH REPRESENTS
OVER 85% OF BOTH PROFIT AND TURNOVER. THIS AREA OF THE GROUP'S BUSINESS
CONTINUES TO HOLD SIGNIFICANT POTENTIAL FOR FURTHER GROWTH BOTH IN THE UK AND
OVERSEAS.
" WHILST THE GROUP'S OFFER TO DOMESTIC AND VERY SMALL BUSINESS CUSTOMERS HAS
BEEN OVERSHADOWED BY ITS BILLING PROBLEMS, WE ARE FOCUSED ON THE RESOLUTION AND
I EXPECT THEY WILL BE LARGELY RESOLVED WITHIN A SHORT PERIOD, ALLOWING US TO
MOVE FORWARD IN THIS AREA OF THE MARKET."
17 MAY 2000
ENQUIRIES:
INDEPENDENT ENERGY HOLDINGS PLC (TODAY) TEL: 020 7457 2020
John Sulley, Chief Executive THEREAFTER: 0121 705 1111
Ian Stewart, Finance Director
COLLEGE HILL TEL: 020 7457 2020
James Henderson
Chelsea Allen
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INDEPENDENT ENERGY HOLDINGS PLC THIRD
QUARTER RESULTS FOR THE NINE MONTHS ENDED 31 MARCH 2000
The Company continues to increase sales at a substantial growth rate. Turnover
increased by 254% to Pound Sterling556m, while profit before tax increased by
1042% to Pound Sterling21.7m. This demonstrates the achievement that the Company
has made. Annualised gas and electricity sales are currently Pound
Sterling1,088, up from Pound Sterling543m at May 1999.
The Company believes these results highlight the strength of the group's
position as a utility provider to the medium and small business market. This
area of the market continues to be our prime focus.
As announced in December 1999, the Company has added a telecoms package to its
electricity and gas offering for the small business market. To date, 1,600
customers have been contracted, which provide the Company with net income of
some Pound Sterling300,000 on an annualised basis.
CUSTOMER BILLING ISSUES AND NEW FINANCING
Over the past 8 months we have experienced continuing difficulty in the timely
billing of customers in the sub-100kw market. As a result Pound Sterling112m in
billing is currently delayed. To date the Company has been able to deliver bills
for approximately 62% of the revenue affected by this problem.
As a result of this billing problem and pending settlement of accounts
receivable the Company's liquidity was impacted and it needed to obtain
additional working capital. On 16 May 2000 the Company executed an amendment to
its Pound Sterling80m revolving credit and letter of credit facility to increase
the amount available to Pound Sterling165m and to include DLJ Bridge Finance
Inc. in the syndicate of banks under the facility. This facility will expire in
29 September 2000 and bears interest at the rate of libor plus 2%. Prior to the
termination of this facility the Company will seek to put in place an
appropriate longer term facility which it will need to provide for its future
working capital requirements. The Company believes that this increased borrowing
will provide it with sufficient funds pending correction of the billing
difficulties. The Company believes that it now has in place a specific strategy,
which includes the new system of validating the front end data and cleaning the
backlog of data, to ensure that future bills are dealt with efficiently and
effectively.
In agreement with OFGEM, the Company has recently undertaken an additional
license condition so that it will not recruit any new "Designated" (domestic and
very small business) customers until billing and customer service reaches a
standard both it and the Regulator have agreed is acceptable. "Designated"
customers have traditionally represented about 10% of sales revenue. The Company
is working to achieve a resolution of billing and customer service issues as
quickly as practicable. Call centre performance has achieved the agreed levels
for the last two weeks. The remainder of the Company's electricity business
(over-100kW) and the gas market have been completely unaffected by any customer
billing problems.
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FINANCING
In March 2000, the Company successfully completed an Offering, for the sale of
3.2 million Ordinary Shares through which Pound Sterling93m was raised.
GENERATION
A further 10MW has been brought on stream this quarter, with a further 40MW,
anticipated to be on stream by the end of the calendar year. The Company now
generates a total of 100MW much of which it believes will contribute to future
environmental and renewable energy obligations.
STRATEGY AND PROSPECTS
Improving customer service and resolving the billing problems affecting
customers is the Company's biggest immediate priority. The small and medium
business market holds considerable potential for future growth which it intends
to exploit both in the UK and overseas in due course.
Note:
This press release includes forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S.
Securities Exchange Act of 1934. Although Independent Energy 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 and its management.
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INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE NINE MONTHS TO 31 MARCH 2000
ABRIDGED GROUP PROFIT AND LOSS ACCOUNT
<TABLE>
<CAPTION>
9 MONTHS ENDED 9 MONTHS ENDED 9 MONTHS ENDED Year ended
31 MARCH 2000 31 MARCH 2000 31 MARCH 1999 30 June 1999
(UNAUDITED) (UNAUDITED) (UNAUDITED) (Audited)
POUND STERLING'000 $'000 POUND STERLING'000 Pound Sterling'000
<S> <C> <C> <C> <C>
TURNOVER 566,363 914,330 156,801 246,856
Cost of sales (521,785) (842,361) (150,611) (234,387)
GROSS PROFIT 44,578 71,969 6,190 12,469
Net operating expenses (15,410) (24,875) (2,634) (4,530)
Depreciation & amortisation (2,753) (4,442) (1,134) (1,650)
OPERATING PROFIT 26,415 42,652 2,422 6,289
Net interest & similar (expense)/income (4,747) (7,658) (492) (1,353)
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 21,668 34,994 1,930 4,936
Taxation (6,500) (10,497) 0 (929)
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION 15,168 24,497 1,930 4,007
BASIC EARNING PER SHARE 45.3p .73c 7.7p 15.7p
DILUTED EARNINGS PER SHARE 40.6p .66c 6.8p 14.2p
</TABLE>
Notes:
i) The nine months results have been translated into US dollars solely for the
convenience of readers at a rate of $1.60 per Pound Sterling1 which was the
average exchange rate for the quarter to 30 September 1999, for the first
three months, at a rate of $1.63 per Pound Sterling1, which was the average
exchange rate for the quarter to 31 December 1999, for the second three
months, and at a rate of $1.61 per Pound Sterling1, which was the average
exchange rate for the third three months. 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.
2) EARNINGS PER SHARE
Basic EPS for the nine months is based on the weighted average number
of ordinary shares of 33,454,091 (1999: 25,210,636).
Diluted EPS for the nine months is based on the weighted average number of
ordinary shares of 37,794,114 (199: 28,906,376).
3) p = pence c = cents
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INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE NINE MONTHS TO 31 MARCH 2000
ABRIDGED GROUP BALANCE SHEET
<TABLE>
<CAPTION>
AS AT As at As at
31 MARCH 2000 31 March 1999 30 June 1999
(UNAUDITED) (Unaudited) (Audited)
POUND STERLING'000 Pound Sterling'000 Pound Sterling'000
<S> <C> <C> <C>
FIXED ASSETS 68,702 39,918 45,842
NET CURRENT ASSETS
Cash 95,740 425 578
Security Deposits 1,004 6,911 6,738
Debtors 370,309 73,773 84,383
Creditors (254,829) (55,890) (68,513)
Corporation Tax (3,676)
TOTAL NET CURRENT ASSETS 208,548 25,219 23,186
CREDITORS - DUE AFTER MORE THAN 1 YEAR (23,099) (18,386) (19,220)
PROVISIONS FOR LIABILITIES AND CHARGES (3,095) 0 (929)
NET ASSETS 251,056 46,751 48,879
CAPITAL AND RESERVES
Ordinary Share Capital 407 262 263
Share Premium Account 232,896 45,981 46,030
Profit and Loss Account 17,753 508 2,586
SHAREHOLDERS' FUNDS 251,056 46,751 48,879
</TABLE>
Notes:
1) BASIS OF PREPARATION
This nine month report has been prepared using the same accounting
policies used for the full annual report for the year ended 30 June 1999.
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INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE NINE MONTHS TO 31 MARCH 2000
ABRIDGED GROUP CASH FLOW STATEMENT
<TABLE>
<CAPTION>
9 MONTHS ENDED 9 MONTHS ENDED YEAR ENDED
31 MARCH 2000 31 MARCH 1999 30 JUNE 1999
(UNAUDITED) (UNAUDITED) (AUDITED)
POUND STERLING'000 POUND STERLING'000 POUND STERLING'000
<S> <C> <C> <C>
Operating Profit 26,413 2,422 6,289
Depreciation & amortisation 2,753 1,134 1,650
Decrease/(increase) in working capital (207,358) (43,432) (39,666)
NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES (178,192) (39,876) (31,727)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest (paid)/received (4,926) (437) (1,771)
TOTAL RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (4,926) (437) (1,771)
TAXATION
Tax paid in period (660) 0 0
TOTAL TAXATION (660) 0 0
CAPITAL EXPENDITURE
Payments to acquire fixed assets (net) (10,727) (13,287) (14,845)
Payments to acquire subsidiary undertakings (4,422) 0 0
TOTAL CAPITAL EXPENDITURE (15,149) (13,287) (14,845)
FINANCING - SHARES
Issue of ordinary shares (net of expenses) 187,009 35,369 35,419
TOTAL FINANCING - SHARES 187,009 35,369 35,419
FINANCING - LOANS
New Loans 80,088 5,173 5,172
Repayment of loans (744) (6,150) (6,400)
Capital element of finance lease rental payment (1,193) (813) (1,189)
TOTAL FINANCING - LOANS 78,150 (1,790) (2,417)
NET CASH INFLOW/(OUTFLOW) IN THE PERIOD 66,233 (20,021) (15,341)
Net effect of exchange rate movements 47 8 20
INCREASE/(DECREASE) IN CASH & INVESTMENTS IN THE PERIOD
66,279 (20,013) (15,321)
</TABLE>
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INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE THREE MONTHS TO 31 MARCH 2000
ABRIDGED GROUP PROFIT AND LOSS ACCOUNT
<TABLE>
<CAPTION>
3 MONTHS ENDED 3 MONTHS ENDED 3 MONTHS ENDED Year ended
31 MARCH 2000 31 MARCH 2000 31 MARCH 1999 30 June 1999
(UNAUDITED) (UNAUDITED) (UNAUDITED) (Audited)
POUND STERLING'000 $'000 POUND STERLING'000 Pound Sterling'000
<S> <C> <C> <C> <C>
TURNOVER 228,671 368,160 68,583 246,856
Cost of sales (208,566) (335,791) (65,314) (234,387)
GROSS PROFIT 20,105 32,369 3,269 12,469
Net operating expenses (7,017) (11,297) (1,050) (4,530)
Depreciation & amortisation (1,348) (2,170) (432) (1,650)
OPERATING PROFIT 11,740 18,901 1,787 6,289
Net interest & similar (expense)/income (2,138) (3,442) (564) (1,353)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
9,602 15,459 1,223 4,936
Taxation (2,880) (4,637) 0 (929)
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION
6,722 10,822 1,223 4,007
BASIC EARNINGS PER SHARE 18.1p .29c 4.7p 15.7p
DILUTED EARNINGS PER SHARE 16.6p .27c 4.2p 14.2p
</TABLE>
Notes:
i) The three months results have been translated into US dollars solely
for the convenience of readers at a rate of $1.61 per Pound Sterling1
which was the average exchange rate for the quarter to 31 March 2000.
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.
iii) Basic EPS for the 3 months is based on the weighted average number of
ordinary shares of 37,074,100 (1999: 26,147,471).
Diluted EPS for the 3 months is based on the weighted average number of
ordinary shares of 41,524,834 (1999: 30,124,816).
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INDEPENDENT ENERGY HOLDINGS PLC
UNAUDITED RESULTS FOR THE THREE MONTHS TO 31 MARCH 2000
ABRIDGED GROUP CASH FLOW STATEMENT
<TABLE>
<CAPTION>
3 MONTHS ENDED 3 MONTHS ENDED YEAR ENDED
31 MARCH 2000 31 MARCH 1999 30 JUNE 1999
(UNAUDITED) (UNAUDITED) (AUDITED)
POUND STERLING'000 POUND STERLING'000 POUND STERLING'000
<S> <C> <C> <C>
Operating Profit 11,738 1,788 6,289
Depreciation & amortisation 1,348 432 1,650
Decrease/(increase) in working capital (90,778) (27,724) (39,666)
NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES (77,692) (25,504) (31,727)
Interest (paid)/received (2,185) (442) (1,771)
TOTAL RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (2,185) (442) (1,771)
TAXATION
Tax paid in period (660) 0 0
TOTAL TAXATION (660) 0 0
CAPITAL EXPENDITURE
Payments to acquire fixed assets (net) (2,040) (6,107) (14,845)
TOTAL CAPITAL EXPENDITURE (2,040) (6,107) (14,845)
FINANCING - SHARES
Issue of ordinary shares (net of expenses) 93,889 160 35,419
TOTAL FINANCING - SHARES 93,889 160 35,419
FINANCING - LOANS
New loans 41,087 2,500 5,172
Repayment of loans (71) (250) (6,400)
Capital element of finance lease rental repayment (380) (231) (1,189)
TOTAL FINANCING - LOANS 40,636 2,019 (2,417)
NET CASH INFLOW/(OUTFLOW) IN THE PERIOD 51,948 (29,875) (15,341)
Net effect of exchange rate movements 10 9 20
INCREASE/(DECREASE) IN CASH & INVESTMENTS IN THE PERIOD 51,958 (29,866) (15,321)
</TABLE>
