LONDON Oct 5 British energy supplier First
Utility has postponed plans to list shares due to uncertainty
created by Brexit and because proposals to improve competition
in the energy market have not yet borne fruit, its chief
financial officer said.
First Utility, one of the smaller firms steadily snatching
market share from the incumbent "Big Six" energy suppliers, made
plans last year for an initial public offering (IPO) and picked
board members to steer it through the process.
But Britain's vote to leave the European Union (EU) has
created economic and political uncertainty and changes proposed
by the Competition and Markets Authority have not led to the
changes needed, First Utility CFO Darren Braham told Reuters.
He said plans to postpone an IPO were also influenced by the
fact the company is in no hurry to raise cash.
"We don't need to raise any money at the moment. We have
enough cash to grow in Germany," he said.
The company plans to expand in Germany, where it has started
supplying electricity and gas under the "Shell Energy" brand and
aims to reach 50,000 customers there by the end of the year.
As part of its drive to offer more services, it will launch
broadband this month in partnership with telecoms company Talk
Talk, a strategy being pursued by Big Six supplier SSE
and smaller firms such as Utility Warehouse.
"We will launch broadband later this month in partnership
with Talk Talk. It's a wholesale agreement where we're using
their network to provide broadband services to our customers,"
First Utility also announced a reshuffle of its board
following its decision to postpone its IPO.
Non-executive director and telecoms expert Thomas Chambers
has replaced John Roberts as chairman while non-executive
directors Pieter Knook and Eva Eisenschimmel will also leave.
(Reporting by Karolin Schaps; editing by David Clarke)