News blog
Active Energy Group
- BY: Andrew Hore |
- POSTED: 09/02/2012 |
Biomass and energy efficiency products supplier Active Energy Group says that the performance of its UK activities is so poor it has decided to close them in order to conserve cash.
The revenue visibility of its voltage optimisation business is disappointing. Although the company’s figures for 2011 are in line with expectations, since the beginning of this year greater competition in the voltage optimisation market and lengthening sales cycles mean that trading has deteriorated in the energy efficiency business. The Redline Engineering Services business is also disappointing and it has failed to win any significant contracts since it was acquired. Redline is also a drain on cash.
There is £850,000 of cash in the balance sheet. There will be a large non-cash, goodwill write-off against the value of the businesses closed.
This news follows the departure of executive director Christopher Foster, who built up the group. As part of his agreement, Foster received 743,266 shares in lieu of salary between May 2011 and January 2012. Foster owns 4.7% of Active Energy.
Active Energy will focus on its east European biomass business acquired in November 2011. Bioenerho-Leader, which supplies biomass feedstock to power generation plants, was acquired for £3m in shares - 40m shares at 7.5p each.
At 2p a share, down 0.88p, Active Energy is valued at £4.73m. Active Energy raised £1.8m at 2.75p a share last year.
Earlier this month, Nicholas Barham increased his stake in Active Energy to 9.15%.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJanuary2012_28.pdf
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|