Delayed government decisions about how to tackle the installation of smart metering have delayed Bglobal’s move into profit.
Revenues more than trebled to £2.15m in the six months to September 2007 but the loss increased from £934,000 to £1.6m as the company geared up for greater volumes than it achieved.
Bglobal needs to install 4,000 meters a month in order to move into profit. In September it installed 1,353. There are 12,500 meters in stock with another 12,000 being delivered early in 2008. Management does expect volumes to increase because of new contracts with Bizz Energy, Spirit Group, Ladbrokes and Northumbrian Water but the real increase in volumes will come when the government sorts out what its policy is going to be. Hopefully, a decision will be announced early in 2008 but there may be more consultation to come after that.
Six months ago Charles Stanley forecast full year revenues of £14m but because of the delays by the government that has been cut to £5.4m. That would lead to a full year loss of around £2.5m. Management believes that Bglobal could be profitable on a monthly basis by the end of the period.
The shares rose 0.5p to 34.5p.
© 2022 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.