Smart meters supplier Bglobal has been hit by delays in the implementation of smart meters throughout its time on Aim and the latest six month period is another example of this.
The government has set 2014 as the date for the mass roll out of smart meters to the residential and small company markets and many of Bglobal’s customers in the commercial market are reducing their rate of installation of smart meters as a consequence. There are also questions about the specifications of smart meters.
Additional cost savings have had to be made. An initial £1m of annualised cost savings were made and this has been supplemented by an additional £1.5m. The savings will come through in the second half of the financial year.
Bglobal is still profitable in the six months to September 2011 but the profit is not as high as management would have hoped a year ago.
Bglobal is changing its strategy and trying to help a retailer to establish a new energy supplier. This will mean that it is no longer dependent on the main six energy suppliers.
On the plus side, Bglobal is still cash generative and has more than £3.5m in the bank.
At 7.75p a share, down 0.25p, Bglobal is valued at £8.24m.
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