Bglobal’s expected growth continues to be delayed.
The smart metering firm says that although it has a strong order book the installation of those orders is slower than anticipated. The company’s utility customers remain wary of rolling out smart meters prior to the publishing of the government’s Energy White Paper. The government announced it will mandate smart meters for what is described as “medium size customers” in the business market at the end of April. This should come into force at the beginning of 2009. It is likely that small businesses will be included in the future.
Bglobal has installed 16,000 meters in the year to March 2008, which more than doubles its installed base to 29,000. Last year it was estimated that Bglobal needs to install 4,000 meters each month in order to move into profit so it is still a long way from that milestone.
Revenues forecasts for last year were originally £14m, then they were cut to £5.4m. The final outcome will be a lot less than that and the loss will be much more than £2.5m.
Bglobal had net cash of £2.8m at the end of September 2007. If losses continue that cash pile will be substantially eroded.
The shares fell 5p to 29p. Bglobal joined Aim one year ago via a placing at 50p a share.
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