Bglobal has sold its electricity metering business to gas metering services provider Energy Assets Group for £2.3m and closing two other businesses.
The consideration includes £200,000 for the cash in the business, which supplies and installs smart electricity meters. Meter operating services are provided for 60,000 meters and collection and aggregation of energy data for 90,000 meters.
In the six months to September 2013, Bglobalís metering revenues fell from £2.03 million to £1.24 million, while the underlying operating loss rose from £489,000 to £624,000. Since then, cost savings have been made. Even so, Energy Assets believes the acquisition will be earnings enhancing within 12 months.
This disposal is just one of a range of actions that should leave Bglobal in a much stronger position.
Earlier this year, Bglobal had deferred repayment of a £950,000 loan, plus interest, from Synergy Capital, which is in liquidation. Bglobal should have paid £350,000 by now with two further monthly payments of £50,000 before the remaining amount is paid on 11 July. Up until that date the loan can be converted into Bglobal shares at 17p each. Bglobal can repay the loan early with 30 daysí notice, although Synergy can choose to convert instead but at a share price of 6.88p this is unlikely. The cash raised from the disposal will enable the loan to be repaid.
Cash will also be required for the closure of energy management business Bsmart Energy Solutions and Nutech Training, both of which have been losing money. There were no buyers for these businesses.
Bglobal will be left with the Utiligroup software business. Interim revenues were 63 per cent higher at £2.97 million, of which £2.38 million were recurring revenues, while the profit contribution improved from £143,000 to £359,000.
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