Smart meter installer Bglobal is in a good position to perform better than in the year to March 2009.
The increase in revenues from £4.5m to £6.64m in the year to March 2009 was slightly higher than expected but the rise in loss from £3.47m to £4.28m was as expected. Recurring revenues increased 77% to £970,000.
There are more than 120,000 meter installations in the order book, which is more than Bglobal has installed in its history. The recently secured funding through Barclays will help to push up the rate of installations.
Net debt was £473,000 at the end of March 2009. There was a cash outflow from operations of £3.32m, which was more than Bglobal raised in share issues during the year. The cash position has improved since March 2009.
House broker Charles Stanley believes that Bglobal can break even this year. Bglobal has tended to disappoint and undershoot forecasts in the past. It is important that it shows that it can at least get near to this forecast. A profit of £4.5m is forecast for the year to March 2011 but investors will not be comfortable with this until Bglobal shows that it can achieve this year’s forecast. The rollout for npower will help. Smart meters are now mandatory in the medium industrial and commercial markets.
Shares in Bglobal fell 1.75p to 23.5p each, which values the company at £17.4m. The shares have still more than doubled over the past month.
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