Two directors have bought £67,000 worth of shares in Energetix Group the day after the energy efficient products developer released its interim figures.
Chief executive Adrian Hutchings bought 69,500 shares at 28.5p each, taking his stake to 17.4%, while chairman Clare Spottiswoode acquired 167,000 shares at the same price - the first shares she has bought since taking up the role.
Energetix has two main businesses: microCHP boiler developer Genlec and back-up power generator Pnu Power.
Genlec intends to start supplying its Kingston boiler in the second half. The Kingston uses gas to make electricity in the home. It is made up of a boiler with a reverse refrigeration circuit and it also produces heat. Standard parts are used and the design has been simplified.
The Kingston may be priced at a premium to ordinary boilers of £600 or less. A buyer could save £200 a year on electricity charges and can also generate income from feed-in tariffs.
Energetix will charge a field trial rate for at least 50 Kingstons, which will provide performance data that can be used to show reliability and how much electricity can be generated.
Pnu Power is already selling its compressed air-based back-up power system and it is gaining repeat orders from National Grid with more to come in the future. There is scope to sell to other grid operators outside of the UK. Data centres are a market that is only just being addressed but it could be a significant generator of revenues.
The first installation was in 2008 and there have been no failures when back-up power is required.
Sales are growing more slowly than hoped at voltage optimisation products developer VPhase, where Energetix owns 42.8%, but new deals should help them to increase over the next year or more. Tesco will be selling the VX1 online. It will be supplied through EnactEnergy, which will install the VX1 as part of the package on offer to consumers. Solar installations provide a good source of demand in the short-term and social housing operators are a longer-term customer area.
VPhase increased sales of its VX1 product from £72,000 to £156,000 in the six months to June 2011. Overall revenues rose from £121,000 to £201,000, while the loss increased from £727,000 to £1.08m due to higher marketing spending.
VPhase is no longer consolidated in Energetix’s figures but the value of the investment is adjusted in the balance sheet for its share of the loss.
Energetix’s revenues remain modest at £100,000, up from £12,000 in the first half of 2010. The loss dipped from £1.75m to £1.66m.
There was a £1.19m cash outflow in the first half of 2011. Capitalised development spending increased from £392,000 to £560,000.
There was £1.96m in the bank at the end of June 2011. Borrowings totalled £1.83m. Increasing revenues should help to reduce the cash outflow so the cash should last into 2012.
At 27.5p a share, Energetix is valued at £17.9m.
Download the September 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFSeptember2011_24.pdf
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