News blog

VPhase

• BY: Andrew Hore |
• POSTED: 05/06/2013 |

Energy efficiency products developer VPhase admits that it needs to raise more cash and the share price has halved to below the proposed placing price.

At 0.23p a share, VPhase is valued at £3.12m. The proposed placing price is 0.25p a share. If the cash is not raised then VPhase will not be able to continue trading.

There was a £1.9m cash outflow in 2012 as VPhase invested in new versions of its product. Net cash was £305,000 at the end of 2012 and a placing raised £519,000 at 0.5p a share after the year end. There is an international factoring facility based on 50% of the level of debtors up to £500,000.

VPhase remains frustrated by what it believes is a lack of government backing for its energy saving voltage optimisation technology. It is not just the UK because sales have also been disappointing in Australia.

In 2012, VPhase increased its revenues from £440,000 to £1.38m, while the loss fell from £1.97m to £1.66m. Social housing sales are growing. International agreements will help sales to grow further with an initial 1,100 unit order received from the French distributor.

Trading is weaker than expected so far in 2013 as UK and Australian sales continue to be disappointing. Back in March, house broker Panmure Gordon trimmed its unit sales forecast to around 20,000 in 2013 and expected a lower loss this year. This is likely to change.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf