Cogenpower Share News (CGP)

(ShareCast News) - Low-carbon technology energy company Cogenpower announced on Friday that it will withdraw from the gas and electricity retail business, operated through its wholly-owned subsidiary Cogenpower Gas and Power.The AIM-traded firm's strategy is focused on growing the Combined Heat and Power and District Heating (CHPDH) business, and further penetrating the global €30bn district heating market.Cogenpower's board said its profitable CHPDH business is centred around its Anaconda technology, and the withdrawal from gas and power will leave all of the division's resources available to further enhance the growth of the group's core CHPDH business."Following our IPO earlier this year, this is a positive step for Cogenpower," said founder and CEO Francesco Vallone/"The gas and electricity retail business was a legacy business and our withdrawal allows us to reposition the company around the Anaconda technology which is what will ultimately create value for our investors."Vallone said the board was also delighted to have secured better terms for its gas supply contract, which he said was an improvement on competitive rates typically available in the market."This step allows us to focus on developing our core CHPDH business and deploying our Anaconda artificial intelligence technology for the lucrative district heating markets we are targeting, including those in Italy and the UK."At the same time, Cogenpower posted its interim results for the six months to 30 June, with revenues of €3.1m, down from €3.8m.Revenues in the retail gas and electricity division were down €0.6m to €0.9m.Its CHPDH was continuing to be profitable, recording an 8% year-on-year growth of MWh sold, according to the board, though the group made a loss of €929,000 for the period after exceptional costs of €566,000 relating to the IPO.The adjusted Group loss of €363,000 was wider than the interim loss of €43,000 in 2015, after a charge of €182,000 for PLC costs.Cogenpower's balance sheet improved, however, as net current liabilities moved to €3.4m from €8.0m as at 31 December 2015.