(Sharecast News) - Energy storage technology company RedT Energy reported stable revenue from continuing operations for its first half on Friday at £0.2m, precisely in line with the same period last year.
The AIM-traded firm said it narrowed its trading loss to £3.8m for the six months ended 30 June, from £5.5m at the same time last year, as it cut its operating costs.
Its operating loss from continuing operations narrowed to £3.5m from £5.7m, which was net of the £0.6m profit on the disposal of the Camco USA business.
Free cash as at period end stood at £3.1m, slipping from £3.3m year-on-year, with the company maintaining nil loans and borrowings.
It also saw nil profit from discontinued operations, in line with the first half of last year.
On 25 July, RedT Energy announced that it had agreed to outline terms, via a non-binding memorandum of understanding, for a proposed merger with Avalon Battery Corporation.
The board said that to drive the growth and development of the enlarged group, provide working capital and take advantage of the "substantial opportunity" presented by the merger, the enlarged group was intending to raise at least £24m of new funds as part of the merger.
RedT said itself and Avalon had received "substantial" preliminary support for such a fundraising from a strong, new strategic investor that intended to make a cornerstone investment in the merged business, as well as from existing institutional investors in RedT and both existing and certain proposed new investors in Avalon.
The outline terms incorporated some interim financing to fund the business, and additional costs associated with the merger process, while it would be underway.
It was expected that the merger and the fundraising would be inter-conditional, and complete at the same time, the board explained.
On the operational front, RedT Energy said that during its first half it focussed on its near-term pipeline, cutting costs and other expenditure where possible.
"The global energy storage market is continuing its rapid growth as our energy system progresses strongly towards widespread decarbonisation," said RedT Energy executive chairman Neil O'Brien.
"I am highly optimistic about the growing role our products will play in the inevitable global energy transition and retain my confidence in the redT team's ability to deliver shareholder value."
O'Brien said it was his "strong" belief that the proposed merger with Avalon and accompanying fundraise, if successful, would create a "strong and financially robust" company that would become a leader in the vanadium redox flow sector, and could compete effectively in one of the world's fastest growing markets.
"I would like to thank our shareholders for their patience and support throughout the strategic review process to date and I look forward to providing further news on progress soon."
26 Apr 2016 09:19