LONDON (Alliance News) - Cost management consultant Utilitywise PLC on Monday put itself up for sale, after not getting enough interest in a fundraise.
Shares were 62% lower on Monday morning at 2.14 pence each.
Utilitywise has begun a strategic review "to deliver maximum value for its shareholders", and this may include a sale.
"In the past two years the group has experienced a number of significant and unexpected challenges and legacy issues in its Enterprise division that have hampered the pace of transformation, with a consequential impact on the group's financial performance," said the company.
These issues include commission repayments to an energy supplier, weak industry processes which have been capitalised on by third-party intermediaries, and lower commission caps.
Utilitywise has made moves to find new revenue streams, including entering the micro small and medium enterprise market, but its needs to investment of around GBP10 million to do so.
Its lender is willing to refinance Utilitywise's GBP25 million facility it currently has, but only on the condition it secures finances from elsewhere.
The company has thus approached current and potential investors over an equity fundraise, but it has not received enough interest.
