RE: An RNS due soon19 Feb 2024 10:22
Sitandwatch
“ the energy management division was sold to flogas, leaving the original energy services business.”
And being paid £30m+. That is £5m more cash than current MCAP!!
“ I suspect that the BoDs will look to sell this off too as the buy and build strategy employed to scale the business hasn't worked.”
Well, the Energy Services business grew turnover by 87% in the past 12 months, but was constrained, that is to say held back, by the lack of working capital, largely funded by £8m borrowing. Energy Services Division reported revenues of £19.5 million and Adj EBITDA* of £2.3 million, up 87% and 131% respectively on FY 2022, demonstrating significant and growing demand. Expect revenues in the next 12 months to be at least 87% up again, with the increased EBITDA being further enhanced by the £1m that they will save in interest costs.
So, no, it hasn’t failed. Far from it.
“they don't have deep enough pockets to fight an organic growth battle against the lead players in their market.”
They have a usp. They will be the first choice of eco warrior headmasters.
“I could be way off pace however, who knows with this stick”
If you mean, completely wrong, then we can agree on that.