16 Jan 2012 07:00
PRESS RELEASE
Camco International Limited
Sale of UK Advisory Business for £4.5m
(London, 16 January 2012)
Camco International Limited ("Camco"), a global developer of clean energy projects and solutions to reduce greenhouse gas emissions, is pleased to announce the sale of its UK advisory business, Camco Advisory Services Limited, to Baxi Partnership Limited.
The UK advisory business currently employs 58 staff and was purchased as part of the ESD transaction[1] in 2007. The business was successfully turned around from being loss making in 2009 to profitable in 2010 and 2011[2] with a net profit before tax in 2010 of £0.5m.
The sale follows a review by the Camco Board in which the UK advisory business was considered to be outside the Company's core business of clean energy project development and carbon. The cash raised as part of this transaction will be used to grow these businesses in its key geographic markets.
Following the sale, Camco, with its expert team of 126 staff remaining around the world will continue to build up its energy project development business across North America, Africa, and Asia, with an anticipated portfolio of energy projects of approximately £250m value to be built and invested in over the next 24 months. The group announced on 10 January 2012 that its North American Biogas project has commenced power generation and that further investment was made to secure grant funding for its next phase of biogas projects of approximately $50 million capital cost.
In addition to the growing energy projects business Camco continues to leverage value from its carbon portfolio particularly its post 2012 portfolio which currently stands at 39.9 million tonnes of in specie credits and 27.5 million tonnes of revenue share credits and its growing North American carbon portfolio.
Camco will continue its advisory business in Africa and leverage its expertise and presence to expand into carbon and energy projects under favourable regulation in that region. Camco will also continue to provide certain advisory services globally outside the UK in regions where it provides strategic benefit to the development of its core clean energy project and carbon businesses.
Total consideration for the sale of Camco Advisory Services Limited (UK) is £4.5m comprising an initial £3.25m paid on closing and £1.25m over the next two years through an earn-out structure. The business sold has a book value to the company of £2.1m.
Scott McGregor, Camco CEO said
"Camco has now transformed the business into a clean energy project development business alongside a carbon projects business. After a successful turnaround of the advisory business it made sense to put 100% of our efforts and resources into growing these core businesses in North America, Asia and Africa. This transaction allows the UK Advisory team to grow and expand independently and we wish them great success for the future, thank the team for their hard work and we look forward to collaborating on future projects"
[2] per unaudited 2011 management accounts
Camco International Scott McGregor, Chief Executive Officer Shirona Partem, Investor Relations | +44 (0) 207 121 6100 |
Singer Capital Markets (Camco Nominated Adviser and Broker)Jonathan Marren | +44 (0) 20 3205 7628 |
Kreab Gavin Anderson (Investor Relations Advisor) Ken Cronin | +44 (0) 207 074 1842 |
Citigate Dewe Rogerson (PR Advisor) Chris Gardner / Malcolm Robertson | +44 (0) 20 7638 9571 |
Notes to editors:
About Camco
Camco International Limited (Camco, AIM: CAO) is a global developer of clean energy projects and solutions to reduce greenhouse gas emissions with operations in the US, UK, China, Africa, Russia and SEA.
Camco has a 20-year track record in project development, technical delivery and policy development, working with local industry, multinational companies, governments and regulatory bodies.
The Carbon Project Development business has created one of the largest emission reductions portfolios and has structured ground breaking and innovative arrangements for the sale and delivery of emission reductions to compliance and voluntary buyers.
Camco's Clean Energy Project Development and Investment teams collaborate with industry, project developers, equipment providers and investor groups to create emissions-to-energy projects and maximise sustainable energy production across a range of industries; including agricultural methane, industrial energy efficiency, coal mine methane, municipal solid waste, biomass and landfill gas.
The Energy and Carbon Advisory teams provide strategic, commercial and technical expertise accrued over two decades to deliver low carbon energy and sustainable development solutions.
www.camcoglobal.com