Intelligent Energy up for sale as firm faces “uncertain outlook”

Intelligent Energy, the Loughborough-based energy tech company, has said it is trying to sell the business after slower than expected sales means it is looking at “an uncertain outlook”.

In a trading statement to the London Stock Exchange this morning, the firm sad it expects revenues to drop to around £21m this year – down from £92m last year, and that a deal to sell the business was by no means certain.

Despite the company cutting losses from £33.4m in 2015/16 to £17m in 2016/17, Intelligent Energy says it doesn’t have the money in the bank to fund the current cash burn from product sales alone.

In a statement this morning, the firm said: “Discussions with potential customers on trading related opportunities have been progressed, which, if they were secured, could offer funding to allow the Group to reach a free cash flow positive position. However, while promising and ongoing, such discussions have not to date translated to signed contracts. In consultation with advisers and significant shareholders the Board, in line with previous advice and indications, has concluded that that it is not viable for the Company to be able to access capital markets in a conventional manner.

“The Board has therefore already initiated a sale process for some or all of the businesses and/or assets held by the Company’s subsidiaries, which will include consultation with the principal holders of the Convertible Loan Notes who are also significant shareholders in the Company. The sale process has and continues to be managed on the Board’s behalf by Deloitte. It should be noted that constraints exist in relation to that sale process, including the security granted (as part of the refinancing of the Company in 2016) in favour of the holders of the Convertible Loan Notes.

“The Board will continue to review any other options available to the Company and the Group, whilst recognising the circumstances that the company faces. There can be no certainty over the outcome of the sale process, or of any other options that might be available to the company and the Group, and further announcements will be made as appropriate in due course.”

In November last year Intelligent Energy called off a £1.2bn deal to provide energy to over 27,400 telecom towers in India has fallen through after talks with funders collapsed. The firm also axed 200 jobs earlier last year.