Green tech firm slips into the red
PROBLEMS within the energy from waste division of Salford-based engineering giant Ener-G meant that the company declared a pre-tax loss of £5.4m in the year to March 31 (2010: £4.5m profit).
Revenues at the company, which is a specialist in green technology, also dropped back by 6% to £122.4m.
Ener-G said that its results were “in line with expectations” during a year in which it said it had faced a difficult global economic climate and consolidation within its own business.
Notes to the accounts state that it faced “a number of operational issues” within its energy from waste division, which it added had now been resolved. However, coupled with a decision to write down the carrying value of some assets meant that the division declared an operating loss of £11.5m during the year.
The group’s managing director, Derek Duffill, argued that the group’s underlying profitability remained string, though and that through continued investment in new products and greater international expansion its prospects for 2012 are improved.
He said: “The company’s financial performance compared to 2010 was distorted by our energy from waste division, which engages in £40 million-plus projects, with a major Norwegian commission swelling the results last year and delays in major UK projects negatively impacting this year’s figures.
“After adjusting for the results from this division, underlying group profit increased by 4% to £9.1 million.
He continued: “Our expansion into the US market has started well with us securing a $6.5 million energy services contract with Saint Peter’s College in New Jersey. This marks the launch of our new ENER-G Group Inc. business in the USA, with many opportunities in the pipeline both in the US and across the globe. Our renewables division is engaged in projects across Europe and has major contracts underway in South Africa and Mexico, while export of our combined heat and power units continues to grow.
“We anticipate significant growth for our new ENER-G Healthcare business following its appointment to a framework of approved contractors that will deliver major low carbon infrastructure improvements across the NHS estate.
“We have just launched a complete solar PV data management service to help funders unlock maximum returns on their investment, and are set to roll-out our new E-MAGINE building energy management system, which has been designed and developed by our in-house teams.”
During 2011, the group’s net debt reduced to £8.9m, from £9.5m a year earlier. The average number of staff working at the firm increased by 41 to 734.
