VPhase half year turnover grows 326% but it will miss 2012 target
ENERGY saving device manufacturer VPhase has announced half year turnover growth of 326% to £657,000 – close to 50% higher than its full year turnover in 2011, driven by its focus on the social housing sector.
Despite this progress, negotiations for a number of large contracts that the company said it would have hoped to have concluded by now have become “much more protracted than anticipated”, the company said in a trading statement.
As a result VPhase said it is unlikely that it will deliver the 11-fold year on year increase in turnover necessary to meet market expectations.
The AIM-listed company, based at Capenhurst, Cheshire, develops energy saving products for residential and commercial properties. It expects to see continued progress from the social housing sector, where it has seen substantial sales growth from around £50,000 to over £520,000 in the first half of this year.
It also anticipates increased demand from export markets and said an Australian contract announced in March has already delivered sales that are three times higher than the minimum commitment required for the period to September 2012.
Rick Smith, chief executive of VPhase, said: “Underlying growth in the business is excellent although we are disappointed not yet to have the benefit of one of the large contracts we are currently negotiating.
“Cash at the end of the half year to June 30, was £1.350,000 and the board is confident that it has access to sufficient funds for current working capital requirements and to fund the growth anticipated when these contracts are eventually delivered.”
