Green tech firm Vphase edges closer to administration

AIM-listed Vphase, which has developed a voltage optimisation device that helps householders cut their electricity bills, says it has moved closer to insolvency.

The firm, based near the Cheshire Oaks Designer Outlet near Ellesmere Port, has filed a notice of an intention to appoint an administration, amid a funding crisis.

In a statement to the stock market on Friday, Vphase said it has 10 days to raise new finance or it will appoint an administrator.

Shares in the firm, which says it has been impacted by delays and uncertainty over the Government’s Green Deal policy, were suspended on June 20, after shareholders refused to back a rights issue.

The company said: “While the board continues to pursue options to preserve the value of the company, including raising funds by way of debt or equity and the sale of the business or its assets, there remains no certainty that any funding option will materialise and if none becomes available in the next 10 days the appointment of an administrator will become effective.”

While its annual results for 2012 showed marked progress – revenues rose 213% to £1.4m – Vphase said sales this year had been slower than expected.

Progress in 2012 also saw distribution deals to sell the product in Australia, Cyprus, France, Belgium and Luxembourg.