Bglobal to sell metering arm
SMART meter technology firm Bglobal is to cut costs at its head office in Darwen and sell its metering business following an internal review.
In a statement the business said it did not plan to sell its Utiligroup software arm, or the company as a whole.
The KPMG-led review was conducted after founder and executive chairman Peter Kennedy was ousted by investors amid concerns over the AIM-listed firm’s strategy and a 40% plunge in the group’s share price this year. Mr Kennedy was also at odds with chief executive Tim Jackson-Smith and other key stakeholders.
The company said: “The board is implementing a number of actions in order to improve the performance of the business and enhance shareholder value. These actions include taking significant cost out of Bglobal’s head office, re-focusing the business on its customers and implementing strict cash management procedures. In addition, the board has decided to explore a potential sale of its metering business, Bglobal Metering.”
John Grant, who was installed as chairman following the dismissal of Mr Kennedy, said: “Since 15 August, I, the board, the management team and employees of the company have – with the assistance of KPMG – been working hard to review the strategic direction of the company.
“As a result, we have already taken a number of steps to improve the current performance of Bglobal, and have decided to explore whether shareholder value can be further maximised through the sale of the metering business as we believe that a third party may be better placed to take this business to the next phase of its development. I would like to thank the customers and employees of the company for their support during this review period.”
Last month Mr Kennedy, who still holds 23.6% of the shares, launched a bid to have chief executive Tim Jackson-Smith and non-executive director James Newman removed. The company has said there was “no justification” for such a move but is legally obliged to convene a shareholder meeting.
