VPhase becomes an investment shell
VPHASE, the Cheshire company which developed a device to help householders save electricity, is returning as an investment shell.
The company went into administration last year after suffering funding problems, and later reached an agreement with creditors through a company voluntary arrangement (CVA).
Now it has raised £150,000 from a placing with Henderson Global Investors and will use the money to pay creditors and as working capital as it looks for investment opportunities.
Chief executive Rick Smith is stepping down to make way for non-executives Clive Carver and Colin Hutchinson.
The AIM-listed firm’s main product reduced and regulated incoming power and claimed to shave 10% off bills.
In his final statement, covering the six months to June, Mr Smith said the company was hit by two green measures, the Government’s Green Deal and the Energy Companies Obligation (ECO).
The ECO places legal obligations on the larger energy suppliers to deliver energy efficiency measures to domestic energy users. It operates alongside the Green Deal which helps people make energy efficiency improvements by allowing them to pay the costs through their energy bills rather than upfront.
Mr Smith said these measures reduced demand for his voltage optimisation product and sales were further hit by the Government’s welfare reforms which have reduced budgets for social landlords, one of VPhase’s biggest customers.
In the six months to the end of June the company made a pre-tax loss of £2.7m on revenues of £420,000.
