Losses widen at VPhase
ENERGY saving products company VPhase saw its losses widen to £727,000 on turnover of £121,000 in the six months to June 30 and said that its full-year results would be impacted by a slow start to the year.
The Manchester-based firm’s new chairman, Vanda Murray, admitted that progress at the firm had been slower than anticipated, but added that the “rate of commercial progress in VPhase has accelerated significantly” in recent months.
Sales in the period doubled from last year’s figure of £60,000, and Murray said that with a new board and a new commercial strategy in place, the firm is “confident that the recent improvement in sales performance will continue”.
The firm has promoted its chief financial officer Rick Smith to chief executive, with current chief executive Lee Juby stepping down from the firm with immediate effect.
The strategy includes boosting product awareness through TV and magazine coverage of the product and through targeted advertising to the electricians’ trade.
It has also worked on its pricing so that the voltage optimisation devices it installs should cost customers no more than £250 when fitted alongside a new consumer unit.
The company is also looking to increase its presence in the social housing sector following a successful trial with Manchester-based Great Places Housing.
“VPhase is in the final stage of negotiating a number of framework agreements with leading power utilities and a large outsourcing company that provides heating and renewable energy in the UK. Successful negotiation of these agreements would be a substantial step toward the Company being able to reach break even and profitability,” said Murray.
Vphase’s parent Energetix Group, which also runs the companies Pnu Power and Genlec, said turnover had increased by 8% to £130,000 but pre-tax losses widened to £2.4m from £1.9m.
