VPhase faces critcal year

VPhase, the AIM-listed developer of energy saving devices for the home and small commercial premises has hailed a year of progress after posting a slight increase in losses.

The company, which was spun-out of Energetix plc in 2007, said this year would be a “critical” year as it brings its product to market. IT is already working with Southern and Scottish Energy on a trail project, funded by the utility giant.

Chairman Adrian Hutchings said: “VPhase has made significant progress in 2008 as we formally launched our first product, began partnering with two of the UK’s largest utilities and maintained our strong cash position by raising £3.5m via a placing while exercising strong cash management.  

 “The board of VPhase sees 2009 as the critical year of commercialisation as we work with our utility partners to trial and launch our product.”

As well as SSE, VPhase, which is based in Capenhurst near Chester, is working with Centrica. Its device, called VX1 was launched at the construction show Interbuild last October.

Mr Hutchings said that despite the recession, there was still a clear need for energy-saving products.

“Governments across the world are looking to stimulate their economies with one of the key drivers being their policies and investment in clean and alternative energy products.

“Indeed, Barack Obama has just announced a plan to help create five million new jobs by strategically investing $150 billion over the next 10 years to act as a catalyst for private efforts to build a clean energy future. 
Furthermore, the demand for energy efficiency devices is gaining growing global
support with governments in the UK, USA, and Europe.”

During the year to December 31 2008 the group made a loss of £769,000, up from £727,000, lower than it had expected.

After the rights issue last May, its year-end cash balance was £3.2m.