Biofuels blueprint for future says Viridas

IT may be reporting another year end loss but Viridas is still optimistic about a future in biofuels.

The Leeds-based company, which is listed on the Alternative Investment Market (AIM), confirmed that it was still committed to entering the biofuel market and that subject to fund-raising was planning to implement its strategy to purchase, plant and manage 250,000 hectares of jatropha plantation in Brazil.

Jatropha is being heralded as the next generation of alternative fuels stock, not only for its high oil yield, which is second only to palm oil, but also because it takes little out of the land.

It can also be used for secondary businesses such as making soap but because its seeds are highly poisonous it has been largely ignored by indigenous people.

In April Viridas announced it had formed a partnership with INEOS Enterprises – a portfolio of eight businesses – to develop the project further. INEOS aims to bring an outlet for jatropha oil through its strategy to become a leading European biodiesel supplier.

Stanley Wootliff, chairman of Viridas – previously called Caldwell Investments – said that the company had been working hard to exit its legacy businesses in an effort to focus on its intended diversification.

“It’s been a busy year for the company,” he said.

“We believe that such plantations will achieve full acceptance as the preferred biofuel feedstock by esterifiers and will secure our future position within the biodiesel supply chain.

“Following the strategic review of the group’s acitivities we have now ceased our activities in relation to garden furniture. Out baby buggy parasol business has continued in the current year but with its operations heavily scaled down.”

He continued: “Our German underwear business has continued to trade in line with expectations with reduced volumes of business. We are intending to close this end of the business down in October.”

Mr Wootliff said that the firm had also sold its Skelmersdale property. However, the company reported a pre-tax loss of £527,045 for the year ended February 29 compared to £217,527 for the same period the year before. Turnover was also down from £6.2m to £5.3m.

But Viridas’s chairman remains confident the company’s new direction was an exciting new opportunity.

“With the closure of its legacy businesses expected to be completed by the end of the current financial year much hard work has been put into the new blueprint for the group,” he said.

“Enthusiasm for the project is shared by all the directors and we look forward to reporting further progress.”