AIM-listed company warms up with acquisition to create £15m firm

AIM-LISTED Aggregated Micro Power Holdings has acquired a York-based boiler supplier in a £5.5m deal.

PEL, a wood pellet supplier for commercial, will add to the company’s growing wood fuels division which has helped increased turnover for the company to £3.5m in the half year to 31 March 2016 at AMP, from £93,000 in the same period last year.

AMP said it was confident that group revenues will exceed £15m in the 12 months to 31 March 2017 following the acquisition.

AMP specialises in the sale of wood fuels and the development of distributed energy projects. The acquisition of PEL, the fuels division of Malton’s Patchwork Energy, is its fourth in the sector.

It follows on from AMPs acquisitions of Midlands Wood Fuel in August 2016 and the acquisition of the Mi-Generation customer base in September 2016 and the acquisition of Forest Fuels Limited in March 2016.

Richard Burrell, chief executive of Aggregated Micro Power Holdings plc, said: “With the acquisition of PEL, we have transformed Forest Fuels into being one of the leading suppliers of wood fuels in the UK and combined with our ability to finance and maintain biomass boilers we are becoming one of the leading players in the biomass heat sector which means in the year to 31 March 2017 we should achieve in excess of £15m of group turnover.

“On 14 December 2016, the Government announced a favorable outcome to its consultation on the Renewable Heat Incentive through to 2021 which supports AMP’s strategy of developing larger biomass installations with commercial heat users.

“AMP’s growing pipeline of project developments should continue to generate upfront development fees as well as deferred development fees in subsequent years and hence we look forward to the future with confidence.”

Freeths provided legal advice to the shareholders of Patchwork.

Dahren Naidoo, corporate partner of Freeths’ Leeds office said: “We are delighted to have advised on this local transaction in a fast evolving sector, and demonstrates our Yorkshire offices’ continued commitment to supporting owner managed businesses in processes such as these.”