25 September 2012 – interim results/fund raising
The energy consultancy has produced disappointing interim results for the six months to 30 June with pre-tax profits falling to £0.7m (2011: £2.2m) on slightly higher revenues of £27.5m (2011: £26.0m). The first half has seen challenging market conditions although the group has taken action to reduce costs accordingly. The second half is expected to show a significant improvement but the full year result will still be below market expectations. The directors are confident that 2013 will see a significant recovery though and long term prospects remain sound. The group also intends to raise £1.35m from existing institutional shareholders to provide additional working capital. Following today’s sell-off in the shares we reduce our recommendation to HOLD.