Jersey-based energy storage group Redt Energy PLC (LON: RED) announced that losses had widened on-year and as such, the Company booked a deepened annual loss.
The losses have been attributed to a swell in expenses, which more than offset its rise in revenue.
It described its strategic review process as progressing well since March, with ongoing discussions taking place with a number of potential collaborators.
“redT energy plc (AIM:RED), the energy storage solutions company announces today that it is commencing a Strategic Review to explore the options available to fund the business going forward. The Board has appointed VSA Capital as financial adviser to assist with the Strategic Review.” The Company said in a statement in March 2019.
“In order to fund the business during the Strategic Review the Company has conditionally raised £940,000 (before expenses) by way of a placing by VSA Capital of 47,000,000 new Ordinary Shares at a price of 2 pence per Ordinary Share to existing investors.”
Today’s update revealed that revenue for the full year rose to £4.2 million, up 87% on-year. Despite this, pre-tax losses for the year through December came to £12.4 million, deepening from £7.5 million on-year.
Elsewhere in the energy sector, there have been updates from; Pressure Technologies (LON: PRES), Petrofac (LON: PFC), and Eco Oil and Gas (LON: EGO) and Mayan Energy (LON: MYN) providing operations updates.
Redt Chairman Comments Today
At the end of the Company’s release to investors and press today, Redt Executive Chairman Neil O’Brien stated, “I have been impressed by the significant step forward we have made in the design and manufacturing processes of the latest Gen 3 units and remain optimistic about the Company and its people’s ability to succeed in a market that is forecast to drive fundamental, positive change in our energy system in the years to come.”
“Right now, our immediate focus continues to be the satisfactory conclusion of the Strategic Review process, which is essential to provide the funding and support the Company requires in the near-term to succeed in this space. Progress to date with the Strategic Review has been encouraging and we look forward to updating shareholders further as soon as it is practical to do so.”
“Alongside the Strategic Review, which is being led by the Board, the executive team remain focussed on the manufacture, delivery and operation of our existing projects and securing further business from our sales opportunity pipeline. This work will support the widespread roll-out of our 3rd Generation product, which is the foundation for the Company to become cash generative in the future.”
“In closing, I would like to thank our highly dedicated staff who have faced and overcome the significant challenges of the last 12 months, and my Board colleagues for their continuing support and contribution to the ongoing activities of the Strategic Review process. I would like to extend my thanks also to our shareholders for their continuing support in the face of challenging circumstances, and to our customers for trusting in us to deliver high-quality energy storage infrastructure solutions for their projects.”
Share price update
Redt Energy’s share price dipped sharply in early morning trading on Tuesday, and after a slight recovery, they are now down 16.8% or 0.21p on market opening price, at 1.04p per share 25/06/19 11:45 GMT.