SIMEC Atlantis Energy Ltd on Wednesday said its loss narrowed but its revenue was down in its annual results, with the company saying it was in a ‘strong position’.

SIMEC Atlantis Energy is a Edinburgh-based energy company focused on tidal energy.

The company said its pretax loss in 2022 was £11.1 million, down from £74.1 million the prior year.

This was due to a £2.0 million reversal of a £45.3 million impairment in the Uskmouth sustainable energy park valuation that the company recognised in 2021. This fall in pretax loss was also helped by a £7.4 million reduction in depreciation and amortization.

Revenue fell 48% to £3.9 million, from £7.5 million. SIMEC Atlantis said this reflected the completion of a Japanese consulting contract in 2021, and the impact of a sale of Green Highland Renewables in 2021.

Total expenses for the year were down 30% at £11.6 million, from £16.6 million in 2021, reflecting the completion of restructuring in 2022.

Chief Executive Officer Graham Reid said: ‘The business has made significant progress since the beginning of 2022, and I am incredibly proud to have led the committed and dedicated team who delivered this change, ensuring that we are in a strong position to deliver an exciting future for our company and our shareholders.

The company said its four strategic priorities were: streamlining the business, reducing costs and improving efficiency, disposing of non-core businesses, and maximising returns on Uskmouth and MeyGen assets.

Shares in SIMEC Atlantis Energy were up 22% at 1.16 pence in London on Wednesday afternoon.

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