Cogenpower is to withdraw from the gas and electricity retail business, operated through its wholly-owned subsidiary, Cogenpower Gas and Power s.r.
The decision was announced as the company reported revenues of €3.1 million for the six monhts to the end of JUne (1H 2015 €3.8 million) of which €1.8 million from CHPDH (combined heat and power plants with annexed district heating distribution networks).
Revenues in retail gas and electricity division down €0.6 million to €0.9 million,
The group said the CHPDH division, based on the Anaconda technology, continues to be profitable and recorded 8% year-on-year growth of MWh sold.
- Group loss of €929,000 after exceptional costs of €566,000 relating to the IPO
- Adjusted Group loss of €363,000 (1H 2015: €43,000) after charging €182,000 for PLC costs (1H 2015: nil)
- Balance sheet improvement as net current liabilities move from €8.0 million as at 31 December 2015 to €3.4 million
Chief executive Dr. Francesco Vallone said: "These results demonstrate a profitable, growing CHPDH division and a loss-making, declining G&P division. The Board has therefore concluded that the G&P retail business was no longer worth pursuing.
"We are now focused on growing our profitable CHPDH business and deploying our Anaconda artificial intelligence technology for the lucrative district heating markets, including those in Italy and the UK. We are delighted to have secured better terms for our gas supply contract, which we anticipate will bring a significant cost reduction to our core business over the next twelve months.
"Encouragingly, we are seeing a good level of interest in our technology from major organisations that have the potential to open new routes to market. We are excited about our growth potential and look to the future with confidence."