22 Dec 2009 07:00
| Press Release | 22 December 2009 |
VPhase plc
("VPhase" or "the Group")
Pre-Close Trading Update
VPhase plc (AIM:VPHA), a leading developer of energy-saving products for residential and commercial properties, today issues the following pre-close trading update for the year ending 31 December 2009.
The Group has now successfully completed all of the necessary development and CE certification for its product and initial sales have commenced. The time taken to achieve certification has, however, led to delays in the timing of sales.
The Group's tight financial control has resulted in the expected loss for the year being approximately £300,000 lower than expectations. In addition, this careful cost control means that the Group finished the year with cash reserves in excess of £1.7 million.
With a CE-marked product now in place, VPhase has been active in recruiting its initial sales and marketing team and has implemented a number of sales initiatives. These include: an installation and sales training programme for electrical contractors, organised in conjunction with one of the trade associations and key electrical distributors; demonstrations and trials with social housing associations; and direct sales to end-users via the internet and a dedicated order hotline. On the utility front, Scottish and Southern Energy has installed VPhase units in about 30 of its customers' homes, the remaining 20 to be installed in the new year, as part of the UK Government's Carbon Emissions Reduction Target (CERT) trial, and British Gas has initiated its commercial sales trials.
All these activities are expected to lead to growing sales volumes in 2010. Further announcements in relation to these trials will be made in due course.
Furthermore, VPhase has received a letter of intent from a Northwest based social housing provider indicating that they will carry out a field trial with VPhase commencing in the New Year. The trial will look at ease of installation plus energy and carbon savings delivered. This social housing provider currently provides over 15,000 high-quality, affordable homes in 30 council areas across Northwest England.
Lee Juby, CEO of VPhase plc, commented: "The Group has been focused on establishing sales channels and expanding its market reach during 2009. We are pleased that, with the achievement of CE certification in the summer and the ramp-up of our marketing efforts, our pipeline is converting into orders. The Board is confident that the Group will achieve increasing sales as it enters into 2010."
- Ends -
For further information:
| VPhase plc | |
| Adrian Hutchings, Executive Chairman | Tel:+44 (0) 151 348 2100 |
| Dr Lee Juby, Chief Executive Officer | +44 (0) 151 348 2100 |
| Richard Smith, Chief Financial Officer | +44 (0) 151 348 2116 |
| www.vphaseplc.com |
| Ambrian Partners Limited | Tel: +44 (0) 20 7634 4700 |
| Andrew Craig/Ben Wright, NOMAD | |
| Shaun Whyte, Corporate Broking | www.ambrian.com |
Media enquiries
| Abchurch Communications Limited | +44 (0) 20 7398 7712 |
| Justin Heath / Monique Tsang | |
| monique.tsang@abchurch-group.com | www.abchurch-group.com |
About VPhase plc
VPhase plc provides a product that reduces the energy consumption of many domestic electrical appliances.
The Company has developed a Smart Voltage Management product designed to be attached to the consumer unit (fuse box) in order to control the incoming voltage for selected circuits to a target set point of 220 volts. This is slightly higher than the minimum design point for electrical items in Europe, thereby ensuring that electrical appliances in the home operate closer to the voltage condition for which they were designed.
Tests by VPhase have demonstrated that the product can typically save 10% of the electricity across a range of domestic products including fridges, freezers, central heating pumps, televisions and other items, even 'energy-saving' light bulbs. This should equate to savings for the typical homeowner of £50 per annum.
In addition, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs, in particular, have demonstrated at least two times longer life when on a circuit managed by the voltage management product as compared to those without the product.
www.vphaseplc.com
Energetix Group plc
VPhase is a subsidiary of Energetix Group plc. Energetix (AIM:EGX) is a group of companies with three cost-effective products (Pnu Power, Genlec and VPhase) to meet the growing demand for alternative energy. With a focus on distributed generation, energy storage and energy efficiency, the Energetix businesses are:
Energetix (Pnu) Power Limited - compressed air back-up power
Energetix Genlec Limited - distributed generation in the home
VPhase plc - domestic energy efficiency
Energetix and all its subsidiaries are based near Chester, NW England.
www.energetixgroup.com