Member Article

Bglobal may sell-off metering business

Lancashire energy services company Bglobal is considering putting its metering business up for sale following a strategic review of its business.

The Darwen-based firm is looking to take “significant costs” out of its head office, resulting from the review to enhance value for shareholders.

Following detailed consultation and a report from KPMG, the company re-focusing the business on its customers and implementing strict cash management procedures.

In a statement, the firm said: “The Board has decided to explore a potential sale of its metering business, B Global Metering Limited”.

Bglobal chairman John Grant, said “Since 15 August 2013, I, the Board, the management team and employees of the Company have – with the assistance of KPMG LLP – been working hard to review the strategic direction of the Company.

“As a result, we have already taken a number of steps to improve the current performance of Bglobal, and have decided to explore whether shareholder value can be further maximised through the sale of the metering business as we believe that a third party may be better placed to take this business to the next phase of its development. I would like to thank the customers and employees of the Company for their support during this review period.”

The review has also shown that there is considerable value in the remaining businesses in Bglobal’s group and strong demand for their services and the Board will focus effort on developing these businesses further.

The Board does not intend to sell its software services business, Utiligroup Limited at this stage and has concluded that it will not be seeking an offer for the Company as a whole. As a result, the Company is no longer in an “offer period” for the purposes of the Takeover Code.

The Board plans to further update shareholders when it announces its interim results in early December.

This was posted in Bdaily's Members' News section by Simon Malia .