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Business For Sale - Details


1MW Anaerobic Digestion Facility

Project Heat

 

OPPORTUNITY

An opportunity exists to purchase the business and assets of the business based in Dumfriesshire which was G59 accredited in December 2015, which is a combined heat and power facility with digestate drying.

The plant is regulated under a SEPA 'Waste Management Licensing (Scotland) Regulations 2011 Registration of Exempt Activity, Schedule 1 Paragraph 51'.

The business has achieved the following results:

Management Accounts

Filed Accounts

Period Ending

Year Ending

31/01/2019

31/01/2018

31/01/2017

31/01/2016

Turnover

898,369

671,990

572,825

161,859

Cost of Sales

(613,200)

(471,400)

(517,945)

(342,479)

Gross Profit

285,169

200,590

54,880

(180,620)

Administrative Expenses (non-exceptional)

(612,470)

(685,156)

(621,717)

(721,136)

Operating Loss (pre-exceptional items)

(327,301)

(484,566)

(566,837)

(901,756)

Exceptional Costs:

Unscheduled Maintenance & Repairs

(80,932)

(116,465)

O&M consultancy fees

(306,000)

-

Non-executive director fees

(10,000)

(10,833)

Management fees

(86,069)

(94,053)

Legal expenses

(1,461,141)

(54,602)

EBITDA

(2,271,443)

(760,519)

(566,837)

(901,756)

Interest, charges & depreciation

(640,332)

(367,118)

(89,986)

Net loss before Tax

(2,271,443)

(1,400,851)

(933,955)

(991,742)


The business has forecast that it will run out of working capital in the near future and, due to the financial position of the Company, it is anticipated that the purchase will be executed at the earliest opportunity and will be a sale of the business and assets as a going concern.

The business has historically under-performed as a consequence of commissioning issues.  In recent months operational improvements have been made, which the management believe will allow the plant to become operationally efficient.


ASSETS AVAILABLE FOR SALE

The business operates a low hazard 1MW anaerobic digester facility which processes farm plant feedstock generating biomethane that is converted to electricity and sold to the National Grid and has the benefit of FIT & RHI agreements.

The business operates from a leasehold site in Dumfriesshire, Scotland under a 22 year commercial property lease expiring April 2037.  The business has a feedstock agreement.

All plant and machinery assets installed and operational on the site.

 

DEADLINE FOR OFFERS

Due to the urgency of this matter, all offers should be sent to Michael Booth by close of business on 23rd April 2019.

Requests for any further information should be made to Michael Booth.

All offers should be supported by proof of funding and no late offers will be accepted.

A purchaser must be able to complete immediately.

IMPORTANT
This briefing sheet contains information supplied by company personnel. LSH provides no warranties or indemnities in respect of such information. All interested parties must rely on their own investigations when reviewing this opportunity.


567 (01/04/2019)

Michael Booth

Director

CONTACT

0113 887 6766

07701 315380

mbooth@lsh.co.uk