Aggregated Micro Power Holdings boosts portfolio with two acquisition deals

AIM-listed Aggregated Micro Power Holdings said it has made two further acquisition deals in the wood fuels sector as it posted a wider pre-tax loss for 2015, according to media reports.

The company, which sells wood fuels and develops energy projects, said it has proposed the acquisition of Midlands Wood Fuel, a wood fuel supplier, and the customer base of Mi-Generation, a UK-based biomass boilers and heating pellets supplier, London South East website reported.

It will acquire Midlands Wood Fuel for a total of £2.3 million ($3.05m), including the repayment of debt. The deal will be half-funded by cash and half by the issue of convertible loan notes. Mi-Generation, meanwhile, will be acquired for up to £750,000 in cash.

These will add to UK wood fuel supplier Forest Fuels, which Aggregated Micro acquired in March this year, and which delivered 20% year-on-year revenue growth in 2015, London South East reported.

The moves came as Aggregated Micro said it made a pre-tax loss of £7.2 million in 2015, compared to £6.0 million in 2014, mainly due to losses incurred from exiting its gasification business. Revenue rose to £1.1 million, four-times the £253,000 made a year earlier, mainly due to development fees received on biomass boiler projects.