Product supplier blames slow uptake of government鈥檚 renewable heat subsidy scheme for sale
Construction products firm SIG has sold its renewable energy business for 拢1 after 鈥渟low uptake鈥� of the government鈥檚 renewable heat subsidy scheme.
In a statement to the City this morning, the firm said it had sold its 51% stake in Ice Energy Technologies, which specialises in supplying and servicing ground and air source heat pumps, to the firm鈥檚 existing management for 拢1.
SIG said it would incur an exceptional charge of around 拢8m as a result of the sale, 拢3.3m of which had already been recognised in the firm鈥檚 results in the six months to 30 June 2014.
The deal could see SIG get an additional 拢5m from the buyers subject to the firm鈥檚 performance up to 31 March 2019.
SIG said Ice Energy Technologies had experienced 鈥渃hallenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government鈥檚 Renewable Heat Incentive (RHI) scheme鈥�, which pays people for the heat that they generate from renewable technologies.
The sale follows the disposal of SIG鈥檚 Green Deal assessor and installer business for 拢1 in April.
That was a move it said it had made because of a 鈥渓ack of traction鈥� in the flagship retrofit scheme鈥檚 first year.
It said that sale was likely to cost it around 拢13m in its 2014 accounts.
No comments yet