Energy Action launches ‘strategic review’; puts itself up for sale
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Energy manager Energy Action is putting itself up for sale, saying current energy market conditions make this the right time to look for a buyer.
The company (ASX:EAX) did not go into specifically what market conditions those would be.
Demand for energy management services — helping businesses manage utility bills and getting better deals — is rising, but the market is still in its infancy.
Few companies are making a profit, and only one of six listed companies in the sector has breached the $100 million market cap threshold — Buddy earlier in 2018, before its share price fell back from from 40c to under 15c.
Energy Action has engaged PricewaterhouseCoopers to look for a buyer, or in corporate speak: “conduct a review of the various strategic options available to the Company to maximise value for its shareholders”.
The company has reduced debt by $3 million in fiscal 2018. Loans stood at $7.8 million as at the end of December.
Energy Action hasn’t yet released its full-year results, but its half-year results showed a profit of $1 million and cash of $810,000.
Stockhead is seeking comment from Energy Action.
The news left Energy Action’s share price — which has underperformed since February inspite of a $1.2 million solar panel contract win in May — unmoved at 74c.
Energy Action has been listed since 2011 but peaked in 2013 and has never regained the lost ground.
Its shares hit an all-time low in May of 61c.