22nd Nov 2013 09:06
LONDON (Alliance News) - Environmental Recycling Technologies PLC Friday saw its shares drop sharply after its UK licensee, 2K Manufacturing Ltd, went into administration.
2K Manufacturing produced flat sheet product Ecosheet under licence in the UK using Environmental Recycling's technology .
Environmental Recycling reminded investors that last year it had clawed back the international licence for its Powder Impression Moulding - the process which converts mixed waste plastics into commercially viable products - from 2K and restructured the debt owed to it by 2K.
It has other licensees in Europe, North America, the Middle East and Africa using its Powder Impression Moulding to produce items like wet room floor formers, barge covers and anti-ballistic products.
"Since (the clawback), ERT has received an immaterial level of licence income from 2K. Importantly, ERT made a full provision for outstanding payment due from 2K of GBP1.61 million in its interim results for the period to 30 June 2013," it added.
It said it estimates that 2K had sold less that 30,000 units of Ecosheet in 2012.
"ERT is closely monitoring the situation and will work with the administrators to facilitate a solution that is in the best interest of its shareholders and to maintain the production of Ecosheet," it said.
Environmental Recycling's shares were down 13.8% at 0.635 pence early Friday, one of the biggest declines on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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