4th Apr 2016 09:20
LONDON (Alliance News) - Intelligent Energy Holdings PLC said Monday that it plans to undertake a "material restructuring" of its business, including cutting around 200 jobs, as it continues talks to secure funding.
Last month the company warned it had been unable to complete a funding process by the end of its first quarter, and it reiterated Monday that there is no certainty the ongoing talks to secure this funding will be successful, but it hopes to finalise them shortly.
In an effort to reduce costs and focus on its "most immediate and material market opportunities", Intelligent Energy will restructure its business to focus on its power dense sub 1 watt to 20 kilowatt air cooled fuel cell technologies. Whilst it plans to maintain its core high power technology intellectual property portfolio, further investment and development will only be made when "profitable and scalable opportunities arise."
Intelligent Energy has proposed a reduction of around 200 jobs, and it will close some office locations, with a majority of these reductions to take place in its UK operations.
This is expected to reduce its costs and cash burn "rapidly and significantly", it said. The company will also review the scope of some of its existing and target contracts to ensure they align with its revised focus.
Shares in Intelligent Energy were up 20% at 11.69 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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