23rd May 2018 12:53
LONDON (Alliance News) - Velocys PLC said on Wednesday that it recorded a widened loss in 2017 due to an extensive increase in costs.
In 2017 the renewable energy company's loss multiplied to GBP55.3 million from GBP14.1 million the year before. The wider loss can be almost entirely attributed to a GBP28.8 million impairment of intangible assets.
Revenue nearly halved, down at just GBP759,000 from GBP1.5 million in 2016.
Shares in the renewable fuels company fell 20% on Tuesday last week when a leak closed operations in its Oklahoma plant. The company said it is aiming to operate the plant using one reactor while the leak is repaired.
Shares in Velocys were down 5.5% at 11.65 pence each on Wednesday morning. The stock is down 71% over the past year.
The company added it has a positive outlook now that its transformation into a renewable fuels business is complete.
"Although some of these changes were difficult they have set up the Company for the future...We have a demanding plan to deliver in 2018, but we are well placed to meet these challenges," said Velocys Chief Executive Officer David Pummell.
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