Acquisition of entire shareholding of Engsolve Ltd
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22 June 2023
Powerhouse Energy Group Plc
(the "Company" or "PHE")
Acquisition by PHE of the entire shareholding of Engsolve Ltd
Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, is pleased to announce that it has completed the acquisition of the entire outstanding shareholding of the engineering consultancy company, Engsolve Ltd ("Engsolve") for a cash consideration of £572,000.
Reason for the acquisition
On 12 August 2021, PHE announced that it had acquired a 48% stake in Engsolve, a private company based in Bridgend that has worked closely with PHE on the Protos Plastics to Hydrogen project and more recent prospective projects. Engsolve has significant experience in engineering design and support, cost estimating and control, project management and safety risk assessments across a range of industries including energy from waste, renewables and green energy, and will complement PHE's capabilities in the development of its technology and project implementation. The inhouse engineering capability will also permit PHE to develop revenue streams into the Company that previously were not available to it. For the year ended 31 March 2022 Engsolve recorded a profit for the year of £195,155.
Related party transaction
Engsolve was owned 48% by PHE and 52% by its two directors, Paul Emmitt and Richard Riddell. Mr Emmitt is the Chief Operating Officer of PHE. Mr Emmitt has sold his entire holding in Engsolve and is a related party under the AIM Rules for Companies. The transaction with him is therefore a related party transaction under these regulations.
The independent Directors of the Company (being the full board except for Paul Emmitt and Keith Riley who are deemed to be not independent due to their roles as directors of Engsolve), having consulted with WH Ireland, PHE's Nominated Adviser, consider the terms of the related party transaction to be fair and reasonable insofar as shareholders of the Company are concerned.
Tony Garner-Hillman, Non-Executive Chairman of PHE commented:
"We are delighted to have acquired the remaining share capital of Engsolve. This Acquisition consolidates Engsolve's position within PHE and will provide the Company with a secure engineering resource that will enhance the Company's capabilities and business for the future."
Paul Emmitt, Managing Director and Founder of Engsolve commented:
"I welcome PHE completing the acquisition of Engsolve and look forward to growing the PHE business in the acceleration of the clean energy transition that is so urgently needed. The acquisition is testament to the expertise of the Engsolve team, and of their efforts since Incorporation, I believe this will lead to growth and provide much needed resource for PHE."
Keith Riley, Acting CEO of PHE commented:
"I have been working closely with Paul and the Engsolve team since I joined PHE. They are a very capable and motivated group of people. Having them totally committed to the PHE business will be a real boon for the Company. I also see the integration of Engsolve into PHE as being critical for the Company as it will give us a base on which to grow the engineering services arm of the company as well as strengthening the engineering support of our capital-intensive projects. This is the start of a new era for PHE."
For more information, contact:
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Powerhouse Energy Group plc Keith Riley
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WH Ireland Limited (Nominated Adviser) James Joyce James Bavister Enzo Aliaj
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+44 (0) 207 220 1666 |
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Turner Pope Investments (TPI) Ltd (Joint Broker) Andrew Thacker James Pope
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+44 (0) 203 657 0050 |
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Tavistock (Financial PR) Simon Hudson Nick Elwes Heather Armstrong |
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The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
About Powerhouse Energy Group plc
PHE has developed a process technology which can utilise waste plastic, end-of-life-tyres, and other waste streams to convert them efficiently and economically into syngas from which valuable products such as chemical precursors, hydrogen, electricity, heat and other industrial products may be derived.
PHE's process produces low levels of safe residues and requires a small operating footprint, making it suitable for deployment at enterprise and community level.
PHEs quoted on the London Stock Exchange's AIM Market under the ticker: PHE and is incorporated in England and Wales.
For more information see www.powerhouseenergy.co.uk
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