Founder’s bid to rescue energy firm
THE founder and former chief executive of energy broker Utilitywise has launched a bid to save the ailing North East business.
Geoff Thompson stepped down from the board of Utilitywise two years ago, having grown the company with just three other colleagues from a bedroom in South Shields into a multimillionpound AIM-listed enterprise.
Last month, however, it emerged that the company needed £10m to finance its new strategy, which has been designed to overcome “unexpected challenges and legacy issues” – and that its bank will only renew its facilities if it has that funding in place to pay for its turnaround plans.
The firm – a major employer with around 1,000 employees – was unable recently to commit to its future beyond this month, though it insisted staff will be paid in February.
The announcement of a formal sale process of the business, with many based at Cobalt Business Park, North Tyneside, means workers are faced with doubts over their futures, and the possibility of Utilitywise being broken up and its assets stripped.
Now, as reports emerge that Utilitywise is in talks with potential buyers in a bid to solve its financial woes, it has emerged that Mr Thompson is planning a dramatic return to the boardroom he quit, after tabling what he describes as a “very credible” rescue package.
A team led by Mr Thompson, who founded the business in 2006, has made a bid which is now in the hands of shareholders and business advisors.
Mr Thompson said: “I can confirm that we’ve put a proposal forward. It’s a very credible plan for the business and I still believe that, with the right strategy and right execution, there’s still a very good business there.
“I hope we can take our proposal forward, but that stage is out of our hands. I don’t hold all the cards but I hope we can save what is a fundamentally good business and execute a plan and achieve success.”
Mr Thompson added that a number of other parties may have made an approach for the firm. Having put itself up for sale at the end of last month, Utiltywise has said it is holding conversations with potential buyers.
Mr Thompson sold a 6% stake in the company last November. Shares have fallen from an all-time high of 370p in 2014 to 1.88p.