Cinpart (AIM: CINP) delivered the goods this morning, announcing that it had signed a contract to supply its ‘VoltageMaster’ unit to a “known leading international retailer and manufacturer of affordable home products.”
Cinpart, whose main businesses have traditionally made components for manufacturers of gas appliances, established a new subsidiary business called Active Energy earlier this year. Active Energy – in which Cinpart holds a 65% stake – is focused on ‘voltage optimisation’.
Voltage optimisation is a method of reducing electricity consumption by lowering the single-phase voltage that enters a building to 220 volts. It is a particularly effective means of saving energy in the UK because there is a national problem of ‘over-voltage’. Active Energy owns the rights, intangible assets and intellectual property of ‘VoltageMaster’, a range of voltage optimisation equipment that reduces voltage usage in commercial buildings and, therefore, energy consumed.
“The contract win represents a significant step in establishing the reputation and potential of Active Energy, which commenced operations in March 2009, as the Customer, a well known leading international retailer, operates numerous stores throughout the UK which are substantial users of energy,” Cinpart stated.
The contract is valued at £1.18 million and is expected to be completed in the third quarter.
Cinpart was also keen to point out that the UK’s Carbon Reduction Commitment encourages improvements in energy efficiency among large business and public sector organisations.
“The scheme has been designed to generate a shift in awareness in large organisations especially at senior level, and to drive changes in behaviour and infrastructure.' The directors of Cinpart believe that this initiative will be of significant benefit to the Company.”
Cinpart went on to report that is in ‘advanced’ discussions with a number of major companies and local authorities for its VoltageMaster units.
“Active Energy's contract win with a major multinational home products retailer highlights the tremendous prospects for our subsidiary - which only commenced operations in March 2009,” Kevin Baker, Cinpart's CEO, commented. “We are confident that further contracts for the VoltageMaster with local authorities, large retailers and users of sizeable commercial and industrial premises will be forthcoming, as the regulatory environment surrounding carbon emission reductions in commercial buildings tightens considerably and energy costs, as predicted, rise over the medium and longer term.”
Shares in Cinpart climbed 7% on the news, and have rallied strongly in the past few weeks.
http://www.proactiveinvestors.co.uk
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