This is to confirm that in June, two of Ethical Power’s contracting Entities (Ethical Power Connections and Ethical Power Group) were placed into administration. On Friday 26th, we also filed notice of intention to appoint administrators for Ethical Power Renewables, another contracting entity.
These contracting entities were deemed unviable due to prolonged liquidity issues as a result of non-payments from multiple clients for works delivered.
The requirement to cashflow projects contracted to these entities resulted in millions of pounds invested in these companies by our shareholders being lost, while value was retained by the clients.
The management of the companies acted responsibly to stabilise the business, deploying significant additional capital, guarantees, and bond support to remedy the cash flow deficiencies.
For the avoidance of doubt, we would like to confirm that Ethical Power continues to operate, and as part of a wider group restructuring process now consists of the following entities: Ethical Power O&M, Ethical Power Utilities, Ethical Power Spain, Ethical Power International, and Ethical Power’s development entities.
The restructure and a strategic refocus, backed by new institutional investors who bring with them a great wealth of experience and leadership, allows these companies to move forward and focus on the sustainable and profitable opportunities in the market. We are excited to share more news about this new venture soon.