Loss making and bankrupt Proven Energy sold
Bankrupt Proven Energy has been sold in a deal which should boost the UK wind manufacturing sector but will provide little solace for its out-of-pocket customers.
The business went into administration last month following a manufacturing defect in its Proven 35-2 wind turbine, which turned out to be the final straw for its precarious financial state.
Today (October 13) the Ayrshire, Scotland based business was sold to Kingspan Environmental Renewables.
Proven had a good turnover but accounts filed at Companies House in London reveal it had not made a pre-tax profit in any of its filed accounts.
In 2010 turnover was £5.8m but profits before tax were -£2.6m, the year before turnover was a very healthy £8.8m but profit before tax were -£4.4m.
However, the sale to Kingspan, through administrators KPMG, means 20 jobs at the company's Scottish manufacturing base will also be safeguarded and manufacturing could be expanded.
Kingspan's managing director, Noel Crowe, promised new and improved turbines.
He said: "We intend to launch 6KW and 3KW turbines, incorporating the high performance, reliability and key features of the Proven P11 and P7 models.
"A decision on whether or not to launch a 15KW turbine will be made at a later date, but any launch is unlikely to be before January 2013."
Mr Crowe also said suppliers or customers with claims relating to Proven Energy, or products supplied by it should lodge a claim with Proven, care of KPMG, and not with Kingspan.
Renewable energy expert and Myriad CEG managing director, Phil McVan, said the deal was good for industry but will leave many customers and suppliers out of pocket.
He said: "Unfortunately it seems likely Proven's new owners will not be obliged to honour its guarantees.
"This is not great news for farmers who have turbines on their land that are standing idle and who invested in the technology in good faith.
"Something needs to be done to help them get back up and running and it is important for the sector that this happens.
"However, the industry needs the investment that larger organisations can bring which will create jobs and train workers."