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(Alliance News) – The board of directors of algoWatt Spa announced Monday that it has approved the new Corporate Business Plan 2023 – 2025, consistent with the proposed updated financial maneuver previously announced to the market and to “exit from the current state of financial stress, through the modification of the business model and a revision of the company’s strategic and financial objectives,” as specified in a note.
algoWatt envisions to 2025 “a substantial increase in revenues and profitability and, at the same time, the definitive and substantial financial debt relief of the company, thanks to the updated financial maneuver.”
The turnaround plan, in fact, is based on the approval of the Plan to 2025, based on the strategic guidelines drawn up with the advice of STAM Srl and communicated to the market on March 24, 2023, through the modification of the business model, a significant rationalization of the company’s portfolio of activities resulting from the focus on twin transition and digital circular economy, on research and innovation initiatives as well as on system integration activities aimed at the realization of greentech plants for renewable energy production and energy efficiency.
There are two main revenue lines in the plan: “Digital Energy & Circular Economy, which includes algoWatt’s current activities for digital transformation and energy and ecological transition through smart technologies, enabling customers and consumers to use resources in a more sustainable way; and Greenthech Industry, which includes Terni Energia Progetti’s activities as a system integrator and ideal partner of investors, funds, utilities, asset management companies, and general contractors for the development, design, construction and management of plants for renewable energy production and energy efficiency.”
The Business Plan also estimates a 51 percent growth in value of production, with cumulative revenues of about EUR134 million, with intermediate revenue targets of about EUR18 million in 2023, EUR42 million in 2024 and EUR64 million in 2025. The increase in revenues is estimated to come from the integrated growth of the Greentech Industry business – the predominant component, amounting to 19 percent in 2023, 88 percent in 2024 and 91 percent in 2025 – and Digital Energy & Environment, from the increase of the RD&I project portfolio, and from the proceeds from the disposals of non-strategic assets, platforms and contracts. The plan forecasts a margin of about 13 percent when fully implemented in 2025.
In addition, the company has proposed to its financial creditors the conversion of its debt into equity with a reserved capital increase-with exclusion of pre-emptive rights-conditional on the early conversion of algoWatt’s SFPs. “A dilution of the current majority shareholder Italeaf Spa is foreseeable, which would see its stake fall below 30 percent,” reads the algoWatt press release.
algoWatt on Monday closed up 1.8 percent at EUR0.62 per share.
By Chiara Bruschi, Alliance News reporter
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