Camco International is selling its profitable UK advisory business to Baxi Partnership for up to £4.5 million.
An initial £3.25 million will be paid, with a potential earn-out of £1.25 million over the next two years. The cash will be used in the core operations. The company's African advisory business is being retained.
Camco is a developer of greenhouse gas emissions reduction and clean energy projects. The business was hit by a sharp fall in the price of EU-traded carbon credits in the second half of 2011.
In contrast, California's cap and trade programme has helped to put a floor of $10 on carbon prices from 2013. This price will rise by 5% plus inflation.
Singer forecasts a 2011 loss of €29.9 million because of the EU carbon price falls. A loss of €7.6 million is forecast for 2012.
Market: AIM
Symbol: CAO
Price: 8p
12-month high/low: 23p/5.88p
Market cap: £15.1 million
