Gas Turbine Efficiency says that a potential strategic investor has decided not to make an investment in the company.
GTE supplies equipment to clean aero engines and industrial gas turbines in order to make them more efficient. GTE is trying to sell the aviation operations and is looking for alternative sources of finance. The aviation business is suffering falling revenues.
There was cash of $3.35 million in the bank at the end of June 2010 but net debt was more than $9 million. A reduction in working capital meant that there was a modest operational cash outflow of $246,000 in the six months to June 2010. That does not include $4.27 million of capitalised R&D spending in the period.
The order book was worth $33.8 million at the beginning of September, including $5 million from the aviation business. Revenues were $37.1 million in 2009 and 2010 revenues are expected to be 15% higher.
GTE’s NAV was $32.7 million at the end of June 2010 but that falls to $6.2 million excluding intangible assets.
John Grant has become executive chairman.
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