LONDON (ShareCast) - (Sharecast News) - Eneraqua Technologies announced on Monday that it has placed its principal trading subsidiary, Cenergist Limited, into administration and completed the sale of its water business to IMFD Limited, a company with links to current Eneraqua directors and shareholders.
The AIM-listed firm's move followed earlier warnings from the company, and marked a significant step towards its expected entry into creditors voluntary liquidation.

James Lumb and Howard Smith of Interpath Advisory were appointed as administrators to Cenergist and immediately completed the sale of the water business to IMFD.

The deal included several Cenergist subsidiaries - Control Flow Technologies, Cenergist Energy Private Limited, and Cenergist Spain along with its holdings HaGePe International and HGP Exploitatie.

Eneraqua said the water business generated a pre-tax profit of £0.975m on revenue of £4.56m in the year ended 31 January 2024, and had net assets of £4.66m as at 31 July.

The transaction was agreed for a total consideration of £0.325m, comprising £0.25m in cash and £0.075m in deferred consideration due within 12 months.

IMFD was also acquiring £0.8m of receivables at 85% of face value.

Eneraqua said IMFD is led by Caroline Gray-Mason and Gary Copeland, both former shareholders in the company, with its directors and shareholders including Eneraqua board members Mitesh Dhanak, David Routledge, Sarah Cope and William Tame.

The sale had been reviewed independently by J9 Advisory under regulations governing sales to connected parties in administration.

It said the transaction would preserve 84 of the 180 roles previously within Cenergist.

Certain assets were being retained by the administrators, with 55% of any future sale proceeds from those assets - if sold with IMFD's help - allocated to Cenergist's administration estate for the benefit of creditors.

With no remaining assets following the appointment of administrators to Cenergist, the Eneraqua board confirmed it would now seek to place the company into creditors voluntary liquidation.

Reporting by Josh White for Sharecast.com.

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