Aggregated Micro Power celebrating purchase of Billingtons from Drax

Wood fuels and distributed energy projects specialist Aggregated Micro Power Holdings was celebrating on Wednesday after it agreed to acquire Billington Bioenergy from Drax for a consideration of £2.0m.

The AIM-traded company confirmed the consideration comprised £1.6m in new ordinary shares, to be issued at a price of 98.5p per ordinary share, and £0.4m in cash.

Billingtons supplies around 40,000 tonnes of “premium” wood pellet to commercial customers per annum, has four depots, a head office in Liverpool and employs 34 staff.

It also has a fleet of 16 “well-maintained”, specialised vehicles and serves more than 1,500 customers.

As at 30 June, Billingtons had unaudited net assets of £1.5m.

In the year to 31 December 2016, Billingtons had unaudited revenues of £6.8m and a loss before tax of £0.43m, which included certain management re-charges allocated to Billingtons by Drax.

“We are delighted that Drax has become a long term investor in AMP and we look forward to working with Drax on a range of development projects which should help to expand our assets under management in the distributed energy space,” said chief executive of Aggregated Micro Power Holdings, Richard Burrell.

“Billingtons has built a strong and well-regarded business in the wood pellet market in England over the last ten years and is an excellent fit with Forest Fuels.”