‘Fed up to the back teeth’ D1 director Watkin quits

Mar 11 2008 by Peter McCusker, The Journal

THE founder of one of the region’s leading alternative fuel companies says its future still looks bright despite standing down as a director - saying he was “fed up to the back teeth” with the stock exchange and the Government.

Karl Watkin, the driving force behind Middlesbrough-based D1 Oils, yesterday resigned as company non-executive director saying his “brilliant” strategy had been undermined by the “incompetence” of the British Government.

Meanwhile, shareprices in the AIM-listed group dropped by one point to 55.50p in early trading this morning following city rumours that it was seeking a £30m cash injection.

Last Friday the company revealed it was shedding jobs, blaming the dumping of heavily-subsidised American biodiesel (B99) in the UK, therefore undercutting British manufacturers. As a result D1’s share price dropped 37% to 62p. It fell a further 9% yesterday, closing the day at 57p.

The events of the last few days have prompted speculation the company may be the subject of a takeover with its value plummeting from £160m to £30m in a matter of months.

Mr Watkin, who still owns 5% of D1, said: “Our strategy of planting jatropha, which does not compete with land suitable for food stocks, is brilliant. Nevertheless over the last 12 months I have become increasingly frustrated by the inability of the investment community, governments and NGOs to differentiate D1’s strategy from that of the suppliers of palm, soya and rape seed whose biodiesel products have been well documented as being unsustainable.”

The fall in the value of the company also sparked Mr Watkin’s ire. “Friday’s announcement on redundancies is a bid to save costs and a fall in value of the company of 5% would have been in line with my expectations, but the fall of nearly 40% is ridiculous. I am fed up to the back teeth with the attitude of the stock market,” he said.

Mr Watkin also attacked the Government. “We have no protection from cheap US imports of biodiesel due to the incompetence of the British Government.”

Chairman of D1 Oils Lord Oxburgh of Liverpool said: “Karl has made a major and critical contribution to D1 Oils. The company has been built on his vision for the potential of jatropha as one of the most promising sources for sustainable biodiesel.

“His early conclusion that supplies of traditional food oils and grains could not support the development of the biofuels industry, and that alternative energy crops like jatropha would be important sources of green fuel was truly far-sighted.”

The company employs around 100 people at its plants in Middlesbrough and Merseyside and around 35 of these are scheduled for the axe.

D1 chief executive Elliott Mannis blamed US subsidised for the job losses. He said: “The simple fact is that you can buy the subsidised American imported material cheaper than you can buy vegetable oil for processing.”

PAGE TWO: Read Mr Watkin's resignation speech in full.