Uncertain times for biofuel company

Jun 5 2009 by Chris Knox, The Journal

Despite the setback, D1 directors believe there is value in the joint venture. Director of corporate communications Graham Prince said: “The way the economy has gone over recent months has made it difficult to attract the necessary investment.

“However, this is not a disaster and we are still confident that the future of the energy markets lies in jatropha and believe there is still value in the joint venture.”

The firm, where Mr Watkin stepped down as non-executive director a year ago, said it was delaying the announcement of preliminary annual results until it found an investor. A BP spokesperson said: “Given the ongoing funding requirements of the business, the shareholders are now considering options for the JV.”

The situation looks set to spook investors. Vinay Bedi, of Newcastle stockbrokers Brewin Dolphin, said: “D1 has been delaying their financial results for some time now as they continue to look for a third investor and now that they have to put down a nil for the value of the joint venture will be of some concern to many people.

“It will raise a number of questions about the future and direction of the business.”

Its share price fell almost 20% to 9p last night, valuing the firm at £11m. Four years ago shares neared 500p.