Quadrise (AIM: QED), the maker of water-emulsion fuels that replace fuel oil, reported a wider loss and a going-concern warning at 7am today. It also launched a Strategic Review to look for a partner or investor.
The shares were quoted at 0.8801p at 8.27am this morning, 6.57% below the previous close of 0.942p and under the 1.0p price of the company’s July fundraising.
For the year to the 30th of June, loss after tax rose to £4.2m from £3.1m. Cash fell to £2.1m from £5.9m, while revenue of £89k (2025: £42k) was the amortised licence fee from Valkor, a Utah heavy-oil developer.
The company flagged a material uncertainty over going concern, meaning doubt it can keep operating without more funding. It expects cash to last to the 30th of September 2027, but says further money is needed before positive cash flow, forecast from August 2028, and has no binding commitments.
Chief executive Peter Borup was blunt about the year:
We did not start the MSC and Cargill trial, which was our principal objective. We did not complete the OCP trial. Valkor did not pay the licence fee that fell due. We raised less money in July than we had sought.
Peter Borup, Chief Executive Officer, Quadrise
The July raise brought in £1.6m before expenses, short of the £2.4m top of the range. The MSC and Cargill agreements, with the container line and fuel trader, remain unsigned, and the trial is targeted for the first quarter of 2027. The OCP trial agreement, with the fertiliser producer, is also not concluded.
Valkor owes US$0.95m of its US$1.0m fee. It has advised that US$0.3m will be paid by the end of October, with the rest due on completion of its project financing.
The Strategic Review has four options: a master licence for defined regions or uses, a private joint venture with a strategic investor, a non-controlling strategic investor, or investment in or acquisition of private marine-technology businesses.
The company states it is not pursuing or inviting offers and no offer period has begun under the Takeover Code. It will update shareholders by mid-February 2027 at the latest, with no assurance any transaction will follow.
The AGM is at noon on the 27th of November. Shareholders can submit questions until 9am that day or during the live presentation that follows.