AEA Technology, the energy and sustainability consultancy has seen its its share price rise dramatically this morning following an encouraging set of half yearly results.
Broadly speaking, AEA has had a terrible year during which the stock has lost 90% of its value. The nadir was reached on 16 November when the company issued a profit warning on the back of a poor performance by its US business. Several expected orders had either come in late or not materialised at all.
As a result, the chief executive Andrew McCree resigned leaving AEA in a distressed state.
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It is heartening, then, to read that the ship has been steadied.
The company has agreed new banking covenants with Lloyds providing continued access to an overdraft "for the foreseeable future". It has also appointed an interim chief executive, the technology specialist John Lowry.
Dealing with the immediate issue of the banks and leadership in the space of just two weeks has impressed the market. The other element of today's statement that has raised eye brows has been a bumper order book, which is up 84% at £73m, compared to £39.6m at the same point last year.
None of this disguises the fact that AEA is still in very choppy waters, a reality underlined by its £2.1m pre-tax loss in the last six months and debt at £34.3m, up from £28.3m at the end of March.
AEA's chairman Dr Paul Golby said he was disappointed that, having traded in line with expectations during the first half of the year, profit and revenue declines will impact the second half.
Nevertheless, shares in AEA were up 35% by 10.53am at 0.677p.
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