Covid-19 threatens "cash poor" pioneering farm business

by DOUG COLLIE

The deadly Coronavirus may be about to dash the development plans of a 'revolutionary' Borders-based farm business which was already facing insolvency before the bug hit the UK, according to one of its directors.

Omega Infinite PLC (formerly Avocet Infinitive) has already been the subject of a winding up petition in the High Court, lodged in November 2019 by lawyers representing a creditor.

And last month administrators for sister company Orrdone Farms Ltd revealed in a report: "We were informed by Mr Martin Frost [a director of both firms] that an application had been made to Court to place Omega Infinite plc into Administration.

"An application for an Administration Order through the Court places a temporary moratorium on all legal actions against the Company so it will be necessary for the Joint Administrators to await the outcome of the hearing  before this matter can proceed further."

But an article published today (Monday) by the UK Parliamentary Review carries extensive comments from Mr Frost's fellow director James Jennings outlining the impact Covid-19 is having on the business, still called Avocet Infinite by the Review author despite a change to Omega several months ago.

The story looks at the effect the virus is having on the agriculture and energy sectors.

Mr Jennings, described as Principal Director of sustainable food and fuel producer Avocet Infinite, is quoted as saying the firm was faced with "stagnation of uncertain duration".

He went on:"Our business model is the generation of further IP in the areas of hydroponic systems for fodder, specialist cattle breeding to produce healthy beef, anaerobic digestion to produce methane (which is converted to methanol) and the production of a cetane enhancer that allows methanol to performer efficiently in a diesel engine without generating emissions".

And according to Jennings: " "The company is very asset rich, but cash poor. Our day-to-day running costs can be very problematic.

"We only employ a few people, directly or indirectly, but while that is difficult at present, it is not the major issue. Our biggest problem is that we sell franchises and IP to potential partners. To demonstrate the power of our technologies, we need to construct demonstration units and meet people -- clients and key, relevant businesses."

"While this is a big problem for us in the UK, our most lucrative opportunities come from overseas.

Of course, initial discussions can be carried out by phone or video call, but the real business can only be done face to face. This, given the suspension of flights and social distancing measures at present, is simply not possible.The consequence is that we are faced with a stagnation of uncertain duration before we can move forward again."

As Not Just Sheep & Rugby reported recently, the administrator for Orrdone Farms plans to sell three farms in the Scottish Borders where much of Omega Infinite's operations is believed to have been based. Her report showed Orrdone owed an agricultural finance company over £3 million while other claims by the firm's creditors exceeded £600,000.