Revealed - Avocet's five year profit forecasts

by DOUGLAS SHEPHERD

Shareholders in the Avocet group of 'disruptive technology' companies were provided with eye-watering profitability predictions in early 2018 alongside the prospect of tens of millions of pounds in government and EU grants to finance rapid development.

But two years on parent company Avocet Infinite PLC, now known as Omega Infinite, is being liquidated and wound up while 650 investors in the group see no sign of manufacturing of revolutionary green fuel or hydroponic crop growing on a commercial scale.

Farms in the Scottish Borders where many of Avocet's activities were to be located are currently in the hands of insolvency experts with debts in excess of £3 million already identified. A considerable number of suppliers claim not to have been paid.

The picture seemed much more rosy in January 2018 when group chairman Martin Frost, described in company literature as a serial entrepreneur, circulated a set of sales and profit forecasts for four Avocet Infinite subsidiaries.

The respective figures read as follows: "Broadly speaking, within the next five years, Avocet annually expects:, Avocet Agriculture - sales £50 million, profit £10 million; Avocet Infinite Renewables - sales £1,000 million, profit £200 million; Avocet Fuel Systems - sales £3,000 million, profit £150 million; and Avocet Bio Solutions (based in Republic of Ireland) - sales £2,000 million, profit £250 million."

Mr Frost commented in the circular: " I trust some of the above figures along with enclosures will demonstrate the magnitude of the Avocet businesses."

And shareholders were also told: "So far, the Avocet Infinite group has received little government support. Such appears to be changing - thus apart from the 25% HMRC research and development repayment grant, Avocet companies are now looking at a £10 million  grant for an avocet additive plant in the  North  East of England  along with  EU  Flagship Funding of 50 million  euros for Avocet Bio Solutions based in Cork, Ireland."

Mr Frost asserted that considered as a  package, the full Avocet model produced  healthier food, truly  renewable fuels, cleaner air quality and improved  natural capital  return  on equity for farmers,  local  authorities, businesses and governments. 

The document added: "In  2018-2019, Avocet plans to build three sites  in the Scottish  Borders to demonstrate  this full complement of technology and new farming methods. These sites will  benefit from  heavy investment and creation  of jobs. Avocet already has a  substantial tentative order from the Moroccan government; who wish to visit later in the year."

So far there is no sign of the proposed Borders centres or the promised jobs although in October 2018 Councillor Mark Rowley, Cabinet member for economic development at Scottish Borders Council told local newspapers he was impressed by the Avocet plans following a site visit to one of the farms.

The many investors were also provided with copies of Avocet executive director  Dr Bob Jennings'  'Parliamentary Avocet  Presentation' "which the UK Parliament is shortly to issue to every member of both chambers.

"It is an unfortunate fact that the Avocet philosophy has not been received with  open arms  either by the  UK or Scottish governments even though  Avocet by 2022 is likely to generate  a greater sales  income than  the total of the  Scotch  Whisky industry. 

"However, Avocet has been very well  received in the  Irish  Republic and has secured  significant  EU, Italian, Middle  Eastern, and US interest. Avocet already has the impetus along with margins to produce a billion in sales for the year 2021 producing some £300 million net profit."