Sunday 9 August 2020

New driving force for 'avocet' wonder fuel

by DOUG COLLIE

A former director of Preston North End Football Club is spearheading efforts by the Avocet group of 'disruptive technology' companies to organise trials of a revolutionary fuel in vehicles used by the English and Welsh police and the National Health Service.

Paul Newsham, a Lancashire based chartered accountant, is a director of two companies bearing the Avocet name - Avocet NC Ltd and The Avocet Clearing House Ltd. He is the sole director and holder of all 100 £1 shares in Avocet NC which was set up in February of this year with an address in Penwortham, Preston.

The Certificate of Incorporation for Avocet NC is the only document filed at Companies House so far. The nature of business is listed as 'activities of venture and development capital companies'. Mr Newsham has 25 current and former directorships, according to the companies register. He was a director of Preston North End from 2004 until 2014.

Since January 2019 Mr Newsham has been a director of RfM Fylde Ltd., the company which recently audited the 2018 annual accounts of Avocet Natural Capital PLC. Auditor Alan Meikle, of RfM Fylde, succeeded Paul Charlton, of Newcastle accountancy firm Ryecroft Glenton who audited the 2017 books.

Mr Newsham's prominent role in facilitating tests for the so-called 'avocet' methanol additive has been highlighted in a shareholder letter distributed to 650 investors by group chairman Martin Frost.

According to Mr Frost: "Avocet NC Limited under the wise guidance of Mr. Paul Newsham is arranging product trials with the English & Welsh Police and the NHS."

The letter also claims:"A UK monthly production tonnage of 5 tons rising to 50 tons monthly for product testing is considered feasible from one Avocet ‘golden supplier’. Similar production quantities are in active preparation for both North American and Continental Europe ‘golden suppliers’ – so hopefully by January end 2021 some 24 million litres per month of avocet methanol will become a practical reality"

The imminent mass production and marketing of the company's fuel which is designed to replace petrol and diesel will be welcome news to shareholders who have expressed increasing concerns at the lack of progress since the first of a network of Avocet firms was established back in 2014.

In a reference to the additive and other products in development an Information Memorandum (IM) issued by Avocet from late 2016 predicted: "These products which carry additional efficacy & cost saving benefits should be available to the market place in 2017 and 2018."

Prospective investors were also told of a pre-production trial run of the proposed manufacturing process by Austrian company DPx Fine Chemicals increasing to 10,000 tonnes production per year.

According to the 2016 IM: "DPx Fine Chemicals are expected to handle both the production and distribution of Avocet additive via a licencing agreement with a royalty fee payable to Avocet Infinite Plc. The minimum production volume for the Avocet additive is 10,000 tonnes.

"Initial discussions suggest that Avocet Infinite Plc would expect to receive 1p per litre (on a diesel equivalent basis) royalty on the avocet methanol fuel blend (a 2% Avocet blend). With the minimum production volume, this would equate to royalty payments of £1.7 million (there are 775 litres of Avocet per tonne). The maximum production volume from Linz is 100,000 tonnes using the same assumptions equates to £17 million annual royalties.

"This production would be for sale in the EU market alone. DPx can also provide access to similar arrangements in other key markets. In total they have 64 plants round the world that are capable of producing similar output and therefore production capacity is not envisaged to be an issue."

To the uninitiated the large number of Avocet companies including relative newcomer Avocet NC Ltd may be confusing. But Mr Frost provided clarification of the linkage in his latest correspondence with investors.

"Avocet NC Limited is NOT a subsidiary of Avocet Natural Capital Plc for so to be would negate the Avocet Patent Box proposals. Instead Avocet NC Limited is a standalone company. ANC Plc and Avocet NC Limited are linked by contract in which ANC Plc could/can exercise 100% control. Avocet NC Limited owns The Avocet Clearing House Limited which in turn owns all Avocet subsidiary companies except for Avocet Bio Solutions Plc."

With regard to Mr Newsham, Mr Frost wrote: "Paul Newham manages businesses well, he motivates people, he makes money, and currently runs a number of accountancy, finance & legal companies.  Financially, Paul is very solvent and has a good credit rating. In my opinion Paul is a good interim CEO for Avocet NC Limited. Paul paved the way for both the English Police Force and the NHS to trial the ‘avocet methanol additive’ – shortly put, Paul achieves things."

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