Gennfros branded "Avocet Two Point Zero"

 by DOUGLAS SHEPHERD

Developments over Christmas concerning Gennfros Ltd, the 'successor' of the Avocet 'disruptive technology' group, have resulted in critics branding the new set-up as "merely Avocet 2.0"

On Christmas Eve documents published on the Companies House website revealed that two companies linked to Avocet directors Martin Frost and Dr Bob Jennings - Loch Lomond Heritage Ltd. and Chemical Technology Services Ltd - had been appointed to the board of Gennfros. They join Lancashire-based accountant Paul Newsham who is also a director of several companies bearing the Avocet name.

For six years Mr Frost's Avocet firms have been promising attractive dividends to investors via the development and marketing of a 'revolutionary' fuel additive, also called avocet. But so far there has been no sign of a return for Avocet Natural Capital's (ANC) hundreds of shareholders.

Earlier this year management at Avocet announced its intention to dissolve ANC with shareholders being offered a stake in the newly formed Gennfros, a title apparently representing an abbreviated amalgamation of the Jennings and Frost names.

But so-called dissidents and naysayers who had challenged Avocet's directors over the lack of results since 2014 were told they would not be eligible to participate in Gennfros which, it was claimed, held intellectual property (IP) valued at an estimated £150 million, exactly the amount said to be held by ANC.

Mr Frost, in a communication circulated in November, wrote: ""Gennfros Limited’s new company articles will shortly show that the company has an ‘authorized’ share capital of 50 million shares. Again, within Gennfros articles there are stringent provisions for privacy and good husbandry – so please read and understand the new articles before accepting any Gennfros Limited share entitlement option."

Christmas Eve also saw the publication of a Confirmation Statement by Gennfros showing a total of 289 businesses and individuals with shares. The total allotted is recorded as 19,119,983 shares with an aggregate nominal value of £191,119.83.

Between them Loch Lomond Heritage and Chemical Technology Services hold 10 million shares (five million each), in other words more than 50% of the total Gennfros shares.

The failure of ANC and its predecessors and subsidiaries to achieve any of the financial targets promised by Mr Frost over six years is the subject of a withering critique posted on the independent Avocet Shareholders' Forum. The writer makes clear his or her view that Gennfros is simply 'Avocet 2'.

According to the post: "I remember the exciting promise of those days, promise of a revolutionary new fuel that would both protect the environment and revolutionise transportation. Those were thrilling times, and this first product announcement was quickly followed by others, also very exciting – biogas harvesting with the Cow Palace™; methane to methanol conversion; hydroponics.

"Our spirits were high, in part due to frequent very positive messages from Frost such as: that based on his personal calculations, our IP was worth at least £450M; that in his estimation, our shares would be conservatively worth between £29 and £59 by 2019/2020; that he had just turned down a verbal offer from Russians of £200 million for Avocet; etc., etc.

"And there was his promise, made in 2017, that he would shortly establish multiple trading platforms where those who wished to could cash in on their good fortune - Asset Match for Avocet Infinite Plc; Avocet Fuel Systems Plc via AIM - London Stock Exchange; Avocet Bio-Solutions Plc via the Irish Stock Market (MF – November 26th, 2017).

"From 2015 to 2018, Avocet expanded to almost thirty separate companies, and yet still had no appreciable revenues, but we were frequently advised of corporate restructurings and provided with attractive new organization charts. And, of course, there were the always very promising revenue forecasts that were provided to us: Revenue forecast of £8.7 million for 2017 (from October 2016 Information Memorandum); Revenue forecast of £30 million + for 2018 (from October 15th, 2017 Avocet Update Summary); Revenue forecast of £189 million for 2019 (from November 2018 Information Memorandum)".

The poster goes on to ask: "And after six years, what have the results been?"

And continues: "To summarise, from any perspective the Avocet group of companies has been a colossal failure. £22.5 million of the shareholders’ money was invested and depleted with not one on-market product to show for it. The only thing that Avocet has been able to produce very consistently is lawsuits.

"But what are the prospects for Avocet 2.0 (Gennfros)? Well, there are a couple of challenges. First, it has no money, so the whole future of Gennfros is dependent on the existence of the mystery investors, which some have rightly questioned. Second, at present, it has only two patent applications that may be approved in four years. That is a long time to wait."