Broker Collins Stewart’s fury as Ocean Power Technologies flounders

From The Times
July 15, 2008


Britain may once have ruled the waves, but not so Ocean Power Technologies (OPT), it seems, which may be concentrating rather more on not sinking under them – even more so after a damning broadside from Collins Stewart, its house broker, yesterday, which ridiculed Britain’s once-great wave power hope for “displaying a total inability to deliver”.
OPT, which was founded by George Taylor, its chief executive, made headlines four years ago by winning a contract to build the world’s first wave power station off Spain. But Mr Taylor said that the company needed to reinforce its design to cope with “100year storm waves” and a prototype would not even be ready for testing until next year. OPT is taking an extra $2.4 million loss on the contract.
Raymond Greaves, of Collins Stewart, said: “The basic designs were in place over three years ago and . . . a prototype has not even been built yet. The continued delays baffle us.”
Mr Taylor said he wanted to avoid a disaster such as that encountered by Finavera, a Canadian peer, whose 72ft wave generator sank in a storm last October off the coast of Oregon. His caution did find support from some quarters, for OPT shares rose 2½p to 410p yesterday, but that is only a third of their float price five years ago.
Companies related to Peter Klimt and Guy Naggar’s Dawnay, Day (DD) empire were falling as it emerged the pair had brought in an administrator. DD Treveria fell 4 cents to €0.28¾ and DD Sirius fell 4 cents to €0.43. The companies revealed that Mr Klimt and Mr Naggar had sold stakes in both on Friday. DD Carpathian, which invests in Eastern European property, fell 3¾p to 40p. KBC Peel Hunt said that Carpathian would have to refinance loans in 2011 and that the forecast 8p dividend for this year was at risk.