Clipper struggles as investors put returns above good intentions

By Alisatir Dawber
Monday, 9 March 2009

Green energy is a great idea. The problem for both those trying to produce it, and other businesses serving the nascent industry, is that investors will not support a company simply because it is doing the world a favour.
The analysts pore over the green group's results and market updates in exactly the same way as any other and if there is any sign of weakness, sell notes are sure to follow. Take Clipper Windpower, the AIM-listed company that makes turbines for windmills.
Clipper's share price has fallen by 85 per cent in the last 12 months as analysts have suspected that for various reasons there are better ways for investors to make returns.
In its trading statement at the end of last week, Clipper said: "The current economic and credit conditions in global markets, coupled with lower energy prices, are resulting in reduced capital expenditures by the company's customers and delays in the timing of turbine deliveries. Accordingly, Clipper is planning approximately 15 per cent to 20 per cent lower production levels for 2009." A loss is now expected for the second half of 2008.
The group produces a vital service for the protection of the environment. While it is true to say that Clipper is itself motivated by profit, the fact that investors are getting as far away from AIM as possible is undoubtedly having a knock-on effect on green energy development.