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Alkane recharges its batteries

RESULTS: Gas-to-power producer Alkane Energy had a mixed first half, but now looks poised to roar ahead.

Through some canny acquisitions and divestments in the first half, Alkane Energy (ALK) has diversified and grown its business to better profit from the UK’s looming energy shortage. But the transformation has not been smooth.

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Electricity output in the period was 10 per cent lower due to the longer-than-expected closure of the Maltby colliery – home to Alkane’s largest coal-mine-methane operation. And revenues fell sharply at the company’s DBO division, which builds power plants for other companies, because a large one-off contract that generated nearly £1m in pre-tax profits last year was not repeated.

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