Baltimore plans energy business

THE internet security firm Baltimore Technologies has announced plans to turn itself into an energy company into a bid to boost its share price.

Baltimore, once valued at £5.5 billion, said it would be seeking to acquire a renewable energy company as it has identified this sector as having the potential to deliver profits.

Baltimore said it has identified a “significant growth opportunity to exploit the unsatisfied and increasing demand from businesses for clean energy on commercially-competitive and reliable terms”.

“The company plans to overcome these inefficiencies by providing a broad range of businesses with a reliable and environmentally -acceptable mix of fuel sources, including low emission and renewable fuels, on the competitive terms they require,” it said in a statement.

To move ahead with the plans Baltimore’s chief executive Bijan Khezri is becoming the company’s non-executive chairman with David Weaver, former managing director of BP in Europe, to become chief executive.

The proposals for the new company and board will be put to shareholders at a special meeting, possibly to be combined with the annual meeting on May 5.

Baltimore yesterday reported a loss of £7.3 million for 2003 compared with a loss of £65m the previous year.

It had cash of £24.7m in the bank, while revenues dropped by 48% to £18m as it sold off the last of its technology operations.

The company is under pressure from its largest shareholder Acquisitor Holdings, which is seeking to oust the board and install its own management. It has criticised the new plan for the company.

Shares in Baltimore fell 8% yesterday to 41p, valuing the company at just under £22m.