AgCert shares dive as chief executive leaves and growth warnings are issued

SHARES in AgCert, the gas emissions trading company, shed half their value yesterday as it lost its chief executive and warned on its growth.

The company, based in Dublin, said chief executive Alan Tank has left the company and sales aims for 2006 and 2007 were behind target.

AgCert, which listed on the London stock market earlier this year, saw its shares plunge 110 pence to 120p.

The company is involved in trading gas emissions from firms that underhit their emissions tariffs with those who exceed their limit.

The company said since the Kyoto Protocol came into force in February, establishing a global system to reduce greenhouse gases, a market has been created for AgCert’s business.

The company said: “While the developments at AgCert are clearly disappointing, these are purely operational problems of a short-term nature, and the impact on expected results at AgCert is principally a matter of timing. There are no questions about either the size or the quality of the existing order book for AgCert’s credits, and a number of performance indicators used by AgCert’s management to monitor progress have exceeded their expectations.”

Bill Haskell, a director, will serve as interim chief executive until a permanent replacement is found.

The company has also formed an executive committee of senior managers.

The company released figures yesterday for the six months to end June, which showed a loss of over €7 million and no revenues.

However, following the flotation earlier this year, the company’s balance shows cash and other assets of nearly €82m.

“As a young and developing company facing a new and evolving market, AgCert is in the fortunate position of having already secured advance sales contracts of approximately €74m, and sees an abundance of potential future customers,” the firm said.