Environment Industry Magazine issue 15

BANKING ON

GREEN

By Neil Ackroyd, Group chairman, Precision Corporate Finance

Stand first As the green technology industry continues to grow, will we see a fresh round of consolidation in the green technology market? Neil Ackroyd, group chairman of award-winning corporate finance boutique Precision Corporate Finance explains what will drive the market.

Whilst many sectors are experiencing falling profits and increased unemployment, the green technology market is looking decisively more positive. Confidence is growing in this maturing market by the day. For evidence look no

further than the Stobart group’s recent £50 million commitment to its biomass business.

With the coalition Government’s commitment to climate change, public sector support for the green technology industry has continued at a time when many industries are suffering from public sector cuts. This year has already seen the launch of the Green Economy Council in February to advise the Government on how to introduce green growth policies which can only be seen as a positive step for the industry.

Internationally, the opportunities are plentiful for companies in the green technology industry to make the most of a worldwide shift towards sustainable practices with significant investment in green technology in many of the world’s major economies.

However, with this optimism comes a health warning: the onus is now very much on UK-based green technology industry to take advantage of these improving conditions and capitalise on growth when it arrives. Businesses cannot simply rely on Government support for growth.

Given these unusual economic conditions, is the UK industry set for a round of consolidation with a series of mergers and acquisitions (M&A)?

In my view the answer is ‘it depends’, by which I mean it depends on the ongoing health of the

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Wind turbines

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