Companies: ALK   

Bombed-out renewable energy play Alkane Energy, which specialises in methane treatment and electricity generation plants, turned a £21 million pre-tax deficit into a loss of only £284,000 last year and says it is 'moving confidently' towards profitability in 2005. Robert Tyerman reports.

AIM-quoted Alkane, which emigrated from the Full List in 2003, boosted turnover from £7.3 million to £19.8 million in 2004 and halved its operating loss to £753,000. With salary costs down by £236,000, the company benefited from a first full-year contribution from its German methane-from-sewage and landfill acquisition Pro2, which made inroads into the Portuguese biogas markets, achieved its first sale to Russia.

Alkane is now using Pro2's technology to produce its first renewable electricity in Germany. In Britain, chairman John Lander says the company began to reap the benefits of the 2002 Climate Change Levy exemption and is now supervising the construction of four new power generation plants using its gas extraction technology.

In former days, Alkane once raised £30 million at 90p and the shares once traded at 140p. Now at 11.75p, up 0.75p this morning and valuing the company at £10.5 million, they could have speculative possibilities.