LONDON (ShareCast) - D1 Oils is to close its refineries in Middlesbrough and Bromborough after deciding to stop refining food-grade vegetable oils into biodiesel in Europe due to increased competition.

Instead, the company will focus the business on the upstream breeding, planting and managing of new varieties of sustainable, commercial biofuel crops such as jatropha.

Last month, D1 said imports of heavily subsidised biodiesel from the US, called B99, have eroded margins to such a point that it had "no choice but to consider how to reduce operating costs."

“We do not see the UK as offering a viable location for refining and trading to meet domestic demand for the foreseeable future,” it said today.

“Our upstream plant science and related technologies, always core to our vision and business, will now be our main commercial thrust,” added chief executive Elliott Mannis.

The firm also announced a full year loss of £46.1m, almost four times the £12.6m deficit reported a year ago, reflecting poor trading conditions in the second half and the impairment of assets at Bromborough by £10.2m and at Middlesbrough by £12.6m.

In a separate statement, D1 said it has completed the placing of 64.4m shares at 25p each to raise £16.1, or £14.9m after expenses.

In March, the founder and former chairman of D1, Karl Watkin, said he was considering his options on his shareholding, including making an offer for the group.

• News Channel