RNS Number : 5601V
Alternative Energy Limited
30 May 2008
For Immediate Release 30 May 2008
ALTERNATIVE ENERGY LIMITED ("AEL" or the "Company")
UNAUDITED HALF YEAR REPORT
Alternative Energy Limited is pleased to present its Half Year Report for the six months ended 29th February 2008. The interim results
are reported on a basis consistent with International Financial Reporting Standards and are the Company's first interim results.
AEL was incorporated in Singapore on 26 December 2006 and effectively commenced business as an investment company upon its admission to
trading on the Alternative Investment Market (AIM) in London in October 2007, at which time the Company raised approximately US$7,800,000
for the purposes of, inter alia, the development and acquisition of technologies and businesses in the alternative energy sector.
Since the Company's inception, the need for technologies and business solutions to supplement or replace traditional fossil fuels have
become even more apparent and urgent, with the price of oil rising to in excess of US$130 per barrel and the environmental impact of
traditional methods continuing to cause alarm. Bio-fuels, once considered a potential replacement for fossil fuels, have also given rise to
concerns because of competing land use and their potential impact on food prices.
Against this background Alternative Energy Limited has been quietly and efficiently working for a commercially viable alternative
technology. Our admission to AIM was carried out competently and within budget by our team of professionals in London, led by our NOMAD
Beaumont Cornish. We were then fortunate enough to identify and acquire a first class research and development team led by Dr Eric Goh in
the form of Renewable Power Pte Ltd.
Since their acquisition by AEL in October 2007, Dr Eric Goh, Dr Tay Boon Hou and their team have been evaluating a number of different
technologies for potential acquisition by the Company, primarily in the field of solar and wind generated energy, and have themselves
developed, in the course of their research, further technologies which may lead to the Company obtaining its own proprietary technology.
In the light of what has been achieved the expenditure of US$493,730 by the Company, as stated in the interim statements, reflects value
for money. As this is the Company's initial year, the Group comprising AEL and its subsidiary, Renewable Power Pte Ltd, incurred a group net
loss of US$369,049.
The Company's research and development team are continuing to evaluate potential technologies and I feel confident that the Company will
achieve its goal of obtaining a significant and commercially attractive business or technology in the alternative energy sector in the
forthcoming months.
Contacts:
Christopher Nightingale, Chairman Tel: +65 6532 2122
Richard Lascelles, Director Tel: +44 207 408 1067
Roland Cornish, Beaumont Cornish Limited Tel: +44 207 628 3396
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 29 FEBRUARY 2008
Group *Group
Unaudited Audited
Note 29.2.2008 31.8.2007
US$ US$
Assets
Non-current assets
Property, plant and equipment 4 157,355 -
Goodwill 5 464,726 -
Total non-current assets 622,081 -
Current assets
Other receivables 6 78,575 -
Cash and cash equivalents 7 7,003,863 6,498,496
Total current assets 7,082,438 6,498,496
Total assets 7,704,519 6,498,496
Equity and liabilities
Capital and reserves
Issued capital 8 7,916,392 3,604,496
Accumulated losses (398,998) (29,949)
Currency translation reserve 6,572 -
Total equity 7,523,966 3,574,547
Current liabilities
Other payables and accruals 9 180,553 2,923,949
Total equity and liabilities 7,704,519 6,498,496
* The comparative information as at 31 August 2007 relates to when the Group was a shell company with no subsidiary.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
UNAUDITED CONSOLIDATED INCOME STATEMENT
Group *Group
1.9.2007 to 29.2.2008 26.12.2006 to 31.8.2007
Unaudited Audited
Note US$ US$
Other operating expenses (493,730) (47,118)
Interest income 124,681 17,169
Loss before income tax (369,049) (29,949)
Income tax 10 - -
Net loss for the financial (369,049) (29,949)
period
US$ cent US$ cent
Basic and diluted loss per 11 � �
share
* The comparative information for the period 26 December 2006 (date of incorporation) to 31 August 2007 relates to when the Group was
a shell company with no subsidiary.
� denotes a figure which is less than US$0.01 cents
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
UNAUDITED STATEMENT OF CHANGES IN EQUITY
Attributable to the equity holders of the parent
Note Issued Currency translation Accumulated
capital reserve losses
Total
US$ US$ US$ US$
Audited Audited Audited Audited
*Group
As at 26 December 2006, date 4 - - 4
of
incorporation
Loss for the financial period - - (29,949) (29,949)
Issue of shares 8 3,858,332 - - 3,858,332
Issue expenses 8 (253,840) - - (253,840)
As at 31 August 2007 3,604,496 - (29,949) 3,574,547
Issued Currency translation Accumulated
capital reserve losses
Total
US$ US$ US$ US$
Unaudited Unaudited Unaudited Unaudited
Group
As at 1 September 2007 3,604,496 - (29,949) 3,574,547
Currency translation - 6,572 - 6,572
differences
Net income recognised directly - 6,572 - 6,572
in equity
Loss for the financial period - - (369,049) (369,049)
Total recognised income and - 6,572 (369,049) (362,477)
expenses for
the financial period
Issue of shares 8 4,341,663 - - 4,341,663
Issue expenses 8 (29,767) - - (29,767)
As at 29 February 2008 7,916,392 6,572 (398,998) 7,523,966
* The comparative information for the period 26 December 2006 (date of incorporation) to 31 August 2007 relates to when the Group was
a shell company with no subsidiary.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Group *Group
1.9.2007 to 26.12.2006 to 31.8.2007
29.2.2008
Unaudited Audited
US$ US$
Cash flows from operating
activities
Loss after income tax (369,049) (29,949)
Adjustments for:
Depreciation 8,883 -
Interest income (124,681) (17,169)
Operating cash outflow before (484,847) (47,118)
working capital changes
Changes in working capital:
Other receivables (20,798) -
Other payables and accruals (284,488) 298,950
Net cash (used in)/generated (790,133) 251,832
from operating activities
Cash flows from investing
activities
Interest received 124,681 17,169
Acquisition of subsidiary, net 36,575 -
of cash acquired (Note 12)
Purchase of property, plant (159,225) -
and equipment
Net cash generated from 2,031 17,169
investing activities
Cash flows from financing
activities
Proceeds from issue of shares, 1,286,897 3,604,496
net of issue costs (Note 13)
Cash raised for shares not yet - 2,624,999
issued (Note 9)
Net cash generated from 1,286,897 6,229,495
financing activities
Effect of foreign exchange 6,572 -
rate changes
Net increase in cash and cash 505,367 6,498,496
equivalents
Cash and cash equivalents at 6,498,496 -
the beginning of the financial
period
Cash and cash equivalents at 7,003,863 6,498,496
the end of the financial year
* The comparative information for the period 26 December 2006 (date of incorporation) to 31 August 2007 relates to when the Group was
a shell company with no subsidiary.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008
1. General
The Company was incorporated in Singapore on 26 December 2006 under the name of Alternative Energy Pte. Ltd. On 11 July 2007 the Company was
converted into a public limited company and changed its name to Alternative Energy Limited (the *Company*). The Company is domiciled in
Singapore.
On 12 October 2007, the Company was successfully admitted to trading on AIM, a market operated by the London Stock Exchange.
The principal activity of the Company is the holding of investments. The registered office of the
Company is at 50 Raffles Place, �17-01 Singapore Land Tower, Singapore 048623.
The principal activity of the Company*s wholly-owned subsidiary, Renewable Power Pte Ltd, a company incorporated in Singapore, is that of
research and development of renewable energies for household consumers.
The interim financial statements of the Company and its subsidiary (the *Group*) for the financial period ended 29 February 2008 were
authorised for issue by the Board of Directors on 27 May 2008.
2. Basis of preparation
The financial information set out in this report is based on the consolidated financial statements of Alternative Energy Limited and its
subsidiary company (together referred to as the *Group*). These accounts have been prepared in accordance with International Financial
Reporting Standards (IFRS as adopted by the EU). Theinterim results have not been audited, but were the subject of an independent review
carried out by the Company*s auditors, BDO Raffles. As such these unaudited results do not constitute statutory accounts of the Company or
the Group. These accounts have been prepared in accordance with the accounting policies that are expected to be applied in the Report and
Accounts of Alternative Energy Limited for the year ended 31 August 2008.
The consolidated financial statements incorporate the results of Alternative Energy Limited and its subsidiary undertaking as at 29 February
2008, using the acquisition method of accounting. These financial statements are presented in United States dollars, the functional currency
of the group.
Comparative information
The Company was admitted to trading on AIM, a market operated by the London Stock Exchange on 12 October 2007, accordingly the results for
the six months ended 29 February 2008 are the Group*s first interim results and therefore there are no comparatives for the six months ended
28 February 2007.
The comparative information disclosed in this report is in respect of the Company for the period from 26 December 2006 (date of
incorporation) to 31 August 2007 when the Company was a shell company with no subsidiary. The comparative information has been extracted
from first annual audited financial statements of the Company which received an unqualified auditors* report.
Accordingly, the comparative information is not comparable to the Group*s first interim results for the six months ended 29 February
2008.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008 (continued)
3. Accounting policies
The unaudited interim financial information for the six months ended 29 February 2008 do not constitute statutory accounts. The
accounting policies adopted for the unaudited interim financial information period from 1 September 2007 to 29 February 2008 are the same,
in all material respects, as those that will be adopted by the Group in the financial statements for the year ended 31 August 2008.
4. Property, plant and equipment
Renovation Computers Machinery, office Total
equipment, furniture
and fittings
Group US$ US$ US$ US$
Cost
As at 1 September 2007 - - - -
Acquisition of subsidiary - 4,787 2,226 7,013
Additions 94,246 40,047 24,932 159,225
As at 29 February 2008 94,246 44,834 27,158 166,238
Accumulated depreciation
As at 1 September 2007 - - - -
Depreciation charge for the 4,768 2,849 1,266 8,883
period
As at 29 February 2008 4,768 2,849 1,266 8,883
Net book value
As at 29 February 2008 89,478 41,985 25,892 157,355
As at 31 August 2007 - - - -
5. Goodwill
Group Group
29.2.2008 31.8.2007
US$ US$
Goodwill (Note 12) 464,726 -
Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable assets,
liabilities and contingent liabilities acquired. Cost comprises the fair values of assets given, liabilities assumed and equity instruments
issued plus any direct costs of acquisition.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units and is not amortised
but is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008 (continued)
5. Goodwill (continued)
As at 29 February 2008, the directors have assessed and determined that the goodwill is not impaired. Such assessment and determination
require the directors to make judgments, estimates and assumptions. These estimates and associated assumptions are continually evaluated and
are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
6. Other receivables
Group Group
29.2.2008 31.8.2007
US$ US$
Other receivables 24,711 -
Deposits 47,385 -
Prepayments 6,479 -
78,575 -
Other receivables include US$7,206 due from Global Voice Group Limited; Christopher Nightingale is a director of Global Voice Group
Limited.
Other receivables are denominated in the following currencies:
Group Group
29.2.2008 31.8.2007
US$ US$
Singapore dollar 61,070 -
United States dollar 17,505 -
78,575 -
7. Cash and cash equivalents
Group Group
29.2.2008 31.8.2007
US$ US$
Cash on hand 3,736 4
Cash at banks 874,960 6,498,492
Fixed deposits 6,125,167 -
7,003,863 6,498,496
Fixed deposits are placed with the bank, with original maturing periods of not more than 90 days. Interest rate ranges from 1.5% to 4.4%
per annum.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008 (continued)
7. Cash and cash equivalents (continued)
Cash and cash equivalents are denominated in the following currencies:
Group Group
29.2.2008 31.8.2007
US$ US$
Singapore dollar 144,978 1,921
United States dollar 6,858,885 6,496,575
7,003,863 6,498,496
8. Issued capital
Group Group
Number of shares fully paid of the legal parent 29.2.2008 31.8.2007
At beginning of financial period 570,445,035 2
Ordinary shares issued for cash 603,235,765 570,445,033
Ordinary shares issued as full settlement for 9,411,764 -
purchase
consideration for acquisition of subsidiary
(Note 12)
At end of financial period 1,183,092,564 570,445,035
Group Group
29.2.2008 31.8.2007
Issued and fully-paid US$ US$
570,445,035 ordinary shares at beginning of financial 3,604,496 4
period
Share issued 4,341,663 3,858,332
Share issue costs (29,767) (253,840)
1,183,092,564 ordinary shares at end of period 7,916,392 3,604,496
9. Other payables and accruals
Group Group
29.2.2008 31.8.2007
US$ US$
Other payables 5,017 -
Share application monies - 2,624,999
Accruals 111,871 268,618
Provision for directors' fees 33,333 -
Amount due to a director 30,332 30,332
180,553 2,923,949
Share application monies relate to cash received in advance in respect of shares issued subsequent to 31 August 2007.
Amount due to a director is interest-free, unsecured and repayable on demand.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008 (continued)
9. Other payables and accruals (continued)
Other payables and accruals are denominated in the following currencies:
Group Group
29.2.2008 31.8.2007
US$ US$
British pound 99,296 238,310
Singapore dollar 47,924 60,640
United States dollar 33,333 2,624,999
180,553 2,923,949
10. Income tax
There is no income or deferred tax expense as the Group has no chargeable income for the financial period.
11. Basic and diluted loss per share
Basic loss per share for the six months to 29 February 2008 has been calculated on the basis of net loss after income tax of US$369,049
(2007: US$29,949) and the average number of shares in issue of 1,053,184,580 (2007: 71,019,263).
There are no potentially dilutive shares in issue.
12. Acquisition of a subsidiary
On 30 October 2007, the Company entered into a sale and purchase agreement with Dr Goh Swee Ming (the "vendor") pursuant to which the
vendor sold his shareholding interest of 100% in Renewable Power Pte Ltd, a company incorporated in Singapore, to the Company for a
consideration of US$400,000 which was fully paid or satisfied by way of the issuance of 9,411,764 new ordinary shares in the Company at the
issue price of US$0.0425 per ordinary share (the "consideration shares").
The allotted and issued consideration shares rank pari passu in all respects with the then existing ordinary shares of the Company save
that they will not rank for any dividends, rights, allotments or any distribution, the record date of which falls before the date of issue
of the consideration shares. The consideration shares represented approximately 0.79% of the enlarged issued share capital of the Company
upon the completion of this acquisition.
Subsequent to the above transactions, Dr Goh Swee Ming became a director of the Company on 14 March 2008.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008 (continued)
12. Acquisition of a subsidiary (continued)
The carrying amount and fair value of identifiable assets and liabilities of Renewable Power Pte Ltd as at the date of acquisition and
the net cash inflow on acquisition were as follows:
Net book value on Fair value recognised on acquisition
acquisition
US$ US$
Property, plant and equipment 7,013 7,013
Cash and bank balances 36,575 36,575
Current assets (other than 57,777 57,777
cash and bank balances)
Current liabilities (166,091) (166,091)
Total net liabilities (64,726) (64,726)
Goodwill (Note 5) 464,726
Total purchase consideration 400,000
The purchase consideration is fully settled by the issuance of 9,411,764 ordinary shares of the Company.
2007
US$
Consideration paid by cash -
Cash acquired 36,575
Net cash inflow on acquisition of subsidiary 36,575
Goodwill is attributable to the acquisition of subsidiary which is expected to provide future economic benefits in excess of the normal
return generated from the acquired net identifiable assets.
Future economic benefits are expected to arise from the acquisition of this subsidiary as its presents several strategic advantages to
the Group as follows:
(a) In house research capacity - rapid expansion
The availability of its own in house research team will both enable the Group to quickly analyse the
technical viability of investment proposals and will also enable the Group to develop its own technical
competence - a very important element in an area with many developing technologies and where the
cost of external consultancy could be very high.
(b) Confidentiality
The availability of an in house technical team will also enable the Group to ensure stricter confidentiality
in technologies and investments which it analyses and reviews which would be vital in a technologically
developing and sensitive market.
(c) Savings in infrastructure set-up
The subsidiary has acquired an office cum laboratory facility. This facility has already been fitted with renovations worth about
S$500,000. Upon acquisition, the Group enjoys a saving in terms of sunk cost and renovation time, compared to the option of acquiring a new
research facility on its own.
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARY
NOTES TO THE UNAUDITED FINANCIAL INFORMATION
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2007 TO 29 FEBRUARY 2008 (continued)
12. Acquisition of a subsidiary (continued)
(d) Singaporean team
All staff from the subsidiary are all Singapore citizens or permanent residents. Singapore is a recognised financial centre which is
also a well known supporter of the development of technology. Singapore's proximity to the booming manufacturing and technology centres of
Asia, coupled with the Singapore government's expressed desire to delevop alternative energy technologies means that basing a research and
development team in Singapore may bring additional benefits in the way of opportunities, economic efficiencies and grants.
13. Major non-cash transactions during the period
During the period, the Company issued ordinary shares worth US$400,000 in respect of the acquisition of Renewable Power Pte Ltd (see
Note 12).
In addition, as disclosed in Note 9, US$2,624,999 was received in the prior period in respect of shares issued during the current
period.
Proceeds from issue of shares, net of issue costs of US$1,286,897 is stated after the effects of these transactions.
14. Subsequent event
On 18 April 2008, the Company fully subscribed to all ordinary shares of Alternative Energy Technology Pte Ltd ("AETPL"), a company
incorporated in Singapore, for a consideration of S$2. Consequently, AETPL became a wholly-owned subsidiary of the Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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