Interim Results
December 21 2006 - 2:02AM
UK Regulatory
RNS Number:3884O
Compact Power Holdings PLC
21 December 2006
For immediate release 21 December 2006
COMPACT POWER HOLDINGS PLC
Unaudited Interim Report and Accounts
For the six months ended 30 September 2006
Compact Power Holdings plc, the AIM listed waste and biomass to energy company,
announces interim results for the six months ended 30 September 2006.
Chairman's Statement
Introduction
I am pleased to report the results for the six months ended 30 September 2006.
Results
Increased throughput and higher gate fees at the existing Avonmouth facility
have generated revenues for the period of #1,308,000 (2005: #1,014,000), an
increase of 29%. This combined with performance improvements and cost reductions
has resulted in an improved gross profit for the period of #330,000 (2005:
#185,000). Administration and development costs were 14% higher than the same
period last year when recovery of VAT on professional fees connected with the
Group's AIM listing led to a lower administration cost being reported than would
have otherwise have been the case.
On 16 May 2006 the share capital of BATNEEC (Dumfries) Limited was sold to
Scotgen Limited for a consideration of #236,022 paid in cash. On 16 May 2006
Batneec (Dumfries) Limited repaid amounts owed to Group undertakings of
#763,978, representing the total inter company indebtedness at that date. On
consolidation these transactions have resulted in an exceptional gain on the
sale of a subsidiary company of #770,000. This exceptional gain has led to a net
profit before tax of #106,000 for the period. Before this gain the result was a
loss before tax of #664,000. (2005: loss of #701,000).
At 30 September 2006 the net assets of the Group were #763,000 (2005: #390,000).
During the period Cooper Holdings Limited was repaid capital of #100,000 and
interest of #53,000, and subsequently exercised its right to convert #600,000 of
loan capital into shares at a conversion price of 30.86 pence per share. The
remaining balance of #120,000 of loan capital is repayable in cash. Further
funds were raised during the period through a placing of 3,240,106 new Ordinary
shares with EnviroResources Limited at a price of 30.86 pence per share.
The Group had a net cash inflow in the period of #36,000 (2005: cash outflow of
#137,000) with cash being generated from the issue of new shares and the sale of
Batneec (Dumfries) Limited. At 18 December 2006 cash balances remain tight and
shareholders attention is drawn to Note 5 at the end of this statement relating
to going concern.
Progress
Since my chairman's statement of September included in the report and accounts
to 31 March 2006 there have been a number of significant developments that have
been subject to Stock Exchange announcements.
In November #5,000,000 of grant funding under DEFRA's New Technologies
Demonstrator Programme was secured for use in connection with the proposed new
plant at Avonmouth. Grant monies will be paid in tranches against agreed
milestones as the project progresses. Negotiations to secure the majority of the
required funding for the new plant continue. The current expectation is that all
arrangements should be completed early in the New Year.
Also in November we announced two small, but significant, contracts with QinetiQ
and Italcementi respectively. The Board considers that these contracts
demonstrate how the Compact Power technology can be adapted for different
applications and believe that they provide a strong third party endorsement of
the technology. Work on the QinetiQ contract is already under way.
Negotiations for the sale of a biomass plant, also referred to in recent
announcements, are continuing. They are still expected to be concluded before
the end of December.
Outlook
Trading in the second half has continued in line with the first half and should
now benefit from some contribution from the QinetiQ contract.
The Company has achieved some notable successes in recent months. Nevertheless
the Company's financial position remains dependent on the support of its major
shareholder, Cooper Holdings Limited. This is likely to remain the position for
the next few months until first the biomass plant sale is completed and then
finance for the new plant at Avonmouth is obtained.
Nic Cooper
Chairman
21 December 2006
For further information please contact:
Barrie Newton, Corporate Synergy 01225 424666
Paul Vann/Ken Rees, Winningtons Financial PR 0117 9200092 or 07768 807631
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2006
Six months ended Six months ended Year ended
30 September 2006 30 September 2005 31 March 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Turnover 1,308 1,014 2,136
Cost of sales (978) (829) (1,746)
------- -------- --------
Gross profit 330 185 390
Administrative expenses (879) (768) (1,561)
-------- -------- --------
(549) (583) (1,171)
Exceptional administration costs - - (200)
-------- -------- --------
Operating loss (549) (583) (1,371)
Profit on sale of a subsidiary company 770 - -
Interest receivable - group 4 1 2
Interest payable - group (119) (119) (256)
Exceptional interest payable and similar charges - - (686)
-------- -------- --------
----
Profit / (loss) on ordinary activities
before taxation 106 (701) (2,311)
Tax credit on loss on ordinary activities - - 20
-------- -------- --------
Profit / (loss) on ordinary activities
after taxation 106 (701) (2,291)
Balance brought forward (19,736) (17,445 (17,445)
-------- -------- --------
Balance carried forward (19,630) (18,146) (19,736)
-------- -------- --------
Profit / (loss) per share
Basic profit / (loss) per 2p ordinary share (Note 5) 0.3p (2.4)p (7.8)p
-------- -------- --------
The Group has no recognised gains or losses other than the profit / (loss) for
the above financial period.
All activities are classed as continuing operations.
CONSOLIDATED BALANCE SHEET
as at 30 September 2006
As at As at As at
30 September 2006 30 September 2005 31 March 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Fixed Assets
Intangible
assets 840 875 1,080
Tangible assets 1,577 1,616 1,627
Investments 250 - -
--------- --------- ---------
2,667 2,491 2,707
--------- --------- ---------
Current Assets
Debtors 733 585 647
Cash at bank 46 - 10
--------- --------- ---------
779 585 657
Creditors: Amounts falling due within one year (2,683) (1,686) (3,958)
--------- --------- ---------
Net current liabilities (1,904) (1,101) (3,301)
--------- --------- ---------
Total assets less current liabilities 763 1,390 (594)
Creditors: Amounts falling due after one year - (1,000) -
--------- --------- ---------
Net assets / (liabilities) 763 390 (594)
--------- --------- ---------
Capital and reserves
Called-up equity share capital 688 583 584
Share premium 19,519 17,953 18,022
Share capital to be issued - - 350
Other reserve 186 - 186
Profit and loss account (19,630) (18,146) (19,736)
--------- --------- ---------
Equity Shareholders' funds 763 390 (594)
--------- --------- ---------
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 2006
Six months Six months Year ended
ended 30 ended 30 31 March 2006
September 2006 September 2005
(unaudited (unaudited) (audited)
#'000 #'000 #'000
Net cash outflow from operating activities (820) (555) (949)
Returns on investments and servicing of finance
Interest received 4 1 2
Interest paid (205) (33) (83)
-------- -------- --------
Net cash flow from investments and servicing of finance (201) (32) (81)
Taxation 56 - -
Capital expenditure and financial investment
Purchase of tangible fixed assets (20) - (80)
Disposal of subsidiary undertaking 993 - -
Investment (471) - -
-------- -------- --------
Net cash inflow / (outflow) from capital expenditure
and financial investment 502 - (80)
-------- -------- --------
Net cash outflow before financing (463) (587) (1,110)
Financing
Warrants exercised 1 - 1
New issued share capital 650 - 350
New secured loans - 450 665
Repayment of loans (152) - -
-------- -------- --------
Net cashflow from financing 499 450 1,016
-------- -------- --------
Increase / (decrease) in cash in the period 36 (137) (94)
-------- -------- --------
Notes
1. Reconciliation of operating loss to net cash outflow from operating activities
Six months ended Six months ended Year ended
30 September 2006 30 September 2005 31 March 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating loss (549) (583) (1,371)
Depreciation and amortisation 87 87 174
Increase in debtors (142) (129) (172)
(Decrease) / increase in creditors (216) 70 420
--------- --------- ---------
(820) (555) (949)
--------- --------- ---------
2. Reconciliation of net cash flow to movement in net debt
Six months ended Six months ended Year ended
30 September 2006 30 September 2005 31 March 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Increase / (decrease) in cash 36 (137) (94)
Cash inflow from debt financing - (450) (665)
Cash outflow from repayment of debt finance 152 - -
--------- --------- ---------
Movement in net debt funds resulting from cashflows 188 (587) (759)
Non cash movements:
Conversion of loan to ordinary shares 600 - -
Other (4) (19) (50)
--------- --------- ---------
Movement in net debt in the period 784 (606) (809)
Net debt at beginning of period (1,858) (1,049) (1,049)
--------- --------- ---------
Net debt at end of period (1,074) (1,655) (1,858)
--------- --------- ---------
3. Analysis of net debt
Cashflow Non cash Total
movements
#'000 #'000 #'000
At 1 April 2005 (1,046) (3) (1,049)
Cash flow (587) - (587)
Non cash movements - (19) (19)
--------- --------- ---------
At 30 September 2005 (1,633) (22) (1,655)
Cash flow (172) - (172)
Non cash movements - (31) (31)
--------- --------- ---------
At 31 March 2006 (1,805) (53) (1,858)
Cashflow 188 - 188
Non cash movements - 596 596
--------- --------- ---------
At 30 September 2006 (1,617) 543 (1,074)
--------- --------- ---------
4. Profit / (loss) per share
The calculations of loss per share are based on the following losses and number
of shares:
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
--------- --------- ---------
Profit / (loss) for the financial period 106 (701) (2,291)
--------- --------- ---------
Number of Number of Number of
shares shares shares
--------- --------- ---------
Weighted average number of shares 32,810,754 29,160,961 29,170,799
--------- --------- ---------
5. Going Concern
As noted in the Chairman's statement discussions with external parties
concerning projects involving the Compact Power technology are nearing
completion, and on completion these projects will result in the generation of
revenues in the short-term. The Directors are satisfied that there is likely to
be a positive outcome to these discussions which will provide enough finance for
the Group to meet its short-term and medium-term working capital requirements
and therefore have prepared the interim financial statements on a going concern
basis.
This interim report was approved by the Directors on 20 December 2006. The
financial information set out above does not constitute the Company's financial
statements for the period ended 30 September 2006 or 2005. The financial
information for the year ended 31 March 2006 is derived from the financial
statements for 2006, which have been delivered to the Registrar of Companies.
The auditors have reported on the 2006 financial statements; their report was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
Compact Power Holdings plc
Yara House
St Andrews Road
Avonmouth
Bristol BS11 9HZ
www.compactpower.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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