TIDMKED
RNS Number : 5000S
Kedco PLC
03 December 2012
Press release 3 December 2012
Kedco plc
("Kedco" or the "Company")
2012 Preliminary Results
Kedco plc (AIM:KED), the renewable energy group focusing on the
production of clean energy in the UK and Ireland, today announces
its Preliminary Results for the full year ended 30 June 2012.
Operational Highlights
-- The Company achieved its objective of transitioning from a clean energy
project developer to an operational project owner with the commencement
of generation of electricity at the 4MW Newry Biomass project in Northern
Ireland
-- Significant progress has been made in relation to the ready-to-construct
12MW Enfield Biomass project in London, including detailed discussions
with EPC contractors and with potential debt and equity partners
-- Pre-planning consultation phase for the Clay Cross Biomass project
is now complete with a full planning application to be submitted by
the end of Q1 2013
-- Successfully negotiated the proposed acquisition of Reforce Energy
Limited ("Reforce"), a project developer with 60 active projects and
a capacity in excess of 40MW at various stages of development in the
UK and Ireland. It is anticipated that the acquisition will be completed
shortly
Financial Highlights
-- Revenue from continuing operations of EUR10.1 million (FY 2011 restated:
EUR 0.9 million)
-- Administrative costs reduced to EUR0.95million (FY 2011 restated:
EUR3.6 million)
-- Loss before tax from continuing operations for the period reduced
to EUR1.6 million (FY 2011 restated: Loss before tax EUR5.3 million)
-- Total loss for the period reduced to EUR2.5 million (FY 2011 restated:
Loss for period EUR4.5 million) includes one-off impairment cost of
EUR1.4 million arising on the revaluation of the Group's Latvian subsidiary,
SIA Vudlande
-- 0.6 cent loss per share for continuing operations (FY 2010 restated:
loss per share 2.3 cent)
Debt Restructuring
-- Successfully negotiated balance sheet restructuring with various lenders,
resulting in the conversion of debt to equity and a reduction of balance
sheet debt by approximately EUR10.8 million
-- Material reduction in ongoing annual interest of approximately EUR1.5
million
Asset Disposal
-- Completed the disposal of a further non-core asset being the entire
interest in Latvian subsidiary for EUR3.0 million, as part of debt
restructuring
Share Placing / Funding
-- Successful placings of shares to new investors in February 2012, May
2012 and November 2012 raising approximately EUR1.5 million
-- Negotiated and agreed term sheet for the provision of GBP1.5 million
in VCT funding for the Newry Biomass project
Gerry Madden CEO commented:
"In the 2011 preliminary announcement the Board promised
shareholders that the Company would successfully commission the
Newry Biomass. I am happy to report that we achieved this objective
on time and on budget in June of this year. We further promised
that we would aggressively pursue other opportunities in our
project pipeline. I am also pleased to report that we have made
substantial progress in adding further projects to the pipeline,
which the Board believes will add shareholder value in the short to
medium term.
"Against this positive backdrop, we have further refined and
refocused the Company's strategy with a clear aim of being one of
the largest independent renewable energy companies in the UK and
Ireland.
"The successful completion of a balance sheet restructuring will
further solidify this strategy and provide a springboard for the
Company to accelerate its project pipeline.
"I was also delighted to announce the impending acquisition of
Reforce Energy which is expected to close imminently; the
transaction is a key endorsement of our strategy. In addition to a
strong pipeline of renewable energy projects, Reforce has a strong
and experienced management team with over 10 years' experience
across 500MW+ of renewable energy projects. In agreeing to the
acquisition, the Reforce management team and shareholders are
demonstrating their belief that there is an attractive value
creation story for the combined group.
The Board has identified the following objectives for the coming
12 months:
1. To complete the financing and begin construction of the 12MW Enfield Biomass project.
2. To complete the financing and start installation of the
second stage of the 4MW Newry Biomass which will be fully
commissioned by end of the 2013.
3. To complete the planning process for a further 4MW extension
to the Newry Biomass project, thereby bringing the capacity up to
8MW.
4. Once the Acquisition of Reforce is finalised, complete the
financing and commissioning of the 800kw Pluckanes Windfarm
project.
5. To obtain planning permission for the 8MW Clay Cross Biomass project.
6. Once the Acquisition of Reforce is finalised, to bring the
Altilow 800kw wind project to a fully consented and
ready-to-construct stage.
7. To obtain at least another six planning permissions for small scale renewable energy projects.
8. To double the size of the Company's current development pipeline.
"The Board believes that the constraining factors of the past
are now behind the Company. With the restructuring, pipeline
progress and proposed acquisition of Reforce, we are more confident
than ever of being able to deliver real shareholder value in the
short to medium term."
-Ends-
Enquiries:
Kedco plc +353 (0)21 483 9104
Gerry Madden, CEO and Interim Finance Director www.kedco.com
Deloitte Corporate Finance - Nomad +44 (0)20 7936 3000
Byron Griffin / David Smith
SVS Securities plc - Broker +44 (0)20 7638 5600
Ian Callaway / Alex Mattey
Abchurch Communications +44 (0)20 7398 7707
Joanne Shears / Ashleigh Lezard / Shabnam Bashir
Chairman's Statement
I am pleased to present the 2012 Annual Report, which provides
an update on a year which has been one of significant development
for the Company. This financial year has without doubt been the
most important in the Group's history.
In September 2012 the Company announced that its biomass
electricity and heat generation plant in Newry, Northern Ireland,
commenced the exportation of power to the grid. This marked the
Company's transition from a pure development company to an operator
of renewable energy assets.
Operationally the Company completed the refocusing of the
business portfolio towards its core, renewable energy power
generation activities. Cost savings have been delivered through the
exit from non-core and non-profitable business segments, creating a
leaner, more efficient business structure with the focus purely on
the renewable energy power generation business.
Since 30 June 2012, the Company has carried out a restructuring
process, with the objectives of stabilising the Company's financial
affairs, positioning the Company in a manner which will enable it
to raise further capital, and enabling the Company to adopt a more
appropriate capital structure. This will facilitate the advancement
of its development project line through the planning and permitting
process. At the Extraordinary General Meeting held on 5 October
2012, shareholders approved resolutions regarding the restructuring
process. The Board is happy to report that this process in now
complete.
The Board took the opportunity to reposition the Company as a
'technology neutral' renewable energy business with a core focus on
developing and delivering operational electricity and heat
generation projects. The Company will focus on both large and
small-scale projects, providing flexibility to maximise existing
land positions whilst diversifying development and technology
risks. This flexible business model will deploy capital where it
can achieve the best return for shareholders whilst still keeping
the focus on the generation of clean energy from either electricity
or heat.
With this in mind the Company entered into negotiations to
acquire Reforce Energy Limited ("Reforce"), a renewable energy
development company focused on small-scale renewable projects
across various technologies. Reforce's key markets are the UK,
Ireland and Northern Ireland where it already has an active
pipeline of over 60 projects with a capacity of in excess of 40MW
at various stages of development. We expect to complete the
acquisition shortly.
The Company's ultimate aim is to be one of the UK and Ireland's
largest independent renewable energy companies, with a diverse
portfolio of operating and development assets across various
renewable energy technologies. To this end, the Company will focus
on developing its existing portfolio as well as considering
strategic bolt-on acquisition opportunities that add generating
potential to its project portfolio.
On behalf of my colleagues on the Board, we wish to express our
thanks to the management and staff who have worked so diligently
over the past year. I look forward to updating shareholders further
on the Company's progress at our Annual General Meeting in
December.
Dermot O'Connell
Non-Executive Chairman
Chief Executive's Report
Operational Review
Kedco's stated aim is to be one of the UK and Ireland's largest
independent renewable energy companies, with a diverse portfolio of
operating and development assets across various renewable energy
technologies.
The Company currently has 67MW of potential power at various
stages of development as set out below:
Newry Biomass - 4MW Biomass combined heat and power ("CHP")
The Company recently announced that its plant in Newry, Northern
Ireland, commenced the exportation of power to the grid. This marks
the Company's transition to an operator of renewable energy assets
from a pure development company. The electricity generated by the
plant is being sold to Bord Gais Eireann under a Power Purchase
Agreement ("PPA"). The Company now intends to move towards the
completion of the next 2MW phase of the project, which is expected
to come online in Q4 2013. The civil and on-site works for this
additional 2MW have already been completed and a deposit has been
paid to secure the expansion of the grid infrastructure for the
project. Kedco has invested GBP6 million through a combination of
equity and loan notes in the project corporate entity and owns 50
per cent. of the ordinary equity and 92 per cent. of the economic
return from the project. Our major shareholder, Farmer Business
Developments plc, owns the remaining 50 per cent. of the ordinary
equity but is only entitled to eight per cent. of the economic
return from the project. The balance of the project funding was
arranged through a financing deal with RBS Ulster Bank, which
committed project finance facilities of up to GBP8 million. Further
updates will be provided in the near future as the project moves
towards full commissioning of the first phase.
We intend to complete the planning process for a further 4MW
extension to the Newry Biomass project, bringing the capacity up to
8MW in the coming year.
Enfield Biomass - 12MW Biomass CHP
The Company's other key asset is the 12MW Enfield Biomass
project located in Enfield, London. This project has full planning
and permitting to convert 60,000 tonnes per annum of waste wood and
has entered into advanced discussions in relation to an offer to
connect to the national grid. The Company has already entered into
a 20 year lease in relation to the site. The Company has various
options available in relation to feedstock sourced locally for the
plant. The Directors believe that this project is one of the most
advanced biomass development projects located in the London region
and the Company intends to progress the project towards financial
close and commencement of construction. Advanced discussions are
currently taking place with potential debt and equity partners in
relation to the project. We intend to complete the financing and
starting construction of the 12MW Enfield Biomass project in the
coming year. A further update will be provided as appropriate.
Cork and Kerry Anaerobic Digestion ("AD") projects
The Company has full planning and permitting for two sites
located in the South of Ireland which could convert 40,000 tonnes
of agricultural and food waste per annum into up to 1.5MW of
electricity and 1.4MW of heat. These projects will qualify for the
Irish Government support scheme for renewable energy under REFIT
III, which covers biomass technologies for the period 2010 to 2015.
This scheme provides for a fixed feed in tariff rate of between
EUR0.10-0.13 per kilowatt hour ("kWh") produced, depending on the
use of heat generated from the plant. A strategic decision
regarding the development of these two projects is currently being
undertaken.
Clay Cross Biomass CHP and AD and Rutland AD
The Company has also invested heavily in planning and permitting
over the last 18 months and it is currently engaged in the
consenting process for an 8MW site in Derbyshire and 1.3MW AD site
in East Anglia, both in the UK.
Pluckanes Wind Farm
Reforce recently made an announcement that it has completed the
purchase of Pluckanes Windfarm Limited ("Pluckanes"), which has
developed a fully consented 800kw single wind turbine project
located in Cork, Ireland. The purchase of the Pluckanes project has
added a construction ready asset to the portfolio, which is
targeted to become operational during 2013. Once the Acquisition is
finalised and with the commissioning of the project next year, the
Company's operational capacity will increase by 40 per cent.
Project Portfolio
The Company is currently in discussion with a number of site
owners in the UK and Ireland regarding future sites for the
development of renewable energy projects. The intention is to
secure sites that will increase the development pipeline to a
minimum 300MW within the next three years.
Reforce whose acquisition will be completed shortly has a
pipeline of over 60 projects with a capacity of in excess of 40MW
across various technologies located in the UK, Ireland and Northern
Ireland.
Financial Review
Revenue in the period amounted to EUR10.1 million and was in
line with expectations (FY 2011 restated: EUR0.9m). The Company
reported a loss for the period of EUR2.5 million, a decrease on the
prior year loss of EUR4.5 million for FY 2011. Included in the loss
of EUR2.5 million is a one-off impairment cost of EUR1.4 million
arising on the revaluation of the group's Latvian subsidiary, SIA
Vudlande. The decrease in losses is attributable to a significant
reduction in administrative costs during the year and a decrease in
financing costs arising from the restructuring of debt.
At 30 June 2012, the Company had net debt of EUR11.9 million (30
June 2011: EUR11.8 million) including cash balances of EUR144,764
(30 June 2010: EUR616,285).
The Company has carried out a restructuring process since the
year end which has significantly strengthened the Group's balance
sheet through the reduction of approximately EUR10.8 million of
debt obligations of the Group, as well as a reduction of its annual
interest charge by approximately EUR1.5 million. The reduction of
EUR10.8 million was achieved through the conversion of debt into
equity and the sale of its Latvian subsidiary, SIA Vudlande.
Outlook
In the 2011 preliminary announcement the Board promised
shareholders that we would aggressively pursue other opportunities
in our project pipeline. I am pleased to report that we have made
substantial progress in adding further projects to the pipeline,
which I believe will add shareholder value in the short to medium
term.
Against this positive backdrop, we have further refined and
refocused the Company's strategy with a clear aim of being one of
the largest independent renewable energy companies in the UK and
Ireland. The successful completion of the balance sheet restructure
further solidifies this strategy and provides a springboard for the
Company to accelerate its project pipeline. In light of the
Company's expanding pipeline of development and acquisition
opportunities, the Directors anticipate undertaking a further
equity fundraising in 2013.
I was also delighted to announce the impending acquisition of
Reforce which is expected to close imminently. I feel that the
transaction provides a key endorsement of our strategy. In addition
to a strong pipeline of renewable energy projects, Reforce has an
experienced management team with over 10 years' experience across
500MW+ of renewable energy projects. The Reforce management team
and shareholders, by agreeing to the acquisition, believe there is
an attractive value creation story for the combined group.
The Board has identified the following objectives for the coming
12 months:
1. To complete the financing and starting construction of the 12MW Enfield Biomass project.
2. To complete the financing and start installation of the 2(nd)
stage of the 4MW Newry Biomass which will be fully commissioned by
end of the 2013.
3. To complete the planning process for a further 4MW extension
to the Newry Biomass project, thereby bringing the capacity up to
8MW.
4. Once the Reforce Acquisition is finalised, complete the
financing and commissioning the 800kw Pluckanes Windfarm
project.
5. To obtain planning permission for the 8MW Clay Cross Biomass project.
6. Once the Acquisition is finalised bring the Altilow 800kw
wind project to a fully consented and ready-to-construct stage.
7. To obtain at least another six planning permissions for small scale renewable energy projects.
8. To double the size of the Company's current development pipeline.
We believe the constraining factors of the past are now behind
the Company. With the restructuring, pipeline progress and proposed
acquisition of Reforce, we are more confident than ever of being
able to deliver real shareholder value in the short to medium
term.
We will continue to focus the Company's resources on bringing
projects to construction ready and financial close stages and in
managing the operations of these projects. Projects will sit in
their own individual special purpose entities and project funding
will take place in those entities. The Company intends to retain an
equity interest in all future projects to the benefit of
shareholders in the listed Company.
Gerry Madden
CEO
Kedco plc
Consolidated statement of comprehensive income and
expenditure
for the year ended 30 June 2012
(Restated)
Notes 2012 2011
EUR EUR
Revenue 10,083,158 936,435
Cost of sales (10,123,726) (1,059,127)
---------------------- ------------
Gross loss (40,568) (122,692)
Operating expenses
Administrative expenses (953,705) (3,617,547)
Other operating income 11,100 7,605
---------------------- ------------
Operating loss (983,173) (3,732,634)
Finance costs (414,424) (1,534,344)
Share of losses on joint ventures
after tax (213,923) (356,228)
Profit on disposal of share
in joint venture - 285,379
Finance income 333 287
---------------------- ------------
Loss before taxation (1,611,187) (5,337,540)
Income tax expense - -
---------------------- ------------
Loss for the year from continuing
operations (1,611,187) (5,337,540)
---------------------- ------------
Profit for the year from discontinued
operations 493,911 802,677
Losses arising on the remeasurement
of assets held for sale (1,364,082) -
---------------------- ------------
Net (loss)/profit for the year
from discontinued operations (870,171) 802,677
---------------------- ------------
Loss for the year - total (2,481,358) (4,534,863)
====================== ============
Loss attributable to:
Owners of the company (2,580,140) (4,698,241)
Non-controlling interest 98,782 163,378
---------------------- ------------
(2,481,358) (4,534,863)
====================== ============
2012 2011
EUR EUR
Euro per share Euro per share
Basic loss per share:
From continuing operations 2 (0.006) (0.023)
======================== ===============
From continuing and discontinued
operations 2 (0.009) (0.020)
======================== ===============
Diluted loss per share:
From continuing operations 2 (0.006) (0.016)
======================== ===============
From continuing and discontinued
operations 2 (0.009) (0.014)
======================== ===============
Kedco plc
Consolidated statement of profit or loss and other comprehensive
income
for the year ended 30 June 2012
2012 2011
EUR EUR
Loss for the financial year (2,481,358) (4,534,863)
Other comprehensive income
Exchange differences arising
on retranslation
of foreign operations (310,844) 21,063
-------------------- ------------
Total comprehensive income
and expense
for the year (2,792,202) (4,513,800)
==================== ============
Attributable to:
Owners of the company (2,890,984) (4,677,178)
Non-controlling interests 98,782 163,378
-------------------- ------------
(2,792,202) (4,513,800)
==================== ============
Kedco plc
Consolidated statement of financial position
At 30 June 2012
Notes 2012 2011
ASSETS EUR EUR
Non-current assets
Goodwill - 549,451
Intangible assets - 505
Property, plant and equipment 757,329 5,060,243
Financial assets 7,608,687 990,000
Total non-current assets 8,366,016 6,600,199
------------------- -------------
Current assets
Inventories 50,000 1,613,026
Amounts due from customers under construction
contracts 1,355,212 9,425,279
Trade and other receivables 1,605,518 2,848,088
Cash and cash equivalents 144,764 616,285
------------------- -------------
Total current assets 3,155,494 14,502,678
Assets classified as held for sale 6,584,239 -
------------------- -------------
Total current assets 9,739,733 14,502,678
=================== =============
Total assets 18,105,749 21,102,877
=================== =============
EQUITY AND LIABILITIES
Equity
Share capital 4,106,808 3,543,999
Share premium 19,375,525 19,038,300
Shared based payment reserves - 492,580
Retained earnings - deficit (25,207,673) (22,316,689)
------------------- -------------
(Deficit)/equity attributable to equity
holders of the parent (1,725,340) 758,190
Non-controlling interest 898,010 799,228
------------------- -------------
Total (deficit)/equity (827,330) 1,557,418
------------------- -------------
Non-current liabilities
Borrowings 2,425,025 7,958,393
Deferred income - government grants - 36,915
Finance lease liabilities - 373
Share of net liabilities of jointly
controlled entities 509,599 18,867
Deferred tax liability - 268,062
Total non-current liabilities 2,934,624 8,282,610
------------------- -------------
Current liabilities
Amounts due to customers under construction
contracts 1,110,090 1,272,735
Trade and other payables 2,595,766 5,481,674
Borrowings 9,661,645 4,494,676
Deferred income - government grants - 9,444
Finance lease liabilities 373 4,320
------------------- -------------
13,367,874 11,262,849
Liabilities associated with assets 2,630,581 -
held for sale
------------------- -------------
Total current liabilities 15,998,455 11,262,849
------------------- -------------
Total equity and liabilities 18,105,749 21,102,877
=================== =============
Kedco plc
Consolidated statement of cash flows
for the year ended 30 June 2012
Notes 2012 2011
EUR EUR
Cash flows from operating activities
Loss for the financial year (2,481,358) (4,394,977)
Adjustments for:
Income Tax 69,731
Share based payments (492,580) 164,197
Depreciation of property, plant and equipment 596,418 634,734
Amortisation of intangible assets 2,275 71,396
Profit on disposal of property, plant
and equipment (67,236) (88,881)
Impairment of property, plant and equipment - 424,668
Impairment of intangible assets - 94
Impairment of assets held for sale 1,364,082 -
Write off of unpaid share capital 492,563
Unrealised foreign exchange gain 163,677 6,941
Share of losses of jointly controlled
entities after tax 213,923 356,228
Decrease in provision for impairment
of trade receivables (71,924) (166,014)
(Decrease)/increase in impairment of
inventories (294,715) 281,921
Decrease in deferred income (10,302) (10,303)
Interest expense 506,754 1,627,690
Profit on disposal of share in joint
venture - (285,379)
Interest income (338) (364)
------------ ------------
Operating cash flows before working capital
changes (9,030) (1,378,049)
(Increase)/decrease in:
Amounts due from customers under construction
contracts 8,070,067 (133,368)
Trade and other receivables 4,336 (174,720)
Inventories 276,377 (284,932)
(Decrease)/increase in:
Amounts due to customers under construction
contracts (162,645) (29,622)
Trade and other payables (2,476,219) (717,781)
Cash from/(used in) operations 5,702,886 (2,718,472)
Income taxes paid (9,108) (55,968)
------------ ------------
Net cash from/(used in) operating activities 5,693,778 (2,774,440)
------------ ------------
Cash flows from investing activities
Additions to property, plant and equipment (644,737) (573,181)
Proceeds from sale of property, plant
and equipment 126,951 113,229
Additions to intangible assets (1,770) -
Additions to investments in jointly controlled (6,660,010) -
entities
Proceeds from disposal of share in joint
venture - 134,840
Interest received 338 364
------------ ------------
Net cash used in investing activities (7,179,228) (324,748)
------------ ------------
Cash flows from financing activities
Proceeds from borrowings 2,896,483 4,142,687
Repayments of borrowings (2,293,628) (1,583,381)
Proceeds from issuance of ordinary shares 644,250 1,932,815
Payments of finance leases (58,496) (36,803)
Interest paid (255,842) (590,526)
------------ ------------
Net cash from financing activities 932,767 3,864,792
------------ ------------
Net increase/(decrease) in cash and cash
equivalents (552,683) 765,604
Cash and cash equivalents at the beginning
of the financial year 208,587 (557,017)
------------ ------------
Cash and cash equivalents at the end
of the financial year (344,096) 208,587
============ ============
Kedco plc
Notes to the consolidated financial statements
for the year ended 30 June 2012
1. Basis of Preparation
The Group's consolidated financial statements have been prepared
in accordance with International Financial Reporting Standards
(IFRS) effective at 30 June 2012 for all periods presented as
issued by the International Accounting Standards Board. The
consolidated financial statements are also prepared in accordance
with IFRS as adopted by the European Union ('EU').
The consolidated financial statements are prepared under the
historical cost convention. The principal accounting policies set
out below have been applied consistently by the parent company and
by all of the Company's subsidiaries to all periods presented in
these consolidated financial statements.
The financial statements of the parent company, Kedco plc have
been prepared in accordance with accounting standards generally
accepted in Ireland and Irish statute comprising the Companies
Acts, 1963 to 2012.
As described in the Chief Executive's Report, the Company
continues to invest capital in developing customer and partner
relationships in the UK and Ireland. The Company has also continued
to develop and expand its pipeline of projects. These activities
resulted in the Company continuing to report reduced losses for the
year to 30 June 2012.
Since 30 June 2012, the Company has carried out a restructuring
process, with the objective of stabilising the Company's financial
affairs, position the Company in a manner which will enable it to
raise further capital, and enable the Company to adopt a more
appropriate capital structure, which will facilitate the
advancement of its development project line through the planning
and permitting process. Resolutions approving the restructuring
process were agreed by the members of the Company at an
Extraordinary General Meeting of the Company held on 5 October
2012.
The restructuring has significantly strengthened the Group's
balance sheet through the reduction of approximately EUR10.8
million of Debt Obligations from the group and a reduction of its
annual interest charge by approximately EUR1.5 million. The
reduction in EUR10.8 million was achieved through the conversion of
debt into equity (EUR5.8 million) and the sale of its Latvian
subsidiary, SIA Vudlande.
In conjunction with the above restructuring, the Company raised
approximately EUR0.95 million in an equity placing in November
2012. The proceeds of the Fundraising will be used by the Company
to meet its on-going working capital requirements including the
continued development of its project pipeline. The Company also
announced in November 2012 that it had secured a conditional offer
of further financing of GBP1.5 million for the further development
of its Newry Power Plant.
The financial statements have been prepared on a going concern
basis. The Directors have given careful consideration to the
appropriateness of the going concern concept in the preparation of
the financial statements. The validity of the going concern concept
is dependent upon finance being available for the Group's working
capital requirements and for the continued investment in the
Group's strategy of identifying, developing, building and operating
power generating plants so that the Group can continue to realise
its assets and discharge its liabilities in the normal course of
business. The financial statements do not include any adjustments
that would result should the above conditions not be met.
After making enquiries and considering the matters referred to
above, the Directors believe that solid progress towards securing
finance has been and is being made. The Directors have a reasonable
expectation that the Group will have adequate resources to continue
in operational existence for the foreseeable future. For these
reasons the Directors continue to adopt the going concern basis of
accounting in preparing the financial statements.
2. (Loss)/Earnings per share 2012 2011
EUR EUR
Euro per Euro per
share share
Basic (loss)/earnings per share
From continuing operations (0.006) (0.023)
From discontinued operations (0.003) 0.003
--------- ---------
Total basic loss per share (0.009) (0.020)
========= =========
Diluted (loss)/earnings per share
From continuing operations (0.006) (0.016)
From discontinued operations (0.003) 0.002
--------- ---------
Total diluted loss per share (0.009) (0.014)
--------- ---------
Basic (loss)/earnings per share
The loss and weighted average number of ordinary shares used in
the calculation of the basic (loss)/earnings per share are as
follows:
2012 2011
EUR EUR
Loss for year attributable to equity
holders of the parent (2,580,140) (4,698,241)
-------------- --------------
(Loss)/profit for the year from
discontinued operations used in
the calculation of basic earnings
per share from discontinued operations. (870,171) 802,677
-------------- --------------
Losses used in the calculation of
basic loss per share from continuing
operations (1,709,969) (5,500,918)
-------------- --------------
Weighted average number of ordinary
shares for
the purposes of basic loss per share 274,612,376 236,242,380
-------------- --------------
Diluted (loss)/earnings per share
The loss used in the calculation of all diluted earnings per
share measures is the same as those for the equivalent basic
earnings per share measures, as outlined above.
The weighted average number of ordinary shares for the purposes
of diluted loss per share reconciles to the weighted average number
of ordinary shares used in the calculation of basic loss per share
as follows:
2012 2011
Weighted average number of ordinary
shares used
in the calculation of basic loss
per share 274,612,376 236,242,380
"A" Shares in issue 99,117,952 99,117,952
------------ ------------
Weighted average number of ordinary
shares used in the
calculation of diluted earnings
per share 373,730,328 335,360,332
------------ ------------
Share warrants which could potentially dilute basic earnings per
share in the future have not been included in the calculation of
diluted earnings per share as they are anti-dilutive for the
periods presented. The dilutive effect as a result of share
warrants in issue as at 30 June 2012 would be to increase the
weighted average number of shares by 27,392,915 (2011:
30,672,924).
Convertible preference shares, which could potentially dilute
basic earnings per share in the future, have not been included in
the calculation of diluted earnings per share as they are
anti-dilutive for the periods presented. The dilutive effect as a
result of preference shares in issue as at 30 June 2012 would be to
increase the weighted average number of shares by 3,125,000 (2011:
3,125,000).
Convertible loans which could potentially dilute basic earnings
per share have not been included in the calculation of diluted
earnings per share as they are anti-dilutive for the periods
presented. The dilutive effect as a result of loans in issue as at
30 June 2012 would be to increase the weighted average of shares by
21,942,154 (2011: 9,500,000).
3. Events after the balance sheet date
In its circular to Shareholders on 10 September 2012, the Group
announced details of a proposed restructuring which would remove
debt obligations from the Company such that it will have a suitable
basis on which to raise further equity finance in the future. The
restructuring has significantly strengthened the Group's balance
sheet through the reduction of approximately EUR10.8 million of
Debt Obligations from the group and a reduction of its annual
interest charge by approximately EUR1.5 million. The reduction in
EUR10.8 million was achieved through the conversion of debt into
equity (EUR5.8 million) and the sale of its Latvian subsidiary, SIA
Vudlande. Enfield Biomass, a company in which Kedco did hold a 50
per cent. interest, will as a result of the restructuring become a
wholly-owned subsidiary of the Group. In conjunction with the above
restructuring, the Company raised approximately GBP0.8 million in
an equity placing in November 2012.
On 12 September 2012, the Group announced that the Company's
plant in Newry, Northern Ireland, which will produce a total of
4MW, has commenced the exportation of power to the grid from its
biomass electricity and heat generation plant. This marks the
Company's transition to an operator of renewable energy assets from
a pure development company.
On 18 September 2012, the Group announced that it had signed a
heads of agreement with Reforce Energy Limited, in relation to the
acquisition of its entire share capital. Both parties are now
proceeding to final legal contracts and the completion of all
pre-conditions relating to the Acquisition. The consideration for
the Acquisition, if completed, would be satisfied by the issue of
new Kedco ordinary shares and would not involve cash consideration.
Reforce Energy Limited is a renewable energy development company
focused on small-scale renewable projects across various
technologies. The company's key markets are the UK, Ireland and
Northern Ireland where it already has an active pipeline of over 60
projects with a capacity of in excess of 40MW at various stages of
development.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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