TIDMKED
RNS Number : 2382U
Kedco PLC
29 November 2013
Press release 29 November 2013
Kedco plc
("Kedco" the "Group" or the "Company")
Final Results for the year ended 30 June 2013
Kedco plc (AIM:KED), the renewable energy group focusing on the
production of clean energy in the UK and Ireland, today announces
its Final Results for the full year ended 30 June 2013.
Operational Highlights
-- Continued strong progress on the Enfield Project including the appointment
of MWH Global Inc ("MWH") as EPC provider and the Foresight Group
as the preferred funding partner.
-- Successful energisation of the 800kw Pluckanes wind turbine project
and the export of electricity to the national grid.
-- Increased the size of development portfolio from 70MW at the end of
2012 to 157MW at November 2013.
-- The handover of the Newry Biomass Advanced Gasification Plant from
final commissioning of Phase 1 and its continuing sale of electricity
to the Northern Ireland Grid.
Financial Highlights
-- Revenue in the period amounted to EUR2.6 million and was in line with
management expectations (FY 2012: EUR10.1million). Turnover in the
Group relates to the sale of equipment to complete Phase One of the
Newry joint venture project.
-- Administrative costs increased to EUR2.7million (FY 2012:EUR1.0million)
primarily as a result of a loss on foreign exchange EUR443k versus
a gain in 2012 of EUR392k; impairment of freehold property in Ireland
of EUR319k; consultancy fees of EUR274K charged to a jointly controlled
entity in FY2012 and credits in FY2012 relating to revision of accounting
estimates of EUR250K. On a like for like basis, administrative expenses
increased slightly to EUR1.93 million from EUR1.87 million, which
is a result of the acquisition that took place in the year.
-- Loss for the period of EUR 2.8 million, (FY 2012 loss: EUR2.5million).
-- At 30 June 2013, the Group had net debt of EUR4.6 million (30 June
2012: EUR12.0 million).
-- 0.4 cent loss per share from continuing operations (FY 2012: loss
per share 0.6 cent).
Share Placing / Funding
-- Raised approximately EUR1 million in equity and received GBP500,000
in loans from existing and new shareholders in the financial year.
-- Entered into a rolling, monthly working capital facility on 20 August
2013 with its 26.79% shareholder Farmer Business Developments plc.
capped at EUR500,000.
-- The Group announced on 20 August 2013 that its wholly owned subsidiary,
Reforce Energy Limited, had raised EUR215,000 in loan notes from private
investors and that Ulster Bank Ireland Limited have made available
working capital and other facilities totalling GBP750,000 to be used
to fund the working capital needs and the continued build out of the
Newry Biomass Limited biomass project located in Newry, Northern Ireland.
Acquisition and Restructuring
-- Successfully negotiated the acquisition in December 2012 of Reforce
Energy Limited, a project developer with a wind portfolio of 88 MW
at various stages of development.
-- Completed the disposal of a non-core asset being the entire interest
in Latvian subsidiary for EUR3million, as part of 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.
Posting of Accounts and Notice of AGM
The Company's Annual Report for the year ended 30 June 2013 and
Notice of AGM are being posted to shareholders today and copies are
available on the Company's website www.kedco.com.
Posting of Circular
The Company also announces the posting of a circular to
shareholders today which includes the invitation to a general
meeting at which shareholders will have the opportunity to vote on
a capital restructuring (share consolidation), change of name and
new authorities for the directors to issue capital.
The AGM will be held at The Park Inn Airport Hotel, Cork,
Ireland on 20 December 2013 at 9.00a.m.
-Ends-
Enquiries:
Kedco plc +353 (0)21 483 9104
Gerry Madden, CEO www.kedco.com
Shore Capital - Nomad and Broker +44 (0)20 7408 4090
Pascal Keane/Anita Ghanekar
Abchurch Communications - Financial PR +44 (0)20 7398 7707
Janine Brewis / Joanne Shears / Shabnam Bashir
Chairman's Statement
Kedco operates in energy markets in the UK and Ireland where the
renewable energy sector remains central to the plans of both
Governments for their respective energy markets. Key policy
decisions on support for renewable energy both now and in the
future continue to be favourable. The announcement in a joint
statement by both governments in June 2013 on the development of
renewable trading between the two countries illustrates this
further. Rising fossil fuel prices and the security of energy
supply remain an ongoing concern and reflect the need to develop
greater energy independence and sustainability.
The Group is a 'technology neutral' renewable energy business
with a core focus on developing and delivering operational
electricity and heat generation projects. The Group focuses on both
medium sized and small-scale projects, providing flexibility
tomaximise 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. Diversification in the business
model, management experience, proper structuring of contracts at an
early stage and delegation of construction and operating risk to
financially strong counterparties are all key aspects of Kedco's
risk mitigation.
During the course of the year we saw a strengthening of the
business foundation of the Company.
We are encouraged by our progress so far this year. The Group
has performed in line with expectations and we are successfully
delivering on our development plans. Important highlights include
the handover of the Newry Biomass Advanced Gasification Plant from
final commissioning of Phase 1 and its continuing sale of
electricity to the Northern Ireland Grid, the energisation of the
Pluckanes wind turbine and its commencement of the sale of
electricity to the Irish Grid and the continuing progress of the
Enfield Biomass Gasification Plant in North London to a stage where
financial close is expected shortly.
The Directors believe that the Group is well placed to
successfully deliver its strategic goals, underpinned by the
commitment to a cleaner and more secure energy future. On behalf of
my colleagues on the board, we wish to express our thanks to the
management and staff who have continued to work so diligently over
the past year.
Dermot O'Connell
Non-Executive Chairman
Chief Executive's Report
Operational Review
The Group's strategy is to develop medium to small-scale
renewable energy generation plants generally in the range of 0.5MW
to 20MW. This range is considered to be optimal in terms of the
energy market and in terms of the Group's business model.
The Group is operating a project development model. The Group
finds project sites, then obtains planning and environmental
permissions as well as developing and specifying the power project,
thus generating substantial value. Debt and equity partners are
then sought to enable the project build out, with the Group
retaining a material equity stake of at least 50% in each
project.
The developer model enables the developer, the Group, to make
substantial returns on its initial investment on development and
permitting costs. The Group expects to generate in excess of 3
times return on individual projects that typically take 3 years to
execute.
The Group currently has 157MW of potential power at various
stages of development as set out below:
Biomass CHP Project Portfolio - 69MW
Newry Biomass 4MW CHP project
The Company announced that the Newry Biomass CHP project had
exported electricity to the grid in September 2012. Since then the
Group, in conjunction with both Zeropoint and Clarke Energy, has
undertaken standard reliability tests of the equipment before
formally taking over the equipment from its respective partners.
The GE Jenebacher engine was commissioned by Clarke Energy on 7
September 2012 with the gasifier being commissioned and taken over
by the Company on 4 June 2013.
Following the formal commissioning hand over, the Group has been
focused on completing various tests and reports required by Ulster
Bank Ireland Limited in connection with the drawdown of debt
facilities for Phase 2 of the project for an additional 2 MW.
The bank's technical adviser, Mott McDonald, have completed
their report and submitted it to Ulster Bank for their approval.
The Group is currently in discussions with Ulster Bank regarding
this report and the timing for the drawdown of facilities for Phase
2.
The electricity generated by the plant is being sold to Bord
Gais Eireann under a Power Purchase Agreement ('PPA'). 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. The Group has invested
GBP5.6 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 8 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.
A pre-planning consultation process regarding the 4MW Phase 3
extension to the Newry Biomass project is currently underway and a
formal planning application will be submitted shortly.
12MW Enfield Biomass CHP Project
The Enfield Project has full Planning and Environmental
Permission for the conversion of 60,000 tonnes of waste timber per
annum into up to 12MW of electricity and heat. The project is
expected to reach financial close and start construction
shortly.
The Group announced recently that it has chosen MWH as its
preferred construction contractor for the Enfield Project following
a competitive tender process, which was run earlier this year. MWH
is a leading provider of EPC construction services to the utilities
and renewables sectors.
MWH have offered a turnkey solution for the construction of the
entire project under an engineering, procurement and construction
("EPC") contract, which will also incorporate the supply of the
gasification system. Draft EPC contracts have been exchanged and
detailed negotiations are on-going. Fichnter Consulting Engineers
continue to assist the Group with these negotiations and all
parties are working towards finalising and signing the contract in
the near future.
The Group also confirmed that it has chosen Statkraft Markets
GmBH ("Statkraft") as its preferred partner for the purchase of
100% of the electricity generated by the plant. Heads of terms for
a long term power purchase agreement have been agreed with
Statkraft and draft contracts have been exchanged. The Group is
well advanced with discussions to finalise this agreement.
The Group has continued to work with a large multinational,
located close to the Enfield Project, to purchase 100% of the heat
generated by the Enfield Project. A detailed heat study and pipe
route layout has been completed and the Group is in advanced
discussions regarding the commercial terms of the offtake
agreement.
The grid connection agreement for the Enfield Project was
secured earlier in the year with the payment of the deposit to UK
Power Networks. Discussions are on-going with UK Power Networks to
finalise the construction programme for the grid connection.
The Group is continuing to negotiate heads of terms for the
supply of feedstock to the Enfield Project with a number of
suppliers. The intention is to contract the majority of the
feedstock required on financial close for the funding of the
project.
The Group is continuing to work with the Foresight Group
regarding the financing of the project and due diligence is nearly
completed. Both parties continue to work towards reaching financial
close shortly with construction to start immediately following
this.
12MW Clay Cross Biomass CHP
The Group is currently engaged in the consenting process for a
12MW site in Clay Cross in Derbyshire in cooperation with the
Larkfleet Group its co-development partner on the site.
12MW Plymouth Biomass CHP
On the 2 July 2013 the Group announced that it had signed heads
of terms with the London & Devonshire Trust ("LDT") regarding a
site for a 12MW biomass CHP project in Plymouth. Both the Group and
LDT remain committed to the project and the expectation is that a
legally binding option agreement will be signed shortly. LDT have
continued with the development of the wider site and have secured a
grid connection offer for the Biomass CHP project.
25 MW Londonderry Port Biomass CHP
The Group continues to progress the Derry Port 25MW Biomass CHP
project with the cooperation of the Londonderry Port and Harbour
Commissioners, the owner of the site.
Wind Portfolio - 88MW
800kw Pluckanes Windfarm project
The Group announced the successful energisation of the 800kw
Pluckanes wind turbine project and the export of electricity to the
national grid.
Enercon GmBH completed the installation and pre commissioning of
the wind turbine during September 2013. ESB Networks completed the
energisation of the project on 27 September 2013, which allowed the
project to export electricity to the national grid. The project has
commenced the sale of electricity to Energia under the power
purchase agreement.
Single wind turbine projects
The Group has received planning permission for four separate
single wind turbine projects during the year being the Altilow,
Moneygorm, Knockavadra and Killuagh projects. An application for
connection to the national grid has been made for all of the
projects. Meteorological masts have also been installed at both the
Altilow and Moneygorm sites and wind data collection is on-going.
Both of these projects are on track to be construction ready by Q1
2014.
The Group continues to focus on single wind turbine projects in
Ireland and the UK. At present the Group has five such projects in
the planning process with decisions on a number expected before the
end of this calendar year.
The Group intends to finance groups of small-scale projects
together, thereby creating a small-scale wind portfolio. Pluckanes,
Altilow and Moneygorm will be the first of such portfolios into
which further projects can be added.
52.5 MW Wind Farm Co-Development
Work on the four Windfarm projects, which form part of the
52.2MW Co-Development agreement is continuing. The environmental
studies and initial layout has been completed on two of these
projects with further ecology work required on the other two
projects. The intention is to submit planning applications on the
first project before the end of the year.
Small Scale Solar
Sark Island Solar
The Group announced on the 2 July 2013 that it had entered into
a partnership with the Trustees of the Sark Island Community Centre
and School regarding a 25kw roof top solar PV project. Following a
public consultation process at the start July 2013 the project
received planning approval on the 9 July 2013. The Group has since
appointed the Larkfleet Group as its preferred installer for the
project and work is on-going to install the project in early
2014.
Small-scale solar projects
Two projects are already planning approved, with a plan to
install and commission these during 2014. There are further
opportunities for solar projects within the existing pipeline.
Project Portfolio
The Group 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.
Financial Review
Revenue in the period amounted to EUR2.6 million and was in line
with management expectations (FY 2012: EUR10.1million). Turnover in
the Group relates to the sale of equipment to complete Phase One of
the Newry joint venture project. The Group reported a loss for the
period of EUR 2.8 million (FY 2012 loss: EUR2.5million).
Administrative costs increased to EUR2.7million (FY 2012:
EUR1.0million) primarily as a result of a loss on foreign exchange
EUR443k versus a gain in 2012 of EUR392k; impairment of freehold
property in Ireland of EUR319k; consultancy fees of EUR274K charged
to a jointly controlled entity in FY2012 and credits in FY2012
relating to revision of accounting estimates of EUR250K. On a like
for like basis, administrative expenses increased slightly to
EUR1.93 million from EUR1.87 million, which is a result of the
acquisition that took place in the year.
At 30 June 2013, the Group had net debt of EUR4.6 million (30
June 2012: EUR12.0 million) including cash balances of EUR 22,150
(30 June 2012: EUR144,764).
The financial information is prepared on a going concern basis,
as discussed in more detail in Note 3 to the financial statements.
The validity of the going concern basis is dependent upon
additional finance being available for the Group's working capital
and planned development program. In the absence of new funds being
raised from new investors, the Group will be reliant on the
financial support of its existing shareholders and creditors to
enable it to continue to trade.
During the period the Company raised approximately EUR1 million
in equity and received GBP500,000 in loans from existing and new
shareholders as previously announced on 27 November 2012 and 28
March 2013.
The Company announced on 20 August 2013 that it had entered into
a rolling, monthly working capital facility with its 26.79%
shareholder Farmer Business Developments plc. Funds drawn down
under the Facility are used by the Company to meet ongoing working
capital requirements. The facility is capped at EUR500,000 but can
be increased by agreement between the parties.
The Group announced on 20 August 2013 that its wholly owned
subsidiary, Reforce Energy Limited, had raised EUR215,000 in loan
notes from private investors and that Ulster Bank Ireland Limited
have made available working capital and other facilities totaling
GBP750,000 to be used to fund working capital requirements and the
continued build out of the Newry Biomass Limited biomass project
located in Newry, Northern Ireland.
Outlook
Against the positive backdrop of significant progress made with
the Group's portfolio of development projects, the Group will
continue to develop and review its project pipeline and focus on
its funding requirements including raising additional project debt
and project equity in 2014 and securing additional funds to
continue with its activities and its planned development
program.
Looking ahead, the Board is confident that the Group has a
number of key strengths, which position it to capitalise on the
opportunities in this fast paced sector.
Gerry Madden
CEO
Kedco plc
Consolidated statement of profit or loss
for the year ended 30 June 2013
Notes 2013 2012
EUR EUR
Revenue 2,664,088 10,083,158
Cost of sales (2,662,922) (10,123,726)
--------------------- ----------------------
Gross profit/(loss) 1,166 (40,568)
Operating expenses
Administrative expenses (2,662,980) (953,705)
Other operating income 20,500 11,100
--------------------- ----------------------
Operating loss (2,641,314) (983,173)
Finance costs (353,733) (414,424)
Share of profits/(losses) on
joint ventures after tax 3,811 (213,923)
Finance income 328 333
--------------------- ----------------------
Loss before taxation (2,990,908) (1,611,187)
Income tax expense - -
--------------------- ----------------------
Loss for the year from continuing
operations (2,990,908) (1,611,187)
--------------------- ----------------------
Profit for the year from discontinued
operations 164,322 493,911
Loss on disposal of subsidiary
of discontinued operations (8,866) -
Losses arising on the remeasurement
of assets held for sale - (1,364,082)
--------------------- ----------------------
Net profit/(loss) for the year
from discontinued operations 155,456 (870,171)
--------------------- ----------------------
Loss for the year - total (2,835,452) (2,481,358)
===================== ======================
Loss attributable to:
Owners of the company (2,868,316) (2,580,140)
Non-controlling interest 32,864 98,782
--------------------- ----------------------
(2,835,452) (2,481,358)
===================== ======================
2013 2012
EUR EUR
Euro per share Euro per share
Basic and diluted loss per
share:
From continuing operations 2 (0.004) (0.006)
From continuing and discontinued
operations 2 (0.004) (0.009)
Kedco plc
Consolidated statement of profit or loss and other comprehensive
income
for the year ended 30 June 2013
2013 2012
EUR EUR
Loss for the financial year (2,835,452) (2,481,358)
Other comprehensive income
Items that will not be reclassified - -
subsequently to profit or loss
Items that may be reclassified
subsequently to profit or loss
Exchange differences arising
on retranslation
of foreign operations 192,788 (310,844)
------------------- -------------------
Total comprehensive income
and expense
for the year (2,642,664) (2,792,202)
=================== ===================
Attributable to:
Owners of the company (2,675,528) (2,890,984)
Non-controlling interests 32,864 98,782
------------------- -------------------
(2,642,664) (2,792,202)
=================== ===================
Kedco plc
Consolidated statement of financial position
At 30 June 2013
Notes 2013 2012
ASSETS EUR EUR
Non-current assets
Goodwill 2,249,200 -
Intangible assets - -
Property, plant and equipment 1,638,352 757,329
Share of net assets in joint ventures 187,068 -
Financial assets 6,233,268 7,608,687
Total non-current assets 10,307,888 8,366,016
------------------ -------------------
Current assets
Inventories - 50,000
Amounts due from customers under construction
contracts 293,637 1,355,212
Trade and other receivables 2,219,305 1,605,518
Cash and cash equivalents 22,150 144,764
------------------ -------------------
Total current assets 2,535,092 3,155,494
Assets classified as held for sale - 6,584,239
------------------ -------------------
Total current assets 2,535,092 9,739,733
================== ===================
Total assets 12,842,980 18,105,749
================== ===================
EQUITY AND LIABILITIES
Equity
Share capital 12,176,200 4,106,808
Share premium 19,090,865 19,375,525
Shared based payment reserves - -
Deferred consideration 600,000 -
Retained earnings - deficit (27,883,201) (25,207,673)
------------------ -------------------
Equity/(deficit) attributable to equity
holders of the parent 3,983,864 (1,725,340)
Non-controlling interest - 898,010
------------------ -------------------
Total equity/(deficit) 3,983,864 (827,330)
------------------ -------------------
Non-current liabilities
Borrowings 1,344,523 2,525,025
Finance lease liabilities - -
Share of net liabilities of jointly
controlled entities - 509,599
Deferred tax liability - -
Total non-current liabilities 1,344,523 3,034,624
------------------ -------------------
Current liabilities
Amounts due to customers under construction
contracts 1,019,307 1,110,090
Trade and other payables 3,228,557 2,495,766
Borrowings 3,266,729 9,661,645
Finance lease liabilities - 373
------------------ -------------------
7,514,593 13,267,874
Liabilities associated with assets
held for sale - 2,630,581
------------------ -------------------
Total current liabilities 7,514,593 15,898,455
------------------ -------------------
Total equity and liabilities 12,842,980 18,105,749
================== ===================
Kedco plc
Consolidated statement of cash flows
for the year ended 30 June 2013
Notes 2013 2012
EUR EUR
Cash flows from operating activities
Loss for the financial year (2,835,452) (2,481,358)
Adjustments for:
Income tax - 69,731
Credit arising on not meeting non-market
based vesting conditions - (492,580)
Depreciation of property, plant and equipment 272,156 596,418
Amortisation of intangible assets - 2,275
Profit on disposal of property, plant
and equipment (83,537) (67,236)
Impairment of property, plant and equipment 318,750 -
Impairment of assets held for sale - 1,364,082
Impairment of amounts due from customers
under construction contracts 102,657 -
Provision against amounts due in unpaid
share capital - 492,563
Unrealised foreign exchange movement 624,810 163,677
Share of (profits)/losses of jointly
controlled entities after tax (3,811) 213,923
Decrease in provision for impairment
of trade receivables - (71,924)
(Decrease)/increase in impairment of
inventories (177,571) (294,715)
Decrease in deferred income (4,293) (10,302)
Interest expense 411,620 506,754
Loss on disposal of share in subsidiary 8,866 -
undertaking
Interest income (328) (338)
------------ ------------
Operating cash flows before working capital
changes (1,366,133) (9,030)
Decrease/(increase) in:
Amounts due from customers under construction
contracts 1,223,650 8,070,067
Trade and other receivables (1,303,384) 4,336
Inventories 656,403 276,377
(Decrease)/increase in:
Amounts due to customers under construction
contracts (90,783) (162,645)
Trade and other payables 502,514 (2,476,219)
Cash (used in)/from operations (377,733) 5,702,886
Income taxes paid - (9,108)
------------ ------------
Net cash (used in)/from operating activities (377,733) 5,693,778
------------ ------------
Cash flows from investing activities
Additions to property, plant and equipment (872,222) (644,737)
Proceeds from sale of property, plant
and equipment 109,585 126,951
Additions to intangible assets - (1,770)
Additions to investments in jointly controlled
entities - (6,660,010)
Net cash inflow from acquisition of subsidiaries 156,781 -
Net cash inflow from disposal of subsidiaries 226,094 -
Interest received 328 338
------------ ------------
Net cash used in investing activities (379,434) (7,179,228)
------------ ------------
Cash flows from financing activities
Proceeds from borrowings 719,101 2,896,483
Repayments of borrowings (248,555) (2,293,628)
Proceeds from issuance of ordinary shares 956,255 685,726
Share issue costs (221,115) (41,476)
Payments of finance leases (31,424) (58,496)
Interest paid (217,222) (255,842)
------------ ------------
Net cash from financing activities 957,040 932,767
------------ ------------
Net increase/(decrease) in cash and cash
equivalents 199,873 (552,683)
Cash and cash equivalents at the beginning
of the financial year (344,096) 208,587
------------ ------------
Cash and cash equivalents at the end
of the financial year (144,223) (344,096)
============ ============
Kedco plc
Notes to the consolidated financial statements
for the year ended 30 June 2013
1. Basis of Preparation and Going Concern
The Group's consolidated financial statements have been prepared
in accordance with International Financial Reporting Standards
(IFRS) effective at 30 June 2013 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 except for certain financial assets and
financial liabilities which are measured at fair value. 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 International Financial Reporting
Standards (IFRS) effective at 30 June 2013 for all periods
presented as issued by the International Accounting Standards Board
and Irish Statute comprising the Companies Acts, 1963 to 2012.
The Group continues to invest capital in developing and
expanding its portfolio of renewable energy projects. The nature of
the Group's development programme means that the timing of funds
generated from developments is difficult to predict. Management
have prepared financial forecasts to estimate the likely cash
requirements of the Group over the next twelve months. The
forecasts include certain assumptions with regard to the costs of
ongoing development projects, overheads and the timing and amount
of any funds generated from developments. The forecasts indicate
that the Group will require additional funds to continue with its
activities and its planned development program.
Whilst the strategy is to build, own and operate plants, once a
site has been secured and planning and permitting obtained the
Group would be in a position, if it so chose, to monetise the value
of the project.
Additional funds can be secured through either an equity
fundraising, the issuance of further loan notes, monetisation of
project assets, or a combination of all three options.
The group incurred a loss of EUR2,835,452 (2012 loss:
EUR2,481,358) during the year, and had net current liabilities of
EUR4,979,501 (2012: EUR6,158,722) and net assets of EUR3,983,864
(2012: net liabilities EUR827,330) at 30 June 2013.
In the year to 30 June 2013, the Company raised approximately
EUR1 million in equity and received GBP500,000 in loans from
existing and new shareholders. The Company announced on 20 August
2013 that it had entered into a rolling, monthly working capital
facility with its 26.79% shareholder Farmer Business Developments
plc. Funds drawn down under the Facility are used by the Company to
meet on-going working capital requirements. The facility is capped
at EUR500,000 and can be increased by agreement between the
parties.
The Group announced on 20 August 2013 that its wholly owned
subsidiary, Reforce Energy Limited, had raised EUR215,000 in loan
notes from private investors. The proceeds from the loan notes will
be used to fund development costs and equity related to single wind
turbine projects. The Group also announced that Ulster Bank Ireland
Limited have made available working capital and other facilities
totalling GBP750,000 to be used to fund the working capital needs
and the continued build out of the Newry Biomass Limited biomass
project located in Newry, Northern Ireland.
The financial statements have been prepared on a going concern
basis. The Directors have given careful consideration to the
appropriateness of the going concern basis in the preparation of
the financial statements. The validity of the going concern basis
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.
After making enquiries and considering the matters referred to
above, the Directors believe that progress towards securing finance
has been 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. The financial statements do
not include any adjustments that would result if the Group was
unable to continue as a going concern.
2. Loss per share 2013 2012
EUR EUR
Euro per Euro per
share share
Basic and diluted loss per share
From continuing operations (0.004) (0.006)
From discontinued operations - (0.003)
Total basic loss per share (0.004) (0.009)
The loss and weighted average number of ordinary shares used in
the calculation of the basic and diluted loss per share are as
follows:
2013 2012
EUR EUR
Loss for year attributable to equity
holders of the parent (2,868,316) (2,580,140)
Profit/(loss) for the year from
discontinued operations used in
the calculation of basic earnings/(loss)
per share from discontinued operations. 122,592 (968,953)
Losses used in the calculation of
basic loss per share from continuing
operations (2,990,908) (1,611,187)
Weighted average number of ordinary
shares for
the purposes of basic loss per share 767,965,770 274,612,376
Anti-dilutive potential ordinary shares
The following potential ordinary shares are anti-dilutive and
are therefore excluded from the weighted average number of ordinary
shares for the purposes of diluted loss per share:
2013 2012
"A" Shares in issue 99,117,952 99,117,952
Ordinary shares to be issued to
satisfy the purchase of Reforce
Energy Limited on the satisfaction 2,489,048 -
of certain conditions
Share warrants in issue 54,149,107 27,392,915
Convertible preference shares in
issue 3,125,000 3,125,000
Convertible loans in issue 6,583,363 21,942,154
3. Events after the balance sheet date
On 20 August 2013, the Group announced that it has entered into
a rolling, monthly working capital facility with Farmer Business
Developments plc ("FBD"), who holds 26.79% of the ordinary share
capital of the Company. The facility, which has no maturity date
and is repayable on demand, is unsecured and any drawdowns will
accrue interest at a rate of 5% per annum. The facility is capped
at EUR500,000 but may be increased by agreement between the
parties. As at 27 November 2013, the full facility has been drawn
down..
On 20 August 2013, the Group announced that its wholly owned
subsidiary, Reforce Energy Limited, had raised EUR215,000 in loan
notes from private investors. The proceeds from the loan notes will
be used to fund development costs and equity related to single wind
turbine projects.
On 20 August 2013, the Group announced that its wholly owned
subsidiary, Pluckanes Windfarm Limited, had reached financial close
with Allied Irish Banks plc for the funding of the 800kW Pluckanes
Windfarm project, totalling EUR1.15 million in senior term
loans.
On 20 August 2013, the Group announced that its jointly
controlled entity, Newry Biomass Limited, secured working capital
and other facilities from Ulster Bank Ireland Limited totalling
GBP750,000. This is to be used to fund the working capital needs
and the continued build out of biomass project located in Newry,
Co. Down.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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