TIDMWIND
RNS Number : 7620I
Renewable Energy Generation Ltd
18 March 2010
Press Release
18 March 2010
Renewable Energy Generation Limited
("REG" or the "Group")
Interim Results for the six months to 31 December 2009
Renewable Energy Generation (AIM: WIND), the UK renewable energy group, today
announces its interim financial results for the six months to 31 December 2009.
Financial highlights
· Group revenues of GBP3.5m (H1 2009: GBP2.7m)
· Group EBITDA of GBP0.4m (H1 2009: loss of GBP0.6m)
· Loss before tax from continuing operations of GBP0.3m (H1 2009: loss of
GBP1.1m)
· Cash resources of GBP28.5m as at 31 December 2009
· Proposed interim dividend of 0.5p per ordinary share
Operational highlights
· Sale of Canadian wind business for C$125m
· 7 UK operational wind farms totalling 21.3MW
· Turbines ordered for Goonhilly Downs and Loscar wind farms
· Purchase of fully consented 4MW wind farm at High Haswell
· REG Biopower signed its first commercial contract with Port of Dover
· Development portfolio of over 350MW as at 31 December 2009
· Redomiciliation of Group to Jersey
· Appointment of two independent non-executive directors (post period end)
Andrew Whalley, Chief Executive Officer of Renewable Energy Generation, said:
"Following the disposal of our Canadian operations and our commitment to focus
on the UK market, the Group has 39 individual wind projects under active
development. With a strong balance sheet we are investing in resources and with
a clear growth strategy, we believe that the group is well placed to maximise
the potential of this pipeline over the coming years."
ENDS
A presentation to analysts will take place today at 9.30am at Hogarth's offices.
Please contact Jennie Kelly on 020 7357 9477 for details.
A copy of the presentation will be available on the Company's website
www.renewableenergygeneration.com
Enquiries:
+---------------------------------------------------+---------------+
| Renewable Energy Generation Limited | +44 (0)20 |
| Today: | 7357 9477 |
| Andrew Whalley, Chief Executive Officer | +44 (0)1483 |
| Thereafter: | 901 790 |
| David Crockford, Finance Director | |
| | |
+---------------------------------------------------+---------------+
| Smith & Williamson Corporate Finance Limited | +44 (0)117 |
| (Nominated Adviser) | 376 2213 |
| Nick Reeve / Martyn Fraser | |
| | |
+---------------------------------------------------+---------------+
| Numis Securities Limited (Corporate broker) | +44 (0)20 |
| David Poutney / Charles Farquhar | 7260 1000 |
| | |
+---------------------------------------------------+---------------+
| Hogarth Partnership | +44 (0)20 |
| Sarah MacLeod, Julian Walker, Vicky Watkins | 7357 9477 |
| | |
+---------------------------------------------------+---------------+
Notes to Editors:
Renewable Energy Generation Ltd (REG) is a UK-focused renewable energy group.
The Group's main business is the development, construction and operation of wind
farms. It also generates power from refined used cooking oil. Headquartered in
Jersey, REG was admitted to trading on AIM, a market operated by the London
Stock Exchange, in May 2005 (AIM: WIND).
www.renewableenergygeneration.co.uk
Overview of period
The six month period to 31 December 2009 was transformational for REG as we took
the decision to focus on the UK market and concluded the sale of our Canadian
operations.
During the period from 1 July to 31 December 2009, turnover increased by 30% to
GBP3.5 million. The Group generated positive cash flow and EBITDA increased by
GBP1 million to GBP400,000. Net loss from continuing operations narrowed from
GBP1.1 million in the same period last year to GBP277,000.
Profit after tax for the period was GBP5.1 million after an adjustment of GBP5.4
million for foreign exchange gains and disposal costs relating to the sale of
AIM PowerGen Corporation.
During the period the Group has committed over GBP25 million to new wind
projects at Goonhilly Downs, Loscar and High Haswell. The investments are
expected to double operating output to approximately 100 GWh per annum. These
three new projects will be operational during 2010.
The sale of our Canadian wind business has released a significant amount of cash
to enable REG to pursue its ambition of investing over GBP100m into new
renewable energy projects in the UK over the next three years. Following the
sale, the Group has restructured its technical resources in its wind and
biopower businesses to focus on execution.
We have formed an operational board with senior management representation from
both businesses to assist the Board in allocating the Group's resources between
organic growth and acquisition opportunities.
REG's wind business now operates a two divisional structure: construction and
operations will be run from our existing Truro office, while the development
division will operate from a new location focusing exclusively on converting our
significant pipeline of wind projects to consented sites ready for construction.
We are actively working on 39 new wind farm developments around the UK.
Our investment programme is well developed and our team is focused on the
objective of delivering GBP100m of investment. A structure has been put in place
to achieve this goal and the Group is moving toward profitability. With this in
mind we have decided to maintain our interim dividend payment to shareholders at
0.5p per Ordinary share.
Review of operations
The operational UK wind portfolio comprises seven sites with an installed
capacity of 21.3MW. During the period the wind farms produced an output of
23.6GWh. This compares with 20.7GWh in the same period last year. Revenue from
the operating wind farms was GBP3.1million compared with GBP2.2million in the
same period last year. Operation and maintenance costs were GBP434,000 compared
to GBP404,000 last year.
Construction of our two consented projects at Goonhilly and Loscar has now
started with turbines ordered for delivery in July. Both projects are scheduled
for operation in the autumn.
During the period we concluded the purchase of a fully consented two turbine
wind site at High Haswell in County Durham. Turbines for this project are
currently being ordered and the project is expected to be operational by winter
2010.
We have appointed a new head of UK wind development, Matt Partridge, who joins
us from Ecotricity. Matt comes with an outstanding track record in development
and we are confident he will exploit our substantial development portfolio.
During the period we continued to invest in our waste cooking oil business, REG
Biopower, which generated total revenue of GBP0.4million.
Our 400kW unit at Hockwold supplies heat and power to a waste reprocessing site
there and has performed well. Our 4.8MW Bentwaters site is currently undergoing
further investment to convert it to a combined heat and power plant. This will
enable it to qualify for an additional half a Renewable Obligation Certificate.
Whilst permissions are being formalised we are able to operate two units at
Bentwaters under derogation from the Environment Agency.
REG Biopower also signed its first commercial contract in the period - a five
year agreement with the Port of Dover Authority to install and operate a 150kW
combined heat and power plant at the port facility. This unit is now
operational.
Outlook
The funds that became available following the sale of our Canadian business will
allow the Group to fulfil its ambition of investing at least GBP100m in new
onshore wind projects in the UK over the next three years. We have added
additional resource in our development business and with 39 individual wind
projects under active development, we are confident that we will achieve the
necessary consents to fulfil our investment ambition.
Unaudited interim consolidated income statement
For the six months to 31 December 2009
+----------------------------+---+----------+--------------+--------------+-------------+
| | | Six months | Six months | Year to |
| | | to | to | 30 June |
| | | 31 December | 31 December | 2009 |
| | | 2009 | 2008 | |
+--------------------------------+----------+--------------+--------------+-------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+----------+--------------+--------------+-------------+
| | | (un-audited) | (un-audited) | (audited) |
+----------------------------+--------------+--------------+--------------+-------------+
| | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Revenue | | 3,468 | 2,691 | 5,589 |
+--------------------------------+----------+--------------+--------------+-------------+
| Cost of Sales | | (1,803) | (1,555) | (3,513) |
+--------------------------------+----------+--------------+--------------+-------------+
| Gross profit | | 1,665 | 1,136 | 2,076 |
+--------------------------------+----------+--------------+--------------+-------------+
| Administrative expenses | | (1,496) | (1,422) | (2,951) |
+--------------------------------+----------+--------------+--------------+-------------+
| Exceptional administrative | | - | - | (447) |
| expenses | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Development costs | | (482) | (900) | (1,111) |
+--------------------------------+----------+--------------+--------------+-------------+
| Group trading loss | | (313) | (1,186) | (2,433) |
+--------------------------------+----------+--------------+--------------+-------------+
| Other operating income | | - | 13 | 42 |
+--------------------------------+----------+--------------+--------------+-------------+
| Group operating loss from | | (313) | (1,173) | (2,391) |
| continuing activities | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Net finance revenue | | 21 | 68 | 37 |
+--------------------------------+----------+--------------+--------------+-------------+
| Loss on continuing operations | | (292) | (1,105) | (2,354) |
| before tax | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Tax | | 15 | 17 | 296 |
+--------------------------------+----------+--------------+--------------+-------------+
| Loss on continuing operations | | (277) | (1,088) | (2,058) |
| after tax | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Discontinued operations | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Profit/(loss) from | | 5,424 | (6,824) | (7,050) |
| discontinued operations (note | | | | |
| 2) | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| Profit/(loss) for the period | | 5,147 | (7,912) | (9,108) |
+--------------------------------+----------+--------------+--------------+-------------+
| | | | | |
+--------------------------------+----------+--------------+--------------+-------------+
| | | | | | |
+----------------------------+---+----------+--------------+--------------+-------------+
+--------------------------+----------+---+-----------+-----------+----------+
| Earnings per share for profit attributable to the equity holders of the |
| Company during the period |
+----------------------------------------------------------------------------+
| | | | | | |
+--------------------------+----------+---+-----------+-----------+----------+
| - basic and diluted from | | | (0.27p) | (1.06p) | (2.00p) |
| continuing activities | | | | | |
+--------------------------+----------+---+-----------+-----------+----------+
| - basic and diluted | | | 4.98p | (7.67p) | (8.83p) |
+--------------------------+----------+---+-----------+-----------+----------+
Unaudited interim consolidated balance sheet
As at 31 December 2009
+----------------------------------+--------------+----------+------------+------------+----------+
| | 31 | 31 December 2008 | 30 June |
| | December | | 2009 |
| | 2009 | | |
+----------------------------------+--------------+-----------------------+-----------------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+--------------+-----------------------+-----------------------+
| ASSETS | (un-audited) | (un-audited) | (audited) |
+----------------------------------+--------------+-----------------------+-----------------------+
| Non-current assets | | | |
+----------------------------------+--------------+-----------------------+-----------------------+
| Goodwill | 4,890 | 4,890 | 4,890 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Intangibles | - | 23,763 | - |
+----------------------------------+--------------+-----------------------+-----------------------+
| Development assets | 3,845 | 3,896 | 3,870 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Property, plant and equipment | 26,481 | 110,750 | 23,910 |
+----------------------------------+--------------+-----------------------+-----------------------+
| | 35,216 | 143,299 | 32,670 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Current Assets | | | |
+----------------------------------+--------------+-----------------------+-----------------------+
| Inventories | 125 | 105 | 55 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Trade and other receivables | 16,548 | 9,416 | 918 |
| (note 3) | | | |
+----------------------------------+--------------+-----------------------+-----------------------+
| Intangibles | 1,332 | 907 | 941 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Cash and cash equivalents | 28,477 | 5,216 | 706 |
+----------------------------------+--------------+-----------------------+-----------------------+
| | 46,482 | 15,644 | 2,620 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Assets of disposal group | - | - | 109,292 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Total assets | 81,698 | 158,943 | 144,582 |
+----------------------------------+--------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------+-------------------------+------------+------------+----------+
| EQUITY | | | |
+----------------------------------+--------------+-----------------------+-----------------------+
| Share capital | 10,325 | 10,325 | 10,325 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Share premium | 79,708 | 79,708 | 79,708 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Special reserve | - | 10,000 | - |
+----------------------------------+--------------+-----------------------+-----------------------+
| Fair value and other reserves | - | 9,958 | 5,070 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Share based payment reserve | 1,063 | 1,008 | 1,037 |
+----------------------------------+--------------+-----------------------+-----------------------+
| Retained earnings | (11,471) | (23,357) | (15,069) |
+----------------------------------+--------------+-----------------------+-----------------------+
| Equity attributable to the | 79,625 | 87,642 | 81,071 |
| equity holders of the parent | | | |
+----------------------------------+--------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------+-------------------------+------------+------------+----------+
| LIABILITIES | | | | |
+----------------------------------+-------------------------+------------+------------+----------+
| Non-current liabilities | | | | |
+----------------------------------+-------------------------+------------+------------+----------+
| Financial liabilities | - | 45,632 | - | |
+----------------------------------+-------------------------+------------+------------+----------+
| Deferred tax liabilities | 683 | 6,442 | 698 | |
+----------------------------------+-------------------------+------------+------------+----------+
| | 683 | 52,074 | 698 | |
+----------------------------------+-------------------------+------------+------------+----------+
| Current liabilities | | | | |
+----------------------------------+-------------------------+------------+------------+----------+
| Trade and other payables | 1,390 | 4,709 | 1,947 | |
+----------------------------------+-------------------------+------------+------------+----------+
| Financial liabilities | - | 14,518 | 14,958 | |
+----------------------------------+-------------------------+------------+------------+----------+
| | 1,390 | 19,227 | 16,905 | |
+----------------------------------+-------------------------+------------+------------+----------+
| Liabilities of disposal group | - | - | 45,908 | |
+----------------------------------+-------------------------+------------+------------+----------+
| Total liabilities | 2,073 | 71,301 | 63,511 | |
+----------------------------------+-------------------------+------------+------------+----------+
| Total equity and liabilities | 81,698 | 158,943 | 144,582 | |
+----------------------------------+-------------------------+------------+------------+----------+
| | | | | | |
+----------------------------------+--------------+----------+------------+------------+----------+
Unaudited interim consolidated cash flow statement
For the six months to 31 December 2009
+-----------------------------------+--------------+--------------+-----------+
| | Six | Six | Year to |
| | months | months | 30 June |
| | to | to | 2009 |
| | 31 | 31 | |
| | December | December | |
| | 2009 | 2008 | |
+-----------------------------------+--------------+--------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+--------------+--------------+-----------+
| | (un-audited) | (un-audited) | (audited) |
+-----------------------------------+--------------+--------------+-----------+
| Cash flows from operating | | | |
| activities | | | |
+-----------------------------------+--------------+--------------+-----------+
| Cash used in operations | (7,381) | (9,330) | (8,387) |
+-----------------------------------+--------------+--------------+-----------+
| Net cash used in operations | (7,381) | (9,330) | (8,387) |
+-----------------------------------+--------------+--------------+-----------+
| | | | |
+-----------------------------------+--------------+--------------+-----------+
| Cash flows from investing | | | |
| activities | | | |
+-----------------------------------+--------------+--------------+-----------+
| Purchase of property, plant and | (3,302) | (28,181) | (25,804) |
| equipment | | | |
+-----------------------------------+--------------+--------------+-----------+
| Net proceeds from sale of | 48,596 | - | - |
| subsidiary before deferred | | | |
| consideration | | | |
+-----------------------------------+--------------+--------------+-----------+
| Interest received | 25 | 69 | 128 |
+-----------------------------------+--------------+--------------+-----------+
| Movement in restricted cash | 5,223 | (1,452) | (1,594) |
| accounts | | | |
+-----------------------------------+--------------+--------------+-----------+
| Net cash generated/(used) in | 50,542 | (29,564) | (27,270) |
| investing activities | | | |
+-----------------------------------+--------------+--------------+-----------+
| | | | |
+-----------------------------------+--------------+--------------+-----------+
| Cash flows from financing | | | |
| activities | | | |
+-----------------------------------+--------------+--------------+-----------+
| New borrowings | 1,000 | 32,163 | 27,978 |
+-----------------------------------+--------------+--------------+-----------+
| Interest paid | (725) | (748) | (916) |
+-----------------------------------+--------------+--------------+-----------+
| Repayment of borrowings | (15,958) | (301) | (1,507) |
+-----------------------------------+--------------+--------------+-----------+
| Dividends paid to Company's | (1,549) | (3,093) | (3,609) |
| shareholders | | | |
+-----------------------------------+--------------+--------------+-----------+
| Net cash (used)/generated from | (17,232) | 28,021 | 21,946 |
| financing activities | | | |
+-----------------------------------+--------------+--------------+-----------+
| | | | |
+-----------------------------------+--------------+--------------+-----------+
| Net decrease in cash and cash | 25,929 | (10,873) | (13,711) |
| equivalents | | | |
+-----------------------------------+--------------+--------------+-----------+
| Cash at beginning of period | 2,522 | 16,453 | 16,453 |
+-----------------------------------+--------------+--------------+-----------+
| Exchange gains/(losses) | 26 | (364) | (220) |
+-----------------------------------+--------------+--------------+-----------+
| Cash at end of period | 28,477 | 5,216 | 2,522 |
+-----------------------------------+--------------+--------------+-----------+
| | | | |
+-----------------------------------+--------------+--------------+-----------+
Unaudited interim consolidated statement of changes in equity
For the six months to 31 December 2009
+-------------+---------+---------+----------+----------+-------------+---------+
| | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| | Share | Share | Share | Retained | Foreign | Total |
| | capital | premium | based | earnings | currency | equity |
| | | account | payments | | translation | |
| | | | reserve | | reserves | |
| | | | | | relating to | |
| | | | | | disposal | |
| | | | | | group | |
+-------------+---------+---------+----------+----------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+---------+---------+----------+----------+-------------+---------+
| At 1 | 10,325 | 79,708 | 1,037 | (15,069) | 5,070 | 81,071 |
| July | | | | | | |
| 2009 | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Foreign | - | - | - | - | 4,777 | 4,777 |
| currency | | | | | | |
| translation | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Net | - | - | - | - | 4,777 | 4,777 |
| Income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| for the | | | | | | |
| period | | | | | | |
| recognised | | | | | | |
| in equity | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Released | - | - | - | - | (9,847) | (9,847) |
| on | | | | | | |
| disposal | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Profit | - | - | - | 5,147 | - | 5,147 |
| for the | | | | | | |
| period | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Total | - | - | - | 5,147 | (5,070) | 77 |
| income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| for the | | | | | | |
| period | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Share | - | - | 26 | - | - | 26 |
| based | | | | | | |
| payments | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| Dividend | - | - | - | (1,549) | - | (1,549) |
| (note 4) | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
| At 31 | 10,325 | 79,708 | 1,063 | (11,471) | - | 79,625 |
| December | | | | | | |
| 2009 | | | | | | |
+-------------+---------+---------+----------+----------+-------------+---------+
Notes to the un-audited consolidated financial statements
1. Statement of compliance
The interim financial statements of the Group for the six months ended 31
December 2009, which are unaudited, have been prepared in accordance with the
International Financial Reporting Standards ('IFRS') accounting policies adopted
by the Group and set out in the annual report and accounts for the year ended 30
June 2009. The Group does not anticipate any change in these accounting policies
for the year ended 30 June 2010. As permitted, this interim report has been
prepared in accordance with the AIM rules and not in accordance with IAS 34
"Interim financial reporting".
2. Profit/(loss) from discontinued operations
In accordance with International Accounting Standard 21 the profit from
discontinued operations in the period to 31 December 2009 of GBP5,424k comprises
a loss on the activities of the operation to the point of disposal combined with
the loss to the group on disposal totaling GBP4,423k offset by a credit arising
to the income statement of GBP9,847k representing the release of the accumulated
foreign currency translation reserve.
3. Trade and other receivables
+------------------------------+--------------+--------------+-----------+
| | Six | Six | Year to |
| | months | months | 30 June |
| | to | to | 2009 |
| | 31 | 31 | |
| | December | December | |
| | 2009 | 2008 | |
+------------------------------+--------------+--------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+--------------+--------------+-----------+
| | (un-audited) | (un-audited) | (audited) |
+------------------------------+--------------+--------------+-----------+
| | | | |
+------------------------------+--------------+--------------+-----------+
| Trade receivables and other | 1,054 | 9,416 | 918 |
| receivables | | | |
+------------------------------+--------------+--------------+-----------+
| Deferred consideration on | 15,494 | - | - |
| disposal of subsidiary | | | |
+------------------------------+--------------+--------------+-----------+
| | 16,548 | 9,416 | 918 |
+------------------------------+--------------+--------------+-----------+
4. Dividends
+------------------------------+----------+------------+----------+-----------+----------+---------------+----------+
| | Six months to | Six months to | Year to |
| | 31 December 2009 | 31 December 2008 | 30 June 2009 |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| | (un-audited) | (un-audited) | (audited) |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| Declared and paid during the | | | |
| period | | | |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| Equity dividends on ordinary | | | |
| shares: | | | |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| Second interim dividend | 1,549 | 3,093 | 3,093 |
| declared and paid | | | |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| First interim dividend | - | - | 516 |
| declared and paid | | | |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| | 1,549 | 3,093 | 3,609 |
+------------------------------+-----------------------+---------------------------------+--------------------------+
| Proposed but not recognised as a liability at 31 December 2009 | |
+--------------------------------------------------------------------------------------------------------+----------+
| Equity dividends on ordinary shares: | | | | |
+-----------------------------------------+-----------------------+-----------+--------------------------+----------+
| First interim dividend declared and | 516 | | | |
| paid - 0.5p | | | | |
+-----------------------------------------+-----------------------+-----------+--------------------------+----------+
| | | | | | | | |
+------------------------------+----------+------------+----------+-----------+----------+---------------+----------+
The dividend will be paid on 23 April 2010 to members on the register on 26
March 2010. Shares will be marked ex-dividend on 24 March 2010.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUPCWUPUGRM
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