TIDMWIND
RNS Number : 3465E
Renewable Energy Generation Ltd
09 February 2015
9 February 2015
Renewable Energy Generation Limited
("REG" or the "Group")
Interim Results for the six months to 31 December 2014
Renewable Energy Generation Limited (AIM: WIND), today announces
its interim results for the six months to 31 December 2014.
-- Wind farm planning permission awarded for
Hallburn, Cumbria (12MW) and resolution to
grant permission at Mynydd Portref, Rhondda
Cynon Taf (12MW)
-- Sale of the St. Breock and Ramsey II wind
farms to BlackRock for net proceeds of GBP13.8m
with a profit of GBP4.6m recognised to date
-- 53MW of consented onshore wind assets now
moving to procurement and construction, with
a further 124MW of applications awaiting determination
in the UK planning system and over 100MW in
pre-planning
-- Whitemoor bio-power plant (18MW) commissioned
and operating under National Grid's short
term operating reserve
-- Group revenues of GBP5.1m (H1 2013: GBP5.7m)
in line with management expectations following
the decommissioning of the original St.Breock
windfarm during 2014 to allow for repowering
-- Adjusted EBITDA(1) of GBP4.2m including disposal
profits of GBP4.6m (H1 2013: GBP9.6m including
disposal profits of GBP9.4m)
-- Increase of GBP3.2m in unrestricted cash resources
for the six months to GBP14.6m as at 31 December
2014
Post period end events
-- Resolution to grant permission for the 4MW
Knockshinnoch windfarm in Scotland
(1) Earnings before interest, taxation, depreciation and
amortisation ("EBITDA") is equal to the Group's continuing
operating profit before exceptional items, share based payments,
interest, taxation, depreciation and amortization and including
profit on disposal of subsidiaries.
Andrew Whalley, REG Chief Executive Officer said:
"The period is notable for our success in obtaining planning
permission at local authority level for the 12MW Hallburn wind farm
in Cumbria. This was followed by a local resolution to grant
consent for another six turbine scheme at Mynydd Portref in South
Wales. Post the end of the period we were delighted to achieve
another planning committee resolution for a two turbine project at
Knockshinnoch in Scotland.
"With a further 124MW across 14 projects in the planning system,
we expect to see further planning successes this year.
"In addition we have successfully completed asset sales to our
long-term partner BlackRock, maintaining a prudent level of
liquidity as we continue to invest in our next five wind
construction projects.
"Our 18MW Whitemoor Bio-Power project is the first of its type
in the UK and has started full operation under the National Grid's
STOR programme, providing power at short notice to meet unscheduled
demand on the system. Our waste cooking oil collection business,
Living Fuels, has seen a near 60% increase in volumes also at
significantly lower prices than 12 months ago. This has been aided
by a large contract win from Mitchells and Butler, which alone has
added 10% to volumes.
"Our new asset management business already has 56MW of assets
under management and is anticipating adding additional projects
over the course of the year.
"After an extended period of investment our UK businesses are
beginning to mature. This should facilitate a significant increase
in REG's operational MWs over the next few years".
A presentation to analysts will be held today at the offices of
Broker Profile at 9.30am. The address is Augustine House, 6A Austin
Friars, London, EC2N 2HA. A dial-in facility will also be available
(number: 020 8609 0205, PIN: 250517#).
ENDS
Enquiries:
Renewable Energy Generation Limited
Andrew Whalley, Chief Executive Officer
David Crockford, Finance Director +44 (0)1483
Ian Lawrence, Communications Manager 901 796
Smith & Williamson Corporate Finance
Limited
(Nominated Adviser) +44 (0)117
Martyn Fraser 376 2213
Cenkos (Corporate Broker) +44 (0)20
Bobbie Hilliam 7397 8900
Broker Profile +44 (0)20
Simon Courtenay / Harry Rippon 7448 3244
Notes to editors
Renewable Energy Generation Ltd (REG) is an AIM listed renewable
energy group. Its main business is the development, construction
and operation of wind farms and generating power from refined used
cooking oil.
REG Windpower: based in Truro, Bath and Guildford, it currently
operates 14 wind projects in Cambridgeshire, Cornwall, County
Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total
capacity of 67.15MW and has a development pipeline of over
1,000MW.
REG Bio-Power UK Ltd: based in Nottingham, UK: it operates
electricity generation plant powered by fuel recovered from 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 the Period
REG's strategy is to develop, own and operate a diversified
portfolio of onshore wind and Bio-Power projects as well as
managing renewable energy assets on behalf of third parties. REG
aims to grow value for its shareholders through sustainable and
rising project cash flows coupled to an increasing net asset
value.
REG Windpower
This has been a successful period for wind development with a
planning permission achieved at Hallburn (12MW) in Cumbria and a
council resolution to grant Mynydd Portref (12MW) in Wales. Post
the period end a further resolution was gained for Knockshinnoch
(4MW) in Scotland.
The Group now has 53MW of onshore wind sites with a planning
permission or a resolution to grant awaiting construction, with a
further 124MW in the planning system expecting decisions over the
course of the next 12 months.
The sale of the St Breock and Ramsey II windfarms to a fund
managed by BlackRock for a total enterprise value of GBP36m and net
proceeds to date of GBP13.8m, has provided REG with ample liquidity
to continue to build investment into its own portfolio of
operational wind assets.
Procurement is proceeding on Denzell Downs (10MW), French Farm
(4MW), Rodbaston (4MW) and Draperstown (6MW). We expect these
projects to move to construction later this year and be operational
under the current Renewable Obligation regime. Additionally, our
project at Barlborough (0.9MW) is proceeding to construction,
funded by REG's own equity, to be run under the small scale
feed-in-tariff.
REG Bio-Power
Project finance was completed on REG's 18MW facility at
Whitemoor Business Park near Selby, Yorkshire. The plant is now
fully operational, together with its sister plants at Bentwaters
(6MW) and Leeds North (2MW), within National Grid's Short Term
Operating Reserve, with all achieving excellent operational
hours.
Planning was achieved for a new 10MW Bio-Power project in
Yorkshire and it is expected that this site, plus one other 18MW
project will enter construction later this year.
REG Asset Management
A new business segment for REG, Asset Management already
operates 56MW on behalf of a fund managed by BlackRock. We have
started marketing this capability to new third parties and expect
revenues to grow strongly here over the next few years.
Dividend
The interim dividend of 0.55p per share will be paid on 24 April
2015 to shareholders on the register as at 7 April 2015.
Unaudited Interim Consolidated Statement of Profit and Loss
For the six months to 31 December 2014
Six months Six months Year to
to 31 December to 31 December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Revenue 5,076 5,660 11,556
Cost of Sales (3,541) (3,723) (7,411)
------------------------------ ---------------- ---------------- ----------
Gross profit 1,535 1,937 4,145
------------------------------ ---------------- ---------------- ----------
Wind administrative
expenses (1,923) (1,812) (3,367)
Bio-power administrative
expenses (309) (297) (760)
Central administrative
expenses (730) (870) (1,484)
Development costs (906) (658) (2,697)
Corporate finance costs (156) (180) (374)
Other operating income - - 84
Group operating loss
from continuing activities (2,489) (1,880) (4,453)
Profit on disposal of
subsidiaries (note 5) 4,558 9,375 9,483
Net finance cost (997) (1,040) (2,166)
Profit on continuing
operations before tax 1,072 6,455 2,864
Tax credit 19 - 1,015
------------------------------ ---------------- ---------------- ----------
Profit on continuing
operations after tax 1,091 6,455 3,879
Attributable to
----------------------------- ---------------- ---------------- ----------
Equity holders of the
parent 1,091 6,455 3,879
Non controlling interest - - -
Total 1,091 6,455 3,879
Earnings per share attributable to the equity
holders of the Company during the period
- basic EPS 1.05p 6.23p 3.74p
- diluted EPS 1.02p 6.10p 3.66p
Unaudited Interim Consolidated Statement of Financial
Position
As at 31 December 2014
31 December 31 December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
ASSETS (unaudited) (unaudited) (audited)
Non-current assets
Goodwill (note 3) 4,890 7,390 4,890
Development assets (note
3) 15,653 14,308 19,096
Property, plant and equipment
(note 4) 55,719 44,496 50,093
Deferred tax asset 2,613 1,664 2,347
78,875 67,858 76,426
Current Assets
Assets classified as held
for sale - 8,108 11,652
Inventories 1,263 628 782
Trade and other receivables 6,125 3,212 4,326
Intangibles 1,266 2,087 1,848
Restricted cash 2,640 3,619 2,737
Cash and cash equivalents 14,623 19,262 10,987
25,917 36,916 32,332
Total assets 104,792 104,774 108,758
---------------------------------- ------------ ------------ ----------
LIABILITIES
Current liabilities
Trade and other payables 4,015 4,061 6,034
Liabilities directly associated
with assets classified
as held for sale - 4,246 2,389
Borrowings 1,161 997 1,108
---------------------------------- ------------ ------------ ----------
5,176 9,304 9,531
---------------------------------- ------------ ------------ ----------
Non-current liabilities
Borrowings 21,353 17,087 21,495
Derivative financial instruments 2,230 620 753
Provisions 3,318 - 3,321
Deferred tax liabilities - 319 5
---------------------------------- ------------ ------------ ----------
26,901 18,026 25,574
Total liabilities 32,077 27,330 35,105
---------------------------------- ------------ ------------ ----------
EQUITY
Share capital 10,374 10,366 10,374
Share premium 79,952 79,912 79,952
Own shares (200) (197) (200)
Share- based payment reserve 608 438 528
Hedging reserve (1,637) (466) (1,234)
Retained earnings (16,935) (13,159) (16,320)
---------------------------------- ------------ ------------ ----------
Equity attributable to
the equity holders of
the parent 72,162 76,894 73,100
---------------------------------- ------------ ------------ ----------
Non controlling interest 553 550 553
---------------------------------- ------------ ------------ ----------
Total equity and liabilities 104,792 104,774 108,758
---------------------------------- ------------ ------------ ----------
Unaudited Interim Consolidated Cash Flow Statement
For the six months to 31 December 2014
Six months Six months Year to
to to 30 June
31 December 31 December 2014
2014 2013
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Cash flows from operating
activities
Net cash generated/(used)
in operations (3,908) (1,148) (801)
------------------------------- ------------- ------------- ----------
Cash flows from investing
activities
Purchase of property,
plant and equipment (2,501) (8,788) (19,366)
Capitalised development
costs (2,435) (2,022) (6,974)
Acquisition of subsidiary - - (30)
Net proceeds from sale
of subsidiary 12,688 9,080 14,187
Interest received 25 - 53
Movement in restricted
cash accounts (79) 3,686 5,316
------------------------------- ------------- ------------- ----------
Net cash generated/(used)
in investing activities 7,698 1,956 (6,814)
------------------------------- ------------- ------------- ----------
Cash flows from financing
activities
New borrowings net of
issue costs 2,738 3,795 6,495
Interest paid (including
interest rate swaps) (1,027) (759) (1,775)
Repayment of borrowings (598) (462) (989)
Purchase of own shares - (137) (140)
Issue of shares - 36 38
Dividends paid to Company's
shareholders (1,706) (1,552) (2,121)
------------------------------- ------------- ------------- ----------
Net cash generated from
financing activities (593) 921 1,508
------------------------------- ------------- ------------- ----------
Net (decrease)/increase
in cash and cash equivalents 3,197 1,729 (6,107)
Cash at beginning of period 11,426 17,533 17,533
------------------------------- ------------- ------------- ----------
Cash at end of period 14,623 19,262 11,426
------------------------------- ------------- ------------- ----------
Cash included in disposal
group classified as held
for sale - - 439
------------------------------- ------------- ------------- ----------
Unaudited Consolidated Statement of Total Comprehensive
Income
For the six months to 31 December 2014
Six months Six months
ended 31 ended 31 Year ended
December December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Profit for the period 1,091 6,455 3,879
Effective portion of change
in fair value cash flow
hedges net of recycling
( net of tax) (403) 664 (104)
Total comprehensive income
/ (expenditure) for the
period net of tax 688 7,119 3,775
----------------------------- ------------ ------------ -------------
Attributable to
----------------------------- ------------ ------------ -------------
Equity holders of the
parent 688 7,119 3,775
----------------------------- ------------ ------------ -------------
Non controlling interest - - -
----------------------------- ------------ ------------ -------------
Total 688 7,119 3,775
----------------------------- ------------ ------------ -------------
Unaudited Interim Consolidated Statement of Changes in
Equity
For the six months to 31 December 2014
Share
Share based Non
Share premium Own payments Hedging Retained controlling
capital account shares reserve reserve earnings interest Total
equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July
2014 10,374 79,952 (200) 528 (1,234) (16,320) 553 73,653
---------------- ---------- ---------- --------- ---------- ---------- ----------- ------------- --------
Total
comprehensive
income - - - - (403) 1,091 - 688
---------------- ---------- ---------- --------- ---------- ---------- ----------- ------------- --------
Share
based
payments - - - 80 - - - 80
Dividend
(note
2) - - - - - (1,706) - (1,706)
Issue
of new
equity - - - - - - - -
Purchase
of own
shares - - - - - - - -
At 31
December
2014 10,374 79,952 (200) 608 (1,637) (16,935) 553 72,715
---------------- ---------- ---------- --------- ---------- ---------- ----------- ------------- --------
Notes to the unaudited interim consolidated financial
statements
1. Statement of compliance
While the financial information included in this unaudited
interim financial statement has been prepared in accordance with
the recognition and measurement criteria of International Financial
Reporting Standards (IFRSs), this announcement does not itself
contain sufficient information to comply with IFRS.
This interim financial statement has been prepared on the basis
of accounting policies adopted by the Group and set out in the
annual report and accounts for the year ended 30 June 2014. The
Group does not anticipate any change in these accounting policies
for the year ended 30 June 2015. 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. Dividends
Six months Six months Year to
to to 30 June
31 December 31 December 2014
2014 2013
Declared and paid during GBP'000 GBP'000 GBP'000
the period on
ordinary equity shares
(unaudited) (unaudited) (audited)
Final dividend declared
and paid 1,706 1,552 1,552
Interim dividend declared
and paid - - 569
------------------------------ ------------- ------------- ----------
1,706 1,552 2,121
------------------------------ ------------- ------------- ----------
Proposed but not recognised as a liability at 31
December 2014
Equity dividends on ordinary
shares:
Interim dividend declared
and paid - 0.55p (2013 -
0.55p) 570 570 -
------------------------------ ------------- ------------- ----------
The dividend will be paid on 24 April 2015 to members on the
register on 7 April 2015. Shares will be marked ex-dividend on 2
April 2015.
3. Intangible assets
(unaudited) Development Goodwill Total
costs
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2014 16,552 7,390 23,942
Additions 10,131 - 10,131
Transfers to property,
plant and equipment (1,772) - (1,772)
Asset held for sale (2,188) (2,500) (4,688)
At 30 June 2014 22,723 4,890 27,613
Additions 2,435 - 2,435
Transfers to property,
plant and equipment (5,299) - (5,299)
----------------------------- ------------ --------- --------
At 31 December 2014 19,859 4,890 24,749
Amortisation and impairment
At 1 January 2014 2,244 - 2,244
Impairment charge 1,383 - 1,383
----------------------------- ------------ --------- --------
At 30 June 2014 3,627 - 3,627
Impairment charge 579 - 579
At 31 December 2014 4,206 - 4,206
Net book value
At 31 December 2014 15,653 4,890 20,543
----------------------------- ------------ --------- --------
At 30 June 2014 19,096 4,890 23,986
----------------------------- ------------ --------- --------
At 1 January 2014 14,308 7,390 21,698
----------------------------- ------------ --------- --------
Included within additions to development costs are internal
development costs of GBP164,000 (2013: GBP250,000).
4. Property, plant and equipment
(unaudited) Assets
Other in the Fixtures,
Operating generation course Freehold fittings
wind plant of construction land and equipment Total
sites
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Cost
At 1 January
2014 41,999 5,798 4,750 1,252 2,483 56,282
Additions 1,354 4,965 3,511 391 176 10,397
Movements 1,788 - (1,788) - - -
Transfers from
Development
Costs - 26 1,746 1,772
Assets no longer
held for sale 5,682 - - - - 5,682
Asset held
for sale - - (5,260) (5,260)
Disposals - (5,068) (122) - (1) (5,191)
At 30 June
2014 50,823 5,721 2,837 1,643 2,658 63,682
Additions 149 169 1,578 - 145 2,041
Movements 54 10 - (64) -
Transfers from
Development
Costs - - 5,299 - 5,299
Disposals (143) (5) (148)
At 31 December
2014 51,026 5,747 9,724 1,643 2,734 70,874
Depreciation
At 1 January
2014 9,770 1,037 - - 979 11,786
Depreciation
charge 1,540 138 - - 196 1,874
Assets classified
as held for
sale 23 - - - - 23
Disposals - (93) - - (1) (94)
At 30 June
2014 11,333 1,082 - - 1,174 13,589
Depreciation
charge 1,247 176 - - 175 1,598
Disposals - (32) - - - (32)
At 31 December
2014 12,580 1,226 - - 1,349 15,155
Net book value
At 31 December
2014 38,446 4,521 9,724 1,643 1,385 55,719
------------------- ----------- ------------ ----------------- ---------- --------------- --------
At 30 June
2014 39,490 4,639 2,837 1,643 1,484 50,093
------------------- ----------- ------------ ----------------- ---------- --------------- --------
At 1 January
2014 32,229 4,761 4,750 1,252 1,504 44,496
------------------- ----------- ------------ ----------------- ---------- --------------- --------
During the period an amount of GBP100,000 (2013 - GBP45,000) of
borrowing costs were capitalised into assets in the course of
construction. Capitalisation of borrowing costs has increased as a
result of new additions being funded from debt.
5. Disposal of subsidiary
2014
GBP'000
(unaudited)
Proceeds 18,246
Assignment of project debt (3,796)
Unrestricted cash included in disposal
group (380)
Fees (277)
------------
Net proceeds 13,793
Net assets of disposal group (9,235)
Profit on disposals 4,558
============
Gross proceeds include GBP1,323,000 deferred consideration.
Further consideration of up to GBP1,500,000 in relation to the
disposal has not yet been recognised in the financial statement of
the Group, its recognition being contingent on the completion of
construction at the sites and satisfaction of various performance
conditions thereon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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