TIDMREH
RNS Number : 7130A
Renewable Energy Holdings plc
30 September 2015
Renewable Energy Holdings plc
("Renewable Energy Holdings" or the "Company")
Interim Report for the six months ended 30 June 2015
Renewable Energy Holdings announces its interim results for the
six months to 30 June 2015, which are set out below. A copy is
available to download from the Company's website
www.reh-plc.com
For further information, please contact:
Renewable Energy Holdings plc Tel: +44 (0)16 2464
David Weir, Non-Executive Chairman 1199
Clive Callister, Chief Operating Officer
Strand Hanson Limited Tel: +44 (0)20 7409
Rory Murphy / James Spinney 3494
Chairman's statement
For the six months ended 30 June 2015
Once again the main activity in the half year has been directed
towards the planning application for the Mynydd y Gwynt windfarm
project in mid Wales and to attempt to sell the Polish windfarm
project.
Financial performance
The Group made a loss from Operations of GBP291k, slightly
higher than the previous year and partly due to the appointment in
December 2014 of a full time finance director (now outsourced
again). Finance costs on the Utilico loans were GBP483k and with
ongoing costs in Poland of GBP27k the Loss for the Period was
GBP801k.
Wales
The planning examination process closed on 20th May 2015 and a
decision is due by 20th November 2015. The Examiner submitted his
recommendation to the Secretary of State for Energy and Climate
Change on 20th August 2015 in accordance with the statutory
timetable.
We have previously reported that if consent is granted the
windfarm would need to be connected to the proposed mid Wales hub
substation, however the outcome of the mid Wales conjoined public
inquiry has thrown the future of that substation into serious
doubt. The inquiry considered five proposed wind farms in mid
Wales, with four of them connecting to the hub, but DECC has
refused planning consent for all four. Presently no decision has
been made on the future of the hub and we are keeping in close
communication with SP Manweb and others.
On 18th June the Secretary of State for Energy and Climate
Change, Amber Rudd, said: "we are driving forward our commitment to
end new onshore wind subsidies and give local communities the final
say over any new windfarms. Onshore wind is an important part of
our energy mix and we now have enough subsidised projects in the
pipeline to meet our renewable energy commitments".
The status of our project in relation to this statement and its
eligibility for subsidy is unclear. Whilst the consent decision
will be made this year, the grid substation delays mean it probably
will not be connected before 2020. It is looking increasingly
unlikely that any 2020 onshore wind projects will be allowed access
to future Contract for Difference rounds. The Minister's view, as
stated above, is that onshore wind must survive without subsidy
support. We and others within the renewables industry feel that we
still have some way to go to achieve this condition. At the very
least the uncertainty of wholesale electricity prices makes
financing for windfarm projects, and therefore their valuations for
sale, very difficult.
We are, however, pleased to see that the Welsh Government
recognises that onshore wind is a vital component in meeting carbon
reduction targets and that windfarms provide an economic benefit to
rural communities not just in the construction phase but throughout
their operation. We are encouraged by the supportive written
statement on onshore wind issued by Edwina Hart AM, Minister for
Economy, Science and Transport and Carl Sargeant AM, Minister for
Natural Resources on 21st September 2015.
Poland
We have continued to market the project but have yet to attract
a buyer. Although we noted some progress with the Polish Energy Act
in our year end accounts, there has been no further progress in
finalising the details of the auction system. These ongoing issues
have not helped to stimulate the market.
Carnegie Wave Energy Limited ("CWE")
The Perth Wave Energy Project demonstrator at Garden Island
(CETO 5) continues to operate, allowing CWE to gain experience of
operating and maintaining the CETO technology. In parallel CWE
continues to develop a CETO 6 Project with a 3 unit array with 3MW
total capacity and a 2017 target date. Two sites are being
considered including Garden Island, Western Australia and Wave Hub,
Cornwall UK.
Going Concern and Future Funding
The Directors are of the opinion that, utilising the remainder
of the current loan support from Utilico, the Company has
sufficient resources to enable it to continue to operate until the
planning decision is made. Should consent be received future
funding would then be necessary. However factors such as the grid
situation in mid Wales and assessments of the likelihood of
qualifying for any financial support mechanism for onshore
windfarms will all be considered together with the Company's
current indebtedness by any potential funder. If no further funding
were to be available the Group would likely commence
liquidation.
David Weir
Chairman
September 2015
Interim consolidated income statement
For the six months ended 30 June 2015
30 June 30 June 31 December
2014
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000's
Note GBP000's GBP000's
------------------------------- ------ ------------- ------------- ------------
Revenue - - -
Cost of sales - - -
------------------------------- ------ ------------- ------------- ------------
Gross profit / (loss) - - -
Other operating income 11 - -
Development expenditure (4) (1) (4)
Administrative expenditure (298) (223) (458)
------------------------------- ------ ------------- ------------- ------------
Loss from operations (291) (224) (462)
Finance income - - -
Finance costs (483) (409) (889)
------------------------------- ------ ------------- ------------- ------------
Loss before income tax (774) (633) (1,351)
Income tax credit / (expense) - - -
------------------------------- ------ ------------- ------------- ------------
Loss for the period from
continuing operations (774) (633) (1,351)
Discontinued operations:
Loss for the period from
discontinued operations 2 (27) (78) (2,300)
------------------------------- ------ ------------- ------------- ------------
Loss for period (801) (711) (3,651)
------------------------------- ------ ------------- ------------- ------------
Loss attributable to:
Owners of the Parent (801) (711) (3,651)
Non-controlling interests - - -
------------------------------- ------ ------------- ------------- ------------
(801) (711) (3,651)
------------------------------- ------ ------------- ------------- ------------
Loss per share attributable
to the equity holders
of the Parent during
the period:
Basic and diluted (1.11) p (0.91) (1.94) p
From continuing operations (0.04) p p (3.30) p
From discontinued operations (0.11)
p
------------------------------- ------ ------------- ------------- ------------
(1.02)
(1.15) p p (5.24) p
------------------------------- ------ ------------- ------------- ------------
Interim consolidated statement of comprehensive income
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For the six months ended 30 June 2015
30 June 30 June 31 December
2014
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000's
GBP000's GBP000's
-------------------------------------- ------------- ------------- ------------
Loss for the period (801) (711) (3,651)
Other comprehensive income
/ (expenditure):
Exchange differences on translating
foreign operations
Gain / (loss) arising on
revaluation of (84) (152) (119)
Available for sale financial
assets (726) 282 576
-------------------------------------- ------------- ------------- ------------
Total comprehensive income
/
(expenditure) for the period (1,611) (581) (3,194)
-------------------------------------- ------------- ------------- ------------
Total comprehensive income
/
(expense) attributable to
the equity holders of the
Parent during the period:
From continuing operations
From discontinued operations (1,584) (503) (894)
(27) (78) (2,300)
-------------------------------------- ------------- ------------- ------------
(1,611) (581) (3,194)
-------------------------------------- ------------- ------------- ------------
Consolidated statement of changes in equity
For the six months ended 30 June 2015
Share Foreign Share-based Non-controlling
Share premium exchange payment Available Retained interests
capital reserve reserve reserve Merger for earnings Total GBP000's Total
GBP000's GBP000's GBP000's GBP000's reserve sale GBP000's GBP000's equity
GBP000's reserve GBP000's
GBP000's
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Balance at
1 January 2015 696 26,740 (462) 1,134 4,410 655 (33,248) (75) (532) (607)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Comprehensive
expenditure
Loss for the
period - - - - - - (801) (801) - (801)
Other
comprehensive
Income /
(expenditure):
Exchange
differences
on
translating
foreign
operations
Gain / (loss)
arising on
revaluation
of Available - - (84) - - - - (84) - (84)
for sale
Financial
assets - - - - - (726) - (726) - (726)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Total
comprehensive
income
/
(expenditure)
for the
period - - (84) - - (726) (801) (1,611) - (1,611)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Transactions
with owners - - - - - - - - - -
Share based
payment charge
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
- - - - - - - - - -
Balance at
30 June 2015 696 26,740 (546) 1,134 4,410 (71) (34,049) (1,686) (532) (2,218)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Consolidated statement of changes in equity
For the six months ended 30 June 2014
Share Foreign Share-based Non-controlling
Share premium exchange payment Available Retained interests
capital reserve reserve reserve Merger for earnings Total GBP000's Total
GBP000's GBP000's GBP000's GBP000's reserve sale GBP000's GBP000's equity
GBP000's reserve GBP000's
GBP000's
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Balance at
1 January 2014 696 26,740 (343) 1,134 4,410 79 (29,597) (3,119) (532) 2,587
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Comprehensive
expenditure
Loss for the
period - - - - - - (711) (711) - (711)
Other
comprehensive
Income /
(expenditure):
Exchange
differences
on
translating
foreign
operations
Gain / (loss)
arising on
revaluation
of Available - - (152) - - - - (152) - (152)
for sale
Financial
assets - - - - - 282 - 282 - 282
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Total
comprehensive
income
/
(expenditure)
for the
period - - (152) - - 282 (711) (581) - (581)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Transactions
with owners - - - - - - - - - -
Share based
payment charge
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
- - - - - - - - - -
Balance at
30 June 2015 696 26,740 (495) 1,134 4,410 361 (30,308) (2,538) (532) 2,006
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Consolidated statement of changes in equity
For the year ended 31 December 2014
Share Foreign Share-based Non-controlling
Share premium exchange payment Available Retained interests
capital reserve reserve reserve Merger for earnings Total GBP000's Total
GBP000's GBP000's GBP000's GBP000's reserve sale GBP000's GBP000's equity
GBP000's reserve GBP000's
GBP000's
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Balance at
1 January 2014 696 26,740 (343) 1,134 4,410 79 (29,597) 3,119 (532) 2,587
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Comprehensive
expenditure
Loss for the
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period - - - - - - (3,651) (3,651) - (3,651)
Other
comprehensive
Income /
(expenditure):
Exchange
differences
on
translating
foreign
operations
Gain / (loss)
arising on
revaluation
of Available - - (119) - - - - (119) - (119)
for sale
Financial
assets - - - - - 576 - 576 - 576
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Total
comprehensive
income
/
(expenditure)
for the
period - - (119) - - 576 (3,651) (3,194) - (3,194)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Transactions
with owners - - - - - - - - - -
Share based
payment charge
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
- - - - - - - - - -
Balance at
30 June 2015 696 26,740 (462) 1,134 4,410 655 (33,248) (75) (532) (607)
---------------- ---------- ---------- ---------- ------------- ---------- ----------- ---------- ---------- ----------------- ----------
Consolidated balance sheet
As at 30 June 2015
30 June 30 June 31 December
2014
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000's
Note GBP000's GBP000's
-------------------------------- ------ ------------- ------------- ------------
Non-current assets
Property, plant and equipment 2,664 1,788 2,133
-------------------------------- ------ ------------- ------------- ------------
Total non-current assets 2,664 1,788 2,133
-------------------------------- ------ ------------- ------------- ------------
Current assets
Cash and cash equivalents 111 193 94
Trade and other receivables 847 842 852
Available for sale financial
asset 2,468 2,809 3,194
Assets of a disposal
group classified as
held for sale 1,977 4,327 2,094
-------------------------------- ------ ------------- ------------- ------------
Total current assets 5,403 8,171 6,234
-------------------------------- ------ ------------- ------------- ------------
Total assets 3 8,067 9,959 8,367
-------------------------------- ------ ------------- ------------- ------------
Current liabilities
Trade and other payables (304) (1,941) (267)
Liabilities directly
associated with
assets of a disposal
group classified as
held for sale (461) (559) (521)
Borrowings (9,020) (4,953) (7,686)
-------------------------------- ------ ------------- ------------- ------------
Total current liabilities (9,785) (7,453) (8,474)
-------------------------------- ------ ------------- ------------- ------------
Non-current liabilities
Borrowings (500) (500) (500)
-------------------------------- ------ ------------- ------------- ------------
Total non-current liabilities (500) (500) (500)
-------------------------------- ------ ------------- ------------- ------------
Total liabilities 3 (10,285) (7,953) (8,974)
-------------------------------- ------ ------------- ------------- ------------
Net assets / (liabilities) (2,218) 2,006) (607)
-------------------------------- ------ ------------- ------------- ------------
Capital and reserves
attributable
To equity holders of
the Parent
Share capital 696 696 696
Share premium 26,740 26,740 26,740
Foreign exchange reserve (546) (495) (495)
Share-based payment reserve 1,134 1,134 1,134
Merger reserve 4,410 4,410 4,410
Available for sale reserve (71) 361 655
Retained earnings (34,049) (30,308) (33,248)
-------------------------------- ------ ------------- ------------- ------------
(1,686) 2,538 (75)
Non-controlling interests (532) (532) (532)
-------------------------------- ------ ------------- ------------- ------------
Total equity (2,218) 2,006 607
-------------------------------- ------ ------------- ------------- ------------
Interim consolidated cash flow statement
For the six months ended 30 June 2015
30 June 30 June 31 December
2014
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000's
Note GBP000's GBP000's
--------------------------------- ------- --- ------------- ------------- ------------
Cash flows from operating
activities
Result for the period
Adjustments for: (801) (711) (3,651)
Depreciation expense
Foreign exchange gain - 1 -
Impairment of asset classified - - (4)
as held
for sale - - 2,169
Finance income - - -
Finance costs 483 409 889
----------------------------------------------- ------------- ------------- ------------
(318) (301) (597)
Change in trade and other
receivables 38 8 (7)
Change in trade and other
payables (23) 48 (40)
----------------------------------------------- ------------- ------------- ------------
Cash generated from /
(used in)
operations (303) (245) (644)
Income taxes paid - - -
--------------------------------- ------- --- ------------- ------------- ------------
Net cash from operating
activities (303) (245) (644)
----------------------------------------------- ------------- ------------- ------------
Investing activities
Purchased of property,
plant and
equipment (531) (300) (670)
Finance income received - - -
----------------------------------------------- ------------- ------------- ------------
Net cash from / (used
in)
investing activities (531) (300) (670)
----------------------------------------------- ------------- ------------- ------------
Financing activities
Loans received 851 400 1,075
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Loan repayments - - -
Finance costs paid - - -
----------------------------------------------- ------------- ------------- ------------
Net cash provided / (used
in)
financing activities 851 400 1,075
----------------------------------------------- ------------- ------------- ------------
Effect of movement in
exchange
rates on cash - 1 (4)
----------------------------------------------- ------------- ------------- ------------
Net increase / (decrease)
in cash
and cash equivalents
17 (144) (243)
Cash at beginning of
the period 95 38 338
----------------------------------------------- ------------- ------------- ------------
Cash at end of period 112 194 95
----------------------------------------------- ------------- ------------- ------------
Cash included in assets
held for sale (1) (1) (1)
----------------------------------------------- ------------- ------------- ------------
111 193 94
--------------------------------------------- ------------- ------------- ------------
Notes to the interim consolidated financial information
For the six months ended 30 June 2015
1. Basis of preparation
This unaudited consolidated interim financial information has
been prepared using the recognition and measurement principles of
International
Accounting Standards, International Financial Reporting
Standards and Interpretations adopted for use in the European Union
(collectively IFRSs).
The principal accounting policies used in preparing the interim
results are those the Company expects to apply in its Financial
Statements for
the year ended 31 December 2015 and are unchanged from those
disclosed in the Company's audited Annual Report and Financial
Statements
for the year ended 31 December 2014 which are available at
www.reh-plc.com.
In assessing the going concern basis of preparation of the
financial information for the period ended 30 June 2015, the
Directors have taken into
account the status of current negotiations on the sale of
assets, forecasts and projections through to June 2016. The
Directors consider that the
Group has sufficient facilities for its ongoing operations and
therefore have continued to adopt the going concern basis in
preparing the June 2015
financial results.
While the financial information included in this consolidated
interim financial information has been prepared in accordance with
the AIM Rules for
Companies and with IFRSs, this interim consolidated financial
information does not itself contain sufficient information to
comply fully with IFRSs.
As permitted, the Company has chosen not to adopt IAS 34
'Interim Financial Statements' in preparing these interim financial
statements.
The financial information for the six months ended 30 June 2015
and 30 June 2014 is unaudited and does not constitute the Company's
statutory
financial statements for those periods. The comparative
financial information for the full year ended 31 December 2014 has,
however, been derived
from the statutory financial statements for that period. The
auditors' report on those accounts was unqualified and did not
contain a statement under
section 15.4 of the Isle of Man Companies Act 1982. Without
qualifying their report, the auditors drew attention by way of
emphasis of matter, the
disclosures relating to the Group's ability to continue as a
going concern.
2. Discontinued operations
Plan to dispose of wind farm project
On 30 April 2012 the Group announced the orderly sale of its
assets and the return of cash to shareholders. The Group is
actively seeking a buyer for its
Polish wind farm project. It is the Director's judgement that
the Polish wind farm project meets the criteria under IFRS 5 "Non
Current Assets and Discontinued
Operations" to be classified as held for sale. Accordingly the
Group's Polish operations have been presented as discontinued
operations.
Analysis of loss for the period from discontinued operations
The results of the discontinued operations (i.e. the Polish wind
farm project) included in the Consolidated income statements are
set out below.
The comparative loss and cash flows from discontinued operations
have been re-presented to include those operations classified as
discontinued in the current year.
30 June 30 June 31 December
2014
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000's
GBP000's GBP000's
------------------------------ --- ------------- ------------- ------------
Impairment of asset of
Polish Wind Farm - - (2,169)
Cost of sales (7) (43) (84)
Expenses other than finance
costs (20) (35) (47)
Finance costs - - -
----------------------------------- ------------- ------------- ------------
Profit / (loss) before
tax from discontinued
operations (27) (78) (2,300)
Tax - - -
----------------------------------- ------------- ------------- ------------
Profit / (loss) before
tax from discontinued
operations (27) (78) (2,300)
----------------------------------- ------------- ------------- ------------
3. Segmented information
30 June 2015
CETO
Head Development Wind farms Wind farms
office Australia Poland Wales Total
Isle GBP000's GBP000's GBP000's GBP000's
of man
GBP000's
------------------------------- ----------- ------------- ------------- ------------- -----------
Investment in wind farms - - 1,895 3,412 5,307
Available for sale financial
assets - 2,468 - - 2,468
Other assets 188 - 82 21 291
------------------------------- ----------- ------------- ------------- ------------- -----------
Reportable segment assets 188 2,468 1,977 3,433 8,067
------------------------------- ----------- ------------- ------------- ------------- -----------
Reportable segment liabilities (9,248) - (461) (576) (10,285)
------------------------------- ----------- ------------- ------------- ------------- -----------
30 June 2014
CETO
Head Development Wind farms Wind farms
office Australia Poland Wales Total
Isle GBP000's GBP000's GBP000's GBP000's
of man
GBP000's
------------------------------- ----------- ------------- ------------- ------------- -----------
Investment in wind farms - - 4,234 2,539 6,773
Available for sale financial
assets - 2,809 - - 2,809
Other assets 177 - 93 107 377
------------------------------- ----------- ------------- ------------- ------------- -----------
Reportable segment assets 177 2,809 4,327 2,646 9,959
------------------------------- ----------- ------------- ------------- ------------- -----------
Reportable segment liabilities (6,717) - (559) (677) (7,953)
------------------------------- ----------- ------------- ------------- ------------- -----------
31 December 2014
CETO
Head Development Wind farms Wind farms
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