IPSA Group PLC Trading Update (2529H)
November 27 2015 - 10:21AM
UK Regulatory
TIDMIPSA
RNS Number : 2529H
IPSA Group PLC
27 November 2015
27 November 2015
IPSA Group PLC
("IPSA" or the "Company")
Trading Update
IPSA, the AIM and Altx dual listed independent power plant
developer that owns and operates the combined heat and power plant
in Newcastle, KwaZulu Natal, Southern Africa ("Newcogen"), wishes
to announce that mechanical failure has occurred to gas turbine no
2 at Newcogen. This will result in reduced output of 5MW until
repairs can be effected. The cost of repairs is estimated at
GBP300,000. An insurance claim has been lodged. The timing of
repair to the turbine will be dependent upon the insurance claim
being settled. The Company intends to replace the core of the
turbine initially with a leased unit, which will return the turbine
to service within a month.
In the interim, the Company's working capital remains extremely
tight and the Company is reliant on the forbearance of creditors
whilst the repairs are completed.
The Company continues its discussions with a view to selling the
balance of plant associated with the previously sold 701DU turbines
as well as seeking to sell an interest in Newcogen although there
can be no certainty the Company will be successful in raising funds
from these sources or by other means in the short to medium
term.
Notwithstanding that the insurers settle the claim to repair
Newcogen's damaged turbine, the possibility exists that the Company
may have to be placed into administration.
For further information contact:
Mark Otto, Acting CEO
IPSA Group PLC +278 4219 2000
-------------------------------- ---------------------
James Joyce / James Bavister +44 (0)20 7220
W H Ireland Ltd 1666
-------------------------------- ---------------------
Riaan van Heerden,
PSG Capital (Pty) Ltd +27 (0)21 887 9602
-------------------------------- ---------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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