TIDMRWE
RNS Number : 7412C
Renewable Energy Generation Ltd
19 November 2009
Press Release
19 November 2009
Renewable Energy Generation Ltd
("REG", "the Company" or "the Group")
Unaudited Preliminary Results for the year ended 30 June 2009
Renewable Energy Generation Limited (AIM: RWE), the renewable energy group,
today announces its unaudited preliminary results for the year ended 30 June
2009.
Financial Year Highlights
* Group revenue of GBP5.6 million (2008: GBP3.5 million)
* UK wind business generated profit after tax of GBP0.5 million
* Proposal to pay final dividend of 1.5p per Ordinary Share (2008: 3p)
Post Year End Developments
* Sale of AIM PowerGen Corporation to International Power Canada Inc. for
consideration of C$124.8 million (completed on 22 October 2009)
* Refocusing of Group to grow UK wind portfolio and the REG Bio-Power business
* Repayment of all the continuing Group's debt
* 21.3MW of operational wind assets at seven locations across the UK
* Wind project pipeline now 350MW, 16MW of which is due for completion in 2010
* Three Bio-Power units totalling 1.2MW now operational
* REG Bio-Power first commercial contract signed
* Re-domiciliation to Jersey underway, further preparing the Group for the next
stage of growth
* Appointment of Matthew Partridge as Head of Wind Development, strengthening the
management team
REG Chief Executive Officer Andrew Whalley said:
"The sale of our Canadian business is genuinely transformational for REG. The
Group now has no bank debt and a strong cash balance. The market for small wind
projects in the UK has improved over the last few months. Larger developers are
now focussed on bigger-scale offshore and onshore projects, which is providing
further opportunities for smaller developers with strong balance sheets like
REG.
"We aim to pursue a twin strategy of adding substantially to operating MWs over
the next 3 years through the development of our own portfolio whilst, at the
same time, consolidating/acquiring a number of smaller wind projects which are
either operating or have planning consent."
A presentation to analysts will be held today at 9:30am at the offices of Numis
Securities, The London Stock Exchange Building, 10 Paternoster Square,
London EC4M 7LT. If you would like to attend, please contact Jennifer Kelly at
Hogarth on 020 7357 9477.
ENDS
Contacts:
Renewable Energy Generation Ltd Tel: 01483 901 790
Andrew Whalley, Chief Executive Officer
David Crockford, Finance Director
Numis Securities LtdTel: 020 7260 1000
Nominated Advisor: Simon Blank / Hugh Jonathan
Corporate Broker: David Poutney / Charlie Farquhar
Hogarth Partnership Ltd Tel: 020 7357 9477
Sarah MacLeod
Julian Walker
Vicky Watkins
Notes to Editors
Renewable Energy Generation Ltd (REG) is a UK orientated renewable energy group.
The Group's main business is the development, construction and operation of wind
farms in the UK and generating power from refined used cooking oil in the UK.
* The Cornwall Light & Power Co. Ltd: based in Cornwall, UK, it currently operates
seven wind projects in Cornwall, County Durham, Cumbria and Gwynedd, with a
total capacity of 21.3MW and has a development pipeline of around 350MW.
* REG Bio-Power UK Ltd: based in Norfolk, UK: it operates electricity generation
plant fuelled by vegetable oil.
Headquartered in Guernsey, REG was admitted to trading on AIM, a market operated
by the London Stock Exchange, in May 2005 (AIM:RWE).
www.renewableenergygeneration.co.uk
Chairman's Statement
Background
2009 has been an extremely challenging year for Renewable Energy Generation
(REG) and, indeed, rarely has the energy industry itself seen such turbulent
times.
Set against a worsening economic backdrop, the annual rate of growth in
sustainable energy investment world-wide dropped from around 50% seen in recent
years, to just 5%*, reflecting very poor liquidity in global financial markets,
high borrowing costs and falling energy prices.
The sustainable energy sector fared better than the overall energy sector with
investment in capacity being higher than in fossil-fuel powered projects for the
first time, with its share of global capacity investment rising to 41%. However,
the modest 6% contribution by sustainable energy to total power capacity
highlights the size of the gap between its current position and the global
ambitions of the G8 Nations.
Although the effects of the global financial crisis on the clean energy sector
were initially muted by very high oil prices, the impact in the final quarter of
2009 was severe.
The financial crisis prompted a radical change in our strategy for realising the
full potential of our Canadian operations, which by the beginning of this year
had built assets and pipeline valued at more than C$100 million. Tightening
conditions in debt markets, combined with high acquisition prices, led us to
conclude that we could not secure sufficient capital to extract full value from
Aim PowerGen's project pipeline and we instructed advisors to develop
competitive bids for the disposal of some or all of our Canadian assets. The
resulting bidding process was within a few days of completion when in October
2008 the sudden banking crisis and collapse of equity markets caused the failure
of final price negotiations for our sale of the whole of AIM PowerGen
Corporation (APG).
In the 12 months that followed we successfully completed the re-financing of our
first four operating projects in Ontario and raised debt to build the next four.
More crucially, we ultimately rejected several bids for the whole or parts of
the REG group, before successfully completing negotiations for the sale of APG
to International Power Canada Inc. for a consideration of C$124.8m.
The sale was completed after the year end in October 2009, removing uncertainty
over the funding of our current UK wind project pipeline and strengthening the
Company's growth prospects.
By re-focusing on our UK pipeline with the ability to build projects with
all-equity financing, which was originally adopted by the Group to avoid the
risk premiums and procedural delays involved in securing pre-construction debt,
we have created a new platform for growth.
*New Energy Finance 2009
UK Focus - A New Platform for Growth
Following the financial crisis and with the likelihood of continuing credit
market tightness in the medium term, we believe that our ambitions for value
creation can be fulfilled with less capital deployed, by focussing on our home
market where our expertise equips us with the ability to address the higher
risks associated with the superior returns available.
The Board's view that worsening power plant capacity margins will sustain
relatively high wholesale power prices in the UK is reinforced by the UK energy
regulator OFGEM's October 2009 report "Project Discovery". It warns that
retirements of older nuclear power plants and forced closures of coal and oil
plants by the end of 2015 could seriously threaten supply security and lead to
power price rises of 14% to 60%.
The UK's legal obligation under European directives is to meet 15% of its total
energy needs from renewable sources by 2020, which means 30% of electricity must
be derived from renewable energy, compared with just 7% currently achieved.
The extension of the Renewables Obligation until at least 2037 is one of many
recent positive policy initiatives, and the implementation this year of the
promised additional incentives for Combined Heat and Power is timely for the
planned expansion of our REG Bio Power business.
The UK's Planning system does remain a challenge, but progress is being made and
2009 was a record year for UK wind capacity consent, making it also the first
year in which more on-shore wind capacity was consented than submitted.
Installed wind energy capacity in the UK now exceeds 3000MW, but there remains a
substantial gap between this and the 14000MW of on-shore wind capacity generally
accepted by policy-makers as being required for the UK to meet its obligation
under the European Renewable Energy Directive.
This, and encouraging progress elsewhere, such as the Aviation Memorandum of
Understanding between the wind industry, the Ministry of Defence, Civil Aviation
Authority and others, gives us further confidence that the full potential of our
UK project pipeline can be realised.
The sale of our Canadian wind business transforms our balance sheet, with more
than half of our book value held in cash as we begin the build-out of 16MW of
consented projects in the UK due for completion next year.
We are confident of exploiting over-supply in the wind turbine market, where a
30% increase in global manufacturing capacity in 2009 has triggered price falls
of 10-15%, and with the new found financial security, we expect to benefit from
financial distress among small developers and de-leveraging pressure on large
utilities.
Strengthened Governance
Following approval from shareholders in October 2009, our objective is to
re-domicile in Jersey during the current financial year to reap the benefits
from a regulatory regime more suited to our needs, having fully evolved from a
fund into an operating company.
The Group's refocus and re-domicliation will also enable us to resume our plans
to further strengthen the Board and management team in preparation for the next
stage of our growth.
I should like to take this opportunity to thank our employees, whose efforts and
achievements throughout this difficult year have put the Company in a strong
position for growth. In particular, I wish our colleagues in Canada every
success under their new ownership.
Dividend
Following the sale of the Canadian operations, the Board is recommending a final
dividend of 1.5p per Ordinary share. This is reduced from the 3p that we paid
last year, but we believe it is a prudent level. The balance sheet now underpins
the current dividend and will allow the Board to reassess the payment as
earnings grow with further projects being constructed over the coming years.
The dividend will be paid on 23 December 2009 to members on the register on 27
November 2009. Shares will be marked ex-dividend on 25 November 2009.
Chief Executive's Statement
Strategy and key goals
This has been a watershed year in the development of your business as management
has continued to focus on investment in energy projects that contribute to
sustainable energy targets, while providing a sound long term return to our
shareholders.
The Group's strategy is founded upon the effective management of its operating
businesses, sound analysis of potential investments and the continued
maintenance of a strong balance sheet.
Despite the unsolicited and time consuming attention of potential suitors for
the Group, we have maintained our focus on generating renewable energy in a
reliable and sustained manner and delivered a transformational transaction after
the year end to provide a sound financial and focused platform for future
development.
Financial Highlights
Group revenue from continuing activities rose by 57% to GBP5.6m with gross
profits of GBP2.1m (2008 - GBP1.9m), driven by the increased output from UK wind
farms and continued revenue growth from REG Bio-Power. The group recorded a
group trading loss from continuing activities of GBP2.4m (2008 - loss of
GBP1.4m) after accounting for exceptional costs of GBP0.4m, relating to the
aborted takeover bid for REG in the year.
Discontinued activities, being the AIM PowerGen Corporation, contributed a net
loss of GBP7.0m to the Group's results.
Post-period activity
On 30 September 2009, after the end of the period being reported, we announced
the sale of our Canadian wind business, AIM PowerGen Corporation, to
International Power Plc. The transaction was completed on 22 October 2009. The
sale not only realised a fair value for the Canadian business but it also
enables us to refocus our resources on growing REG's UK wind portfolio and to
repay all outstanding debt.
Part of the proceeds from the sale were used after the year end to repay the
revolving credit facility of GBP15.0m from Bank of Scotland, leaving the REG
Group entirely free of debt.
Part of the proceeds from the sale will be used in the construction of two
consented wind projects at Goonhilly Downs in Cornwall and at Loscar in
Yorkshire and to facilitate a long term structured financing agreement. This
will enable REG to build a significant portfolio of operational wind farms
without recourse to further equity raisings.
The Canadian sale has reduced annual Group overheads by around GBP2.5m, which,
combined with REG's strong balance sheet, including 21.3MW of operational wind
assets in the UK, underpins the current dividend and will allow the Board to
reassess the payment as earnings grow with further wind farms being constructed
over the next few years.
Following the year end, the group has gained consent for a single turbine
project in Redland, Devon, which will commence construction in 2010.
Overview of period
UK wind
REG now operates 21.3MW of wind projects at seven locations across the UK.
Total output from these projects increased by 19% from 34.6GWh to 41.1GWh.
Revenue achieved totalled GBP4.6m compared with GBP3.6m in 2008.
During the period we commissioned two new single turbine wind projects at
Whittlesey and Ramsay, both located in Cambridgeshire. Using Vestas V90 1.8MW
turbines, both projects were completed on schedule and within budget and are
amongst the largest onshore machines in the UK.
In 2009 we experienced a lower than average wind resource across the UK - we
would ordinarily expect our UK operating projects to produce almost 50GWh during
a normal year, however, I am pleased to report that the current year has started
with wind production above average.
Our UK business is already profitable, given its relatively low overhead and,
whilst we anticipate some additional expenditure in order to increase the flow
of consented projects from our pipeline, the expense ratio of the Group should
continue to improve as further operational MWs are added to our existing cost
base.
Electricity prices in the UK have fallen dramatically over the last twelve
months, however this has underlined the success of the Group's strategy to
pre-sell its UK output under a power purchase agreement at double the current
level. The value of renewable obligation certificates ("ROCs") has been firm
over the period and we have carried out sales at between GBP49 and GBP53 per
ROC. Whilst the UK remains substantially short of renewable energy capacity we
expect the price of ROCs to remain stable. Thus, the achieved price for our UK
output to March 2011 should be around GBP135 per MWh.
When we purchased the Wind Works portfolio from NPower in 2005 our development
pipeline numbered 24 projects with a total potential capacity of around 75MW.
We now have over 40 projects under active development with a total potential
installed capacity of around 350MW. A number of new projects are expected to
receive a planning determination over the next twelve months.
In the meantime we are starting work on our two consented projects at Goonhilly
and Loscar.
* Built in 1994, Goonhilly was one of the first UK wind farms. Since its purchase
by REG in 2005 it has produced over 36.6GWh of output. The new granted planning
permission will allow the existing fourteen Windane 34 machines to be replaced
with six new turbines, improving output by over three times to around 27GWh per
annum. This new project is expected to, at times of high wind, provide
sufficient power for the entire Lizard Peninsula in Cornwall.
* Loscar in Yorkshire has also moved to construction and will comprise three
machines with a total anticipated capacity of 4.5MW. The project is expected to
produce around 10GWh of clean electricity per annum and will make a solid
contribution to local renewable energy targets.
The construction of Goonhilly and Loscar will increase our total UK output of
green electricity to over 80GWh per annum. However, now that we have one of the
strongest balance sheets amongst the smaller wind developers, our ambition is to
grow our UK wind capacity to over 100MW over the next few years. We believe we
will have ample opportunities to deploy new capital at attractive rates of
return and notwithstanding continued local planning hurdles, we believe our UK
pipeline will continue to deliver worthwhile projects across the UK.
REG Bio-Power
When we acquired the two constituent companies of REG Bio-Power, Living Fuels
and Living Power in 2006 we did not fully appreciate the confused state of the
legislation governing the use of used cooking oil in the UK. Belief in the
proposition and a good performance in the business have enabled us to make good
progress and we have now been granted permission from the Environment Agency to
use our proprietary refining process to turn used cooking oil into a fuel that,
subject to the right environmental permits, can be used in diesel engines to
make renewable electricity. We believe this to be a groundbreaking
environmental and legislative development.
Following this success we now have three generating units totalling 1.2MW which
have been producing green electricity for several months. The first unit is a
400kW unit, operating as a combined heat and power plant thus qualifying for two
ROCs. The second two units is a partial start up of our existing Bentwaters
power station operating at 800KW as an open cycle plant, qualifying for 1.5
ROCS.
We have taken the process from start-up to revenue generation slowly in order to
gather operational data on this new application for the Volvo engines that we
are using. However, we are gaining confidence that the concept now works and
accordingly we are anticipating purchasing a plant to process around 6000 tons
per annum of LF100.
The cost of this project will be around GBP300,000 and will produce sufficient
fuel to produce around 25GWh per annum of green electricity.
REG Bio-Power has a number of projects that will move to construction over the
next few months. All will be constructed as combined heat and power plants which
will capture 2 ROCs for every MW generated. This will optimise the economics of
the fuel being used.
REG Bio-Power is at the forefront of confronting, challenging and even changing
legislation surrounding the use of used cooking oil as a renewable fuel. Now
that we have been through the inevitably difficult gestation period we are
confident that we have a valuable business worthy of further modest incremental
investment over the next twelve months, underpinned by a ready supply of used
cooking oil through our exclusive agreements with local UK councils and London
boroughs.
Canada
The Canadian business finalised the commissioning of four new wind projects
totalling 39.6MW during the year, built under the Canadian standard offer
programme, which is a twenty year power purchase agreement at C$0.11 per KWh. A
further four projects again totalling 39.6MW have just been refinanced and are
currently moving to construction.
AIM has been one of the key participants in securing the new Green Energy act in
Ontario. The new twenty year feed in tariffs are highly attractive for large
scale wind developers like International Power and we are pleased to have
realised a fair value for this operation with its subsequent sale.
Outlook
The sale of our Canadian business is genuinely transformational for REG. The
Group now has no bank debt and a strong cash balance. REG will put in place some
moderate structured long term financing that should allow the Group to fulfil
its ambition of building a substantial portfolio of operational wind plant in
the UK over the next few years. The sale will also benefit our profit and loss
account and underpins our dividend proposition.
The market for small wind projects in the UK has improved over the last few
months. Larger developers are now focussed on bigger-scale offshore and onshore
projects, which provides further opportunities for smaller developers with
strong balance sheets like REG.
We aim to pursue a dual strategy of adding substantially to operating MWs over
the next 3 years through the development of our own portfolio whilst, at the
same time, consolidating / acquiring a number of smaller wind projects which are
either operating or have planning consent.
Unaudited Consolidated Income Statement
For the year ended 30 June 2009
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | 2009 | Restated |
| | | | | | 2008 |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | GBP | GBP |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Revenue | | | | 5,588,668 | 3,543,519 |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Cost of sales | | | | (3,512,469) | (1,605,752) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Gross profit | | | | 2,076,199 | 1,937,767 |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Administrative expenses | | | | (2,950,508) | (2,557,678) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Exceptional administration expense | | | | (447,536) | - |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Development costs | | | | (1,111,573) | (753,936) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Group trading loss | | | | (2,433,418) | (1,373,847) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Other operating income | | | | 41,564 | 61,980 |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Share of post tax loss of associate | | | | - | (48,035) |
| accounted for using the equity method | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Group operating loss from continuing | | | | (2,391,854) | (1,359,902) |
| operations | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Finance revenue | | | | 78,506 | 563,899 |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Finance costs | | | | (41,297) | (90,280) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Loss on continuing operations before | | | | (2,354,645) | (886,283) |
| taxation | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Tax credit/(charge) | | | | 296,284 | (139,085) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Loss for the year from continuing | | | | (2,058,361) | (1,025,368) |
| operations | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Discontinued operations | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Loss for the year from discontinued | | | | (7,049,519) | (3,059,826) |
| operations | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Loss for the year | | | | (9,107,880) | (4,085,194) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Loss for the year attributable to: | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Equity holders of the | | | | (9,107,880) | (4,085,194) |
| parent | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | ------- | ------- |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Loss per share (pence) | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Basic and diluted LPS from continuing | | | | (1.97p) | (0.99p) |
| operations | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| Basic and diluted LPS on loss for the year | | | | (8.83p) | (3.96p) |
+--------------------------------------------+--+--------+-------+-------------+-------------+
| | | | | | |
+--------------------------------------------+--+--------+-------+-------------+-------------+
Unaudited Consolidated Balance sheet
As at 30 June 2009
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | 2009 | 2008 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | GBP | GBP |
+----------------------------------------------+--------+--------+--------------+--------------+
| ASSETS | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Non-current assets | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Goodwill | | | 4,890,148 | 4,813,460 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Intangibles | | | - | 20,888,176 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Development costs | | | 3,870,496 | 3,920,595 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Property, plant and equipment | | | 23,909,467 | 80,658,466 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | 32,670,111 | 110,280,697 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Current assets | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Inventories | | | 54,972 | 116,217 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Trade and other receivables | | | 1,723,249 | 4,297,653 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Intangibles | | | 940,670 | 316,982 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Cash and cash equivalents | | | 705,922 | 16,453,225 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | 3,424,813 | 21,184,077 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Assets of disposal group held for sale | | | 108,487,037 | - |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| Total assets | | | 144,581,961 | 131,464,774 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | ------ | ------ |
+----------------------------------------------+--------+--------+--------------+--------------+
| EQUITY | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Share capital | | | 10,325,101 | 10,310,101 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Share premium | | | 79,707,376 | 79,645,688 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Special reserve | | | - | 10,000,000 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Fair value and other reserves | | | - | 4,009,899 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Share based payment reserve | | | 1,037,685 | 994,872 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Retained earnings | | | (15,069,313) | (12,352,148) |
+----------------------------------------------+--------+--------+--------------+--------------+
| Foreign currency translation reserves | | | 5,070,403 | |
| relating to disposal group | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| Total equity attributable to the Company's | | | 81,071,252 | 92,608,412 |
| equity holders | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | ----- | ----- |
+----------------------------------------------+--------+--------+--------------+--------------+
| LIABILITIES | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Non-current liabilities | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Financial liabilities | | | - | 16,915,481 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Deferred tax liabilities | | | 698,322 | 5,797,775 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | 698,322 | 22,713,256 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Current liabilities | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| Trade and other payables | | | 1,947,299 | 6,243,686 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Financial liabilities | | | 14,957,517 | 9,899,420 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | 16,904,816 | 16,143,106 |
+----------------------------------------------+--------+--------+--------------+--------------+
| Liabilities of disposal group classified as | | | 45,907,571 | - |
| held for sale | | | | |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| Total liabilities | | | 63,510,709 | 38,856,362 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+--------+--------------+--------------+
| Total equity and liabilities | | | 144,581,961 | 131,464,774 |
+----------------------------------------------+--------+--------+--------------+--------------+
| | | | ------ | ------ |
+----------------------------------------------+--------+--------+--------------+--------------+
Unaudited Consolidated Cash Flow Statement
For the year ended 30 June 2009
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | Year ended | Year ended |
| | | | | 30 June |
| | | | 30 June | 2008 |
| | | | 2009 | |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | GBP | GBP |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash flows from operating activities | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash used in operations | | | (8,387,173) | (4,584,309) |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+---------+--------------+--------------+
| Net cash used in operating activities | | | (8,387,173) | (4,584,309) |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash flows from investing activities | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Acquisition of subsidiaries, net of cash | | | - | (1,427,872) |
| acquired | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Purchase of property, plant and equipment | | | (25,804,244) | (44,815,860) |
+----------------------------------------------+--------+---------+--------------+--------------+
| Proceeds from sale of investments | | | - | 10,000,000 |
+----------------------------------------------+--------+---------+--------------+--------------+
| Interest received | | | 128,007 | 892,696 |
+----------------------------------------------+--------+---------+--------------+--------------+
| Movement in restricted cash accounts | | | (1,594,218) | 13,835,260 |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+---------+--------------+--------------+
| Net cash used in investing activities | | | (27,270,455) | (21,515,776) |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash flows from financing activities | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| New borrowings | | | 27,978,004 | 26,217,368 |
+----------------------------------------------+--------+---------+--------------+--------------+
| Repayment of borrowings | | | (915,468) | - |
+----------------------------------------------+--------+---------+--------------+--------------+
| Interest paid | | | (1,506,850) | (90,280) |
+----------------------------------------------+--------+---------+--------------+--------------+
| Dividends paid to the Company's equity | | | (3,609,285) | (4,124,040) |
| shareholders | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+---------+--------------+--------------+
| Net cash generated from financing activities | | | 21,946,401 | 22,003,048 |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Net decrease in cash and cash equivalents | | | (13,711,227) | (4,097,037) |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash at the beginning of the year | | | 16,453,225 | 20,751,234 |
+----------------------------------------------+--------+---------+--------------+--------------+
| Exchange loss | | | (219,822) | (200,972) |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash at end of year | | | 2,522,176 | 16,453,225 |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | ----- | ----- |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash at end of year - continuing operations | | | 705,922 | 16,453,225 |
+----------------------------------------------+--------+---------+--------------+--------------+
| Cash at end of year - discontinued | | | 1,816,254 | - |
| operations | | | | |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | -------- | -------- |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | 2,522,176 | 16,453,225 |
+----------------------------------------------+--------+---------+--------------+--------------+
| | | | ----- | ----- |
+----------------------------------------------+--------+---------+--------------+--------------+
Unaudited Consolidated Statement of Changes in Equity
For the year ended 30 June 2009
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | Share | Share | Special | Fair | Share | Retained | Foreign | Total |
| | capital | premium | reserve | value | based | earnings | currency | equity |
| | | account | | and | payment | | translation | |
| | | | | other | reserve | | reserves | |
| | | | | reserves | | | relating to | |
| | | | | | | | disposal | |
| | | | | | | | group | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| At 1 July 2007 | 10,310,101 | 79,645,688 | 10,000,000 | 1,479,662 | 546,648 | (4,142,914) | - | 97,839,185 |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Foreign | - | - | - | 2,530,237 | - | - | - | 2,530,237 |
| currency | | | | | | | | |
| translation | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Net income and | - | - | - | 2,530,237 | - | - | - | 2,530,237 |
| expense for | | | | | | | | |
| the year | | | | | | | | |
| recognised | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Loss for the | - | - | - | - | - | (4,085,194) | - | (4,085,194) |
| year | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Total income | - | - | - | 2,530,237 | - | (4,085,194) | - | (1,554,957) |
| and expense | | | | | | | | |
| for the year | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Share based | - | - | - | - | 448,224 | - | - | 448,224 |
| payments | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Dividend | - | - | - | - | - | (4,124,040) | - | (4,124,040) |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| At 30 June | 10,310,101 | 79,645,688 | 10,000,000 | 4,009,899 | 994,872 | (12,352,148) | - | 92,608,412 |
| 2008 | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Realised | - | - | - | (2,212,258) | - | - | - | (2,212,258) |
| foreign | | | | | | | | |
| exchange gain | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Foreign | - | - | - | 3,272,762 | - | - | - | 3,272,762 |
| currency | | | | | | | | |
| translation | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Net income and | - | - | - | 1,060,504 | - | - | - | 1,060,504 |
| expense for | | | | | | | | |
| the year | | | | | | | | |
| recognised | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Loss for the | - | - | - | - | - | (9,107,880) | - | (9,107,880) |
| year | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Total income | - | - | - | 1,060,504 | - | (9,107,880) | - | (8,047,376) |
| and expense | | | | | | | | |
| for the year | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Issue of share | 15,000 | 61,688 | - | - | - | - | - | 76,688 |
| capital | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Transfers | - | - | (10,000,000) | (5,070,403) | - | 10,000,000 | 5,070,403 | - |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Share based | - | - | - | - | 42,813 | - | - | 42,813 |
| payments | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| Dividend | - | - | - | - | - | (3,609,285) | - | (3,609,285) |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| At 30 June | 10,325,101 | 79,707,376 | - | - | 1,037,685 | (15,069,313) | 5,070,403 | 81,071,252 |
| 2009 | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | ----- | ----- | ----- | ----- | ---- | ----- | ----- | ----- |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
| | | | | | | | | |
+----------------+------------+------------+--------------+-------------+-----------+--------------+--------------+-------------+
Basis of preparation
This preliminary statement which is prepared on the same basis as set out in the
previous year's accounts was approved by the Board on 18 November 2009. It is
not the Company's statutory accounts. The statutory accounts for the year ended
30 June 2009 will be delivered to the Registrar of Companies.
Dividends
+-------------------------------------+------+------------------+------------+-------------+
| | | | 2009 | 2008 |
+-------------------------------------+------+------------------+------------+-------------+
| Declared and paid during the period | | | GBP | GBP |
+-------------------------------------+------+------------------+------------+-------------+
| | | |
+---------------------------------------------------------------+------------+-------------+
| Equity dividends on ordinary shares | | |
+---------------------------------------------------------------+------------+-------------+
| Final paid for 2008 of 3p (2007 - | 3,093,030 | 3,093,030 |
| 3p) per ordinary share | | |
+---------------------------------------------------------------+------------+-------------+
| Interim Dividend for 2009 paid of | 516,255 | 1,031,010 |
| 0.5p (2008 - 1p) per ordinary | | |
| share | | |
+---------------------------------------------------------------+------------+-------------+
| | ------- | ------- |
+---------------------------------------------------------------+------------+-------------+
| | 3,609,285 | 4,124,040 |
+---------------------------------------------------------------+------------+-------------+
| | | | ----- | ----- |
+-------------------------------------+------+------------------+------------+-------------+
A dividend of 1.5p per ordinary share, amounting to final dividend of
GBP1,548,765 was proposed by the directors at their meeting on 18 November 2009.
The proposed dividend has not been recognised as a liability as at 30 June 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FFWEFASUSEDF
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