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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Aggregated Micro Power Holdings Plc | LSE:AMPH | London | Ordinary Share | GB00BC4F3V69 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 92.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAMPH
RNS Number : 4322Z
Aggregated Micro Power Holdings PLC
15 December 2017
Aggregated Micro Power Holdings plc
("AMP", the "AMP Group" or the "Company")
Interim Results for the six months ended 30 September 2017
Aggregated Micro Power Holdings plc (AIM: AMPH), a distributed energy company specialising in the sale of wood fuels and the financing and installation of distributed energy projects including biomass boiler ESCOs (energy supply contracts), stand by power generation and battery storage facilities, is pleased to announce results for the six months ended 30 September 2017.
Financial Highlights
-- Group revenues increased 217% to GBP11.2m (H1 2016: GBP3.5m) -- Gross profit increased 296% to GBP2.7m (H1 2016: GBP0.7m) -- Loss before tax GBP2.44m (H1 2016: GBP1.96m)
Operational Highlights
-- In May AMP assisted AMPIL 2 in raising GBP29.46m for further boiler and CHP projects, and future grid balancing projects, which means AMPIL 2 has over GBP50m invested or available for future investment
-- In June AMP acquired 50.1% of Highland Wood Energy Limited and is now providing a nationwide service and maintenance service available to all our biomass heat and CHP customers
-- In September AMP acquired the wood pellet customer base and assets from CPL
-- AMP's Projects Division has a strong pipeline including 120 MWs of gas-fired peaking plants and battery storage facilities currently seeking planning permission of which 90 MWs has pre-qualified for the forthcoming Capacity Market auction
Post Period End
-- In October AMP acquired a leading wood pellet supplier Billington Bioenergy Limited from Drax
-- In October the 21 MW gas-fired peaking plant in Kent was completed and successfully commissioned
-- In November AMP completed a GBP3.7m placing of new ordinary shares at 98.5 pence per ordinary share
-- The Board expects full year revenues to be in excess of GBP30m
Richard Burrell, Chief Executive of Aggregated Micro Power Holdings plc, said:
"Revenues are increasing as we expect and our combined fuels business now has over 4,000 biomass heat and CHP customers. Our recent wood fuels acquisitions and seasonal profits will be more fully reflected in the second half of our financial year when demand for heating is at its greatest. Our projects division, also weighted to the second half of our financial year, is making significant progress and has a strong and growing pipeline underpinned by the successful growth of funds provided by third party investment vehicles such as AMPIL 2. The recent sharp increase in gas prices following two gas supply infrastructure failures in Europe demonstrates the fragility of our energy supply infrastructure and further strengthens the case for large processed heat and electricity users in the U.K. to install biomass CHP for on-site generation of heat, steam and electricity."
Contacts
Aggregated Micro Power Holdings plc 020 7382 7800
Neil Eckert, Executive Chairman
Richard Burrell, CEO
Helene Crook, Investor Relations
Haggie Partners 020 7562 4444
Peter Rigby / Brian Norris
finnCap Ltd 020 7220 0500
Ed Frisby / Simon Hicks (Corporate Finance)
Stephen Norcross / Sultan Awan (Corporate Broking)
About Aggregated Micro Power Holdings plc
The AMP Group was established to develop, own and operate renewable energy generating facilities. It specialises in the sale of wood fuels and in the installation of distributed energy projects. AMP's wholly owned subsidiary Forest Fuels sells high quality wood chip and wood pellet to end customers throughout the UK, while its projects division installs biomass boiler and biomass CHP systems for a wide range of applications and customers. AMP is also active in developing projects for stand-by power generation and battery storage facilities which aim to balance the transmission grid at times of peak demand.
www.ampplc.co.uk
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Executive Chairman's Statement
This Interim Report is in respect of the six month period to 30 September 2017.
Interim Results
Group revenues increased to GBP11.2m (compared to GBP3.5m for the six months to 30 September 2016), gross profit increased to GBP2.7m (compared to GBP0.7m for the six months to 30 September 2016) and loss after tax increased to GBP2.4m (compared to a loss after tax of GBP1.9m for the six months to 30 September 2016).
These Interim Results do not yet fully reflect the positive impact of our most recent wood fuels business acquisitions as most of this turnover and future income is anticipated to be generated in the second half of the financial year (October through to March) where the heating season is at its busiest. Similarly, our project development business expects to complete or reach financial close on a number of larger projects during the second half of the financial year which is in line with our prior year experience. The write off of receivable relates to an amount advanced for a single project which was not awarded a Contract for Difference.
Net assets as at 30 September 2017 were GBP8.4m (31 March 2017: GBP10.4m). The balance sheet does not include any recognition for future deferred development fees that may be due from Aggregated Micro Power Infrastructure 2 plc ("AMPIL 2").
Aggregated Micro Power Holdings Six Months Ended September plc 2017 Year Ended March 2017 ------------------------------------------------------ -------------------------------------------------------- Operating Wood Project Wood Project segments Fuels Development Investments Total Fuels Development Investments Total GBP GBP GBP GBP GBP GBP GBP Revenue 10,390,142 858,879 - 11,249,021 15,841,292 3,877,850 - 19,719,142 Cost of sales (8,281,814) (296,625) - (8,578,439) (12,825,159) (1,419,899) - (14,245,058) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- Gross profit 2,108,328 562,254 - 2,670,582 3,016,133 2,457,951 - 5,474,084 Other operating income 63,019 193,219 - 256,238 235,776 163,813 - 399,589 Administrative expenses (2,496,916) (697,752) (539,323) (3,733,991) (2,494,726) (1,106,057) (1,619,109) (5,219,892) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- Adjusted EBITDA (325,569) 57,721 (539,323) (807,171) 757,183 1,515,707 (1,619,109) 653,781 Depreciation (318,069) - (5,347) (323,416) (353,760) - (4,799) (358,559) Finance expense (172,147) - (492,257) (664,404) (114,963) - (804,571) (919,534) Amortisation Intangibles - - (200,929) (200,929) - - (174,672) (174,672) P&L on sale of Assets (35,124) - - (35,124) 151,368 - - 151,368 Other Non-Recurring Costs - - (347,852) (347,852) (72,914) (99,672) (125,362) (297,948) FV Adjustment on Investment in Associate - - (90,729) (90,729) - - 1,879,044 1,879,044 Tax credit - - 30,982 30,982 59,614 - 34,755 94,369 ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- Profit/(Loss) for the period after tax (850,909) 57,721 (1,645,455) (2,438,643) 426,528 1,416,035 (814,714) 1,027,849 ============ ============ ============ ============ ============= ============ ============ =============
Interim Review
AMP operates through three business divisions: Wood Fuels; Project Development; and Investments.
AMP's wholly owned subsidiary Forest Fuels sells high quality wood chip and wood pellet to end customers throughout the UK in the form of fuel only contracts, heat contracts and/or fuels plus operation and maintenance. Included in the segmental results for the wood fuels business unit is the Group's 50.1% interest in Highland Wood Energy Limited ("HW Energy") which was acquired on 28 June 2017. As well as supplying fuel to customers in Scotland, HW Energy's principal activity is to provide operation and maintenance services to AMPIL 2 and third party customers who own biomass boilers. Following the acquisition, the HW Energy service and maintenance activities are now being expanded throughout the UK. On 4 September 2017, Forest Fuels acquired the wood pellet customer base and assets of CPL which supplies approximately 20,000 tonnes of premium wood pellet per annum to end customers. After the period end, on 25 October 2017, AMP also announced the acquisition of 100% of Billington Bioenergy Limited ("BBE") from Drax. BBE supplies around 40,000 tonnes of premium wood pellet per annum to end customers. In aggregate, the Wood Fuels
business unit will now supply fuel to over 4,000 customers which is expected to equate to circa 180,000 tonnes of wood pellet and 70,000 tonnes of wood chip per annum.
AMP's Project Development division develops, manages and facilitates financing of distributed energy projects focusing on biomass heat and biomass CHP for a wide range of applications and customers. We have developed projects for AMPIL 2 which owns one of the largest biomass boiler portfolios in the UK. On 25 May 2017 it was announced that AMPIL 2 had closed its latest fund raise amounting to GBP29.46m. This demonstrates that we now have the opportunity to access increasing amounts of new capital for biomass assets from high quality institutional and other investors. In aggregate, AMPIL 2 currently has over GBP50m invested or available for biomass heat and CHP and for grid balancing and battery storage projects. With biomass assets, our strategy is to offer all Forest Fuels customers the ability to sell their existing boiler systems to AMPIL 2 as well as to develop new, larger installations with commercial users of processed heat. We also develop and finance gas-fired peaking plants and battery storage facilities to provide reserve power and frequency stability which aim to balance the transmission grid at times of peak demand. We have recently completed the construction of a 21 MW gas-fired peaking plant at Kingsnorth in Kent and the project was commissioned in time for winter trading. This project was funded by Triple Point Investment Management LLP. The projects business has now assembled a portfolio in excess of 120 MWs of gas-fired peaking plants and battery storage facilities which are currently seeking planning permission. AMP's strategy is to continue developing its own project pipeline and to work with other project developers and third party infrastructure investors to generate a wide range of development fees from different projects.
AMP Investments aim is to grow assets under management and to build up off-balance sheet deferred development fees and carried interest together with making long term equity investments in companies aligned to our corporate strategy. It also includes the overhead costs of the Board and related PLC expenses. AMP owns 28.8% of IncubEx, which is a business set up to design and promote financial products in environmental, energy, power and weather markets. On 2 August 2017, IncubEx announced a global partnership with EEX which is part of Deutsche Bourse and in its first two months of operating this partnership, IncubEx has made strong progress towards becoming operational.
Full Year Outlook
On 3 November 2017, AMP announced a successful placing of new Ordinary Shares raising gross proceeds of GBP3.7m at a price of 98.5 pence per Ordinary Share. This placing was supported by existing and a number of new investors and was achieved at a small premium to the prevailing mid-market share price.
Proceeds from the placing provide balance sheet strengthening and are being deployed to provide working capital for the Wood Fuels business unit following the two most recent acquisitions, including to finance the planned ramp up in stocks to meet winter heating season demand from customers. In addition, cash proceeds from the placing will also be set aside to provide collateral and grid deposits for our growing pipeline of grid balancing projects as well as to invest in a follow-on fund raise currently being contemplated by IncubEx.
The Board expects group turnover to be in excess of GBP30m for the full year as the second half of the financial year is when the heating season is at its busiest. With the strength of our position in the wood fuels market and our growing pipeline of project developments in biomass and grid balancing, we look forward to the future with confidence.
Neil Eckert, Executive Chairman
14 December 2017
Independent Review Report to Aggregated Micro Power Holdings plc
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2017 which comprises the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated cash flow statement, the consolidated statement of changes in equity and the related notes.
We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independent Review Report to Aggregated Micro Power Holdings plc
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2017 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
Location
United Kingdom
Date
BDO LLP is a limited liability partnership registered in England and Wales (with registered number
OC305127).
Condensed consolidated statement of comprehensive income
For the six months ended 30 September 2017
Six months Six months Year ended ended ended 30 Sep 30 Sep 31 Mar 2017 2016 2017 Unaudited Unaudited Audited Note GBP GBP GBP Continuing operations Revenue 11,249,021 3,548,662 19,719,142 Cost of sales (8,578,439) (2,874,350) (14,245,059) Gross profit 2,670,582 674,312 5,474,083 Other operating income 3 256,096 138,532 397,585 Administrative expenses 3 (4,272,660) (2,417,124) (5,899,702) (Loss)/Gain on financial asset at fair value through profit or loss (90,729) - 1,879,044 Write off of receivable (347,852) - - Acquisition expenses (20,800) (71,051) - --------------------- ----- ------------------------------ ----------------------------- ------------------------- (Loss)/Profit from operations (1,805,363) (1,675,331) 1,851,010 Finance income 142 1,744 2,004 Finance expense 5 (664,404) (283,766) (919,534) ------------------------------ ----------------------------- ------------------------- (Loss)/Profit before
tax (2,469,625) (1,957,353) 933,480 Tax credit 30,982 - 94,369 ------------------------------ ----------------------------- ------------------------- (Loss)/Profit for the year and other total comprehensive (losses)/income for the period (2,438,643) (1,957,353) 1,027,849 (Loss)/Profit for the year and other total comprehensive (losses)/income attributable to: Owners of the parent (2,375,179) (1,957,353) 1,027,849 Non-controlling interest (63,464) - - ------------------------------ ----------------------------- ------------------------- (2,438,643) (1,957,353) 1,027,849 Basic and diluted earnings per share attributable to the ordinary equity holders of the parent 9 (6.28p) (6.69p) 3.19p
Company number: 08372177
Condensed consolidated statement of financial position
As at 30 September 2017
30 Sep 2017 30 Sep 31 Mar 2016 2017 Unaudited Unaudited Audited Note GBP GBP GBP Non-current assets Property, plant and equipment 4 3,842,895 1,588,293 2,364,747 Investment in associates 2,286,975 - 2,402,945 Intangibles 6 9,755,671 4,533,967 9,862,560 Total non-current assets 15,885,541 6,122,260 14,630,252 ------------- ------------- ------------- Current assets Inventories 4,216,033 2,556,837 2,609,018 Trade and other receivables 7,187,559 2,473,088 10,747,768 Cash and cash equivalents 775,025 2,026,873 818,966 Total current assets 12,178,617 7,056,798 14,175,752 ------------- ------------- ------------- Total assets 28,064,158 13,179,058 28,806,004 ------------- ------------- ------------- Current liabilities Trade and other payables 9,281,442 2,868,030 8,052,510 Loans and borrowings 7 431,474 240,049 494,412 Total current liabilities 9,712,917 3,108,079 8,546,922 ------------- ------------- ------------- Non-current liabilities Loans and borrowings 7 9,306,298 6,992,146 9,270,958 Deferred Consideration 8,218 8,218 8,218 Deferred tax liability 656,373 387,718 571,115 Total non-current liabilities 9,970,889 7,388,082 9,850,291 ------------- ------------- ------------- Total liabilities 19,683,805 10,496,161 18,397,213 ------------- ------------- ------------- Net assets 8,380,353 2,682,897 10,408,791 ------------- ------------- ------------- Equity attributable to equity holders of the company Paid up share capital 8 189,052 155,964 189,052 Share premium 8 12,519,616 12,552,705 12,519,616 Merger reserve 6,648,126 6,648,126 6,648,126 Other Reserves 8 9,046,180 4,546,180 9,046,180 Convertible debt option reserve 1,307,837 1,212,910 1,453,603 Retained deficit (21,677,199) (22,432,988) (19,447,786) ------------- ------------- ------------- 8,033,612 2,682,897 10,408,791 Non-controlling interest 346,741 - - Total equity 8,380,353 2,682,897 10,408,791 ------------- ------------- -------------
The financial statements were approved by the Directors on 14 December 2017 and signed on their behalf by:
Richard Burrell, Chief Executive Officer
Condensed consolidated statement of changes in equity
As at 30 September 2017
Share Share Retained Merger Other Convertible Total Non- Total capital premium deficit reserve Reserve debt Attributable controlling Equity option to Equity interest reserve Holders of Parent GBP GBP GBP GBP GBP GBP GBP GBP GBP Equity as at 1 April 2016 144,423 11,069,200 (20,475,635) 6,648,126 4,546,180 559,279 2,491,573 - 2,491,573 Profit for the period - - 1,027,849 - - - 1,027,849 - 1,027,849 -------- ----------- ------------- ---------- ---------- ------------ ------------- ------------ ----------- Total comprehensive expenses - - 1,027,849 - - - 1,027,849 - 1,027,849 Issue of share capital 44,629 1,490,370 - - 4,500,000 - 6,034,999 - 6,034,999 Equity element of convertible debt - - - - - 894,324 894,324 - 894,324 Share issue cost - (39,954) - - - - (39,594) - (39,954) Equity as at 31 March 2017 189,052 12,519,616 (19,447,786) 6,648,126 9,046,180 1,453,603 10,408,791 - 10,408,791 ======== =========== ============= ========== ========== ============ ============= ============ =========== Share Share Retained Merger Other Convertible Total Non- Total capital premium deficit reserve Reserve debt Attributable controlling Equity option to Equity interest reserve Holders of Parent GBP GBP GBP GBP GBP GBP GBP GBP GBP Equity as at 1 April 2017 189,052 12,519,616 (19,447,786) 6,648,126 9,046,180 1,453,603 10,408,791 0 10,408,791 Loss for the period - - (2,375,179) - - - (2,375,179) (63,464) (2,438,643) ------------- ------------ ------------ Total comprehensive expenses - - (2,375,179) - - - (2,375,179) (63,464) (2,438,643) Issue of share capital - - - - - - Minority Interest recognised on business acquisition of HW Energy - - - - - - - 410,205 410,205 Recycle of interest between the Convertible Loan Note and Retained earnings. - - 145,766 - - (145,766) - - - Equity as at 30 September (21,677, 2017 189,052 12,519,616 199) 6,648,126 9,046,180 1,307,837 8,033,612 346,741 8,380,353 ======== =========== ============= ========== ========== ============ ============= ============ ============ Share capital: Nominal value of shares issued. Share premium: Amount subscribed for share capital in excess of the nominal value. Retained deficit: All other net losses and transactions with owners (e.g. dividends) not recognised elsewhere. Merger reserve: Created on the issue of shares on acquisition of its subsidiary accounted for in line with the Companies Act 2006 provisions. Other reserve: Amount raised through the use of a
cashbox structure. Convertible debt option reserve: Amount recorded as equity on the initial fair value measurement of issued convertible loan notes.
Condensed consolidated statement of cash flows
For the six months ended 30 September 2017
Six month Six month Year ended ended ended 30-Sep-17 30-Sep-16 31 Mar 2017 Unaudited Unaudited audited Note GBP GBP GBP Operating activities Loss for the period after tax (2,375,179) (1,957,353) 1,027,849 Adjustments for: Write-off of development fee - - 57,734 Tax credit (30,982) - (94,369) Interest Income (142) (1,744) (2,004) Fair value adjustment on financial assets at fair value through profit and loss 90,729 - (1,879,044) (Profit)/Loss on disposal of Fixed Assets 35,124 (55,155) (151,368) Finance Expense 3 664,404 255,729 584,286 Movement in foreign exchange - 5,279 41,063 Amortisation of intangibles 200,929 - 174,672 Depreciation of property, plant and equipment 4 323,416 196,949 358,561 Cash flows from operating activities before changes to working capital (1,091,701) (1,556,295) 117,380 (Increase) in inventories (1,088,263) (123,583) (1,351,239) Decrease/(increase) in trade and other receivables 4,358,038 1,292,893 (7,792,615) (Decrease)/increase in trade and other payables (246,106) (1,985,049) 4,542,249 3,023,669 (815,739) (4,601,605) ------------ ------------- ------------ Cash generated from operations 1,931,968 (2,372,034) (4,484,225) ------------ ------------- ------------ Investing activities Acquisition of a subsidiary, net of cash acquired (343,320) 49,821 (1,850,888) Investment in associate - - (523,901) Purchase of intangibles (9,156) (300,000) (300,000) Purchase of property, plant and equipment (829,053) (57,575) (300,950) Proceeds from sale of assets 46,657 139,921 402,923 Loans to third party - (52,452) (92,106) Interest received 142 - 2,004 Net cash used in investing activities (1,134,730) (220,285) (2,662,918) ------------ ------------- ------------ Financing activities Share issue cost - (39,954) (39,954) Proceeds from issue of convertible notes - 1,160,000 5,033,197 Proceeds from issue of ordinary shares - 3,257,600 3,217,645 CLN issue cost - (89,395) (282,194) Payments of interest on borrowings (368,672) (391,029) (495,763) Payments on financial lease (472,507) (79,901) (268,692) Net cash used in financing activities (841,179) 3,817,321 7,164,239 ------------ ------------- ------------ Net increase in cash and cash equivalents (43,941) 1,225,002 17,096 Cash and cash equivalents at beginning of period 818,966 801,871 801,870 Cash and cash equivalents at end of period 775,025 2,026,873 818,966 ============ ============= ============
Notes to condensed consolidated financial statements
For the six months ended 30 September 2017
1. Basis of preparation
The external auditors are required to rotate the Senior Statutory Auditor responsible for the company audit every five years. In certain circumstances, it is permissible to extend that tenure by up to two years. The Board believes that, as the Group integrates its newly acquired businesses, the continuity of the Senior Statutory auditor during this critical phase for the Group merits having continuity of the Senior Statutory Auditor that this extension provides.
BDO LLP and the Company have agreed to extend the term of the Senior Statutory Auditor for a sixth year in line with the guidance as to how long a responsible individual may remain the Senior Statutory Auditor or a client as set out in the ISAs UK. There are specific provisions relating to the extension of tenure for listed companies with which the Company complies
The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 March 2017 and which will form the basis of the financial statements for the year ending 31 March 2018.
A number of new and amended standards have become effective for periods beginning on 1 January 2016, however none of these is expected to materially affect the Group.
The comparative financial information for the year ended 31 March 2017 in this interim report does not constitute statutory accounts for that year. The Group's results are considered to be affected by seasonal variations and do not yet fully reflect the positive impact of our recent wood fuels business acquisitions as most of this turnover and future income is anticipated to be generated in the second half of the financial year (October through to March) where the heating season is at its busiest.
The Group's annual report and accounts for the year ended 31 March 2017 have been delivered to the Registrar of Companies. The Group's independent auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The comparative financial information for the year ended 31 March 2017 in this interim report does not constitute statutory accounts for that year'
The financial information for the half-years ended 30 September 2016 and 30 September 2017 is unaudited.
2. Use of estimates and judgements
There have been no material revisions to the nature and amount of changes in estimates of amounts reported in the financial statements for the year ended 31 March 2017.
Notes to condensed consolidated financial statements (continued)
For the six months ended 30 September 2017
3. Segmental information
For management purposes, the Group is organised into business units based on its products and services. The results have been prepared using consistent accounting policies for each segment as detailed in Note 1 to the consolidated financial statements for the year ended 31 March 2017.
The Group was exclusively focused on UK operations. The performance of each segment is reported below.
Operating segments - Six months Ending Wood Project 30 September 2017 Fuels development Investments Total GBP GBP GBP GBP Revenue 10,390,142 858,879 - 11,249,021 Cost of sales (8,281,814) (296,625) - (8,578,439) ------------- ------------- ------------ ------------- Gross profit 2,108,328 562,254 - 2,670,582 Other operating income 63,019 193,219 - 256,238 Administrative expenses (2,496,916) (697,752) (539,323) (3,733,991) ------------- ------------- ------------ ------------- Adjusted EBITDA (325,569) 57,721 (539,323) (807,171) Depreciation (318,069) - (5,347) (323,416) Finance Expense (172,147) - (492,257) (664,404) Amortisation Intangibles - - (200,929) (200,929) P&L on sale of Assets (35,124) - - (35,124) Other Non-Recurring Costs - - (347,852) (347,852) Fair Value Adjustment - Investment in Associate - - (90,729) (90,729)
Tax credit - - 30,982 30,982 ------------- ------------- ------------ ------------- Profit/ (Loss) from operations (850,909) 57,721 (1,645,455) (2,438,643) ============= ============= ============ ============= Segment assets 11,229,204 2,326,569 14,508,388 28,064,058 Segment liabilities (10,203,079) (337,558) (9,143,170) (19,683,805) 1,026,125 1,989,011 5,365,218 8,380,354 ============= ============= ============ ============= Operating segments Low Plains Wood Project Investments Total - Six months Ending decommissioning fuels development 30 September 2016 GBP GBP GBP GBP GBP Revenue 41,426 3,465,340 41,896 3,548,662 Cost of sales (6,194) (2,868,156) - (2,874,350) ----------------- ------------- ------------- ------------ ------------- Gross profit 35,232 597,184 41,896 674,312 Other operating income - 96,032 44,244 140,276 Administrative expenses (86,816) (854,570) (910,050) (490,026) (2,341,462) ----------------- ------------- ------------- ------------ ------------- Adjusted EBITDA (51,584) (161,354) (823,910) (490,026) (1,526,874) Finance Expense (283,766) (283,766) Depreciation - (144,384) (2,329) (146,713) Loss from operations (51,584) (305,738) (823,910) (776,121) (1,957,353) ================= ============= ============= ============ ============= Segment assets 119,727 6,185,254 6,874,077 13,1790,58 Segment liabilities 11,988 4,255,964 5,951,837 10,219,789 107,739 1,652,918 922,240 2,686,897 ================= ============= ============= ============ =============
Notes to condensed consolidated financial statements (continued)
For the six months ended 30 September 2017
4. Property, plant and equipment
Plant & Office Motor Machinery Equipment Vehicles Total GBP GBP GBP GBP Cost As at 1 April 2016 1,244,528 152,476 187,003 1,584,007 Additions for the period 901,714 66,438 134,321 1,102,473 Addition from business combination 530,580 68,668 487,123 1,086,371 Disposals for the period (360,891) (829) (75,290) (437,010) As at 31 March 2017 2,315,931 286,753 733,157 3,335,841 ----------- ----------- ---------- ---------- Additions for the period 788,473 40,580 - 829,053 Disposals for the period (6,780) - (7,871) (14,651) Addition from business combination 952,488 34,677 - 987,165 As at 30 September 2017 4,050,112 362,010 725,286 5,137,408 ----------- ----------- ---------- ---------- Depreciation As at 1 April 2016 757,397 3,221 38,000 798,618 Transfer - - - - Charges for the period 236,668 59,560 62,333 358,561 Disposals for the year (179,974) (823) (5,288) (186,085) As at 31 March 2017 814,091 61,958 95,045 971,094 ----------- ----------- ---------- ---------- Charge for the period 217,674 25,973 79,769 323,416 As at 30 September 2017 1,031,765 87,931 174,814 1,294,510 ----------- ----------- ---------- ---------- Net book value As at 1 April 2016 487,131 149,254 149,003 785,390 =========== =========== ========== ========== As at 31 March 2017 1,502,840 224,795 638,112 2,364,747 =========== =========== ========== ========== As at 30 September 2017 3,018,344 274,079 550,472 3,842,895 =========== =========== ========== ========== 5 Finance expense Period Period Year ended ended ended 30 Sep 30 Sep 31 Mar 2017 2016 2017 GBP GBP GBP Interest expense 80,278 21,756 65,974 Convertible Loan Note interest 398,750 225,398 493,820 Amortisation of convertible Loan notes 152,796 22,000 335,248 Finance lease 32,580 14,612 24,491 -------- -------- -------- 664,404 283,766 919,533 ======== ======== ========
Notes to condensed consolidated financial statements (continued)
For the six months ended 30 September 2017
6. Intangible assets
Long term contracts and customer relationships Brand Goodwill Total GBP GBP GBP GBP Cost As at 1 April 2016 611,804 785,833 1,322,696 2,720,333 Additions for the period 2,903,141 187,000 4,226,757 7,316,898 Amortisation charge for the period (133,042) (41,629) - (174,671) Disposal in the - - - - period As at 31 March 2017 3,381,903 931,204 5,549,454 9,862,560 =============== ========= ========== ========== Additions for the period 103,252 - 84,884 188,136 Amortisation charge for the period (176,608) (24,321) - (200,929) Impairment of goodwill - - (94,097) (94,097) Disposal in the - - - - period As at 30 September 2017 3,308,547 906,883 5,540,241 9,755,671 =============== ========= ========== ========== 7. Loans and borrowings Period ended Year ended 30 Sep 17 31 Mar 2017 Current Liabilities Other loan - finance lease 431,474 494,412 431,474 494,412 ============= ============= Financial Liabilities Convertible Loan Notes 8,713,201 8,548,161 Other loan - finance lease 593,097 722,797 9,306,298 9,270,958 ============= ============= 8. Share No of Issued Share Other capital shares capital premium reserves 31 March 2017 Nos. GBP GBP GBP Ordinary shares of GBP0.005 each As at 31st March 2016 28,884,502 144,423 11,069,200 4,546,180 Issued during the year 8,925,919 44,629 1,490,370 - Issued as consideration as part of business combination 6,617,647 - - 4,500,000 Share issues - - (39,954) - expenses As at 31 March 2017 44,428,068 189,052 12,519,616 9,046,180 ============================= ============================ ===================== ================== As at 1 April 2017 44,428,068 189,052 12,519,616 9,046,180
Issued for - - - - cash during the period As at 30 September 2017 44,428,068 189,052 12,519,616 9,046,180 ============================= ============================ ===================== ==================
Notes to condensed consolidated financial statements (continued)
For the six months ended 30 September 2017
9. Loss per share
Six months Six months Year ended ended ended 30-Sep-17 30-Sep-16 31 Mar 2017 Unaudited Unaudited Audited GBP GBP GBP Loss attributable to equity holders of the company (2,375,179) (1,957,353) (1,027,849) Weighted average number of shares 37,810,422 29,616,085 32,195,510 Continuing operations basic (Pence) (6.28) (6.69) (3.19)
Basic loss per share is calculated by dividing the loss attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the year. The convertible options are considered anti-dilutive because the exercise of these would have the effect of reducing the loss per share.
10. Business combination during the period
On 28 June 2017, the Group completed on the acquisition of 50.1% of the share capital of Highland Wood Energy Limited ('HW Energy'), a leading biomass business, for a consideration of GBP500,000. The acquisition was made to further strengthen the Group's position in the wood fuel market.
As at 28 June 2017 HW Energy had a net asset value of GBP828,574. The intangibles have been assessed as part of a fair value exercise at a Group level and are therefore excluded from the opening book value in the table below. The Group has recognised the provisional fair values of identifiable assets and liabilities as follows:
28 June 2017 Opening Fair value Closing book value adjustment fair value GBP GBP GBP Intangibles - - - Tangible assets 987,165 - 987,165 Cash 156,680 - 156,680 Inventory 518,752 - 518,752 Receivables 797,829 - 797,829 ------------ ------------ ------------ Total Assets 2,460,426 - 2,460,426 ------------ ------------ ------------ Trade and other payables 1,631,852 - 1,631,852 Deferred tax liability - - - Non-Current liabilities - - - ------------ ------------ ------------ Total Liabilities 1,631,852 - 1,631,852 ------------ ------------ ------------ Net Assets 828,574 - 828,574 ============ ============ ============ Net Assets acquired (50.1%) 419,413 - 415,116 Fair value of consideration paid 500,000 ------------ Goodwill 84,884
Notes to condensed consolidated financial statements (continued)
For the six months ended 30 September 2017
11. Events after the reporting period
On 31 October 2017, the Group completed on the acquisition of 100% of the share capital of Billington Bioenergy Limited (BBE), a supplier of premium wood pellet to commercial customers, from Drax Smart Supply HoldCo Limited, for a consideration of GBP2.0m comprising GBP1.6m in new ordinary shares of 0.5 pence in the issued share capital of the Company ("Ordinary Shares") issued at a price of 98.5 pence per Ordinary Share and GBP0.4m in cash.
The Directors consider it impractical to disclose any financial effect that may be required under IFRS 3 Business Combinations due to this acquisition being finalised at the same time of drafting these consolidated financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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December 15, 2017 02:00 ET (07:00 GMT)
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