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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Plutus Powergen Plc | LSE:PPG | London | Ordinary Share | GB00B1GDWB47 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.025 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPPG
RNS Number : 8798I
Plutus PowerGen PLC
05 September 2016
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
5 September 2016
Plutus PowerGen plc ('PPG' or 'the Company')
Final Results
Plutus PowerGen plc, the AIM listed power company focused on the development construction and operation of flexible stand-by electricity generation in the UK, announces its results for the year ended 30 April 2016.
Highlights
This year has seen the Group continuing to build upon the strong operational and financial platforms established by the Company in its first year of operations.
Financial
-- 68.9% reduction in losses after tax for the year compared with last year -- 78.1% reduction in loss per share compared with previous year
-- 914% increase in revenues to GBP887,500 in the year compared with GBP87,500 last year
-- Fees now being earned from nine management contracts of GBP150,000 p.a. each -- Annualised fees projected to be in excess of GBP1.3m per annum from May 1 2016
Operational
-- Target of at least 200MW of electricity generating capacity by the end of 2017
-- Portfolio of projects increased by majority owned FlexGen and SolarFlex opportunities
-- Success in the Capacity Market Auction for three 20MW sites to date, with planning of 100MW to date and further capacity at various stages of the planning process
-- MOU with UK based Green Biofuels Limited for the supply of its proprietary renewable fuel 'Green D+' for use across the Company's portfolio
-- Formal partnership with renewable energy developer Reliance Energy Limited to secure further flexible power generation facilities in the UK
-- Continued minimum dilution business model and structure
Chairman's Statement
This has largely been a year of consolidation for Plutus PowerGen, building upon the excellent work of the previous year.
We have made pleasing progress over the last twelve months. Having now passed earlier project milestones for all of the nine investments in companies funded by Rockpool Investments LLP (who have raised in excess of GBP33 million for these entities), our priority is to achieve planning permission (where not already obtained), build out and commission the sites.
These investments have become a valuable asset, and we expect to be able to re-value in the accounts at the end of the next financial year for those sites that are operational. This will provide a strong backbone for the Company in its new phase of seeking further sites for development. With nine management contracts awarded to date, the fee income from these enables the Company to manage our existing investments and also to expand and build out new sites, whether FlexGen or SolarFlex.
It is intended these new sites will be majority owned, with Plutus PowerGen typically holding a stake of 80%. These subsidiaries will be consolidated in our Group accounts, further strengthening our balance sheet. Now that we are able to select sites independently, we will be able to develop our plans for SolarFlex facilities and to pilot power storage technologies alongside these, further contributing to the balancing requirements that are a vital service to the National Grid.
As a board of Directors, we are looking actively at further improving our low carbon credentials. We were delighted to partner with Green Biofuels Limited for the supply of its proprietary renewable fuel, 'Green D+' for use across the Company's projects. The use of Green D+ across our portfolio means we will be a low carbon, renewable generator, further underpinning our environmental credentials and opening us to renewable investors. We are also exploring partnerships with power storage development companies to evaluate the viability of using battery, capacitor or inertial technology in conjunction with our SolarFlex facilities. Such power storage devices could potentially enhance the flexibility and thus the economics of all flexible generation sites.
A crucial part of our next phase is the ability to fund new sites. With that objective, the Company is in the process of launching a bond to be listed on ISDX to raise up to GBP4.0 million. It is planned that the proceeds from this bond will assist PPG in building out its next three to four 20MW sites, providing us with the funds for our equity share of each of these projects and giving us flexibility in the funding mix for each of these sites. We continue to negotiate with other prospective partners for funding of further sites.
Outlook
The Directors look forward to the year ahead with confidence. We anticipate that within the next twelve to eighteen months all of the 45% owned investment sites will be operational. We anticipate that we will start to make headway with PPG's 80% owned sites, which will likely be a mix of both SolarFlex and pure FlexGen sites.
I would like to thank my fellow Directors for all their hard work this year and I look forward to being able to report further strong progress in the forthcoming period.
Charles Tatnall
Executive Chairman
2 September 2016
Case study: Plymouth site
Built on the site of the former Toshiba television factory in Ernesettle, our 20MW Plymouth facility is on track to be operational in autumn 2016, in time for the winter season.
Although our sites are operated remotely and thus do not create local employment opportunities, we are keen to contribute to the communities in which our facilities are located. We therefore offered an undertaking to Plymouth City Council that we would provide up to GBP50,000 to support good causes located in the same ward as our site. So far we have contributed to projects relating to infrastructure, sport and education.
"Thank you, this is a great opportunity for the club to move forward and create more wheelchair rugby and social activities for disabled people in the Plymouth area." - Hawks Founder and Coach
"The Plutus PowerGen pledge was a great boost to our project."- Ocean City Powerchair Football Club Chairperson
"The pledges from Plymouth City Council and Plutus PowerGen definitely boosted the support for the project from the community. Work can start on installing security gates and rotavating the land, ready to allocate plots to residents. It actually feels real now!" - Neighbourhood Warden, Four Greens Ernesettle Community Allotment
Chief Executive's Review
In the last year we have made significant strides to prove the attractiveness of our business model and demonstrate our ability to execute our strategy.
Overview
We have had a positive year, and have made solid progress towards achieving our ambition of operating 200MW of capacity on stream by Triad season 2017/18.
In summary, we have 100MW of capacity with planning permission secured, 120MW awaiting a decision or about to enter the planning process, and we retain more than 500MW of potential capacity in our pipeline. We secured three 15-year Capacity Market contracts covering 60MW, and expect our first facility to go live in time to participate in this year's Triad season. One further key development is that we secured a source of green fuel, based on HVO (hydrogenated vegetable oil). This fuel attracts ROCs (Renewable Obligation Certificates) per MWh, under the Government scheme for promoting renewable generation.
Strategic initiatives
Aside from our priority of making our existing sites operational and developing a number of directly owned sites, a key pillar of our strategy is to establish SolarFlex facilities, where our generators are co-located - and share grid connections - with solar farms. Our partnership with Reliance Energy Limited and advanced talks with several operators of solar farms demonstrate both the technical feasibility of the strategy and the existence of willing counterparties. A compelling characteristic of SolarFlex facilities is that PPG's generators use the connection when not required by the solar farm, hence the technologies are highly complementary and allow more efficient utilisation of connections. By providing an additional return to the solar farm through the strategic cooperation, PPG is helping to accelerate the development of solar farms without subsidy. This SolarFlex model gives us a rich seam of sites in the pipeline where connection to the Grid already exists.
In addition, these partnerships will enable PPG to pilot the installation of storage assets on these sites to evaluate the real-life performance and commercial viability of mixing firm, exhaustible and intermittent technologies on a single connection. Assessment of these assets' real-world performance should allow PPG and its partners to attract mainstream investment thereby allowing SolarFlex sites to become an attractive reliable alternative to fossil fuel-based power stations.
Market context
In April of this year, we responded to a Department of Environment and Climate Change ("DECC") consultation on reforms to the Capacity Market, in which it confirmed that The Office of Gas and Electricity Markets ("Ofgem") had been asked to review network charging rules and their impact on embedded generation. DECC suggested that current charging arrangements could be providing undue reward to distribution-connected generators. The regulator is scheduled to report back soon with a proposed way forward. Separately, National Grid is undertaking its own review into embedded benefits, and the Department for Environment, Food and Rural Affairs ("Defra") is reviewing emissions as part of the UK's adoption of the Medium Combustion Plant Directive (MCPD).
As previously outlined, distribution connected generation is rewarded through embedded benefits, especially where it is predictable and controllable, because it contributes directly to reducing consumer bills (principally by reducing 'pass through' costs) by:
-- reducing costs of using the wider system and its reinforcement or replacement,
-- strengthening the operation of the local system, which is increasingly under strain from the rise in mass intermittent exports; and
-- creating local operational efficiencies.
We believe that current charging methodologies understate these benefits. A piecemeal approach to change would not only adversely impact the viability of existing embedded generators but also reduce investor confidence at a time when margins are at historically very low levels and security of supply has become politicised. The consequence of reduced investor willingness to invest in energy in the UK will act to drive up the cost of the capital with a resultant impact on consumer bills.
Beneath all of the noise and questions surrounding the reviews is an incontrovertible fact: the need for flexible stand-by electricity generation is as vital as ever as the UK's power generation mix shifts inexorably towards a greater proportion of distribution connected renewable energy sources which represents a fundamental shift away from the traditional centralised despatch model operated in the UK.
The Directors believe that, in these new models of energy supply in the UK, non-intermittent sources of back-up power, of the type being developed by PPG, have a vital role to play now and in the future.
Performance
The year under review has been the first full year of operations since the reverse takeover of Plutus Energy Limited and has been a year of significant progress for the Group in the execution of its business plan. By the end of the year we had seven management contracts in place with Rockpool investee companies and as from 1 May 2016 we have nine management contracts in place, each generating GBP150,000 per annum of fee income, which represents an annualised total of GBP1,350,000. In addition to the nine Rockpool companies we are making progress towards the Company's plan to add further capacity by adding another 3 to 4 sites per annum to the portfolio. Each site will be a majority owned subsidiary of the Company and will ordinarily hold 20MW of generating capacity. Turnover has increased over nine-fold during the year and we have reduced operating losses substantially together with attributable losses per share.
As Charles outlined in his review, we are in the process of launching a bond, through which we are aiming to raise a gross amount of up to GBP4.0 million. The net proceeds of the bond issue, alongside our existing cash resources, will be used to finance three or four additional 20MW FlexGen or SolarFlex sites, in which PPG will own an 80% stake.
Outlook
We will continue to press on with our strategy. We will build upon the foundations we have laid to bring capacity on-stream, and see a great opportunity in exploring the potential for energy storage.
The on-going energy market reviews present a couple of icebergs for us to steer around, but we believe that the gaps between these icebergs are sufficiently large, and are confident that our steady hand on the tiller will steer us through, given the compelling and growing need for reliable, flexible stand-by generation.
Phil Stephens
Chief Executive Officer
2 September 2016
Sustainability is at the heart of our operations, and our flexible, stand-by sites facilitate the UK's increasing reliance on renewable energy.
-- By plugging intermittency gaps from renewable energy in a cost-effective manner, our sites will enable further decarbonisation of the UK energy sector.
-- Our facilities are anticipated to run for no more than 150 hours per year in 1 hour blocks of time during peak demand (indeed they may not exceed 200-300 hours as a result of the commitments made in the planning permission process). Despite providing valuable generating capacity, they are expected to be switched off for more than 97% of the time and their annualised emissions will be minimal.
-- Our generators will be fired with green fuel from HVO (hydrogenated vegetable oil), which reduces the environmental impact and also stimulates the development of such fuels by providing a proven market. This fuel eliminates SOx, reduces NOx by c.30% and reduces particulates. Our facilities will conform to all UK and EU air quality standards. We are evaluating other sources of green fuels, for example fuel from waste plastic which otherwise would go to landfill, and looking at technology to add to our generators to comply with the more stringent requirements associated with the incoming Medium Combustion Plant Directive.
Our Market
Demand for flexible electricity generation is underpinned by structural changes to the UK's power generation mix, which is seeing an increasing proportion of intermittent, renewable power as legacy fossil capacity is retired.
Characteristics of the UK energy market
Increasing volatility
Renewable power generation has grown in the UK from 3% of energy supply in 2000 to currently more than 20%. With the ongoing retirement of high carbon sources of generation, this proportion is set to increase to more than 30% (see the graph below). The Government has committed to closing all coal-fired power stations by 2025, while new gas and nuclear generation is at least 10 to 15 years from coming online.
As the UK's power generation mix shifts away from fossil fuels and becomes increasingly reliant on renewable sources, energy supply becomes more irregular: wind is an intermittent source, while solar energy is generated predominantly in the summer months, when least required. Balancing supply and demand is consequently an increasingly challenging, yet vital component of the energy supply market.
Tight capacity margins
The UK energy market is experiencing reducing capacity margins, i.e. the difference between peak electricity demand and the capacity available to meet this. For last winter, National Grid had forecast a buffer of just 6%, equivalent to 3GW, although the mild weather alleviated any operational pressure on the system. Continuing high renewable deployment rates, the planned closure of coal generation and the aging condition of a substantial part of the UK nuclear industry, combined with expected delays in the delivery of flagship nuclear projects, suggest that operating challenges will worsen.
Increasing need for balancing services
The system operator, National Grid, is responsible for ensuring that the UK electricity system has sufficient supply to match demand. Since power cannot readily be stored in sufficient quantities as yet, matching must be done in real time. Small imbalances in supply and demand lead to frequency distortions, which are critical for many technologies connected to the system. Larger imbalances may lead to brownouts and blackouts.
National Grid classifies the capacity it makes available to address imbalances into four categories
-- Contingency reserve or margin -- Short-term operating reserve (STOR) -- Regulated (or fast) reserve -- Low frequency response
National Grid has also requested notifications of interest in a new service called Enhanced Frequency Response, for very rapid response such as could be provided by battery storage units. Battery storage remains markedly higher cost than other short-term generation solutions and has technological limitations. As a result, this new market is thought likely to complement, rather than remove demand from existing frequency response markets.
In addition, energy balancing, using existing capacity in the main balancing market and involving demand reduction, also takes place across all time zones, although is used particularly in the 20 minutes ahead of the demand point.
Drivers of demand for flexible power generation
In the context of the fundamental changes to the UK energy sector outlined above and the resulting challenges, flexible power generation plays a vital role in supporting the pillars of the UK's energy strategy, as summarised in the table below.
Hot Features
Premium
Flexible generation sites support UK energy
imperatives
---------------------------------------------------------------------------
Keeping the Network support
lights on * Improve operational capability by lowering demands on
the network
* Support the distribution system and provide an
important tool to accommodate intermittency of
renewable sources
------------ -------------------------------------------------------------
Frequency control
* Maintain system frequency within operating parameters
by generating very quickly, supporting local
balancing
------------ -------------------------------------------------------------
System inertia improvement
* Lower the risk of failure by increasing the inertia
on the system
-------------------------------------------------------------
Short run back up capacity
* Add small scale capacity that can run when larger
assets fail
------------ -------------------------------------------------------------
Affordable Best possible value to the
consumer
* Derive all revenue through market-delivered processes
* Reduce connection costs by sharing Grid connections
with solar
------------ -------------------------------------------------------------
Low carbon Providing a system that allows
the wider decarbonisation of
energy
* Provide operational 'cover' for renewables
* Give network operators fine tuning capability rather
than large scale capacity
------------ -------------------------------------------------------------
In contrast to large power stations, which connect to the high voltage transmission grid, most flexible generating assets connect directly to regional distribution networks. Such power generation is known as embedded generation, and enjoys several advantages that result in lower bills for consumers, as well as generators earning a premium over wholesale electricity prices. The benefits derive from three sources:
-- Reduced charges: While embedded generation must pay local distribution network fees, it avoids charges relating to transmission use, distribution system use and system balancing. Embedded generation also reduces the need for investment in the transmission and distribution networks, and saves costs associated with operating and maintaining existing infrastructure.
-- Reduced thermal losses;
-- Reduced regulation: embedded generation is not subject to regulatory burdens such as the Carbon Price Floor and Climate Change Levy.
Finally, embedded generation generally reduces the volume from balancing energy and hence can reduce the cost of balancing the system on a half hourly basis. Controllable plants such as generators also facilitate management of intermittency at a local level, allowing greater deployment of intermittent assets than would otherwise be viable.
The operational benefits and cost efficiencies in the form of avoided charges are typically shared between suppliers and the local producers they contract with, and ultimately benefit consumers through reduced energy bills.
UK energy reviews
In Spring 2016, DECC invited responses to a consultation relating to a review of the Capacity Market. As part of this, Ofgem will assess network charging rules and their impact on embedded generation, and is due to report back soon. DECC suggested that current charging arrangements could overly favour distribution-connected generators, and highlighted the type of engine used by Plutus as particular beneficiaries. Aside from this consultation, National Grid is assessing the so-called Triad benefit, and Defra is evaluating emissions, as the UK moves to comply with the Medium Combustion Plant Directive (MCPD). These reviews will, in all likelihood, result in some amendments to the way that embedded generation is rewarded. Concerns relating to security of supply, coupled with the risk of unintended consequences, are thought likely to limit the scale of any changes, however.
Any impact of recent structural changes to Government departments is yet to become clear. However, the Directors remain confident that there is a recognition that non-intermittent embedded generation in particular plays a pivotal role in UK energy supply, and, as such, must remain commercially viable, even if the precise reward mechanisms change.
Our Business Model
Our multi-revenue stream model is founded upon the roll-out of 20MW green fuel generation sites, funded through a combination of equity and asset finance via dedicated subsidiaries.
What we do
We are applying our management expertise to the establishment of a group of subsidiaries and investments active in the development, construction and operation of stand-by flexible electricity generation sites in the UK.
We plan to sell power to energy suppliers and the National Grid via several mechanisms, and our sites are expected to operate during periods of peak electricity demand or Grid instability.
How we operate
Proven, modular generation technology.
We will use established, reliable technology based on containerised generators, fired with biofuel. Treated as embedded generation, our unmanned gensets supply the local low voltage distribution network, reaching full output within 150 seconds of being switched on remotely.
Each plant has a maximum generating capacity of 20MW. This is optimal for two reasons:
-- The planning thresholds - and therefore construction timescales - are reduced; and -- The emissions fall below a European threshold, thereby reducing compliance costs and risk.
Non-dilutive finance model
By setting up a dedicated entity for each site as part of our bottom up investment strategy, we limit medium-term dilution to existing shareholders.
The first nine sites have been financed with equity from clients of Rockpool in each of the nine investment entities established for this purpose, and have advance assurance from Her Majesty's Revenue and Customs to benefit from EIS-related tax benefits. PPG has a 45% stake in each of these entities, and currently derives revenue from a management contract with each site. From November 2015, EIS was closed off to new standby power generation projects. Future projects will be held in separate subsidiary companies, in which PPG will seek to obtain an interest of 80%.
How we intend to generate revenue
Power sales: STOR
FFR
Triad
Power Purchase Agreements
Capacity Market
Other: Management contracts
Source of Revenue Mechanism Overview Counterparty
=================== =============================== =============================== ===============================
Power Sales STOR The Short Term Operating National Grid
Reserve is a mechanism used
by National Grid to balance
the UK's
power supply at short notice.
The STOR allows required
electricity supply to be
decreased
(by incentivising major
consumers to reduce demand)
or increased, by calling on a
pool of
stand-by power generators.
Under the terms of two-year
contracts, National Grid pays
STOR
providers for making their
capacity available, as well
as for delivery of
electricity.
------------------- ------------------------------- ------------------------------- -------------------------------
Firm Frequency Response (FFR) FFR is a service procured by National Grid
National Grid to manage
system frequency, the
system-wide signal
that indicates whether energy
supply exceeds demand or vice
versa. FFR allows a provider
to
supply a service to reduce
demand or increase
generation, when instructed
by National Grid.
FFR is procured via monthly
tender. To take part,
generators must be able to
deliver a minimum
of 10MW, and be capable of
responding within 30 seconds
and for sufficient duration.
Similar
to STOR, providers are paid
for availability as well as
for utilisation. PPG will
compete
in the static market, whereby
energy change occurs at a
pre-set frequency and remains
at a
set level (as opposed to the
dynamic market, where energy
changes in line with system
frequency).
------------------- ------------------------------- ------------------------------- -------------------------------
Triad Triad is the scheme under Energy Suppliers
which the National Grid
charges energy suppliers
significant sums
according to their use of the
high voltage transmission
network during Triad periods
- the
three half-hour periods of
highest demand in a year,
identified after the winter.
The principal
means for National Grid to
cover its costs, Triad also
serves to incentivise users
to limit
consumption during peak
periods, thereby easing the
need for investment in the
transmission
system. Through the PPA,
energy supply companies pay
flexible generators of
electricity to
supply power to local
distribution networks during
anticipated peak periods
(both for the
power generated and for Triad
avoidance), as their
generation reduces demand on
the transmission
network. Generators must
operate during each of the
Triad periods to be eligible
for payments.
------------------- ------------------------------- ------------------------------- -------------------------------
Power Purchase Agreements This is simply sales of Energy Suppliers
(PPA) generated power; when
operating with an objective
of Triad avoidance,
power is sold under a PPA,
typically to a large UK
energy supplier. PPAs are
typically of
a 5+ year duration.
------------------- ------------------------------- ------------------------------- -------------------------------
Capacity Market To ensure long-term security UK Government (via National
of supply, the Capacity Grid)
Market provides financial
incentives
to bring forward new
investment while maximising
existing generation
capabilities. The structure
of CM ensures technology
neutrality, meaning that the
lowest cost technologies that
will guarantee
capacity will be awarded 1, 3
and 15-year contracts,
depending on the level of
capex incurred.
These capacity contracts are
procured through a reverse
auction, run by National
Grid. Generators
who are successful in the
auction will benefit from a
regular, predictable and
index-linked
revenue stream for every hour
they are available. The
capacity obligation means
providers
must be available to deliver
energy when needed or face
penalties.
------------------- ------------------------------- ------------------------------- -------------------------------
Other Management contracts PPG has a management contract PPG Investment Companies
with each Rockpool
investor-funded site. Under
the terms of
these contracts, PPG manages
the asset, from identifying
the site, obtaining planning
permission,
to managing the connection,
construction and operation of
the plant.
------------------- ------------------------------- ------------------------------- -------------------------------
Key relationships
The keys to success are land, asset funding and grid connection, and we enjoy constructive relationships with partners in each of these core aspects.
Land and Planning
Property developers: we work with developers to secure suitable sites in the south of the UK.
Land owners: we are able to secure attractive sites through our relationships with land owners including London & Devonshire Trust and Associated British Ports.
Reliance Energy: we have a formal partnership with Reliance Energy to share solar generation sites (SolarFlex), and to raise funds. When procured, each project will be developed by Reliance Energy, and constructed and managed by PPG in return for a management fee. The equity in each project will be split 70:30, with the majority interest granted to the party that successfully introduces the site.
Funding
Debt markets: there are emerging opportunities to provide development capital for management contracts.
Banks: we have strong relationships with banks and other financial institutions to provide debt financing.
Third party investors: continuing to work actively with other potential and credible investors.
Investors: PPG was readmitted to AIM in August 2014 to capitalise on the opportunity in flexible power generation and is intending to raise further working capital from the bond issue to enable the Company to operate and build out further 20MW SolarFlex and FlexGen sites.
Connections and Contracts
National Grid: we will secure STOR contracts with National Grid for our sites, and we have secured Capacity Market contracts for three sites.
Energy suppliers: we have negotiated Power Purchase Agreements (PPAs) with two national suppliers and are in detailed negotiations with a third.
Connection business: we have a partnership with a connection business to manage both the process of securing connection offers on proposed sites and the contestable connection costs.
Our Strategy
We have made pleasing headway towards achieving our ambition to develop 200MW of flexible generation by the end of 2017, by steadily executing against our clear strategic priorities.
Strategic priority Progress
======================================================= =============================================
Bring online The facility in Plymouth is
standalone FlexGen scheduled to be online by this
sites winter. 12 sites (equivalent
* Nine Rockpool-funded investee company sites to 240MW) have committed and
viable offers of Grid connection,
of which 5 (100MW) have planning
* One majority-owned (non-EIS) PPG site under permission and 1 (20MW) expects
development permission shortly. The balance
of sites with connections are
in various stages of pre-planning.
* Three further sites that can be majority owned
One majority owned subsidiary
of PPG is at an advanced stage
of development, and our objective
is to develop an additional
4 such sites per year of which
we have visibility of at least
three.
------------------------------------------------------- ---------------------------------------------
Progress SolarFlex We developed our existing partnership
sites (co-located with Reliance Energy Limited:
solar and biofuel we held promising talks with
generator facilities) several of their solar farm
operator clients to establish
SolarFlex sites (with shared
connections for solar and non-intermittent
green fuelled generators).
We anticipate that the first
of these sites will be in planning
within 6 months.
------------------------------------------------------- ---------------------------------------------
Explore viability Over the medium to longer term,
of battery, our strategy is to explore
capacitor or commercialisation of storage
inertial energy technologies at our SolarFlex
storage sites, placing us at the forefront
of innovation in the electricity
market.
------------------------------------------------------- ---------------------------------------------
Derive revenue The different markets for flexible
from multiple power and the secured management
sources contracts, means that PPG has
several sources of revenue
upon which to build:
Triad: The Plymouth site is
anticipated to be operational
in time for the forthcoming
Triad season.
Capacity Market: PPG was awarded
contracts for three sites,
which will generate revenues
for 15 years from 2019. The
clearing price was GBP18,000
per MW per year and is index-linked
from the date of grant.
Power Purchase Agreement: We
have Power Purchase Agreements
(PPAs) with two national suppliers
and are in detailed negotiations
with a third.
FFR: Via our subsidiaries and
investee companies, we intend
to build power generation units
which reach full response within
30 seconds and can sustain
supply for 30 minutes, allowing
us to compete in the static
FFR market. STOR and FFR are
mutually exclusive, although
PPG may bid for both types
and run FFR outside STOR hours.
Management contracts: PPG has
been granted nine management
contracts by the entities financed
with equity from clients of
Rockpool Investments. Under
these agreements, PPG receives
monthly payments equivalent
to GBP150,000 per annum for
each investee company.
STOR: We intend to secure STOR
contracts with National Grid
for our sites.
------------------------------------------------------- ---------------------------------------------
Continue to We intend to own majority stakes
pursue non-dilutive (typically 80%) in individual
investment model, entities for future development
holding majority sites. With that objective,
stakes in non-EIS we are in the process of raising
funded, standalone EUR5 million (c.GBP4.0 million)
green fuel generation gross via a 7% 5 year bond
sites issue listed on ISDX. The net
proceeds of this (estimated
to be GBP3.6 million) will
- in conjunction with our existing
cash resources - be allocated
towards the equity finance
required for three or four
additional 20MW flexible generation
sites.
------------------------------------------------------- ---------------------------------------------
Financial Review
The Group has achieved considerable growth in fees received during the year contributing materially to substantially reduced losses and attributable losses per share
The year ended 30 April 2016 has been the first full year of operations since the reverse takeover of Plutus Energy Limited in the previous year together with the contemporaneous re-admission of the Company to AIM. It has been a year of significant progress for the Group in the execution of its business plan. By the end of the year we had seven management contracts in place with Rockpool investee companies and as from 1 May 2016 we have nine management contacts in place, each generating GBP150,000 per annum of fee income which represents an annualised total of GBP1,350,000. In addition to the nine Rockpool companies we are making progress towards the Company's plan to add further capacity by adding another 3 to 4 sites per annum to the portfolio. Each site will be a subsidiary of the Company and will ordinarily hold 20MW of generating capacity. The Company will also seek to introduce outside investors so as to maintain its anti-dilution funding model in the Holding Company and will normally seek to maintain a shareholding of 80%. These sites will have the ability to be fully consolidated in the Group's accounts which will see a strengthening of the Group's balance sheet and the earnings of each subsidiary will be consolidated into the profit and loss account of the Group.
As part of its strategy to build a majority owned portfolio of 20MW sites beyond the nine Rockpool investee companies, where the Company will continue with its obligations to build and develop the Rockpool portfolio and that will continue to be the backbone of the Group's generating capacity and a potentially valuable investment, the Directors have been investigating a suite of equity and loan arrangements for the financing of the majority owned portfolio. As part of this funding suite the Company is in the process of launching a GBP4 million (gross) five year 7% bond to give maximum flexibility to the suite of funding options available to it. The bond will enable the Company to build a further 3/4 new majority owned sites. We are able to fund the interest on our bond out of existing operations and are therefore in a good financial position to develop the majority owned portfolio.
During the year under review the Group increased its revenue to GBP887,500 (2015: GBP87,500), a rise of 914%, from the award of management contracts from the Rockpool investee companies. These fees are expected to run under current management contracts at an annualised rate of GBP1.35 million in future periods. Administrative expenses have increased to GBP1,267,588 (2015: GBP1,071,679) due to the increased activities of the Group in the year under review. There are no other operating expenses in the year under review (2015: GBP300,190), the previous year's other operating expenses being attributable to the costs of the reverse takeover of Plutus Energy Limited, the cost of re-admission and concurrent placing. As a result of the foregoing the actual overall operating expenses of the Group have reduced slightly and the operating loss of the Group has been reduced significantly to GBP380,088 (2015: GBP1,284,369) and the Group made a loss after taxation of GBP407,776 (2015: GBP1,311,427) and consequently the basic and diluted loss per share from continuing operations was 0.07p (2015: 0.32p).
During the year the 100,000,000 shares were issued due to the acceleration of the deferred consideration for the reverse acquisition of Plutus Energy Limited. In addition, James Longley and Charles Tatnall both exercised 10,000,000 warrants each in the Company with a net cash benefit of GBP180,000. A warrant was also granted during the year to Rockpool Investments LLP to subscribe for 30,075,207 new ordinary shares of 0.1p each in the Company at a price of 1.15p per share from 27 May 2018 to 27 May 2021. As a result of the acceleration Goodwill increased to GBP1,085,000 (2015: GBP485,000). Ordinary share capital is GBP1,496,950 (2015: GBP1,376,950) and share premium is GBP6,994,076 (2015: GBP6,334,076).
In terms of working capital, the Company continues to be owed a considerable sum of money from the Rockpool Investee companies and majority owned companies (after provisions for doubtful projects) of just under GBP400,000. The Company disburses funds up to the point of planning permission being granted when the disbursements are reimbursed by the Rockpool investee companies and majority owned companies. It is expected that all these funds outstanding at the year-end will be reimbursed by the Rockpool investee companies and subsidiaries in the next twelve months. Cash was GBP22,608 at the year-end (2015: GBP320,485). The decrease in cash is largely due to the increase in reimbursable expenses. Trade and other payables are increased slightly at GBP166,288 (2015: GBP143,069) which is due largely to the increased level of activity, particularly with regard to the site planning, lease and connection processes. However as mentioned above, we are able to fund the interest on our bond out of existing operations and therefore the relatively low cash balance at the year-end will be increased by the repayment of the reimbursable expenses over the year. Our ongoing overheads and interest will be covered by management fees and we will have the funds from the bond raise coming in to fund new sites. Overall, the Company is in a good situation financially and will continue to manage cash flow and accounts receivable and accounts payable in a fair and reasonable manner within the Group resources.
Group net assets at the year-end were GBP1,166,089 (2015: GBP758,795, an increase of GBP407,294 (54%).
Key performance indicators
The key performance indicators are set out below:
Change
Company statistics 2016 2015 %
-------------------------- ------------ ------------ ------
Gross assets GBP1,525,740 GBP1,083,539 +41%
Cash and cash equivalents GBP22,608 GBP320,485 -93%
Closing share price 0.925p 0.95p -2.6%
Earnings per share (0.07)p (0.32)p 457%
-------------------------- ------------ ------------ ------
Principal risks and uncertainties
The Board regularly reviews the risks facing the Company and seeks to exploit, avoid or mitigate those risks as appropriate.
Financial risk management objectives and policies
Financial risk management objectives and policies of the Company are set out in note 24 to the financial statements.
Going concern
The Directors consider the Company can continue in operational existence for the foreseeable future with its existing resources.
James Longley
Director
2 September 2016
Group Statement of Comprehensive Income
For the year ended 30 April 2015
2016 2015
Note GBP GBP
------------------------------- ---- ----------- -----------
Continuing operations
Revenue 887,500 87,500
------------------------------- ---- ----------- -----------
Gross profit 887,500 87,500
Administrative expenses (1,267,588) (1,071,679)
Other operating expenses - (300,190)
------------------------------- ---- ----------- -----------
Operating loss (380,088) (1,284,369)
Interest charge on loan note 16 (27,688) (27,058)
------------------------------- ---- ----------- -----------
Loss before tax 6 (407,776) (1,311,427)
Tax 8 - -
------------------------------- ---- ----------- -----------
Net loss attributable to
equity holders of the Company
and total comprehensive
loss (407,776) (1,311,427)
------------------------------- ---- ----------- -----------
Earnings per share (pence
per share):
Basic and diluted loss per
share from continuing
and total operations 9 (0.07)p (0.32)p
------------------------------- ---- ----------- -----------
There are no items of other comprehensive income
Group Statement of Changes in Equity
For the year ended 30 April 2016
Share Loan note
Share Share option equity Retained
capital premium reserve reserve losses Total
GBP GBP GBP GBP GBP GBP
----------------- --------- --------- -------- --------- ----------- -----------
At 30 April
2014 969,776 4,523,159 26,156 19,664 (5,758,431) (219,676)
Comprehensive
income for
the year - - - - (1,311,427) (1,311,427)
Credit to equity
in respect
of share-based
compensation
charge - - 48,150 - - 48,150
Issue of share
capital 407,174 1,810,917 - - - 2,218,091
Transfer from
equity reserve
on conversion
of loan stock - - - (19,664) 19,664 -
Transfer to
equity reserve
on issue of
convertible
loan stock - - - 23,657 - 23,657
----------------- --------- --------- -------- --------- ----------- -----------
At 30 April
2015 1,376,950 6,334,076 74,306 23,657 (7,050,194) 758,795
----------------- --------- --------- -------- --------- ----------- -----------
Comprehensive
income for
the year - - - - (407,776) (407,776)
Credit to equity
in respect
of share-based
compensation
charge - - 35,070 - - 35,070
Issue of share
capital 120,000 660,000 - - - 780,000 ----------------- --------- --------- -------- --------- ----------- ----------- At 30 April 2016 1,496,950 6,994,076 109,376 23,657 (7,457,970) 1,166,089 ----------------- --------- --------- -------- --------- ----------- -----------
Company Statement of Changes in Equity
For the year ended 30 April 2016
Share Loan note
Share Share option equity Retained
capital premium reserve reserve losses Total
GBP GBP GBP GBP GBP GBP
---------------- --------- --------- -------- --------- ----------- -----------
At 30 April
2014 969,776 4,523,159 26,156 19,664 (5,758,431) (219,676)
Comprehensive
income for
the year - - - - (1,268,355) (1,268,355)
Credit to
equity in
respect of
share-based
compensation
charge - - 48,150 - - 48,150
Issue of share
capital 407,174 1,810,917 - - - 2,218,091
Transfer from
equity reserve
on conversion
of loan stock - - - (19,664) 19,664 -
Transfer to
equity reserve
on issue of
convertible
loan stock - - - 23,657 - 23,657
---------------- --------- --------- -------- --------- ----------- -----------
At 30 April
2015 1,376,950 6,334,076 74,306 23,657 (7,007,122) 801,867
---------------- --------- --------- -------- --------- ----------- -----------
Comprehensive
income for
the year - - - - (405,426) (405,426)
Credit to
equity in
respect of
share-based
compensation
charge - - 35,070 - - 35,070
Issue of share
capital 120,000 660,000 - - - 780,000
---------------- --------- --------- -------- --------- ----------- -----------
At 30 April
2016 1,496,950 6,994,076 109,376 23,657 (7,412,548) 1,211,511
---------------- --------- --------- -------- --------- ----------- -----------
Group and Company Statements of Financial Position
For the year ended 30 April 2016
Group Company
------------------------ ------------------------
2016 2015 2016 2015
Note GBP GBP GBP GBP
-------------------------- ---- ----------- ----------- ----------- -----------
Non-current assets
Goodwill 12 1,085,000 485,000 - -
Investments 11 152 47 1,085,152 485,000
-------------------------- ---- ----------- ----------- ----------- -----------
1,085,152 485,047 1,085,152 485,000
-------------------------- ---- ----------- ----------- ----------- -----------
Current assets
Trade and other
receivables 13 417,980 278,007 457,929 317,047
Cash and cash equivalents 14 22,608 320,485 20,375 320,485
-------------------------- ---- ----------- ----------- ----------- -----------
440,588 598,492 478,304 637,532
-------------------------- ---- ----------- ----------- ----------- -----------
Total assets 1,525,740 1,083,539 1,563,456 1,122,532
Current liabilities
Trade and other
payables 15 (166,288) (143,069) (158,582) (138,990)
Borrowings 16 (16,000) (16,000) (16,000) (16,000)
-------------------------- ---- ----------- ----------- ----------- -----------
(182,288) (159,069) (174,582) (154,990)
-------------------------- ---- ----------- ----------- ----------- -----------
Net current assets 258,300 439,423 303,722 482,542
-------------------------- ---- ----------- ----------- ----------- -----------
Non-current liabilities
Borrowings 16 (177,363) (165,675) (177,363) (165,675)
-------------------------- ---- ----------- ----------- ----------- -----------
Total liabilities (359,651) (324,744) (351,945) (320,665)
-------------------------- ---- ----------- ----------- ----------- -----------
Net assets 1,166,089 758,795 1,211,511 801,867
-------------------------- ---- ----------- ----------- ----------- -----------
Equity
Share capital 17 1,496,950 1,376,950 1,496,950 1,376,950
Share premium account 18 6,994,076 6,334,076 6,994,076 6,334,076
Share option and
warrant reserve 19 109,376 74,306 109,376 74,306
Loan note equity
reserve 20 23,657 23,657 23,657 23,657
Retained losses 21 (7.457,970) (7.050,194) (7,412,548) (7,007,122)
-------------------------- ---- ----------- ----------- ----------- -----------
Equity attributable
to owners of the
Company 1,166,089 758,795 1,211,511 801,867
-------------------------- ---- ----------- ----------- ----------- -----------
The financial statements of Plutus PowerGen plc, registered number 5859612, were approved by the Board of Directors and authorised for issue on 2 September 2016. They were signed on its behalf by:
James Longley
Director
Group and Company Statements of Cash Flow
For the year ended 30 April 2016
Group Company
---------------------- --------------------
2016 2015 2016 2015
Note GBP GBP GBP GBP
-------------------------- ---- --------- ----------- --------- ---------
Net cash used in
operating activities 25 (461,772) (1,121,714) (219,486) (931,881)
-------------------------- ---- --------- ----------- --------- ---------
Investing activities
Investment in associated
undertakings (105) (47) (105) -
Advances to subsidiary
undertaking - - (244,519) (189,880)
-------------------------- ---- --------- ----------- --------- ---------
Net cash used in
investing activities (105) (47) (244,624) (189,880)
-------------------------- ---- --------- ----------- --------- ---------
Financing activities
Proceeds of share
issues 180,000 1,300,000 180,000 1,300,000
Share issue expenses - (67,450) - (67,450)
Proceeds of convertible
loan
note issues - 200,000 - 200,000
Proceeds of other
loans - 7,500 - 7,500
Interest paid (16,000) (4,701) (16,000) (4,701)
-------------------------- ---- --------- ----------- --------- ---------
Net cash generated
from
financing activities 164,000 1,435,349 164,000 1,435,349
-------------------------- ---- --------- ----------- --------- ---------
Net increase/(decrease)
in
cash and cash
equivalents (297,877) 313,588 (300,110) 313,588
Cash and cash equivalents
at beginning of
year 320,485 6,897 320,485 6,897
-------------------------- ---- --------- ----------- --------- ---------
Cash and cash equivalents
at end of year 14 22,608 320,485 20,375 320,485
-------------------------- ---- --------- ----------- --------- ---------
Notes to the Financial Statements
For the year ended 30 April 2016
1. General information
Plutus PowerGen plc is a Company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is 27/28 Eastcastle Street, London W1E 8DH. The nature of the Group's operations and its principal activities are set out in the Strategic Report and in the Chairman's Statement.
These financial statements are presented in pounds sterling which is the currency of the primary economic environment in which the Group operates.
2. Statement of compliance
The financial statements comply with IFRS as
adopted by the European Union. The following
new and revised Standards and Interpretations
have been adopted in the current period by the
Group for the first time and do not have a material
impact on the Group.
IFRS 12 Disclosures of interests in other entities
A number of new standards and amendments to standards
and interpretations have been issued but are
not yet effective and not early adopted. None
of these are expected to have a significant effect
on the financial statements of the Group.
3. Significant accounting policies
Basis of accounting
The financial statements of Plutus PowerGen plc (the "Company") and its subsidiaries (the "Group") have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union ("EU") applied in accordance with the provisions of the Companies Act 2006.
IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the International Financial Standards Interpretations Committee ("IFRS IC") and there is an ongoing process of review and endorsement by the European Commission.
The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at amortised cost, as explained in the accounting policies below.
Going concern
In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Company can continue in operational existence for the foreseeable future. The Group had cash and cash equivalents of GBP22,608 and net current assets of GBP256,967 as at 30 April 2016, and incurred a loss of GBP407,776 for the year then ended.
The Directors have based their opinions on a cash flow forecast, which assumes that sufficient revenue will be generated for working capital purposes and that operating costs will be kept to a minimum until adequate revenue streams are secured. For this reason, the Directors continue to adopt the going concern basis in preparing the financial statements. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern.
Basis of consolidation
The Group's consolidated financial statements incorporate the financial statements of Plutus PowerGen plc (the "Company") and entities controlled by the Company (its subsidiaries). Subsidiaries are entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Profits and losses resulting from inter-company transactions that are recognised in assets are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the year end date.
Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each year end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and where they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Revenue
Revenue is derived from the provision of management services which are invoiced on a monthly basis and are recognised in the period to which they relate.
Financial instruments
Financial assets and financial liabilities are recognised in the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.
Financial assets
Financial assets are classified into the following specified categories: 'available for sale investments', 'loans and receivables' and 'cash and cash equivalents'. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Available for sale investments
Investments are designated as available-for-sale financial assets if they do not have fixed maturities and fixed or determinable payments, and management intends to hold them for the medium to long-term. Financial assets that are not classified into any of the other categories are also included in the available-for-sale category.
Investments are initially measured at fair value plus incidental acquisition costs. Subsequently, they are measured at fair value in accordance with IAS 39. In respect of quoted investments, this is either the bid price at the period end date or the last traded price, depending on the convention of the exchange on which the investment is quoted, with no deduction for any estimated future selling cost. Unquoted investments are valued by the Directors using primary valuation techniques such as recent transactions, last price or net asset value.
Gains and losses on measurement are recognised in other comprehensive income except for impairment losses and foreign exchange gains and losses on monetary items denominated in a foreign currency, which are recognised directly in profit or loss. Where the investment is disposed of or is determined to be impaired the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.
The Group assesses at each period end date whether there is any objective evidence that a financial asset or group of financial assets classified as available-for-sale has been impaired. An impairment loss is recognised if there is objective evidence that an event or events since initial recognition of the asset have adversely affected the amount or timing of future cash flows from the asset. A significant or prolonged decline in the fair value of a security below its cost shall be considered in determining whether the asset is impaired.
When a decline in the fair value of a financial asset classified as available-for-sale has been previously recognised in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss is removed from other comprehensive income and recognised in profit or loss. The loss is measured as the difference between the cost of the financial asset and its current fair value less any previous impairment.
Fair Value Measurements:
The Group holds investments that are measured at fair value at the end of each reporting period using the IFRS 7 fair value hierarchy as set out below.
Level 1 - valued using quoted prices in active markets for identical assets.
Level 2 - valued by reference to valuation techniques using observable inputs other than quoted prices included within Level 1.
Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received net of direct issue costs.
The share capital account represents the amount subscribed for shares at nominal value.
The share premium account represents premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.
The share option reserve represents the fair value, calculated at the date of grant, of options unexercised at the balance sheet date.
The loan note equity reserve represents the fair value, calculated at issuance of the loan notes.
Retained losses include all current and prior period results as disclosed in the statement of comprehensive income.
Financial liabilities
Financial liabilities are recognised in the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. All interest related charges are recognised as an expense in finance cost in the income statement using the effective interest rate method.
The Group's financial liabilities comprise trade and other payables and borrowings.
Trade payables are recognised initially at their fair value and subsequently measured at amortised cost less settlement payments.
Borrowings represent convertible loans that are accounted for as compound instruments. The fair value of the liability portion of the convertible loan notes is determined using a market interest rate for an equivalent non-convertible loan note. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the loan notes. The remainder of the proceeds is allocated to the conversion option, which is recognised and included in shareholders' equity, net of tax effects, and is not subsequently re-measured.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that the Group will be required to settle that obligation. Provisions are measured at the Directors' best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.
Share-based payments
The Group has applied the requirements of IFRS 2 'Share-based Payments'.
The Group issues equity-settled share based payments to certain employees. Equity settled share based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity settled share based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effect of non-market based vesting conditions.
Fair value is measured by use of the Black Scholes model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
4. Critical accounting judgements and key sources of estimation uncertainty
Critical judgements in applying the Group's accounting policies
In the application of the Group's accounting policies, which are described in note 3, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; or in the period of the revision and future periods if the revision affects both current and future periods.
(i) Classification of investments as available for sale
Note 11 describes the investments in nine operating companies where the Group's shareholdings exceed 20% as 'Available for Sale Investments'. Based on the contractual agreements between the Group and other investors, the Group does not have any power to appoint or remove board of directors members of the investees. Therefore the Directors of the Company concluded that the Group does not have significant influence over these companies.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are set out below.
(i) Share options
In order to calculate the charge for share-options as required by IFRS 2, the Group makes estimates principally relating to the assumptions used in its Black-Scholes option pricing model as set out in note 20.
5. Business segments
In accordance with IFRS 8, the Group is required to define its operating segments based on the internal reports presented to its Chief Operating decision maker in order to allocate resources and assess performance. The Chief Operating decision maker is the Chief Executive. There is only one continuing class of business, being the operation of flexible stand-by electricity generators in the UK.
Given that there is only one continuing class of business, operating within the UK, no further segmental information has been provided.
6. Loss for the year
Loss for the year from continuing operations has been arrived at after charging:
2016 2015
GBP GBP
--------------------------------------- ------- -------
Operating lease in respect of property 63,839 12,856
Employee costs - including share-based
compensation costs
(see note 7) 766,010 774,817
--------------------------------------- ------- -------
The analysis of auditors' remuneration is as follows:
2016 2015
GBP GBP
---------------------------------------- ------ ------
Fees payable to the Group's auditor
for the audit of the Group's annual
accounts 20,000 17,500
---------------------------------------- ------ ------
Other services pursuant to legislation:
- tax services 2,000 2,000
---------------------------------------- ------ ------
Total non-audit fees 2,000 2,000
---------------------------------------- ------ ------
7. Employee costs (including Directors)
2016 2015
GBP GBP
-------------------------------------------- ------- -------
Salaries and fees 752,091 724,810
Employee share option charge 3,794 48,150
Employer's national insurance contributions 10,125 1,857
-------------------------------------------- ------- -------
766,010 774,817
-------------------------------------------- ------- -------
The average monthly number of employees (including Executive Directors) employed by the Group during the year was 4, all of whom were involved in management and administration activities (2015:4).
8. Tax
2016 2015
GBP GBP
------------ ---- ----
Current tax - -
Deferred tax - -
------------ ---- ----
- -
------------ ---- ----
Corporation tax is calculated at 20% (2015: 20%) of the estimated assessable loss for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. The charge for the year can be reconciled to the profit per the statement of comprehensive income as follows:
Tax reconciliation
2016 2015
GBP GBP
---------------------------------- --------- -----------
Loss before tax (407,776) (1,311,427)
---------------------------------- --------- -----------
Tax at UK corporation tax rate of
20% (2015: 20%) (81,555) (262,285)
Effects of:
Expenses not deductible for tax
purposes 10,650 61,353
Tax losses carried forward 70,905 200,932
---------------------------------- --------- -----------
Total tax charge - -
---------------------------------- --------- -----------
Deferred tax assets of approximately GBP388,000 (2015: GBP388,000) have not been recognised as the Directors consider there to be insufficient evidence that the assets will be recovered.
9. EARNINGS per share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.
In order to calculate diluted loss per share, the weighted average number of ordinary shares in issue was adjusted to assume conversion of all dilutive potential ordinary shares according to IAS 33. Dilutive potential ordinary shares include share options granted to employees and Directors where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company's ordinary shares during the year.
IAS 33 'Earnings per share' requires presentation of diluted earnings per share when a company could be called upon to issue shares that would decrease net profit or increase net loss per share. Only options that are 'in the money' are treated as dilutive and net loss per share would not be increased by the exercise of such options.
2016 2015
Loss GBP GBP
------------------------------------ ----------- -----------
Loss for the purposes of basic and
diluted earnings per share:
Continuing and total operations (407,776) (1,311,427)
------------------------------------ ----------- -----------
Number of shares Number Number
------------------------------------ ----------- -----------
Weighted average number of ordinary
shares for the purposes of basic
and diluted loss per share 602,254,768 411,010,715
------------------------------------ ----------- -----------
10. Investments in subsidiarIES
The Group holds the following investments in subsidiary undertakings:
Percentage
of
Country of ordinary Principal
Subsidiary Incorporation shares held activity
---------------- -------------- ------------ ----------------
Plutus Energy England and 100% Management
Limited Wales services to
the electricity
generating
entities (Note
11)
England and Electricity
GW Power Limited Wales 80% generation
The carrying value of the investments in the Company is as follows:
2016 2015
GBP GBP
---------------------------------- --------- -------
Fair value brought forward 485,000 -
Reclassified from investments in
associated entities - 125,000
Purchase of investments (see note
below) 600,000 360,000
---------------------------------- --------- -------
At 30 April 2016 1,085,000 485,000
---------------------------------- --------- -------
At the Company's AGM held on 20 November 2015 a proposed amendment to the acquisition agreement in respect of Plutus Energy Limited ("PEL") was approved to the effect that the Deferred Consideration of up to 50,000,000 Ordinary Shares for each of the Vendors, which was conditional on certain events per the original agreement, became immediately payable and subsequently, on 1 February 2016, 50,000,000 shares were issued to each of Philip Stephens and Paul Lazarevic.
11. AVAILABLE FOR SALE INVESTMENTS
Available for sale investments comprise investments in nine operating entities. As explained in Note 4, these investments are not equity accounted for as the Group does not meet the criteria for exerting significant influence as set out in IAS 28.
All investments are classified as Level 3 under the IFRS 7 fair value hierarchy as set out under Fair Value Measurements.
2016 2015
Level 3 investments GBP GBP
---------------------------------- ---- ----
At 1 May 2014 and 1 May 2015 47 -
Purchase of investments (see note
below) 105 47
---------------------------------- ---- ----
At 30 April 2016 152 47
---------------------------------- ---- ----
During the year the Group acquired 44.5% shareholdings in six further companies set up to supply stand-by electricity to the National Grid for the total cost of these shareholdings was GBP105.
The details of investments classified as available for sale are as follows:
Percentage
of
Country of ordinary Principal
Investment Company Incorporation shares held activity
------------------- -------------- ------------ -----------
Attune Energy England and Electricity
Limited Wales 44.5% generation
Balance Power England and Electricity
Limited Wales 44.5% generation
Flexible Generation England and Electricity
Limited Wales 44.5% generation
Equivalence Energy England and Electricity
Limited Wales 44.5% generation
Precise Energy England and Electricity
Limited Wales 44.5% generation
Valence Power England and Electricity
Limited Wales 44.5% generation
Portman Power England and Electricity
Limited Wales 44.5% generation
Reliance Generation England and Electricity
Limited Wales 44.5% generation
England and Electricity
Selectgen Limited Wales 44.5% generation
12. Goodwill
2016 2015
GBP GBP
----------------------------------- --------- -------
Brought forward 485,000 -
Arising on acquisition of PEL - 485,000
On issue of deferred consideration
shares (see note below) 600,000 -
----------------------------------- --------- -------
Carried forward at 30 April 2016 1,085,000 485,000
----------------------------------- --------- -------
On 22 August 2014 the Group completed the acquisition of the remaining 75% of the equity of Plutus Energy Limited ("PEL") for a consideration of GBP360,000, satisfied by the issue of 60,000,000 ordinary shares at 0.6p per share. The Group acquired its original 25% shareholding in PEL for GBP125,000 in January 2014. At the date of acquisition PEL had net assets of GBPnil and the consideration of GBP485,000 was accounted for as goodwill.
As detailed in note 10 on 1 February 2016 100,000,000 ordinary shares were issued at 0.6p each to the vendors of PEL.
Goodwill is monitored by management at the Group level. The recoverable amount is determined based on value-in-use calculations which uses cash flow projections based on financial budgets approved by the Directors covering a five-year period, and a discount rate of 15% per annum.
The Directors believe that any reasonably possible change in key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit.
13. TRADE AND OTHER
RECEIVABLES Group Company
---------------- ----------------
2016 2015 2016 2015
GBP GBP GBP GBP
---------------------------- ------- ------- ------- -------
Trade receivables - 30,000 - 30,000
Amounts due from subsidiary
undertakings - - 434,399 189,880
Other receivables 399,050 232,307 4,600 81,467
Prepayments and accrued
income 18,930 15,700 18,930 15,700
---------------------------- ------- ------- ------- -------
417,980 278,007 457,929 317,047
---------------------------- ------- ------- ------- -------
Other receivables include amounts due from the operating entities of GBP394,450 (2015: GBP150,840) which relate to initial site preparation expenses incurred on their behalf. The costs incurred are unsecured and fall due to the Company once the planning permission for the site has been received.
The Directors consider the carrying amount of trade and other receivables approximates to their fair value.
14. Cash and cash equivalents
Group Company
--------------- ---------------
2016 2015 2016 2015
GBP GBP GBP GBP
-------------------------- ------ ------- ------ -------
Cash and cash equivalents 22,608 320,485 20,375 320,485
-------------------------- ------ ------- ------ -------
22,608 320,485 20,375 320,485
-------------------------- ------ ------- ------ -------
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair value.
15. Trade and other payables
Group Company
---------------- ----------------
2016 2015 2016 2015
GBP GBP GBP GBP
---------------------- ------- ------- ------- -------
Trade payables 82,665 48,130 74,959 44,095
Other payables 20,273 3,289 20,273 3,245
Accruals and deferred
income 63,350 91,650 63,350 91,650
---------------------- ------- ------- ------- -------
166,288 143,069 158,582 138,990
---------------------- ------- ------- ------- -------
Trade payables and accruals principally comprise amounts outstanding for trade purchases and on-going costs. The Directors consider that the carrying amount of trade and other payables approximates to their fair value. No trade payables were older than 90 days.
16. Borrowings
Group and Company
Convertible loans
On 22 December 2014 the Company issued GBP200,000 convertible loan notes, repayable on 18 December 2016 if not converted into shares prior to that date, and bearing interest at 8% p.a. payable quarterly in arrears.
The net proceeds from the issue of the loan notes have been split between the liability element and an equity component, representing the fair value of the embedded option to convert the liability into equity of the Company as follows:
The interest charged during the period is calculated by applying an effective average interest rate of 15% to the liability component for the period since the loan notes were issued.
The Directors estimate the fair value of the liability component of the loan notes at 30 April 2016 to be approximately GBP193,363 (2015: GBP181,675). This fair value has been calculated by discounting the future cash flows at the market rate of 15%.
2016 2015
GBP GBP
------------------------------------ -------- ---------
Liability component brought forward 181,675 245,767
Nominal value of convertible loan
notes issued - 200,000
Conversion of loan notes - (262,792)
Equity component of convertible
loan notes issued - (23,657)
------------------------------------ -------- ---------
181,675 159,318
Interest charge for the period 27,688 27,058
Interest paid (16,000) (4,701)
------------------------------------ -------- ---------
Liability component of convertible
loans at 30 April 2016 193,363 181,675
Other loans - -
------------------------------------ -------- ---------
Total borrowings 193,363 181,675
------------------------------------ -------- ---------
Current liabilities 16,000 16,000
Non-current liabilities 177,363 165,675
------------------------------------ -------- ---------
193,363 181,675
------------------------------------ -------- ---------
17. Share capital
2016 2015
Number Number
--------------------------------- ----------- ------------
Authorised shares
Ordinary shares of GBP0.001 each 771,428,935 571,428,935.
Deferred shares of GBP0.049 each 16,439,210 16,439,210
--------------------------------- ----------- ------------
Total 787,868,145 587,868,145
--------------------------------- ----------- ------------
2016 2016 2015 2015
Number GBP Number GBP
---------------------- ----------- --------- ----------- ---------
Issued and fully paid
Ordinary shares of
GBP0.001 each 691,428,935 691,429 571,428,935 571,429
Deferred shares of
GBP0.049 each 16,439,210 805,521 16,439,210 805,521
---------------------- ----------- --------- ----------- ---------
Total 1,496,950 1,376,950
---------------------- ----------- --------- ----------- ---------
Share issues
Nominal
value
Ordinary shares Number GBP GBP
-------------------------- ----------- ------- -------
Issued shares on 30 April
2014 164,255,215 164,255
Issue of shares 407,173,720 0.001 407,174
-------------------------- ----------- ------- -------
Issued shares on 30 April
2015 571,428,935 571,429
Issue of shares 120,000,000 0.001 120,000
-------------------------- ----------- ------- -------
Issued ordinary shares on
30 April 2016 691,428,935 691,429
-------------------------- ----------- ------- -------
On 1 February 2016 the following share issues took place:
-- 20,000,000 shares were issued for cash at 0.9p per share on the exercise of warrants.
-- 100,000,000 shares were issued at 0.6p per share as deferred consideration in accordance with the amended agreement for the acquisition of Plutus Energy Limited.
18. Share premium account
Share premium account GBP ------------------------------------------ --------- Balance at 30 April 2014 4,523,159 Premium arising on issue of equity shares 1,878,367 Share issue expenses (67,450) ------------------------------------------ --------- Balance at 30 April 2015 6,334,076 Premium arising on issue of equity shares 660,000 Balance at 30 April 2016 6,994,076 ------------------------------------------ ---------
19. Share option and warrant reserve
GBP
--------------------------- -------
Balance at 30 April 2014 26,156
Share-based payment charge 48,150
--------------------------- -------
Balance at 30 April 2015 74,306
Share-based payment charge 35,070
--------------------------- -------
Balance at 30 April 2016 109,376
--------------------------- -------
20. loan note equity reserve
GBP
------------------------------------------- --------
Balance at 30 April 2014 19,664
Transfer to retained losses on conversion
of loan stock (19,664)
Arising on issue of convertible unsecured
loan stock 23,657
------------------------------------------- --------
Balance at 30 April 2015 and 30 April 2016 23,657
------------------------------------------- --------
21. Retained losses
GBP
--------------------------------------- -----------
Balance at 30 April 2014 (5,758,431)
Comprehensive loss for the year (1,311,427)
Transfer from loan note equity reserve 19,664
--------------------------------------- -----------
Balance at 30 April 2015 (7,050,194)
Comprehensive loss for the year (407,776)
--------------------------------------- -----------
Balance at 30 April 2016 7,457,970
--------------------------------------- -----------
22. Share options and warrants
Options
On 8 March 2013, options over, in aggregate, 14,310,000 ordinary shares of 0.1 pence were granted to the Directors of the Company. Each option carries the right to subscribe to one new Ordinary Share in the capital of the Company at a price of 0.675p per Ordinary Share, being the closing mid-market price of the Company's ordinary shares on 8 March 2013. These options vest over a period of three years from the date of the Grant, with a third of the options vesting on the first, second and third anniversaries of the Grant respectively. These options are exercisable for a period of ten years from the date of the Grant subject to the vesting conditions.
The fair value of the options was calculated using the Black-Scholes model and the Group recognised total expenses of GBP3,794 (2015: GBP10,150) related to the grant of these options during the year. The inputs to the Black-Scholes model were as follows:
Grant date share price 0.675p Exercise share price 0.675p Risk free rate 2.5% Expected volatility 50% Option life 10 years Calculated fair value per share 0.420p
The table below summarises the share options extant during the year:
Number Number of of options Issued Lapsed options Exercisable at in Exercised in at at 30 30 April the in the the 30 April April Exercise Vesting Expiry 2015 year year year 2016 2016 price date date --------- ------ --------- ------ --------- ----------- -------- --------- --------- 3,180,000 - - - 3,180,000 3,180,000 0.675p 8.03.2014 8.03.2023 3,180,000 - - - 3,180,000 3,180,000 0.675p 8.03.2015 8.03.2023 3,180,000 - - - 3,180,000 3,180,000 0.675p 8.03.2016 8.03.2023 --------- ------ --------- ------ --------- ----------- -------- --------- --------- 9,540,000 - - - 9,540,000 9,540,000 0.675p --------- ------ --------- ------ --------- ----------- -------- --------- ---------
Warrants
On 28 May 2015, warrants over, in aggregate, 30,075,207 ordinary shares of 0.1 pence were issued to Rockpool LLP, an advisor to the Company. Each warrant carries the right to subscribe for one new Ordinary Share in the capital of the Company at a price of 1.15p per ordinary share at any time between 27 May 2018 and 27 May 2021.
The fair value of the warrants was calculated using the Black-Scholes model and the Group recognised total expenses of GBP31,276 (2015: GBP38,000) related to the issue of these warrants during the year. The inputs to the Black-Scholes model were as follows:
Grant date share price 0.8p Exercise share price 1.15p Risk free rate 2% Expected volatility 50% Life of warrant 6 years Calculated fair value per share 0.312p
The table below summarises the share warrants extant during the year:
Number of Number of Exercisable
warrants at Issued in Exercised Lapsed in the warrants at at 30 April Exercise Vesting
30 April 2015 the year in the year year 30 April 2016 2016 price date Expiry date
------------- ---------- ------------ ------------- ------------- ------------ -------- ---------- -----------
40,000,000 - (20,000,000) - 20,000,000 20,000,000 0.9p 22.08.2014 *22.08.2016
- 30,075,207 - - 30,075,207 - 1.15p 27.05.2018 27.05.2021
------------- ---------- ------------ ------------- ------------- ------------ -------- ---------- -----------
40,000,000 30,075,207 (20,000,000) - 50,075,207 20,000,000
------------- ---------- ------------ ------------- ------------- ------------ -------- ---------- -----------
*On 1 August 2016, the expiry date of the 20,000,000 warrants, issued to Charles Tatnall and James Longley on 5 August 2014, was extended to 22 August 2017.
23. Financial instruments
Categories of financial instruments
Carrying value
------------------
2016 2015
GBP GBP
------------------------------------ --------- -------
Financial assets
Investments designated as available
for sale on initial recognition 1,085,152 485,047
Trade receivables - 30,000
Cash and cash equivalents 22,608 320,485
------------------------------------ --------- -------
1,107,760 835,532
------------------------------------ --------- -------
Financial liabilities at amortised
cost:
Convertible unsecured loan notes 193,363 181,675
Trade and other payables 102,938 48,130
------------------------------------ --------- -------
296,301 229,805
------------------------------------ --------- -------
24. Risk management objectives and policies
The Group's finance function monitors and manages the financial risks relating to the operations of the Group. These risks include credit risk, liquidity risk and cash flow interest rate risk.
The Group seeks to minimise the effects of these risks, in accordance with the Group's policies approved by the Board of Directors, which provide written principles on interest rate risk, credit risk and the investment of excess liquidity. The Group does not enter into or trade financial instruments, including derivative financial instruments, for any purpose.
Capital management
The Group's objectives when managing capital are:
-- to safeguard the Group's ability to continue as a going concern, so that it continues to provide returns and benefits for shareholders;
-- to support the Group's growth; and -- to provide capital for the purpose of strengthening the Group's risk management capability.
The Group actively and regularly reviews and manages its capital structure to ensure an optimal capital structure and equity holder returns, taking into consideration the future capital requirements of the Group and capital efficiency, prevailing and projected profitability, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities. The capital structure consists of capital and reserves and convertible loan notes, for capital management purposes.
Interest rate risk
The Group's exposure to interest rate risk is limited to the interest payable on the convertible unsecured loan notes, which are at fixed rates of interest.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group's principal financial assets are bank balances and cash and other receivables.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Group manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
25. Notes to the cash flow statement
Group Company
---------------------- ----------------------
2016 2015 2016 2015
GBP GBP GBP GBP
---------------------------- --------- ----------- --------- -----------
Loss before tax (407,776) (1,311,427) (405,426) (1,268,355)
Share-based compensation
charge 35,070 48,150 35,070 48,150
Loan note interest
charge 27,688 27,058 27,688 27,058
Shares issued in settlement
of fees
and bonuses - 330,000 - 330,000
---------------------------- --------- ----------- --------- -----------
Operating cash flow
before movements
in working capital (345,018) (906,219) (342,668) (863,147)
(Increase)/decrease
in receivables (139,973) (267,352) 103,637 (116,512)
Increase in payables 21,886 51,857 18,212 47,778
---------------------------- --------- ----------- --------- -----------
Net cash used in operating
activities (463,105) (1,121,714) (220,819) (931,881)
---------------------------- --------- ----------- --------- -----------
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-term highly liquid investments with a maturity of three months or less.
26. Operating lease arrangements
The Group and Company as lessee
2016 2015
GBP GBP
--------------------------------------- ------ ------
Minimum lease payments under operating
leases due within 1 year 41,400 36,000
--------------------------------------- ------ ------
27. Related party transactions
During the year ended 30 April 2016, fees of GBP116,750 (2015: GBP107,334) were paid to Yum Management Limited in respect of Charles Tatnall's services as Executive Chairman. GBPnil (2015: GBP8,000) was owing at the year end to Yum Management Limited in respect of these fees.
During the year ended 30 April 2016, fees of GBP116,750 (2015: GBP107,058) were paid to Dearden Chapman Accountants Limited in respect of James Longley's services as Chief Financial Officer. GBPnil (2015: GBP8,000) was owing at the year end to Dearden Chapman Accountants Limited in respect of these fees.
During the year ended 30 April 2016, fees of GBP158,167 (2015: GBP87,668) were paid to PPT Capital Limited in respect of services rendered by Phil Stephens and Paul Lazarevic. Phil Stephens and Paul Lazarevic were both directors of PPT Capital Ltd during the year. GBPnil (2015: GBP16,000) was owing at the year end to PPT Capital Limited in respect of these fees. Also fees of GBP45,000 (2015: GBPnil) were paid to Helvic Limited in respect of services rendered by Paul Lazarevic, who was a director of Helvic Limited during the year. No amounts were due to Helvic Limited at either 30 April 3016 or 30 April 2015.
Also on 1 February 2016, following approval at the Company's AGM of an amendment to the acquisition agreement in respect of Plutus Energy Limited ("PEL") 50,000,000 shares were issued to each of Philip Stephens and Paul Lazarevic.
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures. Further information about the remuneration of individual Directors is provided in the Directors' Remuneration Report.
2016 2015
GBP GBP
----------------------------- ------- -------
Short-term employee benefits 734,913 711,667
----------------------------- ------- -------
734,913 711,667
----------------------------- ------- -------
In addition to the information disclosed in Note 22, movement on warrants held by the Directors is as follows:
Charles
James Longley Tatnall
Exercise Vesting Number Number
price date of warrants of warrants
----------------- -------- ---------- ------------- ------------
At 30 April 2014 - -
Granted in the
year 0.9 22.08.2017 20,000,000 20,000,000
----------------- -------- ---------- ------------- ------------
At 30 April 2015 20,000,000 20,000,000
Exercised during
the year (10,000,000) (10,000,000)
----------------- -------- ---------- ------------- ------------
At 30 April 2016 10,000,000 10,000,000
----------------- -------- ---------- ------------- ------------
On 1 February 2016, 10,000,000 shares were issued at 0.9p per share to each of Charles Tatnall and James Longley on the exercise of warrants. The aggregate of the amount of gains made by each director on the exercise of warrants is GBP20,000.
Transactions with subsidiary undertaking
The Company has made payments on behalf of its subsidiary undertaking PEL amounting to GBP244,519 (2015: GBP233,630) and PEL has charged the Company GBP443,750 (2015: GBP43,750) for consultancy services. At the year end there was an amount due by PEL to the Company of GBP434,399 (2015: GBP189,880) as disclosed in note 13.
28. Events after the YEAR END
The Company received planning permission for two 20MW flexible stand-by power generation sites in Ipswich. These sites are equity funded by Rockpool Investments LLP and in which we have a 44.5% interest. With planning permission now obtained for a total of 40MW at the sites in Ipswich, preparations for the civil construction phase of these projects can now commence. The sites will be eligible for prequalification to the Capacity Market and it is expected that power generation from these sites will commence in 2017.
**ENDS**
For further information, please visit www.plutuspowergen.com, or contact:
Charles Tatnall Plutus PowerGen Plc Tel: +44 (0)
20 3705 8350
---------------- -------------------- --------------
Phil Stephens Plutus PowerGen Plc Tel: +44 (0)
20 3705 8352
---------------- -------------------- --------------
Ewan Leggat SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
---------------- -------------------- --------------
Laura Harrison SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
---------------- -------------------- --------------
Elisabeth St Brides Partners Tel: +44 (0)
Cowell Ltd 20 7236 1177
---------------- -------------------- --------------
Isabel de St Brides Partners Tel: +44 (0)
Salis Ltd 20 7236 1177
---------------- -------------------- --------------
Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.
Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity by the end of 2017 and currently has a project pipeline of potential development sites with 700MW of power generation capacity.
PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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