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Interim Results for the Six Month Period Ended 31 October 2015
Plutus PowerGen(LSE:PPG), the AIM listed power Company focused on the development, construction and operation of flexible stand-by electricity generation in the UK has announced its interim results for the six month period ended 31 October 2015.
Highlights
Following an extremely busy year of rapid growth of the Company post re-admission to AIM, this period has seen the Group continuing to build upon the strong operational and financial platforms established by the Company in its first year of operations.
· Losses for the period much reduced compared with same period last year – down 77.6%
· Revenues of £362,500 in the period compared with Zero in the same period last year
· Fees now being earned from seven management contracts
· Annualised fees in excess of £1m per annum
· Target of at least 200MW of generating capacity in 3 years
· 140MW equivalent of sites under management to date
· Success in the Capacity Market Auction for three 20MW sites with planning, totalling 60MW
· Total pipeline over 700MW
Executive Chairman’s Report
This period has again been a very busy one for the Group as the Directors continue to be active in securing deals to enable the Group to achieve its target of at least 200MW of flexible power generation in the UK by the end of 2017. Indeed, the pipeline of sites in the UK is currently in excess of 700MW included in which we have seven Rockpool Investments LLP management contracts with 45% owned investee companies and three projects with planning permission and Capacity Market Auction successes, namely Crumlin, Plymouth and Selby.
Plymouth is currently under construction and in respect to Selby, which has a connection agreement, planning permission and a Capacity Market contract, the Company is finalising the funding arrangements. Upon completion of this, the Group will own a significant majority of the project with associated balance sheet and profit and loss account consolidation benefits from go-live. We currently have two projects in the planning process and many more due to enter this phase, as well as a number of sites in the pre-planning stage.
Looking to the future, the Group is focussing on identifying, sourcing, contracting for and funding sites that will have the ability to be consolidated into the Group accounts in the future. The Rockpool investee companies, where we have a carried interest of 45%, are not able to be consolidated within the Group’s accounts but provide a potentially valuable backbone to the business of the Group. The Company also has an on-going focus on delivering sites to the Rockpool funded investee companies.
Significant Events During the Period Under Review
The Group has reduced losses for the period under review substantially in comparison with the same period last year and has much improved loss per share figures as a result of management revenues now being generated from seven sites. Going forward, project funding will be delivered through subsidiary companies that will have the ability to be consolidated into the Group’s accounts.
The Group continues to focus on the development, construction and operation of flexible energy generation and has now achieved funding and management agreements with seven investee companies funded by Rockpool.
In conclusion, the Group has had a successful first half and I would like to thank the fellow directors for their considerable efforts and support, together with our advisors and consultants, who assist us in developing our pipeline to fruition.
Outlook and Strategy
The backdrop of future energy requirements in the country and potential core revenue streams of the Company’s flexible generation business continue to grow significantly beyond initial projections further validating the strategic opportunity outlined by the Company on Re-Admission to AIM
The Company is in the enviable position to be assessing a number of both unsolicited and solicited proposals of non-share dilutive funding, joint venture opportunities and potential sites well beyond our initial focus and plans. Management continues its commitment, within its existing business plan, to minimising shareholder dilution.
As we move into 2016 the Directors view the year ahead with considerable confidence and look forward to continuing to build upon the strong operational and financial platform that has and continues to be established.
