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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Active Energy Group Plc | LSE:AEG | London | Ordinary Share | GB00BPG7NS80 | ORD GBP0.0035 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.01 | -2.44% | 0.40 | 0.35 | 0.45 | 0.40 | 0.40 | 0.40 | 15,840 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Services, Nec | 0 | -1.34M | -0.0083 | -0.48 | 647.45k |
From Apr 2019 to Apr 2024
TIDMAEG
RNS Number : 5318N
Active Energy Group PLC
25 September 2019
Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy
25 September 2019
Active Energy Group Plc
('Active Energy', 'AEG', the 'Company' or the 'Group')
Interim Results
Active Energy, the London quoted international biomass based renewable energy business, announces its interim results for the six months to 30 June 2019.
Highlights
-- Strategic focus on the production and commercialisation of CoalSwitch(TM) in sufficient quantity to accommodate anticipated customer demand
-- Acquired fully permitted large-scale commercial hub located in Lumberton, USA, to provide a centre to develop an integrated Forest-to-Energy supply chain ("Lumberton" or the "Lumberton Site")
o Located in the heart of North America's lumber production region close to the Eastern Seaboard of the United States
o Adjacent to the power plant facility at Lumberton owned by JV partner, Georgia Renewable Power LLC
-- Awarded US$500,000 building re-use and renovation grant in April 2019 from the North Carolina Rural Infrastructure Authority
-- Reconstructing 5 tonne per hour ("tph'") CoalSwitch(TM) plant utilising existing equipment and facilities from legacy site in Utah
o Plant commissioning on track for the final quarter of 2019
o Intention to scale up to larger production capacities
-- Secured feedstock supplies from local partners to ensure that Lumberton can be supplied with up to 800,000 tonnes per annum for the next five years
-- Continue to make progress in developing alternative biomass pellets utilising CoalSwitch(TM) in combination with other feedstock options ranging from chicken litter to miscanthus grass
-- Received interest from several potential US commercial customers for CoalSwitch(TM) and biomass black pellets - testing programme being established to accommodate customer requests
-- Lumberton becoming a source of revenues through ancillary activities at the site
o Lease agreementsalready signed with Tencata Protective Fabrics and Renewable Logistics Systems ("RLS"), providing immediate revenue
-- During 2019, AEG has raised GBP6.083 million (before expenses) via the further subscription of convertible loan notes by both new and existing investors to execute the Company's growth strategy. Of this, GBP3.96 million closed prior to the 30 June 2019 and is therefore reflected in the interim financial results.
Chief Executive's Statement
AEG's focus during the period and subsequently has centred on the development of the Company's large-scale commercial hub at Lumberton, North Carolina in the United States for all corporate activities. This strategic asset facilitates the commercial rollout of CoalSwitch(TM) and new second generation biomass pellets, as well asthe development of complementary lumber related activities at one site. It also allows AEG, for the first time, to assemble on going technical data, which enables commercial partners,including potential licensees, the opportunity to assess the new biomass technologies.
In essence, Lumberton provides the centre the Company has soughtin order to be able to develop an integrated Forest-to-Energy supply chain and enable AEG to become a leading renewable energy company, specialising in second generation biomass products.
Acquiring the 151-acre freehold site with 415,000 square feet of buildings at Lumbertonin March 2019 was a vital step in AEG's development. The Directors believe Lumberton holds several strategic advantages, including its location in the heart of North America's lumber production region and proximity to the Eastern Seaboard of the United States, with its established facilities and proximity to export routes for both biomass and lumber products to Europe and South East Asia. The Lumberton Site has the additional benefit of being adjacent to the power plant facilityowned by our JV partner, Georgia Renewable Power LLC. The fact that Lumberton was already permitted for operations and contained established infrastructure including water treatment facilities, an analysis lab, offices and IT hardware was a further bonus, as was the receipt of a US$500,000 building re-use and renovation grant in April 2019 from the North Carolina Rural Infrastructure Authority.
Our immediate strategic focus is the production and commercialisation of CoalSwitch(TM) in sufficient quantity to accommodate anticipated customer demand. AEG is working with a series of engineering partners, including Absolute Welding & Consulting as our local partner to reconstruct the 5 tph plant utilising existing equipment and facilities from our legacy site in Utah. In addition, AEG is working with Andritz on plans to scale up the production facilities to larger production capacities. All the equipment has been transferred from Utah to Lumberton. After recent meetings with the Air Quality division of the North Carolina Department of Environment and Natural Resources ("NCDENR"), it has become evident that there is a requirement to modify the existing air permits at Lumberton. As such, AEG is currently working with the NCDENR to finalise both of these permits along with the relevant construction permits. Construction is expected to proceed in October 2019 and despite the small modifications, commissioning of the 5 tph plant remains on track for the final quarter of 2019.
At Lumberton, AEG has already secured feedstock supplies from local partners and ensured that the facility can be supplied with up to 800,000 tonnes per annum for the next five years. Management believe this will be sufficient to accommodate the planned production capacity increases. AEG's current focus is on securing sales and offtake agreements, both in the US and internationally, planning for the expansion of the processing plant facilities up to 50tph and the development of further ancillary products, where CoalSwitch(TM) is blended with additional materials to produce a biomass-based black pellet fuels.
In line with this, AEG continues to make progress in developing alternative biomass pellets utilising CoalSwitch(TM) in combination with other feedstock options, ranging from chicken litter to miscanthus grass. These materials create biomass renewable fuels and there is significant interest from commercial partners for these fuels utilising AEG's steam explosion pellet technologies. AEG anticipates that these developments have the potential to increase the range of products available for sale along with overall levels of business activity.
Encouragingly, we have already received interest from several potential US commercial customers for CoalSwitch(TM) and biomass black pellets. Over and above opportunities presented in North America, Europe remains a natural market for CoalSwitch(TM) and biomass black pellets, especially as new legislation aimed at limiting the use of coal power is introduced. Prospective customers have ordered and are receiving test samples and a testing programme, producing smaller samples of biomass fuels, is being established to accommodate these requests. Customers include utilities, including Rocky Mountain Power in Utah and a Europe-based biomass trader, as well as agricultural and forestry companies and complementary renewable technology businesses.
In addition to Lumberton being fundamental to our own growth story, it has also become a source of revenue through ancillary activities at the site. In the period, we signed lease agreements with Tencata Protective Fabrics and Renewable Logistics Systems providing an immediate source of revenue. We continue to look for further ways to capitalise on other opportunities from the site including rental income, saw logging activities and partnerships with complementary green technology companiesthat wish to work with AEG on product development and their applications.
In tandem with the progress in Lumberton, AEG is refocussing its attention back to the original opportunities in Newfoundland and Labrador. Cutting Timber Permits were awarded in November 2018 and AEG is assessing how to combine these with introducing the CoalSwitch(TM) technologies into the Province in the coming months. AEG remains in discussions with local partners regarding these future projects.
In Poland, the Company's joint venture project with Cobant Sp. z.o.o. ('Cobant'), a Polish research, development and environmental waste coal recovery company active in the land reclamation, environmental services and energy sectors, was unsuccessful in its application for a grant to receive EU funding in Q1 2019. The Company has decided to focus on its Lumberton activities to provide CoalSwitch(TM) product in order to assist Cobant in its future activities.
Financial Review
The overall loss for the six months ended 30 June 2019 was US$1,830,027 (2018: US$1,593,728). The key components are as follows:
-- Revenue from contracts with customers were US$99,830 (2018: US$Nil) relating to engineering consultancy services.
-- Administration costs were US$1,642,416 (2018: US$1,682,660) for the first six months of 2019. Of this US$238,743 (2017: US$462,064) relates to non-cash share-based payments expenses, as optimisation of these costs was offset by loss on disposal of certain items of plant and equipment.
-- Finance costs were US$290,387 (2018: US$585,178) reflecting ongoing servicing of the Group's Convertible Loan Notes, offset by interest capitalised to tangible and intangible fixed assets and foreign exchange gains.
-- Active Energy has recognised an income tax credit on continuing operations of US$2,946 (2018: US$1,222,946). The prior year credit reflects research and development tax refunds associated with development of the Company's PeatSwitch(TM) and CoalSwitch(TM) products and processes.
-- Loss from discontinued operations was US$Nil (2018: US$548,836). The prior year charge reflects close out of contractual matters associated with Active Energy's former Ukrainian wood chip operations. No further costs are expected to be incurred on these operations,which ceased in 2017.
In addition, during the first half of 2019 Active Energy invested US$3,406,213 in order to acquire the new Lumberton site. Following an independent assessment of this asset, the value on the statement of financial position was subsequently revised to US$4million. In addition AEG invested US$279,488 (2018:US$1,622,908) in its to the CoalSwitch(TM)/PeatSwitch activities and capital expenditure relating to the Forestry and natural resource segment was US$111,638 (2018: US$227,129).
Finally, during the first half of 2019, the Company successfully completed a series of fund raising of GBP3.96 million before expenses (or US$5.02 million) through the issue of convertible loan notes ('CLNs') to new and existing investors. A further GBP2.12 million was subscribed for following the end of the reporting period.
Outlook
In summary, the team has made significant progress. We have acquired the Lumberton Site and have a defined plan for the commercialisation of CoalSwitch(TM) contemporaneously with additional products. Our ambition remains for AEG to become a profitable producer of second-generation biomass fuels, focusing on the pellet market. Our production designs are modular, and we are designing efficient operations that are scalable to increase manufacturing volumes to potential market demands. With first production imminent,the Companyis looking forward to the future with increasing confidence.
I would like to thank all those involved for their hard work and to all shareholders and bondholders for their continued support as we look to build on firm foundations and build a global business that rewards all AEG's stakeholders.
Michael Rowan
Chief Executive Officer
25 September 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHSED 30 JUNE 2019
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Premium
30 June 30 June 31 December
2019 2018 2018
(Unaudited) (Unaudited) (Audited)
US$ US$ US$
Note
REVENUE FROM CONTRACTS WITH CUSTOMERS 2 99,830 - 195,000
GROSS PROFIT 99,830 - 195,000
Impairment charge - - (950,700)
Administrative expenses (1,642,416) (1,682,660) (2,982,866)
------------ ------------ ------------
OPERATING LOSS (1,542,586) (1,682,660) (3,738,566)
Finance costs (290,387) (585,178) (406,929)
------------ ------------ ------------
(Loss) from continuing operations (1,832,973) (2,267,838) (4,145,495)
Income tax credit on continuing
operations 2,946 1,222,946 1,346,010
(Loss)/profit from discontinued
operations - (548,836) (386,994)
------------ ------------ ------------
LOSS FOR THE PERIOD 2 (1,830,027) (1,593,728) (3,186,479)
(Profit) attributable to Non--controlling
Interest - (165,953) (69,625)
------------ ------------ ------------
Loss attributable to the Parent
Company (1,830,027) (1,759,681) (3,256,104)
OTHER COMPREHENSIVE INCOME/(EXPENSE):
Items that may be subsequently
reclassified to profit or loss
Exchange differences on translation
of operations (6,129) (73,195) (278,237)
Revaluation of land and buildings 572,251 - -
Revaluation of assets held for
resale (4,070) - (34,658)
------------ ------------ ------------
Total other comprehensive expense 562,052 (73,195) (312,895)
------------ ------------ ------------
TOTAL COMPREHENSIVE LOSS FOR THE
PERIOD (1,267,975) (1,832,876) (3,568,999)
============ ============ ============
(Loss) per share (US cent) - continuing
operations 3 (0.15) (0.12) (0.28)
------------ ------------ ------------
(Loss)/profit per share (US cent)
- discontinued operations 3 - (0.06) (0.04)
------------ ------------ ------------
Basic and Diluted (loss) per share
(US cent) 3 (0.15) (0.18) (0.32)
------------ ------------ ------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
30 June 30 June
2019 2018 31 December
US$ US$ 2018
Note (Unaudited) (Unaudited) US$
NON-CURRENT ASSETS
Intangible assets 8,721,017 8,560,736 8,459,850
Property, plant and equipment 4 8,677,071 4,988,441 5,375,888
Available for sale financial assets 748,145 715,663 752,215
18,146,233 14,264,840 14,587,953
------------- ------------- -------------
CURRENT ASSETS
Inventory - 20,349 -
Trade and other receivables 1,371,271 2,651,672 1,704,410
Cash and cash equivalents 661,533 261,421 298,768
------------- -------------
2,032,804 2,933,442 2,003,178
------------- ------------- -------------
TOTAL ASSETS 20,179,037 17,198,282 16,591,131
============= ============= =============
CURRENT LIABILITIES
Trade and other payables 2,538,992 4,143,720 2,851,693
Loans and borrowings 1,110,731 565,235 1,327,707
Finance leases falling due in less - 140,607 -
than one year
3,649,723 4,849,562 4,179,400
------------- ------------- -------------
NON-CURRENT LIABILITIES
Deferred income tax liabilities 238,639 379,684 241,585
Finance leases falling due in more - 154,993 -
than one year
Loans and borrowings 5 16,198,842 12,068,313 11,672,738
------------- -------------
16,437,481 12,602,990 11,914,323
------------- ------------- -------------
TOTAL LIABILITIES 20,087,204 17,452,552 16,093,723
------------- ------------- -------------
NET ASSETS 91,833 (254,270) 497,408
============= ============= =============
EQUITY ATTRIBUTABLE TO OWNERS OF
THE PARENT
Share capital 6 17,265,379 15,615,160 17,265,379
Share premium 17,303,159 17,289,527 17,303,159
Merger reserve 2,350,175 2,350,175 2,350,175
Foreign exchange reserve (215,014) 34,885 (204,815)
Own shares held reserve (268,442) (779,222) (268,442)
Convertible debt / warrant reserve 3,344,590 2,744,801 2,720,933
Revaluation reserve 572,251 - -
Retained earnings (39,902,222) (37,247,881) (38,310,938)
Non--controlling Interest (358,043) (261,715) (358,043)
------------- ------------- -------------
TOTAL EQUITY 91,833 (254,270) 497,408
============= ============= =============
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS TO 30 JUNE 2019
31 December
Note 30 June 2019 30 June 2018 2018
US$ US$ US$
Cash (outflow)/inflow from
operations 7 (615,419) 448,869 (1,515,299)
Income tax paid - - -
------------- ------------- ------------
Net cash (outflow)/inflow
from operating activities (615,419) 448,869 (1,515,299)
Cash flows from investing
activities
Purchase of intangible assets (89,744) (528,207) (1,108,770)
Purchase of property, plant
and equipment (3,414,465) (1,321,830) (1,777,388)
Sale of property, plant and
equipment 402,527 151,983 123,222
------------- ------------- ------------
Net cash outflow from investing
activities (3,101,682) (1,698,054) (2,762,936)
Cash flows from financing
activities
Issue of equity share capital,
net of share issue costs - 1,320,288 3,299,248
Loans raised 5,019,140 1,024,590 2,350,445
Unsecured loans repaid (216,976) - -
Finance expenses (723,819) (984,049) (1,193,316)
------------- ------------- ------------
Net cash inflow from financing
activities 4,078,345 1,360,829 4,456,377
------------- ------------- ------------
Net increase/(decrease) in
cash and cash equivalents 361,244 111,644 178,142
Cash and cash equivalents
at beginning of the period 298,768 142,049 142,049
Exchange (losses)/gains on
cash and cash equivalents 1,521 7,728 (21,423)
------------- ------------- ------------
Cash and cash equivalents
at end of the period 661,533 261,421 298,768
============= ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS TO 30 JUNE 2019
Own Convertible Non-controlling
Foreign shares debt and Interest
Share Share Merger exchange held warrant Revaluation Retained Total
capital premium reserve reserve reserve reserve reserve earnings equity
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
At 31 December
2017 14,493,246 14,740,478 2,350,175 108,080 (779,222) 2,930,209 - (35,950,264) (427,668) (2,534,966)
Loss for the
period - - - - - - - (1,593,728) - (1,593,728)
Other
comprehensive
income - - - (73,195) - - - - - (73,195)
CLN
conversions 681,818 1,668,857 - - (315,248) - - - 2,035,427
Issue of share
capital 440,096 880,192 - - - - - - - 1,320,288
Embedded
derivative
on CLN issue - - - - - 129,840 - - - 129,840
Share based
payments - - - - - - - 462,064 - 462,064
Minority
Interest - - - - - - - (165,953) 165,953 -
At 30 June
2018 15,615,160 17,289,527 2,350,175 34,885 (779,222) 2,744,801 - (37,247,881) (261,715) (254,270)
=========== =========== ========== ========= ========== ============ ============ ============= ================ ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS TO 30 June 2019 (continued)
Own Convertible Non-controlling
Foreign shares debt and Interest
Share Share Merger exchange held warrant Revaluation Retained Total
capital premium reserve reserve reserve reserve reserve earnings equity
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
At 31 December
2017 14,493,246 14,740,478 2,350,175 108,080 (779,222) 2,930,209 - (35,950,264) (427,668) (2,534,966)
Loss for the
period - - - - - - - (3,186,479) - (3,186,479)
Other
comprehensive
income - - - (312,895) - - - - (312,895)
CLN
conversions 734,267 1,812,079 - - (339,081) - - - 2,207,265
Issue of share
capital 2,548,646 750,602 - - - - - - - 3,299,248
Embedded
derivative
on CLN issue - - - - - 129,805 - - - 129,805
Share based
payments - - - - - - - 895,430 - 895,430
Cancellation
of
Treasury
shares (510,780) - - - 510,780 - - - - -
Minority
Interest - - - - - - - (69,625) 69,625 -
At 31 December
2018 17,265,379 17,303,159 2,350,175 (204,815) (268,442) 2,720,933 - (38,310,938) (358,043) 497,408
Loss for the
period - - - - - - - (1,830,027) - (1,830,027)
Other
comprehensive
income - - - (10,199) - - - - - (10,199)
Revaluation of
land
& buildings - - - - - - 572,251 - - 572,251
Embedded
derivative
on CLN issue - - - - - 623,657 - - - 623,657
Share based
payments - - - - - - - 238,743 - 238,743
At 30 June
2019 17,265,379 17,303,159 2,350,175 (215,014) (268,442) 3,344,590 572,251 (39,902,222) (358,043) 91,833
=========== =========== ========== ========== ========== ============ ============ ============= ================ ============
NOTES FORMING PART OF THE INTERIM REPORT
1. GENERAL INFORMATION AND BASIS OF PRESENTATION
General information
Active Energy Group plc is a company incorporated in England and Wales and quoted on the AIM market of the London Stock Exchange. The address of the registered office is 27-28 Eastcastle Street, London, W1W 8DH. The Group's principal activities are the development and commercialisation of cutting-edge renewable energy and soil replacement products; and the development of timber resources.
Basis of preparation
The financial information in these interim results is that of the holding company and all of its subsidiaries. It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2018 and which will form the basis of the 2019 financial statements, except for a number of new and amended standards which have become effective since the beginning of the previous financial year. These new and amended standards, including the implementation of IFRS16, are not expected to materially affect the Group.
The financial information presented herein does not constitute full statutory accounts under Section 434 of the Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 December 2018 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies. The Group's Independent Auditor's report on those accounts was unqualified and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The auditor's report on those accounts includeda reference to the going concern assumptions detailed in the notes to those accounts, whereby the auditor drew attention to this note by way of emphasis of matter. The auditor did not qualify their report in respect of this matter. The financial information for the half years ended 30 June 2018 and 30 June 2019 is unaudited and the twelve months to 31 December 2018 is audited.
These interim accounts have been prepared in accordance with IAS 34.
Going concern
Historically, the Group's primary revenue generating business segment was the Ukrainian wood fibre business. This was discontinued during 2017 and since then the group has focused its efforts on the CoalSwitch(TM) business segment. This business segment had not generated significant revenues at the date of signing these financial statements.
The Directors have considered the cash requirements of the business for the following 12 months. As part of this process, they have taken into account existing liabilities, along with detailed operating cash flow requirements. The projections prepared include ongoing running costs of the Group and committed expenditure at the date of publication of this interim report.
The Directors note that the current operational plans involve commencement of production and sale of CoalSwitch and other biomass products in the final quarter of 2019. In addition the Directors have identified a variety of potential sources of funds including issue of additional equity and/or debt, tax credits, rental income, government subsidies and optimisation of existing financing arrangements.
Taking this into account and following a detailed review by the Directors of the Group's cash flow requirements, the directors believe that the Group will have sufficient cash resources to continue to trade for a period of at least 12 months from the date of this report. Consequently, the financial statements have been prepared on a going concern basis.
However, as of the date of signing these financial statements, production and sale of CoalSwitch has not commenced and not all of the potential sources of funds have been finalised and therefore there can be no guarantee that sufficient funds will be received to secure the future of the group. These circumstances indicate the existence of a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern.
Basis of consolidation
The financial information incorporates the results of AEG plc and entities controlled by the AEG plc (its subsidiaries). Control is achieved when the Group has power over relevant activities, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The consolidated interim financial statements present the financial results of AEG plc and its subsidiaries (the Group) as if they formed a single entity. Where necessary, adjustments are made to the results 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.
2. SEGMENTALINFORMATION
The Group reports two operating continuing business segments:
-- "Forestry & Natural Resources" denotes the Group's initiatives to secure ownership of the entire timber supply chain from forest to finished product
-- "CoalSwitch(TM)/PeatSwitch"denotes the Group's renewable wood pellet and soil replacement business.
Revenues and costs associated with the Ukrainian Wood Fibre business have been reclassified as discontinued operations.
Factors that management used to identify the Group's reportable segments
The Group's reportable segments are strategic business units that offer different products. During the business development stage they are managed separately because each business operates in different markets and locations. In future these business segments may be combined into single operations and reporting structures will be revisited accordingly. Profits and losses associated with the Ukrainian wood fibre business were reclassified as discontinuing in2017 and have therefore be excluded from the analysis below.
For the 6 months to 30 Forestry
June 2019 (Unaudited) & Natural CoalSwitch(TM)/
Resources PeatSwitch Total
US$ US$ US$
Revenue from external customers - 99,830 99,830
Operating segment profit/(loss) (14,731) (679,377) (694,108)
Finance costs - - -
----------- ---------------- ------------
Segment profit/(loss) before
tax (14,731) (679,377) (694,108)
Tax credit / (charge) 4,484 - 4,484
----------- ---------------- ------------
Segment profit/(loss) for
the period (10,247) (679,377) (689,624)
=========== ================ ============
For the 6 months to 30 Forestry
June 2018 (Unaudited) & Natural CoalSwitch(TM)/
Resources PeatSwitch Total
US$ US$ US$
Revenue from external customers - - -
Operating segment profit/(loss) (22,422) (112,110) (134,532)
Finance costs - - -
----------- ---------------- ------------
Segment profit/(loss) before
tax (22,422) (112,110) (134,532)
Tax credit / (charge) 4,484 1,218,462 1,222,946
----------- ---------------- ------------
Segment profit/(loss) for
the period (17,938) 1,106,352 1,088,414
=========== ================ ============
For the 12 months to 31 Forestry
December 2018 (Audited) & Natural CoalSwitch(TM)/
Resources PeatSwitch Total
US$ US$ US$
Revenue from external customers - 195,000 195,000
Operating segment profit/(loss) (995,545) (407,323) (1,402,868)
Finance costs - - -
----------- ---------------- ------------
Segment profit/(loss) before
tax (995,545) (407,323) (1,402,868)
Tax credit / (charge) 142,584 1,203,426 1,346,010
----------- ---------------- ------------
Segment profit/(loss) for
the period (852,961) 796,103 (56,858)
=========== ================ ============
CoalSwitch(TM)/ PeatSwitch revenues in 2019 relate to engineering consultancy services.
Capital expenditure relating to the CoalSwitch(TM)/PeatSwitch segment was US$3,685,701(2018:US$1,622,908) which primarily related the acquisition of the Lumberton Site. Capital expenditure relating to the Forestry and natural resource segmentwas US$111,638 (2018: US$227,129).
Reconciliation of reportable segment profit or loss, assets and liabilities to the Group's corresponding amountsare as follows:
6 months 6 months
ended 30 ended 30 Year ended
June 2019 June 2018 31 December
(unaudited) (unaudited) 2018 (audited)
US$ US$ US$
Total profit/(loss) from reportable
segments (689,624) 1,088,414 (56,858)
Unallocated amount - corporate
expenses (611,273) (1,086,064) (1,440,268)
Unallocated amount - finance
expense (290,387) (585,178) (406,929)
Share based payments (238,743) (462,064) (895,430)
Discontinued operations - (548,836) (386,994)
------------- ------------- ----------------
Loss for the period (1,830,027) (1,593,728) (3,186,479)
============= ============= ================
3. LOSS PER SHARE
Weighted average ordinary shares
in issue 1,201,906,951 965,318,148 1,013,575,699
(Loss) from continuing operations (1,830,027) (1,210,845) (2,869,110)
-------------- ------------ --------------
(Loss)/profit per share (US
cent) - discontinued operations - (548,836) (386,994)
-------------- ------------ --------------
Loss attributable to the Parent
Company (1,830,027) (1,759,681) (3,256,104)
-------------- ------------ --------------
(Loss) per share (US cent)
- continuing operations (0.15) (0.12) (0.28)
-------------- ------------ --------------
(Loss)/profit per share (US
cent) - discontinued operations - (0.06) (0.04)
-------------- ------------ --------------
Basic and Diluted (loss) per
share (US cent) (0.15) (0.18) (0.32)
-------------- ------------ --------------
4. ACQUISITION OF LAND & BUILDINGS
On 27 March 2019 the Company confirmed that it had completed the acquisition of an industrial site in Lumberton, North Carolina and that the site will become the new base for all Active Energy's CoalSwitch(TM) operations in the US.
The total consideration including fees and ancillary costs was US$3.41 million. Following completion of the acquisition and prior to the publication of this report, AEG Plc commissioned an independent firm of Certified Real Estate Valuers, based in North Carolina, to appraise the value of the Lumberton site. The Real Estate Valuers estimated the value of the site to be US$4.0million.
As a result, and in line with the revaluation model provisions of IAS16, the Company adjusted the value of the Lumberton site on the statement of financial position to reflect this valuation.
5. CONVERTIBLE LOAN NOTES
During the first half of 2019 the Company successfully completed a series of fund raising of GBP3.96 million before expenses (or $5.02 million) through the issue of convertible loan notes ('CLNs') to new and existing investors. The CLNs have a maturity date of 14 March 2022 and have been listed on the International Securities Exchange. The CLN can be converted into ordinary shares of AEG plc, at any time prior to the Maturity Date, at a strike price of1p. The fair value of the liability component at inception was GBP0.49 million (or US$0.62 million). This was calculated using a market interest rate for an equivalent instrument without conversion option. The CLN has a coupon rate of 8% and the imputed interest rate applied was 12%.
6. SHARE CAPITAL
Ordinary shares of 1p each Allotted, Number US$
called up and fully paid
(Unaudited)
At 1 January 2019 and 30 June 2019 1,201,906,951 17,265,379
============== ===========
(Unaudited) Number US$
At 1 January 2018 983,071,276 14,493,246
Shares issued for cash 33,333,333 440,096
Conversion of CLN 49,633,228 681,818
-------------- -----------
At 30 June 2018 1,066,037,837 15,615,160
============== ===========
(Audited) Number US$
At 1 January 2018 983,071,276 14,493,246
Shares issued for cash 198,333,333 2,548,646
Conversion of CLN 53,715,183 734,267
Cancellation of treasury shares (33,212,841) (510,780)
-------------- -----------
As at 31 December 2018 1,201,906,951 17,265,379
============== ===========
7. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH OUTFLOWS FROM OPERATINGACTIVITIES
31 December
30 June 2019 30 June 2018 2018
US$ US$ US$
Loss for the period (1,830,027) (1,593,728) (3,186,479)
Adjustments for:
Share based payment expense 238,743 462,064 895,430
Depreciation 18,000 - -
Amortisation of intangibles 14,731 22,418 44,845
Impairment of property
plant & equipment - - 65,000
Impairment of intangible
assets - - 950,700
Loss/ (profit) on disposal
of PP&E 366,507 (26,983) 1,778
Revaluation of investments
for resale - - 34,658
Foreign currency translations (53,882) 373,895 (966,788)
Finance expenses 613,017 585,178 1,047,283
Income tax (2,946) (4,484) (142,584)
------------- ------------- ------------
(635,857) (181,640) (1,256,157)
(Increase)/decrease in
inventories - - 20,349
(Increase)/decrease in
trade and other receivables 333,139 (2,133,770) (1,186,508)
(Decrease)/increase in
trade and other payables (312,701) 2,764,279 907,017
Net cash outflow from
operating activities (615,419) 448,869 (1,515,299)
============= ============= ============
8. COPIES OF THE INTERIM REPORT
Copies of the interim report will be made available on the Company's website at www.active-energy.com.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Enquiries& Further Information:
Website LinkedIn
www.aegplc.com www.linkedin.com/company/activeenergy
--------------------------------------
Enquiries
Active Energy Group Michael Rowan
Plc Chief Executive Officer (Active
Energy)
Antonio Esposito
Chief Operations Officer
(Active Energy)
--------------------------------- ----------------------------
SP Angel Corporate David Hignell / Lindsay Mair Office: +44 (0)20
Finance LLP / Jamie Spotswood 3470 0470
Nominated Adviser
and Broker
--------------------------------- ----------------------------
St Brides Partners Melissa Hancock / Gaby Jenner info@stbridespartners.co.uk
Financial PR Adviser Office: +44 (0) 20
7236 1177
--------------------------------- ----------------------------
About Active Energy Group:
Active Energy Group plc is a London listed (AIM: AEG) renewable energy company that has developed a proprietary technology which transforms low-cost biomass material into high-value green fuels. Its patented product CoalSwitch(TM) is the world's only drop-in biomass fuel that can be mixed at any ratio with coal or completely replace coal in existing coal-fired power stations without requiring plant modification.
Active Energy Group's immediate strategic focus is the production and commercialisation of CoalSwitch(TM) and SuperFuel(TM), a low emission CoalSwitch(TM) blend that utilises waste coal fines.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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