Plutus PowerGen PLC EIS Funding Update (1760D)

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RNS Number : 1760D

Plutus PowerGen PLC

22 October 2015

Plutus PowerGen plc / Ticker: PPG / Index: AIM

22 October 2015

Plutus PowerGen plc ('PPG' or 'the Company')

EIS Funding Update

Plutus PowerGen plc, the flexible standby power generation developer and operator in the UK, notes today's announcement by the UK Government at a Public Bill Committee which outlines amendments to the Enterprise Investment Scheme ('EIS') funding to exclude activities that involve the provision of reserve power capacity and generation, for example under a Capacity Market agreement or Short Term Operating Reserve contract. The UK Government notes that such activities are generally asset-backed and benefit from a guaranteed income stream and mainstream financing, which removes the need for tax-advantaged investment. This change will apply to investments made on or after 30 November 2015. This is not retrospective and has no effect on the companies with which Plutus has signed management contracts and which are developing a total of 140 MW of flexible energy generation projects.

To date, PPG has entered into management contracts with seven flexible standby power generation companies in the UK which have received a total of GBP25 million EIS qualifying equity from Rockpool Investments LLP ('Rockpool'). These are managed by PPG and the Company holds a 45% equity interest in each. Rockpool has indicated that it will continue to fund further companies up to 30 November 2015.

Plutus' Directors have long been aware of the likely Government legislation to draw a close to EIS funding for its flexible power projects and as per previous news releases, it has secured alternative funding arrangements and continues to assess other funding proposals, all of which provide Plutus with an increased equity participation in new flexible generation sites. As such the directors do not believe that this latest amendment to EIS funding will adversely affect the business.

Phil Stephens, CEO, commented, "the Company will be able to accelerate the number of projects funded outside EIS which will also enable PPG to bring these projects onto the balance sheet of the Company more quickly."

**ENDS**

For further information, please visit, or contact:

 
 Charles Tatnell   Plutus PowerGen plc   Tel: +44 (0) 
                                          20 8720 6562 
----------------  --------------------  -------------- 
 Phil Stephens     Plutus PowerGen plc   Tel: +44 (0) 
                                          20 8720 6562 
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 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 
----------------  --------------------  -------------- 
 Felicity          St Brides Partners    Tel: +44 (0) 
  Winkles                                 20 7236 1177 
----------------  --------------------  -------------- 
 Elisabeth         St Brides Partners    Tel: +44 (0) 
  Cowell                                  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 over the next three years and currently has a project pipeline of potential development sites with over 500MW 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

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October 22, 2015 11:30 ET (15:30 GMT)