Renewable Power & Light Share Discussion Threads

[omellete] 24/9/2007 12:36

Pezza - Energem got a really good deal in Africa. It is far cheaper. I guess they are trying for something similar.

[pezza2] 24/9/2007 12:24

"Since early July, our investigations and due diligence have, primarily, been focused on West Africa. Opportunities reviewed in South East Asia have so far proved too costly. We have also made preliminary investigations in Central and Latin America, which we continue to pursue."

So they have investigated South East Asia as a source for Palm Oil but have decided its too costly.

I'm not an expert by any means so my question would be, too costly in what way, shipment ? I would guess that the price of palm oil, is about the same anywhere, would I be correct ?

They should stay well away from West Africa, they don't have the intelligence to deal with this continent and could you imagine the effect on the share price down to regional unrest.

So the best bet would appear to be South America.

I bought a few after my discussions with the Malaysian guy, who assured me it wouldn't be a problem getting hold of Palm Oil. I decided from there that RPL would likley have a supply by now if it doesn't appear to be a problem but by the sounds of the rns, they do appear to still be a long way off.

However, with a small cash burn, this could turn out nicley in the long term but without knowing what prices they can still run a profitable business, i'm going to probably sell my small holding soon.

But good luck all.

[robin_of_loxley] 24/9/2007 11:47

well may as well pop the interims on thread for posterity:

RNS Number:3239E
Renewable Power and Light Plc
24 September 2007



RENEWABLE POWER & LIGHT plc

("RPL" or "the Company")


INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007


CHAIRMAN'S STATEMENT

Overview

RPL was established in 2006 as an independent producer of green or renewable
power. The progress the Company had been making toward this objective has been
overshadowed by the announcement on 5 July 2007 that Safari Group Inc.
("Safari"), RPL's principal palm oil supplier, would be unable to perform under
the existing terms of its contract. As a result, the Company will be unable to
produce green power according to its original plan.

Since the beginning of July, management's primary objective has been to advance
the investigation of alternative feedstock supplies. In addition, the Company
has been pursuing legal action against Safari.

Financials

At this stage of the Company's development, RPL was not anticipating the receipt
of revenue from renewable power sales at either its Massena New York or Elmwood
Park, New Jersey, facilities. Revenue in the first half did, however, increase
to US$1.75 million (2006: US$0), as a result of the sale of peak period
electricity from Elmwood Park and the receipt of capacity payments from both
Elmwood Park and Massena. The Company receives capacity payments as a matter of
course to ensure that, if required, RPL is in a position to produce and deliver
power to the local grid. The operating loss was US$7.1 million (2006: US$0.2
million), primarily as a result of our administrative costs. This led to a loss
before tax of US$6.27 million (2006: US$0.2 million).

The Company has a strong balance sheet with total assets of US$93 million as at
30 June 2007 (as at 30 June 2006: US$2.7m). Net cash at the half year was
US$29.8 million (cash and cash equivalents) (2006: US$315,000). An additional
US$20.1 million of cash was transferred to the Company in mid July as part of a
secondary placement. The Company is tailoring its expenditure on the biodiesel
refinery construction programme to match feedstock availability.


Operating review

Palm oil supply

On 5 July 2007, RPL requested the temporary suspension of trading in its shares
following notification that Safari, the Company's principal supplier of palm oil
feedstock, would be unable to supply the oil at the contractually agreed price.
Safari cited the significant increase in the price of palm oil as the reason for
its inability to perform under the terms of its contract with RPL.

The Company immediately commenced legal action against Safari, two related
entities and one of Safari's directors for breach of contract and fraudulent
misrepresentation. In addition, on 11 July 2007, RPL successfully obtained a
temporary restraining order preventing any of the defendants from transferring
any palm oil to third parties. Since this time, Wilkie, Farr & Gallagher LLP,
RPL's solicitors in this case, have vigourously pursued all legal avenues to
either enforce performance under the contract or seek compensation. On the basis
of legal advice, the Board has decided it is not in shareholders' best interest
to pursue legal action any further.

Alternative feedstocks

Prior to Safari's breach of contract, the Company had already started to
identify potential source countries for alternative feedstock supplies. Since
early July, our investigations and due diligence have, primarily, been focused
on West Africa. Opportunities reviewed in South East Asia have so far proved too
costly. We have also made preliminary investigations in Central and Latin
America, which we continue to pursue.

Over time, we intend to establish a portfolio of feedstock types sourced from
different countries and with varying yield and growth profiles. In order to
manage our upstream feedstock sourcing operations, we announced in July, that we
would recruit an experienced senior manager. The search for this individual is
underway and an update will be provided as soon as appropriate.


Board and Senior Management

On 21 September 2007, David Lewis, President and Chief Executive Officer, left
the Board and the Company. All agreements related to his employment have been
terminated and a process to select a new Chief Executive Officer has been
initiated by the Board. Dominic Colvin, Senior Vice President, Business
Development also left the Company on 21 September 2007.

Victor Fryling, non-executive Director, has agreed to become interim President
and Chief Executive Officer. Mr. Fryling has an extensive 31 year career in the
energy business. Until 2000, he was President and Chief Operating Officer of CMS
Energy, a US$15 billion diversified energy company. In 2001, he became Chairman
of the US Division of Renewable Energy Systems, the US wind farm business of the
McAlpine family. Under his guidance, the US operations of RES have grown
significantly, to become one of the most successful renewable energy operations
in North America.

Outlook

The loss of our feedstock supply in July has impacted the scheduled
implementation of the Company's business plan. Notwithstanding this, the Company
will continue to prioritise the review of all potential feedstock supply
opportunities, with a view to securing an appropriate source of feedstock. We
will also prioritise the recruitment of both a permanent President and Chief
Executive Officer and Senior Manager of sourcing operations.


Enquiries:

Hudson Sandler [phone]

James White





Consolidated Income Statement (unaudited)

Renewable Power & Light plc

Six Months Ended 30 June 2007

Six months Six months
ended ended
30 June 2007 30 June 2006
-------------- --------------

Note $'000 $'000

Revenue 2 1,746 -
Cost of sales (5,338) -
--------- ---------
Gross loss (3,592) -

Administrative expense (3,467) (194)
--------- ---------
Loss from operations (7,059) (194)

Investment income 917 -
Finance costs (130) -
--------- ---------
Loss before tax (6,272) (194)

Income tax - -
Loss for the period attributable to equity
holders --------- ---------
of the parent company (6,272) (194)
========= =========



Loss per share
Basic and diluted 4 (0.07) (0.01)
========= =========



All activities of the Company relate to continuing operations.





Consolidated Balance Sheet (unaudited)

Renewable Power & Light plc

30 June 2007



30 June 2007 30 June 2006
-------------- --------------

$'000 $'000
ASSETS
Non-current assets
Property, plant and equipment 37,817 2,300
Other long term assets 608 -
----------- -----------
Total non-current assets 38,425 2,300

Current assets
Inventories 3,175 -
Trade and other receivables 1,038 -
Non-trade receivables 20,533 125
Cash and cash equivalents 29,817 315
----------- -----------
Total current assets 54,563 440
----------- -----------
Total Assets 92,988 2,740
=========== ===========

EQUITY AND LIABILITIES
Equity
Share capital 1,836 393
Share premium 93,593 2,538
Retained loss (7,294) (194)
----------- -----------
Total equity attributable to equity holders of
the parent 88,135 2,737

Non-current liabilities
Provisions 1,200 -
----------- -----------
Total non-current liabilities 1,200 -

Current liabilities
Interest bearing loans and borrowings 1,985 -
Employee benefits 95 -
Trade and other payables 1,573 3
----------- -----------
Total current liabilities 3,653 3
----------- -----------
Total Equity and Liabilities 92,988 2,740
=========== ===========





Consolidated Statement of Cash Flows (unaudited)

Renewable Power & Light plc

Six Months Ended 30 June 2007





Six Months Six Months
ended ended
-----------------
30 June 2007 30 June 2006
--------------

Note $'000 $'000

NET CASH FLOW FROM OPERATING
ACTIVITIES 7 (5,931) (316)

INVESTING ACTIVITIES
Interest received 911 -
Purchase of property, plant and
equipment (6,593) (2,300)
---------- ----------
CASH FLOW FROM INVESTING ACTIVITIES (5,682) (2,300)

FINANCING ACTIVITIES
Repayment of borrowings (2,015) -
Proceeds on issue of shares 5 20,132 2,931
Receivable in respect of issue of
shares (20,132) -
---------- ----------
CASH FLOW FROM FINANCING ACTIVITIES (2,015) 2,931
---------- ----------
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS (13,629) 315
========== ==========

CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 43,440 -
Effect of foreign exchange rate
changes 6 -
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD 29,817 315
========== ==========






Consolidated Statement of Changes in Equity (unaudited)

Renewable Power & Light plc

Period Ended 30 June 2007




Share Share Retained
Capital Premium Losses Total
$'000 $'000 $'000 $'000

Balance at 1 January 2007 1,646 73,651 (1,394) 73,903
Net loss for the period - - (6,272) (6,272)
Credit to equity for IFRS 2 - - 372 372
Proceeds from share issue 190 19,942 - 20,132
---------- ---------- ---------- ----------
Balance at 30 June 2007 1,836 93,593 (7,294) 88,135
========== ========== ========== ==========





Notes to the Interim Results (unaudited)


General information

The Company is incorporated in the United Kingdom under the Companies Act 1985.
The address of the registered office is given on page 2.


The financial statements are presented in US dollars, the currency in which the
majority of the Group's transactions are denominated.


1. Significant accounting policies

The financial information in this document has been prepared using accounting
principles generally accepted under International Financial Reporting Standards
("IFRS"), as adopted by the European Union. The accounting policies applied are
consistent with the financial statements issued for the period ending 31
December 2006. The consolidated financial information comprises the Company and
its subsidiaries (together referred to as "the Group").

These unaudited interim financial statements do not constitute statutory
accounts within the meaning of s240 of the Companies Act 1985. The statutory
accounts for the year ended 31 December 2006, on which the auditors gave an
unqualified audit report, have been filed with the Registrar of Companies.


2. Segmental information

Segmental information about business units is presented below.


Business segments

For management purposes, the Group is currently organised into two divisions -
power plant and biodiesel plant operations. These divisions are the basis on
which the Group reports its primary segment information.

Segment information about these businesses is presented below.


2. Segmental information (continued)
30 June 2007
Power plant Biodiesel plant Unallocated Total
operations operations
$'000 $'000 $'000 $'000
Revenue
External sales 1,746 - - 1,746
-------- -------- --------- --------
Total revenue 1,746 - - 1,746
======== ======== ========= ========
Result
Segment result (3,592) - (3,467) (7,059)

Investment
income 917 917
Finance cost (130) (130)
--------
Loss before tax (6,272)

Taxation charge -
--------
Loss after tax
attributable
to equity
holders of
parent (6,272)
========

30 June 2007
Power plant Biodiesel plant Unallocated Total
operations operations
$'000 $'000 $'000 $'000

Segment assets 27,036 14,357 51,595 92,988
======== ======== ========= ========

Segment
liabilities 2,374 81 2,398 4,853
======== ======== ========= ========

Net assets 88,135
========


30 June 2007
Power plant Biodiesel plant Unallocated Total
operations operations
$'000 $'000 $'000 $'000

Capital expenditure on
property, plant and equipment
Additions 784 5,711 98 6,593
Adjustments to fair value of
subsidiaries
acquired in
the prior
period 833 - - 833
======== ======== ========= ========




2. Segmental information (continued)

Geographical segments

The Group has one geographical segment - the USA.


3. Business Combinations

As permitted by IFRS3, management has carried out a detailed review of the fair
value of the assets and liabilities acquired on the purchase of Power City
Generating, Inc. and Power City Partners LP on 14 December 2006. As a result of
this review, the following adjustments have been made:

Provisional Fair Value Adjustment Adjusted
Fair Value
$'000 $'000 $'000
Property, plant, and
equipment 19,510 (765) 18,745
Inventories 1,800 (70) 1,730
Trade receivables 1,254 (1,254) -
---------- ------------- ----------
Prepayments 15 - 15
Trade payables (1,626) 1,626 -
Accrued expenses (1,238) 463 (775)
Provisions (1,200) - (1,200)
---------- ------------- ----------
Net identifiable assets and
liabilities 18,515 - 18,515
========== ============= ==========



4. Loss and net assets per share

Basic loss per share

The calculation of basic loss per share for the period ended 30 June 2007 has
been determined as the net loss after tax divided by the weighted average number
of equity share outstanding during the period.

Period ended 30 Period ended
June 2007
30 June 2006
$'000 $'000
Net loss attributable to ordinary shareholders
Net loss attributable to ordinary
shareholders (6,272) (194)

Number of ordinary shares in thousands of shares
Issued ordinary shares at the
beginning of the period 85,843 -

Issued ordinary shares at the end
of the period 95,298 21,623
---------- ----------
Weighted average of ordinary shares
in thousands of shares 87,194 21,535
---------- ----------
Basic loss per share (0.07) (0.01)
========== ==========




4. Loss and net assets per share (continued)


The only potentially dilutive shares were the share options. These shares are
anti-dilutive as they would decrease the loss per share. Therefore, there is no
difference between the basic loss per share and diluted loss per share for the
period.

Diluted loss per share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period adjusted for the effects of all potentially
dilutive shares.


Net assets per share
30 June 2007 30 June 2006
$'000 $'000
Net assets per share
Net assets attributable to shareholders 88,135 2,737
------------ -----------

Basic weighted average of ordinary shares in
thousand of shares 87,194 21,535
Diluted potential shares in thousand of shares 91,954 21,535
------------ -----------
Basic net assets per share 1.011 0.127
============ ===========
------------ -----------
Diluted net assets per share 0.958 0.127
============ ===========



5. Share capital and reserves

On 29 June 2007, the Company completed a secondary placement on AIM of 9,454,545
ordinary 1p shares for gross proceeds of $20,866,000.


6. Financial commitments

The Group has a financial commitment in respect of the acquisition of a
biodiesel plant. Of the total commitment of $18.7m, $12.0m has been paid and is
capitalised within assets under construction. The remaining commitment will be
settled subject to the seller's achievement and the Group's acceptance of a
number of milestones, as established in a contract between the two parties.

The Group has several financial commitments for the lease of tanks and equipment
for the biodiesel power plant. The annual lease commitment is $1,282,000 for a
lease period of 3 years.

The Group has a financial commitment for the lease of railcars. The annual lease
commitment is $1,002,000 for a lease period of more than 5 years.

The Group has a financial commitment for feedstock due diligence. These letter
agreements include a six month retention payment totalling $360,000, legal and
travel expenses and success fees if the project ultimately is approved by the
Board of Directors.

The Group has a financial commitment for the lease of office space in the USA.
The annual lease commitment is $98,000 for a lease period of more than 5 years.



7. Reconciliation of loss from operations to net cash from
operating activity

Consolidated cash flow statement

Period ended 30 Period ended 30
June 2007 June 2006
$'000 $'000

Loss from operations (7,059) (194)

Adjustments for:
Depreciation of
property, plant and
equipment 915 -
IFRS 2 charge on share
options 372 -
---------------- ---------------
Operating cash flows
before movement in
working capital (5,772) (194)

(Increase) in
inventories (238) -
(Increase) in
receivables (794) (125)
Increase in payables 1,003 3
---------------- ---------------
Cash generated from
operations (5,801) (316)
Interest paid (130) -
---------------- ---------------
Net cash from
operating activities (5,931) (316)
================ ===============



8. Related party transactions

The Company entered into an agreement for the provision of senior management and
business development services with Renewable Power & Light Services Inc., ("RPL
Services") in November 2006, which had effect from 6 June 2006. RPL Services is
wholly owned by David Lewis, the Chief Executive Officer of the Company.

Under the terms of the agreement, the Company is required to pay a minimum of
$24,000 per annum to RPL Services in respect of services rendered under that
agreement. In the period to 30 June 2007, $964,807 was paid to RPL Services,
Inc. and recognised in the loss of the Company. At 30 June 2007, a debtor
balance of $159,194 relating to prepaid expenses was held between the Company
and RPL Services.


On 21 September 2007, the Board of Directors of the Company terminated the
agreement with Renewable Power & Light Services, Inc.



9. Subsequent events


In early July, Safari, the Company's principal supplier of palm oil feedstock,
notified the Company that they would be unable to supply the oil at the
contractually agreed price. The Company immediately commenced legal action
against Safari. Wilkie Farr & Gallagher LLP, RPL's solicitors in this case, have
vigourously pursued all legal avenues. On the basis of legal advice, the Board
has decided that it is not in the best interest of shareholders to pursue legal
action any further.


The Company made the following significant payments in July and August 2007.

* $2,749,800 for an equipment progress payment on the biodiesel facility.
* $727,000 for a plant progress payment on the biodiesel facility.

[maestro4] 24/9/2007 11:37

no interest in this company still...

interestingly they are looking for palm oil in africa or south america.

this is a good long term hold.

[omellete] 24/9/2007 09:56

Well the cash burn should be lower as they got rid of the two incompetent fools.

[boffster] 24/9/2007 08:27

Agreed, very pleased that cashburn is low. One bit of good news and I think these could double

[maestro4] 24/9/2007 08:23

in the trading statement they stated that as of 12 july 2007 cash was around $50m, now we know cashburn is little and company can continue and go forward..

since interims

"The Company made the following significant payments in July and August 2007.

* $2,749,800 for an equipment progress payment on the biodiesel facility.
* $727,000 for a plant progress payment on the biodiesel facility"

Trading way below NAV, its confirmed. Alternative supply will eventually be found. Strong buy at these levels..

[jonc] 24/9/2007 08:21

I stand corrected on that point.

September?

;-)

[martincoops] 24/9/2007 08:18

JonC

If you read the interims you would see that they had net cash of around $50,000,000 in July and have made the following payments

The Company made the following significant payments in July and August 2007.

* $2,749,800 for an equipment progress payment on the biodiesel facility.
* $727,000 for a plant progress payment on the biodiesel facility.

So I would say they have over $45,000,000 in the bank

[jonc] 24/9/2007 08:07

No mention of current cash position.

I wonder why???

[omellete] 24/9/2007 07:45

Yes - and also seems David Lewis had a nice side deal going. At least they have put a stop to that - sacked him and his senior manager.

Cash is still around 25 million quid plus the power stations.

[martincoops] 24/9/2007 07:40

Well not much info given today but on the positive side net assets currently £46,000,000 compared to current share price of £23,000,000 so trading at 50% discount to NAV

I will now wait for the next few months to see if they can get a feed stock contract

[boffster] 23/9/2007 22:05

I would think the insti's could have applied pressure to get rid of Lewis

[omellete] 23/9/2007 20:22

Maestro - Not sure if they have to RNS the hiring of a senior manager - he is not a Director.

Corvin should have got the chop immediately. Maybe that is why Lewis went.

However apart from Credit Suisse, the other holders do not seem to have bailed.

RPL must have reassured them. Shame they did nothing for the small PI's.

[maestro4] 23/9/2007 20:13

Tomorrows the day we get a update. Imho we will hear nothing which is new. Safari being fraudster and managed to dupe rpl to sign a deal for palm deal which in fact a deal which was "too good to be true". Short term this has hurt us big time. The share price which is at current level would have never been dreamt off if the two directors were not so incompetent. RPL is along term hold. I doubt tomorrow will be so significant in sense of major change.

The thing that concerns me is that the board took circa 3 months to force the two directors to leave. Why wasn't this initiated earliar, if you read the case files you can instantly see that there were major flaws in the deal. Directors were partly to blame, and there contracts could have been terminated alot earliar. But now one trading day before the interims they decide to let them go. This in my view suggest that no steps have been made in finding an alterntaive supply of feedstock, the points that were mentioned at post suspension trading statement have not been fulfilled. Still they have not hired a new senior manager, how long will it take to hire a new ceo if a new senior manager cant be hired in three months.

Tomorrow will give us nothing new, as various people have mentioned the share price is supported by the cash in the bank which is around $50m.

A new management and new ideas is just what rpl need, but delaying for around 3 months to let Lewis and Corvin go, doesnt make sense.

Good Luck

[neo123] 22/9/2007 20:45

They were conned by safari..

A company which was made up out of a breath of fresh air managed to con both Lewis and Corvin... Rightly so they left......

How were experience Directors conned.. No due diligence maybe.

Hopefully now we can slowly gain confidence back in the mkt. New ceo will be a start. Cash rich company with Net Assets of $84m should recover over the year. Mkt cap of 24m is far too cheap.

[maestro4] 22/9/2007 15:57

Boffster

Someone had to take the blame for the embarrasing affair with safari. I was a bit concerned that no one was shown the door alot earliar(I was only expecting Corvin to go).

Now the question is do they wait for a new ceo to be elected before they sign a new agreement for palm oil or has this already been done.

You have to rememeber Lewis hold circa 15m shares they were worth around £15m and now they are worth a quarter of that, it was in his interest also to sort out this mess. Hopefully he did something before he left...

fingers cross

BUT WE KNOW AT THE INTERIMS CASH WILL BE $50M AND NET ASSETS CIRCA $84M.

[boffster] 22/9/2007 13:11

Well yes, you're quite right maestro. These are the reasons I did not sell my holding. Still, I think the market may react badly if the results reveal that little or no progress has been made.

[maestro4] 22/9/2007 12:01

what bad news can we suffer what we already dont know. We were duped by safari that is fact(will get nothing from them imho). we wont be profitable this year, loss of around $15m. Theres nothing else..

We are trading below NAV because of the uncertainty, current mkt cap 25m and NAV around £42m.

all this known, and we know certain institutions have been topping up.

[boffster] 22/9/2007 10:50

My gut feeling says Monday is going to be grim.. I hope I'm wrong

[maestro4] 21/9/2007 23:07

Former ceo Lewis holds around 15.07% of share capital, will he sell or hold, Interesting to see. The muppet was forced out.

[maestro4] 21/9/2007 22:44

omellete

"At least they have cash to support their market price."

Have to agree 100% with that statement dont believe price can fall much further, assets and cash in bank support current share price

Safari duped rpl and shareholders paid for it, strange they could have annouce the director changes at the interims.

Lewis and Corvin really f up!! Not many ceo get the boot.

[maestro4] 21/9/2007 15:46

i asked rpl last week why there havent been any updates and how come no one has been sacked for the safari fiasco.

i got a reply the same day stating that they have a meeting friday 21st sept, the meeting and termination was planned, it wasnt rash decision.