28th May 2015 07:13
LONDON (Alliance News) - Infinis Energy Thursday said it swung to profit from a substantial loss in the last financial year leading to the company significantly raising its dividend, as expected, as the expansion of its wind farms continues to progress on schedule.
Infinis shares were up 2.5% to 183.51 pence per share on Thursday morning, one of the best performers in the FTSE 250.
The British renewable energy company reported a pretax profit of GBP28.1 million in the year ended March 31, swinging from a substantial GBP29.0 million loss in the last financial year on the back of lower administrative and finance costs as revenue dipped to GBP236.0 million from GBP238.4 million.
Administrative expenses were cut to GBP39.2 million from GBP78.9 million and finance expenses dropped to GBP38.5 million from GBP59.3 million.
Earnings before interest, tax, depreciation, amortisation and exceptional items fell to GBP142.8 million from GBP148.4 million. After exceptional items Ebitda rose to GBP140.2 million from GBP106.7 million. That rise was due to a GBP39.4 million exceptional item in the last financial year that was not repeated in the year ended March 31.
Infinis significantly raised its dividend for the full year to 18.3 pence per share compared to only 6.6 pence per share last year, which it said was "is in line with our dividend commitment of GBP55 million".
Looking forward, the company said the construction of the 43 megawatt A-Chruach wind farm in Argyll and Bute is "progressing well" with commissioning still expected by March 2016. The Galawhistle wind farm in South Lanarkshire is expected to reach financial closure "shortly" with the final design to increase capacity to 66 megawatts from 55 megawatts expected to be finished at the same time. Galawhistle is on track to be commissioned "well in advance" of the deadline of March 2017.
Infinis said its landfill gas and wind businesses are performing in line with expectations and said its contracted position, combined with 50% of the company's expected revenues increasing in line with inflation means it has "good visibility of cash generation for the coming year".
At the end of March, Infinis had a cash balance of GBP75.4 million, with net debt standing at GBP534.7 million, slightly down from a year earlier.
"In early December 2014, Terra Firma, the general partner of our largest shareholder, announced their desire to find a way of selling down their entire and remaining holding of nearly 70%. We have engaged constructively with Terra Firma and continue to seek solutions that are in the interests of all shareholders. We look forward to this issue being resolved in the near future," said Chairman Ian Marchant.
By Joshua Warner; [email protected]; @JoshAlliance
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