29th Jun 2023 08:29
(Alliance News) - Kibo Energy PLC on Thursday it has sought funding to address a liquidity crunch, as the company continued to post a loss in 2022.
Galway, Ireland-based Kibo has energy projects in Africa and the UK. It said liquidity constraints resulted from the "significant" capital required to develop its projects.
As at December 31, cash and cash equivalents were GBP163,884, compared to GBP2.1 million a year earlier.
The group was technically insolvent, as total current liabilities of GBP4.6 million far exceeded total current assets of GBP391,107.
Kibo said it has embarked on funding initiatives to continue development of its projects.
It is waiting for the completion of a joint venture agreement between its subsidiary Mast Energy Developments PLC and an institutional investor to a value of GBP33.6 million. Heads of terms have already been agreed, it said.
"Following from the losses incurred in the current financial period, coupled with the net current liability position the group finds itself in as at December 2022, these conditions...indicate that a material uncertainty exists which may cast significant doubt on the group's ability to continue as a going concern," Kibo said.
Kibo on Thursday said pretax loss narrowed to GBP10.9 million in 2022 from GBP23.1 million in 2021. Revenue remained relatively insubstantial, though it surged to GBP1.0 million from GBP3,245.
Kibo Chair & Chief Executive Louis Coetzee said the company has made "significant" progress in waste-to-energy, biofuel, reserve power, and battery storage projects.
By Artwell Dlamini, Alliance News reporter
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