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Parkmead shares rise on swing to profit and renewable investment hopes

26th Nov 2024 17:07

(Alliance News) - Parkmead Group PLC on Tuesday reported full-year results that showed a swing from loss to profit, despite a fall in revenue, due to increased operational output.

The Netherlands and UK-focused gas explorer said profit in the year to the end of June was GBP1.1 million, a considerable swing from a loss of GBP35.3 million last year.

Shares in Parkmead closed up 14% to 15.11 pence in London on Tuesday.

Revenue fell by 61% to GBP5.7 million from GBP14.8 million in financial year 2023.

The company said the increase in profit was driven by greater output across the portfolio and a reduction in tax liabilities. Revenue fell due to lower average gas prices.

Parkmead said it benefits from a "balanced portfolio" and exposure to the UK renewables market which "the new UK government sees as a key area for growth".

The company also said its exploration and evaluation costs fell by 99% to GBP300,000 from GBP33.0 million, supporting the swing towards profit.

Parkmead also had no costs from impairment of property compared to GBP13.0 million last year.

Executive Chair Tom Cross said: "We have delivered another year of strong operational results, which has led to a healthy profit for the group and earnings of over four pence per share...We welcomed the removal of the de facto ban on onshore wind energy developments across England which may unlock a range of investment opportunities.

"The group's robust financial position provides Parkmead with a distinct advantage as we seek to further enhance shareholder value through acquisition opportunities across the group," he noted.

By Michael Hennessey, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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