31st Jul 2015 09:47
LONDON (Alliance News) - Pires Investments PLC Friday reported a loss in the first half of its financial year, largely due to the "significant diminution" in the value of its main investment, Rame Energy PLC, and said it's eyeing the renewable energy sector outside the UK.
"The share price performance of Rame has been disappointing. However, Rame has successfully met its initial objectives, having completed the Raki wind project and is making progress on its project pipeline. It also has a number of other developments in progress, both in the wind and solar spheres. We continue to believe that it will make good progress over the coming year and that this will in due course be reflected in its share price," Chairman Peter Redmond said in a statement.
The company made a GBP355,376 pretax loss in the six months to the end of April, compared with a GBP22,528 pretax profit in the corresponding half of the prior year.
Pires has investments in Kennedy Ventures PLC, Armstrong Ventures PLC, and 3Legs Resources PLC, as well as the holding in Rame.
"Pires' intention in taking these investments was to hold them until a significant and hopefully value enhancing event took place and then progressively to realise the value of such investments. This remains our intention in relation to the company's present holdings and the board is currently reviewing the investing strategy for the future," Redmond said.
Pires said it has a very positive view of the renewable energy sector outside of the UK. Its subsidiary, Ventec Renewable Energy Ltd, was established to "review and assist in renewable energy projects, particularly onshore wind, in Europe with a view to earning or acquiring holdings in such projects".
"Progress has been made in this area and the board anticipates providing a further update to the market in due course," the chairman said.
Pires shares were down 5.3% at 0.0213 pence on Friday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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Related Shares:
PIRI.LRAME.L