9th Oct 2018 12:28
LONDON (Alliance News) - Plutus PowerGen PLC on Tuesday posted a significantly widened loss in its most recent financial year due to a combination of administrative expenses and share based payments.
Shares in the power company, which constructs a mixture of gas power sites and flexibly generated energy plants, dropped 13% to 1.00 pence on Tuesday.
In its year ended April 30, Plutus reported a GBP567,183 pretax loss - more than twice its GBP201,501 loss the year before.
Administrative expenses played a role in this, increasing to GBP1.5 million from GBP1.3 million. Share based payments were also a contributing factor as they reached GBP289,338 from only GBP31,276 the prior year.
More positively, other operating expenses shrank to GBP50,153 from GBP236,164.
Revenue was flat at GBP1.4 million for both financial years.
The company is currently engaged in finance discussions. During its year the company agreed non-binding terms for GBP25 million from an asset finance institution and received an offer of a mezzanine loan finance for up to 10% of capital costs at its gas power plants.
"We believe we are close to receiving further indicative term sheets and your board is working hard to convert these terms sheets into firm offers and thereafter financial close," said Plutus Interim Chief Executive Officer James Longley.
As the UK government winds down its payments for green energy, Plutus plans sell its flexible power generation sites. The sales process is to begin in 2019. It is also considering purchasing the remaining 56% interest in some of these sites.
Related Shares:
PPG.L