27th Nov 2015 08:32
LONDON (Alliance News) - Renewable energy developer and operator REACT Energy PLC Friday reported a narrowed pretax loss for its most recently ended financial year, as it focused on successfully exiting from an examinership process and restoring its trading on AIM.
Examinership is a procedure under Irish Law for the rescue and return to health of ailing but potentially viable companies.
REACT opted to seek examinership following the suspension of funding discussions with a strategic investor, resulting from a dispute with the landlord on its Engield site, as well as difficulties in financing the re-powering of its Newry site, and actions taken by certain creditors of REACT.
For the year to end-June the company reported a pretax loss of EUR91,214, narrowed from a pretax loss of EUR14.7 million a year before. In the previous year the company recorded hefty impairment charges. Revenue was EUR279,966, up from EUR208,711 a year before.
In June, the company secured a loan facility with EcoFinance, a company which sources finance for renewable energy projects, which it will use for its corporate development and general working capital.
REACT said it believes that the fundraising will provide it with adequate resources to develop a plan to enhance the value of its principal assets; however it noted that the development and revenue generation from these assets will require additional financing, which it expects to be sources "in due course."
Shares in REACT were down 24% at 3.80 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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