9th Feb 2015 10:15
LONDON (Alliance News) - Renewable Energy Generation Ltd Monday reported a fall in first-half pretax profit as the corresponding period last year was boosted by higher profit from the disposal of subsidiaries and also showed a smaller operating loss from continuing activities.
In a statement, the company, which has a strategy of developing, owning and operating a portfolio of onshore wind and bio-power projects, as well as managing renewable energy assets for third parties, said it made a GBP1.1 million pretax profit on continuing operations in the six months ended December 31, 2014, compared with GBP6.5 million in the corresponding period last year.
The fall in pretax profit was due to a widening of the company's operating loss to GBP2.5 million from GBP1.9 million as revenue fell and expenses rose. Profit on disposal of subsidiaries fell to GBP4.6 million from GBP9.4 million.
The company sold the St. Breock and Ramsey II wind farms to BlackRock last October for net proceeds of GBP13.8 million with a profit of GBP4.6 million recognised so far. The prior half-yearly numbers were boosted by a GBP9.4 million profit on the sale of the 12 megawatt Goonhilly Wind farm to BlackRock.
Renewable Energy Generation also said its new asset management business has 56 megawatts of assets under management and is anticipating adding additional projects over the course of the year. It has already begun marketing to new third parties and expects the unit's revenue to grow "strongly" over the next few years.
"After an extended period of investment our UK businesses are beginning to mature. This should facilitate a significant increase in REG's operational megawatts over the next few years," Chief Executive Andrew Whalley said in a statement.
Renewable Energy Generation shares were down 1.4% at 62.00 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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