13th Oct 2014 08:00
LONDON (Alliance News) - Renewable Energy Generation Ltd Monday said both profit and revenue fell in its financial year just ended, due to planned reductions in capacity and an increase investment spend.
The renewable energy company posted a pretax profit of GBP2.9 million for the year ended June 30, compared with a GBP5.8 million profit the prior year, as revenue fell to GBP11.6 million from GBP13.4 million, which it said was due to planned reduction in installed capacity, as part of its strategy to recycle capital.
"Following the sale of our operational wind farm at Goonhilly and the decommissioning of St Breock prior to re-powering the site, our installed wind farm capacity fell from 51.15 megawatt to 34.7 megawatt, with our Bio-Power operations remaining at just over 8 megawatt," the company said.
Renewable Energy Generations said significant spend on its construction plans for several wind farms and plants, as well as investment in its development pipeline, left it with free cash of GBP11.0 million at year end, lower than the GBP16.1 million in free cash it had last year.
Despite the fall in both earnings and revenue, the company said it was confident in its outlook and raised its total dividend for the year to 2.2 pence, up from 2.0 pence the prior year.
"REG's increasingly versatile stable remains well-placed to overcome the challenges of the transition to a reformed UK energy market," said Chief Executive Andrew Whalley in a statement.
Since year end, the company has sold two wind farms and signed a financing deal. Last week, the company signed a loan deal for GBP4.8 million in financing for its Whitemoor Bio-Power project, and sold two wind farms to a fund managed by BlackRock for a total enterprise value of GBP36 million.
The company's shares were trading at 67.50 pence Monday morning, up 0.2%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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