10th Feb 2014 08:32
LONDON (Alliance News) - Renewable Energy Generation Ltd Monday said it swung to a pretax profit in its first half on the proceeds of the sale of its Goonhilly Wind Farm in the UK.
The clean-technology energy development company posted a pretax profit of GBP6.5 million for the six months ended December 31, compared from a pretax loss of GBP1.7 million in the same period during 2012.
The company said its revenues fell 14% to GBP5.7 million from GBP6.5 million, and its operating loss increased to GBP1.9 million from GBP838,000 the year before.
Furthermore, despite an improvement in central administrative expenses to GBP870,000 from GBP1.1 million, the company's bio-power administrative expenses increased to GBP297,000 from GBP281,000 and its wind administrative expenses increased to GBP1.8 million from GBP1.3 million.
However, the company achieved the improved financials due to a GBP9.4 million payment related to the disposal of the 12 megawatt Goonhilly Wind Farm during the period.
Renewable Energy said that the proceeds of the sale will be reinvested in to the group's asset development and construction pipeline.
As such, the company proposes a 10% increase on its interim dividend to 0.55 pence per share.
Renewable Energy also noted that following the period it has signed a construction contract for a 18 megawatt bio-power plant in Yorkshire and has achieved planning permission for the extension of its French Farm to 12 megawatts capacity.
Renewable Energy, which trades as WIND, was up 1.4% at 75.75 pence early Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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