16th Oct 2013 10:23
LONDON (Alliance News) - Renewable Energy Generation Limited Wednesday said it has swung to a pretax profit in its full year as new deals and disposal payments improved company finances.
The UK-focused renewable energy group posted a pretax profit of GBP5.8 million for the twelve months ended June 30 compared to a pretax loss of GBP2.0 million the previous year.
The company said it increased sales to GBP13.4 million from GBP12.1 million the previous year as positive wind speeds and new operations increased overall revenues.
The vast majority of the company's gains came from a GBP9.1 million payment on the disposal of its Sanction Hill and South Sharpley wind projects.
After the period, REG completed a GBP25.1 million sale of its Goonhilly Downs Wind Farm to BlackRock releasing around GBP10.6 million cash back to the company and reducing borrowings by GBP14.5 million.
The company announced in a separate statement Wednesday that it has entered into an agreement with South Staffordshire College to acquire a wind project. The company said the project would comprise two 2 megawatt turbines and is expected to deliver 11 gigawatt hours of clean electricity per year.
In return, the company said it would support the college's educational programme by providing access to the site and will make annual lease payments to the college during the project.
REG said it aims to start construction of the project during its current financial year.
Renewable Energy Generation shares were up 3.3% to 78.50 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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