8th Jun 2015 09:16
LONDON (Alliance News) - Renewable Energy Holdings PLC shares fell on Monday after it said its pretax loss was flat in 2014 from a year ago and said its financial position is "dependent" on its application for planning permission for its Welsh wind farm being approved.
Renewable Energy shares fell 18% to 1.70 pence per share on Monday morning, have dropped 30% earlier to 1.43p.
The investment company, which does not currently generate any revenue, reported a pretax loss of GBP1.4 million in 2014, as administrative expenses fell to GBP458,000 from GBP695,000, partially offset by finance costs rising to GBP889,000 from GBP677,000.
The company owns a 30 megawatt permitted wind project in Poland and an 81 megawatt wind project in Wales, alongside a "significant (5.8%) shareholding" in Carnegie Wave Energy, an Australian Securities Exchange-listed company.
The main focus is to secure planning permission for the Welsh Mynydd y Gwynt wind farm, which is expected to be decided no later than November 20.
If consent is granted then the wind farm will need to be connected to the proposed new mid-Wales hub substation via a 132 kilovolt overhead line, which will require a separate planning application by the operator, SP Manweb. In turn the new hub substation is subject to another planning application by National Grid PLC. Both projects are currently scheduled for completion in October 2019, it said in a statement.
"Whilst the board will consider all possible deals should consent be granted, it is its view that the sale of the wind farm is likely to achieve the best value for shareholders only after the grid connection projects have both been consented and the contracts-for-difference auction process successfully completed," it said in a statement.
Renewable Energy said it continues to try to sell the wind farm in Poland, but said capital expenditure is being "severely restricted" in the meantime.
The company said its financial position is "dependent" on securing planning permission for the Welsh wind farm, and said if permission is not granted it will have to discuss its finances and future with existing and potential funders, warning it will enter administration if no further funding is available.
Renewable Energy said it "remains optimistic" about securing planning permission.
By Joshua Warner; [email protected]; @JoshAlliance
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