29th Sep 2014 14:05
LONDON (Alliance News) - Renewable Energy Holdings PLC Monday said it will need more funding from its major shareholders, despite narrowing its losses in the first half.
The company posted a pretax loss of GBP633,000 for the six months to June 30, compared with a GBP720,000 loss a year earlier.
This includes finance costs of GBP409,000 associated with the Utilico Investments Ltd loans. Utilico is a major shareholder in Renewable Energy Holdings.
Last year, Utilico agreed to extend the term of a secured convertible loan that was due to end September 30 to December 31, 2014 and to increase another lending facility it has provided the company.
Utilico had given the original GBP2.5 million loan in 2009, but the cumulative balance including capital and interest is now GBP3.5 million.
The company has also extended another loan facility it provided in February last year by GBP1.5 million to GBP3.25 million. Renewable Energy sought the funds to progress its Welsh and Polish projects and for general working purposes.
Renewable Energy said Monday, however, that funding over above that previously agreed with Utilico will be required in 2015 and hence discussions are ongoing with Utilico.
The company expects to make an announcement in due course.
Renewable Energy Holdings shares were quoted flat at 1.73 pence Monday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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