30th Aug 2019 09:21
(Alliance News) - Rurelec PLC on Friday said it swung to loss in the first half of 2019 after a disposal gain booked a year prior wasn't repeated.
The stock was trading 6.7% higher in London on Friday at 0.64 pence a share.
The power generation company said it swung to pretax loss of GBP454,000 in the six months to the end of June compared to the GBP1.1 million profit reported a year earlier.
In the first half of 2018, Rurelec gained GBP661,000 on foreign exchange and secured a GBP1.3 million gain on the disposal of its Peruvian assets.
Rurelec reported a "significant" improvement in cashflow, with net cash inflow before repaying term loans increasing to GBP1.1 million from just GBP240,000 last year.
Rurelec also highlighted a "major" reduction in its borrowings to GBP150,000 from GBP1.5 million a year before, driven by the repayment of secured debt principal and interest owed to Bridge Properties Arena Central Ltd.
"The board continues to pursue measures to restore value to the company and its shareholders through prioritisation of receiving cash receipts from the power generation plant in Argentina, selling or developing its assets in Chile and reviewing options for its turbine assets, whilst pursuing cost savings at the head office in London," said executive directors Simon Morris and Andy Coveney.
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