Final Results

13 October 2014

Renewable Energy Generation Limited

("REG", "the Company" or "the Group")

Preliminary Results for the year ended 30 June 2014

Renewable Energy Generation Limited (AIM: WIND), the renewable energy group, today announces its preliminary results for the year ended 30 June 2014.

Operational highlights

· Planning permission secured for Denzell Downs wind farm (10MW)

· Local planning authority resolutions to grant permissions at French Farm II (8MW) and Hallburn (12MW) wind farms, awaiting Department for Communities and Local Government decision

· 54MW of new onshore wind planning applications made with 185MW now awaiting determination

· 60MW of Solar PV projects and 18MW of Bio-Power projects submitted to the planning system

· Acquired consented Rodbaston wind farm (4MW)

· Raised £14.2m of cash through our relationship with BlackRock, recycling capital from the Goonhilly wind and solar farms

· Financing of Orchard End wind farm (4MW) completed, releasing £4.2m to the Group

· Commissioned High Down wind farm (0.5MW), completing innovative £1.5m crowd funded debenture with Abundance NRG

· Commenced construction of St. Breock (10MW) and Ramsey II (8MW) wind farms, successfully raising project finance with ING Bank NV of £21m for the projects

· Bespoke Whitemoor Bio-Power plant (18MW) entered construction and set for commissioning in Autumn 2014

Financial highlights

· Revenue of £11.6million (2013:£13.4million)

· Adjusted EBITDA1 of £10.4million (2013:£12.3million)

· Profit after tax of £3.9million (2013:£6.5million)

· Cash and cash equivalents of £11.0million (2013:£16.1million)

· Proposal to raise final dividend to 1.65p per ordinary share (2013:1.5p)

· Total dividend for the year increased to 2.2p (2013: 2.0p)

1 Adjusted earnings before interest, taxation, depreciation and amortisation ("Adjusted EBITDA") is equal to the Group's continuing operating profit/(loss), including profit on disposal of subsidiaries, but before share-based payments, interest, taxation, depreciation, amortisation and impairment charges.

Post year end events

· Completed a term loan facilities agreement with Caterpillar Financial Services (UK) Limited for the financing of the Whitemoor Bio-Power plant totalling £4.8m

· Raised £13.1m of cash, with an additional £1.9m deferred consideration, in the sale of the St.Breock and Ramsey II wind farm projects to a fund managed by BlackRock

REG Chief Executive Officer Andrew Whalley said:

"Our partnership with BlackRock continued to deliver excellent value for shareholders this year, through the sale of a wind farm and solar project in Cornwall. This relationship was further cemented through the sale of two further wind schemes post year end and is expected to remain a vital part of our strategy to maximise the value of our maturing portfolio of projects.

"Securing local authority resolutions to grant permission for projects in a challenging consenting environment was also a pleasing feature of the period and is testament to the skill and tenacity of our development team. We look forward to these schemes progressing through to construction once DCLG approval is forthcoming.

"REG Bio-Power again proved a superb fit for the National Grid's Short Term Operating Reserve programme and with the construction of the 18MW Whitemoor plant nearing completion, is set to build rapidly on this successful foundation.

"REG's increasingly versatile stable remains well-placed to overcome the challenges of the transition to a reformed UK energy market."

A presentation to equity analysts will be held today at 9.30am at the offices of Broker Profile, Augustine House, 6A Austin Friars, London, EC2N 2HA. Please contact Simon Courtenay if you would like to attend.

ENDS

Enquiries:

Notes to editors

Renewable Energy Generation Ltd (REG) is an AIM listed renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: based in Truro, Bath and Guildford, UK, it currently operates 11 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 34.7MW as well as 3 projects on behalf of its partner BlackRock totalling 28MW. REG has around 200MW of projects in the planning system awaiting a consent.

REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant powered by fuel recovered from used cooking oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).

www.renewableenergygeneration.co.uk

Chairman's Statement

Global context

Renewable energy raised its share of total generation worldwide to 8.5% saving an estimated 1.2 gigatonnes of CO2 emissions or 12% to the 2020 projected emissions gap that needs to be closed to remain within a two degrees Celsius global temperature increase.

A slight fall in global investment in renewable energy last year was as much to do with falling costs in the two leading technologies of wind and solar photo-voltaic ("PV"), as it was to government austerity measures. New solar PV capacity added was one third more than in the previous year and in certain meteorologically energetic locations around the world wind and solar was built without any subsidy support.

Falling subsidies have been unsettling for investors but they have been a natural feature of renewable energy investment for many years and are an indicator of the increasing cost competitiveness of these maturing technologies.

Despite policy uncertainty, 2013 brought a 54% recovery in clean energy share prices on the WilderHill New Energy Global Innovation Index and a significant involvement of long-term investors such as pension funds, insurance companies, wealth managers and private individuals in the equity and debt of wind and solar projects.

UK market

In the UK, total renewable energy investment was up by 14% to £7.5 billion last year, ranking it fourth behind China, the US and Japan. Although political posturing in the run up to a general election continues to unsettle investors, the fundamental drivers for renewable energy preserve the UK's attractiveness for your company, which is better prepared than ever to respond to the specific risks and opportunities which offer value in this sophisticated market.

In order to meet its legally binding obligation to produce 15% of its energy from renewable sources by 2020 the UK's national grid operator identifies a total need for 13GW of onshore wind capacity of which 5GW remains to be built. This requires a build-rate similar to that which has prevailed in recent years and as the most affordable, popular and deliverable of the renewable energy options, your Board believes onshore wind and solar PV will be relied upon to fill a larger gap still, as cash-strapped utilities retreat from higher risk offshore development and the political enthusiasm over gas fracking gives way to reality.

Anxious to attract significant investment to its power sector driven by the need for cost effective decarbonisation and threats to security of supply, the UK has introduced a new market mechanism, the Feed-in-tariff Contracts-for-difference support regime ("CfD"), under which all renewable energy technologies will compete for 15 years of predictable financial support from 2017. We expect the existing Renewable Obligation regime ("RO") will remain our preferred mechanism until then for wind, together with those of our solar PV projects completing before April 2015, after which CfD is likely to replace it for large solar schemes.

Your Company

Our objective for 2020 is to own and operate a sizeable fleet of diversified renewable energy assets funded with a conservative ratio of debt to equity and providing a predictable yield for investors superior to that available from funds simply acquiring operating assets.

Our strategy to achieve this in a capital-constrained environment is to build out our substantial pipeline using an optimal mix of debt and equity. Recycling capital from selected projects to release cash and value gains allows this continued financing of new renewable projects across the Group, with the aim of ultimately retaining projects as part of a diversified portfolio of assets providing long-term, predictable earnings with low risk.

Our partnership with BlackRock plays a role in this and following on from the two wind farms we sold to them last year they acquired our largest project Goonhilly Downs, realising for the company a profit of £9.1m along with our first solar PV project also at Goonhilly.

These asset sales illustrate the anomalies inherent in the valuation of many publicly quoted renewable energy stocks. With market value lagging demonstrated net asset and intrinsic values we remain focused on converting our ample pipeline of good projects into long duration cash flows.

Our progress in diversifying to mitigate the policy risks of pure-play wind provides resilience against the impact of any temporary slowing of consenting. Roughly 30% of our wind projects awaiting planning decisions fall outside the domain of the Department for Communities and Local Government which helps to reduce the concentration of planning risk within the English planning process, and a further 60MW are solar PV projects capable of consent before next spring. We have 25MW of consented wind projects preparing for construction and are currently building an 18MW bio-fuelled power plant which will double our existing capacity, with a further 36MW expected to gain consent for construction in the coming year.

Our planned expansion of our bio-fuelled standby power plants reflects our unique competitive advantage in the emerging market for standby power, as the UK's grid system operator responds to projected capacity shortages and increased balancing complexity arising from the intermittency of renewable energy sources.

Our patented renewable bio-fuel enables us to bid competitively for running hours under National Grid's strategic reserve program, the short-term operating reserve ("STOR") and our plan to expand towards 100MW is supported by several years of perfecting our patented process to recover used cooking oil for use as a power generating fuel. We are confident that we can continue to expand our oil collection operation to fully supply an extended fleet and our joint venture with Caterpillar has validated the technical acceptability of the fuel for prolonged running hours in stationary engines.

Another plank in our diversification strategy is asset management, which following our success in providing services to BlackRock, is expected to build quickly due to the existing infrastructure we have in place, with the plan being to expand more widely in the UK and beyond where service revenues are a proportion of energy sales.

Your Board

Your non-executive directors pride themselves on their independence and on the relevance for the company of their individual experiences as business leaders in electricity utilities, regional development agencies, international energy consultancies, investment banking, accountancy and company administration. The Board meets frequently, when the independent directors and the executives develop, monitor and adapt strategy in a fast-moving environment.

The Chairman of the Audit Committee and I are in our ninth year as directors and we have accepted the Board's invitation to seek re-election to provide continuity during a period of external uncertainty. The Board has enhanced its procedures for the regular assessment of Board effectiveness and a leading consultancy has been appointed to evaluate the directors' individual contribution to the good governance of the Company.

Mike ListonChairman

Business & Financial Review

Strategy and objectives

The Company aims to provide its investors with a diversified exposure to the growth of renewable energy within the overall energy market. This is achieved through in-house development of new renewable projects covering three principal areas; smaller onshore wind energy projects, generation plant powered by fuel recovered from waste cooking oil and ground-mounted solar projects. Within the Wind business, the Company operates an asset management department which manages REG's own renewable energy projects as well as projects for external third parties.

REG aims for a prudent overall capital structure for its businesses, maintaining sound liquidity at all times. Our funding strategy to achieve the growth of our diversified portfolio is to use a mixture of equity and long term finance, both recourse and non-recourse, whilst supplementing our equity base by recycling capital from selected projects to release cash and value gains. Ultimately the aim is to retain projects as part of a diversified portfolio of assets providing long-term, predictable earnings with low risk.

In general terms REG develops its own business opportunities with acquisitions only undertaken on an opportunistic basis where the Company's existing skills can be leveraged. These acquisitions have generally been small in the context of REG's overall capital structure and have been funded from the Company's internal resources.

REG minimises risk through a detailed understanding of the UK development process, the renewable policy framework in the UK, our experience in procuring the optimum equipment for consented sites, our proven ability in construction and our knowledge in operating renewable plant.

REG places Health and Safety at the forefront of its activities and we are pleased to report that no notifiable incidents occurred over the year.

The overall objective of the Company is to grow long-term returns for its shareholders through increases in net asset value per share and rising annual dividend payments. Dividend increases will be balanced with the requirements of our existing businesses against future investment opportunities. The Company will also consider other net asset value enhancements such as share buy backs, where the Company's shares trade at a substantial discount to intrinsic value.

Group financial performance

REG's earnings for the year benefited from an excellent performance from our operational wind fleet and from the sale of the 12MW Goonhilly Downs wind farm to a fund run by BlackRock, our long term strategic partner.

Following the sale of our operational wind farm at Goonhilly and the decommissioning of St. Breock prior to repowering the site, our installed wind farm capacity fell from 51.15MW to 34.7MW, with our Bio-Power operations remaining at just over 8MW. The impact of this planned reduction in installed capacity, as part of our strategy to recycle capital, resulted in revenues for the year of £11.6m (2013: £13.4m), gross profits of £4.1m (2013: £5.7m), and EBITDA before the disposals of assets of £0.9m (2013: £3.2m).

Adjusted EBITDA was £10.4m (2013: £12.3m) including the profit on sale of the Goonhilly wind project and Goonhilly Solar PV projects of £9.5m (2013: £9.1m). We recorded a pre-tax profit of £2.9m (2013: £5.8m).

Our central administration costs were held in line with inflation at £1.9m (2013: £1.7m). Wind administrative expenses were held in line with prior years at £3.4m (2013: £3.5m). Bio-Power administration increased slightly to £0.8m (2013: £0.6m) due to significant additional resource deployed to develop our fuel collection business to meet the expected fuel demands of our new Bio-Power plant.

Development costs, relating to early stage evaluation of sites, fell in the year to £0.8m (2013: £1.0m), however, the impairment of sites increased to £1.9m (2013: £1m). This is a natural consequence of our drive to grow the development portfolio over the last 3 years, submitting significantly more projects for planning and hence, all other things being equal, the quantum of impairments has risen.

Significant spending on our construction plans for the 10MW St. Breock and 8MW Ramsey II wind farms, the 18MW Whitemoor Bio-Power plant and the 4.5MW Goonhilly Solar PV project, along with investment in our development pipeline, resulted in a net cash decrease of £6.1m (2013: increase of £8.0m) during the year. We closed the year with free cash of £11.0m (2013: £16.1m) along with restricted cash held as security against project finance debt and construction letters of credit of £2.7m (2013: £8.2m).

REG's undiluted net asset value per share increased from 69.4p per share to 71.0 p per share. As a result of this and a generally good performance throughout the business, our proposed final dividend to shareholders has been increased by 10% to 1.65p per share (2013: 1.5p).

Wind

REG's wind fleet delivered a strong performance over the year with excellent turbine availability of 97% complementing good wind speeds, particularly in the important winter months.

Over the year REG submitted 7 projects totalling 54MW into the UK planning system and at the year end 185MW of wind projects were awaiting planning approval. Of particular significance was our success in defeating the legal challenge to our 10MW project at Denzell Downs in Cornwall. The project has now entered procurement and is expected to enter operation midway through 2015.

Political factors currently constraining consent rates for renewable energy schemes in England have led us to rationalise our development activities and focus, as far as possible, on projects elsewhere in the United Kingdom. At the same time we have begun to achieve meaningful savings in total development costs by in-sourcing specialist work previously beyond our capabilities.

Our projects at French Farm (8MW) and Hallburn (12MW) have both received local planning authority resolutions to grant permissions. Although French Farm has subsequently been recovered by the Department of Communities and Local Government for further consideration, we expect it to receive approval in due course. Our single turbine project at Barlborough (0.85MW) also received planning consent and is being readied for construction.

Construction is now underway at St. Breock (10MW) and Ramsey II (8MW), long term non-recourse project finance for both being provided by ING. These projects have been earmarked for sale to the BlackRock Fund after the year end, and hence classified as held for sale at the year end.

High Down in Cornwall (0.5MW) was completed and has been accredited under the UK Feed-in Tariff. During the course of construction, the project was refinanced in partnership with Abundance Generation using crowd funding which facilitates investment by private investors seeking exposure to long term cash flows. This initiative successfully raised £1.2m for REG by the year end and is an approach that may be considered for future projects.

Construction of REG's Orchard End project in Lancashire (4MW) was successfully completed and we have decided to retain this excellent project for our long-term portfolio.

REG Asset Management

Asset management is a growing business and our strategy is to leverage our existing infrastructure and knowledge to manage external party projects. Once again, turbine availability was excellent and our in house operations and maintenance systems proved extremely reliable.

REG Bio-Power

Construction of our 18MW Bio-Power plant at Whitemoor in Yorkshire is nearing completion. This, and future Bio-Power plants will utilise significant quantities of waste cooking oil and we have put a great deal of effort into building the collection and processing infrastructure within REG's oil collection business.

Our fuel strategy is based upon a diversified collection model, sourcing multiple contracts with different counterparties to build supply and price resilience. As a result, annualised oil volumes have increased by 32% to over 2,500 tonnes per annum with the collected price remaining stable over the year. Fuel collection and processing will remain a primary focus for the business with our overall goal of keeping collected volumes running marginally ahead of ongoing requirements.

We believe that UK power prices may increase substantially over the coming years as a result of the major infrastructure upgrades that are required. We believe that owning and operating highly flexible renewable energy plant running on recycled waste should prove a valuable and profitable investment for us.

REG Solar

Our new business, REG Solar, has made sound progress during the year, signing an agreement with the world's largest waste company Veolia to develop large-scale solar projects on Veolia's landfill sites. Further sites within the REG portfolio also have potential for solar development and these opportunities will continue to be assessed. Four sites in total have been submitted for planning approval, with a total capacity of 60MW.

Capital recycling

The sale of our 12MW Goonhilly Downs wind farm to a fund administered by BlackRock, generated cash proceeds of £10.6m and a profit of £9.1m. The disposal was in line with the strategy of selling selected projects, the proceeds being utilised to fund the growth of our own portfolio of renewable energy projects. In common with other projects sold to BlackRock, REG has retained a long-term asset management contract under which we will manage the projects on a day to day basis.

On 30 June 2014, we also sold the Goonhilly Downs 4.5MW solar project, to the BlackRock fund. This disposal realised £5.0m of cash with additional proceeds of £0.7m to be paid upon the completion of commissioning obligations.

Regulatory and political outlook

The Energy Act, which encompasses Electricity Market Reform ("EMR"), puts in place measures intended to attract more than £100billion of investment required to replace the UK's ageing generation and transmission infrastructure and to plan for rising electricity demand. The Act will deliver on the UK Government's objectives of decarbonising energy production, the provision of affordable power and ensuring security of supply.

Under EMR, a new CfD will be introduced that will, over time, replace the existing Renewables Obligation. REG's existing capacity will be unaffected by these changes and will be grandfathered for the duration of the RO. Whilst the RO will remain open for new capacity until March 2017, CfD auctions will take place from this October allowing established technologies, such as onshore wind and larger solar schemes, to compete for long-term contracts. The Government is in the process of finalising the detail of the CfD and we continue to work with them to ensure that onshore wind and solar are supported.

Inevitably, as we approach the next General Election, which has a far from certain outcome, it is impossible to accurately forecast policy implications for the sector. However, onshore wind is, by some way, the cheapest, readily deployable renewable technology. Seeking to divert investment to alternative and significantly more expensive technologies, at the expense of onshore wind, makes little sense and is likely to raise consumer bills unnecessarily. Moreover, onshore wind enjoys strong public support with a recent Department of Energy and Climate Change public attitude survey showing around 70% of the population approving of its use, the continued investment in the UK's cheapest form of renewable will continue to tackle the Governments trilemma of energy security, carbon reduction and value for money energy infrastructure.

Our employees

Since the sale of our Canadian business in 2010, we have built up a team of highly skilled employees that have risen to the challenge of helping the UK meet its onerous long-term energy goals. We are extremely grateful to them for their dedication and endurance, often under very challenging operational and political conditions. We continue to believe that the UK renewable energy sector offers our employees and shareholders a compelling opportunity. We remain focussed on delivering value to our shareholders from our low risk, diversified strategy and in doing so contributing to the UK's energy targets.

Community

REG's approach to improving and maintaining relations with communities hosting renewable energy projects continues to reflect the Government's stated desire that local areas should receive tangible benefits from infrastructure schemes.

The Department for Energy and Climate Change published its Community Energy Strategy in January 2014. Although detail remains elusive as to how this thinking will evolve, REG anticipated the trend by partnering this year with Abundance Generation, a platform to enable individuals to invest in clean power schemes.

During the year we launched a debenture offer for our single turbine High Down scheme in Cornwall, which became operational in February 2014. This initiative, which closed fully subscribed in July 2014, raised £1.5m from 674 individuals, an average investment of £2,225. Following this success, we are exploring further opportunities with Abundance to allow greater direct community participation in our projects.

Community Funds are in place across our operating portfolio of wind farms to support good causes in the local area. Not only do these arrangements contribute valuable assistance to community organisations at a time when traditional sources of funding have become harder to tap, they also help ensure ongoing involvement with stakeholders close to our projects.

A core principle of our Community Fund offer is that local people retain control over how the money is spent, enabling the funds to be tailored specifically to meet local needs and aspirations. Our first solar scheme, at Goonhilly on The Lizard in Cornwall was completed in October 2013. Following consultation with local representatives, we were able to install solar panels at primary schools complete with a display screen demonstrating how much safe and clean power each installation was providing. The financial and environmental benefits flowing from this initiative are a striking example of the best practice principles we will seek to apply as new funds come online in the year ahead in Cambridgeshire, Cornwall, Derbyshire and Lancashire.

Health and Safety

The Board believes that REG's health and safety performance has to be our top priority. Making sure that our employees work in a safe environment is absolutely critical to the credibility and success of our Company. We also operate in an environment where members of the public may come into close proximity to our projects, both during construction and also operation. In this regard, we have undertaken a major exercise with the leading health and safety consultancy ARMSA in order to identify any areas of weakness within the Group. As a result, we have continued to develop our current practices with a particular focus on construction and operation. We have also reviewed REG Bio-Power's operational practices, an area of focus given the vastly increased oil volumes we are now processing. We believe that the current health and safety practices that we are employing will continue to maintain a safe environment both for our own employees and also the wider public.

Employee involvement

The Group recognises the importance of promoting and maintaining good communications with colleagues. Its policy is to keep colleagues regularly informed on matters relating to their employment through a range of bulletins and newsletters covering a wide range of topics. These are supplemented by annual presentations by the senior management team.

Equality and diversity

The Group is committed to promoting diversity and ensuring equality of opportunity for all within the workplace, regardless of race, sex, age, sexual orientation, marital or civil partnership status, pregnancy, religion, belief or disability. The Group is also committed to ensuring that its procedures and selection processes in respect of recruitment, terms and conditions of employment, access to training and promotion and the terms upon which it offers access to facilities and services are free from discrimination.

Future developments

REG's strategy for growth is focussed primarily on our onshore wind and our Bio-Power businesses.

REG Windpower has 25MW of projects with planning consent and which are in construction procurement. A further 20MW is awaiting a decision from the Department of Communities and Local Government. Additionally, we have 165MW of wind projects awaiting planning approval with the majority of these projects expected to receive a decision in the coming financial year, with roughly 30% of these projects falling outside the domain of the Communities Secretary.

REG Bio-Power's target completion of its 18MW Whitemoor project in October 2014 will allow us to optimise the performance of the Bio-Power plant over the next six months, providing valuable insights for construction of our next two projects scheduled for later in 2015. We intend to expand our portfolio to around 100MW of Bio-Power plant over the next two and a half years that will operate a diversified strategy in various segments of the UK power market. The strategy is supported by several years of perfecting our patented process to recover a renewable fuel from waste cooking oil. We are confident that we can continue to expand our oil collection operation to fully supply an extended fleet and our work with Caterpillar has validated the technical acceptability of the fuel for prolonged running hours in stationary engines.

We continue to believe that UK power reserve margins are likely to tighten as the expected closure of older generation plant, mainly coal, places greater strain on existing plant. Much of the UK generation fleet is ageing, in particular its nuclear fleet. Recent generation problems at the Hartlepool and Heysham nuclear plants have highlighted the general fragility of the UK power system and we expect this to result in higher power prices for our wind fleet and potentially greater operation of our bio-power projects.

Our strategy for selling the electricity generated by our projects is to contract forward prices on a relatively short term basis in order that our plant is positioned to benefit in the event that the power markets do tighten.

Our asset management business already provides services to the BlackRock projects and we expect revenues here to grow quickly. This is a relatively low capital intensity business with excellent people and systems already in place. We believe that its services can be leveraged to external clients providing a high quality revenue stream for our shareholders.

REG remains well financed and with two wind projects currently under construction earmarked for sale to our strategic partner we can continue with our goal of building capacity within our wholly owned portfolio of renewable generation plant.

Consolidated Statement of Profit and Loss

For the year ended 30 June 2014

Consolidated Statement of Total Comprehensive Income

For the year ended 30 June 2014

Consolidated Balance Sheet

For the year ended 30 June 2014

Consolidated Statement of Changes in Equity

For the year ended 30 June 2014

Consolidated Cash Flow statement

For the year ended 30 June 2014

Notes

1. Report & Accounts

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the IASB as they apply to the financial statements of the Group for the year ended 30 June 2014. The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 30 June 2014 and are consistent with those applied for the year ended 30 June 2013.

The Group financial statements are presented in Sterling because that is the currency of the primary economic environment in which the group operates. All values are rounded to the nearest thousand pounds (£) except when otherwise indicated.

The financial information in this announcement which was approved by the Board of Directors does not constitute the Group's financial statements for the years ended 30 June 2013 or 2014 but is derived from those accounts.

The auditors have reported on the 2014 financial statements and their report was unqualified and did not draw attention to any matters by way of emphasis.

This preliminary announcement is based on the Report & Accounts which are prepared in accordance with IFRS. However, this announcement does not, in itself, contain enough information to comply with IFRS.

This statement is not being posted to shareholders. The Report & Accounts for the year ended 30 June 2014, together with notice the Notice of Meeting will be posted to shareholders in due course. Further copies will be available on request from, The Company Secretary, Renewable Energy Generation Limited, Elizabeth House, 9 Castle Street, St Helier, Jersey, JE4 2QP, and have been uploaded today to the Company's website www.renewableenergygeneration.co.uk

This document contains forward-looking statements. The forward-looking statements reflect the knowledge and information available to the Group during the preparation and up to the publication of this document. By their very nature, these statements depend on circumstances and relate to events that may occur in the future thereby giving a degree of uncertainty. Therefore nothing in this document should be construed as a profit forecast by the Group.

2. Going Concern

A review of business activity and future prospects of the Group has been covered in the Business & Financial Review.

The strategy of the Group to manage its capital structure with a balance of cash, debt and the recycling of equity through strategic asset sales allows the Group sufficient funds to meet its liabilities as they fall due and allocate cash for onward investment in its growing portfolio of consented renewable energy projects. Debt is secured against operating sites, with a known history of operating costs, the key assumption in satisfying covenants is wind volumes.

In considering the going concern basis of preparation, longer term forecasts are also reviewed by the Board, with the 'base case' financial forecasts revealing no inability to meet financial covenants or repay liabilities. Sensitivity analysis under less favourable scenarios designed to test the point at which the Group will either have insufficient headroom or breach financial covenants have also been prepared and reviewed. The Board considers the selected scenarios as remote, and is comfortable that mitigating strategies are available to the Group to offset liquidity constraints.

Going forward, the preference will be to continue to finance future construction with a combination of equity recycling and debt.

Based on the above considerations and after reviewing in detail the financial position and forecasts, the directors have formed the view that the Group has adequate resources to continue as a going concern for the foreseeable future and has prepared the financial statements on this basis. Principal risks and uncertainties to the Group's business are discussed in more detail in the strategic report contained in the full Annual Report and Financial Statements.

3. Dividends per share

A final dividend of 1.65p per ordinary share, amounting to £1,711,758 was proposed by the Directors at their meeting on 10 October 2014. The proposed dividend has not been recognised as a liability as at 30 June 2014.

The dividend is subject to shareholder approval at the Annual General Meeting on 10 December 2014 and will be paid on 6 January 2015 to shareholders on the record at 12 December 2014. The shares will go ex dividend on 11 December 2014.

4. Events subsequent to the balance sheet date

On 10 October 2014, the Group announced the sale of the 10MW St. Breock and 8MW Ramsey II wind farm projects to BlackRock Renewables UK Limited ("BlackRock") for a total enterprise value of £36.0m.

Under the agreement, BlackRock will assume project debts of £21.0m, once fully drawn, and the Group will receive upfront cash consideration of £13.1m, with a further £1.9m payable following commissioning of the projects in 2015. These funds will be utilised for the future build out of our renewables projects in the coming year.

Also on 10 October 2014, the Group announced that it has signed a term loan facilities agreement with Caterpillar Financial Services for the financing of the 18MW Bio-Power plant at Whitemoor Business Park, near Selby in Yorkshire. The financing is for a total of £4.8m and has a seven year repayment period.

5. Annual General Meeting

The Annual General Meeting will be held at Elizabeth House, 9 Castle Street, St Helier, Jersey, Channel Islands on 10 December 2014 at 9.30 a.m.