23rd Dec 2005 12:06
Renewable Energy Holdings plc23 December 2005 Renewable Energy Holdings plc ("REH" or the "Company") Preliminary Results for period ended 30 June 2005 REH, the investor and operator of proven and innovative renewable energytechnologies, announces preliminary results for period 30 June 2005, the group'smaiden results since listing on AIM in February 2005. Highlights: • Flotation on AIM in February - £10 million raised before expenses • Strong management team in place and office established in Douglas, Isle of Man • Purchase of 41.7MW of wind assets in Germany - grid connection made on 12 December and power now flowing to the German grid • Purchase of rights to methane gas from a landfill site in Wales • Further Placing to raise £2.5m before expenses • Strategic alliances with Boeing, Climate Change Capital, Standard Chartered and NEL Power • CETO prototype device successfully launched and tested - commercial design and production engineering to be completed in 2006 John W Baker CBE, Chairman of REH, said: "The Company has substantially invested its original capital within therenewable energy sector on the basis we outlined when the Company was launched.Reinforced by concerns about high fossil fuel prices, climate change and energysecurity, the sector itself is proving to be one of strong interest in both thecorporate and domestic communities in the UK and more widely. The Board isaccordingly optimistic that its focused approach to investment in the renewableenergy market offers significant prospects for profitable growth." Contacts: Renewable Energy Holdings plc Binns & Co PR LtdMike Proffitt, Chief Executive Paul McManusTel: 01624 641 199 Mob: 07980 541 893 Chairman's Statement On behalf of the Board, it gives me great pleasure to be writing the firstchairman's statement for the Company. In our start-up year much effort has gone into establishing the REH as abusiness, and also securing good corporate governance in order to properlyoversee the Company's affairs in shareholders' interests. The management team is fully in place. The Board meets bi-monthly. audit andremuneration committees have both been established with appropriate terms ofreference and are active. Attention has been given to the control frameworkwithin which management operates, including formal delegations. The Company has substantially invested its original capital within the renewableenergy sector on the basis we outlined when the Company was launched. Reinforcedby concerns about high fossil fuel prices, climate change and energy security,the sector itself is proving to be one of strong interest in both the corporateand domestic communities in the UK and more widely. The Board is accordinglyoptimistic that its focused approach to investment in the renewable energymarket offers significant prospects for profitable growth. John W Baker CBE Chairman Chief Executive Officer's Report A start-up year for any company is a busy period and REH has been no exception.This, however, has been a deeply rewarding time as the organisational structurehas gone from planning to reality. Since inception in February, REH has assembled a strong team of professionalsand established offices in Douglas, Isle of Man. In July and August 2005 the Company signed agreements to purchase wind assets inGermany with a total capacity of 41.7MW, and in October 2005 rights to methanegas from a landfill site in Wales. Turbine towers are currently being erected in Germany and substantial completionis expected by the end of 2005. This will see power flowing into the Germangrid and the project earning its first revenues. Strategic alliances have been developed with Boeing Corporation, Climate ChangeCapital Plc, Standard Chartered Bank and NEL Power. These alliances havealready brought value to the Company and enabled our rapid route to market. At the time of the Company's floatation, £1.5million was put aside to continuethe commercialisation of the Company's wave to energy device, CETO. Since then and with approximately half the budget spent, a prototype device hasbeen launched, taken to a sea-bed site, and tested successfully. Water has beenreported onshore at pressures of 620 - 850 PSI. This proves the concept andpaves the way for further commercial design and production engineering, which isexpected to be completed in 2006 with the remaining half of the budget. Weremain on plan to develop a commercial CETO by the end of 2006. Michael J Proffitt Chief Executive Officer Consolidated income statement for the period from 8 October 2004 to 30 June 2005 Note £ Revenue & gross profit - CETO development expenses 535,809Administrative expenses 988,722 _______ Loss from operations 2 (1,524,531) Finance cost - Finance income 135,631 _______ Loss before tax (1,388,900) Tax expense - _______ Loss after tax (1,388,900) _______ Basic and diluted loss per share 4 (8.86p) _______ Consolidated statement of recognised income and expense for the period from 8October 2004 to 30 June 2005 £ Loss after tax (1,388,900) Foreign exchange loss on retranslation ofoverseas operations (9,778) _______ Total recognised income and expense for the year (1,398,678) _______ Consolidated balance sheet at 30 June 2005 Note £ Non-current assets Intangible assets 5 5,559,878 Current assetsTrade and other receivables 255,952Cash and cash equivalents 7,220,479 Total current assets 7,476,431 _______ Total assets 13,036,309 _______ Current liabilitiesTrade and other payables 134,929 _______ Total current liabilities 134,929 Total liabilities 134,929 _______ TOTAL NET ASSETS 12,901,380 _______ Capital and reserves attributable toequity holders of the company Share capital 290,000Share premium reserve 13,112,425Foreign exchange reserve (9,778)Share based payment reserve 897,633Retained earnings (1,388,900) _______ TOTAL EQUITY 12,901,380 _______ Consolidated cash flow statement for the period from 8 October 2004 to 30 June2005 Note £ Operating activities Net loss from ordinary activities (1,524,531)Adjustments for:Foreign exchange gains -Equity-settled share based payment 445,233 _______ Operating loss before changes inworking capital and provisions (1,079,298)Increase in deferred expenditure (196,569)Increase in trade and other receivables (58,107)Increase in other financial assets (1,276)Decrease in trade and other payables 12,273 _______ Cash absorbed from operations (1,322,977) Income taxes paid - _______ Cash flows from operating activities (1,322,977) Investing activitiesAcquisition of intangible asset (561,300)Interest received 135,631 (1,748,646) Financing activitiesIssue of ordinary shares 10,000,000Issue costs (1,030,875) ______ Increase in cash and cash equivalents 7,220,479 _______ Notes to the Preliminary Announcement 1. Basis of preparation The financial information set out in this announcement does not constitute theCompany's statutory accounts for the period from 8 October 2004 to 30 June 2005,but is extracted from the audited accounts for the period ended 30 June 2005. 2. Loss from operations £This has been arrived at after charging: Staff costs (see note 3) 801,185Exchange differences -Research and development costs - CETO 535,809Operating lease expense 30,227Audit fees 23,327Fees paid to the company's auditors for non-audit servicesprovided to the company and UK subsidiaries - ________ Audit fees include an amount of £22,500 in respect of the company. 3. Staff costs £Staff costs (including directors) comprise:Wages and salaries 316,774Defined contribution pension cost 7,068Share-based payment expense 445,233Employer's national insurance contributions and similar taxes 32,110 _______ 801,185 _______ 4. Loss per share £ Numerator Loss used in basic and diluted EPS 1,388,900 ______ Denominator Weighted average number of shares used in basic and diluted EPS 15,684,827 ______ The loss figure used in this calculation is the loss for the period. Total share options issued 4,925,000. The effect of any share options granted are anti-dilutive. On 2 September 2005 4,166,667 ordinary shares were issued at 60 pence per share. 5. Intangible assets In-process development £Additions - Through business 5,559,878 combinations _______ Closing net book value 5,559,878 _______ The development project addition is on acquisition, rather than thecapitalisation of internally generated costs. The asset is not yet availablefor use. The Group, through its investment in Seapower Pacific Pty Limited, is developinga wave energy device. In-process development costs are all in respect of thisproject. 6. Dividends The Directors do not propose a payment of a dividend. The Preliminary Announcement was approved by the board of directors on 23December 2005. The full set of accounts will be sent to shareholders and willbe available from the offices of Corporate Synergy Plc, 30 Old Broad Street,London EC2N 1HT This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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