Final Results

9th Mar 2009 07:00



09.03.09

9 March 2009

Renewable Energy Holdings plc

("REH" or "the Company")

Preliminary results for the twelve months ended 31 December 2008

Renewable Energy Holdings plc (AIM: REH), the AIM quoted developer and operator of proven and innovative renewable energy technologies, is pleased to announce its preliminary results for the twelve months ended 31 December 2008.

Financial Highlights

Revenue increased by 38% to £5.31 million (2007 restated: £3.83 million)

Loss before tax reduced by 7% to £1.99 million (2007 restated: loss £2.13 million), (Following new accounting policy)

CETO development payments of £2.79 million (2007: £0.75 million) made by Carnegie Corporation

Group ended the year with cash balances of £6.5 million (2007: £7.1 million), following German project debt repayment of £2.6m during the year

New accounting treatment of CETO development payments from Carnegie Corporation, as announced on 27 February 2009, mean reported revenues in 2008 will be lower by the amount of the CETO license payments from Carnegie during the period of £2.79 million. This technical change in treatment advised does not however impact the funds invested in CETO's development under the CETO licensing arrangements with Carnegie and therefore the progress of CETO towards commercial realisation.

Operational Highlights

40.5MW installed wind power capacity in Germany at two sites

Full year production from the 8MW project at Kirf, Germany 

Landfill gas in Wales business increased turnover by 83% to £0.51 million (2007: £0.28 million) from an increase in volume of electricity and a power purchase agreement

A pipeline of commercial sites for CETO in the Northern Hemisphere have been identified by REH and its partner EDF Energies Nouvelles SA 

100 MW of new projects in Poland and Wales making encouraging progress 

Management team strengthened with appointment of Paris Mouratoglou, Chairman of EDF Energies Nouvelles SA as a NED and  recruitment of a Business Development Director, Senior Project Engineer and a Science & Intellectual Property Manager

Commenting on the results, Mike Proffitt, Chief Executive of REH, said:

"2008 has been another year of strong growth and development, utilising REH's solid asset portfolio, in terms of project base and financial and human resources. We have enjoyed a full year of production from the 8MW Kirf extension to our German Wind operations, increased production at our Welsh landfill gas facility, and our Polish projects are making good progress.

"Our proprietary CETO wave energy technology is making excellent progress in the Northern and Southern Hemispheres, with the help of our partners Carnegie Corporation and EDF Energies Nouvelles SA.

"The Group starts the year in robust shape with generating assets covering our central cost base by some margin and continued sustained growth across our portfolio. We look forward to the coming year as a further period of growth for the business."

  

For further information please contact:

Mike Proffitt, Chief Executive
Renewable Energy Holdings plc	Tel: 01624 641199
Richard Swindells / Andrew Craig
Ambrian Partners - Nominated Adviser & broker to REH	Tel: 020 7634 7405
Jonathon Brill/Edward Westropp/Alex Beagley
FD	Tel: 020 7831 3113

Renewable Energy Holdings plc

("REH" or "the Company")

Unaudited preliminary results for the year ended 31 December 2008

Chairman's Statement

Once again I am happy to be reporting positive results to the Group's members. The year ended 31 December 2008 is the fifth financial statement I have reported on and each report has seen the Group growing in size and capability. This year I am pleased to report a growth in the Group's revenues of £1.5 million and net assets of £5.2 million (£3.5 million and £8.6 million before the change in accounting policy explained in the Chief Executive Officer's report, and more fully in Note 2). We have maintained the ability to cover our corporate costs with income generated by operating assets, and we have cash in the bank.

Renewable energy has continued to be the focus of Governments around the world and much emphasis has been placed on this sector in the UK and Europe. Whilst there can be no guarantee that Government policies will not change in the future, it is clear that to accomplish the various targets that have been set across the Kyoto member countries for carbon emission reductions, it will be necessary, especially in the UK, to see further support for the renewable energy sector. Recent announcements supporting this view are a two Renewable Obligation Certificate (ROC) incentive for marine technologies in UK waters followed by a six ROC incentive for marine technologies in Scotland.

Further legislative support across Europe for wind and solar power and recent news of subsidies for renewable energy in Poland, all bode well for us.

As reported by the CEO, the Group's CETO wave energy technology appears to be now just months away from commercial demonstration. As with all new technologies some development risk remains at this stage, however, the Board consider that the CETO technology is robust and believes that, if successful, it represents an enormous opportunity for growth globally.

Many islands held hostage to imported heavy fuel oil, will see CETO as one of the few clean technologies available to them, and countries with extensive coast lines, such as the USA, will look to marine technologies to harness that vast natural resource.

We are all aware of the current challenges we are facing in terms of the global economy, and the knock on effect that downturns of this size and nature have on companies of all shapes and sizes. At REH, I believe we are well positioned to face these challenges. We have a Group with cash in the bank, no corporate debt, project facilities in place with Standard Chartered Bank, and operating assets producing positive cash flow. We believe it is companies like ours that are best placed to weather the storm such as this current economic crisis, and indeed to be able to act decisively as opportunities are created.

Sir John Baker

Chairman

9 March 2009

  

Chief Executive Officers Report 

Operating Assets

I am pleased to report that in its fourth operating year, the Group has again grown its operating revenues by £1.5 million in aggregate.

In Germany, the increase of electricity sales by £1.1 million to a total of £4.6 million came mainly from having a full year of production from the 8MW expansion at Kirf and from the resolution of the technical issues that had reduced production in earlier years. The revenue increase would have been ever greater but for the Group's wind assets in Germany suffering during the latter part of the year, as a result of unseasonably light winds caused by a slow moving high pressure weather system across Northern Europe. Against this sales increase of £1.1 million our operating costs increased only by £268,000. The group currently has 40.5MW of installed capacity in Germany at its two sites and expects that the net contribution from Habscheid's 4.7MW will commence in H1 2009.

In Wales, our landfill gas business produced sales of £510,000, up £232,000 on 2007, while operating costs increased by only £16,000 year on year. This resulted from both an increase in the volume of electricity produced and from a new power purchase agreement which took effect from the beginning of the year.

In summary, cash generated by the operational side of the business exceeded corporate expenses by £290,000, resulting in a loss before tax of £2.0 million after charging depreciation and amortisation of £2.3 million (2007: Loss before tax £2.1 million after charging depreciation and amortisation of £1.8 million).

The Group ended the year with cash balances of £6.5 million (£7.1 million the previous year end), after paying off project debt in Germany of £2.6 million during the year.

Development

During the year, we have entered into agreements to develop 100MW of wind power capacity; 30MW in Poland and 70MW in Wales, UK. Both projects offer excellent returns as they are in windy areas with estimated load factors of 32% and 36% respectively.

We expect Poland to be fully permitted during 2009 with Wales some eighteen months later. These projects have two important impacts on the Group and its growth strategy. First, they offer geographic diversity, presenting a natural hedge against weather risk and, second, they represent a combined energy output estimated at around 300,000MWh (mega watt hours) per year, some five times the Group's current output.

CETO Wave Energy Technology

CETO, the Group's unique wave energy technology, moved successfully through critical development milestones during 2008.

Some internal design features in the pump itself were modified to improve performance and these modifications were fabricated and the pumps put to test in real sub-sea conditions off Perth, Western Australia. Their performance was up to expectation and specification. Additionally, a means of shedding load from the Buoyant Actuator (the energy capture device) has been designed and tested as a means of safeguarding the equipment from excessive wave or storm conditions.

A realistic programme for the continued development and roll out of the technology is now in place which should see the first commercial demonstration unit operational by the end of 2009. 

A pipeline of commercial sites for CETO in the Northern Hemisphere has been developed by CETO Development Company Limited, our joint venture development vehicle with EDF Energies Nouvelles SA. These sites include Bermuda, West Coast Vancouver Island, Canada and others under review, all of which offer excellent wave regimes and exposure to high economic returns.

REH investors have been de-risked during the development cycle of the CETO technology through commercial arrangements put in place with EDF Energies Nouvelles SA in the Northern Hemisphere and Carnegie Corporation in the Southern Hemisphere.

This year REH expects to deploy the first commercial wave energy technology capable of swift and economic global deployment.

Accounting Policy

During the development cycle of CETO, the directors adopted an accounting policy considered at the time to be most appropriate. In 2005 and 2006 we wrote off research and development costs to the Group's Income Statement. During 2007, the Board reached the conclusion that the CETO project had satisfied the International Accounting Standards, such that future development costs should be capitalised. In 2007 the commercial agreement with Carnegie Corporation began. Under this Agreement, Carnegie paid for REH's CETO development costs in return for receiving the right to use the technology in the Southern Hemisphere. The Directors of REH took the view that non refundable payments received under this agreement should be recognised as income over the period of the development work. At the time of the 2007 financial statements, the Group's auditor, BDO Stoy Hayward, agreed with this accounting policy.

 BDO have now advised, following a review of the revenue recognition policy that, whilst the Carnegie payments are still recognised as income, they should be recognised not in the year of payment, but over the life of the licence agreement.

This change of accounting policy does not affect the Group's cash position, future cash flows, timing of the commercial launch of CETO, or its relationship with Carnegie Corporation Limited. The change does, however, require a restatement of the audited accounts for the year ended 31 December 2007 and the unaudited accounts for the six months ended 30 June 2008. 

Staff

During 2008, the Company grew its management staff by the inclusion of senior level personnel in the field of new business development, engineering and science. These positions enable the Group to look enthusiastically into 2009, at the build up of its operational asset portfolio and the timely deployment of CETO. 

Current year

The Group starts the year in robust shape with generating assets covering our central cost base by some margin and with an experienced team in place to continue the development of business in 2009 and beyond. 

We have also strengthened the Board following the period end, with the appointment of Paris Mouratoglou, Chairman of EDF Energies Nouvelles SA, as a Non Executive Director effective 1st February 2009.

At a time when a number of developers without sufficient capital and development resources are struggling to continue with their projects, we are seeing a number of projects that the Group may look to progress. As such, we look forward to the coming year as a further year of growth for the Group.

Michael J Proffitt

Chief Executive Officer

9 March 2009

Renewable Energy Holdings plc

Unaudited consolidated income statement for the year ended 31 December 2008

 

		2008	2007 As Restated
	Note	£	£
Revenue & gross profit	3	5,307,954	3,834,910
Other operating income		59,220	296,040
Administrative expenses		(6,234,698)	(5,288,439)
		________	________
Loss from operations		(867,524)	(1,157,489)
Finance costs		(1,215,391)	(1,148,699)
Finance income		288,640	177,458
Share of losses in associates		(195,660)	-
		_________	_________
Loss before tax		(1,989,935)	(2,128,730)
Tax expense	4	86,710	(72,732)
		________	________
Loss after tax attributable to the		(1,903,225)	(2,201,462)
equity holders of the parent		_________	_________
Basic and diluted loss per share	5	(2.91)	(4.27)
		__________	__________

  Renewable Energy Holdings plc

Unaudited consolidated statement of changes in equity for the year ended 31 December 2008

 

	Share Capital	Share Premium Reserve	Convertible Loan Notes	Foreign Exchange Reserve	Share Based Payment Reserve	Merger Reserve	Available For Sale Reserve	Retained Earnings	Total Equity
	£	£	£	£	£	£	£	£	£
Balance at 31 December 2007	619,586	24,261,411	-	769,678	1,009,119	4,410,000	-	(6,489,559)	24,580,235
Change in accounting policy (note 2)	-	-	-	-	-	-	-	(750,000)	(750,000)
	______	________	________	________	________	________	________	________	________
Restated balance	619,586	24,261,411	-	769,678	1,009,119	4,410,000	-	(7,239,559)	23,830,235
Changes in equity 2008
Available for sale investments valuation losses	-	-	-	-	-	-	(34,066)	-	(34,066)
Exchange difference arising on translation of foreign operations	-	-	-	3,810,976	-	-		-	3,810,976
	______	________	________	________	________	________	________	________	________
Net income recognised directly in equity	-	-	-	3,810,976	-	-	(34,066)	-	3,776,910
Loss for the year	-	-	-	-	-	-	-	(1,903,225)	(1,903,225)
	______	________	________	________	________	________	________	________	________
Total recognised income and expense for the year	-	-	-	3,810,976	-	-	(34,066)	(1,903,225)	1,873,685
Issue of share capital	36,000	1,764,000	-	-	-	-		-	1,800,000
Issue of convertible loan notes	-	-	1,500,000	-	-	-		-	1,500,000
Equity share options issued	-	-	-	-	37,841	-		-	37,841
	______	________	________	________	________	________	________	________	________
Balance at 31 December 2008	655,586	26,025,411	1,500,000	4,580,654	1,046,960	4,410,000	(34,066)	(9,142,784)	29,041,761
	______	________	_________	________	________	________	______	________	________

  Renewable Energy Holdings plc

Unaudited consolidated statement of changes in equity for the year ended 31 December 2007

 

	Share Capital	Share Premium Reserve	Foreign Exchange Reserve	Share Based Payment Reserve	Merger Reserve	Retained Earnings As Restated	Total Equity
	£	£	£	£	£	£	£
Balance at 31 December 2006	452,666	16,583,898	(82,169)	984,715	4,410,000	(5,038,097)	17,311,013
	______	________	________	________	________	________	________
Changes in equity 2007
Exchange difference arising on translation of foreign operations	-	-	851,847	-	-	-	851,847
	______	________	________	________	________	________	________
Net income recognised directly in equity	-	-	851,847	-	-	-	851,847
Loss for the year	-	-	-	-	-	(2,201,462)	(2,201,462)
	______	________	________	________	________	________	________
Total recognised income and expense for the year	-	-	851,847	-	-	(2,201,462)	(2,201,462)
Issue of share capital	166,920	7,677,513	-	-	-	-	7,844,433
Equity share options issued	-	-	-	24,404	-	-	24,404
	______	________	________	________	________	________	________
Balance at 31 December 2007	619,586	24,261,411	769,678	1,009,119	4,410,000	(7,239,559)	23,830,235
	______	_________	________	________	________	_________	_________

Renewable Energy Holdings plc

Unaudited consolidated balance sheet at 31 December 2008

		2008	2007
	Note		As Restated
		£	£
Non-current assets
Property, plant & equipment	6	44,635,539	35,321,316
Intangible assets	7	11,718,616	8,538,143
Investments in equity accounted associates		294,340	-
Available for sale investments		221,711	-
Current assets
Trade and other receivables		2,384,473	1,610,283
Cash and cash equivalents		6,451,580	7,115,053
		________	________
Total current assets		8,836,053	8,725,336
		________	________
Total assets		65,706,259	52,584,795
		________	________
Current liabilities
Trade and other payables		727,683	1,257,958
Tax liability		-	80,442
Other financial liabilities	8	2,688,317	1,938,338
		________	________
Total current liabilities		3,416,000	3,276,738
Non current liabilities
Financial liabilities	8	29,358,234	24,623,478
Deferred tax liability		263,283	104,344
Deferred licence fee income	2	3,626,981	750,000
		________	________
Total non current liabilities		33,248,498	25,477,822
		________	________
Total liabilities		36,664,498	28,754,560
		________	________
NET ASSETS		29,041,761	23,830,235
		_________	__________

 

 Renewable Energy Holdings plc

Unaudited consolidated balance sheet at 31 December 2008 (Continued)

		2008	2007
			As Restated
		£	£
Capital and reserves attributable to equity holders of the company
Share capital		655,586	619,586
Share premium reserve		26,025,411	24,261,411
Convertible loan notes		1,500,000	-
Foreign exchange reserve		4,580,654	769,678
Share based payment reserve		1,046,960	1,009,119
Merger reserve		4,410,000	4,410,000
Available for sale reserve		(34,066)	-
Retained earnings		(9,142,784)	(7,239,559)
		________	________
TOTAL EQUITY		29,041,761	23,830,235
		_________	__________

  Renewable Energy Holdings plc

Unaudited consolidated cash flow statement for the year ended 31 December 2008

	2008	2007
		As Restated
	£	£
Operating Activities
Loss before tax	(1,989,935)	(2,128,730)
Adjustments for :
Depreciation	2,174,834	1,721,008
Amortisation	105,358	105,358
Foreign exchange gain/(loss)	1,029,270	(1,438,204)
Finance income	(288,640)	(177,458)
Finance expense	1,215,391	1,148,699
Share of loss in associate	195,660	-
Equity settled share based payment	37,841	24,404
	_________	_________
Cashflow from operating activities before changes in working capital	2,479,779	(744,923)
Increase in trade and other receivables	(774,190)	(339,017)
Increase/(decrease) in trade and other payables	2,516,654	(2,424,028)
	_________	_________
Cash generated from/(absorbed by) operations	4,222,243 _________	(3,507,968) _________
Income taxes paid	(4,739)	(80,675)
	_________	_________
Cash flows from operating activities	4,217,504	(3,588,643)

 

 Renewable Energy Holdings plc

Unaudited consolidated cash flow statement for year ended 31 December 2008

		2008	2007
	Note	£	£
Cash flows from operating activities (brought forward)		4,217,504 _________	(3,588,643) _________
Investing activities
Acquisition of property, plant & equipment		(622,708)	(8,074,344)
Acquisition of intangible assets		(3,285,831)	(1,046,695)
Investment in associate		(490,000)	-
Acquisition of investments held for sale		(255,777)	-
Finance income received		288,640	177,458
		________	________
		(4,365,676)	(8,943,581)
		________	________
Financing activities
Issue of ordinary shares		1,800,000	8,346,000
Issue of convertible loan notes		1,500,000	-
Issue costs		-	(501,567)
Proceeds from bank borrowing		-	11,442,177
Issue costs for bank borrowing		-	(761,785)
Repayment of bank borrowing		(2,599,910)	(651,970)
Finance costs paid		(1,215,391)	(924,367)
		________	________
		(515,301)	16,948,488
		________	________
Increase/ (decrease) in cash and cash equivalents		(663,473)	4,416,264
Cash and cash equivalents at 1 January		7,115,053	2,698,789
		________	________
Cash and cash equivalents at 31 December	9	6,451,580	7,115,053
		________	________

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008

1 Basis of preparation

The unaudited financial information set out in this preliminary announcement does not constitute the company's statutory accounts for the years ended 31 December 2008 and 31 December 2007. The financial information for the year ended 31 December 2007 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies as restated for the change in accounting policy. The auditors have reported on those accounts; their report was unqualified and did not contain a statement under section 15 (4) or 15 (6) of the Isle of Man Companies Act 1982. The statutory accounts for the year ended 31 December 2008 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the company's annual general meeting.

2 Change in accounting policy

In July 2007 the company agreed to enter into a licence agreement conveying rights to Carnegie Corporation for the use of CETO technology in the Southern Hemisphere excluding Ile De la Reunion. In order to obtain those rights, Carnegie, under the terms of the licence agreement must pay to REH up to £4.75M during the technology development period.

If Carnegie use their rights to the Intellectual Property (IP) they must also pay a licence fee of 2% of the total capital cost of each commercial project and 2.5% of the annual earnings from each project.

During 2007, Carnegie paid £750,000 and this, with the agreement of the Auditors, was treated as income in the 2007 financial statements.

During 2008, Carnegie paid a further £2,800,000, and in keeping with the prior years accounting treatment, this was initially accounted for as revenue.

The auditors have now taken the view that this accounting treatment is inappropriate and accordingly, the directors have recorded the payments as deferred income, to be recognised over the life of the licence, a treatment which has the concurrence of the auditors. The deferred income is now shown in the non-current liabilities section of the balance sheet and accordingly, last year's payment of £750,000 has been restated.

However, under no conditions are these payments refundable to Carnegie.

The full effect of the above changes has been summarised below:

	As previously reported	Adjustment	As restated
	£	£	£
Year ended 31
December 2007
Revenue & gross profit	4,584,910	(750,000)	3,834,910
Loss for the year	1,451,462	750,000	2,201,462
Non-current liabilities	24,727,822	750,000	25,477,822
Total equity	24,580,235	(750,000)	23,830,235

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008 (Continued)

3  Segment information 

The Group's primary reporting format for reporting segment information is business segments, and the segments are defined as Head Office, CETO development, Windfarm and Landfill gas. This split coincides with a geographical split of activities; Head Office being on the Isle of Man, CETO development taking place in Australia, Windfarms being in Germany and Landfill gas being in Wales.

2008	Head Office	CETO Development	Windfarm	Landfill gas	Total
	Isle of Man	Australia	Germany	Wales
	£	£	£	£	£
Income
Revenue	155,505	-	4,642,774	509,674	5,307,954
Finance income	232,533	16,686	38,988	433	288,640
Other income	52,208	7,013	-	-	59,220
Expenses
Operational expenditure	2,524,661	-	1,225,169	220,986	3,970,815
Finance costs	209	-	1,215,182	-	1,215,391
Depreciation & amortisation	3,935	-	2,092,622	167,326	2,263,883
Share of losses in associate	195,660	-	-	-	195,660
	__________	________	_______	_______	_________
Total profit/(loss) before	(2,284,219)	23,699	148,789	121,795	(1,989,935)
taxation	__________	________	_______	_______	_________
Balance Sheet
Assets
Property, plant &  equipment	618,772	-	43,888,848	127,919	44,635,539
Intangible assets	-	9,892,404	-	1,826,212	11,718,616
Investment in associate	294,340	-	-	-	294,340
Investments available for sale	221,711	-	-	-	221,711
Current assets	4,160,676	364,365	4,118,835	192,177	8,836,053
Liabilities	(197,287)	(3,658,632)	(32,689,371)	(199,208)	(36,664,498)
	_________	________	________	________	_________
Net assets	5,098,212	6,598,137	15,318,312	2,027,100	29,041,761
	_________	_________	_________	_________	_________
Capital expenditure	622,708	-	-	-	622,708
Development expenditure	-	3,285,831	-	-	3,285,831
	_________	_________	_________	_________	_________

  Renewable Energy Holdings plc

Notes forming part of the preliminary results for the year ended 31 December 2008 (Continued)

Segment information (Continued)

All intercompany balances and transactions are excluded from the above analysis.

2007	Head Office	CETO Development	Windfarm	Landfill gas	Total
	Isle of Man	Australia	Germany	Wales
	As Restated	As Restated			As Restated
	£	£	£	£	£
Income
Revenue	6,027	37,031	3,513,491	278,091	3,834,910
Finance income	97,315	7,539	72,604	-	177,458
Other income	-	296,040	-	-	296,040
Expenses
Operational expenditure	2,299,740	-	956,897	205,435	3,462,072
Finance costs	30	141	1,148,528	-	1,148,699
Depreciation & amortisation	-	-	1,643,952	182,415	1,826,367
	________	________	_______	_______	_________
Total profit/(loss) before taxation	(2,196,428)	340,739	(163,282)	(109,759)	(2,128,730)
	________	________	_______	_______	_________
Balance Sheet
Assets
Property, plant &  equipment	-	-	35,115,121	206,195	35,321,316
Intangible assets	-	6,606,574	-	1,931,569	8,538,143
Current assets	6,193,103	429,346	1,967,534	135,353	8,725,336
Liabilities	(101,510)	(935,903)	(27,597,758)	(119,389)	(28,754,560)
	________	________	________	________	_________
Net assets	6,091,593	6,100,017	9,484,897	2,153,728	23,830,235
	________	________	________	________	________
Capital expenditure	-	-	7,992,823	81,521	8,074,344
Development expenditure	-	1,046,695	-	-	1,046,695
	________	________	________	________	________

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008 (Continued)

4 Tax expense

	2008	2007
	£	£
Current tax expense
Income tax on loss for the period	12,302	61,885
Adjustment in respect of prior years	(99,012)	-
Deferred tax expense
Origination and reversal of temporary differences	-	10,847
	_______	_______
Total tax	(86,710)	72,732
	_______	_______

The reasons for the difference between the actual tax charge for the period and the standard rate of income tax in the Isle of Man applied to losses for the year are as follows:

	2008	2007
		As Restated
	£	£
Loss before tax	1,989,935	2,128,730
Expected tax charge based on the standard rate of income tax in the Isle of Man of 0% (2007: 0%)	-	-
Unutilised tax losses	-	123,770
Different tax rates applied in overseas jurisdictions	12,302	(61,885)
Adjustment in respect of prior years	(99,012)	-
	_______	_______
	(86,710) _______	61,885 _______

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008 (Continued)

5 Loss per share

	2008	2007
		As Restated
	£	£
Numerator
Loss used in basic and diluted EPS	1,903,225	2,201,462
	________	________
Denominator
Weighted average number of shares used in basic and diluted EPS	65,294,735 ________	51,540,532 ________

The loss figure used in this calculation is the loss for the year.

For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group's dilutive potential ordinary shares are in respect of the share options and convertible loan notes issued during the year. The effect of these potential dilutive instruments is anti-dilutive, and as such they have been omitted from the calculation of dilutive loss per share.

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008 (Continued)

6 Property, plant and equipment

	2008  Plant and Machinery	2007  Plant and Machinery
	£	£
Cost
1 January	38,548,043	27,884,326
Additions	622,708	8,074,344
Exchange differences	12,283,406	2,589,373
	_________	_________
31 December	51,454,157	38,548,043
	_________	__ _______
Accumulated Depreciation
1 January	(3,226,727)	(1,206,397)
Charge for the year	(2,174,834)	(1,721,008)
Exchange differences	(1,417,057)	(299,322)
	_________	_________
31 December	(6,818,618)	(3,226,727)
	_________	___ ______
Net Book Value
31 December	44,635,539	­­35,321,316
	_________	_________
1 January	35,321,316	26,677,929
	_________	__ ______

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008 (Continued)

7 Intangible assets

	Landfill gas rights	In process research and development	Development costs	2008 Total	2007 Total
	£	£	£	£	£
Cost
1 January	2,107,167	5,559,878	1,046,695	8,713,740	7,667,045
Additions	-	-	3,285,831	3,285,831	1,046,695
	_________	_________	_________	_________	_________
31 December	2,107,167	5,559,878	4,332,526	11,999,571	8,713,740
	_________	__ _______	__ _______	__ _______	_ _______
Accumulated Amortisation
1 January	(175,597)	-	-	(175,597)	(70,239)
Charge for the year	(105,358)	-	-	(105,358)	(105,358)
	_________	_________	_________	_________	_________
31 December	(280,955)	-	-	(280,955)	(175,597)
	_________	__ _______	__ _______	__ _______	_ _______
Net Book Value
31 December	1,826,212	5,559,878	4,332,526	11,718,616	8,538,143
	_________	_________	_________	_________	_________
1 January	1,931,570	5,559,878	1,046,695	8,538,143	7,596,806
	_________	__ _______	__ _______	__ _______	_ _______

The cost of landfill gas rights are being amortised over the period to 30 April 2026.

Development costs are assessed for impairment on the basis of an estimate of the assets value in use.

  Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2008 (Continued)

8 Financial assets and liabilities-numerical information 

Maturity of borrowings

The carrying amounts of borrowings, all of which are exposed to cash flow or fair value interest rate risk, are repayable as follows:

Group	31 December 2008	31 December 2007
	£	£
In less than one year	2,688,317	1,938,338
In more than one year but not more than two years	2,724,786	2,011,281
In more than two years but not more than three years	2,747,306	2,020,048
In more than three years but not more than four years	2,704,519	2,078,068
In more than four years but not more than five years	2,560,342	1,926,578
In more than five years	18,621,281	16,587,503
	_________	_________
	32,046,551	26,561,816
	_________	_________

There is an undrawn loan facility of £116,744,652 at 31 December 2008 (2007: £63,903,754).

 

 

Renewable Energy Holdings plc

Notes forming part of the financial statements for the year ended 31 December 2008 (Continued)

9  Notes supporting cash flow statement

Group	2008	2007
	£	£
Cash and cash equivalents comprises:
Cash available on demand	3,292,806	4,820,301
Short-term deposits	3,158,774	2,294,752
	________	________
	6,451,580	7,115,053
	________	________

£2,995,511 (2007: £2,744,256) of cash and cash equivalents held in Germany are restricted under the terms of the loan agreement covering borrowings.

ENDFR EAXDPESSNEFE

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Related Shares:

REH.L