Interim Results

Aggregated Micro Power Holdings plc

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

Interim Results for the six months ended 30 September 2017

Aggregated Micro Power Holdings plc (AIM: AMPH), a distributed energy company specialising in the sale of wood fuels and the financing and installation of distributed energy projects including biomass boiler ESCOs (energy supply contracts), stand by power generation and battery storage facilities, is pleased to announce results for the six months ended 30 September 2017.

Financial Highlights

· Group revenues increased 217% to £11.2m (H1 2016: £3.5m)

· Gross profit increased 296% to £2.7m (H1 2016: £0.7m)

· Loss before tax £2.44m (H1 2016: £1.96m)

Operational Highlights

· In May AMP assisted AMPIL 2 in raising £29.46m for further boiler and CHP projects, and future grid balancing projects, which means AMPIL 2 has over £50m invested or available for future investment

· In June AMP acquired 50.1% of Highland Wood Energy Limited and is now providing a nationwide service and maintenance service available to all our biomass heat and CHP customers

· In September AMP acquired the wood pellet customer base and assets from CPL

· AMP's Projects Division has a strong pipeline including 120 MWs of gas-fired peaking plants and battery storage facilities currently seeking planning permission of which 90 MWs has pre-qualified for the forthcoming Capacity Market auction

Post Period End

· In October AMP acquired a leading wood pellet supplier Billington Bioenergy Limited from Drax

· In October the 21 MW gas-fired peaking plant in Kent was completed and successfully commissioned

· In November AMP completed a £3.7m placing of new ordinary shares at 98.5 pence per ordinary share

· The Board expects full year revenues to be in excess of £30m

Richard Burrell, Chief Executive of Aggregated Micro Power Holdings plc, said:

"Revenues are increasing as we expect and our combined fuels business now has over 4,000 biomass heat and CHP customers. Our recent wood fuels acquisitions and seasonal profits will be more fully reflected in the second half of our financial year when demand for heating is at its greatest. Our projects division, also weighted to the second half of our financial year, is making significant progress and has a strong and growing pipeline underpinned by the successful growth of funds provided by third party investment vehicles such as AMPIL 2. The recent sharp increase in gas prices following two gas supply infrastructure failures in Europe demonstrates the fragility of our energy supply infrastructure and further strengthens the case for large processed heat and electricity users in the U.K. to install biomass CHP for on-site generation of heat, steam and electricity."

Contacts

Aggregated Micro Power Holdings plc 020 7382 7800

Neil Eckert, Executive Chairman

Richard Burrell, CEO

Helene Crook, Investor Relations

Haggie Partners 020 7562 4444

Peter Rigby / Brian Norris

finnCap Ltd 020 7220 0500

Ed Frisby / Simon Hicks (Corporate Finance)

Stephen Norcross / Sultan Awan (Corporate Broking)

About Aggregated Micro Power Holdings plc

The AMP Group was established to develop, own and operate renewable energy generating facilities. It specialises in the sale of wood fuels and in the installation of distributed energy projects. AMP's wholly owned subsidiary Forest Fuels sells high quality wood chip and wood pellet to end customers throughout the UK, while its projects division installs biomass boiler and biomass CHP systems for a wide range of applications and customers. AMP is also active in developing projects for stand-by power generation and battery storage facilities which aim to balance the transmission grid at times of peak demand.

www.ampplc.co.uk

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Executive Chairman's Statement

This Interim Report is in respect of the six month period to 30 September 2017.

Interim Results

Group revenues increased to £11.2m (compared to £3.5m for the six months to 30 September 2016), gross profit increased to £2.7m (compared to £0.7m for the six months to 30 September 2016) and loss after tax increased to £2.4m (compared to a loss after tax of £1.9m for the six months to 30 September 2016).

These Interim Results do not yet fully reflect the positive impact of our most recent wood fuels business acquisitions as most of this turnover and future income is anticipated to be generated in the second half of the financial year (October through to March) where the heating season is at its busiest. Similarly, our project development business expects to complete or reach financial close on a number of larger projects during the second half of the financial year which is in line with our prior year experience. The write off of receivable relates to an amount advanced for a single project which was not awarded a Contract for Difference.

Net assets as at 30 September 2017 were £8.4m (31 March 2017: £10.4m). The balance sheet does not include any recognition for future deferred development fees that may be due from Aggregated Micro Power Infrastructure 2 plc ("AMPIL 2").

Interim Review

AMP operates through three business divisions: Wood Fuels; Project Development; and Investments.

AMP's wholly owned subsidiary Forest Fuels sells high quality wood chip and wood pellet to end customers throughout the UK in the form of fuel only contracts, heat contracts and/or fuels plus operation and maintenance. Included in the segmental results for the wood fuels business unit is the Group's 50.1% interest in Highland Wood Energy Limited ("HW Energy") which was acquired on 28 June 2017. As well as supplying fuel to customers in Scotland, HW Energy's principal activity is to provide operation and maintenance services to AMPIL 2 and third party customers who own biomass boilers. Following the acquisition, the HW Energy service and maintenance activities are now being expanded throughout the UK. On 4 September 2017, Forest Fuels acquired the wood pellet customer base and assets of CPL which supplies approximately 20,000 tonnes of premium wood pellet per annum to end customers. After the period end, on 25 October 2017, AMP also announced the acquisition of 100% of Billington Bioenergy Limited ("BBE") from Drax. BBE supplies around 40,000 tonnes of premium wood pellet per annum to end customers. In aggregate, the Wood Fuels business unit will now supply fuel to over 4,000 customers which is expected to equate to circa 180,000 tonnes of wood pellet and 70,000 tonnes of wood chip per annum.

AMP's Project Development division develops, manages and facilitates financing of distributed energy projects focusing on biomass heat and biomass CHP for a wide range of applications and customers. We have developed projects for AMPIL 2 which owns one of the largest biomass boiler portfolios in the UK. On 25 May 2017 it was announced that AMPIL 2 had closed its latest fund raise amounting to £29.46m. This demonstrates that we now have the opportunity to access increasing amounts of new capital for biomass assets from high quality institutional and other investors. In aggregate, AMPIL 2 currently has over £50m invested or available for biomass heat and CHP and for grid balancing and battery storage projects. With biomass assets, our strategy is to offer all Forest Fuels customers the ability to sell their existing boiler systems to AMPIL 2 as well as to develop new, larger installations with commercial users of processed heat. We also develop and finance gas-fired peaking plants and battery storage facilities to provide reserve power and frequency stability which aim to balance the transmission grid at times of peak demand. We have recently completed the construction of a 21 MW gas-fired peaking plant at Kingsnorth in Kent and the project was commissioned in time for winter trading. This project was funded by Triple Point Investment Management LLP. The projects business has now assembled a portfolio in excess of 120 MWs of gas-fired peaking plants and battery storage facilities which are currently seeking planning permission. AMP's strategy is to continue developing its own project pipeline and to work with other project developers and third party infrastructure investors to generate a wide range of development fees from different projects.

AMP Investments aim is to grow assets under management and to build up off-balance sheet deferred development fees and carried interest together with making long term equity investments in companies aligned to our corporate strategy. It also includes the overhead costs of the Board and related PLC expenses. AMP owns 28.8% of IncubEx, which is a business set up to design and promote financial products in environmental, energy, power and weather markets. On 2 August 2017, IncubEx announced a global partnership with EEX which is part of Deutsche Bourse and in its first two months of operating this partnership, IncubEx has made strong progress towards becoming operational.

Full Year Outlook

On 3 November 2017, AMP announced a successful placing of new Ordinary Shares raising gross proceeds of £3.7m at a price of 98.5 pence per Ordinary Share. This placing was supported by existing and a number of new investors and was achieved at a small premium to the prevailing mid-market share price.

Proceeds from the placing provide balance sheet strengthening and are being deployed to provide working capital for the Wood Fuels business unit following the two most recent acquisitions, including to finance the planned ramp up in stocks to meet winter heating season demand from customers. In addition, cash proceeds from the placing will also be set aside to provide collateral and grid deposits for our growing pipeline of grid balancing projects as well as to invest in a follow-on fund raise currently being contemplated by IncubEx.

The Board expects group turnover to be in excess of £30m for the full year as the second half of the financial year is when the heating season is at its busiest. With the strength of our position in the wood fuels market and our growing pipeline of project developments in biomass and grid balancing, we look forward to the future with confidence.

Neil Eckert, Executive Chairman

14 December 2017

Independent Review Report to Aggregated Micro Power Holdings plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2017 which comprises the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated cash flow statement, the consolidated statement of changes in equity and the related notes.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independent Review Report to Aggregated Micro Power Holdings plc

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2017 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.

BDO LLP

Chartered Accountants and Registered Auditors

Location

United Kingdom

Date

BDO LLP is a limited liability partnership registered in England and Wales (with registered number

OC305127).

Condensed consolidated statement of comprehensive income

For the six months ended 30 September 2017

Company number: 08372177

Condensed consolidated statement of financial position

As at 30 September 2017

The financial statements were approved by the Directors on 14 December 2017 and signed on their behalf by:

Richard Burrell, Chief Executive Officer

Condensed consolidated statement of changes in equity

As at 30 September 2017

Condensed consolidated statement of cash flows

 For the six months ended 30 September 2017

Notes to condensed consolidated financial statements

For the six months ended 30 September 2017

1. Basis of preparation

The external auditors are required to rotate the Senior Statutory Auditor responsible for the company audit every five years. In certain circumstances, it is permissible to extend that tenure by up to two years. The Board believes that, as the Group integrates its newly acquired businesses, the continuity of the Senior Statutory auditor during this critical phase for the Group merits having continuity of the Senior Statutory Auditor that this extension provides.

BDO LLP and the Company have agreed to extend the term of the Senior Statutory Auditor for a sixth year in line with the guidance as to how long a responsible individual may remain the Senior Statutory Auditor or a client as set out in the ISAs UK. There are specific provisions relating to the extension of tenure for listed companies with which the Company complies

The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 March 2017 and which will form the basis of the financial statements for the year ending 31 March 2018.

A number of new and amended standards have become effective for periods beginning on 1 January 2016, however none of these is expected to materially affect the Group.

The comparative financial information for the year ended 31 March 2017 in this interim report does not constitute statutory accounts for that year. The Group's results are considered to be affected by seasonal variations and do not yet fully reflect the positive impact of our recent wood fuels business acquisitions as most of this turnover and future income is anticipated to be generated in the second half of the financial year (October through to March) where the heating season is at its busiest.

2. Use of estimates and judgements

There have been no material revisions to the nature and amount of changes in estimates of amounts reported in the financial statements for the year ended 31 March 2017.

Notes to condensed consolidated financial statements (continued)

For the six months ended 30 September 2017

3. Segmental information

For management purposes, the Group is organised into business units based on its products and services. The results have been prepared using consistent accounting policies for each segment as detailed in Note 1 to the consolidated financial statements for the year ended 31 March 2017.

The Group was exclusively focused on UK operations. The performance of each segment is reported below.

Notes to condensed consolidated financial statements (continued)

For the six months ended 30 September 2017

4. Property, plant and equipment

Notes to condensed consolidated financial statements (continued)

For the six months ended 30 September 2017

6. Intangible assets

Notes to condensed consolidated financial statements (continued)

For the six months ended 30 September 2017

9. Loss per share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the year. The convertible options are considered anti-dilutive because the exercise of these would have the effect of reducing the loss per share.

10. Business combination during the period

On 28 June 2017, the Group completed on the acquisition of 50.1% of the share capital of Highland Wood Energy Limited ('HW Energy'), a leading biomass business, for a consideration of £500,000. The acquisition was made to further strengthen the Group's position in the wood fuel market.

As at 28 June 2017 HW Energy had a net asset value of £828,574. The intangibles have been assessed as part of a fair value exercise at a Group level and are therefore excluded from the opening book value in the table below. The Group has recognised the provisional fair values of identifiable assets and liabilities as follows:

Notes to condensed consolidated financial statements (continued)

For the six months ended 30 September 2017

11. Events after the reporting period

On 31 October 2017, the Group completed on the acquisition of 100% of the share capital of Billington Bioenergy Limited (BBE), a supplier of premium wood pellet to commercial customers, from Drax Smart Supply HoldCo Limited, for a consideration of £2.0m comprising £1.6m in new ordinary shares of 0.5 pence in the issued share capital of the Company ("Ordinary Shares") issued at a price of 98.5 pence per Ordinary Share and £0.4m in cash.

The Directors consider it impractical to disclose any financial effect that may be required under IFRS 3 Business Combinations due to this acquisition being finalised at the same time of drafting these consolidated financial statements.