Interim Results

30th Sep 2008 07:00



Energy Asset Management Plc

("EAM" or the "Company")

Interim Results for the Six Months Ended 30 June 2008

Highlights

The Group has:

enjoyed record levels of activity;

begun to benefit from its high operational gearing;

traded profitably since February 2008, before accounting for share option costs ; and

continued to achieve contract awards.

Chairman's Statement

The business continues to negotiate and win long term contracts; the historical mobilization delays experienced previously on these contracts no longer seem to apply and momentum is now gathering to a level where meter installations are being completed at a rate currently in excess of 450-500 per month and which is steadily increasing. This sustained increase has allowed EAL's operating profit to remain positive during most months of the first half of the year. This trading improvement has had a dramatic impact on reducing the loss incurred in the comparable period of last year. 

Financial Results

In the six months to 30 June 2008 the Group's loss after taxation is £42,488 (before a share option charge of a further £56,573) compared to a loss for the first six months of 2007 of £584,910 representing a total loss per share to 30 June 2008 of 0.03p (2007- loss 0.25p).  The directors are confident that the orders currently in the pipeline will ensure this modest loss will be recovered before the year-end.

Current Activity

The demand for Meter Asset Management ("MAM") and Automatic Meter Reading ("AMR") services continues to grow both from Gas Suppliers and Gas Users and the Group continues in negotiation to secure further significant contracts. The Group has also demonstrated its ability to complete the installation of metering systems and to successfully commission these systems to the satisfaction of its clients.

The Group continues to develop its multi-utility energy solution addressing Gas, Electricity and Water remote Automatic Meter Reading.

The Future

The Directors are satisfied with the progress being made and remain enthusiastic about the prospects for the business especially given the importance now being attached by energy users, the government and the public to the efficient use of energy. We look forward to reporting further progress.

John Shaw

Non-Executive Chairman

30 September 2008

Financials

Energy Asset Management Plc Consolidated Income Statement  for the six month period ended 30 June 2008 Note 30-Jun 30-Jun 31-Dec 2008 2007 2007 £ £ £ Unaudited  Unaudited  Audited Revenue 816,699 261,288 667,860 Cost of sales (268,942)  (136,072) (360,374) Gross Profit 547,757 125,216 307,486 Operating expenses (649,359) (767,877) (1,363,668) Operating loss (101,602) (642,661) (1,056,182) Finance Income 2,541 1,178 4,893 Loss before taxation (99,061) (641,483) (1,051,289) Taxation - - - Loss after taxation (99,061) (641,483) (1,051,289) Retained loss for the period (99,061) (641,483) (1,051,289) Attributable to Equity holders of the Company (99,061) (648,928) (1,058,734) Minority interest - 7,445 7,445 Retained loss for the period (99,061) (641,483) (1,051,289) Loss per share basic and diluted (p) 2 (0.03) (0.25) (0.39)

Energy Asset Management Plc Consolidated Balance Sheet As at 30 June 2008 30-Jun 30-Jun 31-Dec 2008 2007 2007 £ £ £ Unaudited  Unaudited  Audited Assets Non current assets Property, plant and equipment 1,153,631  173,090  476,092  Intangible assets- Goodwill 745,475  745,475  745,475  Total non current assets 1,899,106  918,565  1,221,567  Current assets Trade and other receivables 465,883  203,847  95,200  Cash and cash equivalents 215,648  108,882  17,101  Inventories 136,125  124,395 131,984  Total current assets 817,656  437,124  244,285  Total Assets 2,716,762  1,355,689  1,465,852  Equity and liabilities  attributable to equity holders of the Company Share capital and reserves Issued capital 3,327,684  2,787,684  2,787,684 Share premium account 1,145,899  1,163,929  1,163,929 Reserves (3,568,956) (3,173,235) (3,526,468) Total Equity 904,627  778,378  425,145  Non-current liabilities Borrowings 1,050,587 - 425,374 Current liabilities Borrowings 70,649 - 40,605 Trade and other payables 690,899 577,311  574,728  Total current liabilities 761,548 577,311 615,333 Total equity and liabilities 2,716,762 1,355,689  1,465,852

Energy Asset Management Plc Statement in Changes in Equity               Share Share Retained Minority Total             Capital Premium Earnings Interest Equity             £ £ £ £ £                       6 months to June 2007               Balance at 1 January 2007   2,467,684 1,083,929 (2,580,880) (7,445) 963,288 Loss for the period attributable to equity holders - - (648,928)  - (648,928) Loss for the period attributable to minority interest   - -  - 7,445  7,445 Share based payments      - - 56,573  - 56,573 Shares issued 320,000 80,000 -  - 400,000                       Balance at 30 June 2007     2,787,684  1,163,929 (3,173,235)  - 778,378                                             6 months to June 2008             Balance at 1 January 2008   2,787,684  1,163,929 (3,526,468) - 425,145 Loss for the period attributable to equity holders  -  - (99,061)  - (99,061) Share based payments      -  - 56,573  - 56,573 Shares issued 540,000 -  -  - 540,000 Share issue costs - (18,030) -   (18,030)                       Balance at 30 June 2008     3,327,684  1,145,899 (3,568,956)  - 904,627

Energy Asset Management Plc Consolidated Cash Flow Statement For the six months ended 30 June 2008             30-Jun   30-Jun   31-Dec             2008   2007   2007             £   £   £             Unaudited   Unaudited   Audited Cash flows from operating activities             Operating loss for the year as per income statement     (101,602)   (642,661)   (1,056,182) Depreciation of non current assets       29,696   5,832   22,576 Share based payments           56,573   56,573   113,146             (15,333)   (580,256)   (920,460) Movements in working capital                 Increase in trade and other receivables       (370,683)   (150,512)   (41,865) Increase in inventories           (4,141)   (115,035)   (122,624) Increase in trade and other payables       116,171   462,929   460,346 Net cash outflow from operations       (273,986)   (382,874)   (624,603)                       Cash flows from investing activities               Interest received           2,541   1,178   4,893 Purchase of non current assets     (707,235)   (158,517)   (478,263) Net cash outflow from investing activities     (704,694)   (157,339)   (473,370)                       Cash flows from financing activities               Net proceeds from issue of equity shares     521,970   400,000   400,000 Inflow from new leases     683,614   -   475,853 Capital element of finance lease rental payments     (28,357)   -   (9,874) Net cash flows from financing activities     1,177,227   400,000   865,979                       Net increase/(decrease) in cash and cash equivalents   198,547   (140,213)   (231,994)                       Cash and cash equivalents at the beginning of period   17,101   249,095   249,095                       Cash and cash equivalents at end of period   215,648   108,882   17,101

Notes to the unaudited financial statements

1. Basis of Preparation

The interim financial statements of the Group for the six months ended 30 June 2008 have been prepared on a going concern basis in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRSs) endorsed by the European Union and the AIM Rules for Companies. The interim financial statements have been prepared on a basis consistent with the accounting policies set out in the Group's consolidated annual financial statements for the year ended 31 December 2007. They have not been audited, do not include all the information required for full annual financial statements, and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2007. The report of the auditors on those consolidated annual financial statements was unqualified. This information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.

As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information.

2. Loss per share 

The loss per share has been calculated by dividing the loss after taxation of £99,061 by the weighted average number of Ordinary Shares in issue for the period of 328,021,130 (2007- 263,917,554). The diluted loss per share is the same as the basic loss per share as the options that were in existence have an anti-dilutive effect on the loss per share and therefore have not been taken into account..

3. Dividend

No dividend is recommended. 

4. Share capital 

At 30 June 2008 the Company had 332,768,383 Ordinary shares of 1p each in issue. (2006 - 278,768,383).

For further information please contact:

Energy Asset Management Plc

John Shaw, Non-Executive ChairmanTel: 07973 826613Alan McKeating, Managing DirectorTel: 07843 231372

Ruegg & Co Limited

Gavin BurnellTel: 0207 584 3663

ENDIR SEFFDUSASELU

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