20th Oct 2008 08:01
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN
PART IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, OR JAPAN
KEDCO PLC
GREEN ENERGY GROUP ADMITTED TO AIM
Kedco plc ("Kedco" or the "Group"), an Irish-based energy group focusing on green energy production in the UK and Ireland, is pleased to announce that the Group's Ordinary Shares have today been admitted to trading on the AIM market of the London Stock Exchange ("AIM") under the trading symbol KED.
The total number of Ordinary Shares in issue following Admission is 199,446,480 which gives Kedco plc a market capitalisation of approximately €34.9 million at the Admission Price of 17.5 cents per share.
Kedco specialises in the generation of electrical power from sustainable fuel sources. The Group sources technologies (including gasification and anaerobic digestion power plants) for sale to a customer base which comprises medium sized waste operators, local municipal authorities, food companies and agricultural operators. Kedco has identified more than 25 specific opportunities within the UK and Ireland to establish partnerships with these customers to own and operate electrical generation plants which convert waste into energy. Kedco aims to benefit from the long-term recurring revenue streams generated by the sale of the electricity these plants will produce.
Kedco's customer base faces increasing legislative and regulatory cost pressures driven by environmental considerations. The Directors believe that Kedco's proposition offers these customers the opportunity to create a revenue-generating opportunity from waste materials that might otherwise incur a significant disposal cost. The Directors also believe that Kedco's significant experience in sourcing effective technologies and potential partners provides it with an early-mover advantage in the marketplace.
Today's Admission came into effect at 08.00 this morning, Monday 20 October 2008. Deloitte Corporate Finance is acting as Nominated Adviser to the Company. Lewis Charles Securities is acting as Broker to the Company.
Commenting on the Group's Admission to AIM Donal Buckley, Chief Executive of Kedco plc, commented:
"We are delighted and proud to be joining AIM today. We believe that our presence on AIM will raise our profile among new and existing customers, enhancing their understanding of our proposition and its revenue generating opportunities. Our AIM listing will also give us access to international capital markets which will provide additional support as we look to build and expand our business."
Further Information
Further information on the Group and the securities subject to the Admission are contained in an admission document dated 20 October 2008 (the 'Admission Document'). Terms defined in the Admission Document have the same meaning in this announcement. Copies of the Admission Document are available to the public, free of charge, at the registered office of the Group, namely Unit 6, Portgate Business Park, Monkstown, Co. Cork, Republic of Ireland, from the date of this document until at least one month after Admission.
Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information published in the Admission Document, a copy of which is also available on the website of Kedco plc: http://www.kedco.com.
For additional information please contact:
Financial Dynamics - London +44 (0)20 7831 3113
Matt Dixon / Edward Westropp / Alex Beagley
Financial Dynamics - Dublin +353 (0)1 66 33 600
Brendan Murphy
Deloitte Corporate Finance - Nomad +44 (0)20 7936 3000
David Smith / Jonathan Hinton
Lewis Charles Securities +44 (0)20 7456 9100
Kealan Doyle / Nicholas Nicolaides
About Kedco plc
Introduction to Kedco plc
The following information serves as an introduction to Kedco plc, its business model, and its service offering:
The Kedco Group was established in 2005, specialising in the generation of electrical power from sustainable fuel sources. The Group currently comprises two divisions, Kedco Power and Kedco Energy. Kedco Power constitutes the main focus of the Company going forward and specialises in electrical power generation from sustainable fuel sources. Kedco Energy contains a number of ancillary businesses serving industrial and residential customers, all with a renewable energy focus.
Kedco acts as a platform provider, sourcing technologies (including gasification and anaerobic digestion power plants) for sale to a customer base comprising medium sized waste operators, local municipal authorities, food companies and agricultural operators. Kedco intends to establish partnerships with these customers to own and operate electrical generation plants, with the aim of benefiting from the long term recurring revenue streams generated by the sale of the electricity.
Kedco's customers face increasing legislative and regulatory cost pressures driven by environmental considerations. The Directors believe that Kedco's proposition offers customers the opportunity to create a revenue-generating opportunity from waste materials that might otherwise incur a significant disposal cost.
Kedco is not dependent upon any specific technology or supplier and is able to adapt its proposals to the specific needs of the customer. The Directors believe that the Group has acquired extensive knowledge of the technological processes required to convert wood waste and food waste into energy through either gasification or anaerobic digestion technology. Kedco intends to co-invest with its customers in the commercial exploitation of these technologies.
The Directors believe that the proposed projects have the potential to generate revenue streams for the Group in a number of ways including:
the sale of the power-generating plant and associated equipment on which Kedco Power earns a margin;
the sale of the electricity to electricity purchasers via power purchase agreements ("PPAs");
in the UK, the sale of renewable obligation certificates or ROCs arising from the production of green energy;
gate fees in respect of certain types of municipal food waste which are paid by the waste operator; and
the sale of by-products arising from the power conversion process (such as charcoal, compost and fertiliser).
Kedco has established strong links with renewable energy technology suppliers in the USA and Germany. The Board believes it should not be dependent on any single technology supplier and hence Kedco will only enter into exclusivity arrangements when the Board believes a strong commercial justification exists. In this way, the Board believes it minimises the risks in relation to security of supply and technology redundancy. The technologies with which the Group intends to implement its business strategy are based on either gasification or anaerobic digestion processes.
Kedco has identified more than 25 specific opportunities for Kedco Power within the UK and Ireland of which seven have signed, non-binding letters of intent with potential partners. The possible projects range in size from 1MW to 16MW and represent a mixture of gasification and anerobic digestion technologies. Whether the identified projects become operational will depend upon a number of factors including the entry into of agreements with joint venture partners, securing commercially acceptable investment and financing terms and receiving the appropriate planning consents. Nevertheless, the Directors believe that, based on discussions held with potential joint venture partners, funders and the relevant planning authorities to date, Kedco Power is well placed to benefit from the current interest in the renewable energy sector.
It is intended that each project will be held in discrete project joint ventures ("PJVs"). It is proposed that each PJV will own the relevant power-generating assets and be financed via a mixture of equity and debt. Kedco intends to co-invest in the equity required for each project with the selected partner. In certain circumstances where the Directors feel it is merited, the selected technology provider may also invest in the equity of the PJV.
Kedco and its PJV partners are currently engaged in the planning process in relation to three projects amounting to approximately 6MW of electrical power in aggregate.
Potential competitors to Kedco include technology providers, existing waste operators or platform providers similar to Kedco. However, the Directors believe that Kedco has an early-mover advantage, and a favourable model of partnering with small to mid-scale waste operators, who do not necessarily have the resources or expertise to source the technology directly.
The Directors believe that the current regulatory regimes in Ireland and the United Kingdom support the Kedco business model in that they seek to limit the amount of waste sent to landfill sites whilst encouraging the adoption of renewable energy processes via the provision of various incentive schemes.
The Directors believe that there is a significant early-mover advantage to be gained in the marketplace and therefore intend to accelerate the development of opportunities wherever possible.
The Directors envisage that the Company will seek to raise further funds in early 2009 to allow the commencement of construction of various plants. The level of funds raised will directly impact the number of projects that Kedco Power can execute and hence the speed with which Kedco can expand its business.
In addition to its power generation business, Kedco, through Kedco Energy, is involved in a number of green energy businesses including the supply of biomass boilers to domestic and commercial markets and the production of Forest Stewardship Council approved wood and biomass products.
The Directors of Kedco plc
The Board of Kedco plc consists of the following Directors as laid out below:
William Kingston, 37, Non-executive Chairman
William Kingston is one of the four original founders of Kedco, joining the Board in March 2005 as Chairman. William operates one of the largest dairy farms in Ireland based in County Cork. William is also president of the Irish Grassland Association, a body focussed on research and dissemination of information to the Irish agricultural industry. William was a board member of the Food Safety Authority of Ireland from 2002 to 2006 and West Cork Leader from 2005 to 2007.
Donal Buckley, 33, Chief Executive
Donal Buckley is one of the four original founders of Kedco. Since its incorporation in March 2005, Donal has played a key role in the development of the Company. Prior to his involvement with Kedco, Donal was a divisional manager with SWS Farm Services Limited, an Irish company specialising in wind energy. Donal graduated from University College Dublin in 1997 with a degree in Agricultural Science.
Gerry Madden, 49, Executive Director of Finance
Gerry Madden joined Kedco in May 2007 as the Executive Director of Finance. Prior to this, Gerry operated his own consultancy practice between 1998 and 2007 advising companies on merger and acquisition activities. Gerry is currently a Non-executive Director of Ecom Interaction Services Limited, a subsidiary of Newcourt plc. Gerry is a fellow of the Institute of Chartered Accountants in Ireland having qualified as an accountant with KPMG in 1987. Gerry holds a degree in Commerce from University College Cork.
Edward Barrett, 41, Non-executive Director
Edward Barrett is one of the four original founders of Kedco. Eddie established International Livestock Genetics Limited, an Irish importer and distributor of bovine genetics based in County Cork and has been managing director since 1993. In addition, Eddie is a director of Platinum Asset Management Ltd, an investment company specialising in the renewable energy sector.
Diarmuid Lynch, 43, Non-executive Director
Diarmuid Lynch is one of the four original founders of Kedco. Diarmuid operates one of the largest dairy farms in Ireland based in County Cork. From 1998 to 2000, Diarmuid served on the board of the Blackwater Trading Company, a group involved in the procurement of agricultural inputs, services and feedstock on behalf of farmers in the Blackwater region of Ireland.
Donal O'Sullivan, 64, Non-executive Director
Donal O'Sullivan joined the board of Kedco in August 2007. He was the chairman and an executive director of Esso Ireland Limited between 1986 and 2001. He was also a director of the Irish Petroleum Industry Association, the representative body of companies in Ireland engaged in the importation, distribution and marketing of petroleum products. Donal held the position of Managing Director of HOYER Ireland Limited and was a board member of HOYER in the UK from 2001 to 2006. HOYER Ireland is a subsidiary of HOYER GmbH, a company involved in the provision of specialist logistics services to the petroleum, chemical, gas and foodstuff sector.
Alf Smiddy, 46, Non-executive Director
Alf Smiddy joined the board of Kedco in May 2007 as a Non-executive Director. Alf has worked for brewery firm Beamish & Crawford plc for 20 years until October 2008 and was latterly its chairman and managing director. Alf is chairman of the Irish Brewers Association and Plato Ireland Network Limited, an Irish business development network for small and medium sized enterprises. In addition, Alf is a director of the Cork Airport Authority plc and the Cooperation Ireland Cork Committee. Alf holds a degree in Commerce from University College Cork and is a fellow of the Institute of Chartered Accountants in Ireland having qualified as an accountant with Price Waterhouse.
Reasons for Admission
The Directors believe that Admission will raise the profile of Kedco, increase awareness of its brand and business in the UK and Ireland and provide access to international capital markets. Following Admission, the Directors expect the Company to undertake a fundraising during early 2009.
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