12th Feb 2009 13:00
12 February 2009
IPSA Group PLC
Date of announcement of audited results and operating update
IPSA Group PLC ("IPSA" or "the Company") announces that it proposes to release on 20 March 2009 its audited results for the year ended 30 September 2008. The Company is taking this opportunity to provide shareholders with an operating update.
Possible disposal of gas turbines
Given the current financial climate, negotiations in relation to the sale of the four Fiat Avio 501D gas turbines previously intended for its Coega project near Port Elizabeth, South Africa ("the Turbines") since the announcements made on 24 October 2008 and 4 December 2008 have proved more protracted than the Board initially anticipated. The Company confirms that it remains in discussions which may lead to the sale of the Turbines and the form of any such disposal is currently being considered. As before, however, the Company emphasises that any such sale may or may not proceed to completion.
Newcastle co-generation plant
The Company's cogeneration plant in Newcastle, KwaZulu Natal, continues to produce steam for use by its onsite industrial customers, increasing output during January following commencement of supply to Lanxess CISA Pty Limited.
Short term financing
IPSA is a development company and like all development companies it relies on the availability of external financing, principally through the debt markets. The current lending climate is making the job of the Directors far harder than previously anticipated, especially since the end of the Company's last financial year on 30 September 2008.
In the absence of bank lending the Company has received loans of approximately £1,081,000 to date from Independent Power Corporation PLC ("IPC"), a company controlled by Peter Earl (Chief Executive Officer of IPSA), of which Jimmy West (Non-Executive Director of IPSA) is Chairman and Elizabeth Shaw (Chief Operating Officer of IPSA) is also a director.
The Company is in the process of arranging finance to meet its most recent interest payment, which was due on 2nd January 2009, of approximately £330,000 in respect of its senior secured bank loan. IPC has indicated its provisional willingness to consider making available a further loan to IPSA for this purpose. We are very grateful for IPC considering further support at a time when external credit is otherwise hard to obtain.
The Board expects to provide a more detailed update on the status of the activities outlined above in the full year results announcement, which is anticipated to be on 20 March 2009. Shareholders will be updated on any material developments prior to that date, if appropriate.
For further information contact:
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Peter Earl, CEO, IPSA Group PLC: |
+44 (0)20 7793 5615 |
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Elizabeth Shaw, COO, IPSA Group PLC: |
+44 (0)20 7793 5615 |
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John Llewellyn-Lloyd / Sunil Sanikop, Noble & Company Ltd: (Nominated Adviser and Joint Broker) |
+44 (0)20 7763 2200 |
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Allan Piper, Tavistock Communications (UK PR Advisers): |
+44 (0)20 7920 3150 |
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Dino Theodorou / Melissa Harris, PSG Capital (Pty.) Limited: (South African Sponsors) |
+27 (11) 797 8400 |
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Sugitha Naidoo, College Hill (South African PR Advisers): |
+27 (11) 447 3030 |
Or visit IPSA's website: www.ipsagroup.co.uk
Related Shares:
IPSA.L