30th Sep 2009 07:00
30 September 2009
IPSA Group PLC
("IPSA" or "the Company")
Trading update
The Company today releases the following update to shareholders before its year end at close of business today:
1. Newcastle combined heat and power plant
Following our announcement on 23rd July 2009 advising shareholders of the delay in concluding a power purchase agreement with Eskom in accordance with its Medium Term Power Purchasing Programme ("MTPPP") tender, the Company has initiated discussions with a number of private sector parties regarding power offtake arrangements that would allow the Newcastle plant to restart operations. South African news reports also indicate increasing concern about possible power cuts towards the end of the current year and early next. However, no firm agreement for the sale of power has yet been concluded.2. Siemens Westinghouse 501 DU turbines
Further to the 23rd July 2009 announcement, the Company is continuing in its efforts to dispose of the turbines. Independent Power Corporation PLC ("IPC"), a company controlled by Peter Earl, chief executive of IPSA and IPC, is in discussions on a number of proposed Government sponsored projects where, subject to financing being available, the turbines could be deployed in a relatively short time frame. Other fast track projects are also being considered. Shareholders will be informed of any significant developments.
3. Standard Bank loan
As previously communicated to shareholders, the Company's loan from Standard Bank ("The Bank") is set to mature on 2 October 2009, at which date the total indebtedness to the Bank will be approximately £15.8 million. As the Bank is aware, the Company will be unable to make this payment before the sale of one or more of the turbines referred to above. The Bank has reserved its position but has taken no action to enforce security and has indicated that for the moment it supports the actions management is taking to resolve the situation. The Company is grateful for the Bank's continuing support and is taking all steps within its power to realise sufficient assets to ensure repayment in full as soon as possible.
In addition, the loan balance due to IPC is approximately £800,000. This comprises loans which are payable on demand and are on commercial terms.
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 |
|
John Llewellyn-Lloyd / Sunil Sanikop, Noble & Company Ltd: |
+44 (0)20 7763 2200 |
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Dino Theodorou, PSG Capital (Pty.) Limited: |
+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