Unaudited results for the 12 months ended 31/03/16

30 June 2016

IPSA GROUP PLC

('IPSA' or the 'Company')

Unaudited Results for the 12 month period ended 31 March 2016

IPSA, the AIM and Altx dual listed independent power plant developer, today announces its unaudited interim results for the 12 month period ended 31 March 2016. This further unannounced interim period is provided following the change to the accounting reference date to 30 September as announced on 1 April 2016.

Highlights:

· Revenue of £2.5m (2015 - £3.6m).

· Group loss after tax of £0.56m (2015 - £6.93m loss).

· Sale of Newcastle Cogeneration Pty Limited.

Commenting, Susan Laker, Chairman of IPSA, said:

"These are the last interims for IPSA Group PLC which include the operations of Newcastle Cogeneration (Pty) Limited ("NewCogen") which were sold in February 2016. The Company is now focusing its attentions on the sale of the balance of plant equipment held for sale in Italy and in finding a suitable reverse merger partner to maintain the quotations in London and Johannesburg."

For further information contact:

Peter Earl, Director, IPSA Group PLC +44 (0)20 7793 7676

James Joyce, James Bavister WH Ireland Ltd (Nominated Adviser and Broker) +44 (0)20 7220 1666

Riaan van Heerden, PSG Capital (Pty.) Limited, (South African Sponsors) +27 11 797 8400

Or visit IPSA's website: www.ipsagroup.co.uk 

CHAIRMAN'S STATEMENT

Following the extension of the Company's year-end, I am presenting to the shareholders of IPSA Group PLC (the "Group") a second unaudited interim statement covering the 12 month period to 31 March 2016.

As a result of the disposal of the Group's only operating company Newcastle Cogeneration Pty Limited ("Newcogen") on 29 February 2016, Newcogen's accounts have been included to that date. Since the effects of the disposal were already accounted for in the September Interims, the change in net assets relates to the release of certain provisions held in the Group's books pending completion. These provisions relate to directors' salaries, excess impairment provisions and foreign currency translation reserves that are no longer pertinent to the Company following the disposal of Newcogen.

The Company's financial position remains difficult and uncertain. The Company is reliant upon the forbearance of its creditors and notably EthosEnergy Italia SpA ('Ethos'), whilst it seeks to realise proceeds from the sale of assets held for resale, being ancillary plant held by the Company together with the receipt of funds due from Rurelec PLC in relation to deferred consideration.

The focus of the Company is to realise sufficient funds from these assets to repay all the Company's remaining creditors. However, there can be no guarantee that the Company will be successful in any sale or that the proceeds from the realisation of these assets will be sufficient to repay the creditors and the risk remains that the Company may need to be placed into administration, and consequently the shares will remain suspended.

Following the disposal of the Company's operating business on 29 February 2016, the Company is now an AIM Rule 15 cash shell and is seeking to conduct a reverse takeover. For the Company's shares to resume trading following the clarification of its financial position this would need to happen by 15 September 2016 for the Company to retain its AIM quotation. Furthermore it would need, under the terms of AIM Rule 15, to conclude a reverse takeover by 29 August 2016 to avoid its shares being suspended at that point if its shares had resumed trading prior to this date.

The board of IPSA has continued to focus on the disposal of the balance of plant, the proceeds of which, together with the receipt of the balance of funds due from Rurelec PLC, will be applied first to settle with our largest creditor, EthosEnergy, and our other creditors, who have all continued to show forbearance while we pursue these objectives. We are heavily reliant on the patience of our creditors to continue trading and as a consequence there remains a risk that the Company could be placed into administration if their patience runs out before these objectives can be achieved.

The Company's strategy, which was put in place under the outgoing chairman, continues to be to address the financial uncertainty of the Company as outlined above and to seek out a reverse merger partner prior to 29 August 2016 in accordance with AIM Rule 15.

On behalf of the shareholders I would like to thank the outgoing Chairman, Richard Linnell, and retiring directors Neil Bryson and Mark Otto for their stewardship of the Company over what have proved to be very testing times.

The new board will continue to work vigorously in pursuit of merger opportunities with a view to settling outstanding creditors and providing shareholders with value through a reverse merger that would allow the dual listings to be maintained in the permitted timetable. Although no prospective candidate has been identified, I hope to be in a position to provide shareholders with further information in due course.

I would like to thank creditors, shareholders and the outgoing directors for their support over the period under review.

Susan Laker

Chairman

IPSA GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)

for the 12 month period ended 31 March 2016

IPSA GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (unaudited)

at 31 March 2016

IPSA GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)

for the 12 month period ended 31 March 2016

IPSA GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)

for the 12 month period ended 31 March 2016

Notes to the unaudited Interim Statement for the 12 month period ended 31 March 2016

1. Basis of Preparation

These condensed consolidated interim financial statements do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 31 March 2015 were derived from the statutory accounts for that period which have been delivered to the Registrar of Companies. Those accounts, which contained a qualified audit report, did not contain any statements under Sections 489(2) or (3) of the Companies Act 2006. The financial information contained in this interim statement has been prepared in accordance with all relevant International Financial Reporting Standards ("IFRS") as adopted by the European Union in force and expected to apply to the Group's results for the year ending 31 March 2015 and on interpretations of those Standards released to date.

2. Accounting Policies

These condensed consolidated interim financial statements have been prepared in accordance with the Group's IFRS accounting policies. These policies are set out in the Group's financial statements for the year ended 31 March 2015.

3. Other (Expense)/Income

1 Exchange gains/(losses) arising on the € denominated unpaid balance owing to EthosEnergy Italia SpA ("EthosEnergy") in respect of the refurbishment costs of the Turbines;

2 Storage and insurance costs in respect of the Turbines and balance of plant;

4. Loss per Share

5. Assets Held for Sale

This comprises directors' valuation of the balance of plant which was not sold to Rurelec PLC and is currently available for sale.

6. Trade and other payables

Trade and other payables include:

a) An amount of £3.7 million claimed by EthosEnergy in respect of the balance due for refurbishment work completed in 2008, plus storage charges and interest.

b) An accrual of £0.2 million in respect of remuneration due to the directors and which is subject to a waiver agreed in February 2016.

7. Disposal of Blazeway

The disposal of Blazeway Engineering Limited ("Blazeway") was announced on 28 January 2016 for a total consideration of £1.9m. The sale includes 100% of the share capital of NewCogen, loss making owner of the Group's only operational asset. Under IFRS accounting standards the directors consider this an adjusting event relating to IAS 10 - Events After the Reporting Period, as the Group no longer expects to receive the future cash flows of the disposed entities. It is therefore appropriate that entity and consolidation adjustments are made to the carrying value of Blazeway to reflect the sale proceeds. The directors recognise that following this fundamental disposal, IPSA will become a cash shell and under AIM rule 15 will be deemed to be an investing company.

The Board of Directors approved this interim statement on 30 June 2016. This interim statement has not been audited.

Copies may be obtained from 17th Floor, Millbank Tower, 21-24 Millbank, London SW1P 4QP or from the IPSA website www.ipsagroup.co.uk 

About IPSA:

IPSA Group PLC is a British company established to develop power generation projects in Southern Africa. It is managed by a team with a strong track record in developing power projects worldwide and with considerable experience in Southern Africa.

IPSA floated on the AIM market of the London Stock Exchange in September 2005 and obtained a dual listing on the Altx market of the Johannesburg Stock Exchange in October 2006.

Date: 30 June 2016