20th May 2009 15:49
20 May 2009
Renewable Energy Holdings plc ("REH" or the "Company")
Wind operations update and CETO revenue
Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of proven and innovative renewable energy technologies is pleased to update the market on trading.
Wind operations update
In the update on 27 February 2009, the Board noted that February had seen an improvement in the wind regime at its German wind farms; however, despite the high operational availability of plant, this has not been sustained since March. As such the Board now expect, unless there is outperformance against the German wind index over the remainder of the year, that this part of the business will be behind their expectations in the current year.
The Board remains confident in their original assessment of the Company's German wind farm assets and the German wind market as a whole and they believe that these unusual wind conditions are an anomaly to the German 20-year average wind index.
Further re revenue from CETO
Following the announcement of 11 May 2009 regarding the proposed sale of REH's CETO technology to Carnegie ("the CETO Transaction"), the Board expects that, conditional upon completion of the CETO Transaction and upon advice from the Company's auditors, the licencing revenues from Carnegie previously treated as deferred income will be released through the profit and loss account in the year ending 31 December 2009 recognising £3.9m in this manner.
REH's Chief Executive Officer, Mike Proffitt, said
"The whole sector has seen light winds across Europe and the UK during this period and it is not considered that this anomaly changes the 20-year average. With this in mind we still see Germany and mainland Europe as one of our key strategic focuses for wind power going forward. We are pleased that the deferred income that will be released upon completion of the CETO transaction later in the year will more than offset the effect of light winds in terms of the current year."
For further information, please contact:
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Renewable Energy Holdings plc |
Tel: 01624 641199 |
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Mike Proffitt, Chief Executive |
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Ambrian Partners - Nominated Adviser & broker |
Tel: 020 7634 7405 |
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Richard Swindells / Andrew Craig |
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Financial Dynamics |
Tel: 020 7831 3113 |
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Jonathon Brill/Billy Clegg/Edward Westropp/Alex Beagley |
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