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LONDON (Alliance News) - Active Energy Group PLC Tuesday reported a widened loss in the first half of 2014 following the restructuring of its Ukrainian port operations, as it looks to focus on expanding its core Black Sea business.
Active reported a pretax loss of GBP1.0 million in the six months ended June 30, compared to a GBP622,000 loss in the first half of 2013. The widened loss is attributable to increased administrative costs of GBP1.3 million, caused by the use of third-party accounting service providers and the re-structuring of its Mykolaiv port operations, up from GBP741,000 in the same period in 2013.
Revenue increased to GBP6.4 million in the first-half from GBP106,000 in the same period in 2013, following the acquisition of Nikofeso in June 2013. But this revenue brought with it GBP6.1 million in cost of sales.
"Active Energy Group is now a very different company from the one that began this period. The additions of the Canadian joint venture and our pelleting technology on top of our existing wood chip businesses have significantly expanded the worth and potential of the company," said Chief Executive Richard Spinks.
Active is an international supplier of biomass for energy, wood chip for green energy power generation and for industrial MDF manufacturing, biomass fuel granules and granulating systems, and forestry development and management services.
The company relocated its port facilities in southern Ukraine from Mykolaiv to Yuzhny. The port is a modern, secure and efficient port facility with access to all-year shipping lanes and the capacity to expand its core Black Sea business from, it said.
Active are "well placed to further expand the Black Sea core business", Spinks said.
"We are looking to install additional chipping capacity at Yuzhny to meet increasing demand, not only from our current customers, but also from the new business initiatives that we are currently pursuing," he said.
It has finished its integration of its new woodchip business and has made progress in developing initiatives in both its new pelleting operation and Canadian joint venture with KAQUO Forestry and Natural Resources Development Corporation announced in July.
It now stands ready to deliver on its current opportunities, which have the potential to realise significant growth in shareholder value, it said in a statement.
"Going forward, it remains pivotal that volume and margin growth expectations continue to be met and that central costs are driven down consistent with the needs of the business and its capacity to develop and manage multiple operating channels," he added.
In a separate statement, Active said that Colin Hill is stepping down by mutual consent from the board and his role as non-executive chairman with effect from October 1. The process of recruiting a replacement has already begun, and a further announcement will be made in due course, said the company.
Actives shares were up 1.7% to 3.00 pence per share Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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