LONDON (Alliance News) - IPSA Group PLC Friday said it reported a pretax loss and lower revenues for the year ended March 31, as it failed to sell its remaining two power turbines until after the end of the financial year.
The independent power-plant developer with operations in southern Africa said that since the year-end it managed to sell the two turbines for GBP16.1 million, to power generation company Rurelec. It said that now it can now focus on expanding power generation operations in South Africa.
It reported revenues of GBP4.3 million for the full year, almost the same as its GBP4.4 million in revenues a year earlier, partly due to a slowdown in electricity and steam sales. However, the group said that its Newcastle co-generation plant delivered a reliable performance during the year.
The group said it reported a pretax loss of GBP1.9 million in the financial year, compared with a pretax profit of GBP5.6 million in the previous year, largely due to an impairment charge of GBP1 million, and a number of other one-off items, including legal costs associated with the loans on the turbines, and costs associated with the repayment extension of some loans. The year earlier also benefited from a GBP6.1 million profit from asset sales.
"It was with considerable relief that I was able to report in June that the final 2 turbines had been sold. The debt and costs associated with these turbines have been a significant drain on shareholder value and, with all of the Group's borrowings and the majority of the Group's creditors now repaid, the board can concentrate on its core business of developing profitable power generation operations in southern Africa," said Chairman Richard Linnell.
IPSA Group shares closed at 3.50 pence Friday, up 0.12 pence, or 3.7%.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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