LONDON (Alliance News) - IPSA Group PLC Friday said it swung to a small pretax profit in its last financial year, boosted by a profit gain from the sale of the last two gas turbines, which it said also enabled it to pay off a majority of its borrowings.
The South Africa-focused power plant developer posted a pretax loss of GBP368,000 for the year ended March 31, compared with a loss of GBP1.9 million last year, after results were this year buoyed by a GBP3.2 million profit gain.
Revenue however, declined to GBP3.7 million, down from GBP4.3 million a year earlier, while the company's operating loss increased to GBP2.35 million, from GBP1.95 million, on the back of higher administrative expenses.
"It was with considerable relief that I was able to report in June that the final two turbines had been sold. The debt and costs associated with these turbines have been a significant drain on shareholder value and with the group's borrowings and creditors now substantially repaid, the board can concentrate on its core business of developing profitable power generation operations in southern Africa," said Chairman Richard Linnell in a statement.
The company said that following completion of the sale of the turbines all external loans were repaid, although since then it has taken on further borrowings to support the planned increase in capacity at Newcastle Cogeneration Pty Ltd, its gas fired plant in Newcastle.
IPSA shares were untraded Friday morning, quoted at 3.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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