IPSA.L Share News (IPSA)

Power plant developer IPSA swung to a half year profit following the sale in June of its two remaining turbines.Group profit after tax came to £1.96m in the six months through September, up from a loss of £1.3m last year.The Africa-focused company said it recognised a profit of £3.2m on sale of turbines. The balance of the purchase price owing on the sale of the turbines (£4.2m) at the balance sheet date is expected to be paid in the first half of 2014, well before the June 2015 longstop date in the contract. Revenue during the period fell slightly to £2.1m from £2.5m a year earlier, as electricity sales declined to offset a rise in steam sales. The group is working to improve capacity at its Newcastle site to provide a platform for growing the business in South Africa."With a program in place now to install additional capacity at our Newcastle site, starting early in 2014, we will be able to deliver the maximum we can under the existing PPA with ESKOM and position the company for securing future PPAs," said Chairman Richard Linnell. Shares held at 3.38p at 16:43 on Friday.RD