MCAP13 May 2020 19:37
Key areas of focus
We currently have investments in six 20MW FlexGen sites successfully operating with our investment partner, Rockpool. As announced on 29 August 2019 the Company received notice on 27 August 2019 of termination from the non-executive directors of Rockpool that its management of these six sites is to be terminated on a six month notice period. All six sites hit the TRIADs available to them during the winter period and the revenue from that alone, of around £3 million, will be used to pay down construction debt and ultimately enhance the value attributable to shareholders when the sites are eventually sold. Each site has had to spend a considerable amount of money to lower its emissions so that they may operate successfully within the new emissions policies. Our primary operational focus has therefore been on the continued operation of these six sites in which we have an economic interest of circa 44.5% each and will continue to be until the third week of February 2020 and on an ongoing basis for Attune Energy Limited (Plymouth) as detailed in the Chief Executive's review below. This coming winter, following OFGEM's review of TRIADs, we expect to achieve 33% of the original income from TRIADs, essentially 50% lower than last year, into each investment. This is assuming we hit all the TRIADs, which will again be applied to paying down the development debt of each company. Each investee Company will also continue to generate revenue from the sale of electrons, and income from bidding for FFR (Firm Frequency Response) or FR (Fast Response).
If alternative performance measures were used and included our share of the nine companies co-owned with Rockpool, our unaudited net assets from the operating companies alone would be at least £7.7m greater than disclosed in the balance sheet. Our share of the profit from the six operating sites, would have added £2.78m to our turnover and £835,000 EBITDA to our income statement.
Plutus is continuing to concentrate on obtaining funding for our intended portfolio of gas fuelled power generation sites, "gas peakers" that will only operate in peak hours generally for between 1500 to 2500 hours per year when it is profitable to do so. The management team has been working to develop and progress a pipeline of gas-powered sites in which we intend to hold a majority stake, and therefore be permitted to consolidate the income statement and balance sheet into our accounts, providing more visibility at Group level of our operations.
Best of