rur4 Sep 2020 13:04
ed, 19th Aug 2020 13:18
RNS Number : 6140W
Rurelec PLC
19 August 2020
Rurelec PLC
("Rurelec" or the "Company")
Comment on Share Price
The Directors of the Company note the recent movement in the Company's share price and confirm that they know of no reason for the share price movement.
General Update
By way of a general update, the Directors of the Company refer to the audited results of the Company for the year ended 31 December 2019, which were released to the market on 1 June 2020 ("Financial Results Announcement").
As set out in the Financial Results Announcement, the highlights for the twelve months ended 1 June 2020 were:
"Operating loss £3.1 million (2018: loss £2.9 million).
Loss before tax £4.4 million (2018: loss £0.6 million).
2019 had seen a marked improvement in the Group's liquidity position, current liabilities have fallen to £0.5 million (2018: £2.0 million).
The Group was able to settle the outstanding £1.2m repayment of BPAC secured debt principal during 2019 whilst limiting the decrease in net cash to £214k (2018: increase £188k).
The main drivers for the loss before tax of £4.4 million were a provision of £2.0 million (2018: £nil) against the 701 turbines, and foreign exchange losses of £1.3 million (2018: gains £1.7 million).
Write downs of assets by £2.0 million (2018: £Nil) to values the directors believe can be supported in current market conditions.
Administration expenses of £1.2 million (2018: £1.5 million) reduced due to further employment cost savings and a reduction in professional fees.
Total loss per share 0.79p (2018: 0.11p).
Net Asset Value per share 3.7p (2018: 4.4p)."
As also set out in the Financial Results Announcement:
"The Group has started to benefit from being on a more secure financial footing. December 2019 marked the first time since 2008 that the Group has received loan repayments due from the holding company of our joint venture operation of £0.5 million. This follows the completion of the major maintenance programme carried out at the Argentinian plant in late 2018 and early 2019. The total cash remittances by EdS to the Group and PEL described above amount to £2.2 million which compares to total debt repayments by EdS of £2.0 million in 2018. In addition, EdS ended the year with cash reserves of £1.7 million (2018: £0.5 million).
To date, the COVID-19 pandemic has had little impact on the Group. The Group's Head Office in London has operated on a remote basis and the EdS plant in Argentina is situated in a region which has to date had very little incidence of the virus. EdS's power generation is considered part of an essential industry, and it has implemented procedures and protocols to allow as near to normal safe working practices in place. Output and profitability to the end of April 2020 are in line with expectations, whilst cash remittances are above forecast for 2020 year to date and higher than for the same period in 2019.Notwith
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