Active Energy Regulatory News (AEG)

15 September 2011

ACTIVE ENERGY GROUP PLC

('Active Energy', the 'Company' or the 'Group')

Interim results for the six months ended 30 June 2011

Active Energy, the AIM - quoted voltage optimisation specialist and eco engineering consultants announces its interim results for the six months ended 30 June 2011 (the "period").

Highlights:

- Acquisition of Red Line Engineering Services in April 2011

- New senior management team to drive the business forward

- Raised £1.8m before expenses in a placing to strengthen the Group's balance sheet

- Loss for the period of £451,845 (2010: loss of £648,046)

- Loss per share 0.33 pence (2010 loss of 0.72 pence)

- Well placed to capitalise on new business opportunities in the voltage optimisation and eco engineering consultancy markets

Enquiries:

CHAIRMANS REPORT

On behalf of the board, I am pleased to present the results of Active Energy plc for the six month period ended 30 June 2011. Since the acquisition of Red Line Engineering Services ("Red Line") in April 2011 and in line with the Board's strategy, we have made significant progress in restructuring the Company into two main core businesses; voltage optimisation and the provision of a comprehensive service covering the environmental requirements of companies, from consultancy and design through installation to maintenance.

The disposal of the Group's mature, legacy businesses, Gasignition and Derlite was completed in October 2010. These two businesses operated in challenging markets and had continued to make losses. Their disposal is expected to generate significant annualised cost savings as well as enabling the Group to focus on the opportunities within the environmental sector.

In May 2011, the company successfully raised £1.8m before expenses through a placing in order to strengthen the Group's balance sheet and set the foundation in place to accelerate Active Energy's growth.

Financial Review

Group revenues derived from our continuing activities for the period were £839,742 (2010: £2,799,117) and related solely to our voltage optimisation business. The decline is predominantly related to the disposals of Gasignition and Derlite.

The Group reported a loss of £451,875 (2010: £648,046) for the period. The loss was after accounting for the costs of restructuring the business and the challenging economic environment that exists in our marketplace and in the wider economy. Loss per share was 0.33p (2010: loss per share 0.72p).

Net assets as at 30 June 2011 were £3,250,422 (2010: £1,559,289) including cash balances of £1,998,842 (2010: £97,988).

The Directors are not recommending payment of a dividend (2010: £nil)

Operating Review

Since the acquisition of Red Line the Group has made significant progress. The Company has also recently secured the ISO 9001 accreditation which we believe will be beneficial in discussions with potential clients and customers.

The demand for energy efficient products is still growing, driven increasingly by regulation as well as the need to cut costs. In the UK, the government's CRC Energy Efficiency Scheme requires larger companies to purchase CO2 credits according to how much CO2 they produce and is designed to encourage a proactive approach to reducing CO2 emissions.

We continue to see high levels of interest in our voltage optimisation products and our pipeline of new business opportunities is encouraging. We are currently in negotiations with a number of potential customers for multiple units across multiple sites and are hopeful that these sales can be secured in the second half of the year.

Outlook

We have continued to make encouraging progress during the first half of the current financial year in building our presence in the voltage optimisation marketplace. We continue to see sales opportunities in a number of sectors but the nature of our potential customer base is such that we are often subject to longer than normal sales cycles.

In addition, the acquisition of Red Line which allows the Company to provide a comprehensive service covering the environmental requirements of companies, from consultancy and design through installation to maintenance has enhanced the Group's engineering capabilities and help established a presence in the rail industry, where Red Line holds Transport for London approved supplier status. At the same time, the appointment of several new directors at an operational level will underpin our growth ambitions, bringing additional skills and sector experience.

We remain cautiously optimistic for the full year and I look forward to updating shareholders of further progress in our various markets.

Gavin Little

Chairman

15 September 2011

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2011

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2011

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2011

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2011

NOTES TO THE INTERIM STATEMENTS

For the six months ended 30 June 2011

1. Accounting policies

Basis of preparation

The financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and interpretations adopted for use in the European Union (collectively EU Adopted IFRSs).

The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ended 31 December 2011 and are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 31 December 2010.

Non- statutory accounts

The financial information for the year ended 31 December 2010 set out in this interim report does not comprise the Group's statutory accounts as defined in section 435 of the Companies Act 2006.

The statutory accounts for the year ended 31 December 2010, which were prepared under International financial Reporting Standards, International Accounting Standards and IFRIC interpretations (collectively IFRS), have been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, but did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006.

The financial information for the six month periods ended 30 June 2011 and 30 June 2010 is unaudited.

The results for the period ended 30 June 2010 and the financial position reported at that date have been restated in respect of the losses for that period previously attributed to minority interests. The restatement has had no impact on the Group's reported net assets at 30 June 2010, but has had the effect of increasing the basic and diluted loss per share attributable to equity holders of the Group to 0.72 pence per share (previously reported as 1.17 pence per share). Retained earnings and total equity attributable to equity holders of the Group at 30 June 2010 have been restated accordingly in the unaudited consolidated statements of financial position and of changes in equity for that period.

2. Earnings per share

Basic earnings per share is calculated by dividing the earning attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share are calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares. Diluted EPS shows a lower loss per share for each of the periods included in this interim report; accordingly it has not been disclosed.

Diluted loss per share

Diluted EPS show a lower loss per share and therefore has not been disclosed. The losses attributable to ordinary shareholders for the six months ended 30 June 2010 have been restated to include losses of £36,978 that were reported in the 2010 interim statement as attributable to a minority interest.

This has increased the loss per share attributable to ordinary shareholders for that period to 0.32 pence (previously reported as 0.72 pence).

3. Movement in called up share capital

4. Post Balance Sheet events

On 11 August 2011 Active Energy Group acquired the 27.2 per cent interest in Active Energy Limited, the Group's wholly owned subsidiary, held by SDC Industries Limited ("SDC") for a nominal sum.

Under the terms of the agreement certain monies due from SDC to the Company and from the Company to SDC have been waived. Following the waiver of these balances the Company was left with a liability of £100,000 (excluding VAT) due to SDC. This amount has been paid in full and final satisfaction of any amounts due to SDC.

The decision to acquire the minority interest reflects the fact that the Company has, since May 2011, in accordance with the terms of its agreement with SDC, been manufacturing the Voltage Master in its own facility in Leeds and expects any future demand for the product to be met from these new facilities which is expected to result in greater control over manufacturing, speedier response to customer demand, an improved product offering and improved gross margins.

5. Sundry information

These consolidated interim financial statements were approved by the Board of Active Energy for issue on 14 September 2011.

Copies of the interim report and financial statements will be available on the Company's website at www.active-energy-group.com.

For the six months ended 30 June 2011

6. Reconciliation of loss before income tax to cash generated from operations