2 Feb 2023 07:00
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.
2 February 2023
ESKEN LIMITED
('Esken' or 'the Group')
Esken Renewables Trading Statement
Esken, the aviation and renewables group, issues the following update on Esken Renewables' trading performance and management actions.
Performance
Biomass plant customers have experienced unplanned outages during the Winter months. These continued and further unforeseen outages in turn have reduced the total volume of waste wood supplied by Esken and the associated gate fee income. Esken Renewables would normally expect to make up these losses over time. However, the proximity to year end has made this unlikely.
As a result, Esken Renewables is now expected to deliver EBITDA of £20m for the full year ending 28 February 2023, compared to the previous guidance of £22m as stated at the Interim Results in November 2022. Management anticipate that more normalised plant operating levels will return in FY 2024.
Management actions
Esken Renewables has entered into a new sub-supply agreement to support the Chilton Biomass plant which will replace the supply currently provided from the Port Clarence processing and storage site. Esken Renewables will close the Port Clarence site on 31 March 2023 and this action, alongside the new sub-supply agreement, is expected to deliver an additional £0.9m of annual recurring EBITDA from 1 April 2023. The closure of the Port Clarence site will also generate a one off cash inflow of £0.9m after exit costs.
The new sub supply arrangement does not impact the Chilton Biomass Fuel Supply Agreement with Esken Renewables, which runs to December 2029.
Enquiries:
Esken Limited C/o Tulchan Communications
Charlie Geller, Group Communications DirectorTulchan Communications
Olivia Peters / Lisa Jarrett-Kerr
020 7353 4200
esken@tulchangroup.com