IGAS.L Regulatory News (IGAS)

28 Sep 2007 07:04

KP Renewables PLC28 September 2007 FOR IMMEDIATE RELEASE Date 28 September 2007 KP RENEWABLES PLC (the "Company") INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2007 ("Interim Results") CHAIRMAN'S STATEMENT •Financial restructuring completed £€750,000 cash raised through new equity •Second-half year revenues expected from existing project portfolio •New focus on larger energy projects I am pleased to report the Interim Results for the Company for the six monthperiod to 30 June 2007, a period of successful transition for the Company. Shareholders will already be aware of the financial difficulties experienced in2006 and the early part of 2007 and the action taken by the Board to resolvethem. This action was necessary to ensure the Company's future and to securesome value for creditors and shareholders. To this end a Company VoluntaryArrangement ("CVA") was entered into with the Company's creditors, combined witha capital reorganisation and fund raising, as previously described in thecircular to shareholders of 16 March 2007 and in my Chairman's Statement for theyear ended 31 December 2006. The results for the period under review show a profit before taxation of£370,214. However, this largely reflects an exceptional profit created byadjustments resulting from the CVA and capital reorganisation, referred to inthe Profit and Loss Account as 'Exceptional reduction to expenses'. Since then,the Company has been operating at a much reduced level of costs compared withprevious years. Since the refinancing, we have been able to begin to resuscitate the Company'sexisting business and to review new projects in wind, biomass and other energyrelated areas. We have been able to advance a number of smaller projects fromour existing portfolio which had previously been frozen due to our financialconstraints last year. These projects are expected to generate some revenue forthe Company during the second half of the year, even though 60% of the netrevenue from any such projects will flow to creditors under the terms of theCVA. New projects of a larger scale that would transform the scale of the businessare now part of our future strategy. We are exploring a number of largerpotential developments in the United Kingdom and Europe and have also beenreviewing possible acquisitions. Such projects are likely to require significantadditional funding and the Board is considering its financing options. John BryantChairman For further information please contact:KP Renewables PlcJohn Bryant Tel: +44 (0)7768 888 359Peter Redmond Tel: +44 (0) 207 332 2200First City Financial Limited Tel: +44 (0) 207 242 2666 KP Renewables plcCondensed Consolidated Balance SheetAt 30 June 2007 Unaudited Unaudited Audited 30 June 2007 30 June 2006 31 December 2006 £ £ £ASSETS Non-current assetsGoodwill - - -Investment on product development - - - ----------- ----------- ----------- - - - ----------- ----------- ----------- Current assets Project developmentcosts 22,161 - 13,505Trade and otherreceivables 48,566 107,727 38,380Cash and cashequivalents 609,832 57,995 12,436 ----------- ----------- ----------- 680,559 165,722 64,321 ----------- ----------- ----------- Total assets 680,559 165,722 64,321 =========== =========== =========== EQUITY AND LIABILITIES Share capital 1,280,897 465,897 465,897Shares to be issued 8,321 - -Share option reserve 244,000 254,000 244,000Share premium 3,681,847 3,734,347 3,734,347Accumulated losses (4,656,196) (4,431,074) (5,026,410) ----------- ----------- ----------- Total Equity 558,869 23,170 (582,166) =========== =========== =========== Current liabilities Trade and otherpayables 121,690 142,552 646,487 ----------- ----------- ----------- Total currentliabilities 121,690 142,552 646,487 ----------- ----------- ----------- Total equity andliabilities 680,559 165,722 64,321 =========== =========== =========== KP Renewables plcCondensed Consolidated Profit and Loss AccountFor the six months ended 30 June 2007 Unaudited Unaudited Audited 6 months to 6 months to Year ended 30 June 2007 30 June 2006 31 December 2006 £ £ £ Turnover - - - Administration expenses andoperating loss (186,436) (2,280,766) (2,876,102)Exceptional reduction toexpenses (Note 4) 551,266 - -Investment income 5,384 10,023 10,023Interest paid - - - ---------- ---------- ------------ Profit/(Loss) for the periodbefore tax 370,214 (2,270,743) (2,866,079) Taxation - - - ---------- ---------- ------------ 370,214 (2,270,743) (2,866,079) ========== ========== ============ Earnings/(Loss) per dilutedshare (pence) - basic anddiluted (note 3) 0.94 (97.4) (123) KP Renewables plc Consolidated Statement of Changes in Equity For the six months ended 30 June 2007 Share Share Share Share option Accumulated Total Capital Capital premium reserve losses to be account issued £ £ £ £ £ £ Balanceat 1 January2006 465,897 - 3,734,347 244,000 (2,160,331) 2,283,913 Changesin equityfor 2006 Loss forthe year - - - - (2,866,079) (2,866,079) -------- ------ ------- -------- -------- ------- Balanceat 31 December2006 465,897 - 3,734,347 244,000 (5,026,410) (582,166) Profitfor the sixmonths - -- - - 370,214 370,214 Issue ofshare capital 815,000 8,321 - - 823,321 Costs ofissue of shares - - (52,500) - (52,500) -------- ------ ------- -------- -------- -------Balanceat 30 June2007 1,280,897 8,321 3,681,847 244,000 (4,656,196) 558,869 ======== ====== ======= ======== ======== ======= KP Renewables plcCondensed Consolidated Cash Flow StatementFor the six months ended 30 June 2007 Unaudited Unaudited Audited 6 months to 6 months to Year ended 30 June 2007 30 June 2006 31 December 2006 £ £ £ Net cash flow from operating activities Cash flow fromoperating activities (186,436) (2,052,970) (2,658,306)Exceptional item 551,266 - --------- --------- ------------ 364,830 (2,052,970) (2,658,306) Movement in working capital Increase in projectdevelopment costs (8,656) - (13,505)(Increase)/decrease inreceivables (10,186) 916,247 985,594Increase/(decrease) inpayables (516,476) 84,514 588,449 --------- --------- ------------Net cash used inoperating activities (170,488) (1,052,209) (1,907,768) ========= ========= ============ Investing activities Interest received 5,384 10,023 10,023 --------- --------- ------------Net cash from investingactivities 5,384 10,023 10,023 ========= ========= ============ Financing activities Costs incurred in issueof share capital (52,500) - -Proceeds from issue ofshare capital 815,000 - - --------- --------- ------------Net cash from financingactivities 762,500 - - ========= ========= ============ Net increase/(decrease)in cash in the period 597,396 (1,042,186) (1,087,745) Cash and cashequivalents atbeginning of the period 12,436 1,100,181 1,100,181 --------- --------- ------------Cash and cashequivalents at end ofthe period 609,832 57,995 12,436 ========= ========= ============ KP Renewables plcNotes to the Statement StatementsFor the six months ended 30 June 2007 Notes: 1. The interim results are unaudited and do not comprise statutory accountswithin the meaning of Section 240 of the Companies Act 1985. The results for theyear ended 31 December 2006 have been extracted from the Group accounts for thatperiod. Those financial statements have been filed with the Registrar ofCompanies and included an auditor's report, which was modified in respect of anemphasis of matter of going concern. 2. The interim results have been prepared in accordance with the accountingpolicies adopted in the accounts for the year ended 31 December 2006, which havebeen prepared under IFRS and to be adopted in respect of the year ending 31December 2007. 3. Profit per share is based on a profit after taxation of £370,214 and on39,384,468 ordinary shares, being the weighted average number in issue duringthe period. The loss per share for comparative purposes has been restated toreflect the share consolidation that took pace in April 2007. 4. Exceptional costs totalling £154,816 were incurred as a consequence of theCVA and financial reorganisation. The exceptional reduction in expenses of£551,266 is stated after deducting these exceptional costs. 5. As at 30 June 2007 the issued share capital comprised 83,829,483 ordinaryshares of 1p and 46,589,662 deferred shares of 0.95p. The deferred shares haveno voting or dividend rights. A total of 832,100 ordinary shares of 1p are to beissued following the CVA. 6 No tax liability arises due the losses incurred in prior periods. This information is provided by RNS The company news service from the London Stock Exchange