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Plutus PowerGen Plc / Ticker: PPG / Index: AIM

30 January 2019

PLUTUS POWERGEN PLC

("Plutus" or the "Company")

Interim Results for the Six-Month Period Ended 31 October 2018

Plutus PowerGen PLC (AIM: PPG), the AIM listed power company focused on the development and operation of flexible energy generation ("FlexGen") projects and gas-powered generation sites ("peakers") in the UK announces its interim results for the six-month period ended 31 October 2018.

Executive Chairman's Report

We remain focused on building a portfolio of FlexGen and gas peaker sites across the UK and strengthening our position in the power generation arena. Our first six 20MW FlexGen sites are working well, assisting in alleviating the UK's current and forecast risk of an energy deficit.

Our substantial pipeline of gas assets continues to gain momentum and we are making a strategic shift to the development of higher margin gas operations, in which the Company will hold higher equity interests. The Company has a strong track record in the power generation arena, having already developed six operating 20MW FlexGen sites.

The Company is also developing two 20MW sites in house, both of which look very promising and are entering planning imminently. We estimate, when the sites are fully packaged as "shovel ready", these would cost between £600,000 and £1 million if acquired from a third party and therefore will have a similar value. When funding is achieved for our gas peaker portfolio, we will look to acquire further "shovel ready" sites from third parties; and we already have a comprehensive pipeline of available projects.

From a funding prospective, we continue to work to secure the appropriate funding for our pipeline of gas sites and discussions with potential financial partners are ongoing.

Post Balance sheet events

In mid-November 2018, we raised £500,000 gross through the issue of 83,333,333 ordinary shares of 0.1 pence each ("Ordinary Shares") at an issue price of 0.6 pence per share in a placing conducted by Turner Pope Investments ("TPI") Limited. The Company also issued 18,000,000 Ordinary Shares in lieu of fees.  

Outlook

In conclusion, the Company had a robust first half and whilst revenues were flat, the Board's efforts to reduce costs successfully resulted in reduced operating losses. Furthermore, with the Directors concentrating on the operations of the FlexGen portfolio, which are working well, and progressing talks with regard to achieving a suite of equity and debt for its planned "gas peaker" portfolio, we look forward to being able to update the market with progress thereon.

The fundamentals of our business case remain strong: flexible energy will continue to play a crucial role in the foreseeable future, filling the supply gaps created as a result of the increased use of intermittent energy in the UK energy mix. Our track-record of developing FlexGen sites, in tandem with our robust development/financial partnership network, places us in a strong position to capitalise on this opportunity. We therefore look forward to the future with confidence.

I would like to thank all the staff and the Directors for their considerable efforts and support, together with our advisors and consultants, who assist us in developing and executing both our FlexGen and Gas operations.

Charles Tatnall

Executive Chairman

30 January 2019

Financial Review

The Company's net loss for the half year under review was £131,573 (6 months ended 31 October 2017: loss of £392,489). Administration expenses were down in the period to £736,369 from £888,939 in the same period last year due to a management review of costs with material cost savings being implemented which will benefit the Company going forward. The loss before taxation also reduced due to a smaller non-cash charge for the Directors' share option scheme of £62,204 (2017: £159,748). This charge does not affect the cash flow of the Company. The Company continues to control costs as tightly as possible. Finance costs from the convertible loans were £4,000 (6 months ended 31 October 2017: £8,000) as half the loan was converted into equity in the last full financial year.

Net reimbursable expenses have reduced from the Rockpool Investee Companies and now constitute ongoing expenses which are initially paid by Plutus, but which are ultimately borne by the nine operating investee companies. Plutus continues to make payments for its own gas sites under development. These are capitalised or written off if the sites do not proceed. The Directors are confident that the current sites under development in house will be successful, subject to planning.

Cash and short-term investments as at 31 October 2018 totalled £62,833 (2017: £126,212). The Directors believe the Company has sufficient working capital for the foreseeable future.

James Longley

Chief Financial Officer and Interim Chief Executive

30 January 2019

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UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 OCTOBER 2018

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 OCTOBER 2018

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 OCTOBER 2018

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 OCTOBER 2018

NOTES TO THE INTERIM REPORT

1. Basis of preparation

The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Company's statutory financial statements for the period ended 30 April 2018, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 30 April 2018. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The financial statements have been prepared on a going concern basis under the historical cost convention.

The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.

2. Earnings per share

The calculation of basic and diluted earnings per share is based on the total loss for the period of £131,573 (2017: loss £392,489) and a weighted average number of ordinary shares of 723,928,935 (2017: 709,461,722). The number of shares used in the calculation of the diluted loss per share is the same as that used for the basic loss per share for the current period, as the exercise of options would be anti-dilutive.

3. Share Capital

4. Dividend

No interim dividend will be paid.

Copies of the interim report can be obtained from: The Company Secretary, Plutus PowerGen PLC, 27/28 Eastcastle Street, London W1E 8DH and are available to view and download from the Company's website: www.plutuspowergen.com