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29 Sep 2014 14:30
Renewable Energy Holdings plc
("Renewable Energy Holdings" or the "Company")
Interim Report for the six months ended 30 June 2014
Renewable Energy Holdings announces its interim results for the six months to 30 June 2014, which are set out below. A copy is available to download from the Company's website www.reh-plc.com
For further information, please contact:
Renewable Energy Holdings plc David Weir, Non-Executive Chairman Clive Callister, Chief Operating Officer
| Tel: +44 (0)16 2464 1199 |
Strand Hanson Limited Rory Murphy / James Spinney
| Tel: +44 (0)20 7409 3494 |
Chairman's Statement
During the first six months of 2014 work has continued to progress the Welsh project through the planning process and to attract a buyer for the Polish project. Expenditure is focussed on these activities with minimal overheads.
Financial Performance
The Group made a loss for the half year of £711k. This includes finance costs of £409k associated with the Utilico Loans. General overhead costs of £224k include Welsh project development work, while the costs of maintaining the Polish Assets for the six months were £78k.
Wales
As reported in the Annual Report the 'Application for an Order granting Development Consent' was initially submitted on 24 April but withdrawn to make changes 28 days later. I am happy to report the revised application was resubmitted on 30 July and accepted into the examination process by the Planning Inspectorate on 20 August. The project is now in the pre-examination phase, with the deadline for parties to register their interest set as 17 October. Following this the Examiner holds a Preliminary Meeting to decide the issues and timetable for examination. The examination phase can take up to six months, followed by three months for the Examiner to make a recommendation to the Secretary of State and a further three months for the Secretary of State to issue a decision. For more information and to see the latest status of the Project see the Mynydd y Gwynt Project Page on the Planning Inspectorate's website http://infrastructure.planningportal.gov.uk/projects/Wales/Mynydd-y-Gwynt-Wind-Farm/
Poland
The resurgence of interest in the Polish market and renewed efforts to find a buyer has continued.
We are engaged in early discussions with a number of potential acquirers, further updates will be issued in due course.
Carnegie Wave Energy Limited (Carnegie)
There has been no change with regard to REH holding of Carnegie Shares since the Annual Report statement. Winter in Australia has allowed for greater onshore testing of components before the deployment of CETO 5. Completion of the onshore facilities, with continued deployment preparation, has been reported by Carnegie.
Funding
Following the acceptance by the Planning Inspectorate of our Mynydd y Gwynt Application into the examination process, your Board has reviewed the likely cash flow requirements to take the application through to approval. The Board has determined that funding over and above that previously agreed with Utilico will be required in 2015 and hence discussions are ongoing with Utilico. A further announcement on funding will be made in due course.
David Weir
Chairman
September 2014
Consolidated income statement for the six months ended 30 June 2014 |
| Six months ended 30 June 2014 (Unaudited) | Six months ended 30 June 2013 (Unaudited) | Year ended 31 December 2013 (Audited) | ||
£ | £ | £ | |||
Note | ('000) | ('000) | ('000) | ||
Revenue | - | - | - | ||
Cost of sales | - | - | - | ||
Gross profit/(loss) | - | - | - | ||
Other operating income | - | - | - | ||
Development expenditure | (1) | (6) | (38) | ||
Administrative expenditure | (223) | (467) | (695) | ||
Loss from operations | (224) | (473) | (733) | ||
Finance income | - | 1 | 1 | ||
Finance costs | (409) | (248) | (677) | ||
Loss before income tax | (633) | (720) | (1,409) | ||
Income tax credit/(expense) | - | - | - | ||
Loss for the year from continuing operations | (633) | (720) | (1,409) | ||
Discontinued operations | |||||
Loss for the year from discontinued operations |
2 |
(78) |
(129) | (186) | |
Loss for the period | (711) | (849) | (1,595) | ||
Loss attributable to: | |||||
Owners of the parent | (711) | (849) | (1,595) | ||
Non-controlling interests | - | - | - | ||
(711) | (849) | (1,595) | |||
Loss per share attributable to the equity holders of the parent during the year: | |||||
Basic and diluted | |||||
From continuing operations | (0.91)p | (1.22)p | (2.02)p | ||
From discontinued operations | (0.11)p (1.02)p | (0.19)p (1.03)p | (0.27)p (2.29)p | ||
Consolidated statement of comprehensive income for the six months ended 30 June 2014 |
Six months ended 30 June 2014 (Unaudited) | Six months ended 30 June 2013 (Unaudited) | Year ended 31 December 2013 (Audited) | |
£ | £ | £ | |
('000) | ('000) | ('000) | |
Loss for the period | (711) | (849) | (1,595) |
Other comprehensive income/(expense) | |||
Exchange differences on translating foreign operations | (152) | 4 | 43 |
Gain/(losses) arising on revaluation of Available for Sale Financial asset | 282 | (905) | (115) |
Total comprehensive income/(expense) for the period | (581) | (1,750) | (1,667)
|
Attributable to: | |||
Owners of the parent | (581) | (1,750) | (1,667) |
Non-controlling interests | - | - | - |
(581) | (1,750) | (1,667) | |
Total comprehensive income/(expense) attributable to owners of the parent arising from: |
|
|
|
Continuing operations | (503) | (1,621) | (1,481) |
Discontinued operations | (78) | (129) | (186) |
(581) | (1,750) | (1,667) | |
Consolidated statement of changes in equity for the six months ended 30 June 2014 |
Attributable to owners of the parent | |||||||||||
Share capital | Share premium reserve | Foreign exchange reserve | Share based payment reserve | Merger reserve | Available for sale reserve | Retained earnings |
Total | Non-controlling interest | Total equity | ||
£ | £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
(000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | ||
Balance at 1 January 2014 | 696 | 26,740 | (343) | 1,134 | 4,410 | 79 | (29,597) |
3,119 |
(532) | 2,587 | |
Comprehensive expense | |||||||||||
Loss for the period | - | - | - | - | - | - | (711) | (711) | - | (711) | |
Other comprehensive income/(expense): | |||||||||||
Exchange differences on translating foreign operations | - | - | (152) | - | - |
- | - |
(152) |
- |
(152) | |
Gain arising on revaluation of Available for sale Investment | - | - | - | - | - |
282 | - |
282 |
- |
282 | |
Total comprehensive income/(expense) | - | - | (152) | - | - | 282 | (711) |
(581) |
- |
(581) | |
Transactions with owners | |||||||||||
Share based payment charge | - | - | - | - | - | - | - |
- |
- | - | |
Balance at 30 June 2014 | 696 | 26,740 | (495) | 1,134 | 4,410 | 361 | (30,308) |
2,538 |
(532) | 2,006 | |
Consolidated statement of changes in equity for the six months ended 30 June 2013 |
| ||||||||||||||
Share capital | Share premium reserve | Foreign exchange reserve | Share based payment reserve | Merger reserve | Available for sale Reserve | Retained earnings | Total | Non Controlling interest | Total equity | |||||
£ | £ | £ | £ | £ | £ | £ | £ | £ | £ | |||||
('000) | ('000) | ('000) | ('000) | ('000) | ('000) | ('000) | ('000) | ('000) | ('000) | |||||
Balance at 1 January 2013 |
696 |
26,740 |
(386) |
1,134 |
4,410 |
194 |
(28,002) |
4,786 |
(532) |
4,254 | ||||
Comprehensive income/(expense) | ||||||||||||||
Profit/(loss) for the year | - | - | - | - | - |
- | (849) |
(849) | - | (849) | ||||
Other comprehensive income/(expense) | ||||||||||||||
Loss arising on revaluation of Available for sale investment | - | - | - | - | - |
(905) | - |
(905) |
- | (905) | ||||
Exchange difference on translating foreign operations | - | - | 4 | - | - |
- | - |
4 |
- | 4 | ||||
Total comprehensive income/(expense) |
- |
- |
4 |
- |
- |
(905) |
(849) |
(1,750) |
- | (1,750) | ||||
Balance at 30 June 2013 |
696 |
26,740 |
(382) |
1,134 |
4,410 |
(711) |
(28,851) |
3,036 |
(532) |
2,504 | ||||
Consolidated statement of changes in equity for the year ended 31 December 2013 |
Attributable to owners of the parent | |||||||||||
Share capital | Share premium reserve | Foreign exchange reserve | Share based payment reserve | Merger reserve | Available for sale reserve | Retained earnings |
Total | Non-controlling interest | Total equity | ||
£ | £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
(000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | (000s) | ||
Balance at 1 January 2013 | 696 | 26,740 | (386) | 1,134 | 4,410 | 194 | (28,002) |
4,786 |
(532) | 4,254 | |
Comprehensive expense | |||||||||||
Loss for the year | - | - | - | - | - | - | (1,595) | (1,595) | - | (1,595) | |
Other comprehensive income/(expense): | |||||||||||
Exchange differences on translating foreign operations | - | - | 43 | - | - |
- | - |
43 |
- |
43 | |
Gain arising on revaluation of Available for sale Investment | - | - | - | - | - |
(115) | - |
(115) |
- |
(115) | |
Total comprehensive income/(expense) | - | - | 43 | - | - | (115) | (1,595) |
(1,667) |
- |
(1,667) | |
Transactions with owners | |||||||||||
Share based payment charge | - | - | - | - | - | - | - |
- |
- | - | |
Balance at 31 December 2013 | 696 | 26,740 | (343) | 1,134 | 4,410 | 79 | (29,597) |
3,119 |
(532) | 2,587 | |
Consolidated balance sheet at 30 June 2014 |
30 June2014 (Unaudited) | 30 June2013 (Unaudited) | 31 December 2013 (Audited) | ||
£ | £ | £ | ||
Note | ('000) | ('000) | ('000) | |
Non-current assets | ||||
Property, plant & equipment | 1,788 | 1,286 | 1,505 | |
Total non-current assets | 1,788 | 1,286 | 1,505 | |
Current assets | ||||
Cash and cash equivalents | 193 | 53 | 332 | |
Trade and other receivables | 842 | 892 | 853 | |
Available for sale financial asset | 2,809 | 1,828 | 2,618 | |
Assets of a disposal group classified as held for sale | 4,327 | 4,275 | 4,393 | |
Total current assets | 8,171 | 7,048 | 8,196 | |
Total assets | 3 | 9,959 | 8,334 | 9,701 |
Current liabilities | ||||
Trade and other payables | 1,941 | 1,157 | 1,499 | |
Borrowings | 4,953 | 3,679 | 562 | |
Liabilities directly associated with assets of a disposal group classified as held for sale | 559 | 494 | 4,553 | |
Total current liabilities | 7,453 | 5,330 | 6,614 | |
Non-current liabilities | ||||
Borrowings | 500 | 500 | 500 | |
Total non-current liabilities | 500 | 500 | 500 | |
Total liabilities | 3 | 7,953 | 5,830 | 7,114 |
NET ASSETS | 2,006 | 2,504 | 2,587 | |
Capital and reserves attributable to equity holders of the parent | ||||
Share capital | 696 | 696 | 696 | |
Share premium reserve | 26,740 | 26,740 | 26,740 | |
Foreign exchange reserve | (495) | (382) | (343) | |
Share-based payment reserve | 1,134 | 1,134 | 1,134 | |
Merger reserve | 4,410 | 4,410 | 4,410 | |
Available for sale reserve | 361 | (711) | 79 | |
Retained earnings | (30,308) | (28,851) | (29,597) | |
2,538 | 3,036 | 3,119 | ||
Non-controlling interests | (532) | (532) | (532) | |
TOTAL EQUITY | 2,006 | 2,504 | 2,587 | |
These interim financial statements were approved by the Board of Directors and authorised for issue on 29 September 2014 and they were signed on its behalf by:
David Weir, Chairman Clive Callister, Director
Consolidated cash flow statement for the six months ended 30 June 2014 |
30 June2014 (Unaudited) | 30 June2013 (Unaudited) | 31 December 2013 (Audited) | |
£ | £ | £ | |
('000) | ('000) | ('000) | |
Operating activities | |||
Loss after tax, including discontinued operations | (711) | (849) | (1,595) |
Adjustments for : | |||
Depreciation | 1 | - | 2 |
Foreign exchange gain | - | 7 | - |
Finance income | - | (1) | (1) |
Finance expense | 409 | 244 | 677 |
Share of loss in the associate | - | - | - |
Impairment of associate | - | - | - |
Loss on partial disposal of associate | - | - | - |
Loss on disposal in associate | - | - | - |
Impairment of property, plant & equipment | - | - | - |
Cash flows from operating activities before changes in working capital | (301) | (599) | (917) |
Decrease/increase in trade and other receivables | 8 | 156 | 188 |
Increase/decrease in trade and other payables | 48 | 180 | 186 |
Cash generated from/(used in) operations | (245) | (263) | (543) |
Income taxes paid | - | - | - |
Cash flows from operating activities | (245) | (263) | (543) |
Investing activities | |||
Acquisition of property, plant & equipment | (300) | (277) | (591) |
Proceeds from disposal of shares in associate | - | - | - |
Disposal of shares in associate | - | - | - |
Finance income received | - | 1 | 1 |
Cash flows from investing activities | (300) | (276) | (590) |
Financing activities | |||
Draw down of loan facility | 400 | 1,179 | (750) |
Repayment of loan facility | - | (750) | 2,053 |
Finance costs paid | - | - | (4) |
Cash flows from financing activities | 400 | 429 | 1,299 |
Increase/(decrease) in cash and cash equivalents | (145) | (110) | 166 |
Cash and cash equivalents brought forward | 338 | 176 | 176 |
Exchange losses on cash and cash equivalents | 1 | (3) | (4) |
Cash and cash equivalents at carried forward | 194 | 63 | 338 |
Cash included in assets held for sale | (1) | (10) | (6) |
193 | 53 | 332 | |
1. Basis of preparation
This unaudited consolidated interim 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 IFRSs).
The principal accounting policies used in preparing the interim results are those the Company expects to apply in its Financial Statements for the year ended 31 December 2013 and are unchanged from those disclosed in the Company's audited Annual Report and Financial Statements for the year ended 31 December 2013 which are available at www.reh-plc.com.
In assessing the going concern basis of preparation of the financial information for the period ended 30 June 2014, the Directors have taken into account the status of current negotiations on the sale of assets, projections through to June 2015 and likely support of the Company's largest shareholder. The Directors consider that the Group will have sufficient facilities for its ongoing operations and therefore have continued to adopt the going concern basis in preparing the June 2014 financial results.
While the financial information included in this consolidated interim financial information has been prepared in accordance with the AIM Rules for Companies and with IFRSs, this interim consolidated financial information does not itself contain sufficient information to comply fully with IFRSs. As permitted, the Company has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements.
The financial information for the six months ended 30 June 2014 and 30 June 2013 is unaudited and does not constitute the Company's statutory financial statements for those periods. The comparative financial information for the full year ended 31 December 2013 has, however, been derived from the statutory financial statements for that period. The auditors' report on those accounts was unqualified, 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 section 15.4 of the Isle of Man Companies Act 1982.
2. Discontinued operations
Plan to dispose of wind farm project
On 30 April 2012 the Group announced the orderly sale of its assets and the return of cash to shareholders. The Group is actively seeking a buyer for its Polish wind farm project. It is the Director's judgement that the Polish wind farm project meets the criteria under IFRS 5 "Non Current Assets and Discontinued Operations" to be classified as held for sale. Accordingly the Group's Polish operations have been presented as discontinued operations.
Analysis of loss for the year from discontinued operations
The results of the discontinued operations (i.e. the Polish wind farm project) included in the consolidated income statements are set out below. The comparative loss and cash flows from discontinued operations have been re-presented to include those operations classified as discontinued in the current year.
Loss from discontinued operations | 30 June | 30 June | 31 December | |
2014 | 2013 | 2013 | ||
£ | £ | £ | ||
(000s) | (000s) | (000s) | ||
Cost of sales | (43) | (60) | (92) | |
Expenses other than finance costs | (35) | (69) | (94) | |
Finance costs | - | - | - | |
Profit/(loss) before tax from discontinued operations | (78) | (129) | (186) | |
Tax | - | - | - | |
Profit/(loss) after tax from discontinued operations | (78) | (129) | (186) |
3. Segment information
Period ended 30 June 2014 | CETO | ||||
Head office | development | Wind farms | Wind farms | ||
Isle of Man | Australia | Poland | Wales | Total | |
£ | £ | £ | £ | £ | |
(000s) | (000s) | (000s) | (000s) | (000s) | |
Investment in wind farms | - | - | 4,234 | 2,539 | 6,773 |
Available for sale financial asset Other assets | - 177 | 2,809 - | - 93 | - 107 | 2,809 377 |
Reportable segment assets | 177 | 2,809 | 4,327 | 2,646 | 9,959 |
Reportable segment liabilities | (6,717) | - | (559) | (677) | (7,953) |
Period ended 30 June 2013
| CETO | ||||
Head office | development | Wind farms | Wind farms | ||
Isle of Man | Australia | Poland | Wales | Total | |
£ | £ | £ | £ | £ | |
(000s) | (000s) | (000s) | (000s) | (000s) | |
Investment in wind farms | - | - | 4,169 | 2,035 | 6,204 |
Available for sale financial asset Other assets | - 182 | 1,828 - | - 106 | - 14 | 1,828 302 |
Reportable segment assets | 182 | 1,828 | 4,275 | 2,049 | 8,334 |
Reportable segment liabilities | (4,836) | - | (494) | (500) | (5,830) |
Year ended 31 December 2013 | CETO | ||||
Head office | development | Wind farms | Wind farms | ||
Isle of Man | Australia | Poland | Wales | Total | |
£ | £ | £ | £ | £ | |
(000s) | (000s) | (000s) | (000s) | (000s) | |
Investment in wind farms | - | - | 4,289 | 2,255 | 6,544 |
Available for sale financial asset Other assets | - 428 | 2,618 - | - 104 | - 7 | 2,618 539 |
Reportable segment assets | 428 | 2,618 | 4,393 | 2,262 | 9,701 |
Reportable segment liabilities | (6,013) | - | (562) | (539) | (7,114) |
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