Green & Smart Holdings plc Business Update (7874Z)
01 June 2016 - 1:28AM
UK Regulatory
TIDMGSH
RNS Number : 7874Z
Green & Smart Holdings plc
31 May 2016
31 May 2016
Green & Smart Holdings plc
("Green & Smart" or "the Group")
Business Update
Green & Smart Holdings plc, a renewable energy company
generating power from biogas captured through the treatment of Palm
Oil Mill Effluent (POME) in Malaysia, provides the following update
on trading ahead of announcing its interim results for six months
ended 31 March 2016 in June 2016.
The first half of the year has seen the continuation of the
momentum gained in the second half of the previous financial year.
Currently, the Group derives its revenues from EPCC agreements for
the construction of biogas power plants for its associated company,
Megagreen Energy Sdn Bhd, and has a pipeline of EPCC agreements for
plants to be built or refurbished by its other associated company,
Concord Green Energy Sdn Bhd. In addition, the Group is building
fully-owned projects, which will be connected to the national grid
of Malaysia.
The Group's first fully-owned project is at Felda Kahang. In the
Group's Admission Document dated 6 May 2016, the Group stated that
it "is currently awaiting final construction work to be completed
[at Felda Kahang] along with the delivery of the gas engines which
are now in Malaysia. The Company expects to commission the plant
and connect to the grid in May 2016." The Group confirms that the
construction works have been completed. With regards to the
interconnection to the grid, the sub-contractor has commenced
laying trenches, the overhead poles and other cabling works as
planned. However, the Group was notified yesterday that the two gas
engines that were to be transferred to the site before the end of
May 2016 are now expected to be delivered by mid-June as only one
engine has passed the supplier's Factory Assessment Test. The Group
cannot commence operations with just one engine of 1MW as the
cabling and the interconnection works have been designed to be
connected to both engines simultaneously. The modification of the
Tenaga Nasional Berhad ("TNB"), the government-controlled electric
utility, national grid substation includes the installation of
additional electricity meters to recognise the power provided by
the Felda Kahang plant, which can only occur once the gas engines
have been connected. Consequently, the timing of the Felda Kahang
project is now estimated as follows:
-- Both gas engines delivered and connected by end June; and
-- interconnection works, cabling and modification to the TNB substation completed by mid-July.
Live testing of biogas production and power generation from the
plant will be undertaken by the Sustainable Energy Development
Authority of Malaysian and TNB immediately following completion of
the interconnection works and the Company is expected to earn
revenue from this time.
The revised timetable is expected to reduce revenues for the
year ended 30 September 2016 by approximately GBP240,000 reflecting
power sales foregone over the expected period of delay.
The Group will provide a full update on the progress of all
projects at the time of its results announcement in late June.
Enquiries
Green & Smart Holdings plc
-------------------------------- -----------------
Sivadas Kumar, Group CEO +44 20 7618 9100
-------------------------------- -----------------
SP Angel Corporate Finance
LLP
-------------------------------- -----------------
Robert Wooldridge, Stuart
Gledhill +44 20 3470 0470
-------------------------------- -----------------
Luther Pendragon Ltd
-------------------------------- -----------------
Harry Chathli, Claire Norbury,
Alexis Gore +44 20 7618 9100
-------------------------------- -----------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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