TIDMRUR
RNS Number : 2642L
Rurelec PLC
30 September 2016
Rurelec PLC
("Rurelec" or "the Company")
Interim results for the six months ended 30 June 2016
Rurelec PLC (AIM: RUR), the owner, operator and developer of
power generation capacity internationally, today announces its
unaudited interim results for the six months ended 30 June
2016.
Financial Highlights:
-- Turnover GBP116k (2015: GBP620k)
-- Gross Profit GBP110k (2015: GBP487k)
-- Post tax profit / (loss) GBP2.0 million profit (2015: GBP14.1
million loss)
-- Profit / (Loss) per share 0.36 pence (2015: 2.52 pence loss)
-- Net asset value per share 7.2 pence (2015: 7.7 pence)
Operational and Post Half-Year Highlights:
-- Revenues in the six months came from engineering and shared service fees.
-- GBP2.0 million profit for the period is primarily due to
foreign exchange gains associated with loans to Argentine
operations.
-- Finance expense was GBP0.2 million compared to GBP0.6 million
for the same six months of 2015, the reduction is due to the sale
of Canchayllo inclusive of its project debt.
-- Revenues in Argentina still performing well locally with
Argentine Pesos Arg $204 million (2015: Arg $120 million). In US$
revenues were $14.0 million (2015: $13.5 million)
-- Peru - continues to explore the sale of its developments and
receipt of US $1 million deferred consideration on the sale of its
Canchayllo assets.
-- Chile - one project (255 MW) still under development.
-- Administrative expenses decreased from GBP2.8 million to GBP1.2 million.
Commenting on the results, Simon Morris, Rurelec's Executive
Director, said:
"The Company continues to pursue measures to restore value to
the Company and its shareholders through developments in Argentina
and Chile, whilst pursuing cost savings at the head office in
London and the sale of the Peruvian assets."
For further information please contact:
Rurelec PLC WH Ireland
Simon Morris Paul Shackleton
Executive Director and James Bavister
+44 (0)20 7025 8026/28 +44(0) 20 7220 1666
Executive Director's Statement
Review of Operations:
In Argentina our 50% owned operating entity, Energia del Sur
S.A., and its parent company, Patagonia Energy Limited, have
outstanding borrowings and interest before impairments of GBP37.5m
due to the Group. The company is operating well at the local level
however it has been subject to increases in its working capital
requirements which restricted its ability to make repayments of
outstanding loans to the UK. Within the last month the working
capital requirements in Argentina have begun to ease. The Board is
also expecting to appoint a consultant in the near future to help
improve our dealings with the Argentine operation.
In Peru, the projects owned by the Group are still being
actively marketed. Interest has been shown by a number of potential
purchasers.
In Chile, the Illapa project is making progress.
A very tight rein continues to be maintained on overheads in the
UK, leading to a reduction of over 50% in the six months compared
to the same period last year.
As previously announced, the Group has arranged for extended
facilities from BPAC, totalling GBP1.6 million. The funding
position of the Group remains very tight, but stable. The funding
position remains dependent upon the continued forbearance of
certain creditors.
Given the progress on the sale of the Group's assets and the
fact that the Directors are pursuing alternative sources of
finance, the directors continue to adopt the going concern basis of
accounting.
Review of future strategy
The strategy of the Group continues to be focussed on
stabilising the financial position, keeping costs under tight
control, whilst certain assets are sold. The underlying strategy is
to preserve the value of the Group assets, which will in turn
enable all creditors to be repaid and maximise returns to
shareholders.
Simon Morris
Executive Director
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
for the half year ended 30 June 2016
(expressed in thousands of pounds)
________
Audited
Notes 6 months 6 months to 12 months to
to
30/06/16 30/06/15 31/12/15
GBP'000 GBP'000 GBP'000
---------------------------- ------ ------------------------- ------------ -------------
Revenue 116 620 179
Cost of sales (6) (133) (22)
---------------------------- ------ ------------------------- ------------ -------------
Gross profit 110 487 157
Administrative expenses (1,213) (2,779) (4,435)
---------------------------- ------ ------------------------- ------------ -------------
Operating loss (1,103) (2,292) (4,278)
Foreign exchange gains
/ (losses) 1,976 (1,599) (106)
Other expense 5,6 - (10,982) (17,572)
Finance income 1,318 1,308 2,385
Finance expense (156) (563) (458)
---------------------------- ------ ------------------------- ------------ -------------
Profit/ (Loss) before
tax 2,035 (14,128) (20,029)
Tax expense - (3) (3)
---------------------------- ------ ------------------------- ------------ -------------
Profit / (Loss) for
the period 2,035 (14,131) (20,032)
Profit / (Loss) per
share 3 0.36p (2.52)p (3.57)p
---------------------------- ------ ------------------------- ------------ -------------
Other comprehensive
income
Items that will be
subsequently reclassified
to Profit & Loss
Exchange differences
on translation of foreign
operations 927 831 999
Total other comprehensive
income 927 831 999
Total comprehensive
profit / (loss) for
the period 2,962 (13,300) (19,033)
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited)
at 30 June 2016
(expressed in thousands of pounds)
Audited
30/6/16 30/6/15 31/12/15
Notes GBP'000 GBP'000 GBP'000
------------------------------- -------- ----------------------- --------- ---------
Assets
Non-current assets
Property, plant and equipment 19,864 21,978 19,217
Intangible assets 29 400 23
Trade and other receivables - 22,299 -
Deferred tax assets - - -
------------------------------- -------- ----------------------- --------- ---------
19,893 44,677 19,240
------------------------------- -------- ----------------------- --------- ---------
Current assets
Trade and other receivables 24,747 4,382 20,866
Cash and cash equivalents 9 304 386
------------------------------- -------- ----------------------- --------- ---------
24,756 4,686 21,252
------------------------------- -------- ----------------------- --------- ---------
Assets Classified as
held for sale 4 3,355 13,266 3,644
------------------------------- -------- ----------------------- --------- ---------
Total assets 48,004 62,629 44,136
------------------------------- -------- ----------------------- --------- ---------
Equity and liabilities
Shareholders' equity
Share capital 11,228 11,228 11,228
Share premium account 22,754 22,754 22,754
Foreign currency reserve (1,285) (2,380) (2,212)
Share option reserve - 147 -
Plant reserves - 1,050 -
Other reserve 5 45,000 45,000 45,000
Profit and loss reserve (37,228) (34,547) (39,262)
------------------------------- -------- ----------------------- --------- ---------
Total equity attributable
to 40,469 43,252 37,508
shareholders of Rurelec
PLC
------------------------------- -------- ----------------------- --------- ---------
Non-controlling interest - - -
Total equity 40,469 43,252 37,508
Non-current liabilities
Future tax liabilities - - -
Deferred tax liabilities - - -
Borrowings - - -
------------------------------- -------- ----------------------- --------- ---------
- - -
------------------------------- -------- ----------------------- --------- ---------
Current liabilities
Trade and other payables 2,989 4,446 2,856
Current tax liabilities 19 85 -
Borrowings 3,710 4,253 3,054
------------------------------- -------- ----------------------- --------- ---------
6,718 8,784 5,910
------------------------------- -------- ----------------------- --------- ---------
Liabilities Classified
as held for sale 817 10,593 718
------------------------------- -------- ----------------------- --------- ---------
Total liabilities 7,535 19,377 6,628
------------------------------- -------- ----------------------- --------- ---------
Total equity and liabilities 48,004 62,629 44,136
------------------------------- -------- ----------------------- --------- ---------
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited)
for the half year ended 30 June 2016
(expressed in thousands of pounds)
Share Share Foreign Share Retained Other Plant Total Non-controlling Total
capital premium currency option earnings reserve reserve GBP'000 interest equity
GBP'000 GBP'000 reserve reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000 GBP'000
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Balance at
01.01.15 11,228 22,754 (3,211) 146 (20,426) 45,000 1,050 56,541 283 56,824
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Issue of share - - - - - - - - - -
----------------- ----------- ------------ ------------- ----------- ---------- ------------ ---------------- ------------
Non-controlling - - - - - - - - - -
interest
transfer to
assets
held for sale
----------------- ------------- ----------- ---------- ------------ ---------------- ------------
Total - - - - - - - - - -
transactions
with owners
----------- ----------- ------------- ----------
Loss for first 6
months - - - - (14,404) - - (14,404) - (14,404)
----------------- ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Exchange
differences - - 831 - - - - 831 - 831
----------- ----------- ---------- ------------ ---------------- ------------
Total
comprehensive
Loss - - 831 - (14,404) - - (13,753) - (13,573)
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Original Balance
at 30.06.15 11,228 22,754 (2,380) 146 (34,830) 45,000 1,050 42,968 283 43,251
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Issue of share - - - - - - - - - -
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Share issue - - - - - - - - - -
costs
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Charge for share
options - - (146) 146 - - - - -
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Plant reserve - - - - 1,050 - (1,050) - - -
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Non-controlling
interest
transfer to
Assets
for Sale - - - - - - - - (283) (283)
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Total
transactions
with owners - - - (146) 1,196 - (1,050) - (283) (283)
----------- ----------- ------------- ----------
Loss for the
Period - - - - (5,628) - - (5,628) - (5,628)
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Exchange
differences - - 168 - - - - 168 - 168
Total
comprehensive
Loss - - 168 - (5,628) - - (5,460) - (5,460)
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Balance at
31.12.15 11,228 22,754 (2,212) - (39,262) 45,000 - 37,508 - 37,508
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Gain (Loss) for
the
first 6 months - - - - 2,035 - - 2,035 - 2,035
----------------- ----------- ---------- ------------- ------------ ---------------- ------------
Exchange
differences - - 927 - - - - 927 - 927
---------- ------------ ---------------- ------------
Total
comprehensive
Loss - - 927 - 2,035 - - 2,962 - 2,962
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
Balance at
30.06.15 11,228 22,754 (1,285) - (37,228) 45,000 - 40,469 - 40,469
----------------- ----------- ------------ ----------- ---------- ------------- ----------- ---------- ------------ ---------------- ------------
RURELEC PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
for the half year ended 30 June 2016
(expressed in thousands of pounds)
Audited
Notes 6 months 6 months 12 months
to to to
30/06/16 30/06/15 31/12/15
---------------------------------- ------- --------- --------- ----------
Result for the period before
tax 2,035 (14,128) (20,029)
from continuing operations
Net finance (income) /
costs (1,161) (745) (2,385)
Adjustments for:
Depreciation 48 245 48
Unrealised exchange (gains)
/ losses (1,976) 1,599 106
Impairment of Goodwill - 921 17,327
Impairment Assets held
for sale - 4,940 245
Change in trade and other
receivables (142) 6,131 348
Change in trade and other
payables 264 (24) (1,205)
------------------------------------------- --------- --------- ----------
Cash generated from / (used
in) operations (933) (1,062) (5,545)
------------------------------------------- --------- --------- ----------
Taxation paid (3) (3) (3)
Interest paid - (560) -
Net cash generated from
/ (used in) operations (936) (1,625) (5,548)
Cash flows from investing
activities
Proceeds from Sale of Subsidiary - - 4,358
Purchase of plant and equipment (97) - -
Repayments from / (loans
to) joint venture companies 178 904 2,417
Net cash used in investing
activities 81 904 6,775
------------------------------------------- --------- --------- ----------
Net cash outflow before (855) (721) 1,227
financing activities
---------------------------------- ------- --------- --------- ----------
Cash flows from financing
activities
Issue of shares - - -
Deferred Consideration - - (1,237)
Loan drawdowns 1,150 926 1,861
Repayment of loans (671) (184) (1,748)
Net cash generated from 479 742 (1,124)
financing activities
---------------------------------- ------- --------- --------- ----------
(Decrease) / increase in
cash (376) 21 103
and cash equivalents
---------------------------------- ------- --------- --------- ----------
Cash and cash equivalents
at 385 283 282
start of period
---------------------------------- ------- --------- --------- ----------
Cash and cash equivalents
at end of period 9 304 385
RURELEC PLC
Notes to the Interim Statement
for the six months ended 30 June 2016
1. Basis of preparation
These condensed consolidated interim financial statements do not
constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006. The comparative figures for the year ended
31 December 2015 were derived from the statutory accounts for that
year which have been delivered to the Registrar of Companies. Those
accounts were unqualified. The financial information contained in
this interim statement has been prepared in accordance with all
relevant International Reporting Standards as adopted by the
European Union and expected to apply to the Group's results for the
year ending 31 December 2016 and on interpretations of those
Standards released to date.
2. Accounting policies
These condensed consolidated interim financial statements have
been prepared in accordance with the accounting policies set out in
the Group's financial statements for the year ended 31 December
2015.
3. Earnings per share 6 months 6 months 12 months
to to to
30/6/16 30/6/15 31/12/15
--------- ----------- -----------
Basic and diluted
Average number of shares 561m 561m 561m
in issue during the period
Profit / (Loss) attributable GBP2.0m GBP(14.1m) GBP(20.0m)
to equity holders of the parent
from continuing operations
Basic and diluted profit /
(loss) per share on continuing
operations 0.36p (2.52p) (3.57p)
--------- ----------- -----------
4. Assets held for Sale
As reported in the December 2015 financial statements, the
assets held for sale relate to entities within Peru, which have
been held for sale following the commitment of the Group to
restructure the business. Two disposals have been identified, one
of which is the outstanding amounts due to the sale of Canchayllo
run-of-river hydro plant with the rest of the assets included
within the second group.
The Company completed the construction of the 5.3MW Canchayllo
run-of-river hydro-electric project in Peru during December 2014
and the plant entered commission during January 2015. In July 2015,
the Company completed the sale of the plant to Energias Renovables
de los Andes SAC for US $6.8 million. In addition, a further US $1
million is due to be received by way of reimbursement of amounts
advanced towards the completion of the plant. The amount of US $1
million has not yet been collected.
At 30(th) June 2016, the Group has been in discussions with a
number of potential buyers for the rest of the Group's Peruvian
assets. No further provision has been made against the carrying
value of these assets since the latest annual financial
statements.
5. Other Reserve
The Capital Reduction that took place during December 2014
resulted in the creation of a non-distributable reserve. The
condition for this reserve to become distributable is for the
outstanding creditors in December 2014 to be settled. At the date
of approval of these accounts there are some GBP1.6 million of
these creditors outstanding. The Board of Directors consider that
these amounts will be settled in the short term and therefore the
GBP45 million remains within the Other Reserve, which is
non-distributable until these settlements have occurred.
6. The Board of Directors approved this interim statement on
29(th) September 2016. This interim statement has not been
audited.
7. Copies of this statement are available at the Company's
website www.rurelec.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDCXUDBGLC
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