Active Energy Group's revenue increased by over 11% to US$13.409 million in the six months to the end of June (H1 2015: US$12.046 million) while gross profit increased by 50% to US$1.840 million (H1 2015: US$1.227 million) as a result of improved purchasing conditions and stable prices.
The group says this continues the strong trend demonstrated in Q4 2015 and reflects the high demand for its core wood chip product in the Turkish market, allied to improved production efficiencies and the strong dollar relative to the Ukrainian hryvnia.
Volumes shipped rose from 103,733 tonnes in H1 2015 to 137,568 tonnes in H1 2016, a rise of 33%. Finance costs rose significantly to US$1.197 million (H1 2015: US$0.518 million), largely as a result of foreign exchange losses of US$0.608 million on US dollar denominated loans to Active Energy Group plc accounted for in sterling, as being the functional currency of the parent company, following the devaluation of sterling following the UK's referendum on membership of the European Union in June.
The group says it continues to be reliant on this high-cost debt for working capital, introduced in 2014 and reported a further loss from its share of the associated Canadian joint venture of US$0.194 million (H1 2015: US$0.295 million) which is expected to reverse on the successful commencement of operations.
The group reported an operating profit before share based payments of US$1.015 million (H1 2015: operating loss US$0.569 million).
This resulted from the higher-margin and revenues and a significant reduction in administration costs to US$1.323 million (2015 US$2.391 million).
The loss before tax reported was therefore lower at US$0.905 million (H1 2015: US$2.050 million) which reflects all the above factors. Non-cash share based payments attributable to incentive awards of share options to the management team of US$0.562 million were in line with the previous year (H1 2015: US$0.594 million).
Post period the group raised gross proceeds of £2.05 million through the issue of 77,358,491 new ordinary shares of 1p each to new and existing shareholders.