Source - RNS
RNS Number : 0097L
RedT Energy PLC
28 September 2016
 

28 September 2016

redT energy plc

 

("redT" or the "Company")

 

Interim Results 2016

 

Accelerating towards full commercialisation of industrial-scale, long duration, energy storage machines.

redT energy plc (AIM: RED), the energy storage technology company, is pleased to announce its results for the six months to 30 June 2016.

 

Commenting on the results, redT CEO, Scott McGregor said:

"We are pleased to report that our trading results in the first half of 2016 are in line with expectations. As a result, the Company continues to make strong progress towards the commercialisation and full-scale production of redT's industrial, long duration, energy storage machines.

Since the start of 2016, the Company has achieved a number of significant milestones towards the goal of becoming an industry-leading energy storage technology business. To this end, redT's market seeding phase is now nearing completion and the invaluable knowledge gained from this process has directly and positively influenced Generation Two product development and manufacture.

In addition to deploying our first units into Africa - a key future market estimated to be worth more than $2bn p.a. by 2020 - the Company also undertook a joint project with E.ON, looking at improving payback on solar PV installations for their commercial customers in the on-grid market, which itself is estimated to be worth $150bn  (Goldman Sachs Research, 2015).

More recently, the Company was pleased to announce the successful conclusion of a testing programme for redT's large scale energy storage machines at the Power Networks Demonstration Centre (PNDC) which will soon ship to the Isle of Gigha for commissioning. As a company, we are looking forward to the exciting months ahead as we accelerate the commercialisation of our Generation Two energy storage machines."

FINANCIAL HIGHLIGHTS for the period ending 30 June 2016

 


Unaudited H1 2016

Unaudited H1 2015

Audited FY 2015


€'m

€'m

€'m

Revenue

4.5

6.4

11.1

Gross profit

1.2

3.4

4.8

Administrative expenses

(3.6)

(2.9)

(6.3)

Results from operating activities

(2.4)

0.5

(1.5)

Total comprehensive income

(2.7)

0.1

1.0

 

 

·       Total comprehensive loss of €2.7m posted compared to a profit in the corresponding prior period (H1 2015: €0.1m):

·      H1 2016 in line with management expectations following prior year business restructure to focus on the development of redT's energy storage technology

·      H1 2015 profit due to US Carbon Credit portfolio sale resulting in one off €2.3m gross profit

 

·       Administration expenses across the group increased to €3.6m (H1 2015: €2.9m), primarily as a direct result of the roll-in to the Group of the REDH (September 2015) and the growth of the business

 

·       Cash and cash equivalents up on prior year closing the period at €5.5m (FY 2015: €2.9m)

 

 

2016 OPERATIONAL HIGHLIGHTS

 

·       redT energy storage business

 

Successful market seeding programme nearing completion, with redT energy storage machines deployed across the UK, Europe and Africa.

§ Technical learnings from market seeding phase have fed directly into Generation Two product design and manufacture.

 

Successful testing programme for redT's large-scale energy storage machines completed in September 2016 at the Power Networks Demonstration Centre (PNDC) in Cumbernauld, Scotland. 

§ Programme completion allows Gigha project to move to final shipping and commissioning phase.

§ The machines are the first large-scale, contract manufactured, containerised vanadium flow batteries to be deployed globally.

§ PNDC testing programme coincided with customer site visits and attracted coverage from multiple media titles, as well as a visit from the Scottish government.

 

Continued to commoditise low cost manufacturing processes for redT's products in partnership with our global manufacturing partner. redT now entering the production phase for Generation Two manufactured product.

 

First energy storage machines delivered into Africa, to customer site in Johannesburg, South Africa in June 2016.

§ The two 5kW-40kWh units will be used alongside solar PV assets at a large residential development to provide time-shifting and back-up services using excess solar generation.

 

Entered into joint project with major European utility, E.ON, in May 2016 to install a 5kW-40kWh energy storage machine at a site in Somerset, UK.

§ Coupled with on-site solar PV assets, the system will be used to time-shift excess generation.

§ The project aims to demonstrate how storage can improve solar PV payback for E.ON's commercial customers.

 

·       Camco clean energy business

 

Africa investment advisory continues to progress with the ongoing management of the Green Africa Power (GAP) and Renewable Energy Performance Platform (REPP) mandates, for which the business segment reported positive returns for the period.

 

In December 2015, the Company completed the sale of the US biogas assets, retaining service contracts to manage the assets on behalf of the new owners, providing useful cash flow into the Group.

 

EU ETS compliance services specialist continues to work with installations covered by the ETS to help them manage their regulatory position, whilst also managing the legacy carbon business associated with the Group. The services we provided resulted in significant revenues being reported in the period, with marginal profits being recorded.

 

 

 

 

 

Outlook

 

The Company is now nearing completion of the Generation One market seeding phase, and having taken invaluable learnings from the deployment and commissioning process, we are now entering the full-scale manufacture phase for our Generation Two product. After years of development and continuous refinement of our manufacturing and design processes, we are confident that we will bring to market a competitively priced product that will capitalise on the high level of interest already shown by prospective customers.

 

 

Enquiries:

 

redT energy plc

+44 (0)207 121 6100

Scott McGregor, Chief Executive Officer


Joe Worthington, Investor & Media Relations




finnCap Ltd (Nominated Adviser and Broker)

+44 (0)207 220 0500

Julian Blunt (Corporate Finance)       


Tony Quirke (Corporate Broking)




Celicourt (Financial PR)

Mark Antelme

Joanna Boon

 

+44 (0)207 520 9266

 

About redT energy

 

redT energy develops and supplies durable and robust energy storage machines based on proprietary vanadium redox flow technology for on and off-grid applications. The liquid storage medium affords an exceptionally long life of up to 25,000 full charge/discharge cycles and a 100 per cent usable depth of discharge. Combined with low maintenance requirements, this delivers industry leading lowest levelised cost of storage (LCOS) and total cost of ownership (TCO) results. The modular approach allows the power and energy components of systems to be independently sized to meet customer requirements.

 

Until now it has not been possible to directly compare variable renewable energy generation sources with diesel or fossil fuel generation. PV + Storage is now reaching 'grid parity' in many countries, a paradigm shift in energy production, which will ultimately enable a distributed energy network optimising conventional and renewable generation. The redT energy storage machine has applications in remote power, smart grids, power quality, and all aspects of renewable energy management.

 

To find out more about redT products or to register your interest in purchasing an energy storage machine please go to the below web address:

http://www.redtenergy.com/register-interest

 

For sales enquiries, please email [email protected] or call +44 (0) 207 061 6233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Review

 

 

Overall Group result

 

As was explained in the 2015 Group Annual Report and Financial Statements, the Group underwent significant changes to the structure of the business; acquiring additional REDH shareholding in order to fully consolidate the subsidiary within the Group; disposal of the US biogas assets; completing the strategic refocus of the Africa business into a pure investment advisory business.  The H1 2016 financial results are a reflection of the changes made to the structure of the business, and the clear path that it is now set upon.

 

To this end, the H1 2015 consolidated statement of comprehensive income and segmental reporting have been restated to reflect the comparative structure of the business, with the results in the period from US biogas assets, Kenya, and Tanzania, being restated to discontinued operations.  The breakdown of the discontinued operations line can be found in Note 2 accompanying the financial statements.

 

During H1 2016 the redT Group reported a total comprehensive loss of €2.7m compared to a profit of €0.1m in H1 2015.  The year on year reduction from a prior year profit is principally due to two factors:

 

·      Increased administration expenses of €0.7m in H1 2016 primarily due to the roll-in of the REDH business (September 2015) and the growth of the redT business segment in pushing ahead with the ongoing development of its energy storage machine

 

·      US Carbon Credit portfolio sale in H1 2015 resulting in one off Gross Margin profit €2.3m

 

 

Gross profit reported in the period was €1.2m compared to a gross profit of €3.4m in H1 2015.  Gross profit for redT was loss €0.4m (H1 2015: profit €0.4m), Africa €0.6m (H1 2015: €0.5m), US €0.8m (H1 2015: €2.3m) and Other €0.1m (H1 2015: €0.1m).

 

Revenue fell to €4.5m compared to revenue in H1 2015 of €6.4m.  Revenue for redT was €0.1m (H1 2015: €0.4m), Africa €0.9m (H1 2015: €0.6m), US €0.8m (H1 2015: €3.1m) and Other €2.8m (H1 2015: €2.4m).

 

redT energy storage business

 

The redT business is focused on the on-going development of its energy storage machines, with the results for H1 2016 being reflective of an operating cost centric business, on the threshold of producing a full commercial offering.  The business segment for the period represents operating and development costs of the rolled-in REDH business, with this combined business segment fully aligned and focused on the development of the redT energy storage machine.  Financials recorded were revenue of €0.1m (H1 2015: €0.4m), gross margin loss €0.4m (H1 2015: €0.4m) and segmental loss €2.5m (H1 2015: €1.0m).

 

The year-on-year movement of the financials is linked exclusively to the roll-in of the REDH business into the Group (September 2015) and the growth of the business segment as it strives to push ahead and progress with the on-going development of a fully commercialised energy storage business.

 

Camco clean energy - Africa business

 

The Africa business manages two investment advisory mandates; a co-advisory mandate to Green Africa Power LLP (GAP) through our partner EISER Infrastructure Partners LLP, and the Renewable Energy Performance Platform (REPP) mandate in partnership with Greenstream Network Ltd. The overall Africa business recorded revenue of €0.9m (H1 2015: €0.6m), gross margin €0.6m (H1 2015: €0.5m) and segmental profit €0.1m (H1 2015: €0.1m).

 

The business continues to maintain offices in Kenya, Ghana, South Africa and the UK, providing it with a solid base to carry out its advisory duties for the two active GAP and REPP mandates.

  

 

Camco clean energy - US business

 

The US business is focused on the management of the biogas facilities for which it was awarded the contract to manage following their sale in the prior year.  The business recorded revenue of €0.8m (H1 2015: €3.1m), gross margin €0.8m (H1 2015: €2.3m) and segmental profit €0.2m (H1 2015: €1.4m)

 

The reduction in revenue, gross margin and profit year-on-year is as a result of H1 2015 recognising Carbon revenues of €3.1m following the carbon portfolio sale and the sale of credits delivered from the agricultural methane projects for which CCOs have been issued under the California Program.  However, the US business is no longer directly involved in carbon activity following the portfolio sale in the prior year, and thus no associated revenues were recognised in H1 2016.

 

Camco clean energy - Other

 

This business segment comprises EU ETS Compliance Services (carbon) and recorded revenue of €2.8m (H1 2015: €2.4m), gross margin €0.1m (H1 2015: €0.1m) and segmental profit €8k (H1 2015: €29k).  As has been communicated at length in previous years, the nature of the wider carbon market means that the Group is not projecting or reliant upon meaningful revenues and margin being generated beyond the short term, and is not a core activity of the Group.

 

Group operating expenses

 

Overall administration expenses increased year on year, but with the underlying operating cost base in line with expectations.  Administration expenses incurred in H1 2016 were €3.6m, an increase of €0.7m from H1 2015 €2.9m. 

 

Expenses increased primarily as a direct result of the Group roll-in of REDH (September 2015) and the growth of the business as it progresses ahead at pace with the on-going development of the energy storage machine.  The roll-in and growth was underlined by an almost threefold increase in segmental headcount from 8 to 23 year-on-year.

 

Operating expenses by segment closed the period as follows; redT €2.2m (H1 2015: €1.4m) - increase due to business roll-in and additional growth, Africa €0.6m (H1 2015: €0.4m) - increase due to business growth with additional advisory mandate (REPP), US €0.7m (H1 2015: €0.9m) - reduction due to reduced operating base following sale of business assets, Other €0.1m (H1 2015: €0.1m).  During the period a share-based payment charge was recorded of €0.1m (H1 2015: €Nil).

 

The redT Group remains centred and committed on maintaining tight expenditure control whilst progressing with its strategic business aims, primarily in the development and commercialisation of its energy storage machine.

 

Cash and cash equivalents

 

At 30 June 2016, the Group held cash and cash equivalents of €5.5m (H1 2015: €4.2m).  Please note that cash and cash equivalents for H1 2015 was inclusive of cash held in debt reserve in relation to the now sold biogas facilities (€0.7m) which was not available to the Group for general working capital purposes.  The Group holds zero loan facilities (H1 2015: €13.0m), with prior year loans being extinguished as part of the US business biogas asset sale.

 

The key movements in cash in H1 2016 were; proceeds from the issue of share capital €4.3m, proceeds from the settlement of loan note related to prior year sale of US biogas assets €2.4m, and net cash outflow from operating activities €3.6m.  Movements in the period resulted in an increase of €2.6m cash held compared with prior Full Year (FY 2015: €2.9m).

 

The Group continues to manage and forecast our cash position so that we are well placed to continue to fund the Groups' growth plans.

 

 

 

Consolidated Statement of Financial Position

 At 30 June 2016






                                                                                  


H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

Non-current assets





Property, plant and equipment


95

17,523

101

Intangible assets and goodwill


14,989

-

14,989

Investments in associates and joint ventures


-

2,388

-

Deferred tax assets


119

120

132



15,203

20,031

15,222






Current assets





Prepayments and accrued income                                  

5

369

1,842

381

Trade and other receivables                                         

6

747

1,610

1,058

Other financial assets                                          


-

-

2,420

Cash and cash equivalents                                   

7

5,525

4,192

2,935



6,641

7,644

6,794






Total assets


21,844

27,675

22,016






Current liabilities





Loans and borrowings                                          

8

-

(566)

-

Trade and other payables                                    

9

(3,498)

(3,391)

(5,522)

Deferred Income                                                 

10

(524)

(353)

(408)

Corporate tax payable


(147)

(179)

(150)



(4,169)

(4,489)

(6,080)






Non-current liabilities





Loans and borrowings                                          

8

-

(12,436)

-

Deferred Income                                                 

10

(250)

(4,450)

(250)



(250)

(16,886)

(250)






Total liabilities


(4,419)

(21,375)

(6,330)






Net assets


17,425

6,300

15,686




 

 

 

 

 

 

Consolidated Statement of Financial Position (continued)

 At 30 June 2016








H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

 

Equity attributable to equity holders of the parent





Share capital


4,617

2,531

4,098

Share premium


89,201

76,917

85,375

Share-based payment reserve


901

756

773

Retained earnings


(76,360)

(74,791)

(73,823)

Translation reserve


725

887

893

Other reserve


(1,621)

-

(1,621)

Non-controlling interest


(38)

-

(9)






Total equity


17,425

6,300

15,686

 

 

 

 

 

Consolidated Statement of Comprehensive Income

For the 6 months to 30 June 2016









restated




H1 2016

H1 2015

FY 2015

Continuing operations


(unaudited)

(unaudited)

(audited)



€'000

€'000

€'000






Revenue


4,533

6,442

11,106

Cost of sales


(3,374)

(3,090)

(6,267)

Gross profit


1,159

3,352

4,839






Administrative expenses


(3,564)

(2,858)

(6,340)

Results from operating activities


(2,405)

494

(1,501)






Financial income


37

9

26

Financial expenses


-

(1)

(1)

Foreign exchange movement


(173)

17

165

Net financing expense


(136)

25

190

Share of loss of equity accounted investees


-

(263)

(1,417)

Gain on disposal of equity-accounted investee


-

-

2,016

(Loss)/profit before tax


(2,541)

256

(712)






Income tax credit


(1)

(2)

12






(Loss)/profit from continuing operations


(2,542)

254

(700)






Discontinued operations





(Loss)/profit from discontinued operation (net of tax)         

2

(24)

(530)

1,370






(Loss)/profit for the period


(2,566)

(276)

670






Other comprehensive income





Exchange differences on translation of foreign operations


(168)

343

351

Total comprehensive income for the period


(2,734)

67

1,021






(Loss)/profit for the period attributable to:





Equity holders of the parent


(2,705)

(276)

690

Non-controlling interest


(29)

-

(20)

(Loss)/profit for the period


(2,734)

(276)

670






Total comprehensive income attributable to:





Equity holders of the parent


(2,705)

67

1,041

Non-controlling interest


(29)

-

(20)

Total comprehensive income for the period


(2,734)

67

1,021






 

 

H1 2015 restated to show the effect of operations which have been discontinued.

 

 

 

 

 

 

 

Consolidated Statement of Comprehensive Income (continued)

For the 6 months to 30 June 2016

 




restated




H1 2016

(unaudited)

€'000

H1 2015

(unaudited)

€'000

FY 2015

(audited)

€'000

Basic (loss)/profit per share in € cents










From continuing operations

4

(0.56)

0.10

(0.24)






From continuing and discontinued operations

4

(0.57)

(0.11)

0.23






Diluted (loss)/profit per share in € cents










From continuing operations

4

(0.56)

0.10

(0.24)






From continuing and discontinued operations

4

(0.56)

(0.11)

0.22






 

 

H1 2015 restated to show the effect of operations which have been discontinued.

 

 


Consolidated Statement of Changes in Equity

For the 6 months to 30 June 2016

 



Share

Capital


Share

premium


Share-based payment reserve


Retained

Earnings


Translation reserve


Other reserve


Total equity attributable to shareholders of the Company


Equity attributable to non-controlling interest


Total

equity



€'000


€'000


€'000


€'000


€'000


€'000


€'000


€'000


€'000




















Balance at 1 January 2016


4,098


85,375


773


(73,823)


893


(1,621)


15,695


(9)


15,686

Total comprehensive income for the period



















Loss for the period


-


-


-


(2,537)


-


-


(2,537)


(29)


(2,566)

Other comprehensive income



















Foreign currency translation differences


-


-


-


-


(168)


-


(168)


-


(168)




















Total comprehensive income for the period


-


-


-


(2,537)


(168)


-


(2,705)


(29)


(2,734)




















Transactions with owners, recorded directly in equity

Contributions by and distributions to owners



















Share-based payments


-


-


128


-


-


-


128


-


128

Issuance of shares


519


3,826


-


-


-


-


4,345


-


4,345




















Total contributions by and distributions to owners


519


3,826


128


-


-


-


4,473


-


4,473




















Changes in ownership interests in subsidiaries



















Acquisition of subsidiary through issuance of shares


-


-


-


-


-


-


-


-


-




















Balance at 30 June 2016


4,617


89,201


901


(76,360)


725


(1,621)


17,463


(38)


17,425




















 

 

 

 

 

 

 

 

 

 


Consolidated Statement of Changes in Equity (continued)

For the 6 months to 30 June 2015

 



Share

Capital


Share

premium


Share-based payment reserve


Retained

Earnings


Translation reserve


Other reserve


Total equity attributable to shareholders of the Company


Equity attributable to non-controlling interest


Total

equity



€'000


€'000


€'000


€'000


€'000


€'000


€'000


€'000


€'000




















Balance at 1 January 2015


2,461


76,917


756


(74,513)


542


-


6,163


-


6,163

Total comprehensive income for the period



















Loss for the period


-


-


-


(276)


-


-


(276)


-


(276)

Other comprehensive income



















Foreign currency translation differences


-


-


-


-


343


-


343


-


343




















Total comprehensive income for the period


-


-


-


(276)


343


-


67


-


67




















Transactions with owners, recorded directly in equity

Contributions by and distributions to owners



















Share-based payments


-


-


-


-


-


-


-


-


-

Issuance of shares


70


-


-


-


-


-


70


-


70




















Total contributions by and distributions to owners


70


-


-


-


-


-


70


-


70




















Changes in ownership interests in subsidiaries



















Acquisition of subsidiary through issuance of shares


-


-


-


-


-


-


-


-


-




















Balance at 30 June 2015


2,531


76,917


756


(74,789)


885


-


6,300


-


6,300




















 

 

 

 

 

Consolidated Statement of Changes in Equity (continued)

For the year ended 31 December 2015

 

 



Share

Capital


Share

premium


Share-based payment reserve


Retained

Earnings


Translation reserve


Other reserve


Total equity attributable to shareholders of the Company


Equity attributable to non-controlling interest


Total

equity



€'000


€'000


€'000


€'000


€'000


€'000


€'000


€'000


€'000




















Balance at 1 January 2015


2,461


76,917


756


(74,513)


542


-


6,163


-


6,163

Total comprehensive income for the period



















Profit for the period


-


-


-


690


-


-


690


(20)


670

Other comprehensive income



















Foreign currency translation differences


-


-


-


-


351


-


351


-


351




















Total comprehensive income for the period


-


-


-


690


351


-


1,041


(20)


1,021




















Transactions with owners, recorded directly in equity

Contributions by and distributions to owners



















Share-based payments


-


-


17


-


-


-


17


-


17

Issuance of shares


70


-


-


-


-


-


70


-


70




















Total contributions by and distributions to owners


70


-


17


-


-


-


87


-


87




















Changes in ownership interests in subsidiaries



















Acquisition of subsidiary through issuance of shares


1,567


8,458


-


-


-


(1,621)


8,404


11


8,415




















Balance at 31 December 2015


4,098


85,375


773


(73,823)


893


(1,621)


15,695


(9)


15,686




















 

 

 

 

 


Consolidated Statement of Cash Flow

For the 6 months to 30 June 2016






H1 2016

H1 2015

 FY 2015



(unaudited)

(unaudited)

(audited)



€'000

€'000

€'000

Cash flows from operating activities





(Loss)/profit for the year


(2,734)

(278)

670

Adjustments for:





Depreciation, amortisation and impairment


30

618

34

Amortisation of deferred income


-

(169)

-

Foreign exchange loss/(gain) on translation


341

(23)

(165)

Financial income


(37)

-

(26)

Financial expense


-

452

1

Impairment of receivables - bad debt write-off


-

-

-

Share of loss of equity accounted investees


-

263

1,417

Gain on disposal of equity-accounted investees


-

-

(2,016)

Loss/(gain) on sale of discontinued operations, net of tax


24

-

(1,370)

Gain on sale of fixed assets


-

-

-

Equity settled share-based payment expenses


128

-

17

Taxation


1

-

(12)



(2,247)

863

(1,450)






(Increase)/decrease in trade and other receivables


334

(116)

121

(Decrease) in trade and other payables


(1,696)

(129)

(1,218)



(1,362)

(245)

(1,097)






Net cash from operating activities


(3,609)

618

(2,547)






Cash flows from investing activities





Proceeds from disposal of discontinued operations


-

-

731

Acquisition of a subsidiary, net of cash acquired


-

-

607

Acquisition of property, plant & equipment


(23)

(35)

(52)

Disposal of property, plant & equipment


-

-

-

Net cash from investing activities


(23)

(35)

1,286






Cash flows from financing activities





Proceeds from the issue of share capital


4,344

70

-

Proceeds from new loan


-

-

-

Proceeds from other financial assets


2,420

-

-

Repayment of borrowings


-

(184)

-

Interest received


37

9

26

Interest paid


-

(460)

(1)

Net cash from financing activities


6,801

(565)

25






Net increase/(decrease) in cash and cash equivalents


3,169

18

(1,236)

Net cash and cash equivalents at 1 January


2,935

4,058

4,057

Effect of foreign exchange rate fluctuations on cash held


(579)

116

114

Net cash and cash equivalents at 30 June


5,525

4,192

2,935

 

 

 

 

 

Notes

 

Significant accounting policies

redT energy plc (the "Company") is a public company incorporated in Jersey under Companies (Jersey) Law 1991.  The address of its registered office is 3rd floor, Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ.  The consolidated interim financial report of the Company for the period from 1 January 2016 to 30 June 2016 comprises of the Company and its subsidiaries (together the "Group").

 

Basis of preparation

The annual financial statements of the Group for the year ended 31 December 2015 have been prepared in accordance with IFRSs as adopted by the EU ("Adopted IFRSs").  The interim set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU. The interim set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 December 2015.  They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2015.

This interim financial information has been prepared on the historical cost basis. The accounting policies applied are consistent with those adopted and disclosed in the annual financial statements for the period ended 31 December 2015.  The accounting policies have been consistently applied across all Group entities for the purpose of producing this interim financial report.

The financial information included in this document does not comprise of statutory accounts within the meaning of Companies (Jersey) Law 1991.  The comparative figures for the financial year ended 31 December 2015 are not the company's statutory accounts for that financial year within the meaning of Companies (Jersey) Law 1991. Those accounts have been reported on by the company's auditors and delivered to the Jersey Financial Services Commission. The report of the auditors was unqualified.

 

Estimates

The preparation of the interim financial report in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

 

 

 

Notes (continued)

 

 

1    Segmental Reporting

 

Operating segments

 

The Group comprises of the following reporting segments:

 

1.      redT: redT develops and supplies durable and robust energy storage machines based upon a proprietary vanadium redox flow technology for on and off-grid applications.

 

2.      Africa: The Africa business segment manages two investment advisory mandates; a co-advisory mandate to Green Africa Power LLP (GAP) through our partner EISER Infrastructure Partners LLP, and Renewable Energy Performance Platform (REPP) mandate in partnership with Greenstream Network Ltd.

 

3.      US: The US is comprised of the management of the previously disposed biogas assets via a service contract agreement.

 

4.      Other: This segment contains the EU ETS Compliance Services business (carbon). 

 

 

Inter segment transactions are carried out at arm's length.

 


Notes (continued)

 



redT

Africa

US

Other

Consolidated



H1 2016

H1 2016

H1 2016

H1 2016

H1 2016



(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)



€'000

€'000

€'000

€'000

€'000















Segment revenue


82

868

826

2,757

4,533

Segment gross margin


(353)

621

827

65

1,159








Segment administrative expenses


(2,166)

(551)

(662)

(57)

(3,436)

Segment result


(2,519)

70

165

8

(2,277)








Share-based payments






(128)

Results from operating activities






(2,405)








Finance income






37

Finance expense






-

Foreign exchange movement






(173)

Share of loss of equity accounted investees






-

Loss on original investment






-

Taxation






(1)

Loss from discontinued operation






(24)

Loss for the period






(2,566)

 

 

  

 

Notes (continued)

 


redT

Africa

US

Other

Consolidated


H1 2015

H1 2015

H1 2015

H1 2015

H1 2015


(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)


€'000

€'000

€'000

€'000

€'000













Segment revenue

356

606

3,118

2,362

6,442

Segment gross margin

362

534

2,309

147

3,352







Segment administrative expenses

(1,383)

(435)

(922)

(118)

(2,858)

Segment result

(1,021)

99

1,387

29

494







Share-based payments





-

Results from operating activities





494







Finance income





9

Finance expense





(1)

Foreign exchange movement





17

Share of loss of equity accounted investees





(263)

Gain on original investment





-

Taxation





(2)

Loss from discontinued operation





(530)

Loss for the period





(276)

 

 

 

H1 2015 restated to show the effect of operations which have been discontinued.

 

 

 

Notes (continued)


 

redT

 

Africa

 

US

Other

Consolidated


FY 2015

FY 2015

FY 2015

FY 2015

FY 2015


(audited)

(audited)

(audited)

(audited)

(audited)


€'000

€'000

€'000

€'000

€'000













Segment revenue

392

1,198

4,812

4,704

11,106

Segment gross margin

256

1,089

3,315

179

4,839







Segment administrative expenses

(3,048)

(959)

(1,879)

(437)

(6,323)

Segment result

(2,792)

130

1,436

(258)

(1,484)







Share-based payments





(17)

Results from operating activities





(1,501)







Finance income





26

Finance expense





(1)

Foreign exchange movement





165

Share of loss of equity accounted investees





(1,417)

Gain on original investment





2,016

Taxation





12

Gain from discontinued operation




1,370

Profit for the year





670

 

 

  


Notes (continued)

 

2    Discontinued operations

Summary results of discontinued operations - Group

 




restated




H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

US biogas income statement


-

(350)

(371)

US biogas net gain from disposal


-

-

2,042

Kenya income statement net of FV loss on assets


(3)

(117)

(160)

Tanzania income statement net of FV loss on assets


(21)

(63)

(141)



(24)

(530)

1,370

 

 

3    Share based payments

During the period, the Group operated share-based incentive plans called the 2015 redT Employee Share Plan.  The expense recognised in the period in respect to the plans is set out below.

 



H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

2015 redT Employee Share Plan


128

-

17

 

 

4    Profit/(loss) per share

Profit per share attributable to equity holders of the company is as follows:

 



restated



H1 2016

H1 2015

FY 2015


(unaudited)

(unaudited)

(audited)


€ cents

€ cents

€ cents


per share

per share

per share

Basic (loss)/profit per share




From continuing operations

(0.56)

0.10

(0.24)

From continuing and discontinued operation

(0.57)

(0.11)

0.23


__            

             

_            

 

Diluted (loss)/profit per share




From continuing operations

(0.56)

0.10

(0.24)

From continuing and discontinued operation

(0.56)

(0.11)

0.22


            ________

            ______

             ______





Profit/(loss) used in calculation of basic and diluted loss per share

€'000

€'000

€'000

From continuing operations

(2,542)

254

(700)

From continuing and discontinued operation

(2,566)

(276)

670





Weighted average number of shares used in calculation




Basic

451,867,175

251,974,892

287,839,087

Diluted

456,532,883

251,974,892

300,195,730


             ______

             _

             ______

 

 

Notes (continued)

 

4    Profit/(loss) per share (continued)

 


H1 2016

H1 2015

FY 2015


(unaudited)

(unaudited)

(audited)


Number

Number

Number





Number in issue at 1 January

409,833,227

246,135,113

246,135,113

Effect of share options exercised

1,578,107

5,839,779

6,309,589

Effect of shares issued in the year

40,455,841

-

35,394,385


___________

___________

___________

Weighted average of basic shares at end of period

451,867,175

251,974,892

287,839,087


___________

___________

___________

Effect of share options granted not yet exercised

4,665,708

___________

-

___________

12,356,643

___________





Weighted average number of diluted shares at end of period

456,532,883

251,974,892

300,195,730


___________

___________

___________

 

5    Prepayments and accrued income



H1 2016 (unaudited)

H1 2015

 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

Prepayments


269

474

247

Accrued income - Africa


-

273

34

Accrued income - US


-

962

-

Accrued income - CDC accruals


100

133

100



369

1,842

381

 

6    Trade and other receivables

 

 


H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

Trade receivables


286

1,129

820

Other receivables


461

481

238



747

1,610

1,058

 

7    Cash and cash equivalents

 

 

 


H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

Cash on deposit


5,525

3,399

2,935

Cash held for restricted use*


-

793

-



5,525

4,192

2,935






 

* Cash held for restricted use relates to cash held as debt reserve in relation to the US biogas facilities

 

 

 

 

Notes (continued)

 

8    Loans and borrowings



H1 2016 (unaudited)

€'000   

H1 2015 (unaudited)

€'000

FY 2015 (audited)

€'000

Non-current liabilities





Secured loans *


-

12,436

-






Current liabilities





Secured loans *


-

566

-






Total Secured loans


-

12,912

-

 

* The loans are secured against the US biogas facilities

 

 

9    Trade and Other Payables



H1 2016 (unaudited)

H1 2015 (unaudited)

FY 2015 (audited)



€'000

€'000

€'000

Trade payables and non CDC accruals


2,994

2,220

4,993

Other accruals - CDC accruals


504

571

529



3,498

3,391

5,522

 

 

10  Deferred Income








H1 2016 (unaudited)

€'000

H1 2015 (unaudited)

€'000

FY 2015 (audited)

€'000

Non-current liabilities





Deferred income - grant


-

4,450

-

Deferred income - business


250

-

250



250

4,450

250






Current liabilities





Deferred income - grant


-

340

-

Deferred income - business


524

13

408



524

353

658

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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