Source - RNS
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                                                          £116k (2015: £620k)

·      Gross Profit                                                    £110k (2015: £487k)

·      Post tax profit / (loss)                                    £2.0 million profit (2015: £14.1 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.

·      £2.0 million profit for the period is primarily due to foreign exchange gains associated with loans to Argentine operations.

·      Finance expense was £0.2 million compared to £0.6 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 £2.8 million to £1.2 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

Executive Director

Paul Shackleton 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 £37.5m 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 £1.6 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 to

6 months to

12 months to

 

 

30/06/16

£'000 

30/06/15

£'000

31/12/15

£'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

 

 

Notes       

30/6/16

£'000

30/6/15

£'000

31/12/15

£'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 capital £'000

Share premium £'000

Foreign currency reserve £'000

Share option reserve £'000

Retained earnings £'000

Other reserve £'000

Plant reserve £'000

Total £'000

Non-controlling interest £'000

Total equity £'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 to

6 months to

12 months 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 to

6 months to

12 months 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 to equity holders of the parent from continuing operations

£2.0m

£(14.1m)

£(20.0m)

 

 

 

 

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 30th 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 £1.6 million of these creditors outstanding.  The Board of Directors consider that these amounts will be settled in the short term and therefore the £45 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 29th 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
 
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