("Rurelec" or the "Company"
and with its subsidiaries the "Group")
Update on Reporting Timetable
Additional Trading Update
The Company confirms today that whilst it is progressing the audit for its financial results for the 12 months ended 31 December 2020 (the "Financial Period") it is facing challenges due to COVID 19. Accordingly, the Company has been granted an extension to the date by which its annual accounts can be published. The new deadline by which the annual accounts must be announced is 30 September 2021, however the Board intend to publish and file these accounts on or before 15 September 2021.
The Company has also received confirmation that this extended timetable is permitted pursuant to the relevant amendments to the Companies Act 2006 (and the requirements of Companies House).
The Company released its interim results for the six months ended 30 June 2020, on 15 September 2020. Further trading updates were released on 3 November 2020, 18 May 2021 and 2 June 2021 (the "Trading Updates").
In addition to the information set out in those updates, the Company provides the following information:
The Group's unaudited loss (before impairments) for the Financial Period is approximately £1.7m (2019: £2.4m). However, this figure is given before any impairments that may be applied to the carrying values of the Group assets. At the present time, the Directors are unable to give any firm guidance on the impairment figure. However, the Directors believe that the impairment may range between US $2.5m to US $10m (£1.8m to £7.4m); and accordingly the unaudited, total loss for the Financial Period is estimated to be between £3.7m to £11.7m (2019: £4.4m).
The unaudited value of total assets at the end of the Financial Period was £19.1m (prior to any impairment as set out above) (2019: £21.0m, after impairment); and unaudited cash and cash equivalents was £668k (2019: £137k).The current cash position as at 21 June 2021 is £289k.
As set out in the Trading Updates, unless and until the Argentinean Government resolves the problems and challenges caused by the changes to the spot energy tariffs for electricity the Company will continue to face significant working capital pressures. The Directors continue to explore potential funding opportunities including the sale of its other assets, and in particular, the Frame 6B turbine in Chile and the 701 turbines situated in Italy.
Further updates will be provided in due course as appropriate.
For further information please contact:
W H Ireland (Nomad & Broker)
Simon Morris, Director
Andy Coveney, Director
Tel: 020 7549 2839/40
Tel: 020 7220 1666