TIDMRPL
RNS Number : 2830K
Renewable Power and Light Plc
16 April 2010
Renewable Power & Light plc
Results for the Year Ended 31 December 2009
Chairman's Review
Overview
Renewable Power & Light plc ("RPL" or "the Company" and together with its
subsidiaries "the Group") was established in 2006 as an independent producer of
green or renewable electric power.
In December 2008, the details of a strategy to maximise and realise value for
RPL shareholders were announced. This strategy had three key elements:
· Return of an initial 10 pence per share to RPL shareholders via a capital
distribution
· Execution of the ongoing asset sale processes; and
· An orderly realisation of the net value of the remaining business for RPL
shareholders, considering the remaining assets and liabilities of the Company
and the ongoing working capital requirements.
During 2009, significant progress was made on these strategies:
· In February, a 10 pence per share capital distribution was made to
shareholders
· At the end of July, the Company announced the sale of the Elmwood Park and
Massena power plants, which was completed in September and October, respectively
· The biodiesel equipment was sold at auction in November
· In December, a further 8 pence per share capital distribution was made to
shareholders
Following the year end, in March of 2010, $500,000 of the $600,000 rail car
security deposit was returned to the Company. The final $100,000 is expected to
be returned shortly. The completion of the rail car lease obligations and the
return of the security deposit complete the sale of all of the material assets
of the Company.
The disposal of the power plants and the biodiesel equipment represented a
fundamental change of business for the Company and therefore in August
shareholders approved an investing strategy requiring an orderly winding up of
the Company, the principal aim being to reduce overheads as and when possible,
preserving cash for the purposes of making a final capital distribution to
shareholders.
A key factor in this process was to isolate the Company's liabilities at its US
subsidiary, RPL Holdings, Inc., by the proposed sale of the subsidiary to
certain current and former RPL Holdings management, thereby leaving a clean
shell, listed UK entity. This would have protected the Company from any unknown
liabilities, facilitated a speedier and effective winding up of the Company and
made the Company more attractive as a merger candidate if an acceptable
transaction emerged prior to the winding up. Unfortunately, this transaction
was not approved by two new significant minority shareholders, which also meant
that the previously approved shareholder plan to return capital to all
shareholders could not proceed.
The Board and management communicated with a number of parties during 2008 and
2009 who indicated an interest in making a potential offer for the Company.
Most of these discussions were preliminary and did not proceed further. On
February 23, 2010 the Company announced that all potential offerors had
confirmed that they were no longer contemplating making or participating in an
offer for the Company and, therefore, the Company was no longer deemed to be in
an offer period.
Outlook
Following the approval of the investing policy in August 2009, the Company has
operated under the strategy of realising value for shareholders by selling
assets and returning funds by way of capital distributions. A final windup and
capital distribution was being planned. On March 30, 2010 two shareholders
acting in concert, Thalassa Holdings Ltd. and CityPoint Holdings Ltd.
("THL/CHL"), collectively representing a 29.8% interest, requisitioned a general
meeting to replace the current Board other than Timothy Hunstad. THL/CHL had
previously requisitioned a general meeting to remove the Board, elect its own
directors and to change the investing policy of the Company but has since
withdrawn its proposal for a change in investing policy. The Board has
repeatedly requested that THL/CHL provide shareholders with a detailed strategy
so that investors can have sufficient information to make an informed decision
on the future of the Company but as of the date of this Report, regrettably, no
such information has been received.
It is the Board's view that THL/CHL wishes to take control of the direction of
the Company and use the remaining cash in the business to fund a new investment
strategy going forward. The Board understands that shareholders will eventually
be asked to vote on a change of strategy from a final capital distribution to
using the cash for an unknown investment at a further shareholder meeting which
will be required to be convened for that purpose pursuant to the AIM Rules for
Companies.
As THL/CHL have publicly stated that they do not wish to see any further capital
distributions or the winding up of the company, the Board concluded that there
was a realistic expectation that the Company will be in existence 12 months
after the balance sheet date, though without the US operations. The Board has
therefore continued to adopt the going concern basis in the preparation of the
financial statements.
Results
As a result of the Board's decision to sell the power plants in 2008, the
operations of the Massena and Elmwood Park plants are classified as discontinued
operations, as well as the US corporate overhead expenses that supported the
plants. With the sale of these operations during the year, the results reflect
only a partial year of operation.
The loss from continuing operations, which is entirely holding company
administrative expense, was US$1.6 million (2008: US$4.9 million). The loss
before tax was US$1.6 million (2008: US$5.0 million.) The loss from
discontinued operations was US$6.9 million (2008: US$37.2 million) primarily
due to losses on the sale of assets and the settlement with Greenline
Industries.
The Group balance sheet had total assets at the year-end of US$6.1 million
(2008: US$42.1 million). This reduction reflects the sale of the power plants
and the biodiesel equipment and the two capital distributions to shareholders.
Net cash (cash and equivalents) at the year-end was US$5.0 million (2008:
US$25.4 million). The Group did not have any short-term or long-term debt as of
31 December 2009 (2008: nil).
Board
As a result of the sales of the power plants and in order to reduce overheads
and preserve cash, Mark Draper and Don Verbick stepped down as directors in
September. In addition, Don Verbick left his position as Senior Vice President
of Operations and President of RPL Holdings, Inc. in October. I would like to
thank Mark and Don for their contributions to the Group since its inception and
wish them all the best for the future.
Dividends
As outlined at the time of our IPO, the Board intended first to achieve capital
growth and, in the short term, to reinvest future profits in the Group. As a
result of the previously announced and approved strategy to realise value for
shareholders, RPL is unlikely to declare dividends in the foreseeable future.
Due to the THL/CHL's announced strategy to block future capital distributions to
shareholders, no further capital distributions are likely.
Colleagues
I would like to thank all of my colleagues on the Board and the management team
for their commitment and hard work during a very difficult year.
Michael G. Reynolds
Chairman
15 April 2010
Chief Executive Officer's Review of Operations
In 2009 the Group focused its efforts on the sale of the power plants and
biodiesel equipment assets and the conclusion of the railcar lease while
operating the plants in an efficient, cash flow positive manner. Projects to
reduce costs that we began in 2008 were completed in 2009. These actions were
implemented within the overall goal of continued safe and
environmentally-compliant operations. This helped to maximise the sale price
received for the plants in a recessionary economic environment. The plants were
sold for a total consideration of US$8.1 million giving rise to a final loss on
disposal of US$0.5 million. Additionally, management settled the arbitration
claim with Greenline Industries in April 2009.
Massena
This 85 MW plant is located in upstate New York and in 2009 it operated in a
peaking mode. The plant was sold in October 2009 and the following results
compare the partial year results of 2009 to the total year of 2008. The
northeastern US experienced the coolest summer in recent history, which resulted
in the plant only being dispatched once. The plant generated US$0.04 million of
electricity revenues (2008: US$0.4 million). In addition, it received capacity
payments from the local electric transmission grid totalling US$2.0 million
(2008: US$2.3 million).
In 2009, Massena implemented operating staff reductions and other cost saving
measures consistent with operating the plant in a peaking mode. This reduction
in operating costs, including the natural gas transportation agreement, enabled
the power plant to generate a positive cash flow.
Given the announced strategy of selling the power plants in order to realise
value for shareholders and the poor economic environment, the Massena plant was
written down an additional US$1.4 million at the half year in recognition of the
market value of the facility. The plant was sold on 23 October 2009.
Elmwood Park
This 65 MW plant located in New Jersey is in an energy critical area of the
electric transmission grid which serves New York City and other higher cost
markets in the northeastern US. The plant was sold in September 2009 and the
following results compare the partial year results of 2009 to the total year of
2008. The plant operated in a peaking mode, generating US$0.3 million of
electricity revenues (2008: US$3.3 million), due to the same cool weather
pattern that minimised the Massena plant's run time. In addition, it received
capacity payments from the local electric transmission grid totalling US$2.1
million (2008: US$1.9 million). The plant also received $0.6 million of revenue
(2008: nil) from the sale of excess NOx emission credits.
In April 2009, we completed the upgrade of the interconnection transmission line
with PJM Interconnection, the operator of the regional electric transmission
grid. This allowed the plant to receive additional annual capacity payments
beginning in June 2009, which resulted in the plant operating with a strong
positive cash flow before energy sales.
Also completed in April 2009 was the construction of a sewer line upgrade that
allowed us to bypass Marcal Paper Mills' processing of our waste water. This
became necessary after Marcal, the owner of the land on which the power plant is
situated, filed for Chapter 11 bankruptcy protection in November 2006 and the
Bankruptcy Court subsequently allowed Marcal to reject its steam sales and land
lease agreements with RPL. RPL also obtained water supply and discharge
agreements directly from the Borough of Elmwood Park and Passaic Valley Sewage
Commission. The plant was sold on 16 September 2009.
Biodiesel facility
The biodiesel equipment was inventoried and placed into storage and the Group
finalised the sale of the equipment through an auction process in November 2009.
As a result of the continuing excess capacity in the biodiesel manufacturing
industry, the equipment was sold at a US$3.3 million loss.
In spite of the industry overcapacity, during the year we subleased 84% of the
railcars which were originally intended to transport feedstock and biodiesel
between our plants. The lease expired in October 2009 and the railcars were
returned to the owner. Of the total deposit of US$0.6 million, US$0.5 million
was returned in March 2010 and the final US$0.1 million is expected shortly.
Outlook
All of the operating assets of the company have been sold in anticipation of the
execution of the dissolution of the Company as previously approved by the
shareholders. Subsequent to the January 2010 purchase of a 29.8% interest in
the Company's issued share capital, THL/CHL have indicated their unwillingness
to support the Company's previously approved strategy and have publicly stated
that they will block any further capital distributions.
Victor J. Fryling
Interim President and Chief Executive Officer
15 April 2010
Consolidated Income Statement
Renewable Power & Light plc
Year Ended 31 December 2009
+------------------------------------+------+------------+------------+
| | | Year ended | Year ended |
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
+------------------------------------+------+------------+------------+
| |Note | $'000 | $'000 |
+------------------------------------+------+------------+------------+
| | | | Restated |
+------------------------------------+------+------------+------------+
| Continuing Operations: | | | |
+------------------------------------+------+------------+------------+
| Revenue | 2 | - | - |
+------------------------------------+------+------------+------------+
| Cost of sales | | - | - |
+------------------------------------+------+------------+------------+
| Gross profit | | - | - |
+------------------------------------+------+------------+------------+
| | | | |
+------------------------------------+------+------------+------------+
| Administrative expense | | (1,637) | (4,901) |
+------------------------------------+------+------------+------------+
| Loss from operations | | (1,637) | (4,901) |
+------------------------------------+------+------------+------------+
| | | | |
+------------------------------------+------+------------+------------+
| Investment income | | 9 | - |
+------------------------------------+------+------------+------------+
| Other losses | | - | (81) |
+------------------------------------+------+------------+------------+
| Loss before tax | | (1,628) | (4,982) |
+------------------------------------+------+------------+------------+
| | | | |
+------------------------------------+------+------------+------------+
| Income tax | 5 | - | - |
+------------------------------------+------+------------+------------+
| | | (1,628) | (4,982) |
| Loss for the period for continuing | | | |
| operations | | | |
+------------------------------------+------+------------+------------+
| | | | |
| Discontinued Operations: | | | |
+------------------------------------+------+------------+------------+
| Loss from discontinued operations | 3 | (6,936) | (37,212) |
+------------------------------------+------+------------+------------+
| | | (8,564) | (42,194) |
| Total loss for the period | | | |
| attributable to equity holders of | | | |
| the parent company | | | |
+------------------------------------+------+------------+------------+
| | | - | - |
| Other comprehensive income | | | |
+------------------------------------+------+------------+------------+
| | | (8,564) | (42,194) |
| Total comprehensive loss for the | | | |
| period attributable to equity | | | |
| holders of the parent company | | | |
+------------------------------------+------+------------+------------+
| | | | |
+------------------------------------+------+------------+------------+
| | | | |
+------------------------------------+------+------------+------------+
| Loss per share | | | |
+------------------------------------+------+------------+------------+
| Basic and diluted from continuing | 6 | $(0.02) | $(0.05) |
| operations | | | |
+------------------------------------+------+------------+------------+
| Basic and diluted from | 6 | $(0.08) | $(0.39) |
| discontinued operations | | | |
+------------------------------------+------+------------+------------+
| Basic and diluted from | 6 | $(0.10) | $(0.44) |
| continuing and discontinued | | | |
| operations | | | |
+------------------------------------+------+------------+------------+
The prior year comparatives have been restated to reflect the correct split
between continuing and discontinued operations of those activities discontinued
during 2009. This includes all of the Group's US operations, namely the power
plants, biodiesel equipment, railcar operations and all supporting US corporate
overheads. This is a reclassification only and has no impact on the net loss
for the period.
Consolidated Balance Sheet
Renewable Power & Light plc
31 December 2009
+-------------------------------------+------+------------+------------+
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
+-------------------------------------+------+------------+------------+
| |Note | $'000 | $'000 |
+-------------------------------------+------+------------+------------+
| ASSETS | | | |
+-------------------------------------+------+------------+------------+
| Non-current assets | | | |
+-------------------------------------+------+------------+------------+
| Property, plant and equipment | | 1 | 76 |
+-------------------------------------+------+------------+------------+
| Total non-current assets | | 1 | 76 |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Current assets | | | |
+-------------------------------------+------+------------+------------+
| Trade and other receivables | | 1,130 | 760 |
+-------------------------------------+------+------------+------------+
| Non-trade receivables | | 36 | 171 |
+-------------------------------------+------+------------+------------+
| Cash and cash equivalents | | 4,961 | 25,397 |
+-------------------------------------+------+------------+------------+
| Total current assets | | 6,127 | 26,328 |
+-------------------------------------+------+------------+------------+
| | | - | 15,729 |
| Non-current assets classified as | | | |
| held for sale | | | |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Total Assets | | 6,128 | 42,133 |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| EQUITY AND LIABILITIES | | | |
+-------------------------------------+------+------------+------------+
| Equity | | | |
+-------------------------------------+------+------------+------------+
| Share capital | 7 | 1,710 | 1,836 |
+-------------------------------------+------+------------+------------+
| Share premium | 7 | 68,444 | 93,593 |
+-------------------------------------+------+------------+------------+
| Investment in own shares | 7 | - | (1,436) |
+-------------------------------------+------+------------+------------+
| Capital redemption reserve | | 126 | - |
+-------------------------------------+------+------------+------------+
| Retained losses | | (65,467) | (56,075) |
+-------------------------------------+------+------------+------------+
| Total equity attributable to equity | | 4,813 | 37,918 |
| holders of the parent | | | |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Non-current liabilities | | | |
+-------------------------------------+------+------------+------------+
| Provisions | | 438 | - |
+-------------------------------------+------+------------+------------+
| Total non-current liabilities | | 438 | - |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Current liabilities | | | |
+-------------------------------------+------+------------+------------+
| Employee wages and benefits | | 600 | 1,630 |
+-------------------------------------+------+------------+------------+
| Trade and other payables | | 277 | 743 |
+-------------------------------------+------+------------+------------+
| Total current liabilities | | 877 | 2,373 |
+-------------------------------------+------+------------+------------+
| | | - | 1,842 |
| Liabilities directly associated | | | |
| with non-current assets held for | | | |
| sale | | | |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Total Equity and Liabilities | | 6,128 | 42,133 |
+-------------------------------------+------+------------+------------+
The financial statements were approved by the Board of Directors and authorised
for issuance on 15 April 2010. They were signed on its behalf by:
Timothy P. Hunstad, Director
Consolidated Statement of Cash Flows
Renewable Power & Light plc
Year ended 31 December 2009
+-------------------------------------+------+------------+------------+
| | | Year ended | Year ended |
| | | | |
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
+-------------------------------------+------+------------+------------+
| |Note | $'000 | $'000 |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Net Cash Flow From Operating | 8 | (3,822) | (12,761) |
| Activities | | | |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Investing activities | | | |
+-------------------------------------+------+------------+------------+
| Interest received | | 116 | 1,009 |
+-------------------------------------+------+------------+------------+
| Purchase of property, plant and | | (864) | (400) |
| equipment | | | |
+-------------------------------------+------+------------+------------+
| Cash flow from investing activities | | (748) | 609 |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Financing activities | | | |
+-------------------------------------+------+------------+------------+
| Proceeds from sale of assets | | 8,506 | - |
+-------------------------------------+------+------------+------------+
| Partial capital distribution to | | (24,372) | - |
| shareholders | | | |
+-------------------------------------+------+------------+------------+
| Cash flow from financing activities | | (15,866) | - |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Net decrease in cash and cash | | (20,436) | (12,152) |
| equivalents | | | |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Cash and Cash Equivalents at | | 25,397 | 37,549 |
| Beginning of Year | | | |
+-------------------------------------+------+------------+------------+
| | | | |
+-------------------------------------+------+------------+------------+
| Cash and Cash Equivalents at End of | | 4,961 | 25,397 |
| Year | | | |
+-------------------------------------+------+------------+------------+
Consolidated Statement of Changes in Equity
Renewable Power & Light plc
Year Ended 31 December 2009
+----------------------------+---+-+-------+----------+----------+------------+------------+----------+
| | Share | Share | Retained | Investment | Capital | |
| | Capital | Premium | Losses | in Own | Redemption | Total |
| | | | | Shares | Reserve | |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| | 1,836 | 93,593 | (56,075) | (1,436) | - | 37,918 |
| Balance at 1 January 2009 | | | | | | |
+----------------------------------+-------+----------+----------+------------+------------+----------+
| | | | | | | |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| Total comprehensive loss | - | - | (8,564) | - | - | (8,564) |
| for the period | | | | | | |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| Credit to equity for IFRS | - | - | (169) | - | - | (169) |
| 2 | | | | | | |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| Share cancellation | (126) | - | (1,436) | 1,436 | 126 | - |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| Share premium reduction | - | (25,149) | 25,149 | - | - | - |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| Partial capital | - | - | (24,372) | - | - | (24,372) |
| distribution | | | | | | |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| | | | | | | |
+----------------------------+-------------+----------+----------+------------+------------+----------+
| Balance at 31 December 2009 | 1,710 | 68,444 | (65,467) | - | 126 | 4,813 |
+--------------------------------+---------+----------+----------+------------+------------+----------+
| | | | | | | | | |
+----------------------------+---+-+-------+----------+----------+------------+------------+----------+
Renewable Power & Light plc
Year ended 31 December 2008
+-----------------------------+---------+---------+----------+------------+----------+
| | Share | Share | Retained | Investment | |
| | Capital | Premium | Losses | in Own | Total |
| | | | | Shares | |
+-----------------------------+---------+---------+----------+------------+----------+
| | $'000 | $'000 | $'000 | $'000 | $'000 |
+-----------------------------+---------+---------+----------+------------+----------+
| | | | | | |
+-----------------------------+---------+---------+----------+------------+----------+
| | 1,836 | 93,593 | (14,755) | - | 80,674 |
| Balance at 1 January 2008 | | | | | |
+-----------------------------+---------+---------+----------+------------+----------+
| | | | | | |
+-----------------------------+---------+---------+----------+------------+----------+
| Total comprehensive loss | - | - | (42,194) | - | (42,194) |
| for the period | | | | | |
+-----------------------------+---------+---------+----------+------------+----------+
| Credit to equity for IFRS 2 | - | - | 874 | - | 874 |
| | | | | | |
+-----------------------------+---------+---------+----------+------------+----------+
| Investment in own shares | - | - | - | (1,436) | (1,436) |
+-----------------------------+---------+---------+----------+------------+----------+
| | | | | | |
+-----------------------------+---------+---------+----------+------------+----------+
| Balance at 31 December 2008 | 1,836 | 93,593 | (56,075) | (1,436) | 37,918 |
+-----------------------------+---------+---------+----------+------------+----------+
The investment in own shares relates to the Employee Benefit Trust which was
dissolved during the year.
The capital redemption reserve was created on dissolution of the Employee
Benefit Trust and is a non-distributable reserve.
Notes to the Financial Statements
General information
The Company is incorporated in England and Wales under the Companies Act.
The financial statements are presented in US dollars, the currency in which the
majority of the Group's transactions are denominated.
1. Basis of preparation: The financial information set out in this
announcement does not constitute the Group's statutory accounts for the years
ended 31 December 2009 and 2008.
The accounts have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted for use by the European Union. Whilst the
financial information included in this announcement has been prepared in
accordance with the recognition and measurement criteria of IFRS, it does not
include sufficient information to comply with IFRS. The Group expects to publish
full financial statements which comply with IFRS on 20 April 2010.
The financial information has been prepared under the same accounting policies
as the Group's interim announcement for the period ended 30 June 2009 and which
can be viewed on the Group's website at www.rplplc.com.
The comparative financial information for the year ended 31 December 2008 is
derived from the statutory accounts for the year ended 31 December 2008. The
statutory accounts for the year ended 31 December 2008 have been delivered to
the Registrar of Companies. The auditors have reported on the 2008 accounts;
their report was unqualified.
The financial statements have been prepared on the historical cost basis.
Going concern: In July 2009, the Group signed an agreement to sell the two
power plants at Massena and Elmwood Park and completed that process in October
2009. Also in October 2009, the railcar lease expired and the railcars were
substantially returned to the lessor under the terms of the lease. The lease
deposit for the railcars was returned to RPL in March and April 2010. In
November 2009, the Group disposed of all of the biodiesel equipment in an
auction process. Thus, all results of US operations were classified as
discontinued in 2009. Provision has also been made for any contractual
commitments that have become onerous at the end of the reporting period, as is
required under IFRS.
An Investing Policy was approved by the shareholders in August 2009 and the
Group has been working to implement this approved plan. The Group made an
initial partial capital distribution to shareholders in February 2009 and a
second partial capital distribution in December 2009. However, in January
2010, a 29.8% interest in the outstanding shares was purchased by a shareholder
that stated their desired intent to not dissolve the Group but to develop a
business plan that would continue the operations of the company. This
shareholder has requisitioned a general meeting to replace a majority of the
current Board of Directors with their own candidates.
After assessing the outlook of the group under these circumstances, the
directors have concluded that it is reasonable to believe that the group will
continue in existence 12 months after the balance sheet date and therefore that
the going concern basis is appropriate in the preparation of these financial
statements.
2. Segmental information
Segmental information about business units is presented below:
Business segments
During the year for management purposes, the Group was organised into two
divisions - power plant operations and biodiesel plant operations. These
divisions are the basis on which the Group reports its primary segment
information. These segments have been determined by the chief operating
decision maker, which is the board of directors. Following the sale of these
operations during the year, all of the activity of these divisions is included
in discontinued operations. Subsequent to these disposals, the group only has
administrative expenses.
The Group had the following customers generating more than 10% of revenue:
Customer 1 43%
Customer 2 37%
+-----------------------+--------+---+------------+-------------+--------------+------------+
| | | Year ended 31 December 2009 |
+-----------------------+--------+----------------------------------------------------------+
| | Power | Biodiesel |Unallocated | Less | Continuing |
| | plant | plant | | Discontinued | Total |
| | operations | operations | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| | $'000 | $'000 | $'000 | $'000 | $'000 |
+-----------------------+------------+------------+-------------+--------------+------------+
| Revenue | | | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| External sales | 5,126 | 545 | - | (5,671) | - |
+-----------------------+------------+------------+-------------+--------------+------------+
| | | | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| Total revenue | 5,126 | 545 | - | (5,671) | - |
+-----------------------+------------+------------+-------------+--------------+------------+
| Result | | | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| Segment result | (363) | (4,493) | (3,694) | (6,913) | (1,637) |
+-----------------------+------------+------------+-------------+--------------+------------+
| | | | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| Investment income | | | | | 9 |
+-----------------------+------------+------------+-------------+--------------+------------+
| | | | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| Loss before tax | | | | | (1,628) |
+-----------------------+------------+------------+-------------+--------------+------------+
| | | | | | |
+-----------------------+------------+------------+-------------+--------------+------------+
| Taxation charge | | | | | - |
+-----------------------+------------+------------+-------------+--------------+------------+
| | | | | (1,628) |
| Loss from continuing operations | | | | |
| after tax attributable to equity | | | | |
| holders of parent | | | | |
+------------------------------------+------------+-------------+--------------+------------+
| | | | | | | |
+-----------------------+--------+---+------------+-------------+--------------+------------+
+------------------------+-+--------+-+-+----------+--------+----------+----+--+-----+--------+----------+--+-+-------------+
| Balance Sheet | | 31 December 2009 | |
+------------------------+----------+--------------------------------------------------------------------+------------------+
| | Power plant | Biodiesel plant | Unallocated | Total | | |
| | operations | operations | | | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| | $'000 | $'000 | $'000 | $'000 | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| | | | | | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| Segment assets | 259 | 628 | 5,241 | 6,128 | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| | | | | | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| Segment liabilities | - | 60 | 1,255 | 1,315 | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| | | | | | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| Net assets | | | | 4,813 | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| | | | | | | |
| | | | | | | |
+------------------------+-------------------------+-------------------+-------------+-------------------+----+-------------+
| | | |
+---------------------------------------------------------------------------+--+--------------------------------------------+
| | | 31 December 2009 | |
| Other Information | | | |
+--------------------------+----------+------------------------------------------------------------------+------------------+
| | | | | |
+--------------------------+---------------------------------------------------------+--------+-------------+---------------+
| | Power | Biodiesel plant | Unallocated | Total | | |
| | plant | operations | | | | |
| | operations | | | | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| | $'000 | $'000 | $'000 | $'000 | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| Capital expenditure on | | | | | | |
| property, plant and | | | | | | |
| equipment | | | | | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| Additions | 864 | - | - | 864 | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| Disposals | - | - | (3) | (3) | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| Depreciation | - | - | 31 | 31 | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| | | | | | | |
+--------------------------+------------+-------------------+------------------------+--------+-------------+---------------+
| | | | | | | | | | | | | | | | |
+------------------------+-+--------+-+-+----------+--------+----------+----+--+-----+--------+----------+--+-+-------------+
+-------------------+-+----------+--------+---+-----+--+----------+--+-+--+---+----+---+-------+-----+-+----------+----+------+-+
| | | Year ended 31 December 2008 |
+---------------------+-------------------+-------------------------------------------------------------------------------------+
| | Power plant | Biodiesel plant | Unallocated | Less Discontinued | Continuing |
| | operations | operations | | | Total |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | $'000 | $'000 | $'000 | $'000 | $'000 |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | | | | Restated |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Revenue | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| External sales | 8,153 | 711 | - | (8,864) | - |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Total revenue | 8,153 | 711 | - | (8,864) | - |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Result | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Segment result | (17,839) | (14,058) | (11,222) | (38,218) | (4,901) |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Investment income | | | | | - |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Other losses | | | | | (81) |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Loss before tax | | | | | (4,982) |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Taxation charge | | | | | - |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| Loss after tax | | | | | (4,982) |
| attributable to | | | | | |
| equity holders of | | | | | |
| parent | | | | | |
+-------------------+---------------------+--------------------------+-----------------+--------------------------+-------------+
| | | |
| | | |
| Balance Sheet | | 31 December 2008 |
+---------------------+-------------------+-------------------------------------------------------------------------------------+
| | | | | |
+---------------------+------------------------------------------------+-----------+-----------------+--------------------------+
| | Power | Biodiesel plant | Unallocated | Total | |
| | plant | operations | | | |
| | operations | | | | |
+-----------------------------------------+------------+----------------------+----------------+-----------------------+--------+
| | $'000 | $'000 | $'000 | $'000 | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| | | | | | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| Segment assets | 10,235 | 5,494 | 26,404 | 42,133 | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| | | | | | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| Segment liabilities | 1,523 | 319 | 2,373 | 4,215 | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| | | | | | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| Net assets | | | | 37,918 | |
+---------------------+--------------------------------+----------------------+----------------+-----------------------+--------+
| | | | | | |
+--------------------------------+------------+-------------------+--------------------+---------------+------------------------+
| | | |
| Other Information | 31 December 2008 | |
+---------------------------------------------------+-------------------------------------------------------------------------+-+
| | | | | |
+---------------------------------------------------+----------------------------------+-------------+------------------------+-+
| | Power plant | Biodiesel | Unallocated | Total | |
| | operations | plant | | | |
| | | operations | | | |
+---------------------------------------------------+---------------------+------------+-------------+------------------------+-+
| | $'000 | $'000 | $'000 | $'000 | |
+---------------------------------------------------+---------------------+------------+-------------+------------------------+-+
| Capital expenditure on property, plant and | | | | | |
| equipment | | | | | |
+---------------------------------------------------+---------------------+------------+-------------+------------------------+-+
| Additions | 396 | - | 4 | 400 | |
+---------------------------------------------------+---------------------+------------+-------------+------------------------+-+
| Depreciation | 2,338 | - | 32 | 2,370 | |
+---------------------------------------------------+---------------------+------------+-------------+------------------------+-+
| | | | | | |
+---------------------------------------------------+---------------------+------------+-------------+------------------------+-+
| | | | | | | | | | | | | | | | | | | | | |
+-------------------+-+----------+--------+---+-----+--+----------+--+-+--+---+----+---+-------+-----+-+----------+----+------+-+
Geographical segments
The Group has one geographical segment, the USA.
3. Assets of disposal group classified as held for sale and discontinued
operations
The assets and liabilities relating to the power plants, biodiesel equipment,
and railcars were presented as held for sale at 31 December 2008. These sales
were completed in 2009. All of the activity in relation to these operations was
classified as discontinued in both the year ending 31 December 2009 and the year
ending 31 December 2008. The comparatives for the year ending 31 December 2008
have also been restated to include all the corporate expenses of the US office
which was established to support the power plants and is therefore considered as
discontinued in 2009.
Analysis of the cashflows of discontinued operations is as follows:
+-------------------------------------+-------------+----------------+
| | Year ended | Year ended |
| | 31 | 31 December |
| | December | 2008 |
| | 2009 | |
+-------------------------------------+-------------+----------------+
| | $'000 | $'000 |
+-------------------------------------+-------------+----------------+
| | | |
+-------------------------------------+-------------+----------------+
| Operating cash flows | (1,717) | (440) |
+-------------------------------------+-------------+----------------+
| Investing cash flows | (757) | (396) |
+-------------------------------------+-------------+----------------+
| Financing cash flows | 8,506 | - |
+-------------------------------------+-------------+----------------+
| Total cash flows | 6,032 | (836) |
+-------------------------------------+-------------+----------------+
Assets of disposal group classified as held for sale:
+-------------------------------------+-------------+----------------+
| | Year ended | Year ended |
| | 31 | 31 December |
| | December | 2008 |
| | 2009 | |
+-------------------------------------+-------------+----------------+
| | $'000 | $'000 |
+-------------------------------------+-------------+----------------+
| | | |
+-------------------------------------+-------------+----------------+
| Property, plant and equipment | - | 10,519 |
+-------------------------------------+-------------+----------------+
| Inventory | - | 3,271 |
+-------------------------------------+-------------+----------------+
| Other current assets | - | 1,939 |
+-------------------------------------+-------------+----------------+
| Total | - | 15,729 |
+-------------------------------------+-------------+----------------+
Liabilities of disposal group classified as held for sale:
+-------------------------------------+------------+----------------+
| | Year ended | Year ended |
| | 31 | 31 December |
| | December | 2008 |
| | 2009 | |
+-------------------------------------+------------+----------------+
| | $'000 | $'000 |
+-------------------------------------+------------+----------------+
| | | |
+-------------------------------------+------------+----------------+
| Trade and other payables | - | 351 |
+-------------------------------------+------------+----------------+
| Employee wages and benefits | - | 10 |
+-------------------------------------+------------+----------------+
| Other current liabilities | - | 241 |
+-------------------------------------+------------+----------------+
| Provisions | - | 1,240 |
+-------------------------------------+------------+----------------+
| Total | - | 1,842 |
+-------------------------------------+------------+----------------+
Analysis of the results of discontinued operations is as follows:
+--------------------------------+------+--------------+------------+
| | | Year ended | Year ended |
| | | 31 December | 31 |
| | | 2009 | December |
| | | | 2008 |
+--------------------------------+------+--------------+------------+
| | Note | $'000 | $'000 |
+--------------------------------+------+--------------+------------+
| | | | Restated |
| | | | |
+--------------------------------+------+--------------+------------+
| Revenue | | 5,671 | 8,864 |
+--------------------------------+------+--------------+------------+
| Cost of sales | | (5,344) | (13,402) |
+--------------------------------+------+--------------+------------+
| Impairment of tangible fixed | | (1,400) | (24,354) |
| assets | | | |
+--------------------------------+------+--------------+------------+
| Gross loss | | (1,073) | (28,892) |
+--------------------------------+------+--------------+------------+
| Administrative expense | | (2,164) | (6,324) |
+--------------------------------+------+--------------+------------+
| Investment income | | 107 | 1,009 |
+--------------------------------+------+--------------+------------+
| Loss on disposal of property, | | (3,319) | (3,004) |
| plant, and equipment | | | |
+--------------------------------+------+--------------+------------+
| Gross loss before tax of | | (6,449) | (37,211) |
| discontinued operations | | | |
+--------------------------------+------+--------------+------------+
| Loss on disposal of | 4 | (464) | - |
| subsidiaries | | | |
+--------------------------------+------+--------------+------------+
| Income tax | | (23) | (1) |
+--------------------------------+------+--------------+------------+
| Loss for the year from | | (6,936) | (37,212) |
| discontinued operations | | | |
+--------------------------------+------+--------------+------------+
4. Business Disposals
During the year, the Group disposed of Elmwood Park Power LLC and Power City
Partners, LP, of which the principal activity was electric power generation.
The disposal was completed on 16 September 2009 and 23 October 2009,
respectively, and was carried out in line with the previously agreed investment
strategy to sell assets and return funds to shareholders.
The net assets disposed of are as follows:
+--------------------------------+----+--------------+------------+
| | | Year ended | Year ended |
| | | 31 December | 31 |
| | | 2009 | December |
| | | | 2008 |
+--------------------------------+----+--------------+------------+
| | | $'000 | $'000 |
+--------------------------------+----+--------------+------------+
| | | | |
+--------------------------------+----+--------------+------------+
| Property, plant and equipment | | 5,624 | 5,961 |
+--------------------------------+----+--------------+------------+
| Inventories | | 3,154 | 3,271 |
+--------------------------------+----+--------------+------------+
| Trade and other receivables | | 796 | 1,939 |
+--------------------------------+----+--------------+------------+
| Trade and other payables | | (603) | (602) |
+--------------------------------+----+--------------+------------+
| Provisions | | (1,240) | (1,240) |
+--------------------------------+----+--------------+------------+
| Goodwill | | 8 | 8 |
+--------------------------------+----+--------------+------------+
| Total fair value of net assets | | 7,739 | 9,337 |
| disposed | | | |
+--------------------------------+----+--------------+------------+
| | | (464) | |
| Gain/(loss) on disposal | | | |
+--------------------------------+----+--------------+------------+
| | | | |
| Net consideration comprises: | | | |
| | | | |
+--------------------------------+----+--------------+------------+
| Cash | | 7,275 | |
+--------------------------------+----+--------------+------------+
| Total net consideration | | 7,275 | |
+--------------------------------+----+--------------+------------+
5. Income tax
+----------------------------------+-----------+-------------+------------+
| | | Year ended | Year ended |
| | | 31 December | 31 |
| | | 2009 | December |
| | | | 2008 |
+----------------------------------+-----------+-------------+------------+
| | % | $'000 | $'000 |
+----------------------------------+-----------+-------------+------------+
| Reconciliation of effective tax | | | Restated |
| rate | | | |
+----------------------------------+-----------+-------------+------------+
| Loss before tax | | (1,628) | (4,982) |
+----------------------------------+-----------+-------------+------------+
| | | | |
+----------------------------------+-----------+-------------+------------+
| Income tax at standard rate | 28.0/28.5 | (456) | (1,420) |
+----------------------------------+-----------+-------------+------------+
| Tax losses for which no deferred | | 456 | 1,420 |
| tax asset was recognised | | | |
+----------------------------------+-----------+-------------+------------+
| Tax for the period | | - | - |
+----------------------------------+-----------+-------------+------------+
A UK deferred tax asset has not been recognised in respect of timing differences
relating to carried forward tax losses as there is insufficient evidence that
the asset will be recovered. At 31 December 2009, the Group had UK carried
forward tax losses of approximately $6.1 million (2008: $5.6 million). There
are no tax losses carried forward in relation to the US subsidiaries because the
Section 382(c) continuity of business requirement cannot be fulfilled subsequent
to the sale of all of the assets. The net operating losses from prior to the
latest ownership change in January 2010 cannot be used to offset income earned
after the ownership change and have thus been reduced to zero.
6. Loss and net assets per share
Basic loss per share
The calculation of basic loss per share has been determined as the net loss
after tax divided by the weighted average number of equity shares outstanding
during the period.
+----------------------------------------+------------+------------+
| | Year ended | Year ended |
| | 31 | 31 |
| | December | December |
| | 2009 | 2008 |
+----------------------------------------+------------+------------+
| | | Restated |
+----------------------------------------+------------+------------+
| Net loss attributable to ordinary | | |
| shareholders in thousands of dollars | | |
+----------------------------------------+------------+------------+
| Net loss attributable to ordinary | (1,628) | (4,982) |
| shareholders from continuing | | |
| operations | | |
+----------------------------------------+------------+------------+
| Net loss attributable to ordinary | (6,936) | (37,212) |
| shareholders from discontinued | | |
| operations | | |
+----------------------------------------+------------+------------+
| | | |
| Number of ordinary shares in thousands | | |
| of shares | | |
+----------------------------------------+------------+------------+
| Issued ordinary shares at the | 95,298 | 95,298 |
| beginning of the period | | |
+----------------------------------------+------------+------------+
| Issued ordinary shares at the end of | 88,765 | 95,298 |
| the period | | |
+----------------------------------------+------------+------------+
| | | |
+----------------------------------------+------------+------------+
| Weighted average number of ordinary | | |
| shares in thousands of shares | | |
+----------------------------------------+------------+------------+
| Weighted average number of ordinary | 91,487 | 95,298 |
| shares during the period | | |
+----------------------------------------+------------+------------+
| | | |
+----------------------------------------+------------+------------+
| Basic loss per share from continuing | $(0.02) | $(0.05) |
| operations | | |
+----------------------------------------+------------+------------+
| Basic loss per share from discontinued | $(0.08) | $(0.39) |
| operations | | |
+----------------------------------------+------------+------------+
| Basic loss per share from continuing | $(0.10) | $(0.44) |
| and discontinued operations | | |
+----------------------------------------+------------+------------+
Diluted loss per share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period adjusted for the effects of all potentially
dilutive shares.
The only potentially dilutive shares were the share options. These shares are
anti-dilutive as they would decrease the loss per share. There is therefore no
difference between the basic loss per share and diluted loss per share for the
period.
Net assets per share
+-----------------------------------------+------------+------------+
| | 31 | 31 |
| | December | December |
| | 2009 | 2008 |
+-----------------------------------------+------------+------------+
| Net assets per share | | |
+-----------------------------------------+------------+------------+
| Net assets attributable to shareholders | 4,813 | 37,918 |
| in thousands of dollars | | |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Basic weighted average of ordinary | 91,487 | 95,298 |
| shares in thousand of shares | | |
+-----------------------------------------+------------+------------+
| Diluted weighted average of potential | 97,812 | 102,443 |
| shares in thousand of shares | | |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Basic net assets per share | $0.053 | $0.398 |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Diluted net assets per share | $0.049 | $0.370 |
+-----------------------------------------+------------+------------+
7. Share capital and reserves
The Company's authorised share capital comprises 10,000,000,000 ordinary shares
of 1p each (2008: 10,000,000,000) and 88,764,646 of these shares were in issue
at 31 December 2009 (2008: 95,297,603). At 31 December 2008, 6,532,957 shares
were held in the Employee Benefit Trust, which were cancelled with the
dissolution of the Employee Benefit Trust on 1 June 2009.
On 23 January 2009 shareholders approved a share premium reduction and an
initial partial return of capital of 10 pence and on 18 February 2009, the
Company obtained court approval for a share premium reduction effective 19
February 2009. On 23 February 2009, the Company completed an initial partial
return of capital of 10 pence per share.
On 18 November 2009 shareholders approved a share premium reduction and a second
partial return of capital and on 9 December 2009, the Company obtained court
approval for a share premium reduction effective 10 December 2009. On 11
December 2009, the Company completed a second partial return of capital of 8
pence per share.
The purpose of these distributions was to effect an immediate return of capital
to shareholders and to position the Company to provide future distributions of
capital to shareholders as assets are sold and working capital needs diminish.
8. Reconciliation of loss from operations to net cash from operating activity
Consolidated cash flow statement
+----------------------------------------------+------------+------------+
| | Year ended | Year ended |
| | 31 | 31 |
| | December | December |
| | 2009 | 2008 |
+----------------------------------------------+------------+------------+
| | $'000 | $'000 |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Loss from operations | (8,657) | (43,119) |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Adjustments for: | | |
+----------------------------------------------+------------+------------+
| Depreciation of property, plant and | 31 | 2,370 |
| equipment | | |
+----------------------------------------------+------------+------------+
| Impairment of property, plant and equipment | 1,444 | 24,354 |
+----------------------------------------------+------------+------------+
| Loss on disposal of assets | 3,783 | 3,004 |
+----------------------------------------------+------------+------------+
| IFRS 2 charge | (169) | 874 |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Operating cash flows before movement in | (3,568) | (12,517) |
| working capital | | |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Decrease/(Increase) in inventories | 117 | (195) |
+----------------------------------------------+------------+------------+
| (Increase)/Decrease in receivables | 909 | 444 |
+----------------------------------------------+------------+------------+
| (Decrease)/Increase in payables | (1,695) | 987 |
+----------------------------------------------+------------+------------+
| Increase in provisions | 438 | 40 |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Cash generated from operations | (3,799) | (11,241) |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Interest paid | - | - |
+----------------------------------------------+------------+------------+
| Other losses | - | (1,517) |
+----------------------------------------------+------------+------------+
| Income tax | (23) | (3) |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Net cash from operating activities | (3,822) | (12,761) |
+----------------------------------------------+------------+------------+
For further information, please contact:
Renewable Power & Light plc Timothy Hunstad Telephone:
+ 1 952 746 0393
Grant Thornton UK LLP Gerald Beaney
Telephone: +44 207 383 5100
(Nominated Adviser)
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUPACUPUGQA
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