TIDMHEGY
RNS Number : 2389H
Helius Energy Plc
18 June 2013
18 June 2013
Helius Energy plc
Interim results for the six months to 31(st) March 2013
Helius Energy plc(1) (AIM:HEGY) announces its interim results
for the six months to 31(st) March 2013
Operational update for the period:
-- Rothes project remains on time with the reliability tests
having been finished and performance trials in progress
-- ROC accreditation has been received
-- Rothes project connected to the grid with first electricity generated and invoices issued
-- Contracts being finalised for the construction, fuel supply
and electricity offtake for the Avonmouth project
-- Club of potential lenders engaged in due diligence for Avonmouth project level senior debt
-- Heads of terms agreed for Avonmouth project equity
-- Consenting process for Southampton project in progress
Financial update for the period:
31/3/13 31/3/12
Revenues GBP146k GBP151k
Gross profit GBP26k GBP20k
Administrative costs GBP652k GBP898k
Loss before tax GBP699k GBP644k
Invested in projects GBP1,637k GBP1,716k
Cash balance GBP4,717k GBP4,327k
During the period the Company completed a Placing of GBP5.6m
(net) providing additional working capital
Commenting on the results, Dr Adrian Bowles, Chief Executive
Officer said:
"We continue to make progress with our pipeline of biomass
energy projects. The Rothes project is in the final stages of
reliability testing, with ROC accreditation received and revenues
being generated for the project from electricity output. This
demonstrates the ability of the Company to develop, finance and
deliver its projects. We continue to focus on the financing of the
Avonmouth project, which we are targeting to finalise later in the
financial year."
([1]) In this report, the "Company" shall mean Helius Energy plc
and/or, where the context otherwise requires, any relevant
subsidiary of Helius Energy plc
For more information please contact:
Helius Energy plc Tel: +44 (0) 20 7723 6272
Adrian Bowles, Chief Executive Officer
Alan Lyons, Chief Financial Officer
Numis Securities Ltd Tel: +44 (0) 20 7260 1000
Richard Thomas/Jamie Lillywhite (as
Nominated Adviser)
James Black (as Corporate Broker)
Kreab Gavin Anderson Tel: +44 (0) 20 7074 1800
Chris Philipsborn
Anna Schoeffler
Notes to Editors:
Helius Energy plc was established to identify, develop, own and
operate biomass fired renewable electricity generation plants.
These will help meet the growing need for reliable power from
renewable sources.
Helius possesses a significant combination of knowledge of
renewable energy markets, biomass energy technologies, biomass fuel
sources, project development, implementation and operation of power
generation plants.
Chairman's statement
I am pleased to report the Company's interim results for the six
months ended 31st March 2013, during which period we have continued
to build upon our previous successes and to make progress in the
development of our pipeline of biomass energy projects.
The Rothes project remains on time and on budget and
commissioning activities are progressing to plan with electricity
being generated and invoiced for. Throughout the period we have
continued to focus on finalising contracts and financing
arrangements for the Avonmouth project. Progress has been
challenging due to the difficult nature of both debt and equity
markets, in part due to uncertainty around Government policy. Our
planning team continue to work on preparing a formal planning
application for the Southampton project which we expect to submit
later in the year.
Rothes project
The Rothes project is currently in the commissioning phase and
has been delivered on time and within the original budget. First
electricity was generated in January this year and ROC
accreditation was received in April 2013. It is expected that the
plant will enter commercial operation within the next month.
Avonmouth project
During the period we have agreed heads of terms with an equity
provider for the entire equity requirements of the project. These
heads allow for development fees, management service fees and an
ongoing interest in the plant. We have continued to progress
contract negotiations with suppliers and contractors and progressed
due diligence work with a group of banks to secure the debt
required to provide funding for the project. We are aiming to
finalise all contract terms along with the financing for the
project later in the financial year at which point we aim to secure
development fees to provide the working capital required to ensure
that the Company is able to continue to meet its project
development and corporate costs going forward.
Southampton project
We commenced the statutory consultation for this project in
November 2010 and have received a high level of local interest in
our proposals. Taking account of the feedback from the consultation
we are preparing an amended scheme which will be used as the basis
for a full application to the National Infrastructure Directorate
of the Planning Inspectorate for a Development Consent Order later
this year
Outlook
The Rothes project is expected to enter commercial operation in
the next month.
In light of the success of the financing and construction of the
Rothes Project and the progress made so far with the Avonmouth
project, the Company will continue to develop and review its
project pipeline and to focus on its immediate funding
requirements, and in particular the raising of debt and equity
within the project company, Helius Energy Gamma Ltd, for Avonmouth
project. The Company expects to secure a development fee from the
Avonmouth project at financial close that will provide working
capital for the Company.
Finally, on behalf of myself and the Board, I would like to
thank all of our employees for their continuing hard work and
support.
John M Seed
Chairman
Financial and operational update
Our strategy is to retain an ongoing interest in projects in
addition to receiving development fees.
During the development phase of our projects we do not receive
income. Our strategy remains one of focusing the Company's
resources on delivering projects to financial closure and managing
each project's implementation and construction.
During the first six months of this financial year the key
financial indicators were as follows:
The Company recorded revenues of GBP146k relating to management
service agreements it has with the Rothes project and separately
with the distillers involved in the project. This represents a
slight reduction on the previous year due to less chargeable
support being provided to the project in the latter stages of
construction.
Administration costs, excluding share based payments (GBP0.1m),
for the period were GBP0.7m compared with GBP0.9m for the
corresponding period last year, reflecting cost reduction measures
implemented in 2011 and 2012. The Board continues to review costs
to ensure that cash is focused on project development
activities.
The Company reported a loss before taxation of GBP699k for the
six months ended 31(st) March 2013, compared with a loss of GBP644k
for the corresponding period in the previous year.
The results for the six months ended 31(st) March 2012 included
the benefit of a GBP358k increase in the value of the earn-out
asset and subsequent deed of amendment signed with RWE Innogy in
January 2011. The deed of amendment expired in 2012 and at this
point the 'earn out' balance was impaired to a value of GBPnil in
the 2012 results.
Net cash outflow before financing activities in the period was
GBP2.9m, of which GBP1.6m was invested in projects, compared with a
net cash outflow of GBP2.5m for the corresponding period in the
previous year.
The cash balance at 31st March 2013 was GBP4.7m (31st March
2012: GBP4.3m). The cash balance included receipts of GBP5.6m (net)
from a placing of shares that was made in order to provide
additional working capital required to support the development of
projects. The Company is aiming to secure a development fee from
the Avonmouth project to provide general working capital for
company operations and project development activities in 2014 and
beyond.
The property, plant and equipment balance as at the 31st March
2013 was GBP10.9m which represents the development costs for
projects and is expected to be recoverable. This balance was made
up of GBP7m relating to the Avonmouth project and GBP3.9m relating
to the Southampton project.
Principal risks and uncertainties
A comprehensive analysis of the risks associated with project
development are set out in more detail on pages 9 through 11 of the
Annual Report for the financial year ended 30 September 2012, and
are summarised below.
Various issues, relating to energy project development, pose
risks which may lead to circumstances having a substantial adverse
effect on the Company's business, financial condition, trading
performance and prospects. Such issues include:
-- Continued dependence on the ability of the Company to locate,
select, develop and realise appropriate opportunities. Suitable
opportunities may not be located and projects may not be
successful.
-- Securing the necessary consents may be subject to delays
beyond the Company's control, which may subsequently cause any or
all of the projects to be delayed or aborted. There is also no
guarantee that any or all of the necessary consents will be
granted.
-- Being able to negotiate contracts for construction and fuel
supply that allow project finance to be secured.
-- The availability of feedstock for the Company's projects is
affected by various factors, including climate change, crop
productivity, ecological impacts, socio-economic factors, pests
(and related phytosanitary restrictions), shipping availability,
sustainability criteria and labour shortages.
-- Foreign sourced supplies are subject to special risks that
may disrupt markets, including the risk of war, terrorism, civil
disturbances, embargo, and government activities. There can be no
assurance that the Company will not experience difficulties in
connection with future foreign supplies and, in particular, adverse
effects from foreign currency fluctuations, shipping markets and
international inflationary effects that potentially will have a
negative impact on the cost of both construction and fuel for
biomass plants.
-- The Company could be adversely affected if any of its
operations failed to comply with EU, UK and local environmental and
health and safety laws and regulations. Failure or inability to
comply with any such statutes or regulations could result in civil
or criminal liability, the limitation, suspension or termination of
operations, imposition of clean up costs, fines or penalties and
large expenditures, which may adversely affect the Company's
business results from operations or financial condition.
-- The Company could be adversely affected by any changes to, or
replacement of, the Renewables Obligation regime if such a change
caused a reduction in revenues from Renewables Obligation
Certificates.
-- The Company could be adversely affected by adverse changes to
the project debt finance and/or equity markets leading to the
inability to secure finance for its projects.
The Company's plans are exposed to electricity market price risk
through variations in the wholesale price of electricity and
biomass material. In April 2011, Helius CoRDe Limited entered
forward contracts for both electricity and biomass material along
with forward contracts for interest and exchange rates. These
contracts were all required to secure project finance for the
project.
The Company believes that its future success will greatly depend
upon the continuing ability to raise debt and equity to support the
development and construction of its projects, and upon the
expertise and continued services of certain key executives and
technical personnel, including, in particular, the Executive
Directors and key senior managers. The Company benchmarks
remuneration levels of key staff against similar positions in other
small capitalisation companies and has put in place share option
and long term incentive plan (LTIP) schemes linked to project and
individual performance.
Corporate governance
The Company continues, to the extent practicable and appropriate
for a company of its size and constitution, to comply with
applicable corporate governance rules and best practice provisions
for companies set out in the UK Combined Code on Corporate
Governance, and continues to keep its overall system of internal
control under review.
The Company has a Remuneration Committee and an Audit Committee
which are both chaired by the Company's senior independent
non-Executive Director, William Rickett.
Each of those committees is regulated by terms of reference
which are kept under review and which reflect good corporate
governance practice.
Condensed Consolidated Statement of Comprehensive Income -
unaudited
For the six months Ended 31 March 2013
Note Six Months Ended Six Months Ended Year Ended 30
31 March 2013 31 March 2012 September 2012
GBP GBP GBP
Continuing Operations
Revenue 145,935 151,108 309,713
Cost of sales (120,127) (131,582) (269,104)
Gross profit 25,808 19,526 40,609
Other administrative
expenses (652,936) (898,484) (1,644,805)
Share-based payment
costs (55,105) (140,532) (108,410)
Impairment of property,plant
and equipment - - (1,086,491)
----------------------------- ---- ---------------- ---------------- ---------------
Total administrative
expenses (708,041) (1,039,016) (2,839,706)
Impairment of the earn
-out receivable 6 - - (8,800,000)
----------------------------- ---- ---------------- ---------------- ---------------
Operating loss (682,233) (1,019,490) (11,599,097)
Finance income 4 556 375,747 761,830
Finance expenses 4 (17,449) - -
----------------------------- ---- ---------------- ---------------- ---------------
Share of post-tax loss
from Joint Venture 8 - - (3,875)
----------------------------- ---- ---------------- ---------------- ---------------
Loss Before Tax (699,126) (643,743) (10,841,142)
Tax expense - - -
loss for the Period
ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT
COMPANY (699,126) (643,743) (10,841,142)
Other comprehensive - - -
income net of tax
Share of other comprehensive
income net of tax from
Joint Venture 8 (83,683) (467,497) (818,862)
TOTAL COMPREHENSIVE
loss for the Period
ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT
COMPANY (782,809) (1,111,240) (11,660,004)
Basic loss per share
attributable to equity
holders of the parent
company (pence) 3 (0.50) (0.51) (8.34)
Diluted loss per share
attributable to equity
holders of the parent
company (pence) 3 (0.50) (0.51) (8.34)
----------------------------- ---- ---------------- ---------------- ---------------
The above condensed Consolidated Statement of Comprehensive
Income should be read in conjunction with the accompanying
notes.
Condensed Consolidated Statement of Financial Position -
unaudited
As At 31 March 2013
Note 31 March 2013 31 March 2012 30 September
2012
GBP GBP GBP
NON-CURRENT ASSETS
Property, plant and
equipment 10,912,721 8,470,024 9,292,890
Investment in joint
venture 8 6,959,524 7,398,447 7,043,207
------------- -------------- -------------
Total Non-Current Assets 17,872,245 15,868,471 16,336,097
CURRENT ASSETS
Loans and receivables - 8,618,852 -
Trade and other receivables 844,569 329,119 662,360
Cash and cash equivalents 4,717,265 4,327,550 1,969,784
------------- -------------- -------------
Total Current Assets 5,561,834 13,275,521 2,632,144
TOTAL ASSETS 23,434,079 29,143,992 18,968,241
CURRENT LIABILITIES
Trade and other payables (571,691) (594,591) (996,392)
Total Current Liabilities (571,691) (594,591) (996,392)
TOTAL LIABILITIES (571,691) (594,591) (996,392)
------------- -------------- -------------
TOTAL NET ASSETS 22,862,388 28,549,401 17,971,849
------------- -------------- -------------
Total capital and reserves attributable to equity holders of the
parent company
Note 31 March 2013 31 March 2012 30 September
2012
GBP GBP GBP
Share capital 1,828,100 1,325,203 1,328,537
Share premium reserve 16,681,756 11,563,076 11,563,076
Capital redemption reserve 10,130 10,130 10,130
Merger reserve 410,833 410,833 410,833
Cash flow hedge reserve (3,420,133) (2,985,085) (3,336,450)
Retained earnings 7,351,702 18,225,244 7,995,723
------------- -------------- -------------
TOTAL EQUITY 22,862,388 28,549,401 17,971,849
The above Condensed Consolidated Statement of Financial Position
should be read in conjunction with accompanying notes.
Condensed Consolidated Statement of Cash Flows - unaudited
For the six months Ended 31 March 2013
Six Months Ended 31 March 2013 Six Months Ended 31 March 2012 Year Ended
GBP GBP 30 September 2012
GBP
---------------------------------- ------------------------------ ------------------------------ ------------------
Operating Activities
Net loss after tax (699,126) (643,743) (10,841,142)
Impairment of property, plant and
equipment - - 1,086,491
Depreciation 16,706 18,599 36,349
Finance income (556) (375,747) (761,830)
Finance expenses 17,449 - -
Share of post-tax loss from joint
venture - - 3,875
Share option costs 55,105 140,532 108,410
Impairment of the earn-out
receivable - - 8,800,000
---------------------------------- ------------------------------ ------------------------------ ------------------
cashflow from operations before
changes in working capital (610,422) (860,359) (1,567,847)
(Increase)/decrease in trade and
other receivables (182,209) 28,435 (304,806)
(Decrease)/Increase in trade and
other payables (424,701) (139,487) 262,314
---------------------------------- ------------------------------ ------------------------------ ------------------
Net Cash used in Operating
Activities (1,217,332) (971,411) (1,610,339)
---------------------------------- ------------------------------ ------------------------------ ------------------
Investing Activities
Purchase of property, plant and
equipment (1,636,537) (1,715,694) (3,642,801)
Cash received from earn-out deed
of amendment - 200,000 400,000
Interest received 556 17,460 22,395
---------------------------------- ------------------------------ ------------------------------ ------------------
Net cash used in investing
activities (1,635,981) (1,498,234) (3,220,406)
---------------------------------- ------------------------------ ------------------------------ ------------------
Financing Activities
Net Share issue 5,618,243 6,242,322 6,245,656
Interest paid and finance expenses (17,449) - -
---------------------------------- ------------------------------ ------------------------------ ------------------
Net cash from financing activities 5,600,794 6,242,322 6,245,656
---------------------------------- ------------------------------ ------------------------------ ------------------
Net increase in cash and cash
equivalents 2,747,481 3,772,677 1,414,911
Cash and cash equivalents at the
beginning of the period 1,969,784 554,873 554,873
---------------------------------- ------------------------------ ------------------------------ ------------------
CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD 4,717,265 4,327,550 1,969,784
---------------------------------- ------------------------------ ------------------------------ ------------------
The above Condensed Consolidated Statement of Cash Flows should
be read in conjunction with the accompanying notes.
Condensed Consolidated Statement of Changes in
Equity-unaudited
For the six months ending 31 March 2013
2013 Capital Share Share Merger Cash flow Retained Total
Redemption Capital Premium Reserve hedge reserve Earnings
Reserve
GBP GBP GBP GBP GBP GBP GBP
Changes in equity
At 1 October 2012 10,130 1,328,537 11,563,076 410,833 (3,336,450) 7,995,723 17,971,849
Loss for the period - - - - - (699,126) (699,126)
Other comprehensive
income - - - - (83,683) - (83,683)
------------ ---------- ----------- --------- --------------- ---------- -----------
Total comprehensive
loss for the period - - - - (83,683) (699,126) (782,809)
Issue of Share
Capital - 499,563 5,495,199 - - - 5,994,762
Capital raised
costs - - (376,519) - - - (376,519)
Share-based payments - - - - - 55,105 55,105
------------ ---------- ----------- --------- --------------- ---------- -----------
At 31 March 2013 10,130 1,828,100 16,681,756 410,833 (3,420,133) 7,351,702 22,862,388
------------ ---------- ----------- --------- --------------- ---------- -----------
2012 Capital Share Share Merger Cash flow Retained
Redemption Capital Premium Reserve hedge reserve Earnings Total
Reserve
GBP GBP GBP GBP GBP GBP GBP
Changes in equity
At 1 October
2011 10,130 915,742 5,730,215 410,833 (2,517,588) 18,728,455 23,277,787
Loss for the
period - - - - - (10,841,142) (10,841,142)
Other comprehensive
income - - - - (818,862) - (818,862)
------------ ---------- ----------- --------- --------------- ------------- -------------
Total comprehensive
loss for the
period - - - - (818,862) (10,841,142) (11,660,004)
Issue of Share
Capital - 412,795 6,141,921 - - - 6,554,716
Capital raised
costs - - (309.060) - - - (309,060)
Share-based payments - - - - - 108,410 108,410
------------ ---------- ----------- --------- --------------- ------------- -------------
At 30 September
2012 10,130 1,328,537 11,563,076 410,833 (3,336,450) 7,995,723 17,971,849
------------ ---------- ----------- --------- --------------- ------------- -------------
2012 Capital Share Share Merger Cash flow Retained
Redemption Capital Premium Reserve hedge reserve Earnings Total
Reserve
GBP GBP GBP GBP GBP GBP GBP
Changes in equity
At 1 October
2011 10,130 915,742 5,730,215 410,833 (2,517,588) 18,728,455 23,277,787
Loss for the
period - - - - - (643,743) (643,743)
Other comprehensive
income - - - - (467,497) - (467,497)
------------ ---------- ----------- --------- --------------- ----------- ------------
Total comprehensive
loss for the
period - - - - (467,497) (643,743) (1,111,240)
Issue of Share
Capital - 409,461 6,141,921 - - - 6,551,382
Capital raised
costs - - (309,060) - - - (309,060)
Share-based payments - - - - - 140,532 140,532
------------ ---------- ----------- --------- --------------- ----------- ------------
At 31 March 2012 10,130 1,325,203 11,563,076 410,833 (2,985,085) 18,225,244 28,549,401
------------ ---------- ----------- --------- --------------- ----------- ------------
The cash flow hedge reserve relates to the share of the
movements of the cash flow hedges in the Helius CoRDe, a joint
venture. Further details are provided in note 8
Notes to the unaudited condensed consolidated financial
statements
1 Accounting Policies
Basis of Preparation
The condensed consolidated interim financial information should
be read in conjunction with the annual financial statements for the
year ended 30 September 2012, which have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union.
The interim financial information for each of the six month
periods ended 31 March 2013 and 31 March 2012 has not been audited
and does not constitute statutory accounts within the meaning of
Section 435 of the Companies Act 2006. The information for the year
ended 30 September 2012 does not constitute statutory accounts
within the meaning of Section 435 of the Companies Act 2006, but is
based on the statutory financial statements for that year, on which
the auditors have reported. Their audit report was unqualified,
although it did include an emphasis of matter regarding going
concern, and did not contain a statement under Section 498 (2) or
(3) Companies Act 2006. This interim financial report has neither
been audited nor reviewed pursuant to the International Standard on
Review Engagements (UK and Ireland) 2410.
The interim financial report has been prepared on the going
concern basis. As noted in the Chairman's statement, in order to
continue to pursue the Company's development activities the Company
has to secure development fees from its Avonmouth project to
provide working capital for 2014 and beyond. The Company is
progressing with due diligence to allow it to secure the necessary
debt and equity funding for the Avonmouth project and is looking at
a range of different alternatives in this regard. At the point of
funding being finalised, the Directors expect to secure a
development fee, and, based on progress so far consider it
appropriate to prepare the condensed consolidated interim financial
statements on a going concern basis.
The interim financial report has been prepared using accounting
policies that are consistent with those used in the preparation of
the full financial statements to 30 September 2012. We do not
anticipate any further changes for the year ended 2013.
2 Business Segments
The Chief Operating Decision Maker is defined as the board of
Directors.
Management considers that the Company's project activity
constitutes one operating and reporting segment, as defined under
IFRS 8. Management review the performance of the Company by
reference to total results against budget.
The total profit measures are the operating loss and the loss
for the year, both disclosed on the face of the consolidated income
statement. No differences exist between the basis of preparation of
the performance measures used by management and the figures in the
Company financial statements. All of the revenues generated relate
to projects and are wholly generated within the UK. Accordingly
there are no additional disclosures provided to the primary
statements.
3 Loss Per Share
The calculation of the loss per share is based on the following
data:
Six Months Ended Six Months Year Ended
31 March 2013 Ended 30 September
GBP 31 March 2012 2012
GBP GBP
Loss
Loss used in calculating
basic and diluted loss per
share for the period (699,126) (643,743) (10,841,142)
Number of shares
Weighted average number of
ordinary shares for the purpose
of basic loss per share 139,715,769 127,374,063 129,958,110
Effect of employee share - - -
options
--------------------------------- ---------------- --------------- -------------
Weighted average number of
ordinary shares for the purpose
of diluted loss per share 139,715,769 127,374,063 129,958,110
The loss per ordinary share and diluted loss per share are equal
because share options are only included in the calculation of
diluted earnings per share if their issue would decrease the net
profit per share or increase the net loss per share. The bonus
effect of options has been excluded from the number of shares used
in the diluted EPS calculation as those options are
antidilutive.
4 Finance Income and expenses
Six Months Ended Six Months Year Ended
31 March 2013 Ended 30 September
GBP 31 March 2012 2012
GBP GBP
Finance income
Bank interest receivable 556 17,460 22,395
Unwinding of discount from
the sale of the Stallingborough
project - 358,287 739,435
---------------- --------------- -------------
556 375,747 761,830
---------------- --------------- -------------
Finance expenses
Interest payable (2,449) - -
Finance Fee (15,000) - -
---------------- --------------- -------------
(17,449) - -
---------------- --------------- -------------
The unwinding of the discount from the sale of the
Stallingborough project represents the increased value of the
earn-out based upon the discount made in September 2010.
5 Property, Plant and Equipment
During the six months ended 31 March 2013 the Company has
capitalised development spend of GBP1.6 million (six months ending
31 March 2012: GBP1.7 million).
6 Loans and Receivables
Sale of the Stallingborough project / Deed of amendment to
earn-out arrangement
During the year ending 30 September 2008, Helius Energy plc
disposed of the Stallingborough project (otherwise refererred to as
Helius Energy Alpha Ltd (Alpha)) to RWE Innogy (UK) Ltd (RWE). The
transaction included a cash payment of GBP28.1m, and, a deferred
amount of consideration, payable through an earn-out arrangement
equal to 13% of the post tax profits generated by the project
during its first 24 years of commercial operation.
During the September 2010 financial year, the Company was
involved in extensive negotiations with RWE for a Deed of Amendment
to the original earn-out arrangement. The Deed outlined that in the
event that construction contracts were awarded later than September
2011, additional payments of GBP100,000 would become due for each
quarter of delay. At an agreed date with RWE the Deed of Amendment
becomes invalid and the original earn-out arrangement is
reinstated, although no repayments of monies received at signature
or as a consequence of quarterly delays are payable.
In arriving at a discounted value of GBP8,460,565 as at
September 2011, the Board made the assumption that a total payment
of GBP9,300,000 would be received, based on contracts being awarded
by RWE in September 2012. The revised valuation was therefore made
up of the GBP100,000 initial payment, GBP8,800,000 at the point of
contracts being awarded and GBP400,000 of delay payments. The
original effective interest rate for the transaction of 9% had been
applied to the payments.
The revised carrying value and resultant entries in the
Consolidated Statement of Comprehensive Income are shown in the
table below:
Earn out as at 30 September 2011 8,460,565
Cash received from earn-out deed of amendment (400,000)
Unwinding of discount on September 2011 calculation
(finance income) 739,435
Impairment of the earn-out receivable (8,800,000)
Earn out as at 30 September 2012 -
----------------------------------------------------- ------------
The Company was notified by RWE Innogy in September 2012 that
RWE Innogy wished to revert to the original earn-out provisions of
the 2008 sale and purchase agreement in respect of the
Stallingborough project. The board considered that the revision
provided objective evidence of significant delay of receipt of cash
under the agreement and carried out an impairment review.
Management considered that there was such uncertainty in the key
assumptions used in the original terms of contract, in particular
on the date of construction, that the present value of estimated
future cash flows was considered to be GBPnil at 30th September
2012. The Board still considers this treatment to be appropriate at
31 March 2013.
7 Share capital
At a General meeting on 6 March 2013 a resolution was passed to
raise approximately GBP6.0 million (gross), GBP5.6m (net) by way of
a firm placing and open offer of New Ordinary Shares at 12 pence
per share . Admission of the 49,956,349 new ordinary shares to
trading on AIM occurred on 7 March 2013.
8 Investment in Joint Venture
As at 30 September 2010 Helius CoRDe Limited was accounted for
as a subsidiary. On the 13 April 2011 the Company reached financial
close on the CoRDe project securing GBP42.5million of debt funding
from Lloyds Banking Group and the Royal Bank of Scotland plc, along
with an equity investment for new shares in Helius CoRDe Limited of
GBP9.3 million at project level by Rabo Project Equity BV. The
result of the funding and introduction of a contractual arrangement
between Helius Energy plc, Rabo Project Equity BV and The
Combination of Rothes Distillers' Ltd was a loss of control and
Helius Energy plc now holds 50% + 1 non-controlling share in a
Joint Venture at an investment cost of GBP7.9 million.
Helius Energy plc values its shareholding in the joint venture
initially at fair value, and then in subsequent periods, adjusts
the carrying amount of the investment to reflect the company's
share of the joint venture's results which include any
comprehensive income relating to cashflow hedges.
2012
GBP
Investment at 30 September 2011 7,865,944
Share of other comprehensive income in joint venture
relating to the transfer of the initial carrying
amount of property,plant and equipment 213,798
Share of other comprehensive income in joint venture
relating to losses on cash flow hedges as at 31
March 2012 (681,295)
------------------------------------------------------ ----------
Investment at 31 March 2012 7,398,447
------------------------------------------------------ ----------
2013
GBP
Investment at 30 September 2012 7,043,207
Share of other comprehensive income in joint venture
relating to the transfer of the initial carrying
amount of property,plant and equipment 457,657
Share of other comprehensive income in joint venture
relating to losses on cash flow hedges as at 31
March 2013 (541,340)
------------------------------------------------------ ----------
Investment at 31 March 2013 6,959,524
------------------------------------------------------ ----------
The Joint Venture, which is unlisted, results and assets /
liabilities , are as follows:
Helius Helius Helius Helius Helius Helius
CoRDe Ltd PLC share CoRDe Ltd PLC share CoRDe Ltd PLC share
31 March 31 March 31 March 31 March 30 September2012 30 September
2013 2013 2012 2012 2012
----------------------- ------------- ----------- ------------- ----------- ----------------- -------------
Property, plant
and equipment 54,608,873 50% 32,778,141 50% 45,639,956 50%
Other current
assets 2,620,351 50% 2,501,062 50% 2,534,984 50%
Long term assets - 50% - 50% - 50%
Current liabilities (4,038,856) 50% (3,760,369) 50% (5,826,119) 50%
Long term liabilities (35,235,854) 50% (13,556,570) 50% (24,394,307) 50%
Financial instruments
relating to cash
flow hedges (6,840,266) 50% (5,970,170) 50% (6,672,899) 50%
----------------------- ------------- ----------- ------------- ----------- ----------------- -------------
Loss - - - - (7,750) (3,875)
Other comprehensive
income relating
to cash flow hedges (167,367) (83,683) (934,994) (467,497) (1,637,723) (818,862)
----------------------- ------------- ----------- ------------- ----------- ----------------- -------------
As a requirement of the project finance facility, the CoRDe
joint venture company entered into hedging agreements for foreign
currency and interest rates in order to mitigate any risk
associated with volatility in those rates. Hedge accounting has
been applied to the instruments, with changes in the fair values of
the effective portion of the instruments between reporting periods
being taken through other comprehensive income statement of the
Joint Venture. The Group has recognised its share of the movement
in the period to 31 March 2013 of GBP0.1m.
The hedging policy adopted by the project company is as
follows:
Foreign currency
In order to ensure no variability in construction costs the
project company entered a forward contract for 36,793,500 euros on
the 13 April 2011 at a rate of 1.1238. On the 31 March 2013 the
bank provided a fair value of the outstanding portion of the
forward contract and this analysis resulted in a total liability of
GBP0.2m to Helius CoRDe Ltd.This liability is recognised as a
derivative financial liability in the balance sheet of the joint
venture with changes in fair value recognised in other
comprehensive income. This will reduce to nil through the
construction period with the benefit being recognised in the future
reporting periods.
Interest rates
In order to mitigate changes in interest rates the project
company entered a forward contract for 100% of interest charges
through the construction period and 75% of the interest costs
through the 12 year repayment period on 13 April 2011 based on the
forward LIBOR rate . The fixed rate leg of the swap is 4.26%
against the floating LIBOR rate. On the 31 March 2013 the bank
provided a valuation on the outstanding portion of the forward
contracts resulting in a total liability of GBP6.6m to Helius CoRDe
Ltd.
During the period ended 31 March 2013 Helius CoRDe contractors
have completed installation of major plant and equipment, including
boiler, turbine / generator, fuel handling, and evaporator together
with associated control building and civil works. The site has been
energised and connected to the 33kv grid. The project is still
within budget, commissioning has started as programmed during the
fourth quarter of 2012 and the plant is expected to enter
commercial operation in 2013.
Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
i) The condensed consolidated interim financial information has
been prepared in accordance with IAS34 as adopted by the European
Union; and
ii) The interim financial report includes a fair review of the
information required by the FSA's Disclosure and Transparency Rules
(4.27 R and 4.28 R).
The interim financial report was authorised for issue on 17(th)
June 2013.
Financial statements are published on the Company's website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Company's website is the responsibility of the
Directors. The Directors' responsibility also extends to the
ongoing integrity of the financial statements contained therein
Advisors and general information
Country of incorporation
England & Wales
Legal form
Public limited company
Directors
John Seed (non-executive Chairman)
Dr Adrian Bowles (Chief Executive Officer)
Alan Lyons (Chief Financial Officer)
Christopher Corner (Commercial Director)
William J Ingram Hill (Chief Operating Officer)
Angus MacDonald OBE (non-executive Director)
William Rickett CB (non-executive Director)
Alastair Salvesen CBE (non-executive Director)
Company Secretary
William J Ingram Hill
Registered and Head Office
Helius Energy plc
242 Marylebone Road
London NW1 6JL
+44 (0) 20 7723 6272
Company Number
5745512
Solicitors
Burges Salmon LLP
One Glass Wharf
BS2 0ZX
Auditors
BDO LLP
1 Bridgewater Place
Water Lane
Leeds LS11 5RU
Nominated Advisers and Brokers
Numis Securities Limited
The London Stock Exchange Building
10 Paternoster Square
London EC4M 7LT
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham BR3 4TU
Bankers
Barclays Bank plc
71 Grey Street
Newcastle upon Tyne NE1 6EF
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DDLFFXQFFBBV
Helius Eng (LSE:HEGY)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Helius Eng (LSE:HEGY)
Gráfica de Acción Histórica
De May 2023 a May 2024