TIDMIPSA
RNS Number : 1840S
IPSA Group PLC
15 March 2016
15 March 2016
IPSA GROUP PLC
("IPSA", the "Group" or the "Company")
Audited Results for the year ended 31 March 2015
IPSA, the AIM and AltX listed independent power plant developer
with operations in southern Africa, today announces its audited
results for the year ended 31 March 2015.
Highlights:
-- Revenue of GBP3.6 million (year to 31 March 2014 - GBP3.7 million)
-- Group loss after tax of GBP6.9 million (year to 31 March 2014 - GBP0.4 Profit)
-- Plant gross loss of GBP4.6 million (year to 31 March 2014 - GBP1.0 million loss)
-- Plant operating loss GBP4.8 million (year to 31 March 2014 - GBP1.6 million loss)
-- Post balance sheet disposal of all subsidiaries for total consideration of GBP1.9m
The accounts have been prepared on a "going concern" basis
resulting in an adverse opinion from the auditors due to a
differing view than that of the directors. The Company is reliant
on the forbearance of its creditors whilst it seeks to realise its
assets being principally the balance of plant held for sale and its
receivable from Rurelec PLC. Whilst there is no formal agreement
with the Group's principal creditor Ethos Energy or any other
creditor for a moratorium on the amounts now due the board believes
it will be able to realise sufficient proceeds from the sale of its
assets and realisation of its debtors due to repay all of its
creditors. However there can be no certainty that this will be the
case and the risk remains that should this not be achievable in the
time required that the Company may need to apply for
administration.
It is the directors' intention to focus on the realisation of
its assets and repayment of its creditors. Following the disposal
of the groups operating subsidiary in February 2016 the Company is
now an Aim Rule 15 cash shell and the Company is seeking an
acquisition constituting a reverse takeover.
The Company's shares have been suspended from trading since 23
September 2015. Trading in the shares will continue to be suspended
as the Company has not published its interim results for the six
months ended 30 September 2015 in accordance with Aim Rule 18 which
were due by 31 December 2015.
The Company is looking to publish the interim results as soon as
possible.
The Group's financial statements will be posted to shareholders
today and are now available on the Company's website at
www.ipsagroup.co.uk together with the notice for the Company's AGM,
which will be held at 10.30 am on 7 April 2016 at 17(th) Floor,
Millbank Tower, 21-24 Millbank, London SW1P 4QP.
For further information contact:
Mark Otto, Acting CEO, IPSA Group PLC +27 (84) 219 2000
Peter Earl, Director, IPSA Group PLC +44 207 793 5600
James Joyce and James Bavister, WH Ireland Ltd (Nominated
Adviser and Broker) +44 (0)20 7220 1666
Riaan van Heerden, PSG Capital (Pty.) Limited, (South African Sponsors) +27 11 797 8400
Or visit IPSA's website: www.ipsagroup.co.uk
STRATEGIC REPORT
Dear Shareholder,
I present to the shareholders of IPSA Group PLC (the "Company")
and its subsidiaries (together the "Group") the much delayed Report
and Accounts for the year ended 31 March 2015. Since the year end,
the Company has sold its principal operating business in South
Africa by disposing of its shareholding in Blazeway Engineering Pty
Ltd ("Blazeway") and this has affected the reporting of the Group
accounts. Under IFRS accounting standards, the directors consider
this disposal an adjusting event relating to IAS 10 after the
Reporting Period, as the Group no longer expects to receive the
future cash flows of the disposed entities. It is therefore
appropriate that entity and consolidation adjustments are made to
the carrying value of Blazeway to reflect the sale proceeds.
Details of the disposal are contained in the Director's Report
The Company has for many years owned and operated Newcastle
Cogeneration (Pty) Ltd, ("NewCogen") a wholly owned subsidiary of
Blazeway which is a combined heat and power plant located in
Newcastle, South Africa. The overall performance in 2015 saw higher
operational efficiencies and higher output than previous years due
in the main to the addition of a 1 MW Deutz engine. Announced after
the year end, NewCogen was awarded a one year extension to its
Medium Term Power Purchase Programme ("MTPPP") contract (with
Eskom). NewCogen was also successful in drawing down a loan from
the Industrial Development Corporation ("IDC") for the installation
of the two Jenbacher gas engines. The Jenbacher Installation
commenced and the engines were expected to be in commercial
operation by the summer of 2016 resulting in an additional 3.8 MW
being made available to the existing operation. However a chronic
shortage of funds in late 2015 delayed that installation and placed
further pressure on the Group's already tight cash position.
Consistent with prior years, we are required under the
accounting rules to recognise an impairment of the generating
assets at the year-end of GBP5.1m. In addition, we had recognised
an impairment in the investment/loans to our subsidiary of GBP22.9m
in view of the delays in it achieving profitability and the
development status of further planned expansion. The proceeds to be
received for the disposal are significantly less than the
historical investment value resulting in an impairment of GBP23
million. The table in note 14 provides further information
regarding the impact of various discount rates on the value of the
assets.
The Group has always maintained its commitment to complete
payment of outstanding sums to Ethos Energy Italia SpA ("Ethos")
and to other creditors. This commitment is now totally dependent
upon receiving the funds due from Rurelec PLC ("Rurelec") and the
sale of the balance of plant pertaining to the 701 turbines (the
"BOP") as the Company has no other sources of funding available to
it at this time.
Strategy
The Company's strategy following the disposal of NewCogen is to
sell the BOP for a target price of GBP4.0 million. The sale of the
BOP at this figure or more will clear all remaining Company
creditors, of which Ethos is by far the largest and leave IPSA as a
quoted cash shell suitable as a partner for a potential reverse
takeover candidate.
Group Results
Group turnover for the year was GBP3.6m (2014: GBP3.7m), the
Group recorded a gross loss for 2015 of GBP5.3m (2014: loss of
GBP957k). The operating loss increased from GBP2.3m last year to a
loss of GBP6.78m in the current year.
The Directors have conducted an impairment review of the
carrying value of the remaining ancillary equipment and consider
that no impairment has occurred. The carrying value continues to be
sufficient to cover a significant portion of the creditor
position.
Following the sale of the remaining two turbines in June 2013 to
Rurelec, the balance outstanding to the Group has only been paid in
part through the settlement by Rurelec of EUR1.4m, after the year
end, of the total outstanding amounts due to Ethos. The balance
outstanding from Rurelec re the turbines is currently GBP1.8m. The
balance due to Ethos has been fully provided in the accounts at
GBP4.1m.
NewCogen
The plant recorded an overall loss for the year of GBP4.6m
(2014: GBP2.5m) after reporting a GBP3.9m impairment and lower
foreign currency losses as a result of the reorganisation of
NewCogen's finances and the conversion of approximately GBP11.1m of
its debt into South African Rand ("ZAR"). This debt is awaiting
capitalisation approval from the South African Reserve Bank and is
treated as equity in the Group Accounts.
The plant recorded an excess of revenues over gas costs of
GBP0.5m (2014: GBP0.6m) and an operating loss of GBP4.6m (2014:
GBP1.5m). In local currency, turnover was ZAR 65.0m (2014: ZAR
59.6m), and the operating loss, excluding depreciation and the
impairment charge, was ZAR 3.7m (2014 ZAR 3.2m).
Board of Directors
The death of Phil Metcalf, IPSA's CEO, in November 2014 was a
significant interruption to the Group's strategic drive. In July
2015 we announced the resignations of Peter Earl and Elizabeth Shaw
and thank them both for their significant contributions since the
Group was formed. Mark Otto who has acted as Chief Operating
Officer since 2013 was appointed as Acting Chief Executive Officer
to provide continuity of the operation in Newcastle and to resolve
all the issues on hand pending the disposal of Blazeway and
NewCogen. As announced on 1(st) March 2016 Peter Earl has re-joined
the Board.
Neil Bryson, who has served as senior non-executive director for
nine years and I have both decided this is a convenient juncture to
step down from the board and therefore will not be standing for
re-election. I would like to express the board's heartfelt thanks
to Neil for his contribution through challenging times and wish him
well. I have enjoyed the opportunity to bring competition into the
electricity sector in South Africa through my involvement with IPSA
and look forward to hearing that the new capacity at Newcastle has
been successfully commissioned and that new BEE industry players
have been brought into the business
Outlook
We have continued to work towards payment of our principal
creditor Ethos and expect to meet all but the last EUR 2.65m in the
coming weeks, this will be dependent on receipts from Rurelec.
Progress is been made in terms of receiving funds from Rurelec but
the disposal of the BOP will take more time as a result of tough
global economic conditions.
P Earl
Director
14 March 2016
STRATEGIC REPORT - REVIEW OF OPERATIONS
NEWCOGEN
In the past year we have continued to see reliable operations at
the NewCogen power plant, with availability remaining above 95 per
cent. and thermal efficiencies improving with reliable operations.
Our operating team has gained valuable experience in operating our
Deutz gas engine and is fully engaged in preparations for operating
the two Jenbacher engines.
March 15, 2016 11:10 ET (15:10 GMT)
Since the balance sheet date, the disposal of Blazeway was
announced on 28(th) January 2016 for a total consideration of
GBP1.9m. The sale includes 100% of the share capital of NewCogen,
loss making owner of the Group's only operational asset. Under IFRS
accounting standards the directors consider this an adjusting event
relating to IAS 10 - Events After the Reporting Period, as the
Group no longer expects to receive the future cash flows of the
disposed entities. It is therefore appropriate that entity and
consolidation adjustments are made to the carrying value of
Blazeway to reflect the sale proceeds. The directors recognise that
following this fundamental disposal, IPSA will become a cash shell
and under AIM rule 15 will be deemed to be an investing
company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKPDPQBKDOND
(END) Dow Jones Newswires
March 15, 2016 11:10 ET (15:10 GMT)
Ipsa (LSE:IPSA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Ipsa (LSE:IPSA)
Gráfica de Acción Histórica
De May 2023 a May 2024