TIDMAEG
RNS Number : 7532K
Active Energy Group PLC
26 September 2016
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
26 September 2016
Active Energy Group Plc ('Active Energy' or 'the Group')
Interim Results
Active Energy, the AIM quoted international timber processing,
forestry management and renewable energy business, announces its
interim results for the six months to 30 June 2016.
Highlights
-- Strong growth delivered across entire international timber
processing, forestry management and renewable energy business
-- Excellent progress in increasing revenue, volumes and gross profit at AEG WoodFibre:
o 11% increase in revenue to US$13.409 million (H1 2015:
US$12.046 million)
o 50% increase in gross profit to US$1.840 million (H1 2015:
US$1.227 million) as a result of improved purchasing conditions and
stable prices
o Work underway to increase output capacity by 33% to
approximately 4,000 tonnes per day by Q4 2016
-- AEG TimberLands advancing strategy to become a leading
forestry management business utilising team's experience:
o Progress towards finalisation of the Métis Settlement economic
development and coal reduction initiative for Alberta and new
agreement relating to the management, development and sustainable
commercialisation of approximately 186,500 hectares of mature
commercial forestry in Northern Ukraine
o New Ukrainian MOU signed over significant tracts of
forestry
-- Implementing commercialisation strategy of revolutionary and
pioneering 'drop-in' biomass fuel to directly replace coal at AEG
CoalSwitch:
o Demonstration plant at Salt Lake City completed
o Commercial Partners are currently testing the product
o Objective to finance and build the first commercial scale
plant in North America progressing
Outlook
-- Full year revenue anticipated to reflect a significant
year-on-year increase as growth trajectory continues
-- Strengthened balance sheet post period end - placing raised
GBP2.05 million (before expenses) to fund expansion of core AEG
WoodFibre operations
-- Highly active development plan across all divisions with strong news flow anticipated
Active Energy CEO, Richard Spinks said, "We have over the past
three years succeeded in establishing a multi-divisional business
with huge potential. We have invested heavily in our WoodFibre
business which is now yielding positive results, allowing us to
further develop our other business opportunities at TimberLands and
CoalSwitch, highlighted by the significant improvement in our
financial performance, and continuing investment into these new
business areas.
"With additional capital raised in August, we are executing our
investment plan which will see a further increase in capacity,
output and most importantly revenue for the full year 2016. This
remains primarily from the WoodFibre division in Ukraine and will
be augmented when AEG CoalSwitch and TimberLands begin to
operate.
"Most importantly, we have now established teams of people, with
proven track records to expand the woodchip operations, progress
our Canadian and European timber operations and commercialise our
proven coal replacement product, which we believe could transform
the carbon based energy market.
"With a number of significant milestones attained and next steps
identified, notably in the near-term, I believe these are truly
exciting times for the Company as we look to rapidly accelerate our
growth and build shareholder value, across our synergistic
operating divisions."
CHAIRMAN'S STATEMENT
This has been a strong period for the Group in performance
terms, as we continue to build an international timber processing,
forestry management and renewable energy business. The
implementation of a new defined strategic plan aimed at enhancing
revenue generation at our wood fibre production division and
developing our forestry management and coal replacement businesses
is proving successful, and with the strengthening of our balance
sheet following the recent GBP2.05m (US$2.73M) placing, we are
extremely excited about both the short and long term potential of
the business.
More importantly, over the next six months, we expect to make
progress across the Group through optimisation, defined investment,
establishing new strategic relationships in several new
jurisdictions and the opening up of additional commercial
opportunities that we believe will all contribute to building
substantial shareholder value.
AEG WoodFibre:
The primary focus during the period was to increase revenues and
volumes, whilst maintaining and strengthening gross margin on
tonnes shipped at AEG WoodFibre, our established wood fibre
production business at Yuzhny Port, near Odessa in Ukraine. I am
delighted with the performance of the operation which is centred on
a fully-automated hardwood production line, which is capable of
processing approximately 3,000 tonnes of raw material per day,
seven days a week, and supplies the key raw materials for
medium-density fibreboard ('MDF') manufacturing in Turkey. Over the
last three years, we have grown this division to become the largest
exporter of such processed timber products from Ukraine and during
the period we were able to improve the performance across the
business which has been reflected in these interim results.
We have improved our supply chain and now receive product from
more than 120 sustainable forests operating with the State Agency,
Forestry Resources Ukraine, with which we continue to work
seamlessly, allowing us to operate efficiently and giving us the
confidence to invest further into the softwood market for this
business. In January 2016, we signed further contracts with Turkish
MDF manufacturers, meaning we now supply the country's largest MDF
producers making us an influential player in the market.
Additionally there has been significant investment made by the
owners of the Yuzhny Port facility to increase their operating
capacity which has had an immediate benefit for us in terms of our
ability to receive larger volumes of raw material by rail, manage
it internally at the port and improve our logistics and loading.
All of these factors have further improved our long term outlook
and given us the confidence to invest and further develop the Wood
Fibre division at the Port of Yuzhny.
We have seen an increase in the global demand for all major wood
products, which is showing its largest growth since the global
economic downturn during 2008-2009. The production of wood-based
panels has seen the fastest growth in the product category due to
rapid growth in the Asia-Pacific region where China accounts for
49% of demand(1) . In Europe, Turkey is the biggest producer of
medium-density fibreboard ('MDF') and Turkish revenues from
wood-based panel manufacture are expected to total approximately
US$4.65 billion in 2016 compared to US$2.641 billion in 2012(2)
.
With an improving market dynamic and the completion of the
equity capital raise, we can now execute our longer term investment
plans to double production output to satisfy increasing Turkish
demand and complete the installation of a US$1.1 million, 1,000
tonne per day softwood production line, which the Company has now
procured. Work has now begun on the installation, and this is
scheduled to be operational in Q4 2016. The new softwood line will
enable manufacture of softwood wood fibre from pine logs and allow
us to increase capacity by circa 33% in the short term to
approximately 4,000 tonnes per day. Indeed this will make us the
only operator in the region able to supply both hardwood and
softwood, the key raw materials for MDF manufacturing, from a
single facility. These exciting upgrades to the production facility
are targeted to increase revenues for the full year. The resulting
additional cash flow will provide significant investment and
working capital funds to expand into new markets, particularly in
Canada, the US, the Middle East and China, as well as develop our
other divisions. It is the goal of the Board to have three
operating and profitable divisions before the end of 2017.
___________________________
(1) Food and Agriculture Organization of the United Nations website:
http://www.fao.org/news/story/en/item/359583/icode/
(2) Statista 2016
AEG TimberLands:
We continue to make progress at AEG TimberLands, which is
focused on the sustainable management and utilisation of
under-developed and under-valued forestry assets, in partnership
with their owners, initially in Europe and Canada.
Negotiations are on-going with regards to the finalisation of
the Métis Settlement economic development and coal reduction
initiative for Alberta, particularly in terms of structure and
business planning. As mentioned previously, there have been
significant and positive changes politically in Alberta, where the
Indigenous People of Alberta and Active Energy are interested,
which should enable swift progress, particularly with regards to
future support from the Alberta government. The backing of our
Métis partners by the new ministers and their teams, further
underlines their support toward our investment programme.
Management anticipate that this new approach by the Alberta
government will bring great benefit to our partners, our projects
and all aboriginal groups across Alberta.
On a broader level, on 19 July 2016, and in line with our stated
strategy of utilising our management team and technical experience
to expand into new markets, we announced that we had signed a
Memorandum of Understanding ("MoU") with a Regional Government in
Ukraine, relating to the management, development and sustainable
commercialisation of approximately 186,500 hectares of mature
commercial forestry in northern Ukraine. Under its terms, we are
beginning to work to introduce international forestry and
environmental standards of sustainable forestry management, to
improve the value and yield of the forests. This will support the
Ukrainian central government's anti-corruption and illegal logging
prevention initiatives and will bring additional job creation
opportunities to Ukraine's regional forestry industry. This will be
achieved through the implementation of more efficient logging
practises and technologies and the efficient use of merchantable
timber and through market optimisation.
In addition, the introduction of state of the art technologies
in coal replacement among others will retain value in the local
communities, create training and employment programmes and to help
Ukraine reduce its reliance on coal power generation, at existing
coal burning operations in both heat and power generation. It is
envisaged that AEG WoodFibre will also purchase technical timber
for its existing processing operations at market prices. This will
enable Active Energy to further increase its production volumes and
contemporaneously benefit the regions in which the forestries are
located, through guaranteed offtake arrangements at known
prices.
Furthermore, new commercial opportunities pursuant to the MoU
will allow increased utilisation of forest waste thereby allowing
the introduction of AEG CoalSwitch's innovative fuel replacement
product and processes. We envisage that a facility to manufacture
AEG's CoalSwitch product will be constructed close to these
forestry assets in Ukraine to create a supply of CoalSwitch product
to the region's existing coal-fired power plants.
AEG CoalSwitch:
Over the past 12 months, we have invested in the development of
the world's first 'drop-in' biomass fuel that can directly replace
coal, in both domestic and industrial applications, either through
co-firing or, uniquely, 100% coal replacement, avoiding costly
retrofits by the plant owner. This therefore has the ability to
transform the coal energy dynamic and I am pleased to report that
this division is progressing well.
Following the establishment of a new, now fully automated,
demonstration plant in Salt Lake City, Utah, in the United States,
we are now producing commercial samples, required for potential
clients to be able to run tests using a variety of alternate raw
materials/feedstocks in their own facilities. This will allow them
to make decisions as to the commercial opportunities utilising
larger volumes of our CoalSwitch product. We remain active in
building our commercial partner network and samples of the product
have already been delivered for testing in the United Kingdom,
Canada, Ukraine and Malaysia. There remain many thousands of
worldwide coal-fired power plants that have already been closed, or
that will have to shut down as a result of carbon emission
reduction initiatives or will be forced to invest in changing their
facilities, and this is our opportunity. We believe that we offer a
unique solution to continue operating at acceptable levels of
environmental standards.
We continue to work towards our initial goal of financing and
building the first commercial scale CoalSwitch plant in North
America. We are currently finalising agreements with commercial
partners to achieve this and have been approached by a number of
parties regarding collaboration with this division. We are highly
encouraged by these discussions, as we seek to maximise value for
the benefit of all stakeholders and shareholders in Active
Energy.
Financials:
Group revenue increased by over 11% to US$13.409 million (H1
2015: US$12.046 million) while gross profit increased by 50% to
US$1.840 million (H1 2015: US$1.227 million) as a result of
improved purchasing conditions and stable prices. This continues
the strong trend demonstrated in Q4 2015 and reflects the high
demand for the Group's core wood chip product in the Turkish
market, allied to improved production efficiencies and the strong
dollar relative to the Ukrainian hryvnia. Volumes shipped rose from
103,733 tonnes in H1 2015 to 137,568 tonnes in H1 2016, a rise of
33%. Finance costs rose significantly to US$1.197 million (H1 2015:
US$0.518 million), largely as a result of foreign exchange losses
of US$0.608 million on US$ denominated loans to Active Energy Group
plc accounted for in GBP sterling, as being the functional currency
of the parent company, following the devaluation of Sterling
following the UK's referendum on membership of the European Union
in June 2016. The Group continues to be reliant on this high-cost
debt for working capital, introduced in 2014 and reported a further
loss from its share of the associated Canadian joint venture of
US$0.194 million (H1 2015: US$0.295 million) which is expected to
reverse on the successful commencement of operations.
The Group reported an operating profit before share based
payments of US$1.015 million (H1 2015: operating loss US$0.569
million). This resulted from the higher-margin and revenues and a
significant reduction in administration costs to US$1.323 million
(2015 US$2.391 million). The loss before tax reported was therefore
lower at US$0.905 million (H1 2015: US$2.050 million) which
reflects all the above factors. Non-cash share based payments
attributable to incentive awards of share options to the management
team of US$0.562 million were in line with the previous year (H1
2015: US$0.594 million).
Post period we raised gross proceeds of GBP2.05 million through
the issue of 77,358,491 new ordinary shares of 1p each to new and
existing shareholders. This will improve our balance sheet and
allows us to commence our expansion initiatives.
Outlook:
I believe the outlook for the business is positive as we
continue the development of all three divisions. With the
installation of additional capacity at Yuzhny Port, we should
continue to grow revenues and create further investment capital to
continue the implementation of our expansion strategy, which
includes expanding our geographical reach in Canada, the United
States, Europe, the Middle East and Asia.
Additionally, management envisage a significant upside from AEG
TimberLands both in the successful conclusion of the Métis
Settlement agreement in Canada with the support of the Alberta
Government, and the new commercial agreements with Ukrainian
forestry partners, combined in each instance with the
commercialisation of our proprietary CoalSwitch technology. We look
forward to providing further updates on these developments in due
course.
Finally, I would like to take this opportunity to thank both our
long term shareholders and the new shareholders that participated
in the recent placing, our employees and the Board for their
continued support and hard work, as we build the three divisions of
Active Energy.
Michael Rowan
24 September 2016
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries & Further Information:
Website LinkedIn Twitter
---------------------- -------------------------------------- -----------------------
www.active-energy.com www.linkedin.com/company/activeenergy www.twitter.com/aegplc
(@aegplc)
---------------------- -------------------------------------- -----------------------
Enquiries
------------------------------------------------------------------------------------
Active Energy Richard Spinks richard.spinks@active-energy.com
Group Plc Chief Executive Officer Int: +380 503
942 702
------------------- ------------------------- ------------------------------------
Brian Evans-Jones brian.evans-jones@active-energy.com
Chief Financial Officer UK: +44 (0)7500
861 696
Ukraine: +380
955 227 745
------------------- ------------------------- ------------------------------------
Northland Capital Patrick Claridge/David Office: +44 (0)20
Partners Limited Hignell/Gerry Beaney 3861 6625
Nominated Adviser (Corporate Finance)
& Broker John Howes/Rob Rees
(Sales and Broking)
------------------- ------------------------- ------------------------------------
St Brides Partners Susie Geliher/Megan info@stbridespartners.co.uk
Financial PR Dennison Office: +44 (0)
Adviser 20 7236 1177
------------------- ------------------------- ------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/EXPENSE
FOR THE SIX MONTHSED 30 JUNE 2016
Twelve
Six months Six months months
to to to
30 June 30 June 31 December
Note 2016 2015 2015
(Unaudited) (Unaudited) (Audited)
US$ US$ US$
REVENUE 2 13,409,486 12,046,007 24,377,516
Cost of sales (11,569,050) (10,818,595) (22,392,153)
------------- ------------- -------------
GROSS PROFIT 1,840,436 1,227,412 1,985,363
Other income 885 - 150
Administrative expenses (1,322,693) (2,390,622) (5,398,156)
------------- ------------- -------------
OPERATING PROFIT/(LOSS)
BEFORE SHARE
BASED PAYMENTS 1,080,740 (569,304) (2,031,861)
Share based payments in
administrative expenses (562,112) (593,906) (1,380,782)
--------------------------------------- ----- ------------- ------------- -------------
OPERATING PROFIT/(LOSS) 518,628 (1,163,210) (3,412,643)
Finance income 9,683 - -
Finance costs (1,196,741) (517,869) (1,437,162)
Share of loss of associate (171,305) (369,418) (619,262)
------------- ------------- -------------
LOSS BEFORE TAXATION (839,735) (2,050,497) (5,469,067)
Income tax (116,532) 29,363 (232,752)
------------- ------------- -------------
LOSS FOR THE PERIOD ATTRIBUTABLE
TO OWNERS OF THE PARENT (956,267) (2,021,134) (5,701,819)
OTHER COMPREHENSIVE INCOME/(EXPENSE):
Items that may be subsequently
reclassified to profit
or loss
Exchange differences on
translation of foreign
operations 101,015 (37,572) (74,097)
Exchange differences on
translation of associate 100,471 (13,575) 36,015
------------- ------------- -------------
Total other comprehensive
income/(expense) 201,486 (51,147) (38,082)
------------- ------------- -------------
TOTAL COMPREHENSIVE LOSS
FOR THE PERIOD ATTRIBUTABLE
TO OWNERS OF THE PARENT (754,781) (2,072,281) (5,739,901)
============= ============= =============
Loss per share (US cent)
- Basic and diluted 5 (0.17) (0.37) (1.03)
------------- ------------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2016
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
US$ US$ US$
NON-CURRENT ASSETS
Intangible assets 4,397,910 4,121,494 4,327,224
Property, plant and equipment 2,643,883 1,286,562 2,621,632
Investment in associates 1,229,180 915,008 1,142,605
Loan to joint venture
partner 1,312,471 - 691,748
Available for sale financial
assets 90,583 106,316 100,137
-------------
9,674,027 6,429,380 8,883,346
------------- ------------- -------------
CURRENT ASSETS
Inventory 293,734 929,129 306,209
Trade and other receivables 1,783,154 4,883,990 2,574,088
Cash and cash equivalents 1,537,479 893,651 1,643,855
------------- ------------- -------------
3,614,367 6,706,770 4,524,152
------------- ------------- -------------
TOTAL ASSETS 13,288,394 13,136,150 13,407,498
============= ============= =============
CURRENT LIABILITIES
Trade and other payables 3,264,384 1,470,742 3,574,566
Loans and borrowings 5,968,109 4,543,804 5,567,302
Income tax liabilities 10,960 1,723 156,939
------------- ------------- -------------
9,243,453 6,016,269 9,298,807
------------- ------------- -------------
NON-CURRENT LIABILITIES
Deferred income tax liabilities 397,622 381,713 402,106
Loans and borrowings 3,000,000 2,967,315 2,866,597
------------- ------------- -------------
3,397,622 3,349,028 3,268,703
------------- ------------- -------------
TOTAL LIABILITIES 12,641,075 9,365,297 12,567,510
------------- ------------- -------------
NET ASSETS 647,319 3,770,853 839,988
============= ============= =============
EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE
PARENT
Share capital 10,099,329 10,090,449 10,099,329
Share premium 8,603,703 8,603,568 8,603,703
Merger reserve 2,350,175 2,350,175 2,350,175
Foreign exchange reserve 89,057 (125,494) (112,429)
Own shares held reserve (1,229,630) (1,229,630) (1,229,630)
Convertible debt and warrant
reserve 1,075,301 1,134,437 1,075,301
Retained earnings (20,340,616) (17,052,652) (19,946,461)
------------- ------------- -------------
TOTAL EQUITY 647,319 3,770,853 839,988
============= ============= =============
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2016
30 June 30 June 31 December
2016 2015 2015
Note (Unaudited) (Unaudited) (Audited)
US$ US$ US$
Cash inflow (outflow) from
operations 3 1,765,653 (3,182,833) (704,493)
Income tax paid (266,995) (92,122) (178,627)
------------ ------------ ------------
Net cash inflow (outflow)
from operating activities 1,498,658 (3,274,955) (883,120)
Cash flows from investing
activities
Additions to intangible
assets (93,108) - (103,762)
Contribution to associate (157,409) (851,841) (1,279,696)
Loan to joint venture partner (620,723) - (691,748)
Purchase of property, plant
and equipment (192,132) (680,480) (2,190,331)
Sale of property, plant
and equipment - (13,250) 21,715
Finance income 9,683 - -
------------ ------------ ------------
Net cash outflow from investing
activities (1,053,689) (1,545,571) (4,243,822)
Cash flows from financing
activities
Issue of equity share capital,
net of share issue costs - 1,575,426 1,584,441
Unsecured loans raised 534,210 1,477,664 2,386,000
Finance expenses (1,196,741) (517,869) (137,619)
------------ ------------ ------------
Net cash inflow from financing
activities (662,531) 2,535,221 3,832,822
------------ ------------ ------------
Net decrease in cash and
cash equivalents (217,562) (2,285,305) (1,294,120)
Cash and cash equivalents
at beginning of the year 1,643,855 3,227,414 3,227,414
Exchange (losses)/gains on cash
and cash equivalents 111,186 (48,458) (289,439)
------------ ------------ ------------
Cash and cash equivalents
at end of the period 1,537,479 893,651 1,643,855
============ ============ ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 JUNE 2016
For the six months to 30 June 2016
(unaudited)
Share Share Merger Foreign Own shares Convertible Retained Total
capital premium reserve exchange held debt earnings equity
reserve reserve and warrant
reserve
US$ US$ US$ US$ US$ US$ US$ US$
At 31 December
2015 10,099,329 8,603,703 2,350,175 (112,429) (1,229,630) 1,075,301 (19,946,461) 839,988
Loss for the
year - - - - - - (956,267) (956,267)
Other
comprehensive
income - - - 201,486 - - - 201,486
Share based
payments - - - - - - 562,112 562,112
----------- ---------- ---------- ---------- ------------ ------------ ------------- ------------
At 30 June
2016 10,099,329 8,603,703 2,350,175 89,057 (1,229,630) 1,075,301 (20,340,616) 647,319
=========== ========== ========== ========== ============ ============ ============= ============
For the six months to 30 June 2015
(unaudited)
US$ US$ US$ US$ US$ US$ US$ US$
At 31 December
2014 9,774,327 7,344,264 2,350,175 (74,347) (1,229,630) 1,075,301 (15,625,424) 3,614,666
Loss for the
year - - - - - - (2,021,134) (2,021,134)
Other
comprehensive
income - - - (51,147) - - - (51,147)
Issue of share
capital 316,122 1,259,304 - - - - - 1,575,426
Issue of
convertible
loan - - - - - 59,136 - 59,136
Share based
payments - - - - - - 593,906 593,906
----------- ---------- ---------- ---------- ------------ ------------ ------------- ------------
At 30 June
2015 10,090,449 8,603,568 2,350,175 (125,494) (1,229,630) 1,134,437 (17,052,652) 3,770,853
=========== ========== ========== ========== ============ ============ ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS TO 30 JUNE 2016
For the twelve months to 31 December
2015 (Audited)
Share Share Merger Foreign Own shares Convertible Retained Total
capital premium reserve exchange held debt earnings equity
reserve reserve and warrant
reserve
US$ US$ US$ US$ US$ US$ US$ US$
At 31 December
2014 9,774,327 7,344,264 2,350,175 (74,347) (1,229,630) 1,075,301 (15,625,424) 3,614,666
Loss for the
year - - - - - - (5,701,819) (5,701,819)
Other
comprehensive
income - - - (38,082) - - - (38,082)
Issue of share
capital 325,002 1,259,439 - - - - - 1,584,441
Share based
payments - - - - - - 1,380,782 1,380,782
----------- ---------- ---------- ---------- ------------ ------------ ------------- ------------
At 31 December
2015 10,099,329 8,603,703 2,350,175 (112,429) (1,229,630) 1,075,301 (19,946,461) 839,988
=========== ========== ========== ========== ============ ============ ============= ============
1. ACCOUNTING POLICIES
Basis of preparation
These interim financial statements have been prepared on a going
concern basis using the recognition and measurement principles of
International Accounting Standards, International Financial
Reporting Standards and Interpretations adopted for use in the
European Union (collectively "Adopted IFRS").
The principal accounting policies used in preparing these
interim financial statements are those expected to apply to the
Group's Consolidated Financial Statements for the year ending 31
December 2016 and are unchanged from those disclosed in the Group's
Annual Report for the year ended 31 December 2015. The financial
information for the six months ended 30 June 2016 and 30 June 2015
is unaudited and does not constitute statutory financial statements
for those periods.
The comparative financial information for the full year ended 31
December 2015 has been derived from the audited statutory financial
statements for that period. A copy of those statutory accounts for
that period has been delivered to the Registrar of Companies. The
auditor's report on those accounts was not qualified and did not
contain statements under Chapter 3 of Part 16 of the Companies Act
2006, but did include an emphasis of matter in respect of the
ability to obtain additional funding if expected trading levels are
not achieved. These conditions indicated the existence of material
uncertainties that may have cast doubt on the Group's ability to
continue as a going concern.
Going Concern
Based on the latest trading expectations and associated cash
flow forecasts of the Group headed by Active Energy Group plc, the
Directors have considered the cash requirement. In respect of the
loans at the period-end that fall due for repayment, the directors
have either obtained confirmation from the lender that they will
not seek repayment until such time as the Group and Company are in
a position to do so or are in advanced discussions to extend the
repayment date. In the event that the loans are not extended or if
trading is at the low end of expectations there could be a
requirement for additional funding, but the directors are confident
that they would be able to raise this as and when required,
particularly given the successful raising of finance to date. On
this basis, the Directors believe that the Group will be able to
meet their liabilities as they fall due for a period of at least 12
months from the date of approval of these Interim financial
statements, and have therefore prepared the Interim financial
statements on a going concern basis, however, the directors
recognise that obtaining adequate additional funding cannot be
guaranteed and this is considered to be a material uncertainty that
may cast significant doubt over the Group's ability to continue as
a going concern.
2. SEGMENTAL INFORMATION
The Group reports the following operating segments:
-- 'MDF Wood Chip' denotes the Group's Medium-Density Fibreboard
(MDF) wood chip processing and supply business division.
-- 'Forestry & Natural Resources' denotes the Group's
initiatives to secure ownership of the entire timber supply chain -
from forest to finished product
-- 'BFE Fuel Solutions' denotes the Group's renewable Biomass
for Energy fuel division, which engages in development of
second-generation BFE fuel solutions and systems
For the six months to MDF Forestry BFE Total
30 June 2016
(Unaudited) Wood chip & Natural Fuel
Resources Solutions
US$ US$ US$ US$
Revenue from external
customers 13,409,486 - - 13,409,486
Operating segment profit(loss) 1,577,089 (193,727) - 1,383,362
Finance costs (157,753) - - (157,753)
----------- ------------ ----------- -----------
Segment profit/(loss)
before tax 1,419,336 (193,727) - 1,225,609
Tax credit (121,016) 4,484 - (116,532)
----------- ------------ ----------- -----------
Segment loss for the
period 1,298,320 (189,243) - 1,109,077
=========== ============ =========== ===========
For the six months to MDF Forestry BFE Total
30 June 2015
(Unaudited) Wood chip & Natural Fuel
Resources Solutions
US$ US$ US$ US$
Revenue from external
customers 12,046,007 - - 12,046,007
Operating segment profit(loss) 724,533 (295,418) - 429,115
Finance costs (517,869) - - (517,869)
----------- ------------ ----------- -----------
Segment loss for the
period 206,664 (295,418) - (88,754)
Tax credit 29,363 - - 29,363
----------- ------------ ----------- -----------
Segment loss for the
period 236,027 (295,418) - (59,391)
=========== ============ =========== ===========
For the twelve months MDF Forestry BFE Total
to 31 December 2015
(Audited) Wood chip & Natural Fuel
Resources Solutions
US$ US$ US$ US$
Revenue from external
customers 24,377,516 - - 24,377,516
Operating segment profit(loss) (1,793,999) (664,107) - (2,458,106)
Finance costs (407,227) - - (407,227)
------------ ------------ ----------- ------------
Segment profit/(loss)
before tax (2,201,226) (664,107) - (2,865,333)
Tax credit (241,721) 8,969 - (232,752)
------------ ------------ ----------- ------------
Segment profit/(loss)
for the period (2,442,947) (655,138) - (3,098,085)
============ ============ =========== ============
All assets and liabilities and capital expenditure for the
period are inter-changeable between the divisions and therefore no
segmental analysis has been presented.
Reconciliation of reportable segment profit or loss, assets and
liabilities to the Group's corresponding amounts are as
follows:
Six months Six months Twelve
to to months
to
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
US$ US$ US$
Total profit/(loss) from
reportable segments 1,109,077 (59,391) (3,098,085)
Unallocated amount - corporate
expenses (474,812) (849,968) (193,167)
Unallocated amount - other
income 885 - 150
Unallocated amount - finance 9,683 - -
income
Unallocated amount - finance
expense (1,038,988) (517,869) (1,029,935)
Share based payments (562,112) (593,906) (1,380,782)
------------ ------------ ------------
Loss for the period (956,267) (2,021,134) (5,701,819)
============ ============ ============
3. RECONCILIATION OF LOSS BEFORE TAXATION TO
CASH OUTFLOWS FROM OPERATING ACTIVITIES
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
Group US$ US$ US$
Loss for the period (956,267) (2,021,134) (5,701,819)
Adjustments for:
Share of loss of associate 171,305 369,418 619,262
Share based payment expense 562,112 593,906 1,380,782
Depreciation 169,264 121,786 277,035
Amortisation of intangibles 22,422 146,813 44,845
Loss/(profit) on disposal - 13,250 -
of property, plant and
equipment
Finance income (9,683) - -
Finance expenses 1,196,741 517,869 1,437,162
Income tax 116,532 (29,363) 232,752
------------ ------------ ------------
1,272,426 (287,455) (1,709,981)
Decrease/(Increase) in
inventories 12,475 (402,231) 220,689
(Increase)/Decrease in
trade and other receivables 790,934 (2,033,308) 276,594
Increase/(Decrease) in
trade and other payables (310,182) (459,839) 508,205
------------ ------------ ------------
Net cash inflow (outflow)
from operating activities 1,765,653 (3,182,833) (704,493)
============ ============ ============
4. SHARE CAPITAL
Number US$
Allotted, called up and fully
paid
Ordinary shares of 1p each
(Unaudited)
At 1 January 2016 642,158,903 10,099,329
Shares issued for cash - -
------------ -----------
At 30 June 2016 642,158,903 10,099,329
============ ===========
Number US$
(Unaudited)
At 1 January 2015 621,475,570 9,774,327
Shares issued for cash 20,088,000 316,122
------------ -----------
At 30 June 2015 641,563,570 10,090,449
============ ===========
Number US$
(Audited)
At 1 January 2015 621,475,570 9,774,327
Shares issued for cash 20,683,333 325,002
------------ -----------
As at 31 December 2015 642,158,903 10,099,329
============ ===========
5. LOSS PER SHARE
Twelve
Six months Six months months
to to to
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
US$ US$ US$
Weighted average number
of ordinary shares in issue 564,658,903 542,959,890 554,421,785
------------------ ------------- ---------------
Loss after taxation (956,267) (2,021,134) (5,701,819)
------------------ ------------- ---------------
Loss per share (pence) -
basic and fully diluted (0.17) (0.37) (1.03)
------------------ ------------- ---------------
6. Post Balance Sheet Event
On 8 August 2016 the Group raised gross proceeds of GBP2.05m
($2.68m) through the issue of 77,358,491 new ordinary shares of 1p
shares at a price of 2.65p per share (3.46c) to new and existing
shareholders.
7. COPIES OF THE INTERIM REPORT
Copies of the interim report will be made available on the
Company's website at www.active-energy.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLTAFIEFIR
(END) Dow Jones Newswires
September 26, 2016 02:01 ET (06:01 GMT)
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