TIDMLEAF
RNS Number : 0473P
Leaf Clean Energy Company
27 September 2013
27 September 2013
Leaf Clean Energy Company
Results for the period ended 30 June 2013
The board of Leaf Clean Energy Company ("Leaf") are pleased to
announce the Leaf Group's results for the period ended 30 June
2013.
Highlights of the period are:
-- NAV per share for the Leaf Group was 142.66 cents or 93.80
pence at US$1.5210 to the GBP1 (30 June 2012: 141.52 cents).
-- US$6.0 million gain on revaluation in the carrying value of the portfolio companies.
-- On 20 July 2012 Leaf made a US$5 million investment in
preferred stock of Lehigh Technologies, Inc.
-- Leaf made an additional US$16.4 million of direct equity and
debt investments into existing portfolio businesses.
For further information, please contact:
Bran Keogh +1-202-289-7881
Leaf Clean Energy Company
Ivonne Cantu +44 (0) 207 397 8900
Cenkos Securities plc
Chairman's statement
Leaf Clean Energy Company ("Leaf") and its subsidiary (together,
the "Leaf Group") successfully navigated the turbulence and
uncertainties in the market during the reporting period of July
2012 through June 2013. The board and management focused on
enhancing the value of our portfolio of companies and assisting
investees in reaching critical business milestones. The high
quality calibre and efforts of the Leaf management team have helped
significantly to strengthen these companies. With the market
recovering, we believe that our portfolio is strongly positioned
for eventual realisation at optimal valuations once the acquisition
and IPO markets further improve.
Current market conditions
The 2012 downturn in global investment in clean energy continued
into early 2013, and public markets in the sector remain depressed
compared with earlier years. However, there are signs of returning
investor confidence.
Investment picked up significantly in the 2nd quarter of 2013,
and the WilderHill New Energy Global Innovation Index outperformed
the S&P 500 during the year ending 30 June 2013. After a very
quiet year in 2012 for public equity issuances, there has been a
marked increase in offerings in the clean energy sector during
2013, including by Tesla and Solar City.
The United States, where most of Leaf's portfolio is
concentrated, has led the sector's recent recovery, with investment
up 155% in April-June 2013, compared with the first three months of
the year. Since the president's re-election, the political climate
has also become more encouraging. Both the extension of the wind
production tax credit, and the White House's stated intent to use
executive action to regulate greenhouse gas emissions and promote
clean energy, bode well for our sector.
Portfolio performance
Despite the global market's continuing fragility, Leaf's
U.S.-focused portfolio continues to perform well, with investee
companies successfully pursuing commercial opportunities and
partnerships.
Leaf's efforts to respond to strategic high-quality investment
opportunities resulted in one new investment during the reporting
period. On 20 July 2012, we made a US$5 million investment in
preferred stock of Lehigh Technologies, Inc. ("Lehigh"), a
promising international green materials company.
Other highlights during July 2012-June 2013 included the
following:
Energía Escalona, a hydroelectricity development company in
Mexico City, expanded its flagship project and launched a strategic
partnership with a leading Mexican engineering and building company
that spans project construction, project funding contributions and
development of Mexico's small hydro sector.
Johnstown Regional Energy, LLC (JRE), a large landfill gas
reclamation company, received notice from the California Energy
Commission that power produced by JRE's customers using its "green"
gas satisfies the state's renewable protocol standard. This is a
major boost for JRE's prospects as it is now eligible to receive
much higher pricing than it could expect to receive in the brown
gas markets.
MaxWest Environmental Systems, Inc., the market leader in
wastewater biogasification systems, reached mechanical completion
and successful start-up of its second-generation gasification
technology, resulting in significant market interest.
SkyFuel, Inc., the utility scale solar thermal power solution
company, has completed equipment delivery, on time and on budget,
to two new projects, after successfully completing the first
concentrating solar power (CSP) project in Canada.
Lehigh Technologies, Inc., the green materials company and
newest Leaf investment, expanded its global presence in the tire,
industrial rubber, and plastics industries by establishing
marketing and distribution channel partnerships in Europe and South
America.
Invenergy Wind LLC, a large scale renewable generation company,
closed a US$500 million investment by Caisse de dépôt et placement
du Québec (CDPQ) in a large portfolio of Invenergy-owned wind farms
in the United States and Canada.
Vital Renewable Energy Company (VREC), a developer of ethanol
facilities in Brazil, completed a sugar factory at its BomSucesso
mill, providing the flexibility for both ethanol and sugar
production.
Market outlook
It is only a matter of time until the global clean energy market
strongly rebounds. The fundamental drivers behind the scaling of
renewable energy and clean energy technologies have not changed,
and arguably grow more pressing by the day. These include the need
to address climate change, and to achieve greater energy
independence in developed countries and universal energy access in
the developing world. Meeting global energy needs while reducing
greenhouse gas emissions is only possible by scaling clean energy
sources.
In addition, the increasing cost of fossil fuels, and the need
to replace aging coal generation capacity, both lay the groundwork
for an expanding market share for clean energy generation. In the
United States, for example, analysts project that 20% of U.S.
coal-based power plants are likely to be retired by 2015, with some
market participants suggesting that even higher numbers are
possible. Natural gas, including shale, is unlikely to fill all
that demand. The new EPA regulations on new and existing coal
plants, due to be phased in during 2013-2015, if stringent, could
also boost the renewables market.
While the European market remains depressed, developing
countries' share of global investment in clean energy rose to a
remarkable 46% in 2012, up from 34% in 2011. China was the biggest
factor, growing 22% to US$64.7 billion. South Africa has become the
biggest clean energy investor in Africa, its investment soaring
from a few hundred million dollars in 2011 to US$5.7 billion in
2012. This globalisation of renewable energy technologies, driven
by the developing world's availability of solar, wind and
geothermal power, is creating significant opportunities for our
portfolio companies.
The Leaf Board is closely monitoring the fund's strategic
performance in an effort to achieve the highest possible return for
our investors. The progress achieved by the executive director,
Leaf Management, and the management teams of our portfolio
companies inspires confidence.
Net assets
These consolidated financial statements were approved by the
Leaf Board of Directors on 26 September 2013. During the year ended
30 June 2013, the Leaf Group's net asset value (NAV) per share
increased by 0.8% from 141.52 cents (90.23 pence) to 142.66 cents
(93.80 pence). Of our US$183.7 million of net assets, US$21.0
million was held in cash and US$162.6 million is invested in
portfolio companies. The board believes that the cash balances
provide sufficient liquidity to meet the needs of the
portfolio.
Peter Tom
Chairman
26 September 2013
Management report
Overview
The still-fragile clean energy sector is showing favourable
signs of turning the corner after a lengthy downturn - at least in
the United States. With the market declines of 2012 now starting to
reverse (see Market Outlook, below), the Leaf board and management
remain cautiously optimistic that clean energy markets are on a
path to recovery.
Several indicators suggest a slow return of investor confidence.
In particular, an extended rally in the WilderHill New Energy
Global Innovation Index (NEX) that began in July 2012 enabled it to
outperform the S&P 500 during the year ended 30 June 2013. This
sustained rally has sparked a significant increase in public market
equity raises in the sector, including successful offerings by
Tesla and Solar City.
Given these market factors, we have continued to focus on
providing appropriate operating and financial support to our
investee companies. The goal is to ensure that their potential is
optimised and that they are strongly positioned for eventual
realisations as market conditions further improve.
As one would expect between the end of a long market downturn
and its recovery, Leaf continues to see high quality, promising
transactions through its proprietary network, many of which have
become available due to lack of capital flowing into the sector. As
previously reported, Leaf made one new investment during the year
ended 30 June 2013, in the preferred stock of Lehigh Technologies,
Inc. (Lehigh) We also made additional investments in several
current investee companies. In summary:
-- On 20 July 2012 Leaf made a US$5 million investment in preferred stock of Lehigh;
-- Leaf made an additional US$16.4 million of direct equity and
debt investments in existing portfolio businesses;
-- Leaf earned US$0.8 million of interest income from debt
investments in the portfolio companies during the year; and
-- Leaf received cash payments of accrued and current interest
and repayments of principal on loans to its investee companies
totalling US$0.5 million and US$3.6 million respectively.
Financial performance
The Leaf Group's total Net Asset Value (NAV) on 30 June 2013 was
US$183.7 million, US$1.5 million higher than on 30 June 2012. This
change resulted mainly from the US$1.5 million comprehensive gain
for the year, which consisted primarily of a US$6.0 million gain on
revaluation in the carrying value of the portfolio companies, and
US$0.8 million of interest income on loans to portfolio companies,
less US$5.2 million of administration expenses and US$0.1 million
of taxation expense. At the end of the year, US$21.0 million of the
Leaf Group's NAV was held in cash and US$162.6 million in
investments.
NAV per share for the Leaf Group was 142.66 cents or 93.80 pence
at US$1.5210 to the GBP1. This was an increase of 0.8 per cent for
the one year period from 30 June 2012. The increase was primarily
due to the unrealised gain on investments (+3.7%) offset by
administration expense (-2.8%).
Portfolio highlights
Key performance milestones passed by Leaf and its portfolio
companies during the annual report period included the
following:
-- Energía Escalona (Escalona), the hydroelectric project
development company based in Mexico City, established a strategic
partnership with a leading Mexican engineering and construction
firm. This relationship will include project construction, project
funding contributions and future project developments in the
Mexican small hydro sector. Furthermore, Escalona has secured the
option to participate in a nearby project as part of the
partnership, which further illustrates the favourable aspects of
the relationship. Finally, the company completed engineering work
to increase the size of its flagship development project to 14.5
megawatts, as it seeks to take advantage of Mexico's robust power
markets.
-- Johnstown Regional Energy, LLC (JRE), a large landfill gas
reclamation company, received notice from the California Energy
Commission ("CEC") that power produced by JRE's customers using its
green gas satisfies California's renewable protocol standard
("RPS"). The California market provides an attractive price
incentive for green gas and will partially offset the unfavourable
impact on JRE of lower natural gas prices triggered by shale gas
development. CEC certification is required in order for JRE's green
gas to be eligible to receive the higher-than-market prices
available in California.
-- SkyFuel, Inc., the utility scale solar thermal power solution
company, has completed the delivery of its equipment, on time and
budget, to two new projects, and continues to show good progress in
the commercialisation of its technology. For example, SkyFuel's
completed contract to supply high performance parabolic trough
solar collectors to the City of Medicine Hat in Alberta, Canada,
will offset fuel consumption at the city's combined cycle gas power
plant and avoid 600 metric tons equivalent of carbon dioxide
emissions per year. In November 2012, SkyFuel received the second
phase of a U.S. Department of Energy (DOE) contract to further
develop its SkyTrough technology.
-- MaxWest Environmental Systems, Inc. (MaxWest), the leader in
wastewater biogasification systems, reached mechanical completion
and successful start-up of its second-generation gasification
technology. The company is experiencing significant market interest
given its unique, on-site solution for wastewater residuals.
-- Lehigh, the green materials company and newest investment in
the Leaf portfolio, has expanded its global presence with
partnerships in Europe and South America. These included a
marketing partnership with HERA Holding, a Spanish
waste-to-resource company with a large European presence, and a
distribution channel partnership with Andes Chemical Corporation, a
provider of specialty chemicals and logistics solutions. These
collaborations will accelerate Lehigh's expansion into the tire,
industrial rubber, and plastics industries in Europe, and Latin
America, respectively, bolstering Lehigh's ability to meet growing
global demand for its micronised rubber powder (MRP). In addition,
the U.S. National Center for Asphalt Technology (NCAT) released a
study highlighting Lehigh's MRP products as a sustainable material
for highway construction.
-- Invenergy Wind LLC (Invenergy), the large scale renewable
generation company, closed a US$500 million investment by Caisse de
dépôt et placement du Québec ("CDPQ") in a portfolio of
approximately 1,500 megawatts generated by Invenergy-owned wind
farms in the United States and Canada. The company also closed
construction financing for new wind projects in Texas and New
York.
-- Vital Renewable Energy Company (VREC), a developer of
sugar-cane-based ethanol facilities in Brazil, completed a sugar
factory at its BomSucesso mill, giving the company the flexibility
for both ethanol and sugar production. The company is also pursuing
industrial and agricultural expansion plans to increase the
facility's production capacity.
Market environment and outlook
Global
While 2012 witnessed a 12% drop in global investment in clean
energy from its 2011 level, a decline that continued through early
2013, the market has recovered significantly in recent months,
especially in the United States. Globally, the same factors that
contributed to 2012's poor performance continued to influence
global clean energy investment during the second half of Leaf's
fiscal year ended 30 June 2013.
As reported by Bloomberg New Energy Finance, these included:
- Lingering global macroeconomic problems stemming from the 2008
subprime mortgage crisis in the United States and the sovereign
debt crisis in Europe and corresponding political developments.
- The recent, rapid proliferation of abundant and low-cost shale
gas, leading to low U.S. power prices.
- Global over-capacity and fierce competition in the solar PV
segment, particularly from Asian manufacturers, some of whom have
been accused by U.S. and European players of pricing below
cost.
- U.S. and European policy uncertainty and depressed pricing for quoted clean energy stocks.
However, there are marked regional differences. The European
market appears to have worsened significantly, across each of the
above points, due to continuing uncertainties. The U.S. market has
improved somewhat, due primarily to the economic recovery and
Congressional renewal of the wind power production tax credit (PTC)
through 2013.
In the first calendar quarter of 2013 global clean energy
investment fell to US$43.6 billion, a level not seen since the
first quarter of 2009, as U.S. wind investment reacted to the
delayed extension of the PTC, European investment to reduced
subsidies and Chinese and Brazilian investment to scarce financing.
However, investment recovered significantly in the second quarter
to US$53.1 billion, for a total of US$96.7 billion in the first
half of calendar 2013, a 17% drop as compared to the first half of
the previous year.
The second quarter recovery was mostly due to 155% and 68%
increases, respectively, in U.S. and Chinese investment in clean
energy over the first quarter. The quarter would have been even
better had not Europe's investments decreased by 44% (US$7.5
billion).
For the year ended 30 June 2013, global investment by venture
capital ("VC") and private equity ("PE") firms in clean energy was
US$6.1 billion, down 18% as compared to the previous year. However,
investment picked up in the first half of calendar 2013, up 54%
from the second half of 2012 and 9% from the first half of
2012.
While the above statistics clearly indicate a continuing fragile
state for the global clean energy market, Leaf's board and
management see clear signs that it is turning the corner, at least
in the United States.
Prices of quoted renewable energy companies outperformed the
broader public market in the year ended 30 June 2013, with the NEX
index continuing to rally from its 25 July 2012 low, to finish the
fiscal year with a 29.11% gain versus 17.63% for the S&P 500,
and continuing to rally into Leaf's fiscal first quarter.
This rally has sparked an increase in equity raises in the
public markets, with US$3.8 billion of new public market
investments in Q2 alone, a level not seen in two years. Notable Q2
offerings included a US$1.44 billion offering by Mighty River
Power, US$660 million and US$360 million convertible and secondary
offerings (respectively) by Tesla, and a $448 million secondary
offering by Solar City, close on the heels of its successful Q4
IPO.
United States
As described above, global clean energy investment recovered in
Q2 2013 from its precipitous Q1 drop, in large part due to growth
in the U.S. sector.
Investors appear to be taking their cue from a political and
economic climate that seems set to build on its recent progress on
renewed clean energy investment. Congress renewed the wind
production tax credit for one year, and President Obama has pledged
to take unilateral action under existing laws to tackle climate
change by regulating carbon emissions.
Central to the President's plan is to use the U.S. Environmental
Protection Agency's (EPA) powers under the Clean Air Act to impose
carbon emission limits on existing and new coal-power plants.
Regulation of emissions from new plants is expected later this
calendar year, while the thornier issue of regulating existing
plants is targeted for a June 2014 proposal, with regulations to be
rolled out in June 2015. The latter could significantly boost the
U.S. renewables market, depending on how strict the new rules
are.
Other steps planned by the Obama administration not requiring
Congressional approval include: US$8 billion in U.S. Energy
Department loan guarantees for advanced fossil energy projects;
permitting for renewable energy projects on federal lands; and fuel
economy standards for heavy-duty trucks beyond model year 2018,
when existing standards expire.
In another positive development, this time at the state level,
the cap-and-trade market for carbon dioxide launched in late 2012
by California is thriving. According to Clean Technica, the third
auction of allowances sold out in May 2013 at US$14/ton, up from
US$13.62/ton and US$10.09/ton respectively for the second and first
auctions in February 2013 and November 2012.
Leaf outlook
While it is still too early to be confident of a robust clean
energy market recovery, Leaf is cautiously optimistic that
continued improvement may foster medium-term opportunities for
realisations for some of its portfolio companies. In the meantime,
Leaf has continued to focus in the short term on the management of
its existing portfolio, having prudently maintained cash reserves
to provide appropriate financing for its portfolio
Leaf's board and management continue to believe that the
diversity and balance of the Leaf portfolio, together with Leaf's
focus on adding value to existing investee companies, sets it up
well to benefit as clean energy markets improve. Our goal remains
positioning our investee companies for eventual realisation in
order to provide a long-term return to Leaf's shareholders.
Portfolio overview
A. Active investments - growth companies
MaxWest Environmental Systems ("MaxWest") Waste-to-energy
gasification
Investment cost: US$23.8mm Ownership: Significant stake
------------------------------------------- -------------------------------------------------------------------------
Company summary Recent highlights
MaxWest is the industry leader
for gasification systems for * Announced the appointment of Steven D. Winchester, as
biosolids disposal in the wastewater its new chief executive officer.
treatment industry.
MaxWest provides municipalities
and industrial sites with a
cost-effective, on-site, environmentally * Reached mechanical completion and successful start-up
friendly alternative to traditional of its second-generation gasification technology.
methods of waste disposal, offering
both a fully integrated design,
build, own and operate MaxWest
biosolids management solution,
and an equipment purchase option.
www.maxwestenergy.com
------------------------------------------- -------------------------------------------------------------------------
SkyFuel Inc. ("SkyFuel") Concentrated solar power
Investment cost: US$33.4mm Ownership: Significant stake
------------------------------------------------------------- ------------------------------------------------------------------------
Company summary Recent highlights
SkyFuel was founded in 2007
and is an emerging technology * Won and fulfilled the contract for Canada's first
leader in the solar thermal concentrating solar power (CSP) project. SkyFuel
power equipment sector. supplied high performance parabolic trough solar
SkyFuel is one of the few remaining collectors to Medicine Hat in Alberta, offsetting
stand-alone concentrated solar fuel consumption at the city's combined cycle gas
power ("CSP") technology providers. power plant and avoiding the equivalent of 600 metric
SkyFuel possesses proprietary tons of carbon dioxide emissions per year.
and patented technologies which
provide a meaningful cost advantage
relative to its competitors:
* Selected as the winner of the 2012 Solar Paces
* SkyTrough(R) - an advanced, low-cost, accurate technology award, a notable recognition by its
parabolic trough based on ReflecTech(R) industry peers.
* ReflecTech(R) Mirror Film - a shatterproof glass * Awarded the second phase of a U.S. Department of
alternative. Energy (DOE) contract to further develop its
SkyTrough technology.
www.skyfuel.com
* The Kingdom of Saudi Arabia (KSA) announced the
world's largest solar thermal procurement program (25
GW by 2032), a favourable development for SkyFuel.
www.skyfuel.com/#/NEWS/
------------------------------------------------------------- ------------------------------------------------------------------------
Lehigh Technologies, Inc. ("Lehigh") Green materials
Investment cost: US$5.0mm Ownership: Minority
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Company summary Recent highlights
Lehigh is a leading sustainable
materials manufacturer whose * Announced a marketing partnership with HERA Holding
proprietary, cryogenic turbo as part of an entry into the European market.
mill technology converts end-of-life
and post-industrial rubber material
into sustainable chemical additives
used in a wide range of industrial * Established a distribution channel partnership with
and consumer applications. Andes Chemical Corporation to accelerate Lehigh's
Lehigh's micronised rubber powder expansion into Latin America.
("MRP") products help customers
lower their consumption of oil-derived
and energy intensive materials,
cut costs, increase the sustainability * Published a joint study with the National Center for
profile of end products, and Asphalt Technology showing that cryogenic powders
deliver performance without sacrificing perform well in Rubber Modified Asphalt systems for
the reliability offered by traditional use in highway repair and maintenance. Lehigh's
raw materials. products have been used in asphalt maintenance
Lehigh is a high-growth company projects in Georgia since 2012.
with a disruptive technology
led by a top-tier management
team. www.lehightechnologies.com/index.php/news_events/
www.lehightechnologies.com
------------------------------------------ ------------------------------------------------------------------
B. Active investments - projects
Johnstown Regional Energy, LLC ("JRE") Landfill gas
Investment cost: US$37.5mm Ownership: Wholly owned
-------------------------------------------- ------------------------------------------------------------------------
Company summary Recent highlights
JRE owns and operates three high-Btu
landfill gas-to-methane projects * Currently selling 100% of JRE's gas to buyers in
in Pennsylvania. California.
JRE extracts raw landfill gas
that is subsequently cleaned
in advanced technology processing
plants and sold to utility gas * In July 2013, JRE's major customer in California
providers via connecting pipelines received CEC certification of the RPS eligibility of
as an alternative to fossil-based power made from JRE's green gas.
natural gas.
This high quality "green" gas
can displace the use of fossil-fuel-based
natural gas, making it eligible
for premium pricing in states
which have renewable protocol
standards (RPSs) incorporating
reclaimed landfill gas.
-------------------------------------------- ------------------------------------------------------------------------
Multitrade Rabun Gap ("Rabun Gap") Wood-fuelled biomass
Investment cost: US$11.4mm Ownership: Majority
--------------------------------------- ------------------------------------------------------------------------
Company summary Recent highlights
Rabun Gap is a 20 megawatts capacity
wood-fuelled biomass facility * Operations and maintenance (O&M) management firm has
in Georgia. completed operational improvement plans which have
Rabun Gap utilises renewable decreased burn rate and increased output.
fuel from the local forest industry
and sells power to a Georgia
co-operative under a long-term
power purchase agreement. * Experiencing continued higher-than-expected fuel
prices due to the U.S. Department of Agriculture's
decision to refocus its Biomass Crop Assistance
Program (BCAP).
--------------------------------------- ------------------------------------------------------------------------
Multitrade Telogia ("Telogia") Wood-fuelled biomass
Investment cost: US$7.3mm Ownership: Majority
------------------------------------------ ------------------------------------------------------------------------
Company summary Recent highlights
Telogia is a 14 megawatts capacity
wood-fuelled biomass facility * Experiencing higher-than-expected fuel prices due to
in Telogia, Florida. the U.S. Department of Agriculture's decision to
Telogia utilises renewable fuel refocus its BCAP Program.
from the local forest industry
and sells power to a local co-operative
under a long-term power purchase
agreement.
------------------------------------------ ------------------------------------------------------------------------
Vital Renewable Energy Company ("VREC") Biofuels - ethanol
Investment cost: US$23.0mm Ownership: Significant stake
-------------------------------------------- ------------------------------------------------------------------------
Company summary Recent highlights
VREC is a renewable energy company
focused on the development of * Completed the addition of a sugar factory at its Bom
sugar-cane-based ethanol facilities Sucesso mill, giving the company the flexibility for
and electricity generation in ethanol and sugar production.
Brazil, as well as related infrastructure
projects.
www.vrec.com.br
* Continues with industrial and agricultural expansion
plans designed to increase the production capacity of
the Bom Sucesso facility.
-------------------------------------------- ------------------------------------------------------------------------
Energía Escalona ("Escalona") Hydro
Investment cost: US$10.1mm Ownership: Majority
-------------------------------------- ------------------------------------------------------------------
Company summary Recent highlights
Escalona is a hydroelectric project
development company based in * Escalona closed a strategic partnership transaction
Mexico City. The company's flagship with a leading Mexican engineering and construction
development is a 14.5 megawatts firm. The partnership establishes a relationship for
run-of-river hydroelectric facility construction and future development in the country.
located in Veracruz, Mexico.
* The company received several proposals for financing
and is moving forward with the debt financing
process.
* Escalona increased the size of its flagship
development to 14.5 megawatts from 12 megawatts.
-------------------------------------- ------------------------------------------------------------------
C. Passive investments
Invenergy Wind LLC ("Invenergy") Wind power
Investment cost: US$30.0mm Ownership: Minority
----------------------------------------- -------------------------------------------------------------------------
Company summary Recent highlights
The largest independently-owned
wind energy developer in North * Closed a US$500 million investment by Caisse de
America. Invenergy has now put dépôt et placement du Québec (CDPQ) in
into service 40 wind farms in operating wind farms in the United States and Canada
the United States, Canada and that generate a combined 1,500 megawatts of green
Europe, totalling over 3,400 power.
megawatts.
In addition to its large portfolio
of operating assets, Invenergy
also has a strong and diversified * Closed construction financing for its 148.6 megawatts
pipeline of 700 megawatts of Goldthwaite wind project currently under construction
wind power projects under construction in Mills County, Texas.
or under contract and soon to
begin construction across North
America and Europe.
www.invenergyllc.com * Closed construction financing for its 94 megawatts
Orangeville wind farm currently under construction in
Wyoming County, New York.
* Was named Project Finance Borrower of the Year by
Power Finance & Risk ("PF&R").
www.invenergyllc.com/news.html
----------------------------------------- -------------------------------------------------------------------------
26 September 2013
Report of the directors
The directors hereby submit their annual report of the audited
consolidated financial statements of the Leaf Group for the
financial year ended 30 June 2013.
The Company
Leaf was incorporated in the Cayman Islands and was established
to invest in clean energy projects, predominantly in North America.
Clean energy includes activities such as the production of
alternative fuels, renewable power generation and the use of
technologies to reduce the environmental impact of traditional
energy. Leaf seeks to achieve long term capital appreciation
primarily through making privately negotiated acquisitions of
interest (principally equity but also equity-related and
subordinated or mezzanine debt securities) in both projects and
companies which own assets or which participate in the clean energy
sector and through the generation and commercialisation of carbon
credits derived from these projects.
Results and dividends
The results and financial position of the Leaf Group for the
year ended 30 June 2013 are set out in the attached financial
statements.
The directors do not intend to declare a dividend at this time
(2012: US$nil).
Directors and directors' interests
The directors during the year and up to the date of this report
were:
Peter Tom (non-executive
chairman)
Bran Keogh (executive director)
J. Curtis Moffatt (non-executive
director)
Peter O'Keefe (non-executive
director)
Details of interests
The interests of the directors in the share capital of Leaf as
at 30 June 2013 are set out below:
Name 2013 2012
Bran Keogh No. of ordinary No. of ordinary
Peter Tom shares shares
J. Curtis Moffatt 500,000 500,000
Peter O'Keefe 200,000 200,000
66,500 66,500
51,000 51,000
Notified shareholdings
As at the date of this report, the following interests in the
ordinary shares of Leaf of 3% and over of the issued share capital
had been notified to Leaf:
% of issued share
Name No. of shares capital
INVESCO Asset Management Limited 59,000,000 45.83%
Lansdowne Partners Limited 18,340,000 14.25%
Kames Capital 17,871,159 13.88%
Aviva Investors Global Services
Limited 10,044,600 7.80%
Jupiter Asset Management Ltd. 9,550,000 7.42%
J.P. Morgan Chase 5,048,300 3.92%
BlueCrest Capital Management LLP 4,275,000 3.32%
Independent auditors
Our Auditors, KPMG, being eligible have expressed their
willingness to continue in office.
Corporate governance
The directors have taken measures to ensure that the Leaf Group
complies with the UK Corporate Governance Code to the extent they
consider appropriate, taking into account the size of the Leaf
Group and nature of its business.
Board of directors
Leaf has an experienced board which is currently comprised of
four directors, all of whom are non-executive directors except Bran
Keogh who was appointed by the board to become an executive
director in February 2010. Peter Tom is the non-executive chairman
of the board.
In addition to service on the Leaf Board, Bran Keogh serves the
board of Vital Renewable Energy Company, LLC and J. Curtis Moffatt
serves the board of Johnstown Regional Energy, LLC. No additional
compensation is paid to the directors for the services on the
referenced portfolio companies' boards.
Audit committee
Leaf has established an audit committee, which is comprised of
J. Curtis Moffatt (chairman of the committee), Peter Tom and Peter
O'Keefe. The audit committee meets at least twice a year and
considers the appointment and fee of the external auditors and also
discusses the scope of the audit and its findings. This committee
is also responsible for monitoring compliance with accounting and
legal requirements and for reviewing the annual and interim
financial statements of the Leaf Group prior to their submission
for approval by the board. The audit committee also focuses on
ensuring that an effective system of internal financial and
non-financial controls is maintained. The audit committee has
unrestricted access to the Leaf Group's external auditors.
Remuneration committee
Leaf has established a remuneration committee, which is
comprised of Peter Tom and Bran Keogh. The remuneration committee
meets at least once a year and reviews the level of directors'
fees. The committee engaged Mercer Limited ("Mercer") in February
2011 to conduct an independent remuneration review.
The committee met on 3 March 2011 and recommended that the board
adopt the recommendations from Mercer. The board voted at the board
meeting on 3 March 2011 to adopt the Mercer recommendations
effective 1 April 2011. As a result, effective 1 April 2011, the
basic annual remuneration for the chairman and the executive
director was maintained at US$200,000 and US$400,000 respectively.
In addition, the executive director will be entitled to receive an
annual bonus of US$350,000. The base fee for the remaining
non-executive directors, was reduced from US$150,000 to US$60,000
and each of the remaining non-executive directors are also entitled
to receive a US$2,500 fee for each board meeting attendance, a
US$10,000 fee for audit committee membership and a US$1,500 per
diem fee for each additional day spent by them performing Leaf
duties, up to a US$150,000 cap on all fees.
Leaf does take all reasonable steps to ensure compliance by the
directors, the directors' families and any employees with the
provisions of the AIM Rules relating to dealings in securities of
the Group and has adopted the Model Code under the FCA's Listing
Rules for this purpose.
Nomination committee
Leaf does not currently consider it necessary to establish a
nomination committee.
Internal control
There are inherent limitations in any system of internal control
and such a system can provide only reasonable, but not absolute,
assurances against material misstatement or loss. The Leaf Group
does not have its own internal audit function but places reliance
on compliance and other control functions of its service
providers.
Where necessary the board obtains specialist advice from
advisers.
On behalf of the board
Peter Tom
Chairman
26 September 2013
Statement of directors' responsibilities in respect of the
annual report and the financial statements
The directors are responsible for preparing the directors'
report and the consolidated financial statements in accordance with
applicable law and regulations. In addition, the directors have
elected to prepare the consolidated financial statements in
accordance with International Financial Reporting Standards.
The consolidated financial statements are required to give a
true and fair view of the state of affairs of the Leaf Group and
the profit or loss of the Leaf Group for that year.
In preparing these consolidated financial statements, the
directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and estimates that are reasonable and prudent;
-- state whether they have been prepared in accordance with
International Financial Reporting Standards; and
-- prepare the consolidated financial statements on the going
concern basis unless it is inappropriate to presume that the Leaf
Group will continue in business.
The directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Leaf Group's
transactions and disclose with reasonable accuracy at any time its
financial position. They have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets
of the Leaf Group and to prevent and detect fraud and other
irregularities.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on Leaf's
website. Legislation governing the preparation and dissemination of
consolidated financial statements may differ from one jurisdiction
to another.
Report of the independent auditors to the directors of Leaf
Clean Energy Company
We have audited the accompanying consolidated financial
statements of Leaf Clean Energy Company and its subsidiary which
comprises the consolidated statement of financial position as of 30
June 2013, and the related consolidated statements of comprehensive
income, changes in equity, and cash flows for the year then ended,
and the related notes to the consolidated financial statements.
Management's Responsibility for the Consolidated Financial
Statements
Management is responsible for the preparation and fair
presentation of these consolidated financial statements in
accordance with International Financial Reporting Standards; this
includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of
consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and
fair presentation of the consolidated financial statements in order
to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as
evaluating the overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements referred
to above present fairly in all material respects, the consolidated
financial position of Leaf Clean Energy Company and its subsidiary
as of 30 June 2013, and the results of their operations and their
cash flows for the year then ended in accordance with International
Financial Reporting Standards.
KPMG
PO Box 493
Century Yard, Cricket Square
Grand Cayman KY1-1106
Cayman Islands
26 September 2013
Consolidated statement of comprehensive income for the year
ended 30 June 2013
Note Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Interest income on cash balances 8 47 65
Interest income on investments
at fair value through profit
or loss 777 1,036
Net gains/(losses) on investments
at fair value through profit
or loss 12.1 5,955 (29,108)
Net foreign exchange loss (10) (7)
------------------------------------------- ------- -------------- ---------------
Gross portfolio return 6,769 (28,014)
Administration expenses 9 (5,172) (5,489)
------------------------------------------- ------- -------------- ---------------
Gain/(loss) before taxation 1,597 (33,503)
Taxation (129) (330)
------------------------------------------- ------- -------------- ---------------
Total gain/(loss) and total comprehensive
income/(loss) for the year 1,468 (33,833)
=========================================== ======= ============== ===============
Gain/(loss) for the year attributable
to equity holders 1,468 (33,833)
Basic and diluted earnings/(loss)
per share (cents) 11 1.14 (26.28)
=========================================== ======= ============== ===============
The accompanying notes form an integral part of these
consolidated financial statements.
Consolidated statement of financial position as at 30 June
2013
Note Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Assets
Investments at fair value
through profit or loss 12.1 162,633 138,734
Property, plant and equipment 20 17
Total non-current assets 162,653 138,751
------------------------------- ------ -------------- ---------------
Trade and other receivables 13 887 479
Restricted cash 7,14 3,171 96
Cash and cash equivalents 14 17,824 43,828
------------------------------- ------ -------------- ---------------
Total current assets 21,882 44,403
------------------------------- ------ -------------- ---------------
Total assets 184,535 183,154
=============================== ====== ============== ===============
Equity
Share capital 15 28 28
Share premium 15 306,809 306,809
Retained losses (123,170) (124,638)
------------------------------- ------ -------------- ---------------
Total equity 183,667 182,199
------------------------------- ------ -------------- ---------------
Liabilities
Trade and other payables 16 868 955
Total current liabilities 868 955
------------------------------- ------ -------------- ---------------
Total liabilities 868 955
------------------------------- ------ -------------- ---------------
Total equity and liabilities 184,535 183,154
=============================== ====== ============== ===============
Net asset value per share
(cents) 6 142.66 141.52
=============================== ====== ============== ===============
The accompanying notes form an integral part of these
consolidated financial statements.
The consolidated financial statements were approved by the board
of directors on 26 September 2013 and signed on their behalf
by:
Peter Tom J. Curtis Moffatt
Non-Executive Chairman Non-Executive Director
Consolidated statement of changes in equity for the year ended
30 June 2013
Share Capital Share Premium Retained losses Total equity
US$'000 US$'000 US$'000 US$'000
---------------------------------------- -------------- -------------- ---------------- -------------
Balance at 1 July 2011 (as restated) 29 311,574 (90,805) 220,798
Repurchase of Shares (1) (4,765) - (4,766)
Total comprehensive loss for the year - - (33,833) (33,833)
Balance at 30June 2012 (as restated) 28 306,809 (124,638) 182,199
======================================== ============== ============== ================ =============
Balance at 1 July 2012 (as restated) 28 306,809 (124,638) 182,199
Total comprehensive gain for the year - - 1,468 1,468
Balance at 30June 2013 28 306,809 (123,170) 183,667
The accompanying notes form an integral part of these
consolidated financial statements.
Consolidated statement of cash flows for the year ended 30 June
2013
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Cash flows from operating activities
Interest received on cash balances 54 65
Interest received on loans 570 5,902
Operating expenses paid (5,311) (5,701)
Income tax paid (267) (333)
------------------------------------------------ -------------- ---------------
Net cash used in operating activities (4,954) (67)
------------------------------------------------ -------------- ---------------
Cash flows from investing activities
Purchase of financial assets at fair value
through profit or loss (21,492) (8,788)
Repayment of capital by investee companies 3,548 16,092
Net purchases of property, plant and equipment (21) (10)
Net cash (used in)/generated by investing
activities (17,965) 7,294
------------------------------------------------ -------------- ---------------
Cash flows from financing activities
Repurchase of shares during the year - (4,766)
Net cash used in financing activities - (4,766)
------------------------------------------------ -------------- ---------------
Net (decrease)/increase in cash and cash
equivalents (22,919) 2,461
Cash and cash equivalents at start of the
year 43,924 41,470
Effect of exchange rate fluctuations on
cash and cash equivalents (10) (7)
------------------------------------------------ -------------- ---------------
Cash and cash equivalents at end of the
year 20,995 43,924
------------------------------------------------ -------------- ---------------
The accompanying notes form an integral part of these
consolidated financial statements.
Consolidated statement of cash flows for the year ended 30 June
2013 (continued)
Reconciliation of total gain/(loss) and Year ended Year ended
total comprehensive gain/loss
for the year to net cash used in operating 30 June 2013 30 June 2012
activities
(As restated)
US$'000 US$'000
Total gain/(loss) and total comprehensive
gain/(loss) for the year 1,468 (33,833)
Adjustments for:
Net (gain)/loss on investments at fair
value through profit or loss (5,955) 29,108
Depreciation expense 18 54
Net foreign exchange loss 10 7
Taxation 129 330
---------------------------------------------- --------------- ----------------
Operating loss before changes in working
capital (4,330) (4,334)
---------------------------------------------- --------------- ----------------
Movement in trade and other receivables (270) 4,695
Movement in trade and other payables (87) (95)
Income taxes paid (267) (333)
---------------------------------------------- --------------- ----------------
Net cash used in operating activities (4,954) (67)
---------------------------------------------- --------------- ----------------
The accompanying notes form an integral part of these
consolidated financial statements.
Notes to the consolidated financial statements for the year
ended 30 June 2013
1. The Company
Leaf was incorporated and registered in the Cayman Islands on 14
May 2007. The fund was established to invest in clean energy
projects, predominantly in North America. Clean energy includes
activities such as the production of alternative fuels, renewable
power generation and the use of technologies to reduce the
environmental impact of traditional energy. Leaf seeks to achieve
long term capital appreciation primarily through making privately
negotiated acquisitions of interest (principally equity but also
equity-related and subordinated or mezzanine debt securities) in
both projects and companies which own assets or which participate
in the clean energy sector and through the generation and
commercialisation of carbon credits derived from these
projects.
The Shares of Leaf were admitted to trading on the AIM market of
the London Stock Exchange ("AIM") on 28 June 2007 when dealings
also commenced.
Leaf's agents, the executive director and the management team
(all employees of Leaf's subsidiary) perform all significant
functions. Accordingly, Leaf itself has no employees.
The consolidated financial statements as at and for the year
ended 30 June 2013 are for the Leaf Group. Refer to note 12.3.
2. Basis of preparation
2.1 Statement of compliance
The Leaf Group's consolidated financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS). Leaf has many shareholders and invests in
portfolio companies solely for return from capital appreciation,
investment income, or both. Substantially all of the Leaf Group's
investments are held on a fair value basis and accordingly the Leaf
Group has early adopted the amendments to IFRS 10: Investment
Entities. As a result, during the year ended 30 June 2013, the Leaf
Group no longer presents standalone parent information.
Additional standards adopted include: IFRS 11 Joint
Arrangements, IFRS 12 Disclosure of Interests in Other Entities,
IAS 27 (revised) and IAS 28 (revised). The amendments to IFRS 10
require investment entities to measure controlled portfolio
entities at fair value under IAS 39 instead of consolidating such
subsidiaries. The comparative figures have been restated to comply
with the new accounting policy. As a result of this change, the
consolidated net asset value previously reported as at 30 June 2012
has been restated from US$174.0 million to US$182.2 million. The
impact of the adoption of these accounting standards on the
restated comparative figures are described in more detail in Note
18.
AIM rules require Leaf to prepare consolidated financial
statements in accordance with IFRS as adopted by the EU. However,
Leaf wished to early-adopt the amendments to IFRS 10 issued by the
IASB in October 2012, requiring investment entities to measure
controlled portfolio investees at fair value. These amendments have
not yet been endorsed by the EU and therefore may not be
early-adopted under the EU-IFRS framework. Leaf obtained a
derogation from AIM permitting such early adoption. As a result,
given that there are currently no other material differences
between IFRS and IFRS as adopted by the EU that affect the Leaf
Group, these consolidated financial statements are prepared in
accordance with IFRS.
These consolidated financial statements were approved by the
board of directors on 26 September 2013.
2.2 Basis of measurement
The consolidated financial statements have been prepared on the
historical cost basis except for the investments held at fair value
through profit and loss that are measured at fair value in the
consolidated statement of financial position.
2.3 Functional and presentation currency
The consolidated financial statements are presented in United
States Dollars ("US$"), which is the Leaf Group's functional
currency. All financial information presented in US$ has been
rounded to the nearest thousand, except when otherwise
indicated.
2.4 Use of estimates and judgements
The preparation of financial statements requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the year
in which the estimate is revised and in any future years
affected.
The most significant area requiring estimation and judgement by
the Directors is the valuation of unquoted investments, see note 5
and 12.
3. Significant accounting policies
The accounting policies set out below have been applied
consistently to all years presented in these consolidated financial
statements.
3.1 Financial instruments
(i) Non-derivative financial assets
The Leaf Group classifies non-derivative financial assets into
the following categories: investments at fair value through profit
or loss and, loans and receivables.
The Leaf Group initially recognises loans and receivables on the
date that they are originated. All other financial assets
(including assets designated as at fair value through profit or
loss) are recognised initially on trade date, which is the date
that the Leaf Group becomes a party to the contractual provision of
the instrument.
The Leaf Group derecognise a financial asset when the
contractual rights to the cash flows from the instrument expire, or
the rights to receive the contractual cash flows are transferred in
a transaction in which substantially all the risks and rewards of
ownership of the financial asset are transferred. Any interest in
such transferred assets that is created or retained by the Leaf
Group is recognised as a separated asset or liability.
Financial assets and liabilities are offset and the net amount
presented in the consolidated statement of financial position when,
and only when, the Leaf Group has a legal right to offset the
amounts and intends either to settle on a net basis or to realise
and settle the liability simultaneously.
Investments held at fair value through profit or loss
The Leaf Group designates its investments, including equity,
loans and similar instruments, as at fair value through profit or
loss on initial recognition. Attributable transaction costs are
recognised in the consolidated statement of comprehensive income as
incurred. Gains and losses arising from changes in fair value of
investments, including foreign exchange movements, are recognised
in the consolidated statement of comprehensive income.
Unquoted investments are valued at fair value using recognised
valuation methodologies, based on the International Private Equity
and Venture Capital Guidelines, which reflect the amount for which
an asset could be exchanged between knowledgeable, willing parties
on an arm's length basis.
Loans and receivables
Loans and receivables are financial assets with fixed or
determinable payments that are not quoted in an active market. Such
assets are recognised initially at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition,
loans and receivables are measured at amortised cost using the
effective interest method, less any impairment losses.
Loans and receivables comprise cash and cash equivalents and
trade and other receivables.
Cash and cash equivalents
Cash and cash equivalents consists of cash balances and call
deposits with maturities of three months or fewer from the
acquisition date that are subject to an insignificant risk of
changes in value, and are used by the Leaf Group in the management
of its short-term commitments.
(ii) Non-derivative financial liabilities
The Leaf Group classifies non-derivative financial liabilities
into the other financial liability category. Such financial
liabilities are recognised initially at fair value less any
directly attributable transaction costs. Subsequent to initial
recognition, these financial liabilities are measured at amortised
costs using the effective interest method.
The Leaf Group initially recognises debt securities issued and
subordinated liabilities on the date that they are originated. All
other financial liabilities (including liabilities designated as at
fair value through profit or loss) are recognised initially on
trade date, which is the date that the Leaf Group becomes a party
to the contractual provision of the instrument.
The Leaf Group derecognises a financial liability when the
contractual obligations are discharged, cancelled or expire.
Financial liabilities comprise trade and other payables.
Bank overdrafts that are repayable on demand and form an
integral part of the Leaf Group's cash management are included as a
component of cash and cash equivalents for the purpose of the
consolidated statement of cash flows.
3.2 Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
Repurchase of share capital
When share capital recognised as equity is repurchased, the
amount of the consideration paid, which includes directly
attributable costs, net of any tax effects, is recognised as a
deduction from equity.
3.3 Revenue and expense recognition
Interest income is recognised on a time-proportionate basis
using the effective interest rate method.
Dividends receivable on equity and non-equity shares, which
carry significant equity rights, are recognised as revenue when the
shareholders' right to receive payment has been established,
normally ex-dividend date. When no ex-dividend date is available,
dividends receivable on or before the year end are treated as
revenue for the year. Provision is made for any dividends not
expected to be received.
Fixed returns on debt securities and loans are recognised on an
effective interest rate basis, which is the rate that exactly
discounts estimated future cash receipts through the expected life
of the financial asset to that asset's net carrying amount.
Expenses are accounted for on an accrual basis and are charged
to consolidated statement of comprehensive income. This includes
expenses directly related to making an investment which is held at
fair value through profit or loss.
3.4 Foreign currency translation
Transactions in foreign currencies are translated to the
functional currency of the Leaf Group at exchange rates at the
dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are
retranslated to the functional currency at the exchange rate at
that date. Non-monetary assets and liabilities denominated in
foreign currencies that are measured at fair value are retranslated
to the functional currency at the exchange rate at the date that
the fair value was determined. Foreign currency differences arising
on retranslation are recognised in the statement of comprehensive
income.
3.5 Dividends payable
Dividends payable are recognised as a liability in the period in
which they are declared and approved.
3.6 Earnings per share
The Leaf Group presents basic and diluted earnings per share
(EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the basic earnings attributable to ordinary shareholders
of Leaf by the weighted average number of ordinary shares
outstanding during the year, adjusted for own shares held. Diluted
EPS is determined by adjusting the basic earnings attributable to
ordinary shareholders and the weighted average number of ordinary
shares outstanding, adjusted for own shares held, for the effects
of all dilutive potential ordinary shares, which comprise
convertible notes and share options granted to employees.
3.7 Income tax expense
Cayman Islands taxation
Leaf received from the Governor-in-Cabinet of the Cayman
Islands, an undertaking that, for a period of 20 years from 5 June
2007 no laws of the Cayman Islands imposing any tax on profits,
income, gains or appreciation shall apply to Leaf and that no such
tax or any tax in the nature of estate duty or inheritance tax
shall be payable on the shares, debentures or other obligations of
Leaf. Under the current Cayman Islands law, no tax will be charged
on profits or gains of Leaf and dividends of Leaf would be payable
to Shareholders resident in or outside the Cayman Islands without
deduction of tax.
In June 2010, Leaf established a subsidiary, Leaf Clean Energy
USA, LLC in Washington, DC which provides asset advisory, portfolio
management and certain administrative services to Leaf and pays
applicable taxes in the United States.
3.8 Future changes in accounting policies
IASB (International Accounting Standards Board) and IFRIC
(International Financial Reporting Interpretations Committee) have
issued the following standards and interpretations with an
effective date after the date of these financial statements:
New/Revised International Financial Reporting Standards
(IAS/IFRS)
--------------------------------------------------------
IFRS 13 Fair Value Measurement
--------------------------------------------------------
Defined Benefit Plans - Amendments to IAS 19
--------------------------------------------------------
IFRIC 20 Stripping Costs in the Production Phase of a
Surface Mine
--------------------------------------------------------
Disclosures - Offsetting Financial Assets and Financial
Liabilities - Amendments to IFRS 7
--------------------------------------------------------
Offsetting Financial Assets and Financial Liabilities
- Amendments to IAS 32
--------------------------------------------------------
IFRS 9 Financial Instruments
--------------------------------------------------------
Recoverable amount disclosures for non-financial assets
- Amendments to IAS 36
--------------------------------------------------------
IFRIC 21 Levies
--------------------------------------------------------
Continuing hedge accounting after derivative novations
- Amendments to IAS 39
--------------------------------------------------------
The impact on the Leaf Group's financial statements is currently
being considered by the Leaf Board.
4 Financial risk management
The Leaf Group's investments expose it to a variety of financial
risks: market risk (including currency risk, market price risk and
interest rate risk), credit risk and liquidity risk.
Market price risk
The portfolio companies in which Leaf invests operate in sectors
that may be affected by the prevailing prices of electricity, oil,
natural gas and other commodities. As energy and fuels derived from
non-renewable sources become more expensive or scarce, renewable
energy and alternative fuels become more valuable. Conversely, if
non-renewable energy and fuels become more abundant or, for other
reasons become less expensive, the value of renewable or
alternative fuels may be negatively affected. As a result, the
performance of the project companies is likely to be dependent upon
prevailing prices for these commodities, which have been
historically, and may continue to be, volatile and subject to wide
variations for a variety of reasons beyond the control of the Leaf
Group. These factors include the level of consumer product demand,
weather conditions, governmental regulations in producing and
consuming countries, the price and availability of alternative
fuels, the supply of oil and natural gas, and overall geo-political
and economic conditions. Therefore, volatility of commodity prices
may adversely affect the value of the Leaf Group's investments.
Market price risk is managed by the Leaf Board.
All of the Leaf Group's investments comprise interests in
companies which are not publicly traded or freely marketable. The
Leaf Group may also be restricted from selling certain securities
by contract or regulatory considerations. Such investments may
therefore be difficult to value or realise. Any such realisation
may involve significant time and expense.
The below table summarises the valuation methodologies and key
assumptions in deriving the aggregate fair value of the investments
of $162.6 million (2012 (As restated): $138.7 million):
Significant inputs
Name of Investment Valuation methodology / assumptions
------------------------------------- ---------------------- -----------------------
Johnstown Regional Energy LLC Discounted cash Production volumes,
("JRE") flow WACC
Invenergy Wind LLC ("Invenergy") Transaction Choice of comparable
and market multiples companies, publicly
available data
about transactions
and operating results
SkyFuel Inc ("SkyFuel") Discounted cash Forecasted deal
flow flow, WACC
Multitrade Rabun Gap, LLC ("MRG") Discounted cash Forecasted operating
flow results, WACC
MaxWest Environmental Systems, Discounted cash Forecasted deal
Inc. ("MaxWest") flow flow, WACC
Vital Renewable Energy Company, Transaction Choice of comparable
LLC ("VREC") and market multiples companies, publicly
available data
about transactions
and operating results
Multitrade Telogia, LLC ("MT") Discounted cash Forecasted operating
flow results, WACC
Energia Escalona s.r.l. ("Escalona") Recent Transaction Transaction terms
Lehigh Technologies Inc. ("Lehigh") Recent Transaction Transaction terms
------------------------------------- ---------------------- -----------------------
If the value of the Leaf Group's investment portfolio
increased/decreased by 5%, the net assets of the Leaf Group would
increase/decrease by US$8.1 million (2012 (As restated): US$6.9
million)
Foreign exchange risk
The Leaf Group is exposed to foreign exchange risk with regard
to transactions made in Sterling and balances held in Sterling.
An analysis of net assets by currency exposure as at 30 June
2013 is as follows:
Net Assets Net Assets
US$'000s US$'000s
30 June 2013 30 June 2012
(As restated)
------------ ------------- ---------------
US Dollars 183,552 182,075
Sterling 114 124
Euro 1 -
------------ ------------- ---------------
Total 183,667 182,199
------------ ------------- ---------------
An appreciation of the Sterling against the US Dollar of 5%
would have decreased net assets by US$8,670 (2012 (As restated):
US$9,722). A decrease of 5% would have an equal and opposite
effect.
Interest rate risk
The Leaf Group is exposed to cash flow interest rate risk on
cash balances which are all short term fixed deposits. The weighted
average interest rates on short term fixed deposits as at 30 June
2013 were:
30 June 2013 30 June 2012
% %
Cash balances
US Dollars 0.07 0.15
Sterling - -
The table below summarises the Leaf Group's exposure to interest
rate risks. It includes the financial assets and liabilities at the
earlier of contractual re-pricing or maturity date, measured by the
carrying values of assets and liabilities:
30 June 2013 Less than 1-3 months 3 months 1-5 years Over 5 Non-interest Total
1month to 1 year Years bearing
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Financial Assets
Investments
at fair value
through profit
or loss 1,764 1,249 5,474 47,089 8,886 - 64,462
Trade and other
receivables - - - - - 887 887
Cash and cash
equivalents 10,009 - - - - 10,986 20,995
------------------------ ---------- ----------- ----------- ---------- -------- ------------- --------
Total financial
assets 11,773 1,249 5,474 47,089 8,886 11,873 86,344
------------------------ ---------- ----------- ----------- ---------- -------- ------------- --------
Financial Liabilities
Trade and other
payables - - - - - (868) (868)
Total financial
liabilities - - - - - (868) (868)
------------------------ ---------- ----------- ----------- ---------- -------- ------------- --------
Total interest
rate sensitivity
gap 11,773 1,249 5,474 47,089 8,886
------------------------ ---------- ----------- ----------- ---------- -------- ------------- --------
30 June 2012 Less than 1-3 months 3 months 1-5 years Over 5 Non-interest Total
1month
(As restated) to 1 year Years bearing
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Financial Assets
Investments
at fair value
through profit
or loss 15,200 - 90 41,781 9,592 - 66,663
Trade and other
receivables - - - - - 479 479
Cash and cash
equivalents 35,026 - - - - 8,898 43,924
----------------------- ---------- ----------- ----------- ---------- -------- ------------- --------
Total financial
assets 50,226 - 90 41,781 9,592 9,377 111,066
----------------------- ---------- ----------- ----------- ---------- -------- ------------- --------
Financial Liabilities
Trade and other
payables - - - - - (955) (955)
Total financial
liabilities - - - - - (955) (955)
----------------------- ---------- ----------- ----------- ---------- -------- ------------- --------
Total interest
rate sensitivity
gap 50,226 - 90 41,781 9,592
----------------------- ---------- ----------- ----------- ---------- -------- ------------- --------
No fair value interest rate sensitivity analysis has been
provided as no financial assets or liabilities are subject to fair
value interest rate risk.
Credit risk
Credit risk is the risk that the counterparty to a financial
instrument will fail to discharge an obligation or commitment that
it has entered into with the Leaf Group.
The carrying amounts of financial assets, excluding equity
investments in portfolio companies, best represent the maximum
credit risk exposure at the reporting date. This relates also to
financial assets carried at amortised cost, as they have a short
term maturity.
At the reporting date, the Leaf Group's financial assets exposed
to credit risk amounted to the following:
30 June 2013 30 June
2012
US$'000 US$'000
(As restated)
------------------------------------------ --------------- ---------------
Investments at fair value through profit
or loss 64,462 66,663
Trade and other receivables 887 479
Cash and cash equivalents 20,995 43,924
86,344 111,066
------------------------------------------ --------------- ---------------
The maximum exposure to credit risk is represented by the
carrying amount of each financial asset in the consolidated
statement of financial position. Management does not expect any
counterparty to fail to meet its obligations. No impairment
provisions have been made as at the year end and no debtors were
past their due date.
Leaf's intermediary subsidiaries are equity investments of the
Leaf Group which would not usually be subject to credit risk.
However, the purpose of these subsidiaries is to hold the Leaf
Group's underlying investments in the investee companies. Portions
of the underlying investments are in the form of loans, convertible
notes or other instruments that are subject to credit risk, and
therefore the value attributable to such instruments is provided in
the credit risk table above.
Cash balances are held with P-1* financial institutions.
*- A Moody's rating of Prime-1 (P-1) means that the issuer has a
superior ability to repay short-term debt for the obligations.
Liquidity risk
Liquidity risk is the risk that the Leaf Group will not be able
to meet its financial obligations as they fall due. The Leaf
Group's approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet their
liabilities when they fall due, under both normal and stressed
conditions, without incurring unacceptable losses. The Leaf Group's
liquidity position is monitored by Leaf's board of directors.
Residual undiscounted contractual maturities of financial
liabilities:
30 June 2013 Less 1-3 3 months 1-5 Over No stated
than months to 1 year years 5 years maturity
1 month
---------------------------- ----------- ---------- ------------- ---------- ----------- ------------
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Financial liabilities
Trade and other payables (868) - - - - -
(868) - - - - -
---------------------------- ----------- ---------- ------------- ---------- ----------- ----------
30 June 2012 (As restated) Less 1-3 3 months 1-5 years Over No stated
than months to 1 year 5 years maturity
1 month
---------------------------- --------- -------- ----------- ---------- --------- ----------
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Financial liabilities
Trade and other payables (955) - - - - -
(955) - - - - -
---------------------------- --------- -------- ----------- ---------- --------- ----------
Fair values
All assets and liabilities at 30 June 2013 are considered to be
stated at fair value.
5. Critical accounting estimates and assumptions
These disclosures supplement the commentary on financial risk
management (see note 4).
Key sources of estimation uncertainty
Determining fair values
The determination of fair values for financial assets for which
there is no observable market prices requires the use of valuation
techniques as described in accounting policy 3.1. For financial
instruments that trade infrequently and have little price
transparency, fair value is less objective, and requires varying
degrees of judgement depending on liquidity, concentration,
uncertainty of market factors, pricing assumptions and other risks
affecting the specific instrument. See also "Valuation of financial
instruments" below.
Critical judgements in applying the Leaf Group's accounting
policies
Critical judgements made in applying the Leaf Group's accounting
policies include:
Valuation of financial instruments
The Leaf Group's accounting policy on fair value measurements is
discussed in accounting policy 3.1. The Leaf Group measures fair
value using the following hierarchy that reflects the significance
of inputs used in making the measurements:
-- Level 1: Quoted market price (unadjusted) in an active market for an identical instrument.
-- Level 2: Valuation techniques based on observable inputs,
either directly (i.e., as prices) or indirectly (i.e., derived from
prices). This category includes instruments valued using: quoted
market prices in active markets for similar instruments: quoted
market prices for identical or similar instruments in markets that
are considered less than active; or other valuation techniques
where all significant inputs are directly or indirectly observable
from market data.
-- Level 3: Valuation techniques using significant unobservable
inputs. This category includes all instruments where the valuation
technique includes inputs not based on observable data and the
unobservable inputs have a significant effect on the instrument's
valuation. This category includes instruments that are valued based
on quoted prices for similar instruments where significant
unobservable adjustments or assumptions are required to reflect
differences between the instruments.
Fair values of financial assets and financial liabilities that
are traded in active markets are based on quoted market prices or
dealer price quotations. For all other financial instruments the
Leaf Group determines fair values using valuation techniques.
Leaf, through its wholly-owned subsidiaries, holds full or
partial ownership interests in a number of unquoted clean energy
companies. These investments are classified as level 3 in the fair
value hierarchy. A reconciliation from the beginning balances to
the ending balances is shown in note 12.
6. Net Asset Value per Share
The net asset value per share as at 30 June 2013 is 142.66 cents
based on net assets of US$183.7 million and 128,745,726 ordinary
shares in issue as at that date (2012 (As restated):141.52 cents
based on net assets of US$ 182.2 million and 128,745,726 ordinary
shares).
7. Restricted cash
Restricted cash balance consists primarily of restricted cash
collateral accounts securing two letters of credit with HSBC USA
totalling US$3.1 million in aggregate, which are in relation to one
of the Leaf Group's investments. Both letters of credit are
expected to be released on or before 30 November 2014, at which
time the Leaf Group expects the restrictions on the corresponding
cash collateral accounts to be released and the cash in the account
to be made available to the Leaf Group again on an unrestricted
basis.
8. Interest income on cash balances
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Interest income receivable on US Dollar cash balances 47 65
------------------------------------------------------- -------------- ---------------
47 65
------------------------------------------------------- -------------- ---------------
9. Administration expenses
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Other expenses 2,124 1,855
Directors' remuneration (note 10) 1,166 1,248
Legal and professional fees 887 1,386
Travel and subsistence expenses 501 560
Administration fees 225 195
Audit fees 119 89
Directors' and officers' insurance expense 97 97
Registrar fees and costs 37 44
Printing and stationery expenses 16 15
Total 5,172 5,489
============================================ ============== ===============
10. Directors' remuneration
Details of the directors' basic annual remuneration areas
follows:
Basic annual remuneration
US$'000
Peter Tom (Chairman) 200
Bran Keogh 400
J. Curtis Moffatt 60
Peter O'Keefe 60
720
====================== ===========================
Directors' fees and expenses were:
30 June 2013 Directors' Annual bonus Reimbursements Total
fees
US$'000 US$'000 US$'000 US$'000
Peter Tom (Chairman) 200 - 2 202
Bran Keogh 400 350 5 755
J. Curtis Moffatt 106 - - 106
Peter O'Keefe 110 - 1 111
816 350 8 1,174
30 June 2012 Directors' Annual bonus Reimbursements Total
fees
US$'000 US$'000 US$'000 US$'000
Peter Tom (Chairman) 200 - 41 241
Bran Keogh 400 350 150 900
J. Curtis Moffatt 148 - 6 154
Peter O'Keefe 150 - 21 171
898 350 218 1,466
====================== =========== ============= =============== ========
In addition to the above basic annual remuneration, Mr. Moffatt
and Mr. O'Keefe are also entitled to receive a US$2,500 fee for
each board meeting attendance, a US$10,000 fee for audit committee
membership and a US$1,500 fee per diem fee for each additional day
spent by them performing Leaf duties, up to a US$150,000 cap on all
fees. Each director is also entitled to receive reimbursement of
any expenses in relation to his appointment. Total reimbursement
fees paid to the directors for the year ended 30 June 2013 amounted
to US$7,857 (2012: US$218,230) of which US$nil was outstanding at
30 June 2013 (30 June 2012: US$nil).
11. Basic earning/(loss) per share
Basic and Diluted
Basic and diluted earning/(loss) per share is calculated by
dividing the earning/(loss) attributable to equity holders of Leaf
by the weighted average number of ordinary shares in issue during
the year:
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
Earning/(loss) attributable to equity holders (US$'000) 1,468 (33,833)
Weighted average number of ordinary shares in issue (thousands) 128,746 128,746
----------------------------------------------------------------- -------------- ---------------
Basic and fully diluted earnings/(loss) per share (cents) 1.14 (26.28)
================================================================= ============== ===============
There is no difference between the basic and diluted
earnings/(loss) per share for the year.
12. Investments
Investments in underlying investee companies (held through
various wholly owned intermediary subsidiaries) comprise ordinary
stock, loans, convertible notes and preferred stock carrying a
cumulative preferred dividend, preferential return of capital and
capped rights to share in profits. The directors, with advice from
the in-house management team, Leaf Clean Energy USA, LLC, have
reviewed the carrying value of each investment and calculated the
aggregate value of the Leaf Group's portfolio. Investments are
measured at the directors' estimate of fair value at the reporting
date, in accordance with IAS 39 'Financial Instruments: Recognition
and measurement'.
12.1 Investments at fair value through profit or loss
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
------------------------------------------------- -------------- ---------------
Balance brought forward 138,734 175,146
Additional investments in subsidiaries 21,492 8,788
Repayment of capital investment (3,548) (16,092)
Movement in fair value of investments 5,955 (29,108)
Balance carried forward 162,633 138,734
------------------------------------------------- -------------- ---------------
Total gains/(losses) for the year included in
profit or loss relating to investments held at
the end of the reporting period. 5,905 (29,108)
================================================= ============== ===============
Investments are stated at fair value through profit or loss on
initial recognition. Loans are reviewed for impairment in
conjunction with the related equity investment in the investee
company. All investee companies are unquoted.
12.2 Portfolio valuation methodology
Unquoted investments are valued by applying an appropriate
valuation technique, which makes maximum use of market-based
information, is consistent with models generally used by market
participants and is applied consistently from year to year, except
where a change would result in a better estimation of fair value.
Leaf primarily invests in unquoted direct investments. Unquoted
direct investments have characteristics similar to private equity
investments, in that the value is generally determined through the
sale or flotation of the entire business, rather than the sale of
an individual instrument. Valuations of such investments are based
upon the "International Private Equity and Venture Capital
Valuation Guidelines."
The in-house management team conducted a valuation analysis of
the Leaf Group's investment portfolio based upon standard valuation
approaches compatible with the "International Private Equity and
Venture Capital Valuation Guidelines." Given the uncertainties
inherent in estimating the fair value of unquoted direct
investments, a degree of caution was applied by the in-house
management team in exercising judgements and making the necessary
estimates.
12.3 The subsidiaries
The consolidated financial statements comprise Leaf and the
following consolidated subsidiary:
Country of Percentage of
incorporation shares held
---------------------------- ---------------- --------------
Leaf Clean Energy USA, LLC USA (Delaware) 100%
Leaf also has control over the following underlying investee
companies but these companies have not been consolidated on the
basis of the early adoption of the amendments to IFRS 10:
Country of Principal activity Effective interest held
incorporation
-------------------------------------- -------------------- -------------------- ------------------------
Energía Escalona Coopertief U.A Netherlands Hydro Energy 87.5%
Escalona B.V Netherlands Hydro Energy 87.5%
Energíia Escalona I S.A. de C.V Mexico Hydro Energy 87.5%
Energía Escalona s.r.l. Mexico Hydro Energy 87.5%
Johnstown Regional Energy LLC USA (Pennsylvania) Landfill Gas 100%
Multitrade Rabun Gap LLC USA (Virginia) Biomass 75%(1)
Multitrade Telogia LLC USA (Virginia) Biomass 66.25%
Telogia Power LLC USA (Florida) Biomass 66.25%
SkyFuel Inc USA (Delaware) Solar Energy 54.4%
Leaf Escalona Company* Cayman Islands 100%
Leaf Hydro Company Cayman Islands 100%
Leaf Invenergy Company* Cayman Islands 100%
Leaf Invenergy US Investments, Inc* USA (Delaware) 100%
Leaf Lehigh Company Cayman Islands 100%
Leaf LFG Company Cayman Islands 100%
Leaf LFG US Investments, Inc.* USA (Delaware) 100%
Leaf MaxWest Company* USA (Delaware) 100%
Leaf Bioenergy Company Cayman Islands 100%
Leaf Biomass Company Cayman Islands 100%
Leaf Biomass Investments, Inc.* USA (Delaware) 100%
Leaf Skyfuels Company* Cayman Islands 100%
Leaf Solar Company Cayman Islands 100%
Leaf Wind Company Cayman Islands 100%
Leaf VREC* Cayman Islands 100%
Leaf Waste Energy Cayman Islands 100%
(1) Voting rights 81.9%
13. Trade and other receivables
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Inter-company receivables 238 146
Prepayments 215 126
Other receivables 434 207
Total 887 479
--------------------------- -------------- ---------------
Amounts due from group companies are unsecured, interest free
and receivable on demand.
14. Cash and cash equivalents
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Short term fixed deposits 10,009 35,026
Bank current account balances 7,815 8,802
------------------------------- -------------- ---------------
Sub Total 17,824 43,828
------------------------------- -------------- ---------------
Restricted cash 3,171 96
------------------------------- -------------- ---------------
Total 20,995 43,924
------------------------------- -------------- ---------------
The short-term deposits are subject to interest rates at 0.07%
per annum and are fixed for periods ranging up to 1 month from the
consolidated statement of financial position date.
15. Share capital
Ordinary shares of GBP0.0001 Number of shares Share capital Share premium
each
US$'000 US$'000
At 30 June 2013 and 30
June 2012 128,745,726 28 306,809
The authorised share capital of the Leaf Group is GBP25,000
divided into 250 million Ordinary Shares of GBP0.0001 each.
Under the terms of the placement on 22 June 2007, Leaf issued
200,000,000 shares of GBP0.0001 each par value at a price of GBP1
each. The difference between the issue price and the par value was
transferred to share premium account, net of share issue
expenses.
Share capital and premium received was translated to US Dollars
at the exchange rate prevailing at the date of receipt of the
proceeds.
The holders of ordinary shares are entitled to receive dividends
as declared from time to time and are entitled to one vote per
share at meetings of Leaf. All shares rank equally with regards to
the Leaf Group's assets.
Capital management
The board's policy is to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain
future development of the business. The board manages the Leaf
Group's affairs to achieve shareholder returns through capital
growth rather than income, and monitors the achievement of this
through growth in net asset value per share.
The Leaf Group's capital comprises share capital, share premium
and reserves and is not subject to externally imposed capital
requirements.
16. Trade and other payables
Year ended Year ended
30 June 2013 30 June 2012
(As restated)
US$'000 US$'000
Other creditors 362 470
Audit fees payable 76 65
Administration fees payable 56 43
Directors' fees payable 374 377
Total 868 955
----------------------------- -------------- ---------------
17. Related party transactions
Parties are considered to be related if one party has the
ability to control the other party or to exercise significant
influence over the other party in making financial or operational
decisions.
Leaf's directors are related parties and details of their fee
arrangements are given in note 10 and their shareholdings are
disclosed under report of the directors.
Leaf's wholly owned subsidiary, Leaf Clean Energy USA, LLC
("Leaf USA"), in Washington, DC provides asset advisory, portfolio
management and certain administrative services to Leaf.
18. Prior year restatement
The Leaf Group has early adopted the amendments to IFRS 10:
Investment Entities (issued October 2012) along with the
consolidation suite of standards, namely: IFRS 11 Joint
Arrangements, IFRS 12 Disclosure of Interests in Other Entities,
IAS 27 (revised) and IAS 28 (revised). The amendments to IFRS 10
require investment entities to measure controlled portfolio
entities at fair value under IAS 39 instead of consolidating such
subsidiaries. The comparative figures have been restated to comply
with the new accounting policy. The below statement shows the
comparative analysis of prior year restatements.
Comparative statement of comprehensive income
Year ended Year ended
30 June 30 June
2012 2012
US$'000 US$'000
Restated Difference
Interest income on cash balances 68 65 3
Interest income on investments at fair
value through profit or loss 4 1,036 (1,032)
Fair value movement on investments (16,053) (29,108) 13,055
Net foreign exchange gain/(loss) 10 (7) 17
------------------------------------------ ----------- --------------------------- -----------------------
Gross portfolio return (15,971) (28,014) 12,043
Other administration expenses (2,214) (5,489) 3,275
------------------------------------------ ----------- --------------------------- -----------------------
Net portfolio return (18,185) (33,503) 15,318
Sales revenue and other income 27,081 - 27,081
Profit on disposal of assets 39 - 39
Impairment of non-financial assets (9,801) - (9,801)
Operating expenses (31,786) - (31,786)
------------------------------------------ ----------- --------------------------- -----------------------
Loss before finance costs (32,652) (33,503) 851
Finance costs (1,458) - (1,458)
------------------------------------------ ----------- --------------------------- -----------------------
Loss before taxation (34,110) (33,503) (607)
Taxation (331) (330) (1)
------------------------------------------ ----------- --------------------------- -----------------------
Loss for the year (34,441) (33,833) (608)
========================================== =========== =========================== =======================
Other comprehensive income - - -
Exchange differences on translation
of foreign operations 58 - 58
------------------------------------------ ----------- --------------------------- -----------------------
Total comprehensive income (34,383) (33,833) (550)
========================================== =========== =========================== =======================
Loss for the year attributable to
Equity holders of the parent (34,005) (33,833) (172)
Non-controlling interests (436) - (436)
------------------------------------------ ----------- --------------------------- -----------------------
(34,441) (33,833) (608)
========================================== =========== =========================== =======================
Total comprehensive income attributable
to
Equity holders of the parent (33,954) (33,833) (121)
Non-controlling interests (429) - (429)
------------------------------------------ ----------- --------------------------- -----------------------
(34,383) (33,833) (550)
========================================== =========== =========================== =======================
Basic and diluted loss per share (cents) (26.01) (26.28) 0.27
========================================== =========== =========================== =======================
Comparative statement of financial position
Year ended Year ended
30 June 30 June
2012 2012
US$'000 US$'000
Restated Difference
Assets
Investments at fair value through
profit or loss 110,171 138,734 (28,563)
Property, plant and equipment 43,053 17 43,036
Intangible assets 3,470 - 3,470
-------------------------------------- ----------- --------------------------- ----------------------
Total non-current assets 156,694 138,751 17,943
-------------------------------------- ----------- --------------------------- ----------------------
Inventories 517 - 517
Trade and other receivables 6,483 479 6,004
Cash and cash equivalents 49,101 43,924 5,177
-------------------------------------- ----------- --------------------------- ----------------------
Total current assets 56,101 44,403 11,698
-------------------------------------- ----------- --------------------------- ----------------------
Total assets 212,795 183,154 29,641
====================================== =========== =========================== ======================
Equity
Share capital 28 28 -
Share premium 306,809 306,809 -
Foreign currency translation reserve (97) - (97)
Retained losses (132,756) (124,638) (8,118)
-------------------------------------- ----------- --------------------------- ----------------------
Total equity attributable to equity
holders of the parent 173,984 182,199 (8,215)
Non-controlling interests (804) - (804)
-------------------------------------- ----------- --------------------------- ----------------------
Total equity 173,180 182,199 (9,019)
-------------------------------------- ----------- --------------------------- ----------------------
Liabilities
Loans and borrowings 33,743 - 33,743
Total non-current liabilities 33,743 - 33,743
-------------------------------------- ----------- --------------------------- ----------------------
Loans and borrowings 2,687 - 2,687
Trade and other payables 3,185 955 2,230
Total current liabilities 5,872 955 4,917
-------------------------------------- ----------- --------------------------- ----------------------
Total liabilities 39,615 955 38,660
-------------------------------------- ----------- --------------------------- ----------------------
Total equity and liabilities 212,795 183,154 29,641
====================================== =========== =========================== ======================
19. Capital commitments
As at 30 June 2013, there were no capital commitments in respect
of investments.
20. Subsequent Events
There have been no subsequent events.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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