Cogenpower PLC Working Capital and Operational Update (0066E)
May 03 2017 - 1:30AM
UK Regulatory
TIDMCGP
RNS Number : 0066E
Cogenpower PLC
03 May 2017
3 May 2017
Cogenpower plc
("Cogenpower" or the "Company" or the "Group")
Working Capital and Operational Update
Cogenpower (CGP.L), the AIM-quoted low carbon technology energy
business, today provides an update on the Company's operations and
working capital following the first quarter of the year ended 31
March 2017.
Group reorganisation
As announced on 23 September 2016, Cogenpower resolved to
withdraw from the low-margin retail gas and power supply market,
operated through the Group's wholly owned subsidiary, Cogenpower
Gas and Power s.r.l. ("G&P"), as part of a reorganisation of
the Group. The Board is pleased to announce that this process is
now complete and the division is no longer supplying gas and power.
The Company has entered into a series of negotiations with
G&P's legacy creditors and with the fiscal authority in Italy
to settle most of the G&P liabilities. Further updates will be
announced at the appropriate time.
As highlighted in the Group's final results announcement on 17
June 2016, the Group is focused on growing the Combined Heat and
Power and District Heating ("CHPDH") business and further
penetrating the global EUR30 billion district heating market. In
keeping with the Company's stated strategy, the Group is also
seeking to acquire other CHPDH plants in the near-term, thereby
significantly expanding the Group's presence in the district
heating and cooling market in Northern Italy. Cogenpower has been
in discussions with a number of infrastructure investment companies
who have indicated an interest in providing support to the Group to
successfully implement this strategy.
Working capital
Cashflow
The Group recorded good operational cashflow during the winter
months which helped to alleviate the Group's working capital
position. The Company's working capital position however remains
constrained due to a dispute over the payment of Green Certificate
incentives, as previously announced and as described in more detail
below, and as Cogenpower's business is seasonal, the Company
currently remains reliant on the continued support of Unicredit
S.p.A (its main banker) and its principal trade creditors to
mitigate the impact of lower cash generation during the warmer
months and the dispute with the GSE.
Green Certificates payment
As detailed in the Company's last operational update, announced
on 5 January 2017, the Company's working capital position has been
hindered by the delays surrounding the payment by the Italian
supervisory agency, the GSE, of EUR0.9 million of Green
Certificates earned by the Company during 2015. These have been the
subject of a dispute with the GSE, which was seeking to
retroactively revise the basis of calculation for such payments.
The Company has had the opportunity to present its case at the
regional court in Rome and the view of management continues to be
that there are good grounds to expect a positive outcome from this
dispute.
CO(2) allowances payment
The Company is also awaiting the payment of EUR0.4 million from
the Italian Environmental Ministry ("IEM") in respect of legacy
CO(2) incentives. The Company is pleased to announce that it has
been informed that the IEM intends to pay the full balance of
EUR0.4 million to the Company by the end of 2017. The Company notes
that EUR0.15 million of the total EUR0.4 million is payable
directly to a creditor.
Esseti
The Company's legal adviser has confirmed that the Company
remains in a strong position to recover the full contractual monies
due (approximately EUR104,000) from Esseti Energia srl following
its disposal. The Company announces that it has taken the necessary
steps to begin proceedings to recover the contractual monies
due.
The Group intends to announce its full year results for the year
ended 31 December 2016 during June 2017.
-ENDS-
Further enquiries:
Cogenpower plc Dr. Francesco +39 011 4501466
Vallone
Ilaria Cannata +44 7949 209 301
Martin Groak info@cogenpower.co.uk
--------------------- ----------------- -----------------------
Allenby Capital
(Nominated Adviser Nick Athanas +44 (0)20 3328
and Broker) Richard Short 5656
--------------------- ----------------- -----------------------
Notes to Editors
Energy efficiency through smart technology: Anaconda
technology
Cogenpower (CGP.L) designs, builds or transforms, owns and
operates high efficiency district heating and cooling schemes,
scalable to serve communities from 3,000 to 50,000 people. At the
heart of the business is Cogenpower's Anaconda Artificial
Intelligence technology, an automated, Artificial Intelligence
energy generation and control system equipped with a heat storage
facility that delivers heat to customers and electricity to the
grid with proven energy efficiency of more than 90%. Cogenpower was
admitted to trading on AIM in February 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
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