Preliminary Results
For immediate release 18 March 2009
Alkane Energy plc
('Alkane', 'the Group' or 'the Company')
Unaudited preliminary results for the year ended 31 December 2008
Alkane Energy plc (AIM: ALK) is a fast growing owner and operator of 'Gas to Power' plants in the UK. Our strategically located gas source is coal mine methane (CMM) extracted from abandoned collieries.
Commenting on the preliminary results, Chief Executive Officer, Neil O'Brien, said:
'2008 was an excellent year for Alkane Energy in which we achieved a 13% growth in electricity generation that was underpinned by robust power pricing.
Our portfolio has the potential to increase up to a possible 50MW of installed generation which we plan to realise in the medium term. With a strong balance sheet and ongoing cash generation we are well funded to complete this growth cycle.
With the sale of our interest in Pro 2 we are now focusing our activities on our UK portfolio, using the cash generated from this transaction.
We look forward to the future with confidence. '
|
Alkane Energy plc Neil O'Brien, CEO Steve Goalby, Finance Director |
Tel: 020 7466 5000 (Today) Tel: 01623 827927 |
|
Buchanan Communications Dr. Ben Willey, Partner Miranda Higham, Associate Brewin Dolphin Andrew Emmott, Director |
Tel: 020 7466 5000 Tel: 0845 270 8611 |
Chairman's Statement
Results
2008 was a very encouraging year with Alkane's profit before taxation on continuing operations growing 128% to £1,948k (2007: £853k). This profit was earned on revenue of £5,191k (2007: £4,270k) an increase of 22%, resulting in an earnings per share on continuing activities of 2.17p (2007: 0.93p) up 133% on the previous year.
In 2004 Alkane changed its strategy from being a pure gas provider to utilise its gas to generate electricity. Since this change Alkane has achieved a 65% compound annual growth in revenue on its CMM business.
By year end 2008 the Company produced energy from the equivalent of 20MW of power generation capacity (2007: 18.5MW) and we continue to work on a large pipeline of projects for the future. In 2008 the Company's power plants generated 90,111MWh of electricity (2007: 79,670MWh). This figure represents a record for the Group, and in addition Alkane sold 3.7 million therms of gas directly to customers (2007: 4.3 million therms).
The electricity price has also been stronger in 2008 with the average selling price rising 15% to £48.44/MWh (2007: £41.94/MWh). Gas sales prices have also increased to an average of 21.93p/therm (2007: 20.54p/therm).
Costs have remained tightly controlled and Alkane retains a highly flexible cost base using modular power plants which are transportable and can be scaled up or down to match the gas production capacity at sites within our licence portfolio. In addition the Company outsources a significant element of the project delivery supply chain which makes Alkane's operations some of the most scalable and flexible in the industry.
Financial review
Alkane has real assets on the ground producing income and positive cash flow. We will strive to maximise this cash flow and then use it to invest in the expansion of the Group's activities. Our strong financial position is reflected by the fact that we are net cash positive. This cash position and cash flow gives us a significant opportunity for the coming year.
EBITDA from continuing operations was £2,602k (2007: £1,115k) which represents 50% of revenue. This high EBITDA margin is further evidence of the cash flow potential that underpins our strategy to exploit our licence portfolio. It is our intention to protect this margin by being one of the lowest cost producers in the industry. This gives us another defensive angle in these recessionary times.
Net interest income other than exchange gains was £112k compared to £90k in the previous year. The significant movement in the value of the Euro during 2008 has resulted in an exchange gain arising from financing of £495k (2007: £155k). The majority of this gain is in respect of the working capital loan made to Pro2. The remaining €2,000k of this loan was repaid in January 2009.
Cash flow from operating activities was £2,200k (2007: £1,258k) with £3,014k invested in property plant and equipment and gas assets (2007: £875k). Alkane's cash balance at 31 December 2008 was £2,176k (2007: £2,100k), with net funds standing at £572k (2007: £755k).
There were a number of one off non-trading items over the 12 months. Overall these items have added £537k to profits this year with the largest item being a foreign currency gain as the Euro strengthened against Sterling. Other non-trading profits include £350k from the surrender of two property leases, whilst extra costs have been incurred on abortive M&A activity and the impairment costs relating to carrying values. Excluding these items the underlying profit before tax on continuing operations was £1,411k (2007: £889k). On the same basis operating profit was £1,299k (2007: £799k).
During the year the Company gained Court approval to cancel the share premium account. This will enable the Company to consider the payment of dividends in future, provided that the Company remains profitable and has sufficient resources to prudently meet these payments.
Operational Review
Alkane's seven sites in the UK have operated well during the year and we have achieved record levels of output at 90,111MWh. Our German plant continues to generate electricity on a reduced scale under the German renewable energy law.
During 2008 Alkane installed two engines totaling 2.9MW at two sites in the UK. One of these engines was taken from Joarin, our German site, as gas resources there have declined. The net effect has been to increase our installed capacity to 20MW. We continue to monitor the gas supply from each site and where necessary we redeploy engine capacity in order to maximise output. This is part of the natural life cycle of any project as the gas reserves are fully exploited, and we would expect to see a decline in capacity from the portfolio of existing sites over a period of time. That is why we aim to maintain a pipeline of new projects coming on stream at regular intervals so that surplus equipment can be successfully redeployed.
There have been a number of scheduled major engine overhauls successfully completed during the year. Our engineering team is focused on the delivery of new capacity, maximising availability and output and we are keen for Alkane to be recognised as one of the best plant operators in the gas to power industry.
With the completion of the 13th Licencing Round for onshore gas supplies, Alkane has 643.75 km2 under licence and we currently have eight completed projects under management and two new power plants under construction. The project development process is complex and covers planning, DECC and Coal Authority permissions, property searches and equally important health and safety controls. Regulation is only part of the development process as we then have to marshal the supply chain with drilling, electricity network connections and power plant delivery, all on long lead times. A typical project can take up to two years to deliver from start to finish and some will take much longer. We are therefore not able to predict the start up of new capacity precisely. However, we have a large spread of projects under way and our target is to grow our installed capacity from the present 20MW to 50MW over the medium term through projects we have identified within our licence portfolio.
In October 2008 we had a report completed on our gas reserves. Whilst these reserve estimates do not translate into directly accessible gas they do indicate the potential of Alkane's licences. The CMM reserves we have in our licence area have been estimated to comprise reserves of up to 4,408 million m3 (3P). In addition, we have a number of licences with Coal Bed Methane (CBM) prospects. Alkane is keeping a watching brief on other companies with CBM operations in the UK and if these prove to be commercially productive then we will evaluate and exploit this opportunity.
Pro2
As previously announced on 2 March 2009, Alkane exchanged contracts for the sale of our entire 38% equity interest in Pro2 and the sale was completed on 4 March 2009. Pro2 manufactures, services and operates equipment for the processing and utilisation of methane, Alkane having first invested in the business in 2003. Deutsche KWK GmbH ('Deutsche KWK'), a German cogeneration and biogas to power company, acquired Alkane's shares for a cash consideration of €3,600k. In addition, terms have been agreed for the early repayment of a long-term shareholder loan and the final tranche of a working capital loan. The total receipts from the sale together with the loan repayments are €7,560k. There is a deferred element; €720k has been placed in an escrow account to act as collateral against any warranty or other claims, and this will be released in 2010; and the outstanding shareholder loan of €960k will be repaid in two instalments on 31 December 2009 and 2010. The total figure receivable is expected to be around book value.
These additional funds will be utilised to accelerate our strategy of developing the CMM project pipeline.
Pro2 contributed £383k to Alkane's profits in 2008 (2007: £299k). This activity has been reclassified as a discontinued operation in the Income Statement.
Board Changes
Lord Fraser of Carmyllie will retire from the Board at the Annual General Meeting of Shareholders to be held on 6 May 2009, following eight industrious years of service. On behalf of the Board I would like to thank Lord Fraser for his invaluable contribution to the Company during his tenure as a Director and wish him well for the future.
As previously announced, Neil O'Brien joined the Group as Chief Executive Officer on 1 November 2008, replacing Cameron Davies who has taken up the role of Business Development Director until he retires from full time involvement from the Group in October of this year. Neil joins the Group after a successful career in a range of finance roles in manufacturing and processing businesses. For the last nine years Neil was Finance Director at Speedy Hire where he steered the group through an extensive period of growth.
Since Neil's arrival we have reviewed our strategic direction and are continuing to work on maximising operational efficiency from the power plants we already operate as well as developing new capacity as quickly as possible.
Strategy
Alkane's business model is a simple one. We gain onshore gas licences and exploit our gas reserves by either selling gas directly to customers or more significantly - generating electricity and selling this via the local electricity distribution network. We use a range of modular power generation units on our sites to give us the maximum flexibility and scalability with an optimum operating size of up to 10MW capacity.
Our end market is the UK base load electrical demand which remains relatively stable even in recession but where we have seen huge swings in pricing over the past 12 months. To manage this volatility and give us a predictable business model we use forward electricity contracts. This gives us visibility for the coming year without trying to guess future energy price movements.
Our market is the specialist clean-tech gas to power market covering methane extraction from CMM, landfills and biogas plants where we estimate we have a growing 2% market share. This sector of the UK gas to power market is expected to grow and we are striving to expand our market share over the coming years through opening new CMM power plants.
We are looking at acquisition opportunities in the gas to power sector but the returns must be comparable with the rapid pay backs and high returns that we are projecting from our current portfolio.
The wider renewable market is witnessing encouraging support from DECC and we will continue to research this sector to seek good investment opportunities. We envisage that our in-house gas to power expertise and our ability to react quickly to proposals will enable us to broaden our product offering in the coming years. The most likely areas for us to expand are those where we have core skills around gas handling and small scale power generation facilities. However it is important to retain as wide a view as possible and we aim to be quick to react in exploiting winning technologies in the renewable energy sector. If we decide to invest in new product areas we will focus on proven technology that matches our business model.
The industry in which we operate should strive to maximise the efficiency and effectiveness of exploration and development programmes through consolidation. This may occur in specialising operations or building scale but cost must be taken out of both development and operations.
No strategy can be delivered without a good team of people. Alkane's in-house and sub-contract team has vast experience in this sector and has the passion to deliver Alkane's expansive development strategy. The Board would like to thank the team for all their efforts this year.
Outlook
The strategy review completed by the Board has set us on a clear path of expansion and we are determined to maximise the value of our reserves and use our funds to grow the Group over the medium term. The sale of Pro2 leaves us ungeared and in a strong financial position to pursue our numerous growth opportunities. This is the first tangible delivery against the strategy.
No business is immune from the recession and with funding in short supply we are taking a cautious view on investments and continue to keep our costs under control. The energy industry is already impacted by the recession and currently demand appears to have dropped by around 10% nationally. Pricing over the last two years has been very volatile reflecting the global trend in energy commodity prices. Nonetheless, at current prices Alkane's operating margins are attractive and the investment case for new site development remains strong.
With the funding now in place and strong operating cash flow, we are well positioned to continue to exploit our CMM reserves and to build our generating capacity. We have set ourselves a target of reaching 50MW of generating capacity over the medium term. In the current year, we have several projects underway, including two currently under construction. Electricity sales contracted for 2009 delivery are at considerably higher prices than we experienced in 2008 and will have a positive effect on operating margins this year. The Board remains confident and we look forward to reporting continuing progress during 2009.
John Lander
Chairman
CONSOLIDATED INCOME STATEMENT (unaudited)
for the year ended 31 December 2008
|
|
2008 |
2007 |
|
|
|
|
|
|
£000 |
£000 |
|
|
|
|
|
REVENUE |
5,191 |
4,270 |
|
Cost of sales |
(2,093) |
(1,682) |
|
|
|
|
|
GROSS PROFIT |
3,098 |
2,588 |
|
|
|
|
|
Administrative expenses |
(1,862) |
(1,872) |
|
Non-recurring (note 4) |
(108) |
(310) |
|
|
|
|
|
RETURN ON GROUP OPERATIONS |
1,128 |
406 |
|
|
|
|
|
Other operating income |
63 |
83 |
|
Proceeds from surrender of leases |
350 |
- |
|
Profit on sale of licence |
- |
185 |
|
Impairment of gas assets |
(200) |
- |
|
Impairment of goodwill |
- |
(66) |
|
|
|
|
|
PROFIT ON ACTIVITIES BEFORE FINANCE INCOME/(COSTS) |
1,341 |
608 |
|
|
|
|
|
Finance income |
294 |
267 |
|
Exchange gain arising from financing |
495 |
155 |
|
Finance costs |
(182) |
(177) |
|
|
|
|
|
NET FINANCE INCOME |
607 |
245 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX |
1,948 |
853 |
|
Tax credit (Note 5) |
60 |
2 |
|
|
|
|
|
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS |
2,008 |
855 |
|
|
|
|
|
Discontinued operations: |
|
|
|
Share of profit of associate (Note 9) |
383 |
299 |
|
Loss on deemed disposal |
- |
(120) |
|
|
|
|
|
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT |
2,391 |
1,034 |
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
From continuing operations: |
|
|
|
Basic, for profit for the year attributable to equity holders of the parent |
2.17p |
0.93p |
|
Diluted, for profit for the year attributable to equity holders of the parent |
2.15p |
0.92p |
|
|
|
|
|
From continuing and discontinued operations: |
|
|
|
Basic, for profit for the year attributable to equity holders of the parent |
2.59p |
1.13p |
|
Diluted, for profit for the year attributable to equity holders of the parent |
2.56p |
1.11p |
|
|
|
|
CONSOLIDATED BALANCE SHEET (unaudited)
at 31 December 2008
|
|
|
2008 |
2007 |
|
|
|
|
|
|
|
|
£000 |
£000 |
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
Property, plant and equipment (Note 7) |
|
5,932 |
3,888 |
|
Gas assets (Note 8) |
|
4,477 |
3,315 |
|
Investments accounted for using the equity method |
|
- |
3,691 |
|
|
|
10,409 |
10,894 |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Inventories |
|
144 |
101 |
|
Trade and other receivables |
|
5,334 |
3,130 |
|
Other financial assets |
|
350 |
350 |
|
Cash and short-term deposits |
|
1,826 |
1,750 |
|
|
|
7,654 |
5,331 |
|
|
|
|
|
|
Assets held for sale (Note 9) |
|
3,322 |
- |
|
|
|
10,976 |
5,331 |
|
|
|
|
|
|
TOTAL ASSETS |
|
21,385 |
16,225 |
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Trade and other payables |
|
(2,799) |
(1,371) |
|
Financial liabilities |
|
(402) |
(315) |
|
Provisions |
|
- |
(3) |
|
|
|
(3,201) |
(1,689) |
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
Financial liabilities |
|
(1,507) |
(1,473) |
|
Provisions |
|
(1,399) |
(1,519) |
|
|
|
(2,906) |
(2,992) |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
(6,107) |
(4,681) |
|
|
|
|
|
|
NET ASSETS |
|
15,278 |
11,544 |
|
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital (Note 11) |
|
464 |
460 |
|
Share premium |
|
72 |
33,259 |
|
Cumulative translation adjustment |
|
927 |
113 |
|
Other reserves |
|
8,531 |
107 |
|
Retained earnings |
|
5,284 |
(22,395) |
|
|
|
|
|
|
TOTAL EQUITY |
|
15,278 |
11,544 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
for the year ended 31 December 2008
|
|
Attributable to equity holders of the parent |
|||||
|
|
Issued |
Share |
Translation |
Other |
Retained |
Total |
|
|
capital |
premium |
of foreign |
reserves(1) |
earnings(2) |
Equity |
|
|
|
|
operations |
|
|
|
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2008 |
460 |
33,259 |
113 |
107 |
(22,395) |
11,544 |
|
|
|
|
|
|
|
|
|
Foreign currency translation |
- |
- |
814 |
- |
433 |
1,247 |
|
Total income and expense for the period recognised directly in equity |
- |
- |
814 |
- |
433 |
1,247 |
|
Profit for the period |
- |
- |
- |
- |
2,391 |
2,391 |
|
Total income and expense for the period |
- |
- |
814 |
- |
2,824 |
3,638 |
|
|
|
|
|
|
|
|
|
Share-based payment |
- |
- |
- |
5 |
- |
5 |
|
Cancellation of share premium |
- |
(33,274) |
- |
8,419 |
24,855 |
- |
|
Issue of share capital |
4 |
87 |
- |
- |
- |
91 |
|
|
|
|
|
|
|
|
|
At 31 December 2008 |
464 |
72 |
927 |
8,531 |
5,284 |
15,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2007 |
459 |
33,234 |
- |
81 |
(23,572) |
10,202 |
|
|
|
|
|
|
|
|
|
Foreign currency translation |
- |
- |
113 |
5 |
143 |
261 |
|
Total income and expense for the period recognised directly in equity |
- |
- |
113 |
5 |
143 |
261 |
|
Profit for the period |
- |
- |
- |
- |
1,034 |
1,034 |
|
Total income and expense for the period |
- |
- |
113 |
5 |
1,177 |
1,295 |
|
|
|
|
|
|
|
|
|
Share-based payment |
- |
- |
- |
21 |
- |
21 |
|
|
|
|
|
|
|
|
|
Issue of share capital |
1 |
25 |
- |
- |
- |
26 |
|
|
|
|
|
|
|
|
|
At 31 December 2007 |
460 |
33,259 |
113 |
107 |
(22,395) |
11,544 |
(1) Other reserves comprise share-based payments of £112,000 (2007: £107,000), and a distributable reserve of £8,419,000 (2007: nil) created following cancellation of the share premium.
(2) The balance of the foreign currency translation reserve at 31 December 2008 was £555,000 (31 December 2007: (£123,000)).
CONSOLIDATED CASH FLOW STATEMENT (unaudited)
for the year ended 31 December 2008
|
|
|
2008 |
2007 |
|
|
|
|
|
|
|
|
£000 |
£000 |
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
Profit before tax from continuing operations |
|
1,948 |
853 |
|
Adjustments to reconcile operating profit to net cash flows: |
|
|
|
|
Depreciation and impairment of property, plant and equipment and gas assets |
|
1,261 |
507 |
|
Amortisation and impairment of intangible assets |
|
- |
66 |
|
Share-based payments expense |
|
5 |
20 |
|
Proceeds from surrender of leases |
|
350 |
- |
|
Profit on sale of licence |
|
- |
(185) |
|
Finance income |
|
(294) |
(267) |
|
Finance expense |
|
182 |
177 |
|
Movements in provisions |
|
(123) |
(32) |
|
(Increase)/decrease in trade and other receivables |
|
(377) |
817 |
|
Increase in inventories |
|
(43) |
(54) |
|
Decrease in trade and other payables |
|
(25) |
(586) |
|
Income tax refunded/(paid) |
|
16 |
(58) |
|
NET CASH FLOWS FROM OPERATING ACTIVITIES |
|
2,200 |
1,258 |
|
CASH FLOWS FROM INVESTING ACIVITIES |
|
|
|
|
Proceeds from surrender of leases |
|
350 |
- |
|
Proceeds from sale of licence |
|
- |
185 |
|
Interest received |
|
401 |
189 |
|
Dividends received |
|
182 |
- |
|
Purchase of property, plant and equipment |
|
(1,784) |
(629) |
|
Purchase of gas assets |
|
(1,230) |
(246) |
|
|
|
|
|
|
NET CASH FLOWS USED IN INVESTING ACTIVITIES |
|
(2,081) |
(501) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Issue of share capital |
|
92 |
26 |
|
Proceeds from sale and finance leaseback |
|
402 |
606 |
|
Sale and finance leaseback rentals |
|
(355) |
(350) |
|
Interest paid |
|
(182) |
(180) |
|
|
|
|
|
|
NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES |
|
(43) |
102 |
|
Net increase in cash and cash equivalents |
|
76 |
859 |
|
Cash and cash equivalents at 1 January |
|
2,100 |
1,241 |
|
CASH AND CASH EQUIVALENTS AT 31 DECEMBER (Note 12) |
|
2,176 |
2,100 |
Dividends received of £182,000 (2007: nil) relate to a discontinued activity (see note 9)
|
Year ended 31 December 2008 (unaudited)
|
|
Continuing operations
|
||
|
|
|
Extraction of gas from coal measures
|
Manufacture supply, operate and maintain equipment
|
Total
|
|
|
|
£000
|
£000
|
£000
|
|
Revenue
|
|
|
|
|
|
Revenue from external customers
|
|
5,188
|
3
|
5,191
|
|
Inter-segment sales
|
|
-
|
267
|
267
|
|
Total revenue
|
|
5,188
|
270
|
5,458
|
|
|
|
|
|
|
|
Depreciation
|
|
(1,063)
|
-
|
(1,063)
|
|
|
|
|
|
|
|
Impairment of gas assets
|
|
(200)
|
-
|
(200)
|
|
|
|
|
|
|
|
Results
|
|
|
|
|
|
Segment profit
|
|
1,984
|
103
|
2,087
|
|
|
|
|
|
|
|
Corporate centre costs
|
|
|
|
(576)
|
|
Corporate centre finance income
|
|
|
|
437
|
|
Profit before tax from continuing operations
|
|
|
|
1,948
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
||
|
|
|
£000
|
£000
|
£000
|
|
Segment result
|
|
-
|
383
|
383
|
|
Year ended 31 December 2007
|
|
Continuing operations
|
||
|
|
|
Extraction of gas from coal measures
|
Manufacture supply, operate and maintain equipment
|
Total
|
|
|
|
£000
|
£000
|
£000
|
|
Revenue
|
|
|
|
|
|
Revenue from external customers
|
|
4,201
|
69
|
4,270
|
|
Inter-segment sales
|
|
-
|
200
|
200
|
|
Total revenue
|
|
4,201
|
269
|
4,470
|
|
|
|
|
|
|
|
Depreciation
|
|
(514)
|
-
|
(514)
|
|
|
|
|
|
|
|
Impairment of goodwill
|
|
-
|
(66)
|
(66)
|
|
|
|
|
|
|
|
Results
|
|
|
|
|
|
Segment profit
|
|
1,130
|
(86)
|
1,044
|
|
|
|
|
|
|
|
Corporate centre costs
|
|
|
|
(658)
|
|
Corporate centre finance income
|
|
|
|
467
|
|
Profit before tax from continuing operations
|
|
|
|
853
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
||
|
|
|
£000
|
£000
|
£000
|
|
Segment result
|
|
-
|
299
|
299
|
|
Loss on deemed disposal
|
|
|
|
(120)
|
|
Profit before tax from discontinued operations
|
|
|
|
179
|
|
|
2008
|
2007
|
|
|
unaudited
|
|
|
|
£000
|
£000
|
|
Extraction of gas from coal measures
|
13,749
|
10,322
|
|
Manufacture, supply, operate and maintain equipment
|
226
|
125
|
|
Total segment assets
|
13,975
|
10,447
|
|
Corporate centre
|
2,587
|
778
|
|
Investment in associate
|
3,322
|
3,691
|
|
Loan to associate
|
1,936
|
1,612
|
|
Inter-segment adjustment
|
(435)
|
(303)
|
|
Total consolidated assets
|
21,385
|
16,225
|
|
|
|
|
|
Extraction of gas from coal measures
|
(6,072)
|
(4,551)
|
|
Manufacture, supply, operate and maintain equipment
|
(8)
|
(9)
|
|
Total segment liabilities
|
(6,080)
|
(4,560)
|
|
Corporate centre
|
(173)
|
(186)
|
|
Inter-segment adjustment
|
146
|
65
|
|
Total consolidated liabilities
|
(6,107)
|
(4,681)
|
|
|
|
|
|
Extraction of gas from coal measures
|
4,467
|
1,457
|
|
Manufacture, supply, operate and maintain equipment
|
-
|
-
|
|
Total capital expenditure
|
4,467
|
1,457
|
|
Year ended 31 December 2008 (unaudited)
|
|
Continuing operations
|
||
|
|
|
United Kingdom
|
Continental Europe
|
Total
|
|
|
|
£000
|
£000
|
£000
|
|
Revenue
|
|
|
|
|
|
Revenue from external customers
|
|
4,961
|
230
|
5,191
|
|
Inter-segment sales
|
|
267
|
-
|
267
|
|
Total revenue
|
|
5,228
|
230
|
5,458
|
|
|
|
|
|
|
|
Depreciation
|
|
(995)
|
(68)
|
(1,063)
|
|
|
|
|
|
|
|
Impairment of gas assets
|
|
-
|
(200)
|
(200)
|
|
|
|
|
|
|
|
Results
|
|
|
|
|
|
Segment profit
|
|
2,305
|
(218)
|
2,087
|
|
|
|
|
|
|
|
Corporate centre costs
|
|
|
|
(576)
|
|
Corporate centre finance income
|
|
|
|
437
|
|
Profit before tax from continuing operations
|
|
|
|
1,948
|
|
|
|
|
|
|
|
|
|
Discontinuedoperations
|
||
|
|
|
£000
|
£000
|
£000
|
|
Segmental result
|
|
-
|
383
|
383
|
|
Year ended 31 December 2007
|
|
Continuing operations
|
||
|
|
|
United Kingdom
|
Continental Europe
|
Total
|
|
|
|
£000
|
£000
|
£000
|
|
Revenue
|
|
|
|
|
|
Revenue from external customers
|
|
3,985
|
285
|
4,270
|
|
Inter-segment sales
|
|
200
|
-
|
200
|
|
Total revenue
|
|
4,185
|
285
|
4,470
|
|
|
|
|
|
|
|
Depreciation
|
|
(446)
|
(68)
|
(514)
|
|
|
|
|
|
|
|
Impairment of goodwill
|
|
(66)
|
-
|
(66)
|
|
|
|
|
|
|
|
Results
|
|
|
|
|
|
Segment profit
|
|
1,038
|
6
|
1,044
|
|
|
|
|
|
|
|
Corporate centre costs
|
|
|
|
(658)
|
|
Corporate centre finance income
|
|
|
|
467
|
|
Profit before tax from continuing operations
|
|
|
|
853
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
||
|
|
|
£000
|
£000
|
£000
|
|
Segment result
|
|
-
|
299
|
299
|
|
Loss on deemed disposal
|
|
|
|
(120)
|
|
Profit before tax from discontinued operations
|
|
|
|
179
|
|
|
2008
|
2007
|
|
|
unaudited
|
|
|
|
£000
|
£000
|
|
United Kingdom
|
13,422
|
9,652
|
|
Continental Europe
|
553
|
795
|
|
Total segment assets
|
13,975
|
10,447
|
|
Corporate centre
|
2,587
|
778
|
|
Investment in associate
|
3,322
|
3,691
|
|
Loan to associate
|
1,936
|
1,612
|
|
Inter-segment adjustment
|
(435)
|
(303)
|
|
Total consolidated assets
|
21,385
|
16,225
|
|
|
|
|
|
United Kingdom
|
(6,068)
|
(4,514)
|
|
Continental Europe
|
(12)
|
(46)
|
|
Total segment liabilities
|
(6,080)
|
(4,560)
|
|
Corporate centre
|
(173)
|
(186)
|
|
Inter-segment adjustment
|
146
|
65
|
|
Total consolidated liabilities
|
(6,107)
|
(4,681)
|
|
|
|
|
|
United Kingdom
|
4,467
|
1,457
|
|
Continental Europe
|
-
|
-
|
|
Total capital expenditure
|
4,467
|
1,457
|
4. NON-RECURRING ITEMS
|
|
|
2008
|
2007
|
|
|
|
unaudited
|
|
|
|
|
£000
|
£000
|
|
|
|
|
|
|
Cost of corporate transactions
|
|
108
|
221
|
|
IFRS implementation costs
|
|
-
|
89
|
|
|
|
108
|
310
|
5. TAXATION
The major components of the tax credit / (expense) in the Group income statement are:
|
|
|
31 December 2008
|
|
31 December 2007
|
|
|
|
unaudited
|
|
|
|
|
|
£000
|
|
£000
|
|
|
|
|
|
|
|
Foreign tax
|
|
-
|
|
-
|
|
Tax over-provided in previous years
|
|
(60)
|
|
(2)
|
|
|
|
(60)
|
|
(2)
|
|
|
2008
|
|
2007
|
|
|
|
|
unaudited
|
|
|
|
|
|
|
£000
|
|
£000
|
|
|
|
|
|
|
|
|
|
|
Profit for the year from continuing operations
|
2,008
|
|
855
|
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
2007
|
|
|
|
|
unaudited
|
|
|
|
|
|
|
£000
|
|
£000
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to equity holders of the parent
|
2,391
|
|
1,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
2007
|
|
|
|
|
unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of ordinary shares
|
92,488,613
|
|
91,865,828
|
|
|
|
Dilutive effect of share options
|
765,596
|
|
1,267,876
|
|
|
|
Diluted weighted average number of ordinary shares
|
93,254,209
|
|
93,133,704
|
|
|
|
|
|
||||
7. PROPERTY, Plant and equipment
8. gas assets
9. ASSETS HELD FOR SALE
10. Capital commitments
11. Share capital
12. ADDITIONAL CASH FLOW INFORMATION
|
|
1 January 2008
|
Cash flow
|
Other non-cash movements
|
Exchange rate differences
|
31 December 2008
|
|
|
|
|
|
|
Unaudited
|
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
Cash at bank and in hand
|
1,750
|
76
|
-
|
-
|
1,826
|
|
Liquid resources
|
350
|
-
|
-
|
-
|
350
|
|
Cash and cash equivalents
|
2,100
|
76
|
-
|
-
|
2,176
|
|
Sale and finance leaseback
|
(1,788)
|
(47)
|
-
|
(74)
|
(1,909)
|
|
Net funds
|
312
|
29
|
-
|
(74)
|
267
|
|
Securities
|
443
|
(138)
|
-
|
-
|
305
|
|
Adjusted net funds*
|
755
|
(109)
|
-
|
(74)
|
572
|
|
|
1 January 2007
|
Cash flow
|
Other non-cash movements
|
Exchange rate differences
|
31 December 2007
|
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
Cash at bank and in hand
|
946
|
859
|
(55)
|
-
|
1,750
|
|
Overdraft
|
(168)
|
-
|
168
|
-
|
-
|
|
Liquid resources
|
512
|
-
|
(162)
|
-
|
350
|
|
Cash and cash equivalents
|
1,290
|
859
|
(49)
|
-
|
2,100
|
|
Sale and finance leaseback
|
(1,532)
|
(256)
|
-
|
-
|
(1,788)
|
|
Long-term loans
|
(227)
|
-
|
227
|
-
|
-
|
|
Finance leases
|
(2,096)
|
-
|
2,096
|
-
|
-
|
|
Net (debt)/funds
|
(2,565)
|
603
|
2,274
|
-
|
312
|
|
Securities
|
555
|
(40)
|
(72)
|
-
|
443
|
|
Adjusted net (debt)/funds*
|
(2,010)
|
563
|
2,202
|
-
|
755
|
13. POST BALANCE SHEET EVENT
14. RELATED PARTY TRANSACTIONS
|
|
2008
|
|
2007
|
|
|
Unaudited
|
|
|
|
(a) Sales of goods and services
|
£’000
|
|
£’000
|
|
Sale of goods:
|
|
|
|
|
- A-TEC Anlagentechnik GmbH1
|
230
|
|
285
|
|
Sale of services:
|
|
|
|
|
- Associate
|
48
|
|
57
|
|
|
278
|
|
342
|
|
(b) Purchases of goods and services
|
|
|
|
|
Purchase of goods:
|
|
|
|
|
- Associate
|
1,508
|
|
835
|
|
Purchase of services:
|
|
|
|
|
- Associate
|
17
|
|
29
|
|
- A-TEC Anlagentechnik GmbH1
|
174
|
|
196
|
|
|
191
|
|
225
|
|
|
|
|
|
|
(c) Year-end balances arising from sales/purchases of goods/services
|
|
|
|
|
Receivables from related parties:
|
|
|
|
|
- Associate
|
48
|
|
170
|
|
- A-TEC Anlagentechnik GmbH1
|
14
|
|
61
|
|
Payments to related parties:
|
|
|
|
|
- Associate
|
1,532
|
|
716
|
|
- A-TEC Anlagentechnik GmbH1
|
12
|
|
40
|
|
(d) Key management compensation
|
|
|
|
|
Salaries and other short-term employee benefits
|
562
|
|
498
|
|
Long-term benefits
|
42
|
|
38
|
|
Share-based payments
|
5
|
|
10
|
|
|
609
|
|
546
|
|
(e) Loans to related parties
|
|
|
|
|
Loans to associate:
|
|
|
|
|
Beginning of year
|
3,086
|
|
3,446
|
|
Loan repayments received
|
-
|
|
(703)
|
|
Interest charged
|
195
|
|
172
|
|
Interest received
|
(307)
|
|
(108)
|
|
Exchange difference
|
873
|
|
279
|
|
End of year
|
3,847
|
|
3,086
|
15. GENERAL NOTE
This information is provided by RNS
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