Interim Results

RNS Number : 8045Z
Camco International Ltd
29 September 2009
 



Camco International - Interim Results 


Camco International Ltd

29 September 2009


Camco International Limited


Interim Financial Report


The Camco Group, a leading climate change and sustainable development business, is pleased to provide an interim financial report for the period to 30 June 2009 and a trading update for the period to 25 September 2009. 


FINANCIAL HIGHLIGHTS as at 30 June 2009

  • Revenue of €5.3 million (30 June 20088.9 million

  • Lower than expected net loss after tax of €6.6 million (excluding impairments) compared to 30 June 2008net loss after tax of €8.2 million, reflecting continued development of the carbon credit portfolio and cost reductions of 12%

  • Overall net loss after tax of €18.3 million, includes a write down of €11.7 million relating to goodwill arising on the acquisition of ESD Partners Ltd in April 2007 

  • Strong net cash balance of €18.3 million at 30 June 2009 (30 June 2008, €8.9 million)


OPERATIONAL HIGHLIGHTS as at 30 June 2009

  • 63% of CER portfolio registered with 40% having completed at least one independent third party verification

  • Tonnes through first independent verification increased almost 100% from 16.1m to 30.9since 31 December 2008

  • Average carbon credit purchase price (excluding VERs) stable at approximately €8 per tonne, well below current market prices

  • Continued derisking of the carbon portfolio with the removal of high risk Russian JI projects from the portfolio


HIGHLIGHTS to 25 September 2009

  • Deliveries beginning to flow: 1.6m tonnes delivered since 30 June 2009 bringing total deliveries to 8.1m tonnes

  • Total Risk Adjusted carbon portfolio stable

  • Origination of high quality projects continues with four new wins from existing and new clients added to the Chinese CER portfolio since 30 June 2009

  • The company has signed an agreement to place up to US$200 million of external funds into China clean technology investments

  • Strong net cash balance of €18.1 million at 31 August 2009 


Jeff Kenna, Camco Chief Executive, said: 

'This year has been a challenging period for our business. In a difficult market we have managed to keep our risked portfolio stable.  Deliveries are beginning to flow from our projects, interest in our projects remains extremely strong and the carbon price has continued to strengthen. We keenly await clarity on the post 2012 policy environment and look forward to the opportunities this presents for our business. Our Advisory business performed below expectations in an extremely testing environment and we are reviewing options to improve the performance of this business unit during the second half of the year.' 


Notes to editors:

Enquiries:


The Camco Group

+44 (0)20 7121 6100

Jeff Kenna, Chief Executive Officer


Scott McGregor, Chief Financial Officer




KBC Peel Hunt Ltd (Nominated Adviser and Broker)

+44 (0)20 7418 8900

Jonathan Marren (Corporate Finance)


David Anderson (Corporate Finance)


Matthew Tyler (Corporate Broking)




Kreab Gavin Anderson

+44 (0)20 7074 1800

Ken Cronin


Kate Hill


Alex Gowlland


Michaela Wood 



About Camco

Camco is an international leader in identifying and implementing solutions that help businesses address their climate change risks and opportunities. Camco has a 20-year track record in advisory services and one of the largest and most diversified portfolios of carbon credits, making it a premier climate change and sustainable development company.

Camco brings together the distinct but complementary service areas of Carbon Credits, Advisory and Investments to help its clients manage all aspects of their carbon risk. Camco's businesses collaborate between service groups and countries, sharing technical and commercial expertise to find the best options for its clients. 

The Carbon business unit is a leading project developer with one of the world's largest carbon credit portfolios. We partner with companies to identify, develop and manage projects that reduce greenhouse gas emissions, and then arrange the sale and delivery of carbon credits to international compliance buyers and into the voluntary market.

The Carbon business unit has also created one of the largest carbon credit portfolios by working closely with companies to identify and develop projects that reduce greenhouse gas (GHG) emissions. The team has structured ground breaking and innovative arrangements for the sale and delivery of carbon credits to compliance and voluntary buyers.

The Advisory business unit combines strategic, commercial, financial and technical expertise accrued over two decades to deliver low carbon energy and sustainable development solutions. Our experience spans emission assessments, carbon management strategies and project delivery, as well as international energy and climate change policy. 

Camco's Investment business collaborates with manufacturers, project developers, technology providers and investor groups to turn innovative ideas into commercially viable and applicable solutions that will make a difference in tackling climate change.

  Chairman's Report 


Camco has had a mixed start to 2009 with the maturing of the carbon portfolio and carbon prices recovering in line with our expectations. The global economic conditions had an impact on our Advisory business leading us to write down the value of this business. 


This year will prove pivotal for global climate change policy and our Policy & Strategy Unit (PSU) has ensured that Camco is actively and effectively engaged in the discussions. Further, we continue to participate in and lead working groups for various industry bodies including the International Emissions Trading Association, the Carbon Markets Investment Association, Project Developer Forum and the Carbon Capture and Storage Association.


The 15th UNFCCC Conference of the Parties (COP15) is due to take place in Copenhagen during December of this year and key participants remain committed to setting a framework for post-Kyoto cooperation. In the US, the Waxman-Markey legislation represents a landmark along the road to a US initiative to curb GHGs. China has continued to take steps towards participating in a global deal with strong statements by senior public officials and encouraging bilateral engagement with the US. In Europe, regulators continue to push for tougher caps and the expansion of existing cap and trade schemes to incorporate additional sectors. Other significant initiatives, such as the UK's Carbon Reduction Commitment (CRC) will provide opportunities right across our business. 


The economic downturn has had an impact on the Company presenting challenges for each of our businesses. Within the Carbon portfolio some industrial projects will produce less emission reductions than first anticipated and financing for other projects has been delayed. However, we are seeing the emergence of a recovery in each of our key operating markets. As our markets recover we emerge stronger and more focussed on the areas of our business that will deliver value to shareholders. Our overall portfolio tonnes have decreased slightly however the projects that we have are of increasingly high quality and command premium prices in the market. Combining our delivery excellence with our strong commercialisation skills, our strategy is to appropriate maximum value for all our shareholders at the right time.


We are beginning to see the benefit of cost control with some major restructuring and cost reduction initiatives now implemented. For example, initiatives within our Advisory business are expected to deliver a further 10% cost reduction in the second half of the year. 


Project investment in the US and China continues to be a focus with a number of attractive investments emerging. Camco is continuing to evaluate these investment opportunities and to work with potential capital partners seeking to deploy capital through our network.  


Throughout the remainder of 2009 we will work hard to return our Advisory business to profitability and our team will continue to drive the carbon portfolio through the carbon development pipeline. 


I would like to thank all shareholders for their support through this period of difficult economic times and turbulent carbon prices. In summary our business remains robust and well placed to benefit from essential efforts to combat climate change.  


David Potter 

Chairman

September 2009



Financial Review


The Company made a net loss after tax of €18.3 million, including a €11.7 million impairment of goodwill arising on the acquisition of ESD Partners Ltd in April 2007. Total revenues for the six months to 30 June 2009 were €5.3 million compared with €8.9 million for the year to 30 June 2009. 


Camco recognises revenue in its Carbon business when projects become CDM Operational. Changes in income are recognised when project risks change or when projects become both registered and operational. Camco anticipates that the majority of its income will come through forward sales of portfolios of carbon credits from CDM operational projectsDuring the first half of 2009 projects comprising 0.8m tonnes of CERs became both registered and operational. There have been no significant forward sales undertaken in the first half of 2009.


The Carbon business generated €1.8 million revenue for the six months to 30 June 2009 with a segment loss of €3.3 millionBoth the quality of the portfolio and the market price for CERs increased during the period providing strong support for future potential forward sales


The Advisory business delivered €3.5 million in external revenues and a segment loss of €1.4 million in trading conditions that remain difficult. 


The Investments business incurred a net loss of €0.5 million with no investments realised during the period


As at 30 June 2009 the Company had a net cash balance of €18.3 million and no material debt. 


On 31 August 2009 the net cash balance remained strong at 18.1 million. 


The Directors consider the Company to be in a strong financial position from which to continue its growth and market development strategy. 



Segment Operational Review as at 30 June 2009 and trading update to 25 September 2009


Carbon 


The period to 30 June 2009 saw Camco's in specie portfolio remain stableThe in specie portfolio has continued to mature with a number of projects progressing through critical stages of the validation process. 


During the period to 30 June 2009 the Company enjoyed ongoing success moving projects through the CDM registration process. From the gross portfolio, 31.0m tonnes achieved first independent verification by 30 June 2009As previously announced, downward revisions to the Russian portfolio of 11.9m tonnes occurred as a result of delays in the issuance of Russian letters of approval (LOAs). 


Further, the economic slowdown, particularly in China, impacted the delivery of CERs in the first half of 2009. Reduced industrial production resulted in lower than anticipated emission reductions and certain projects had financing withdrawn. In 2008 the Company had identified the exposure to a downturn in industrial production and had commenced origination in non-cyclical sectors such as wind and biomass power generation. These efforts resulted in an additional 6.0m tonnes from new projects originated in China for the period to 30 June 2009. 


The period between 30 June 2009 and 25 September 2009 has seen a significant increase in carbon deliveriesDeliveries between 30 June 2009 and 25 September totalled 1.6m tonnes for the gross portfolio and 0.3m tonnes for the in specie portfolio, bringing total deliveries to 8.1m tonnes for the gross portfolio and 0.7m for the in specie portfolio. 


Total verified tonnes continued to expand with 31.0m tonnes of the gross portfolio and 6.0m tonnes from the in specie portfolio now through at least one independent verification. 


In Russia uncertainty around the issuance of Russian Letters of Approval (LOAs) continues to impact the portfolio with further write-downs of up to 1m tonnes possible by 31 December 2009. No new information has emerged regarding the likelihood of Russian LOAs being issued in the near term. 


The deep restructuring of the Carbon business unit, which commenced in January, has created significant operational improvements ranging from improved operational efficiency and information quality to significant cost reductions of 39compared to the prior 6 months. The business unit's management structure has been redesigned to create regional hubs. At the same time, a project management system for monitoring carbon portfolio project progress has been developed and rolled out


Camco continues to pursue a number of initiatives to commercialise the high quality carbon portfolio. 


Table 1 - Summary of Camco's carbon credit portfolio by stage


Progress through stage1

25-Sep-09

30-Jun-09

25-Sep-09

30-Jun-09


PDD Volume3

PDD Volume3

Risked Volume

Risked Volume


(m tonnes)

(m tonnes)

(m tonnes)

(m tonnes)






Contracted

145.0 

145.3

91.6 

92.7

 PDD complete

130.3 

129.8

81.6 

82.2

 Host LoA

115.2 

114.3

70.8 

71.6

 Validated

91.5 

90.3

55.4 

56.6

 Submitted for registration

83.7 

81.7

50.0 

50.9

 Registered

82.5 

80.0

49.3 

49.8

 1st verification2

44.4 

43.8

31.0 

30.9

 Issued 

8.1 

6.5

8.1 

6.5






Financed

119.3 

119.9

80.0 

80.9

Under construction  

   116.8 

 117.6 

   77.8 

 79.0 

Operational

  93.0 

 92.3 

   62.2 

 62.4 


1

CDM stage or equivalent for JI and VER projects

2

Projects that have been through a minimum of one verification process or equivalent

3

Prior to validation or determination, PDD numbers reflect Camco's current anticipated project delivery



Table 2 - Summary of Camco's In specie carbon credit portfolio1


Progress through stage2

25-Sep -09

30-Jun-09

25-Sep -09

30-Jun-09


PDD Volume4

PDD Volume 4

Risked Volume

Risked Volume


(m tonnes)

(m tones)

(m tonnes)

(m tonnes)






Contracted

  51.3 

 51.5 

  30.6 

 30.6 

 PDD complete

  44.4 

 43.7 

  25.6 

 25.2 

 Host LoA

  39.1 

 38.6 

  21.7 

 22.0 

 Validated

  27.3 

 27.7 

  14.3 

 15.7 

 Submitted for registration

  23.9 

 24.2 

  12.0 

 13.3 

 Registered

  23.7 

 23.7 

  11.9 

 13.0 

 1st verification3

  8.7 

 8.7 

  6.0 

 6.0 

 Issued 

    0.7 

 0.5 

   0.7 

 0.5 


1

Camco's in specie portfolio excludes VERs

2

CDM stage or equivalent for JI and VER projects

3

Projects that have been through a minimum of one verification process or equivalent

4

Prior to validation or determination, PDD numbers reflect Camco's current anticipated project delivery


Table 3 - Overview of Camco's carbon credit portfolio by contract type


Contract structure

25-Sep -09

30-Jun-09

25-Sep -09

30-Jun-09


PDD Volume

PDD Volume

Risked Volume

Risked Volume


(m tonnes) 2

(m tonnes)2

(m tonnes)

(m tonnes)






Carbon share

  109.9 

 110.1 

  67.0 

 68.1 

   Held in specie1 

  51.3 

 51.5 

  30.6 

 30.6 

Cash share

  25.9 

 26.6 

  16.9 

 16.8 

VERs

  9.2 

 8.5 

  7.7 

 7.8 


1

Carbon share held in specie refers to the portion of the carbon asset portfolio over which Camco has an interest.

2

Prior to validation or determination of official PDD forecasts, PDD numbers reflect Camco's current anticipated project delivery. 




Table 4 - Additional information on Camco's portfolio



25-Sep -09

30-Jun-09


Risked Volume

Risked Volume


(m tonnes)

(m tonnes)

Contract portfolio breakdown (m tonnes)






CERs

  69.5 

 70.6 

ERUs

  14.4 

 14.4 

VERs

  7.7 

 7.8 

Total

  91.6 

 92.7







25-Sep -09

30-Jun-09


Risked Volume

Risked Volume


(m tonnes)

(m tonnes)

Carbon share in specie (m tonnes)






CERs

  26.0 

 26.0 

ERUs

  4.6 

 4.6 

VERs

  -  

 -  

Total

  30.6 

 30.6 




Camco in specie portfolio and forward sales1






Carbon share

  30.6 

 30.6 

Carbon share sold 

  3.3 

 3.4 




Cash share

  16.9 

 16.8 

Cash share forward sold

  9.8 

 9.9 




VERs

  7.7 

 7.8 

VERs forward sold

  2.6 

 2.6 




Price - in specie portfolio






Average purchase price 

7.80

7.92





1

For a small number of forward sales some percentage of Camco's sale price remains linked to market prices. For example, Camco may receive a percentage of the market price in addition to a guaranteed floor price





Advisory


Camco's Advisory business has been subject to difficult trading conditions in the UK market. These conditions include a reduced volume and increasing price competition across key business areas. The challenging conditions have resulted in gross profit of €2.6 million for the six months and a segment loss of €1.4 million. This performance was significantly below management's expectation.  


The challenging environment has led to a goodwill impairment of €11.7 million (from €12.9 million to €1.2million) arising on the acquisition of ESD Partners Ltd in April 2007.  


The Advisory team continues to win large contracts with high quality clients and retain key accounts. Many of these clients are using Camco for the first time with their need for services driven by recent changes in regulation. For example, Camco has been appointed by British Land PLC, one of the UK's largest real estate investment trusts, to undertake an extensive assessment of the impact of the UK's Carbon Reduction Commitment (CRC) on British Land's business. 


Significant growth has also continued in public sector advisory mandates with Camco leading the development of important policy proposals. A range of initiatives targeting the greening of the existing housing stock were recently announced by the Department of Energy and Climate Change (DECC) including a policy to undertake 'whole house makeovers' for 7 million homes by 2020 including piloting of an important new financing mechanism. Camco, on behalf of the UK Green Building Council, established and coordinated the project that led to this policy initiative. More generally, the public sector is continuing to establish detailed policies and strategies to achieve high level, long-dated carbon reduction targets. Camco expects a number of other sustainable energy and climate change policies will be implemented by government over the next 12 months, including some informed by Camco's advisory work.  


In China, the Advisory business has expanded its range of services and clients. Key projects include providing advisory support to a UK-China clean technology venture and the development of the first carbon labels in China that use the UK PAS2050 standard. The Chinese Advisory team is bringing the Company's energy management services to China, with one new project and several in the pipeline. Camco is well-placed to benefit from the increased focus on energy efficiency as economic conditions continue to improve.


Investments  


The Investment business continues to pursue project and clean technology investment in China and the United States of America.  


The company has signed an agreement to place up to $200 million external funds into China clean technology investments. The exact commercial arrangements are bound by confidentiality.

Current economic conditions have led to a number of attractive project opportunities requiring project finance which the Company is currently developing


Outlook


The Carbon and Investment businesses continue to trade in line with management expectations. Through the remainder of 2009 a number of Carbon projects are expected to pass important hurdles in the regulatory process further reducing the risk of the portfolio Issuances are expected to increase through the second half of 2009 with a number of projects currently undergoing first verifications


For the Advisory business the remainder of 2009 is likely to be challenging with the expectation of an improvement in 2010The Advisory business is expected to continue to be loss making for the remainder of 2009. Significant initiatives are being considered to improve the performance of the business.   


As noted in the trading update on 6 August 2009, in the absence of CDM operational  forward sales this year, the Company anticipates a loss for the period to 31 December 2009.  


The profitability of the Carbon business for the year to 31 December 2009 will be driven if a forward sale of a portfolio of carbon projects is executed. The company has made considerable progress preparing portfolio structures and will only execute if the right terms are met. 





Camco International Limited



Consolidated statement of comprehensive income





for the 6 months to 30 June 2009

 

 

 

 











6 months to

6 months to

12 months to



30 June 2009

30 June 2008

31 December 2008



(unaudited)

(unaudited)

(audited)











Continuing operations

Notes

€'000

€'000

€'000

 

 

 

 

 

Revenue


5,349 

8,936 

41,463 

Cost of sales

 

(1,826)

(4,409)

(16,486)

Gross profit

 

3,523 

4,527 

24,977 

Other income - net gain on disposal of investment

2

14 

3,766 

Other income - negative goodwill arising on acquisition

2

303 

159 

267 

Administration expenses

 

(10,283)

(11,744)

(24,832)

Impairment of goodwill arising on the acquisition of ESD Partners Limited

4

(11,690)

Other expense - net loss on fund establishment costs

 

(1,614)

Results from operating activities

 

(18,147)

(7,044)

2,564 

Finance income


716 

389 

1,070 

Finance expense

 

(765)

(1,499)

(1,408)

(Loss)/profit before income tax

 

(18,196)

(8,154)

2,226 

Income tax expense

 

(55)

(38)

(1,203)

(Loss)/profit for the period

 

(18,251)

(8,192)

1,023 



 



Other comprehensive income


 



 

 

 

 

 

Exchange differences on translation of foreign operations

 

457 

(225)

(741)

Total comprehensive income for the period

 

(17,794)

(8,417)

282 



 





 



(Loss)/profit for the period attributable to:

 

 

 

 

Equity shareholders of the Company


(18,286)

(8,207)

1,134

 Minority shareholders

 

35

15

(111)

(Loss)/profit for the period

 

(18,251)

(8,192)

1,023

 

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

 

Equity shareholders of the Company


(17,829)

(8,432)

393

 Minority shareholders

 

35

15

(111)

Total comprehensive income for the period

 

(17,794)

(8,417)

282

 

 

 

 

 



 



Basic and diluted (loss)/profit per share in € cents

 

 

 

 

Basic

3

(10.84)

(4.99)

0.62 

Diluted

3

(10.84)

(4.99)

0.60 












  



          Camco International Limited



Consolidated statement of financial position

as at 30 June 2009

 

 

 

 



30 June

30 June

31 December



2009

2008

2008



(unaudited)

(unaudited)

(audited)












Notes

€'000

€'000

€'000

 

 

 

 

 

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

1,090 

2,100 

1,282 

Goodwill on acquisition

4

2,459 

14,572 

14,120 

Other intangible assets

4

5,043 

2,177 

1,794 

Other investments

 

233 

270 

209 

Deferred tax assets

 

334 

414 

292 

Total non-current assets

 

9,159 

19,533 

17,697 

Current assets


 



Work in progress - carbon development contracts

 

8,722 

14,380 

8,490 

Prepayments and accrued income

 

28,339 

5,097 

28,545 

Trade and other receivables

 

4,589 

4,078 

5,529 

Cash and cash equivalents

 

18,578 

10,042 

27,064 

Assets classified as held for sale

 

8,415 

Total current assets

 

60,228 

42,012 

69,628 

Total assets

 

69,387 

61,545 

87,325 

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Current tax liability

 

(1,388)

(934)

(1,413)

Trade and other payables

 

(24,631)

(5,453)

(23,767)

Loans and borrowing


(771)

(1,421)

(1,426)

Deferred consideration

 

(93)

(1,671)

(702)

Liabilities classified as held for sale

 

(614)

Total current liabilities

 

(26,883)

(10,093)

(27,308)

Non-current liabilities

 

 

 

 

Loans and borrowing

 

(207)

(75)

Deferred tax liabilities

 

(268)

(362)

(315)

Deferred consideration

 

(180)

(48)

Total non-current liabilities

 

(268)

(749)

(438)

Total liabilities

 

(27,151)

(10,842)

(27,746)

Net assets

 

42,236 

50,703 

59,579 



 



Equity


 



Share capital

 

1,730 

1,675 

1,675 

Share premium

 

72,277 

71,619 

71,619 

Share-based payment reserve

 

1,886 

2,496 

2,751 

Retained earnings

 

(33,258)

(24,313)

(14,972)

Translation reserve

 

31 

90 

(426)

Own shares

 

(567)

(1,170)

(1,170)

Minority interest

 

137 

306 

102 

Total equity

 

42,236 

50,703 

59,579 








Camco International Limited




Consolidated statement of cash flows





for the 6 months to 30 June 2009

 

 

 

 








Continuing operations



6 months to

6 months to

12 months to



30 June 2009

30 June 2008

31 December 2008








(unaudited)

(unaudited)

(audited)







Notes

€'000

€'000

€'000

 

 

 

 

 

Cash flow from operating activities


 



Revenue, payments on account and deferred income received

 

5,448 

9,688 

30,539 

Cash paid to suppliers

 

(7,303)

(13,579)

(20,664)

Cash paid to employees


(5,640)

(5,591)

(13,257)

Interest received

 

98 

394 

935 

Interest paid

 

(11)

(55)

(83)

Income tax paid

 

(155)

(45)

(790)

Net cash flow from operating activities

 

(7,564)

(9,188)

(3,320)



 



Cash flow from investing activities


 



Net cash on disposal of investment

 

11,182 

Payment for acquisition of subsidiaries

 

(27)

(348)

Net cash/(overdraft) acquired with subsidiaries

 

55 

55 

Settlement of deferred consideration

 

(163)

(127)

Payment for purchase of property, plant and equipment

 

(69)

(807)

(621)

Net cash flow from investing activities

 

(232)

(906)

10,268 

 

 

 

 

 

Cash flow used in financing activities

 

 

 

 

Proceeds from issuance of shares

 

15 

Payment of finance lease liabilities


(130)

(97)

(242)

Repayment of loans and borrowings

 

(10)

(163)

Net cash flow from financing activities

 

(125)

(97)

(405)

Change in cash and cash equivalents

 

(7,921)

(10,191)

6,543 

Opening cash and cash equivalents

 

26,155 

19,613 

19,613 

Effect of exchange rate fluctuations

 

26 

(572)

(1)

Closing cash and cash equivalents

 

18,260 

8,850 

26,155 







  


Camco International Limited



Notes to the interim financial report





Significant accounting policies























Camco International Limited (the 'Company') is a public company incorporated in Jersey under Companies (Jersey) Law 1991. The address of its registered office is Channel House, Green Street, St Helier, Jersey JE2 4UH. The consolidated interim financial report of the Company for the period from 1 January 2009 to 30 June 2009 comprises the Company and its subsidiaries (together the 'Group').









Basis of preparation







The annual financial statements of the group for the year ended 31 December 2008 have been prepared in accordance with IFRSs as adopted by the EU ('Adopted IFRSs'). The interim set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU. The interim set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 December 2008. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2008.









This interim financial information has been prepared on the historical cost basis. The accounting policies applied are consistent with those adopted and disclosed in the annual financial statements for the period ended 31 December 2008. The accounting polices have been consistently applied across all Group entities for the purpose of producing this interim financial report.









The financial information included in this document does not comprise statutory accounts within the meaning of Companies (Jersey) Law 1991. The comparative figures for the financial year ended 31 December 2008 are not the company's statutory accounts for that financial year within the meaning of Companies (Jersey) Law 1991. Those accounts have been reported on by the company's auditors and delivered to the Jersey Financial Services Commission. The report of the auditors was unqualified.









Estimates







The preparation of the interim financial report in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.









The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.


  

Camco International Limited

Notes to the interim financial report (continued)


1 Segmental reporting

Segment information is presented in respect of the Group's business segments. These business segments are based on the Group's management and internal Reporting structure.  


Business Segments

The Group comprises of the following main business segments:

  • Advisory: The Advisory practice provides clients with low carbon energy and sustainable development solutions

  • Investments: The Investments business invests capital for the Group or external investors in clean technology companies and projects that have a Strategic impact on creating a low carbon society

  • Carbon: The Carbon business undertakes carbon asset development, commercialisation and portfolio management 







Business Segments

Carbon

Advisory

Investments

Eliminations

Total


6 months to

6 months to

6 months to

6 months to

6 months to


30 June 2009

30 June 2009

30 June 2009

30 June 2009

30 June 2009


(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)







 

€'000

€'000

€'000

€'000

€'000

External revenues

1,789

3,498

62

-

5,349

Inter-segment revenue

-

404

-

(404)

-

Total segment revenue

1,789

3,902

62

(404)

5,349

Segment gross profit

888

2,583

52

-

3,523

Segment result

(3,305)

(1,426)

(510)

-

(5,241)

Unallocated expenses

 

 

 

 

(1,364)

Other income - negative goodwill arising on acquisition

 

 

 

 

303

Share-based payments

 

 

 

 

(155)

Impairment of goodwill arising on the acquisition of ESD Partners Limited

 

 

 

 

(11,690)

Results from operating activities

 

 

 

 

(18,147)

Net finance expense

 

 

 

 

(49)

Taxation

 

 

 

 

(55)

Loss for the period

 

 

 

 

(18,251)








Carbon

Advisory

Investments

Eliminations

Total


6 months to

6 months to

6 months to

6 months to

6 months to


30 June 2008

30 June 2008

30 June 2008

30 June 2008

30 June 2008







 

€'000

€'000

€'000

€'000

€'000

External revenues

3,689

5,133

114

-

8,936

Inter-segment revenue

-

259

-

(259)

-

Total segment revenue

3,689

5,392

114

(259)

8,936

Segment gross margin

750

3,916

(139)

-

4,527

Segment result

(2,687)

338

(579)

-

(2,928)

Unallocated expenses

 

 

 

 

(3,829)

Other operating income





173

Share-based payments

 

 

 

 

(460)

Results from operating activities

 

 

 

 

(7,044)

Net finance income 

 

 

 

 

(1,110)

Taxation

 

 

 

 

(38)

Loss for the period

 

 

 

 

(8,192)



Carbon

Advisory

Investments

Eliminations

Total


12 months to

12 months to

12 months to

12 months to

12 months to


31 December 2008

31 December 2008

31 December 2008

31 December 2008

31 December 2008







 

€'000

€'000

€'000

€'000

€'000

External revenues

31,340

8,027

2,096

-

41,463

Inter-segment revenue

-

809

-

(809)

-

Total segment revenue

31,340

8,836

2,096

(809)

41,463

Segment gross margin

17,372

7,389

1,025

(809)

24,977

Segment result

7,884

(437)

1,279

-

8,726

Unallocated expenses

 

 

 

 

(5,487)

Other operating income





-

Share-based payments

 

 

 

 

(675)

Results from operating activities

 

 

 

 

2,564

Net finance expense

 

 

 

 

(338)

Taxation





(1,203)

Loss for the period

 

 

 

 

1,023



Camco International Limited

Notes to the interim financial report (continued)



2 Other operating income




30 June

30 June

31 December




2009

2008

2008




(unaudited)

(unaudited)

(audited)







 

 

 

€'000

€'000

€'000

Negative goodwill arising on acquisition - MCF Finance and Consulting Co. Ltd

303

159

267

Net gain on disposal of investment

 

-

14

3,766

 

 

 

303

173

4,033

During the period negative goodwill arose on a business combination.







3 (Loss)/profit per share




30 June

30 June

31 December

(Loss)/profit per share attributable to equity holders of the Company is calculated as follows.


2009

2008

2008




(unaudited)

(unaudited)

(audited)







 

 

 

€ cents
per share

€ cents
per share

€ cents
per share

Basic (loss)/profit per share

 

(10.84)

(4.99)

0.62

Diluted (loss)/profit per share

 

(10.84)

(4.99)

0.60







 

 

 

 

 

 

(Loss)/profit used in calculation of basic and diluted (loss)/profit per share - no dilutive effects (€'000)

(18,251)

(8,192)

1,023 

Weighted average number of shares used in calculation - basic

 

168,353,359

164,521,670

165,314,890 

Weighted average number of shares used in calculation - diluted

 

 

168,353,359

164,521,670

171,061,611 







Weighted average number of shares used in calculation - basic

Company

Company

Company







 

 

 

Number

Number

Number

Number in issue at 1 January 2009 & 2008

 

167,509,965 

166,151,068 

166,151,068 

Effect of own shares held

 

 

(3,032,592)

(3,470,476)

(3,470,476)

Effect of share options exercised

 

 

777,827 

1,841,078 

1,750,027 

Effect of shares issued in the period

 

 

3,098,159 

884,271 

Weighted average number of basic shares at the end of the periods

168,353,359 

164,521,670 

165,314,890 







Weighted average number of shares used in calculation - diluted

Company

Company

Company







 

 

 

Number

Number

Number

Number in issue at 1 January 2009 & 2008

 

167,509,965 

166,151,068 

166,151,068 

Effect of own shares held

 

 

(3,032,592)

(3,470,476)

(3,470,476)

Effect of share options exercised

 

 

777,827 

1,841,078 

1,750,027 

Effect of shares issued in the period

 

 

3,098,159 

884,271 

Dilutive effect of share options granted

 

 

3,016,810 

Dilutive effect of deferred consideration expected to settle in shares

2,729,911 

Weighted average number of diluted shares at the end of the periods

168,353,359 

164,521,670 

171,061,611 







4 Goodwill on acquisition and other intangible assets

 

 









Goodwill on acquisition

Other intangible assets

CERs held in specie

Total







 

 

€'000

€'000

€'000

€'000

Cost at 31 December 2008

 

14,120 

2,520 

16,640 

Additions

 

105 

3,220 

3,325 

Revision to original purchase consideration

29 

29 

Foreign exchange movement

92 

92 

Cost at 30 June 2009

 

14,149 

2,717 

3,220 

20,086 

Impairment & amortisation at 31 December 2008

(726)

(726)

Impairment of goodwill arising on the acquisition of ESD Partners Limited

(11,690)

(11,690)

Amortisation charge

 

(168)

(168)

Impairment & amortisation at 30 June 2009

(11,690)

(894)

(12,584)

Net book value at 31 December 2008

14,120 

1,794 

15,914 

Net book value at 30 June 2009

   2,459 

1,823 

3,220 

7,502 



Camco International Limited


Consolidated statement of changes in equity

for the 6 months to 30 June 2009

 







 

Group

Group

Group

Group

Group

Group

Group

Group

Group

for the 6 months to 30 June 2009

2009

2009

2009

2009

2009

2009

2009

2009

2009

Interim financial report

Share capital

Share premium

Share-based payment reserve

Retained earnings

Translation reserve

Own shares

Total equity attributable to shareholders of the Company

Minority interest

Total equity

 

€'000

€'000

€'000

€'000

€'000

€'000

€'000

 

€'000

Balance at 1 January 2009

1,675 

71,619 

2,751 

(14,972)

(426)

(1,170)

59,477 

102 

59,579 

Total recognised income and expense

  -  

(18,286)

457 

  -  

(17,829)

35 

(17,794)

Share-based payments

155 

  -  

  -  

  -  

155 

  -  

155 

Issuance of shares

55 

658 

(417)

  -  

  -  

  -  

296 

  -  

296 

Own shares

(603)

  -  

  -  

603 

  -  

  -  

  -  

Acquisition of minority interest

  -  

  -  

  -  

  -  

  -  

  -  

  -  

Balance at 30 June 2009

1,730 

72,277 

1,886 

(33,258)

31 

(567)

42,099 

137 

42,236 









































 

Group

Group

Group

Group

Group

Group

Group

Group

Group

for the 6 months to 30 June 2008

2008

2008

2008

2008

2008

2008

2008

2008

2008


Share capital

Share premium

Share-based payment reserve

Retained earnings

Translation reserve

Own shares

Total equity attributable to shareholders of the Company

Minority interest

Total equity

 

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Balance at 1 January 2008

1,662 

70,997 

2,567 

(16,106)

315 

(1,271)

58,164 

71 

58,235 

Total recognised income and expense

  -  

(8,207)

(225)

  -  

(8,432)

15 

(8,417)

Share-based payments

460 

  -  

  -  

  -  

460 

  -  

460 

Issuance of shares

13 

622 

(451)

  -  

  -  

  -  

184 

  -  

184 

Costs incurred in the raising of capital

  -  

  -  

  -  

  -  

  -  

  -  

  -  

Own shares

(80)

  -  

  -  

101 

21 

  -  

21 

Acquisition of minority interest

  -  

  -  

  -  

  -  

  -  

220 

220 

Balance at 30 June 2008

1,675 

71,619 

2,496 

(24,313)

90 

(1,170)

50,397 

306 

50,703 









































 

Group

Group

Group

Group

Group

Group

Group

Group

Group

for the year ended 31 December 2008

2008

2008

2008

2008

2008

2008

2008

2008

2008


Share capital

Share premium

Share-based payment reserve

Retained earnings

Translation reserve

Own shares

Total equity attributable to shareholders of the Company

Minority interest

Total equity

 

€'000

€'000

€'000

€'000

€'000

€'000

€'000

 

€'000

Balance at 1 January 2008

1,662 

70,997 

2,567 

(16,106)

315 

(1,271)

58,164 

71 

58,235 

Total recognised income and expense

  -  

1,134 

(741)

  -  

393 

(111)

282 

Share-based payments

675 

  -  

  -  

  -  

675 

  -  

675 

Issuance of shares

13 

622 

(390)

  -  

  -  

  -  

245 

  -  

245 

Own shares

(101)

  -  

  -  

101 

  -  

  -  

  -  

Acquisition of minority interest

  -  

  -  

  -  

  -  

  -  

142 

142 

Balance at 31 December 2008

1,675 

71,619 

2,751 

(14,972)

(426)

(1,170)

59,477 

102 

59,579 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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