Information  X 
Enter a valid email address

Novera Energy Ltd (NVE)

  Print      Mail a friend

Tuesday 19 September, 2006

Novera Energy Ltd

Interim Results

Novera Energy Ltd
19 September 2006

19 September 2006

                             Novera Energy Limited

             INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006

Novera Energy Limited ('Novera' or 'the Company') (AIM: NVE) is a leading
independent UK renewable energy producer. Novera has a portfolio of landfill
gas, waste and wind assets and projects.

OPERATIONAL HIGHLIGHTS

•    NMRE generation in the first half of 2006 increased by 17% to 295GWh.

•    Mynydd Clogau wind farm (15MW) commissioned ahead of schedule.

•    Planning permission for 10MW East London Sustainable Energy Facility
     ('ELSEF') granted September 2006.

•    Good progress towards five year goal of developing greenfield wind
     portfolio of 250MW.

•    Planning application for next wind farm (24MW) submitted July 2006.
     Further wind farms totalling 70MW expected into planning by the end of 
     2007.

FINANCIAL HIGHLIGHTS

•    Revenue increased 31% to £8.9 million on a proportionately consolidated 
     basis (refer Note 5).

•    Increased investment in development from £0.2 million to £1.4 million, all 
     expensed in the period.

•    Proportionately consolidated EBITDA (refer Note 5) unchanged at £1.9
     million (2005: £1.9 million after removal of gain on sale of wind farm of 
     £0.9 million).

•    Strong balance sheet with £2.0 million cash in bank and no debt at 
     30 June 2006.

•    Current cash in bank of £3.2 million after receiving £1.2 million for 
     1H 2006 distribution and £1.1 million on sale of German wind farms.



Commenting on the results, John Brown, Chairman said:

'Novera continues to make good progress in each of its three divisions: landfill
gas, waste and water, and wind.  I particularly welcome last week's planning
consent for the ELSEF project. We see significant opportunities to build on our
position as a leading independent developer and owner of UK renewable energy
assets. With our sound financial footing I am confident that we will make
further significant progress in the second half of the year.'



For further information:

Novera Energy Limited                            Hudson Sandler
David Fitzsimmons, Chief Executive Officer       Nick Lyon
Rory Quinlan, Chief Financial Officer            James White / Amy Faulconbridge
Tel:  +44 20 7845 9720                           Tel: +44 20 7796 4133




Notes to editors:

Novera Energy Limited ('Novera' or 'the Company') (AIM: NVE) is a leading
independent UK renewable energy producer. Novera has a portfolio of landfill
gas, waste and wind assets and projects.

Landfill Gas

Novera is the joint owner of Novera Macquarie Renewable Energy (NMRE), one of
the largest renewable energy portfolios in the UK.  NMRE owns and operates
mature, proven and low risk renewable energy generating assets, comprised
predominantly of landfill gas.

Waste and Water

Planning permission for Novera's East London Sustainable Energy Facility 
('ELSEF') was granted on September 14th 2006.

The plant, which will be located at Ford's site at Dagenham, will when fully
operational generate 10MW of renewable electricity, enough to power 14,000
homes. The fuel will be derived from household waste after recycling and will be
supplied by Shanks from their East London Material Recycling Facility in
Dagenham. The electricity produced will be sold directly to Ford. Construction
of ELSEF is due to commence mid 2007, with the plant expected to be fully
operational mid 2009.

Novera has the exclusive UK licence for the gasification system, developed in
Canada and supplied by Enerkem Technologies.

The EU Landfill Directive came into force in 2001. By 2020 30 million tonnes per
annum will be required to be diverted from landfill (assuming a growth rate of
1.5%). Up to 15 million tonnes will need to be processed at non landfill sites
in addition to 15 million tonnes of recycling. Potentially this could generate 5
million tonnes of fuel per annum, enough for up to 50 plants like ELSEF.

Wind

Novera has a five year goal of having 250MW in operation from greenfield
development.

The Mynydd Clogau wind farm (15MW) came into operation in March. Novera's
following wind farm (24MW) went into planning in July. Further wind farms (70MW)
expected into planning by the end of 2007.

Beyond that Novera is selectively maturing its portfolio of potential sites to
provide the next round of development.



                              Chairman's Statement

I am pleased to report on the activities of Novera for the six months ended 30
June 2006.

Financial Performance

Revenue increased 31% to £8.9 million on a proportionately consolidated basis
(refer Note 5). This increase was primarily due to capacity growth and increased
output at NMRE, with Novera's 50% share of NMRE revenue increasing to £7.8
million from £6.0 million. Novera's revenue from 100% owned operations increased
to £1.1 million from £0.8 million.

In the six months to 30 June 2006 Novera recorded a loss of £1.2 million,
compared to a profit of £0.3 million in the same period last year. This reflects
an increased investment in development projects from £0.2 million to £1.4
million. The 2005 result also benefited from the gain on sale of a wind farm of
£0.9 million. Our NMRE joint venture has been profitable in the six months.
Novera's 50% share of NMRE profit was £0.3 million, compared to a loss of £0.1
million in 2005.

At 30 June 2006 Novera had a strong balance sheet with £2.0 million cash in bank
and no debt. Our current cash position is £3.2 million after the receipt of the
1H 06 dividend of £1.2 million and a return of capital from NMRE upon the sale
of the German wind farms of £1.1 million. The receipt of DEFRA cash for our
ELSEF project is weighted to the second half of the year which will improve our
cash flow in the next six months.

Operational Review

Novera is a leading independent UK renewable energy group. Novera has a
portfolio of landfill gas, waste and wind assets and projects.

Landfill Gas

Novera's 50% owned joint venture, NMRE, owns and operates mature and proven
renewable energy generating assets mainly from landfill gas, with some small
hydro and wind power.

NMRE's operating performance for the six months to 30 June 2006 improved against
the corresponding period of 2005, largely due to the increase in generation
capacity from 122MW to 128MW.  Novera's 50% share of NMRE EBITDA increased by
42% to £3.4 million.

In March 2006 NMRE's Mynydd Clogau wind farm (15MW) was commissioned, generating
revenue ahead of schedule. NMRE sold its German wind farms (9MW) in May 2006.

Waste and Water

Novera has made significant progress on its 10MW East London Sustainable Energy
Facility ('ELSEF').  Planning permission for the plant, which will be located at
Ford's site at Dagenham, was granted on September 14th by the London Thames
Gateway Development Corporation. This is an important milestone for Novera.

ELSEF when fully operational will generate 10MW of renewable electricity, enough
to power 14,000 homes.  The fuel will be derived from household waste after
recycling and will be supplied by Shanks from their East London Material
Recycling Facility in Dagenham. The electricity produced will be sold directly
to Ford. Construction of ELSEF is due to commence mid 2007, with the plant
expected to be fully operational mid 2009.

The UK is facing a major challenge to comply with the EU Landfill Directive and
will be required to divert 30 million tonnes a year of household waste away from
landfill by 2020. This challenging target provides scope for up to 50 ELSEF size
plants across the UK, representing over £2 billion in capital.

Novera has invested £0.7 million in its waste and water division in the six
months. Much of this will be covered by income from our DEFRA services contract.

Wind

Novera strengthened its wind team and has made tangible progress towards its
five year goal of having 250MW in operation from greenfield development.

A planning application for our next wind farm (24MW) was submitted in July 2006.
We expect to put further wind farms (70MW) into planning by the end of 2007.
Beyond that we are working on a further portfolio of 30 sites sufficient to
deliver a total of 250MW.

We invested £0.6 million in our wind division in the first six months of 2006,
which has been expensed.

Outlook

The Government concluded its review of energy policy in July 2006. Novera is
pleased that renewable energy remains one of the key planks of energy policy
moving forward in the UK. The increase in the target from 15% to 20% is very
welcome, allowing the industry to keep investment horizons well into the future.

Our strong existing operational base, together with our strengthened development
pipeline and team gives us the potential for significant growth in this exciting
sector.

John Brown
Chairman


Novera Energy Limited
Consolidated Income Statement for the six months ended 30 June 2006

                                                                         Unaudited           Unaudited         Audited
                                                                        Six months          Six months           Year
                                                                            to                  to                to
                                                     Notes               30-Jun-06           30-Jun-05        31-Dec-05
                                                                             £'000               £'000            £'000

Revenue                                                                     1,092                 847            1,788
Cost of sales                                                                (946)               (719)          (1,516)
Gross Profit                                                                  146                 128              272

Other income                                             2                    786               1,383            1,894

Development costs                                                          (1,412)               (230)          (1,513)

Relocation costs                                                             (125)                  -             (247)
Other administrative expenses                                                (936)               (909)          (1,607)
Administrative expenses                                                    (1,061)               (909)          (1,854)

Operating (loss) / profit                                                  (1,541)                372           (1,201)

Interest receivable                                                            47                  21              126
Share of net profit / (loss) of a joint venture          6                    291                (138)          (1,373)
entity accounted for using the equity method

(Loss) / profit before income tax                                          (1,203)                255           (2,448)

Taxation                                                                         -                   -                -

(Loss) / profit attributable to equity shareholders                        (1,203)                255           (2,448)

Earnings per share for (loss) / profit attributable
to equity shareholders
                                                                                p                   p                p
Basic (loss) / earnings per share                                            (2.2)                0.6             (4.5)
Diluted (loss) / earnings per share                                          (2.2)                0.6             (4.5)




Novera Energy Limited
Consolidated Balance Sheet
As at 30 June 2006

                                                                        Unaudited          Unaudited           Audited
                                                                        30-Jun-06           30-Jun-05         31-Dec-05
                                                                            £'000               £'000             £'000
ASSETS
Non-current assets
Property, plant & equipment                                                   79                  70                87
Investments accounted for using the equity method                         16,456                                16,607
                                                                                              17,195
Receivables                                                                  735                 854               861
Total non-current assets                                                  17,270              18,119            17,555

Current assets
Trade and other receivables                                                1,612               1,410             1,056
Cash and cash equivalents                                                  1,966               5,985             3,865
Total current assets                                                       3,578               7,395             4,921

Total assets                                                              20,848              25,514            22,476

LIABILITIES
Current liabilities
Trade and other payables                                                     954               1,216             1,371
Deferred revenue                                                             154                 154               154
Provisions                                                                    60                 124                22
Total current liabilities                                                  1,168               1,494             1,547

Non-current liabilities
Deferred revenue                                                           2,681               3,112             2,776
Total non-current liabilities                                              2,681               3,112             2,776

Total liabilities                                                          3,849               4,606             4,323

Net assets                                                                16,999              20,908            18,153

EQUITY
Contributed equity                                                        32,243              32,526            32,211
Other reserves                                                                31                  14                14
Accumulated losses                                                       (15,275)            (11,632)          (14,072)

Total equity                                                              16,999              20,908            18,153



Novera Energy Limited
Consolidated Statement of Changes in Equity
As at 30 June 2006
                                                                         Unaudited           Unaudited         Audited
                                                                        Six months          Six months           Year
                                                                            to                  to                to
                                                                         30-Jun-06           30-Jun-05        31-Dec-05
                                                                             £'000               £'000            £'000

Total equity at the beginning of the period                                18,153              13,959           13,959

Exchange differences on translation of foreign operations                       -                                    -
                                                                                                   52
Employee share options                                                         17                  14               14
Net income recognised directly in equity                                       17                  66               14

(Loss) / Profit for the current year                                       (1,203)                255           (2,448)

Total recognised income and expense for the period                         (1,186)                321           (2,434)

Transactions with equity holders in their capacity as equity
holders:
Contributions of equity, net of transaction costs                              32               6,628            6,628  
              
Total equity at the end of the period                                       16,999             20,908           18,153

Total recognised income and expense for the period is
attributable to:
Novera Energy Limited                                                      (1,186)                321           (2,434)



Novera Energy Limited
Consolidated Cash Flow Statement
For the six months ended 30 June 2006

                                                                          Unaudited           Unaudited         Audited
                                                                         Six months          Six months           Year
                                                                             to                  to                to
                                                                         30-Jun-06           30-Jun-05        31-Dec-05
                                                      Notes                  £'000               £'000            £'000
Cash flows from operating activities
Receipts from customers (inclusive of VAT)                                  1,365                 717            2,096
Payments to suppliers and employees (inclusive of                          (2,029)             (1,167)          (3,020)
VAT)
                                                                             (664)               (450)            (924)
Interest received                                                              47                  21              127
Development costs                                                          (1,412)               (124)          (1,331)
Net cash outflow from operating activities                   4             (2,029)               (553)          (2,128)

Cash flows from investing activities
Payments for property, plant and equipment                                    (19)                (29)             (96)
Payments to increase the investment in NMRE                                     -              (1,355)          (3,136)
Payment for vending of business                                              (300)               (274)               -
Proceeds from vending of assets                                                 -                   2              181
Dividend received from joint venture                                          442                   -            1,220
Transaction costs of Mynydd Clogau                                              -                   -             (360)
Repayments / advances of borrowings - related                                 (25)                213              234
parties
Net cash inflow / (outflow) from investing                                     98              (1,443)          (1,957)
activities

Cash flows from financing activities
Proceeds from issues of shares and other equity                                32               6,647            6,628
securities converted to equity-net of transaction
costs
Net cash inflow from financing activities                                      32               6,647            6,628

Net (decrease) / increase in cash and cash                                 (1,899)              4,651            2,543
equivalents
Cash at the beginning of the period                                         3,865               1,156            1,156
Effects of exchange rate changes on cash                                        -                 178              166
Cash at the end of period                                                   1,966               5,985            3,865

Reconciliation of cash balances
Cash at bank                                                                1,966               5,985            3,865





Novera Energy Limited

Notes to the interim accounts for the six months ended 30 June 2006

1. Basis of Preparation

The interim financial information has been prepared using the accounting polices set out in the Company's statutory
financial statements for the year ended 31 December 2005. The interim financial information for the periods ended 30
June 2006 and 2005 is unaudited. The 31 December 2005 numbers have been extracted from the audited accounts except for
the representation of £671k of advisory fees between revenue and other income, £126k separately disclosed as interest
receivable and £130k between administration expenses and cost of sales.

In the opinion of directors the financial information for this period presents fairly the financial position, results
of operations and cash flows for the period in conformity with Australian International Financial Reporting Standards
(AIFRS) consistently applied. The interim report for the six months ended 30 June 2006 was approved by the directors on
12 September 2006.

2. Other Income

                                                                          30-Jun-06          30-Jun-05        31-Dec-05

Advisory Fees                                                                  657                240              671
Release of deferred income                                                      77                 83              161
Net proceeds from sale of Mynydd Clogau wind farm                                -                937              937
Other                                                                           52                123              125
                                                                               786              1,383            1,894
3. Dividends

There were no dividends provided or paid during the six months.

4. Reconciliation of (loss) / profit from ordinary activities after income tax
to net cash flow

                                                                             30-Jun-06       30-Jun-05       31-Dec-05

(Loss) / Profit from ordinary activities after income tax                  (1,203)             255             (2,448)
Share of (profits) / losses from JV not received as                          (291)             138              1,373
distributions
Depreciation                                                                   28               12                 29
Completion payment                                                             25                -                  -
Release of WRG discounted income                                              (52)             (52)              (123)
Release of deferred revenue                                                   (77)             (77)              (161)
Foreign exchange gain                                                           3              149                116
Gain on sale of Mynyyd Clogau wind farm                                         -             (937)              (937)
(Increase) in trade & other receivables                                      (420)            (354)              (345)
(Decrease) / increase in trade & other payables                               (99)             210                365
Increase / (decrease) in provision for annual leave                            39               89                (11)
Decrease in options reserve                                                    18               14                 14
Cash outflow from operating activities                                     (2,029)            (553)            (2,128)


5. Pro-forma of Novera and NMRE proportionately consolidated Income Statement

In the Primary Statement on page 5 the results have been presented in accordance
with AIFRS which is to equity account for our 50% interest in NMRE. Given the
significance of Novera's investment in its 50% joint venture NMRE, the Income
Statement of Novera and NMRE prepared on a proforma proportionately consolidated
basis is set out below as additional information for shareholders. Depreciation
and amortisation of intangibles have been disclosed separately to show EBITDA
and EBITA.


                                                                          Unaudited         Unaudited        Unaudited
                                                                           30-Jun-06        30-Jun-05        31-Dec-05
                                                                               £'000            £'000            £'000
                                                                                               

Revenue                                                                       8,880            6,809           14,257
Cost of sales                                                                (4,961)          (3,767)          (8,399)
                                                                                               

Gross Profit                                                                  3,919            3,042            5,858

Other income                                                                    786            1,383            1,894

Development costs                                                            (1,412)            (230)          (1,513)

Restructuring / relocation costs                                               (125)            (230)            (657)
Other administrative expenses                                                (1,245)          (1,210)          (2,348)
Administrative Expenses                                                      (1,370)          (1,440)          (3,005)

EBITDA                                                                        1,923            2,755            3,234

Depreciation                                                                 (1,357)          (1,200)          (2,506)

EBITA                                                                           566            1,555              728

Amortisation of intangible                                                     (616)            (500)            (993)

Operating (Loss) /  Profit                                                      (50)           1,055             (265)

Interest payable and similar charges                                         (1,509)          (1,272)          (2,578)
Interest receivable                                                             177              204              418
Share of post tax profits / (losses) from joint ventures                          -                3              (23)

Gain on sale of business                                                        179                 -               -

Loss before tax                                                              (1,203)             (10)          (2,448)

Tax credit                                                                        -              265                -

(Loss) / Profit for the period                                               (1,203)             255           (2,448)



6. Investment in Novera Macquarie Renewable Energy Joint Venture

A breakdown of Novera's 50% holding and the financial performance and financial
position of NMRE are disclosed below:


                                                                          Unaudited       Unaudited         Audited
NMRE Income Statement                                              Novera's 50% share    Novera's 50%     Novera's 50%
                                                                                              share            share
                                                                           30-Jun-06        30-Jun-05        31-Dec-05
                                                                               £'000            £'000            £'000

Revenue                                                                       7,787            5,963           12,469
Cost of sales                                                                (4,015)          (3,049)          (6,883)
Gross Profit                                                                   3,772            2,914            5,586

Restructuring cost of business acquisition                                        -             (231)            (410)
Other administrative expenses                                                  (336)            (311)            (770)
Administrative Expenses                                                        (336)            (542)          (1,180)

EBITDA                                                                         3,436            2,372            4,406

Depreciation                                                                 (1,329)          (1,188)          (2,477)

EBITA                                                                         2,107            1,184            1,929

Amortisation of intangible                                                     (616)            (500)            (993)

Operating Profit                                                               1,491              684              936

Interest payable and similar charges                                         (1,509)          (1,272)          (2,577)
Interest receivable                                                             130              183              290
Share of post tax profits / (losses) from joint ventures                          -                3              (22)
Gain on sale of business                                                        179                -                -

Profit / (Loss) before tax                                                       291            (402)          (1,373)

Tax expense                                                                       -              264                -

Profit / (Loss) for the period                                                   291            (138)          (1,373)



                                                                           Unaudited         Unaudited        Unaudited
NMRE Balance Sheet                                                   Novera's 50% share    Novera's 50%     Novera's 50%
                                                                                               share           share
                                                                           30-Jun-06        30-Jun-05        31-Dec-05
                                                                               £'000            £'000            £'000
ASSETS

Non-current assets
Property, plant and equipment                                                36,393           33,907           38,370   
                                                                             
Intangible assets                                                            22,065           18,558           22,956
Investment in JV                                                                189              215              189
Total non-current assets                                                     58,647           52,680           61,515


Current assets
Cash and cash equivalents                                                     7,642            6,627            8,326
Receivables                                                                   3,717            3,998            4,223
Total current assets                                                         11,359           10,625           12,549

Total assets                                                                 70,006           63,305           74,064

LIABILITIES


Current liabilities
Financial liabilities                                                         2,103              917            3,497
Trade and other payables                                                      4,563            4,552            6,032
Total current liabilities                                                     6,666            5,469            9,529

Non-current liabilities
Financial liabilities                                                        45,023           39,896           47,344
Provisions for liabilities and charges                                        1,871            1,744            1,871
Total non-current liabilities                                                46,894           41,640           49,215

Total liabilities                                                            53,560           47,109           58,744

Net assets                                                                   16,446           16,196           15,320

CAPITAL AND RESERVES
Contributed equity                                                           19,380           17,506           19,380
Other reserves                                                                   98             (868)          (1,180)
Accumulated Losses                                                           (3,032)            (442)          (2,880)
Total Equity                                                                 16,446           16,196           15,320







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