REACT Energy makes significant progress at interim results

March 25, 2014
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REACT Energy plc (AIM:REAC), the energy infrastructure developer and operator which focuses on the production of clean energy in the UK and Ireland, announces its unaudited interim results for the six months ended 31 December 2013.

Operational Highlights

  • Significant progress made in bringing the 12MW Enfield Biomass CHP project towards financial close and commencement of construction anticipated during second half of 2014. Assisted the Foresight Group in acquiring the site on which the project is located on behalf of a fund managed by the Foresight Group and signed a new lease for the project
  • Successful completion of construction and energisation of the 800kW Pluckanes wind turbine project and the sale of electricity to the National grid since October 2013. The project has operated ahead of management expectations since being commissioned;
  • Signed a legal option and agreement for lease with the London & Devonshire Trust (“LDT”) regarding a site for a 10MW Biomass CHP project in Plymouth; and
  • Secured a grid connection offer for the 500kW Altilow 500kW single wind turbine locoed in County Donegal, Ireland

Financial Summary

  • Group revenue of €0.1 million (H1 2012: € 1.8 million);
  • Administrative costs of €0.74 million (H1 2012: €0.90 million);
  • Loss for the period from continuing operations of €1 million (H1 2012: Loss for period €0.9 million); and
  • Issue of an unsecured €2 million Convertible Loan Note to Farmer Business Developments plc (“Farmers”) the Group’s largest shareholder in November 2013

Post-period end events

  • Completed the acquisition of the business of GG Eco Systems Limited (“GGES”), an operator and developer of Biomass Heat Energy Plants in the UK;
  • Secured a grid connection offer for the 10MW Biomass CHP project in Plymouth;
  • Received approval from Ulster Bank Ireland Limited for the funding of Phase Two of its joint venture Biomass Advanced Gasification project located in Newry, Northern Ireland;
  • Proposed issue of up to £1.5 million of secured loan notes of which £600,000 is already committed by Farmers and shareholders of GGES;
  • Secured a grid connection for the 500kW Moneygorm single wind turbine project, located in Co. Cork, Ireland. This project is now fully consented including the completion of the wind measurement campaign; and
  • Received planning permission for a further three single wind turbine projects.

Gerry Madden, CEO of REACT, commented:

“The acquisition of GGES earlier this month has positioned the Group as the leader in Biomass Electricity and Heat generation in the UK in the mid market 100kW to 20 MW generation range.

“With the additions to our management team, the Group now has one of the most highly experienced teams in the sector with the expertise to put in place the finance structures needed for these clean energy plants. Our ability to successfully negotiate and complete long term energy supply contracts with blue chip counterparties is evident. We will build on the progress we have made over that last number of months and expect to further accelerate the growth rate of the enlarged Group.”

Today’s results are available here.