TIDMALK
RNS Number : 3152S
Alkane Energy PLC
08 September 2010
8 September 2010
Alkane Energy plc
Unaudited interim results for the half year to 30 June 2010
Alkane Energy plc ("Alkane", "the Group" or "the Company") (AIM: ALK) the
profitable alternative energy company, today announces its unaudited interim
results for the six months to 30 June 2010.
Financial Highlights
* Revenue increased by 7.5% to GBP3.1m (H1 2009: GBP2.8m)
* EBITDA up 5% to GBP1.5m (H1 2009: GBP1.4m)
* Production costs per MWh down 9%
* Net assets increased to GBP16.6m (H1 2009: GBP15.6m)
Operational Highlights
* Generating output increased by 32% to 52GWh (H1 2009: 39GWh)
* One new site added in the first half - on track to deliver three new sites
this year
* 33% of expected output for 2011 contracted at c. GBP48/MWh
* Good progress made on 2011 project pipeline - 3 projects well advanced
* Extension of GDF SUEZ tolling contract for a further 18 months
* First biogas planning application filed - 3 sites under appraisal
* Expansion finance secured with three year GBP5.5m facility
Commenting on the interim results, Chief Executive Officer, Neil O'Brien, said:
"We have continued to see strong organic growth in our core coal mine methane
business and will add further generation capacity in the second half. In
addition, we are seeing the benefits from our activities in related conventional
gas and are making our first initiatives in the biogas sector. Alkane is well
placed in an environment where the pricing outlook appears to be strengthening
and there are considerable consolidation opportunities."
For more information please contact:
+------------------------------+--------------------------------+
| Alkane Energy plc | |
| Neil O'Brien, Chief | 020 7796 4133 (today), then |
| Executive Officer | 01623 827927 |
| Steve Goalby, Finance | 020 7796 4133 (today), then |
| Director | 01623 827927 |
| | |
+------------------------------+--------------------------------+
| Altium Capital Limited | |
| Adrian Reed, Financial | 0161 831 9133 |
| Advisory | 020 7484 4040 |
| Chloe Ponsonby, Corporate | |
| Broking | |
+------------------------------+--------------------------------+
| Hudson Sandler | |
| Nick Lyon | 020 7796 4133 |
+------------------------------+--------------------------------+
Background Information
Alkane Energy has the UK's leading portfolio of coal mine methane ("CMM")
licences, enabling the Company to extract gas from abandoned coal mines. Alkane
started extracting CMM in 1999 with sites at Shirebrook, Steetley and Markham.
Shirebrook and Markham are still operational today, a decade after they were
opened. Shirebrook is still producing CMM and surplus capacity has been
deployed to conventional peak load along with capacity at Markham.
The Group now generates power from 10 small scale (less than 10MW) power plants
across the UK and sells this power through the electricity network, using
standard modular reciprocating engines to generate the electricity. The engine
units and other plant are designed to be flexible and transportable and this
allows additional capacity to be brought onto growing sites and underutilised
plant to be moved to new sites to maximise efficiency.
Alkane's skills and ambitions are not limited to CMM. The operating model has
already been transferred to running peak load plant using conventional gas.
Alkane currently operates 7MW across two sites on conventional gas with our
trading partners GDF SUEZ Energy UK.
The Biogas market also provides a potential new business stream which will
require exactly the same power assets and core gas and electricity skills as
CMM.
Coal Bed Methane is a longer term opportunity where Alkane has 500km2 under
licence and contingent resource estimates of circa 350 billion cubic feet.
Introduction
Alkane has established itself as the UK's largest CMM operator trading from 10
sites during H1 2010. Output has grown sharply by 32% as the recent record
investment in new sites has increased overall installed capacity up to 33MW. In
respect of CMM we are well on our way to our stated target of 50MW.
The following table shows our progress:
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
| | 2007 | 2008 | 2009 | 2010 | Total |
| |installed |installed |installed | | |
| | capacity | capacity | capacity | | |
+---------------+ + + +--------------------+ +
| | | | | Projects | | Projects |
| | | | |completed | | under |
| | | | | in H1 | |construction |
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
| | MW | MW | MW | MW | MW | MW |
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
| CMM | 9.5 | 11 | 17 | 3 | 4.5 | 24.5 |
| Electricity | | | | | | |
| Generation | | | | | | |
| sites | | | | | | |
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
| Gas supply | 6 | 6 | 6 | - | - | 6 |
| sites | | | | | | |
| (equivalent | | | | | | |
| MW) | | | | | | |
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
| Conventional | - | - | 7 | - | - | 7 |
| gas | | | | | | |
| generation | | | | | | |
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
| Total | 15.5 | 17 | 30 | 3 | 4.5 | 37.5 |
+---------------+-----------+-----------+-----------+-----------+--------+--------------+
Financial performance
During the period the Group has generated GBP1.5m of EBITDA (H1 2009: GBP1.4m)
which represents 48% of revenue (H1 2009: 49%). This is a very healthy EBITDA
ratio in this period of low selling prices and is a key source of funds for our
organic investment plans to continue expanding the Group's installed production
capacity.
Revenue has increased by 7.5% to GBP3.1m (H1 2009: GBP2.8m) reflecting a 32%
increase in electricity output, which represents around 85% of revenue, to 52GWh
(H1 2009: 39GWh). Gas output, representing around 15% of turnover, was stable
at 1.8m therms (H1 2009: 1.7m therms).
The significant increase in electricity output offset the expected drop in
selling prices being experienced during 2010. Average selling prices have
fallen from GBP54/MWh in 2009 to GBP44/MWh so far this year. At these selling
prices, Alkane has remained profitable and cash generative and we have used this
cash flow to invest in new sites.
The current forward price curve is showing year on year price increases for the
next three years. We have forward contracted 33% of our 2011 expected output at
c. GBP48/MWh. This increase in selling price is a very encouraging trend for
the Group as we bring on our new capacity. Alkane has retained its prudent
forward selling policy. We have a regular rolling programme to forward sell on
base load contracts. This policy is designed to give us visibility on cash flow
and income over the next 12 months.
The underlying PBT has fallen marginally to GBP0.7m (H1 2009: GBP0.8m). This
results principally from the increased depreciation charges arising from the
additional capacity; the investment in new capacity has sharply increased output
which has broadly compensated for the lower prices experienced this year. We
have protected profits and cash flow in the period by reducing production costs
per MWh to GBP8.64/MWh (H1 2009 GBP9.51/MWh). In addition the 32% increase in
output has been achieved with no increase in administrative expenses.
The published PBT figure, which last year included the negative impact of the
foreign exchange movements related to the Pro2 disposal, has increased to
GBP0.7m (H1 2009: GBP0.4m).
Earnings per share from continuing operations in the first half amounted to
0.70p (H1 2009: 0.45p). Excluding the impact of the exchange movements
described above, underlying earnings per share were 0.70p (H1 2009: 0.85p).
Balance sheet and cash flow
Net assets have increased to GBP16.6m (H1 2009: GBP15.6m) as we have reinvested
the cash generated from operations and the sale of Pro2 Anlagentechnik GmbH.
Our balance sheet is dominated by the fixed asset figure of GBP20.0m invested in
sites, grid connections and engines. Fixed assets have increased by GBP6.5m
since June 2009 as new sites have been commissioned. Our modular engines are on
average only 3 years old and have the potential for many more years of on-going
operation.
Our net debt level is a very modest GBP2.4m (H1 2009: GBP0.9m net funds)
representing gearing of just 15%. In July 2010 we entered into a new GBP5.5m
revolving credit facility with Lloyds TSB Bank Plc. The three year committed
facility extends to July 2013 and has an interest charge of 2.5% above LIBOR.
Covenants are in place in respect of growth of net worth, EBITDA levels relative
to outstanding debt, interest cover, minimum electricity pricing levels, and
proportion of output under contract. This new facility will provide the Group
with clarity of funding, lower finance costs and the ability to push ahead with
its stated CMM roll out plan.
Cash flow from operating activities in the period was GBP1.5m (H1 2009:
GBP2.2m). We have continued the expansion plans started last year and invested
a further GBP2.2m (H1 2009: GBP4.8m) so far this year in new capacity. In
addition we have received a net payment of GBP130k as deferred consideration on
last year's disposal of Pro2. We are still owed GBP864k in respect of this
transaction, with an agreed repayment schedule running to 2013. As previously
announced we have fully provided against this debt.
Operational performance
The Alkane model has delivered strong organic growth in H1 2010. Electricity
output has risen by 32% to 52GWh, and so far in 2010 we have opened one new
site, our first site in the West Midlands, at the former Florence colliery site
near Stoke-on-Trent.
We are on track to add a further two sites to our network during H2 of this
year, with building work well advanced at Newmarket, Yorkshire and at a new site
in Mansfield, Nottinghamshire. By the end of 2010 we will have 12 operating
sites, a step up in critical mass which will mean we are well placed to increase
output in 2011.
We are progressing well with our drill programme for next year's new capacity.
We intend to have three new sites opened during 2011, subject to the drill
results, planning and grant of permits.
Strategy
The Alkane strategy starts with our core CMM business. We have a strong licence
position from which we aim to expand to generate 300GWh p.a. We are embarked on
a roll out programme to open new sites and we expect that we will have over 20
sites, with a capacity of approximately 50MW, to reach our output target. If we
achieve this target we will have trebled output from 2009.
Alkane started extracting CMM in 1999 with sites at Shirebrook, Steetley and
Markham. Shirebrook and Markham are still operational today a decade after they
were opened. Shirebrook is still producing CMM and surplus capacity has been
deployed to conventional peak load along with capacity at Markham. We seek to
install production capacity on a site to run for 10 years or more.
There is the potential to consolidate the UK CMM sector and Alkane has looked at
a number of acquisition opportunities. With an extensive and attractive
portfolio of sites in our own licence area Alkane will only buy assets at a fair
price. We are already preparing our research for the next Licensing Round,
which we hope will allow us to extend our portfolio.
Alkane's skills and ambitions are not limited to CMM. Our operating model has
already been transferred to running peak load plant run on conventional gas. We
currently operate 7MW across two sites on conventional gas with our trading
partners GDF SUEZ Energy UK. We are using surplus second hand engine capacity
and grid connections at existing sites which allows us to extend asset life. As
previously announced, following the success of the initial year, we have
extended the contract for a further 18 months with GDF SUEZ, in respect of a
capacity of 10MW and incorporating peak operations. We expect an approximate
doubling of revenues from this source during 2011.
We continue to look for areas where we can extend the use of our core skills in
methane gas handling and running small scale power sites. The biogas market has
strong growth potential in which we are starting to make our first initiatives.
We have filed our first planning application for a biogas plant at Whitwell,
Derbyshire. In addition we have been working with our collaboration partner in
the municipal waste market, the TEG Group PLC, on bids for three of the regions
in the Welsh Assembly waste round. We also continue to appraise projects in the
agricultural biogas sector to work on projects as either an equity partner or
energy equipment provider.
Coal Bed Methane is a longer term opportunity where Alkane has 500km2 under
licence and contingent resource estimates of circa 350 billion cubic feet. We
are monitoring activity in this sector and are preparing a programme to confirm
these resource estimates.
The Alkane team
As ever, the Board would wish credit to be given to all of the Alkane team who
have contributed to the progress achieved so far this year. The in-house team
together with our key trading partners are taking on the challenges to deliver
growth for Alkane.
The Board would like to highlight the contribution of David Oldham, who retired
as Technical Director and stepped down from the Board on 14 July 2010. David
has been instrumental in creating and delivering the Alkane business model. As
a founder of the company David has steered the Group through its early
development phase into generation and leaves us at a time when Alkane is
producing record output and with a healthy portfolio of new sites to bring on
stream.
Outlook
We have a clear strategy in place to continue to build the UK's largest and most
profitable coal mine methane company. The second half will see further
generation capacity added to the Group's portfolio within an environment where
the pricing outlook appears to be strengthening and we have the funding in place
to develop these organic growth opportunities.
Combined with the other opportunities that the Group is pursuing within both the
CMM sector and more widely in conventional gas, biogas, heat and CBM, we look
forward to reporting a further six months of strong progress at our preliminary
results for the year ended 31 December 2010.
John Lander
Chairman
Neil O'Brien
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 6 months ended 30 June 2010
+---------------------------------------+-------+-----------+-----------+----------+
| | | For the | For | For |
| | | six | the | the |
| | | | six | year |
+---------------------------------------+-------+-----------+-----------+----------+
| | | months | months | ended |
| | | ended | ended | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | 30 June | 30 | 31 |
| | | | June | December |
+---------------------------------------+-------+-----------+-----------+----------+
| | | 2010 | 2009 | 2009 |
+---------------------------------------+-------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| |Notes | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Revenue | | 3,057 | 2,845 | 6,292 |
+---------------------------------------+-------+-----------+-----------+----------+
| Cost of sales | | (1,243) | (952) | (2,026) |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Gross profit | | 1,814 | 1,893 | 4,266 |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Administrative expenses | | (1,117) | (1,142) | (1,933) |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Return on operations before other | | 697 | 751 | 2,333 |
| operating income and charges | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Other operating income | | 25 | 54 | 152 |
+---------------------------------------+-------+-----------+-----------+----------+
| Impairment of gas assets | | - | - | (18) |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Profit on activities before finance | | 722 | 805 | 2,467 |
| income/(costs) | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Finance income | | 38 | 65 | 109 |
+---------------------------------------+-------+-----------+-----------+----------+
| Exchange gain/(loss) arising from | | 1 | (365) | (307) |
| financing | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Finance costs | | (108) | (85) | (185) |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Net finance (costs)/income | | (69) | (385) | (383) |
+---------------------------------------+-------+-----------+-----------+----------+
| Profit before tax | | 653 | 420 | 2,084 |
+---------------------------------------+-------+-----------+-----------+----------+
| Tax charge | 4 | - | - | (1) |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Profit for the period from continuing | | 653 | 420 | 2,083 |
| operations | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Discontinued operations: | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Net profit on disposal of associate | 5 | - | 767 | 767 |
+---------------------------------------+-------+-----------+-----------+----------+
| Impairment charge | 5 | - | - | (1,448) |
+---------------------------------------+-------+-----------+-----------+----------+
| Deferred payments received | 5 | 130 | - | - |
+---------------------------------------+-------+-----------+-----------+----------+
| Profit/(loss) from discontinued | | 130 | 767 | (681) |
| operations | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Profit for the period attributable to | | 783 | 1,187 | 1,402 |
| equity holders of the parent | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Other comprehensive income | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Exchange difference transferred to | | - | (927) | (927) |
| profit or loss on disposal of foreign | | | | |
| operation | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Total comprehensive income for the | | | | |
| period attributable | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| to equity holders of the parent | | 783 | 260 | 475 |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Earnings per share | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| From continuing operations: | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Basic, for profit for the period | 6 | 0.70p | 0.45p | 2.24p |
| attributable to equity holders of the | | | | |
| parent | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Diluted, for profit for the period | 6 | 0.70p | 0.45p | 2.22p |
| attributable to equity holders of the | | | | |
| parent | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| From continuing and discontinued | | | | |
| operations: | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Basic, for profit for the period | 6 | 0.84p | 1.28p | 1.51p |
| attributable to equity holders of the | | | | |
| parent | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| Diluted, for profit for the period | 6 | 0.83p | 1.26p | 1.49p |
| attributable to equity holders of the | | | | |
| parent | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
| | | | | |
+---------------------------------------+-------+-----------+-----------+----------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 June 2010
+--------------------------------+-------+-----------+-----------+----------+
| | | 30 | 30 June | 31 |
| | | June | | December |
+--------------------------------+-------+-----------+-----------+----------+
| | | 2010 | 2009 | 2009 |
+--------------------------------+-------+-----------+-----------+----------+
| | |Unaudited | Unaudited | Audited |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| |Notes | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| NON-CURRENT ASSETS | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| Property, plant and equipment | 7 | 9,776 | 6,953 | 9,355 |
+--------------------------------+-------+-----------+-----------+----------+
| Gas assets | 8 | 10,202 | 6,566 | 8,937 |
+--------------------------------+-------+-----------+-----------+----------+
| Buildings | 9 | 30 | - | - |
+--------------------------------+-------+-----------+-----------+----------+
| | | 20,008 | 13,519 | 18,292 |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| CURRENT ASSETS | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| Inventories | | 249 | 188 | 223 |
+--------------------------------+-------+-----------+-----------+----------+
| Trade and other receivables | | 1,491 | 3,980 | 1,450 |
+--------------------------------+-------+-----------+-----------+----------+
| Cash and cash equivalents | | 881 | 3,507 | 904 |
+--------------------------------+-------+-----------+-----------+----------+
| | | 2,621 | 7,675 | 2,577 |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| TOTAL ASSETS | | 22,629 | 21,194 | 20,869 |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| CURRENT LIABILITIES | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| Trade and other payables | | (1,272) | (1,663) | (1,019) |
+--------------------------------+-------+-----------+-----------+----------+
| Financial liabilities | | (856) | (652) | (665) |
+--------------------------------+-------+-----------+-----------+----------+
| Provisions | | (7) | (17) | (13) |
+--------------------------------+-------+-----------+-----------+----------+
| | | (2,135) | (2,332) | (1,697) |
+--------------------------------+-------+-----------+-----------+----------+
| NON-CURRENT LIABILITIES | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| Financial liabilities | | (2,411) | (1,965) | (2,045) |
+--------------------------------+-------+-----------+-----------+----------+
| Provisions | | (1,482) | (1,346) | (1,348) |
+--------------------------------+-------+-----------+-----------+----------+
| | | (3,893) | (3,311) | (3,393) |
+--------------------------------+-------+-----------+-----------+----------+
| TOTAL LIABILITIES | | (6,028) | (5,643) | (5,090) |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| NET ASSETS | | 16,601 | 15,551 | 15,779 |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| EQUITY ATTRIBUTABLE TO OWNERS | | | | |
| OF THE PARENT | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| Share capital | | 465 | 464 | 464 |
+--------------------------------+-------+-----------+-----------+----------+
| Share premium | | 96 | 72 | 72 |
+--------------------------------+-------+-----------+-----------+----------+
| Other reserves | | 8,571 | 8,544 | 8,557 |
+--------------------------------+-------+-----------+-----------+----------+
| Retained earnings | | 7,469 | 6,471 | 6,686 |
+--------------------------------+-------+-----------+-----------+----------+
| | | | | |
+--------------------------------+-------+-----------+-----------+----------+
| TOTAL EQUITY | | 16,601 | 15,551 | 15,779 |
+--------------------------------+-------+-----------+-----------+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2010
+---------------------+------+--+---------+-------------+-------------+----------+------------+
| | | Attributable to equity holders of the parent |
+---------------------+------+----------------------------------------------------------------+
| | Issued | Share | Translation | Other | Retained | Total |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | Capital | premium | of | reserves(1) | earnings | equity |
| | | | foreign | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | operations | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| At 1 January 2010 | 464 | 72 | - | 8,557 | 6,686 | 15,779 |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Profit for the | - | - | - | - | 783 | 783 |
| period | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Total comprehensive | - | - | - | - | 783 | 783 |
| income and expense | | | | | | |
| for the period | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Issue of share | 1 | 24 | - | - | - | 25 |
| capital | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Share-based payment | - | - | - | 14 | - | 14 |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| At 30 June 2010 | 465 | 96 | - | 8,571 | 7,469 | 16,601 |
| (Unaudited) | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| At 1 January 2009 | 464 | 72 | 927 | 8,531 | 5,284 | 15,278 |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Profit for the | - | - | - | - | 1,187 | 1,187 |
| period | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Other comprehensive | - | - | (927) | - | - | (927) |
| income | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Total comprehensive | - | - | (927) | - | 1,187 | 260 |
| income and expense | | | | | | |
| for the period | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Share-based payment | - | - | - | 13 | - | 13 |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| At 30 June 2009 | 464 | 72 | - | 8,544 | 6,471 | 15,551 |
| (Unaudited) | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| At 1 January 2009 | 464 | 72 | 927 | 8,531 | 5,284 | 15,278 |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Profit for the | - | - | - | - | 1,402 | 1,402 |
| period | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Other comprehensive | - | - | (927) | - | - | (927) |
| income | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Total comprehensive | - | - | (927) | - | 1,402 | 475 |
| income and expense | | | | | | |
| for the period | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| Share-based payment | - | - | - | 26 | - | 26 |
| | | | | | | |
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| At 31 December 2009 | 464 | 72 | - | 8,557 | 6,686 | 15,779 |
| (Audited) | | | | | | |
+---------------------+---------+---------+-------------+-------------+----------+------------+
| | | | | | | | |
+---------------------+------+--+---------+-------------+-------------+----------+------------+
(1) Other reserves comprise share-based payments of GBP152,000 (30 June 2009:
GBP125,000; 31 December 2009: GBP138,000) and a
distributable reserve of GBP8,419,000 (30 June and 31 December 2009:
GBP8,419,000) created following cancellation of the share premium
account.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2010
+----------------------------------+-------+-----------+-----------+----------+
| | | For the | For the | For |
| | | six | six | the |
| | | | | year |
+----------------------------------+-------+-----------+-----------+----------+
| | | months | months | ended |
| | | ended | ended | |
+----------------------------------+-------+-----------+-----------+----------+
| | | 30 June | 30 June | 31 |
| | | | | December |
+----------------------------------+-------+-----------+-----------+----------+
| | | 2010 | 2009 | 2009 |
+----------------------------------+-------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+----------------------------------+-------+-----------+-----------+----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+-------+-----------+-----------+----------+
| | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Operating activities | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Profit before tax from | | 653 | 420 | 2,084 |
| continuing operations | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Adjustments to reconcile | | | | |
| operating profit to net cash | | | | |
| flows: | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Depreciation and impairment of | | 730 | 589 | 1,225 |
| property, plant and equipment | | | | |
| and gas assets | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Share-based payments expense | | 14 | 13 | 26 |
+----------------------------------+-------+-----------+-----------+----------+
| Finance income | | (38) | (65) | (109) |
+----------------------------------+-------+-----------+-----------+----------+
| Finance expense | | 108 | 85 | 185 |
+----------------------------------+-------+-----------+-----------+----------+
| Movements in provisions | | 128 | (36) | (38) |
+----------------------------------+-------+-----------+-----------+----------+
| (Increase)/decrease in trade and | | (40) | 1,271 | 2,235 |
| other receivables | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Increase in inventories | | (26) | (44) | (79) |
+----------------------------------+-------+-----------+-----------+----------+
| Decrease in trade and other | | (29) | (78) | (214) |
| payables | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Income tax (paid)/refunded | | (1) | 19 | 132 |
+----------------------------------+-------+-----------+-----------+----------+
| Net cash flows from operating | | 1,499 | 2,174 | 5,447 |
| activities | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Cash flows from investing | | | | |
| activities | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Proceeds from sale of investment | | 130 | 3,161 | 3,162 |
| in associate | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Interest received | | 39 | 129 | 176 |
+----------------------------------+-------+-----------+-----------+----------+
| Purchase of property, plant and | | (761) | (2,911) | (5,709) |
| equipment | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Purchase of gas assets | | (1,374) | (1,845) | (4,964) |
+----------------------------------+-------+-----------+-----------+----------+
| Purchase of buildings | | (30) | - | - |
+----------------------------------+-------+-----------+-----------+----------+
| Net cash flows used in investing | | (1,996) | (1,466) | (7,335) |
| activities | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Cash flows from financing | | | | |
| activities | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Issue of share capital | | 25 | - | - |
+----------------------------------+-------+-----------+-----------+----------+
| Proceeds from sale and finance | | 1,074 | 957 | 1,417 |
| leaseback | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Sale and finance leaseback | | (517) | (249) | (616) |
| rentals | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Interest paid | | (108) | (85) | (185) |
+----------------------------------+-------+-----------+-----------+----------+
| Net cash flows from financing | | 474 | 623 | 616 |
| activities | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Net (decrease)/increase in cash | | (23) | 1,331 | (1,272) |
| and cash equivalents | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Cash and cash equivalents at | | 904 | 2,176 | 2,176 |
| beginning of period | | | | |
+----------------------------------+-------+-----------+-----------+----------+
| Cash and cash equivalents at | 12 | 881 | 3,507 | 904 |
| close of period | | | | |
+----------------------------------+-------+-----------+-----------+----------+
NOTES TO THE ACCOUNTS
1. CORPORATE INFORMATION
The interim condensed consolidated financial statements of the Group for the six
months ended 30 June 2010 were authorised for issue in accordance with a
resolution of the directors on 7 September 2010.
Alkane Energy plc is a public limited company incorporated and domiciled in
England whose shares are publicly traded. The Company's registered number is
2966946.
The principal activities of the Group are described in Note 3.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
Basisof preparation
The interim condensed financial statements are unaudited and do not constitute
statutory financial statements within the meaning of section 435 of the
Companies Act 2006.
The comparative figures for the year ended 31 December 2009 were derived from
the statutory accounts for that year which have been delivered to the Registrar
of Companies. Those accounts received an unqualified audit report which did not
contain statements under section 498(2) or (3) (accounting records or returns
inadequate, accounts not agreeing with records and returns or failure to obtain
necessary information and explanations) of the Companies Act 2006.
The interim condensed financial statements have been prepared in accordance with
IAS 34 'Interim Financial Reporting' as adopted by the European Union. This
report should be read in conjunction with the Group's Annual Report and Accounts
2009, which have been prepared in accordance with IFRSs as adopted by the
European Union.
Accounting policies
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those presented in the
Group's Annual Report and Accounts for the year ended 31 December 2009.
The preparation of interim financial statements requires management to make
judgments, estimates and assumptions that affect the application of policies and
reported amounts of assets and liabilities, income and expenses. There have been
no significant changes in the bases upon which estimates have been determined
compared to those applied at 31 December 2009, and no change in estimate has had
a material effect on the current period. All significant estimates and
judgments have been disclosed in the Group's Annual Report and Accounts for the
year ended 31 December 2009. Actual results may differ from these estimates.
These condensed consolidated interim financial statements have been prepared on
the basis of IFRSs in issue that are effective at the Group's annual reporting
date as at 31 December 2010.
3. SEGMENT INFORMATION
Operating segments
The directors consider that there are two operating segments:
* The extraction of gas from coal measures for power generation and burner tip
use;
* The development and operation of Biogas projects.
There is currently no revenue from the Biogas activity, which is in the early
stages of development, and the segment assets are less than 10% of the Group
total. The business segment is therefore not separately disclosed, as permitted
under IFRS8, Operating Segments.
Seasonality of operations
There is no significant seasonal nature to the Group's business of the
extraction and use of gas.
4. TAXATION
There is no tax charge for the current period (6 months ended 30 June 2009:
nil). The tax charge of GBP1,000 for the year ended 31 December 2009 relates to
interest earned on securities held in Germany.
5. SALE OF ASSOCIATE
On 2 March 2009 the Group completed the sale of its 38% equity interest in Pro2
Anlagentechnik GmbH for a consideration of EUR3,600,000 (GBP3,212,000). The
EUR2,000,000 (GBP1,739,000) outstanding balance of the EUR3,000,000 (GBP2,771,000)
working capital loan made to Pro2 in 2005 was repaid in full on 10 February
2009.
Profit on Disposal
The net profit on disposal was GBP767,000. The economic effective date for the
sale was 1 January 2009. Calculation of the net profit on disposal was
therefore based on the net assets of Pro2 Anlagentechnik GmbH at 31 December
2008.
+----------------------------------+---------+---------+---------+
| | Equity | Loans | Total |
+----------------------------------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+---------+---------+---------+
| | | | |
+----------------------------------+---------+---------+---------+
| Book value of net assets at 31 | 2,617 | - | 2,617 |
| December 2008 | | | |
+----------------------------------+---------+---------+---------+
| Goodwill | 705 | - | 705 |
+----------------------------------+---------+---------+---------+
| Assets held for sale at 31 | 3,322 | - | 3,322 |
| December 2008 | | | |
+----------------------------------+---------+---------+---------+
| Shareholder loans | - | 1,873 | 1,873 |
+----------------------------------+---------+---------+---------+
| | 3,322 | 1,873 | 5,195 |
+----------------------------------+---------+---------+---------+
| | | | |
+----------------------------------+---------+---------+---------+
| Sale proceeds received | 2,570 | 956 | 3,526 |
+----------------------------------+---------+---------+---------+
| Exchange rate movement | 2 | 64 | 66 |
+----------------------------------+---------+---------+---------+
| Deferred amounts | 640 | 853 | 1,493 |
+----------------------------------+---------+---------+---------+
| Loss on disposal before costs | (110) | - | (110) |
+----------------------------------+---------+---------+---------+
| Cost of disposal | (50) | - | (50) |
+----------------------------------+---------+---------+---------+
| | (160) | - | (160) |
+----------------------------------+---------+---------+---------+
| Release of translation reserves | 927 | - | 927 |
| from equity | | | |
+----------------------------------+---------+---------+---------+
| Net profit on disposal | 767 | - | 767 |
+----------------------------------+---------+---------+---------+
Alkane placed GBP640,000 from the consideration into an escrow account to act as
collateral against any warranties or other claims. Of the shareholder loan of
GBP1,873,000 made to Pro2 Anlagentechnik GmbH, GBP956,000 was sold at face value
on 2 March 2009. The balance was due to be repaid in instalments: GBP45,000 was
received on 5 January 2010.
Impairment
Pro2's trading has been impacted by the economic recession as a result of which
there was a fundamental uncertainty at 31 December 2009 as to the recovery of
the balance of the deferred amounts of GBP1,493,000. An impairment charge was
therefore taken in the year ended 31 December 2009 against that amount, less the
GBP45,000 that had been received on 5 January 2010.
Events since 31 December 2009
During the six months to 30 June 2010 the Company received GBP45,000 in respect
of the outstanding loan; this payment represented the unimpaired balance at 31
December 2009. In addition the Company received GBP161,000 in respect of the
impaired amount. After legal and other directly related costs of GBP31,000 the
net deferred amount received in the six months to 30 June 2010 and credited to
the Statement of Comprehensive Income is GBP130,000. A commercial agreement was
reached with Deutsche KWK GmbH, the parent company of Pro2, under which
GBP346,000 of the funds held in escrow were returned to them as a reduction in
the selling price of the equity. After exchange rate differences of GBP77,000,
the balance outstanding at 30 June 2010 in respect of the transaction is
GBP864,000 with an agreed repayment schedule running to 2013. This balance is
fully impaired. It represents loans made to Deutsche KWK GmbH, and includes the
outstanding balance of GBP745,000 in respect of a shareholder loan originally
made to Pro2, the liability for which was transferred to Deutsche KWK GmbH
during the period.
6. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing net profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the period plus the
weighted average number of ordinary shares that would be issued on the
conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
+----------------------------+------------+----------+------------+----------+------------+
| | Six | | Six | | Year |
| | months | | months | | ended |
+----------------------------+------------+----------+------------+----------+------------+
| | ended 30 | | ended | | 31 |
| | June | | 30 June | | December |
+----------------------------+------------+----------+------------+----------+------------+
| | 2010 | | 2009 | | 2009 |
+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Profit for the period from | 653 | | 420 | | 2,083 |
| continuing operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Profit attributable to | 783 | | 1,187 | | 1,402 |
| equity holders of the | | | | | |
| parent | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | No. | | No. | | No. |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Basic weighted average | 93,024,209 | | 92,883,878 | | 92,883,878 |
| number of ordinary shares | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Dilutive effect of share | 790,701 | | 952,106 | | 1,134,040 |
| options | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Diluted weighted average | 93,814,910 | | 93,835,984 | | 94,017,918 |
| number of ordinary shares | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
There have been no other transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date of completion of these
financial statements.
7. PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the six months ended 30 June 2010, the Group acquired assets with a cost
of GBP978,000 (six months ended 30 June 2009: GBP1,494,000; year ended 31
December 2009 GBP4,386,000). There were no disposals during the period (30 June
and 31 December 2009: nil).
Sale and finance leaseback
During the six months ended 30 June 2010, the Group entered into two new lease
agreements for two items of plant with a total cost of GBP1,030,000.
8. GAS ASSETS
Acquisitions and disposals
During the six months ended 30 June 2010, the Group acquired assets with a cost
of GBP1,439,000 (six months ended 30 June 2009: GBP2,204,000; year ended 31
December 2009: GBP4,722,000). There were no disposals during the period (30 June
and 31 December 2009: nil).
9. BUILDINGS
Acquisitions and disposals
During the six months ended 30 June 2010, the Group acquired assets with a cost
of GBP30,000 (six months ended 30 June 2009: nil; year ended 31 December 2009:
nil). There were no disposals during the period (30 June and 31 December 2009:
nil).
10. CAPITAL COMMITMENTS
At 30 June 2010, the Group had the following capital commitments contracted for
but not provided in the financial statements:
Acquisition of property, plant and equipment GBP539,000 (30 June 2009:
GBP1,382,000; 31 December 2009 GBP71,000);
Acquisition of gas assets GBP210,000 (30 June 2009: GBP263,000; 31 December
2009: GBP443,000).
11. SUBSEQUENT EVENTS
To support the planned expansion of the Group's core CMM business, on 6 July
2010 the Company entered into a GBP5.5 million Revolving Credit Facility. The
three year committed facility extends to July 2013 and has an interest charge of
2.5% above LIBOR. Covenants are in place in respect of growth of net worth,
EBITDA levels relative to outstanding debt, interest cover, minimum electricity
pricing levels and proportion of electricity output under contract.
12. ADDITIONAL CASH FLOW INFORMATION
Analysis of net funds
+----------------------+---------+---------+-----------+-------------+-----------+
| | 1 | Cash | Other | Exchange | 30 |
| | January | flow | non-cash | rate | June |
| | 2010 | | movements | differences | 2010 |
+----------------------+---------+---------+-----------+-------------+-----------+
| | Audited | | | | Unaudited |
+----------------------+---------+---------+-----------+-------------+-----------+
| | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+-----------+-------------+-----------+
| | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| sh at bank and in | 904 | (23) | - | - | 881 |
| hand | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| Sale and finance |(2,710) | (579) | - | 22 | (3,267) |
| leaseback | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| Net debt |(1,806) | (602) | - | 22 | (2,386) |
+----------------------+---------+---------+-----------+-------------+-----------+
| Securities | 188 | 40 | - | - | 228 |
+----------------------+---------+---------+-----------+-------------+-----------+
| Adjusted net debt* |(1,618) | (562) | - | 22 | (2,158) |
+----------------------+---------+---------+-----------+-------------+-----------+
| | 1 | Cash | Other | Exchange | 30 |
| | January | flow | non-cash | rate | June |
| | 2009 | | movements | differences | 2009 |
+----------------------+---------+---------+-----------+-------------+-----------+
| | Audited | | | | Unaudited |
+----------------------+---------+---------+-----------+-------------+-----------+
| | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+-----------+-------------+-----------+
| | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| Cash at bank and in | 1,826 | 1,727 | - | (46) | 3,507 |
| hand | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| Liquid resources | 350 | (350) | - | - | - |
+----------------------+---------+---------+-----------+-------------+-----------+
| Cash and cash | 2,176 | 1,377 | - | (46) | 3,507 |
| equivalents | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| Sale and finance |(1,909) | (753) | - | 45 | (2,617) |
| leaseback | | | | | |
+----------------------+---------+---------+-----------+-------------+-----------+
| Net funds | 267 | 624 | - | (1) | 890 |
+----------------------+---------+---------+-----------+-------------+-----------+
| Securities | 305 | 509 | - | (29) | 785 |
+----------------------+---------+---------+-----------+-------------+-----------+
| Adjusted net funds* | 572 | 1,133 | - | (30) | 1,675 |
+----------------------+---------+---------+-----------+-------------+-----------+
+----------------------+---------+---------+-----------+-------------+----------+
| | 1 | Cash | Other | Exchange | 31 |
| | January | flow | non-cash | rate | December |
| | 2009 | | movements | differences | 2009 |
+----------------------+---------+---------+-----------+-------------+----------+
| | Audited | | | | Audited |
+----------------------+---------+---------+-----------+-------------+----------+
| | | | | | |
+----------------------+---------+---------+-----------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+-----------+-------------+----------+
| | | | | | |
+----------------------+---------+---------+-----------+-------------+----------+
| Cash at bank and in | 1,826 | (922) | - | - | 904 |
| hand | | | | | |
+----------------------+---------+---------+-----------+-------------+----------+
| Liquid resources | 350 | (350) | - | - | - |
+----------------------+---------+---------+-----------+-------------+----------+
| Cash and cash | 2,176 | (1,272) | - | - | 904 |
| equivalents | | | | | |
+----------------------+---------+---------+-----------+-------------+----------+
| Sale and finance | (1,909) | (831) | - | 30 | (2,710) |
| leaseback | | | | | |
+----------------------+---------+---------+-----------+-------------+----------+
| Net funds | 267 | (2,103) | - | 30 | (1,806) |
+----------------------+---------+---------+-----------+-------------+----------+
| Securities | 305 | 503 | (620) | - | 188 |
+----------------------+---------+---------+-----------+-------------+----------+
| Adjusted net funds* | 572 | (1600) | (620) | 30 | (1,618) |
+----------------------+---------+---------+-----------+-------------+----------+
*This includes the effect of securities paid on finance lease transactions that
are closely related to those items.
13. RELATED PARTY TRANSACTIONS
Transactions entered into and trading balances outstanding with related parties
are as follows:
+----------------------------+-----------+----------+-----------+----------+----------+
| | Six | | Six | | Year |
| | months | | months | | ended |
+----------------------------+-----------+----------+-----------+----------+----------+
| | ended | | ended | | 31 |
| | 30 June | | 30 | | December |
| | | | June | | |
+----------------------------+-----------+----------+-----------+----------+----------+
| | 2010 | | 2009 | | 2009 |
+----------------------------+-----------+----------+-----------+----------+----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------+-----------+----------+-----------+----------+----------+
| (a) Key management | GBP'000 | | GBP'000 | | GBP'000 |
| compensation | | | | | |
+----------------------------+-----------+----------+-----------+----------+----------+
| | | | | | |
+----------------------------+-----------+----------+-----------+----------+----------+
| Salaries and other | 307 | | 363 | | 695 |
| short-term employee | | | | | |
| benefits | | | | | |
+----------------------------+-----------+----------+-----------+----------+----------+
| Long-term benefits | 24 | | 29 | | 55 |
+----------------------------+-----------+----------+-----------+----------+----------+
| Share-based payments | 13 | | 13 | | 26 |
+----------------------------+-----------+----------+-----------+----------+----------+
| | 344 | | 405 | | 776 |
+----------------------------+-----------+----------+-----------+----------+----------+
+----------------------------+-----------+----------+-----------+----------+----------+
| (b) Loans to associate | 30 June | | 30 | | 31 |
| | 2010 | | June | | December |
| | | | 2009 | | 2009 |
+----------------------------+-----------+----------+-----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+-----------+----------+-----------+----------+----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------+-----------+----------+-----------+----------+----------+
| At 1 January | - | | 3,847 | | 3,847 |
+----------------------------+-----------+----------+-----------+----------+----------+
| No longer classed as a | - | | (3,847) | | (3,847) |
| related party | | | | | |
+----------------------------+-----------+----------+-----------+----------+----------+
| At period end | - | | - | | - |
+----------------------------+-----------+----------+-----------+----------+----------+
The loans to associate relate to Pro2 Anlagentechnik GmbH which was a 38.01%
associate undertaking up to 31 December 2008 (see note 5). Effective from 1
January 2009, the investment in Pro2 Anlagentechnik GmbH was sold.
14. GENERAL NOTE
Copies of this interim report will be sent to registered shareholders and
further copies will be available from the Company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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