Statement re Half-Yearly Report H1:2015

RNS Number : 4658A

Active Energy Group PLC

29 September 2015

 

29 September 2015

Active Energy Group Plc
("Active Energy Group" or the "Group" or the "Company" or "AEG")

H1:2015 Interim Report and Results

Active Energy Group Plc (AIM: AEG.L), the London Stock Exchange AIM-quoted international supplier of wood fibre products for MDF manufacturing, global forestry and natural resources development services, and Biomass for Energy (BFE) coal replacement fuel solutions and processing systems, announces its interim report and results for the six months to 30 June 2015.

Highlights:

·   Another strong performance from the Group's Ukrainian wood fibre processing division, which recorded a 70% rise in volumes shipped during the period to 103,733 tonnes (H1:2014: 61,185 tonnes).

·   Demand for the Group's wood chip products remains higher than it is currently able to satisfy, with further large orders received since the start of the year.

·   Delays in the major upgrading and expansion of the Group's Ukrainian wood fibre processing facilities, which are now proceeding on schedule and expected to significantly increase volumes and revenues from Q4:2015.

·   Successful conclusion of research into coal replacement Biomass for Energy fuel solutions, leading to the announcement of the establishment of the AEG CoalSwitch Limited joint venture in September 2015.

·   Completion of the majority of the financier due diligence for investment into the Group's Canadian KAQUO Forestry & Natural Resources Development Corporation joint venture.

·   Announcement of proposed Public-Private Partnership 'Forestry to Fuel' initiative with Ukrainian government.

·   Private placing of 20 million New Ordinary Shares with Ruffer LLP, a long-standing institutional investor, raising an additional £1.0 million working capital.

Financial Results:

·   Revenues increased by over 11% to $12.046 million (H1:2014: $10.83 million)

·   Gross profit increased by over 98% to $1.227 million (H1: 2014: $0.618 million)

·   Loss before tax, including significantly higher finance costs of $0.518 million due to the Group taking on more debt to increase its production capabilities, totalled $2.050 million (H1:2014: $1.826 million)

·   Adjusted operating loss (after excluding share-based payments and non-cash items) fell to $0.209 million (H1:2014: $0.550 million)

Post Half-Year End:

·   Installation and commissioning of new high-volume handling and processing equipment at Yuzhny Port, which will facilitate a four-fold increase in the Group's wood chip production capacity, proceeding as per revised schedule.

·   Announcement of AEG CoalSwitch Limited joint venture, in which the Group holds a 51% equity interest, to exclusively commercialise a revolutionary clean energy Biomass coal replacement fuel manufacturing system.

·   Conclusion of the Alberta government investigation into the Métis partners handling of their role in the Group's KAQUO Forestry & Natural Resources Development Corporation joint venture; which should enable forestry operations to commence in January 2016.

·   Further strengthening of the Board with the appointment of Michael Rowan as new Non-Executive Director.

Richard Spinks, CEO of Active Energy Group, commented: "Overall, the first half of the year demonstrated that the Group is making excellent progress towards achieving the strategic vision that I outlined when I assumed the role of CEO in 2012; and my co-Directors and I are confident that AEG is in an even stronger position to create additional shareholder value as an international operation across several vertically-integrated and complementary industry sectors."  

"Although equipment issues at our wood fibre division impacted upon its performance, they prove the wisdom of the Board's decision to invest significant funds in upgrading and expanding our production facilities.  The successful conclusion of our search for a Biomass for Energy coal replacement fuel will not only open important new markets, but also complement and increase the profitability of our other trading activities.  And, despite the delays caused by the Alberta government investigation, we are close to securing the funding to enable us to commence forestry operations in the Group's Canadian joint venture in January 2016."

NOTES TO EDITORS & CONTACT INFORMATION

ABOUT ACTIVE ENERGY GROUP PLC:

Active Energy Group Plc is a London Stock Exchange AIM-quoted company (AIM: AEG.L).  Headquartered in the UK, it is a fast-expanding international business that has experienced exceptionally strong growth and diversification into complementary industry sectors since the current management team assumed responsibility in mid-2012.

The Group has considerable expertise across the entire timber industry supply chain - from forest to finished product.

Its three specialist business divisions, which reflect its knowledge and experience and which work together to maximise commercial opportunities, are focussed on providing products and services to specific global market sectors:

·   Forestry & Natural Resources Development and Management

·   Wood Fibre Products for Medium-Density Fibreboard (MDF) Manufacturing

·   Advanced Biomass for Energy (BFE) Fuel Solutions and Processing Systems

Active Energy Group Plc operates from four international locations:

·   Ukraine, where it is the largest producer and exporter of wood fibre for the Turkish MDF manufacturing sector.

·   Canada, where it has entered into a landmark joint venture - KAQUO Forestry & Natural Resources Development Corporation - with several indigenous Métis Settlements to commercialise in excess of 250,000 hectares of their lands, which contain valuable forests and natural resources, including oil and gas reserves.

·   The United Kingdom and United States of America, where it develops advanced Biomass for Energy fuels and fuel processing systems that convert waste wood and industrial/agricultural residues into coal replacement feedstock for clean energy power generation in a joint venture - AEG CoalSwitch Limited - with Biomass Energy Enhancements LLC.

Ukraine and Canada, with their large forestry reserves and comprehensive road, rail and sea transport links, are ideal locations from which to source raw Biomass material for conversion into wood fibre for MDF manufacturing and enhanced sustainable fuels for electricity generating power plants.

A highly experienced and dedicated management team leads Active Energy Group Plc, each of whom possesses a proven track record in the industries and regions in which it operates and from which its revenues are generated. 

The Company has grown significantly in recent years, and has established a firm foundation, excellent reputation and international customer base upon which to build for the future.

WEBSITE:	LINKEDIN:	TWITTER:
www.active-energy.com	www.linkedin.com/company/activeenergy	www.twitter.com/aegplc  (@aegplc)

ENQUIRIES:

Active Energy Group Plc
Richard Spinks	[e-mail]	Intl.:	[phone]
Chief Executive Officer		Ukraine:	[phone]
Brian Evans-Jones	[e-mail]	UK:	[phone]
Chief Financial Officer		Ukraine:	[phone]
Mark Broomer	[e-mail]	Intl.:	[phone]
Corporate Communications		UK:	[phone]
WH Ireland Ltd. (Nominated Adviser and Broker)
Chris Fielding/Mark Leonard		Office:	[phone]

 

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