Trading Update March 2016

RNS Number : 1265T

Active Energy Group PLC

24 March 2016

 

24 March 2016

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

Trading Update March 2016

On 7 December 2015, Active Energy Group Plc (AIM: AEG.L), the AIM-listed supplier of timberland management and development services, industrial wood fibre and Biomass coal replacement fuels, announced that, despite strong trading by its AEG WoodFibre division in the fourth quarter, it anticipated that the Group would incur a loss for the full year.

The Board provides below an update on trading in each of its divisions ahead of the release of AEG's preliminary results for the year ended 31 December 2015, which is anticipated in early June 2016.

AEG WoodFibre:

AEG WoodFibre's trading concluded strongly in Q4:2015 and the division has continued to trade well in 2016, maintaining margins, although on volumes of approximately 23,500 tonnes per month, compared to approximately 27,000 tonnes per month in Q4:2015, primarily as a result of poor weather in January. The Board continues to anticipate that the division's new softwood production line will commence operating in Q2:2016, which will further enhance its operating capacity.

AEG TimberLands:

Since the announcement on 7 December 2015, AEG has continued to negotiate with a fourth Métis Settlement and to commission at the Group's expense further due diligence on behalf of potential investors.

However AEG TimberLands' joint venture has continued to experience delays in its dealings, including matters related to the Alberta Government. The Board is trying to resolve these issues, but the delays have meant that forestry operations have been postponed beyond Q1:2016.  As a result of the delays in the commencement of operations, approximately US$0.6 million of AEG expenditure relating to this division in 2015, which the Board had planned to capitalise, will now be charged to the profit and loss account.

A further announcement concerning AEG TimberLands will be made when appropriate.

AEG CoalSwitch:

The Group announced on 7 March 2016 that the University of Utah's Clean and Secure Energy Institute had concluded that AEG CoalSwitch's technical and commercial viability for use as a standalone fuel, or co-fired in high concentrations with coal in traditional coal-fired power plants, provided significant environmental and commercial advantages to industrial power generators.

The Board believes that the successful outcome wholly justifies the Group's investment in this technology, which in the year ended 31 December 2015 amounted to approximately US$0.3 million.

Taking into account the above, the Group will report an operating loss for the year ended 31 December 2015 greater than that for the prior year.

Notwithstanding this loss, primarily as a result of the strong Q4:2015 trading of AEG WoodFibre and the Board's control of central costs, cash balances at 23 March 2016 amounted to in excess of US$1.0 million (30 June 2015: US$0.9 million).

Commenting on the above, Richard Spinks, CEO of Active Energy Group Plc, stated: "These results demonstrate the importance to the Group of its profitable operations in AEG WoodFibre in Ukraine, which have enabled the Group to continue its investment in its exciting new opportunities in AEG Timberlands and AEG CoalSwitch. Although the Board is disappointed that it will be reporting losses for the Group for the full year, we remain very excited by the potential of AEG TimberLands and, particularly at the present time, AEG CoalSwitch."

- ENDS -
 

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 factory and fuel.

Its three trading divisions, which operate as independent business units but work together to optimise resources and opportunities, are focussed on providing environmentally-sensitive solutions to specific global market sectors:

·   AEG TimberLands: Forestry Asset Management and Development

·   AEG WoodFibre: Industrial Wood Fibre for Medium-Density Fibreboard (MDF) Manufacturing

·   AEG CoalSwitch: Advanced Biomass Coal Replacement Fuels and Fuel 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 joint venture with several indigenous Métis Settlements to commercialise in excess of 300,000 hectares of their lands, which contain valuable forests and natural resources.

·   The United Kingdom and United States of America, where it develops advanced Biomass 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 with Biomass Energy Enhancements LLC.

Active Energy Group Plc is led by a highly experienced management team, supported by forestry, timber processing and renewable energy experts within its trading divisions.  All possess a proven track record in the industries and regions in which the company operates and from which its revenues are generated. 

The Group has grown significantly in recent years, and has established a firm foundation, excellent reputation and international customer base upon which to deliver lasting value to all stakeholders.

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
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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