Half Yearly Report

RNS Number : 1027O

Camco International Ltd

13 September 2011

 

Trading Statement and Interim Financial Report

Camco International Limited ('Camco', AIM : CAO), a global developer of emission reductions and clean energy projects, is pleased to provide its trading statement and interim financial report for the six months to 30 June 2011. 

Trading Statement

Growth and Delivery in All Sectors

FINANCIAL HIGHLIGHTS for period ending 30 June 2011

·      Revenue increased to €16.2 million (30 June 2010: €11.0 million)

·      Group profit increased  to €3.0 million (30 June 2010: €0.6 million)

·      Net cash of €14.9 million (30 June 2010: €17.8 million)

·      Earnings Per Share from continuing operations increased to 1.62 euro cents or 1.41 pence sterling (30 June 2010: 0.33 euro cents or 0.29 pence sterling)

OPERATIONAL HIGHLIGHTS for period ending 30 June 2011

·      Financial close and start of construction of largest dairy biogas project in North America

·      Expansion of post 2012 portfolio to 41.5 million in specie tonnes (30 December 2010: 30.1 million tonnes)

·      Renewable carbon development agreement signed for 20 wind projects in China with capacity of over 1,000MW

·      Camco South East Asia signed Carbon Development Contracts (CDCs) in Indonesia, Vietnam and Thailand totalling 1.9 million tonnes

·      Deliveries and forward sale transactions locking in prices for 1.9 million in specie tonnes of pre 2012 portfolio

·      Delivery of 3.0 million tonnes by revenue share projects

·      New Advisory contract wins for the period of €2.5 million gross profit value to Camco

Scott McGregor, Camco Chief Executive, said "In the first half of the year we have successfully established our project development business, significantly increased our carbon portfolio and continued to expand profits from our Advisory business.  Throughout each region our teams have created a significant impact, delivering our partners projects that added both commercial and environmental value."

Enquiries:

Camco	[phone]
Scott McGregor, Chief Executive Officer
Shirona Partem, Investor Relations
Singer Capital Markets (Camco Nominated Adviser and Broker)	[phone]
Jonathan Marren

Financial Review

The Company has started 2011 with a strong performance making a net profit after tax to 30 June 2011 of €3.0 million and revenues of €16.2 million.    

The Carbon projects business generated revenue of €11.6 million and segment profit increased to €5.3 million for the period. This is due to the successful completion of projects and fair value price variances during the period.  Once Camco has completed a project through achieving the key regulatory milestone of registration and has provided its technical services, revenue recognition is triggered.

The Energy and Carbon Advisory business has further improved profitability delivering €4.2 million revenue and a segment profit of €0.7 million.

The Clean Energy Project Development and Investment business incurred a net loss of €0.8 million whilst the focus remains on signing and developing projects for future production. 

The unrealised €1.4m adverse movement in exchange differences on translation of foreign operations relates predominantly to the Group's USD assets (the SEA and US joint ventures) which depreciated in EUR terms due to a 9% swing on the USD/EUR exchange rate in the period.

As at 30 June 2011 the Company had a net cash balance of €14.9 million.  The Company had a net operating cash inflow for the period of €2.3m.

Post 30 June 2011 period end, the EUA and CER forward curve has reduced.  Camco's commercialisation strategy is to sell credits as projects mature.  Therefore the Company is less impacted by short-term movements in carbon prices.  However, if the current carbon price reduction persists, it may adversely impact our accrued income balance at year end.

Segment Operational Review as at 30 June 2011

Carbon Project Development

The period saw Camco's post 2012 carbon portfolio increase significantly to 41.5 million tonnes.  These tonnes are scheduled to deliver during the period 2013 to 2020.  Camco signed, during the period, carbon development agreements for 20 wind projects in China with capacity of over 1,000MW.

Our teams completed projects in the period that will now begin to deliver an estimated 4.8 million tonnes of emission reductions certificates to Camco and commercial value to our partners.  Deliveries and forward sale transactions closed locked in prices for 1.9 million in specie tonnes of the pre 2012 portfolio and revenue share delivered a further 3.0 million tonnes.

Camco has been expanding its carbon portfolio in North America and has over 2.0 million tonnes of emissions reductions under contract to date.  Camco has seven projects registered with the Climate Action Reserve, predicted to deliver over 1.0 million tonnes, and another four projects on track for registration by the end of 2011.

Energy and Carbon Advisory

Camco's Advisory business continued to grow in the first half of 2011, with contract wins of €2.5 million gross profit value.  There was a particularly strong demand for consultancy in the UK from both public and private sector clients in the run up to the introduction of the Carbon Reduction Commitment Energy Efficiency Scheme and Feed-in Tariffs. In addition, demand for Camco's services in Africa has increased.

Clean Energy Project Development and Investment

Camco has expanded its Clean Energy project operations in North America and Asia, increasing its pipeline of projects for development in both regions.

In North America Camco has put together a consortium, AgPower Group LLC, with extensive experience in building anaerobic digesters that successfully convert manure and other agricultural organic feedstock into renewable energy.  The initial focus is on the dairy sector with a view to expanding into other agricultural feedstock areas. Our team has reached financial close and commenced construction of a 4.5MW biogas installation, which will convert manure from over 10,000 cows into energy.  This capacity translates into 39.4 GWh of generation. Completion of construction is anticipated in the first half of 2012. The project is wholly owned by Camco and operated by AgPower LLC.

Camco, with its partners, was awarded a share of a $1.5 million grant from the US Department of Agriculture to develop a program to improve nitrogen management practices on farms and reduce N₂O emissions, a potent greenhouse gas.

Our South East Asian team (part of the Company's joint venture in Malaysia) signed new carbon projects expected to deliver 1.9 million tonnes in Indonesia, Vietnam and Thailand, providing a strong basis for growth in the region.

Outlook

All three business segments are experiencing growth and delivering projects.  The Carbon business is progressing well to complete more projects this year and further increase its portfolio. Fair value income performance for the carbon business will be subject to carbon price market volatility, if current carbon prices persist these may adversely impact our accrued income balance. The Company will continue to commercialise carbon projects as they mature.  The Advisory business has a strong order book and is expected to continue its expansion in the UK and Africa.   The Clean Energy project business will continue to develop with good market conditions in both Asia and North America.

Management Share Issue

As part of Camco's existing Long Term Incentive Plan, Scott McGregor (CEO) and Yariv Cohen (President) have each been awarded 2,750,000 Ordinary Shares at nominal value which may vest between now and 30 September 2012 should certain future share price and operational performance targets set by the board be met.

Consolidated Statement of Financial Position

 at 30 June 2011

		30 June 2011 (unaudited)	30 June 2010 (unaudited)	31 December 2010  (audited)
		€'000	€'000	€'000
Non-current assets
Property, plant and equipment		3,837	707	740
Goodwill on acquisition		1,959	1,959	1,959
Other intangible assets		283	778	452
Intangible assets - carbon in specie		-	-	2,030
Investments in associates and joint ventures		9,765	1,767	11,921
Other investments		226	250	236
Deferred tax assets		181	241	192
		16,251	5,702	17,530
Current assets
Work in progress - carbon development contracts		5,790	7,794	6,053
Prepayments and accrued income		47,537	37,251	45,510
Trade and other receivables		5,366	5,039	5,563
Cash and cash equivalents		14,865	18,397	12,382
Assets classified as held for sale		2,208	-	-
		75,766	68,481	69,508
Total assets		92,017	74,183	87,038
Current liabilities
Loans and borrowings		(10)	(642)	(485)
Trade and other payables		(23,630)	(23,305)	(25,078)
Tax payable		(208)	(40)	(143)
Liabilities directly associated with assets classified as held for sale		(350)	-	-
		(24,198)	(23,987)	(25,706)
Non-current liabilities
Loans and borrowings		(4,075)	-	(12)
Deferred tax liabilities		(79)	(174)	(126)
		(4,154)	(174)	(138)
Total liabilities		(28,352)	(24,161)	(25,844)
Net assets		63,665	50,022	61,194

Consolidated Statement of Financial Position (continued)

 at 30 June 2011

		30 June 2011 (unaudited)		30 June 2010 (unaudited)		31 December 2010 (audited)
		€'000		€'000		€'000
Equity attributable to equity holders of the parent
Share capital		1,892		1,763		1,856
Share premium		75,542		72,798		74,861
Share-based payment reserve		717		1,205		1,173
Retained earnings		(12,586)		(25,578)		(15,645)
Translation reserve		(2,288)		1		(890)
Own shares		(357)		(167)		(161)
Non-controlling interest		745		-		-
Total equity		63,665		50,022		61,194

Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2011

		6 months to 30 June 2011	6 months to 30 June 2010	12 months to 31 December 2010
Continuing operations	Note	(unaudited) €'000	(unaudited) €'000	(audited) €'000
Revenue		16,200	10,959	30,036
Cost of sales		(4,487)	(3,221)	(9,482)
Gross profit		11,713	7,738	20,554
Other income - carbon		-	-	5,770
Administrative expenses		(8,579)	(8,682)	(17,836)
Restructuring charges		-	(82)	(82)
Results from operating activities		3,134	(1,026)	8,406
Financial income		602	1,450	2,624
Financial expenses		(560)	(820)	(1,223)
Net financing income		42	630	1,401
Share of loss of equity accounted investees		(125)	-	(187)
Profit/(loss) before tax		3,051	(396)	9,620
Income tax		(31)	978	894
Profit from continuing operations		3,020	582	10,514
Discontinued operation
Loss from discontinued operation (net of income tax)	1	-	(449)	(449)
Profit  for the period		3,020	133	10,065
Other comprehensive income
Exchange differences on translation of foreign operations		(1,398)	107	(784)
Total comprehensive income for the period		1,622	240	9,281
Profit for the period attributable to:
Equity holders of the parent		3,020	133	10,065
Non-controlling interest		-	-	-
Profit  for the period		3,020	133	10,065
Total comprehensive income attributable to:
Equity holders of the parent		1,622	240	9,281
Non-controlling interest		-	-	-
Total comprehensive income for the period		1,622	240	9,281
Basic profit/(loss) per share in € cents
From continuing operations	2	1.62	0.33	5.93
From continuing and discontinued operations	2	1.62	0.08	5.67
Diluted profit/(loss) per share in € cents
From continuing operations	2	1.62	0.33	5.92
From continuing and discontinued operations	2	1.62	0.08	5.67

Consolidated Statement of Changes in Equity

for the 6 months to 30 June 2011

	Share capital	Share premium	Share-based payment reserve	Retained earnings		Translation reserve			Own shares	Total parent equity	Non-controlling interest		Total equity
	€'000	€'000	€'000	€'000	€'000			€'000		€'000		€'000	€'000
Balance at 1 January 2011	1,856	74,861	1,173	(15,645)	(890)			(161)		61,194		-	61,194
Total comprehensive income for the period
Profit for the period	-	-	-	3,020	-			-		3,020		-	3,020
Other comprehensive income
Foreign currency translation differences	-	-	-	-	(1,398)			-		(1,398)		-	(1,398)
Total comprehensive income for the period	-	-	-	3,020	(1,398)			-		1,622		-	1,622
Transactions with owners, recorded directly in equity Contributions by and distributions to owners
Share-based payments	-	-	65	-	-			-		65		-	65
Issuance of shares	36	681	-	-	-			(717)		-		-	-
Own shares	-	-	(521)	-	-			521		-		-	-
Total contributions by and distributions to owners	36	681	(456)	-	-			(196)		65		-	65
Changes in ownership interests in subsidiaries that do not result in a loss of control
Gain from disposal of shares in subsidiary	-	-	-	39	-			-		39		-	39
Acquisition of non-controlling interest without change in control	-	-	-	-	-			-		-		745	745
Total changes in ownership interest in subsidiaries	-	-	-	39	-			-		39		745	784
Total transaction with owners	36	681	(456)	39	-			(196)		104		745	849
Balance at 30 June 2011	1,892	75,542	717	(12,586)	(2,288)			(357)		62,920		745	63,665

Consolidated Statement of Changes in Equity (continued)

for the 6 months to 30 June 2010

	Share capital	Share premium	Share based payment reserve	Retained earnings	Translation reserve	Own shares	Total parent equity	Non-controlling interest		Total equity
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000		€'000
Balance at 1 January 2010	1,730	72,277	1,856	(25,711)	(106)	(391)	49,655	-		49,655
Total comprehensive income for the period
Profit for the period	-	-	-	133	-	-	133	-		133
Other comprehensive income/ expense
Foreign currency translation differences
	-	-	-	-	107	-	107	-		107
Total comprehensive income for the period
	-	-	-	133	107	-	240	-		240
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payments	-	-	127	-	-	-	127	-		127
Issuance of shares	33	521	-	-	-	(554)	-	-		-
Own shares	-	-	(778)	-	-	778	-	-		-
Total contributions by and distributions to owners	33	521	(651)	-	-	224	127	-		127
Changes in ownership interests in subsidiaries that do not result in a loss of control
Acquisition& settlement of non-controlling interest	-	-	-	-	-	-	-	-		-
Total changes in ownership interest in subsidiaries	-	-	-	-	-	-	-	-		-
Total transaction with owners	33	521	(651)	-	-	224	127	-		127
Balance at 30 June 2010	1,763	72,798	1,205	(25,578)	1	(167)	50,022	-		50,022

Consolidated Statement of Changes in Equity (continued)

for the year ended 31 December 2010

	Share capital	Share premium	Share-based  payment reserve	Retained earnings	Translation reserve	Own shares	Total parent equity	Non-controlling interest	Total equity
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Balance at 1 January 2010	1,730	72,277	1,856	(25,711)	(106)	(391)	49,655	-	49,655
Total comprehensive income for the year
Profit for the year	-	-	-	10,065	-	-	10,065	-	10,065
Other comprehensive income
Foreign currency  translation differences	-	-	-	-	(784)	-	(784)	-	(784)
Total comprehensive income for the year	-	-	-	10,065	(784)	-	9,281	-	9,281
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payments	-	-	102	1	-	-	103	-	103
Issuance of shares	126	2,584	-	-	-	(555)	2,155	-	2,155
Own shares	-	-	(785)	-	-	785	-	-	-
Total contributions by and distributions to owners	126	2,584	(683)	1	-	230	2,258	-	2,258
Changes in ownership interests in subsidiaries that do not result in a loss of control
Acquisition of non-controlling interest	-	-	-	-	-	-	-	-	-
Total changes in ownership interest in subsidiaries	-	-	-	-	-	-	-	-	-
Total transaction with owners	126	2,584	(683)	-	-	230	2,258	-	2,258
Balance at 31 December 2010	1,856	74,861	1,173	(15,645)	(890)	(161)	61,194	-	61,194

Consolidated Statement of Cash Flow

for the 6 months to 30 June 2011

Continuing and discontinued operations		6 months to	6 months to	12 months to
		30 June  2011	30 June  2010	31 December 2010
		(unaudited)	(unaudited)	(audited)
	Note	€'000	€'000	€'000
Cash flows from operating activities
Cash generated by operations	(a)	2,342	(11,176)	(15,766)
Income tax paid		-	(141)	(146)
Net cash from operating activities		2,342	(11,317)	(15,912)
Cash flows from investing activities
Proceeds from sales of investments		-	1,303	1,303
Payment for acquisition of joint venture		-	(578)	(3,791)
Acquisition of property, plant & equipment		(3,298)	(176)	(309)
Net cash from investing activities		(3,298)	549	(2,797)
Cash flows from financing activities
Proceeds from the issue of share capital		36	33	2,188
Proceeds from new loan		4,034	-	-
Repayment of borrowings		-	(18)	(18)
Net borrowing by subsidiaries		-	-	-
Payment of finance lease liabilities		(5)	(79)	(87)
Net cash from financing activities		4,065	(64)	2,083
Net increase/(decrease) in cash and cash equivalents		3,109	(10,832)	(16,626)
Cash and cash equivalents at 1 January		11,907	28,324	28,324
Effect of exchange rate fluctuations on cash held		(151)	339	209
Cash and cash equivalents held		14,865	17,831	11,907

Notes to the Consolidated Statement of Cash Flow

		6 months to	6 months to	12 months to
		30 June  2011	30 June  2010	31 December 2010
		(unaudited)	(unaudited)	(audited)
		€'000	€'000	€'000
(a) Cash flows from operating activities
Profit for the period		3,020	133	10,065
Adjustments for:
Depreciation		176	270	540
Amortisation of intangible assets		168	166	337
Impairment of discontinued operation		-	120	120
Share of profit of equity accounted investees		125	-	187
Share-based payment transactions		65	98	102
Income tax expense/(credit)		31	(978)	(894)
Other income - Carbon		-	-	(5,770)
Finance cost		447	810	1,240
Finance income		(620)	(650)	(1,393)
Foreign exchange loss/(gain) on translation		107	(753)	(1,315)
Interest received		27	47	83
Interest paid		(5)	(10)	(16)
Operating cash flows before movements in working capital		3,541	(747)	3,286
Changes in working capital
Decrease/(increase) in CDC assets		265	(473)	1,268
Decrease/(increase) in intangible assets		2,199	11	(2,712)
Decrease in prepayments		504	1,003	158
Increase in accrued income		(2,597)	(876)	(8,521)
Increase in trade and other receivables		(70)	(352)	(1,346)
Decrease in trade and other payables		(1,500)	(8,659)	(6,919)
Decrease in tax provision		-	(1,083)	(980)
Cash generated by operations		2,342	(11,176)	(15,766)

Notes

Significant accounting policies

Camco International Limited (the "Company") is a public company incorporated in Jersey under Companies (Jersey) Law 1991.  The address of its registered office is Channel House, Green Street, St Helier, Jersey JE2 4UH.  The consolidated interim financial report of the Company for the period from 1 January 2011 to 30 June 2011 comprises of the Company and its subsidiaries (together the "Group").

Basis of preparation

The annual financial statements of the Group for the year ended 31 December 2010 have been prepared in accordance with IFRSs as adopted by the EU ("Adopted IFRSs").  The interim set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU. The interim set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 December 2010.  They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2010.

This interim financial information has been prepared on the historical cost basis. The accounting policies applied are consistent with those adopted and disclosed in the annual financial statements for the period ended 31 December 2010.  The accounting policies have been consistently applied across all Group entities for the purpose of producing this interim financial report.

The financial information included in this document does not comprise of statutory accounts within the meaning of Companies (Jersey) Law 1991.  The comparative figures for the financial year ended 31 December 2010 are not the company's statutory accounts for that financial year within the meaning of Companies (Jersey) Law 1991. Those accounts have been reported on by the company's auditors and delivered to the Jersey Financial Services Commission. The report of the auditors was unqualified.

Estimates

The preparation of the interim financial report in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Presentation of Cash Flow Statement

Presentation of Reporting cash flows from operating activities has been changed from direct method (whereby major classes of gross cash receipts and gross cash payments are disclosed)  to the indirect method, (whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows) . Comparatives have been also changed to indirect method.

Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be  recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which  should be expected to qualify for recognition as a completed sale within one year from the date of  classification.

When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met,  regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

1   Segmental Reporting

Operating segments

The Group comprises of the following main reporting segments:

1.    Carbon: The Carbon Project Development teams provide CDC consultancy services on carbon asset development, commercialisation and portfolio management.

2.    Advisory: The Energy and Carbon Advisory teams provide strategic, commercial and technical expertise accrued over two decades to deliver low carbon energy and sustainable development solutions.

3.      Investments: The Clean Energy Project Development and Investment teams collaborate with industry, project developers, equipment providers and investor groups to create emissions-to-energy projects and maximise sustainable energy production across a range of industries; including agricultural methane, industrial energy efficiency, coal mine methane, municipal solid waste, biomass and landfill gas.

Inter segment transactions are carried out at arm's length.

	Carbon	Advisory	Investments	Eliminations	Total
	6 months to	6 months to	6 months to	6 months to	6 months to
	30 June 2011	30 June 2011	30 June 2011	30 June 2011	30 June 2011
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	€'000	€'000	€'000	€'000	€'000
Revenue	11,567	4,163	470	-	16,200
Inter-segment revenue	-	882	-	(882)	-
Total segment revenue	11,567	5,045	470	(882)	16,200
Segment gross profit	7,960	3,366	387	-	11,713
Segment result	5,264	736	(843)	-	5,157
Unallocated expenses					(1,958)
Share-based payments					(65)
Restructuring charges					-
Results from operating activities					3,134
Net finance income					42
Share of loss equity-accounted investees					(125)
Taxation					(31)
Profit for the period  from continuing operations					3,020
Discontinued operation					-
Profit for the period					3,020

1   Segmental Reporting (continued)

	Carbon	Advisory	Investments	Eliminations	Total
	6 months to	6 months to	6 months to	6 months to	6 months to
	30 June  2010	30 June  2010	30 June 2010	30 June 2010	30 June 2010
	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	€'000	€'000	€'000	€'000	€'000
Revenue	5,837	4,730	392	-	10,959
Inter-segment revenue	-	768	-	(768)	-
Total segment revenue	5,837	5,498	392	(768)	10,959
Segment gross profit	4,511	2,866	361	-	7,738
Segment result	1,014	402	(209)	-	1,207
Unallocated expenses					(2,024)
Share-based payments					(127)
Restructuring charges					(82)
Results from operating activities					(1,026)
Net finance income					630
Taxation					978
Profit for the period  from continuing operations					582
Discontinued operation					(449)
Profit for the period					133

	Carbon	Advisory	Investments	Eliminations	Total
	12 months to	12 months to	12 months to	12 months to	12 months to
	31  December 2010	31  December 2010	31  December 2010	31  December 2010	31  December 2010
	(audited)	(audited)	(audited)	(audited)	(audited)
	€'000	€'000	€'000	€'000	€'000
Revenue	20,380	9,191	465	-	30,036
Inter-segment revenue	-	1,967	-	(1,967)	-
Total segment revenue	20,380	11,158	465	(1,967)	30,036
Segment gross profit	14,444	5,762	348	-	20,554
Other income - Carbon	5,770	-	-	-	5,770
Segment result	12,286	789	(638)	-	12,437
Unallocated expenses					(3,847)
Share-based payments					(102)
Restructuring charges					(82)
Impairment of goodwill on acquisition					-
Results from operating activities					8,406
Net finance expense					1,401
Share of loss of equity accounted investees					(187)
Taxation					894
Profit  for the period from continuing operations					10,514
Discontinued operation					(449)
Profit for the period					10,065

2   Profit per share

Profit per share attributable to equity holders of the company is as follows;

	30 June 2011	30 June 2010	31 December 2010
	(unaudited)	(unaudited)	(audited)
	€ cents	€ cents	€ cents
	per share	per share	per share
Basic profit per share
From continuing operations	1.62	0.33	5.93
From continuing and discontinued operation	1.62	0.08	5.67
Diluted profit per share
From continuing operations	1.62	0.33	5.92
From continuing and discontinued operation	1.62	0.08	5.67
Profit used in calculation of basic and diluted loss per share-no dilutive effects	€'000	€'000	€'000
From continuing operations	3,020	582	10,514
From continuing and discontinued operation	3,020	133	10,065
Weighted average number of shares used in calculation
Basic	185,925,243	173,955,140	177,375,319
Diluted	185,925,243	173,955,140	177,648,693

	30 June 2011	30 June 2010	31 December 2010
	(unaudited)	(unaudited)	(audited)
Weighted average number used in calculation-basic:	Number	Number	Number
Number in issue at start of period	185,618,253	173,007,585	173,007,585
Effect of own shares held	(2,772,141)	(4,141,139)	(4,627,388)
Effect of shares issued in the period	741,746	2,367,826	3,718,830
Effect of share options exercised	2,337,385	2,720,868	5,276,292
Weighted average of diluted shares at end of period	185,925,243	173,955,140	177,375,319
Weighted average number used in calculation-diluted:	Number	Number	Number
Number in issue at start of period	185,618,253	173,007,585	173,007,585
Effect of own shares held	(2,772,141)	(4,141,139)	(4,627,388)
Effect of shares issued in the period	741,746	2,367,826	3,718,830
Effect of share options exercised	2,337,385	2,720,868	5,276,292
Dilutive effect of share options granted	-	-	273,374
Weighted average of diluted shares at end of period	185,925,243	173,955,140	177,648,693

Appendix

Supplementary information to Trading Statement - this does not form part of the Interim Financial Statements

	EU-ETS Eligible Portfolio as of 30 June 2011
Predicted Volume (m tonnes)	2008-2012			2013-2020
	Delivered or Title Sold	To Deliver and Title Retained		To Deliver
			Total
In specie portfolio	9.0	17.6	26.6	41.5
Revenue share portfolio	8.6	13.8	22.5	0.4
In specie portfolio - revenue recognised	9.0	9.41	18.4	3.6
Revenue share portfolio - revenue recognised	8.6	11.9	20.5	0.0
1 Camco has agreed sales for 4.3 million of these credits but will transfer title and receive payment upon delivery.
	EU-ETS Eligible Portfolio as of 31 December 2010
Predicted Volume (m tonnes)	2008-2012			2013-2020
	Delivered or Title Sold	To Deliver and Title Retained		To Deliver
			Total
In specie portfolio	7.1	19.3	26.4	30.1
Revenue share portfolio	5.6	18.2	23.8	0.0
In specie portfolio - revenue recognised	7.1	9.92	17.0	0.3
Revenue share portfolio - revenue recognised	5.6	14.8	20.4	0.0
2 Camco has agreed sales for 4.6 million of these credits but will transfer title and receive payment upon delivery.

Accrued Income to Revenue Reconciliation

Revenue from new projects recognised in the period3		2011     €'000         6,379
Revenue from projects recognised at 31 December 20104		5,188
Carbon segmental revenue		11,567

		30 June  2011	31 December 2010
		(unaudited)	(audited)
		€'000	€'000
Prepayments		2,739	3,261
Accrued income - CDC accruals		43,236	40,907
Accrued income - other		1,562	1,342
Prepayments and accrued income		47,537	45,510
		30 June   2011	31 December 2010
		(unaudited)	(audited)
		€'000	€'000
Trade payables and non-CDC accruals		4,572	3,944
Other accruals - CDC accruals		9,836	9,207
Payment on account received		7,710	10,200
Deferred income		1,512	1,727
Trade and other payables		23,630	25,078

³ Initial Revenue Recognition

Once Camco has completed a project by achieving the key regulatory milestone of registration and fulfilment of all technical services to secure successful operation, revenue recognition is triggered.   Revenue is initially recognised as accrued income, the amount of which is a discounted cash flow based on the predicted volume of carbon credits to be delivered to Camco and the price at which those credits can be commercialised.  This may either be fixed contractually or float with the carbon market.

⁴ Subsequent Revenue Movements

As the project delivers credits, Camco will commercialise these and obtain cash in return, at this point cash (or an account receivable) is recognised and the corresponding accrued income derecognised. Alternatively, Camco may forward sell the title of credits to deliver on a project, in which case cash is received in advance of the credits but the corresponding derecognition of accrued income occurs in the same manner. If the price achieved for the sale of the credits is above that initially recognised on the credits, then additional revenue will be recognised; if it is lower, then a reduction in revenue will occur. Any amendments to credit sale or purchase contracts may have a similar effect.

If the predicted volume of carbon credits to be delivered by a project increases or decreases, both revenue and accrued income will increase or decrease with it. The same will happen with the forecast carbon market price if the project does not have a fixed contractual sales price.

A project may be de-risked as it matures and there is greater security over the credit stream, leading to additional revenue.  As cash receipts grow closer, the discount made at the point of initial revenue recognition also unwinds however this is recognised as interest income.

 

END

 

 

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