Half Yearly Report

RNS Number : 4348S

Camco Clean Energy PLC

24 September 2014

 

24 September 2014

Camco Clean Energy plc

("Camco Clean Energy" or the "Company")

Interim Results 2014

Camco Clean Energy plc (AIM: CCE), the clean energy and energy storage company,today announces its results for the six months to 30 June 2014.

Highlights:

·      Signing of manufacturing agreement with Jabil Circuit Inc. ("Jabil") and REDT Clean Energy Storage ("REDT")

o  On track to deliver first customer units in Q1 2015

·      Africa Clean Energy business jointly appointed as investment advisor to the prestigious Green Africa Power LLP ("GAP") fund

·      Two operating US biogas assets continue to perform well

·      Portfolio of US carbon credits delivering in 2014 as anticipated with further additional deliveries expected before the end of the year providing a useful contribution to cash flow

·      Significantly reduced net loss of €1.0m (H1 2013: net loss €2.7m), result comfortably ahead of management expectations

·      Cash and cash equivalents of €3.0m (FY 2013: €4.5m) not including the proceeds of €1.9m received in July 2014 from the placing and open offer

·      Revenue earned in the period of €4.8m (H1 2013: €5.0m) and gross profit of €2.5m (HY 2013: €2.5m) reflecting an increase from US activities including the Twin Falls Facility acquired at the end of 2013 and the start of the refocusing of the Africa activities towards higher margin activity

Scott McGregor, CEO of Camco Clean Energy, said:

"This has been a period of considerable transformation for Camco. Our commercial developments in 2014 have so far exceeded the upper end of our expectations and our three business units have very exciting prospects. We look forward to the future with a high degree of confidence and are very excited about the opportunities in the pipeline. We will continue to focus on a tight control of costs so that the growth we anticipate from our core businesses flows through to results for the benefit of all shareholders."

Enquiries:

Camco Clean Energy	[phone]
Scott McGregor, Chief Executive Officer
Jonathan Marren, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)	[phone]
Andrew Craig
Ben Wright
Newgate Threadneedle (Financial PR)
Caroline Forde, Josh Royston, Hilary Buchanan, Edward Treadwell	[phone]

Chief Executive's Review

OVERVIEW

We are very pleased with the corporate developments achieved in 2014 and we are excited about the prospects for all three of our core business units.

The signing of the manufacturing agreement with Jabil Circuit Inc. has given our REDT Storage business the cost effective manufacturing platform required to achieve volume commercial sales and we look forward to the first customer units being delivered in Q1 next year.

During the period our Africa Clean Energy business was jointly appointed as investment advisor to the prestigious GAP fund and a number of projects are under evaluation. We are actively looking at adding further complementary mandates to build on our over 25 years' expertise in the region and sector, enhancing our position as a leading manager in that area.

In addition, our two operating US biogas assets continue to perform well. In particular the Twin Falls Facility is trading well ahead of the Board's expectations at the time of acquisition at the end of 2013. Finally, our portfolio of US carbon credits are delivering in 2014 as anticipated with further additional deliveries expected before the end of the year, providing a contribution to cash flow.

We have recorded a significantly reduced loss as a result of tight cost control, a full period of income from the Jerome and Twin Falls Facilities, and a contribution from the legacy CER Carbon Business.

FINANCIAL HIGHLIGHTS for the period ending 30 June 2014

	Unaudited H1 2014	Unaudited  H1 2013	Audited FY 2013
	€'m	€'m	€'m
Revenue	4.8	5.1	12.3
Gross Profit/(loss)	2.5	2.5	7.0
Administrative expenses	(3.4)	(4.8)	(9.3)
Results from operating activities	(1.0)	(2.7)	(3.7)
Total comprehensive income	(1.0)	(2.8)	(3.8)

·       Significantly reduced net loss of €1.0m (H1 2013: net loss €2.7m); result comfortably ahead of management expectations.

·       Cash and cash equivalents of €3.0m (FY 2013: €4.5m) not including the proceeds of €1.9m received in July 2014 from the placing and open offer.

·       Revenue earned in the period of €4.8m (H1 2013: €5.0m) and gross profit of €2.5m (HY 2013: €2.5m) reflecting an increase from US activities including the Twin Falls Facility acquired at the end of 2013 and the start of the refocusing of the Africa activities towards higher margin activity (e.g. the recently announced investment advisory mandate for GAP), the benefits of which will start to come through in the second half of 2014.

·       Administration expenses across the Group reduced to €3.4m (HY 2013: €4.8m). Administration expenses include depreciation on the Jerome and Twin Falls facilities of €0.5m (H2 2013: €0.4m solely in respect to the Jerome Facility). 

2014 OPERATIONAL HIGHLIGHTS

·       REDT* Clean Energy Storage

o  Manufacturing agreement (the "Agreement") signed with Jabil, one of the world's leading manufacturing solutions companies.  Agreement provides a scale manufacturing capability that enables REDT to accelerate its market deployment plans and expects to be in a position to commence commercial sales in the near future. Jabil contracted detailed technical due diligence, patent rights protection and market demand research on REDT's product prior to entering into the Agreement.

o  Completion of the concept design of production optimised range of REDT products. The modular production range will allow REDT to provide systems for customers across multiple storage applications from 5kW to 5MW power batteries and from three hours to 12 hours of stored energy.

o  Production of the units for the Gigha 1.26MWh contract has been moved to Jabil's manufacturing facility and the product design changed from a bespoke building design to seven 15kW-180kWh containerised units.  The change in design has significant advantages for the project and also allows REDT to accelerate the commoditisation of its large scale product range, a process which could otherwise have taken up to two years.

o  Supply materials have been ordered for the first ten customer production 5-30kWh units.

·       Africa Clean Energy

o  Jointly selected by GAP as Investment Advisors for an African renewables investment fund following a highly competitive process

o  Growing pipeline of similar complementary activities giving confidence that alongside GAP, the business can be transitioned towards higher margin activity validating Camco Clean Energy's extensive experience in the African renewables sector.

·       US Clean Energy

o  Twin Falls Facility (acquired in December 2013) trading ahead of forecasts made at the time of acquisition; Jerome Facility also performing to expectations.

o  Portfolio of agricultural methane methodology carbon credits ("CCOs") starting to issue in volume with further material issuances expected in the second half of the year

* Camco Clean Energy plc, on a fully diluted basis, has an economic interest of 49% in REDT.

OUTLOOK

We look forward to the future with a high degree of confidence and are very excited about the opportunities in the pipeline. We will continue to focus on a tight control of costs so that the growth we anticipate from our core businesses flows through to results for the benefit of all shareholders.

Financial Review

Change in segmentation for presentation of financial results

To reflect the change in focus of the business since the completion of the restructuring at the end of 2013, the Group reports these results in new segments being US Activities, Africa Activities, REDH (CCE) Activities and Group. The segments are described in more detail in the relevant sections below.

Overall Group result

The Group reported a significantly reduced total comprehensive loss of €1.0m (H1: loss of €2.8m) which was principally due to a fall in administration expenses of €1.5m from H1 2013 to H1 2014.

Gross profit remained at €2.5m (H1 2013: €2.5m) and €7.0m in FY 2013) after an increase in income from US Activities, a reduction from Africa Activities and a only small decrease in Group Activities notwithstanding that the income generating element of Group Activities was effectively in hibernation in H1 2014 (as opposed to being active in H1 2013).

US Activities segment

The US Activities segment comprises our US Clean Energy projects business (being the Jerome Facility and Twin Falls facility), the US Carbon activities as well as the wider US project development activities.

US Clean Energy projects business

Revenue for the Jerome Facility was €1.03m (HY 2013: €0.92m excluding a one-off receipt received in 2013 of €0.3m in connection with the 2012 operation of the facility) and other income was €0.14m (HY 2013: €0.15m) reflecting the amortisation of deferred income in connection with the grant received in 2012. Cost of sales were €0.40m (HY 2013: €0.41m). Administration expenses were €0.53m (HY 2013: €0.55m) which includes depreciation of €0.43m (HY 2013: €0.45m). Interest expense for the period was €0.37m (HY 2013: €0.39m).

We were extremely pleased with the operation of the Twin Falls Facility with revenue being €0.43m in the first six months of our ownership. Cost of sales were €0.24m and administration expenses were €0.12m which includes depreciation of €0.06m.

As with 2013, we do continue to expect to see seasonality in the revenue from power generated from the Jerome facility with the second half of the year benefiting from the higher prices set out in the power purchase agreement. We also anticipate this being the case with the Twin Falls Facility.

Interest paid on the outstanding loan balance secured against the Jerome Facility was €0.37m (H1 2013: €0.4m) and amortization reduced to €0.10m (H1 2013 €0.19m) increasing the net cash generated by the facility.

US Carbon

The US Carbon business recorded revenues of €0.86m (H1 2013 €nil) and cost of sales of €0.45m (H1 2013 €nil) giving a gross profit of €0.41m.This revenue derives from the sale of credits delivered from the agricultural methane projects issued under the California Program (California Carbon Offsets - "CCOs").

As we referred to in our annual results, the CCOs under the agricultural methane methodology only started to be issued as CCOs towards the end of the second half of 2013 with the majority of our agricultural methane methodology credits having not had CCOs issued by the end of 2013. As we anticipated, such issuances have started to occur in H1 2013 and we have already been notified of further material issuances in H2 2014. Our policy remains to sell CCOs when they are issued and where possible lock-in in advance prices to mitigate potential CCO risk.

Africa Activities segment

The Africa Activities segment contains the clean energy consulting operation in Africa as well as the costs associated with setting up the recently won GAP mandate (with associated income from H2 2014).

The Africa Clean Energy Consulting business includes the five Group offices in Africa, the principle ones being Dar es Salaam (Tanzania), Johannesburg (South Africa) and Nairobi (Kenya).

Revenue for the period was €0.81m (H1 2013: €1.73m) and cost of sales were €0.33m (H1 2013: €0.85m). Administration expenses were €0.65m (H1 2013: €0.73m). In addition, there was a write back of a tax provision of €0.68m. At the end of the year, the Africa Clean Energy Consulting business had work in progress of €0.7m (FY 2013: €0.5m), deferred income of €0.1m (FY 2013: €0.2m) and direct project cost accruals of €0.2m (FY 2013: €0.2m). The major portion of the work in progress balance was received in cash by the end of August 2014.

The H1 2014 administration expenses include internal costs of c€0.1m incurred in refocusing the Africa activities towards higher margin activity (e.g. the recently announced investment advisory mandate for GAP which was secured in the first half of the year). Revenue will be earned in H2 2014 and beyond from these activities.

REDH (CCE) segment

The REDH (CCE) Activity reflects the portion of the Group's overhead spent on managing the REDH business.

In H1 2013 and FY 2013, the Group did not directly allocate internal cost to this activity and the prior year comparative numbers reflect limited external costs incurred and typically recovered from REDH.

However, as a result of the increasing focus on, and importance of, REDH, significant additional time and resource is being dedicated to this business. This segment reflects such internal cost but does not take account of the actual trading activities of REDH itself.

Group segment

The Group segment reflects the remaining Group costs as well as the legacy carbon business from which to date we have still been able to generate income and cash flow to help offset the overhead activities.

This segment recorded a gross profit of €0.74m (H1 2013: €0.56m) on revenues of €1.61m (H1 2013: €1.83m). This reflects income from our hibernated CDM carbon business and the EU ETS compliance services business.

Administration expenses were €0.89m (H1 2013: €2.61m) which in part reflects certain of these costs now being allocated to the REDT (CCE) Segment but the majority of the difference from strict cost control.

Share of income from REDH

For H1 2014, REDH recorded revenues of €1.15m with cost of sales of €0.74m leading to a gross profit of €0.41m. Administration expenses were €0.33m leading to a net profit if €0.07m. The Group's share of this profit is €0.04m. This income and activity reflect the work being done principally on the1.26MWh utility storage facility contract on the island of Gigha which is expected to continue until June 2015.

Cash and cash equivalents

At 30 June 2014, the Group had cash and cash equivalents of €3.0m (FY 2013: €4.5m) and no unsecured loans (FY 2013: €Nil).

This balance includes cash held in a debt reserve account in relation to the Jerome Facilityof €1.175m (FY 2013: €1.0m) which is not available to the Group for general working capital purposes.

The key movements in cash during H1 2014 were: the repayment of borrowings (€0.1m); receipt from  disposal of plant, property & equipment (€0.1m); interest paid (€0.4m); and cash absorbed from operations (€1.1m).

Consolidated Statement of Financial Position

 at 30 June 2014

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Non-current assets
Property, plant and equipment		15,327	15,496	15,581
Intangible assets - carbon in specie		-	320	-
Investments in associates and joint ventures		2,636	2,713	2,576
Other investments		-	3	-
Deferred tax assets		27	21	32
		17,990	18,553	18,189
Current assets
Prepayments and accrued income	5	1,842	1,462	1,452
Trade and other receivables	6	880	1,311	1,368
Cash and cash equivalents	7	2,999	8,301	4,472
		5,721	11,074	7,292
Total assets		23,711	29,627	25,481
Current liabilities
Loans and borrowings	8	(327)	(481)	(492)
Trade and other payables	9	(3,493)	(6,520)	(4,162)
Deferred Income	10	(423)	(307)	(434)
Tax payable		(180)	(230)	(239)
		(4,423)	(7,538)	(5,327)
Non-current liabilities
Loans and borrowings	8	(10,057)	(10,737)	(9,884)
Deferred Income	10	(3,929)	(4,407)	(4,024)
		(13,986)	(15,144)	(13,908)
Total liabilities		(18,409)	(22,682)	(19,235)
Net assets		5,302	6,945	6,246

Consolidated Statement of Financial Position (continued)

 at 30 June 2014

		H1 2014 (unaudited)		H1 2013 (unaudited)		FY 2013 (audited)
		€'000		€'000		€'000
Equity attributable to equity holders of the parent
Share capital		2,081		2,081		2,081
Share premium		75,640		75,640		75,640
Share-based payment reserve		701		301		646
Retained earnings		(73,337)		(71,392)		(72,330)
Translation reserve		217		329		209
Own shares		-		(14)		-
Total equity		5,302		6,945		6,246

Consolidated Statement of Comprehensive Income

for the six months to 30 June 2014

			Restated
		H1 2014	H1 2013	FY 2013
Continuing operations		(unaudited)	(unaudited)	(audited)
		€'000	€'000	€'000
			-
Revenue		4,843	5,098	12,305
Cost of sales		(2,351)	(2,596)	(5,336)
Gross profit		2,492	2,502	6,969
Other income	3	84	590	1,377
Other income - government grant income		139	145	276
Administration expenses		(3,356)	(4,820)	(9,347)
Impairment of investment in associates and joint ventures		-	-	(3)
Restructuring charges		-	-	(783)
Impairment of development costs		-	-	(90)
Impairment of receivables		(85)	-	(109)
Results from operating activities		(726)	(1,583)	(1,710)
Financial income		8	175	169
Financial expenses		(371)	(683)	(1,447)
Net financing income		(363)	(508)	(1,278)
Share of profit/(loss) of equity accounted investees		36	(578)	(603)
(Loss)/ profit before tax		(1,053)	(2,669)	(3,591)
Income tax		46	(68)	(84)
(Loss)/ profit from continuing operations		(1,007)	(2,737)	(3,675)
Discontinued operations
(Loss)/ profit from discontinued operation (net of tax)		-	(72)	(72)
(Loss)/profit for the period		(1,007)	(2,809)	(3,747)
Other comprehensive income
Exchange differences on translation of foreign operations		8	25	(95)
Total comprehensive income for the period		(999)	(2,784)	(3,842)
Loss/ profit for the period attributable to:
Equity holders of the parent		(1,007)	(2,809)	(3,747)
(Loss)/profit for the period		(1,007)	(2,809)	(3,747)
Total comprehensive income attributable to:
Equity holders of the parent		(999)	(2,784)	(3,842)
Total comprehensive income for the period		(999)	(2,784)	(3,842)

Consolidated Statement of Comprehensive Income

for the six months to 30 June 2014

Basic (loss)/ profit per share in € cents	Note
From continuing operations	2	(0.48)	(1.41)	(1.89)
From continuing and discontinued operations	2	(0.48)	(1.45)	(1.93)
Diluted (loss) / profit per share in € cents
From continuing operations	2	(0.48)	(1.41)	(1.89)
From continuing and discontinued operations	2	(0.48)	(1.45)	(1.93)

Consolidated Statement of Changes in Equity (continued)

for the 6 months to 30 June 2014

	Share Capital	Share premium	Share-based payment reserve	Retained Earnings		Translation      reserve			Own shares	Total parent equity	Total equity
	€'000	€'000	€'000	€'000	€'000			€'000		€'000		€'000
Balance at 1 January 2014	2,081	75,640	646	(72,330)	209			-		6,246		6,246
Total comprehensive income for the period
Profit for the period	-	-	-	(1,007)	-			-		(1,007)		(1,007)
Other comprehensive income
Foreign currency translation differences	-	-	-	-	8			-		8		8
Total comprehensive income for the period	-	-	-	(1,007)	8			-		(999)		(999)
Transactions with owners, recorded directly in equity Contributions by and distributions to owners
Share-based payments	-	-	55	-	-			-		55		55
Issuance of shares	-	-	-	-	-			-		-		-
Own shares	-	-	-	-	-			-		-		-
Total contributions by and distributions to owners	-	-	55	-	-			-		55		55
Total transaction with owners	-	-	55	-	-			-		55		55
Balance at 30 June 2014	2,081	75,640	701	(73,337)	217			-		5,302		5,302

Consolidated Statement of Changes in Equity

for the six months to 30 June 2013

	Share Capital	Share premium	Share-based payment reserve	Retained Earnings		Translation reserve			Own shares	Total parent equity	Total equity
	€'000	€'000	€'000	€'000	€'000			€'000		€'000		€'000
Balance at 1 January 2013	1,897	75,565	301	(68,583)	304			(14)		9,470		9,470
Total comprehensive income for the period
Profit for the period	-	-	-	(2,809)	-			-		(2,809)		(2,809)
Other comprehensive income
Foreign currency translation differences	-	-	-	-	25			-		25		25
Total comprehensive income for the period	-	-	-	(2,809)	25			-		(2,784)		(2,784)
Transactions with owners, recorded directly in equity Contributions by and distributions to owners
Issuance of shares	184	75	-	-	-			-		259		259
Own shares	-	-	-	-	-			-		-		-
Total contributions by and distributions to owners	184	75	-	-	-			-		259		259
Total transaction with owners	184	75	-	-	-			-		259		259
Balance at 30 June 2013	2,081	75,640	301	(71,392)	329			(14)		6,945		6,945

Consolidated Statement of Changes in Equity (continued)

for the year ended 31 December 2013

	Share capital	Share premium	Share-based    payment reserve	Retained earnings	Translation reserve	Own shares	Total parent equity	Total equity
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Balance at 1 January 2013	1,897	75,565	301	(68,583)	304	(14)	9,470	9,470
Total comprehensive income for the year
Loss for the year	-	-	-	(3,747)	-	-	(3,747)	(3,747)
Other comprehensive income
Foreign currency  translation differences	-	-	-	-	(95)	-	(95)	(95)
Total comprehensive income for the year	-	-	-	-	-	-	(3,842)	(3,842)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payments	-	-	359	-	-	-	359	359
Issuance of shares	184	75	-	-	-	-	259	259
Own shares	-	-	(14)	-	-	14	-	-
Total contributions by and distributions to owners	184	75	345	-	-	14	618	618
Balance at 31 December 2013	2,081	75,640	646	(72,330)	209	-	6,246	6,246

Consolidated Statement of Cash Flow

for the six months to 30 June 2014

Continuing and discontinued operations
		H1 2014	H1 2013	FY 2013
		(unaudited)	(unaudited)	(audited)
	Note	€'000	€'000	€'000
Cash flows from operating activities
Cash generated by operations	(a)	(1,104)	(3,175)	(4,487)
Income tax paid		-	-	-
Net cash from operating activities		(1,104)	(3,175)	(4,487)
Cash flows from investing activities
Disposal of discontinued operations, net of cash disposed		-	(72)	(72)
Proceed from sales of investments		-	4,613	4,357
Loan to joint venture		-	(106)	(200)
Acquisition of property, plant & equipment		-	-	(1,973)
Disposal of property, plant & equipment		84	724	1,241
Net cash from investing activities		84	5,159	3,353
Cash flows from financing activities
Proceeds from the issue of share capital		-	259	259
Repayment of borrowings		(105)	(4,507)	(4,711)
Interest received		9	7	11
Interest paid		(369)	(495)	(850)
Net cash from financing activities		(465)	(4,736)	(5,291)
Net increase in cash and cash equivalents		(1,485)	(2,752)	(6,425)
Cash and cash equivalents at 1 January		4,472	11,087	11,087
Effect of exchange rate fluctuations on cash held		12	(34)	(190)
Cash and cash equivalents held		2,999	8,301	4,472

Notes to the Consolidated Statement of Cash Flow

		H1 2014	H1 2013	FY 2013
		(unaudited)	(unaudited)	(audited)
		€'000	€'000	€'000
(a) Cash flows from operating activities
Loss for the period		(1,007)	(2,809)	(3,747)
Adjustments for:
Depreciation		504	648	1,097
Gain on sale of fixed assets		(84)	(151)	(68)
Amortisation of deferred income		(139)	(146)	(276)
Impairment of investments in associates and joint ventures		-	-	3
Impairment of receivables		85	-	109
Share of (profit)/ loss of equity accounted investees		(36)	25	603
Loss on sale of discontinued operation, net of tax		-	72	72
Gain on sale of investment		-	-	(547)
Gain on sale of subsidiary		-	-	(762)
Share based payment transaction		55	-	359
Income tax expense		(55)	57	56
Finance cost		360	489	839
Foreign exchange loss/(gain) on translation		(118)	25	229
Restructuring costs		-	-	783
Impairment loss on development costs		-	40	90
Impairment of project plant and equipment		-	108	-
Operating cash flows before movements in working capital		(435)	(1,642)	(1,160)
Changes in working capital
(Increase)/decrease in intangible assets		-	(7)	313
(Increase)/decrease in prepayments		(185)	(69)	103
Decrease/(increase) in trade and other receivables		402	(61)	(154)
Change in CDC accruals and CDC accrued income		(385)	(1,328)	(5,733)
(Increase)/decrease in accrued income - Non CDC		(218)	189	(447)
Decrease/(increase) in trade and other payables		(283)	(167)	2,591
(Increase) in financial assets		-	(90)	-
Cash generated by operations		(1,104)	(3,175)	(4,487)

Notes

Significant accounting policies

Camco Clean Energy plc (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 2014 to 30 June 2014 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 2013 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 2013.  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 2013.

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 2013.  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 2013 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.

Restatement

During the prior year, a decision was taken by management to disclose income from the US Government Grant separately.  In the Consolidated Statement of Comprehensive Income, €145,000 was reclassified from Revenue to Other Income in HY 2013.

During the year, a reclassification error was noted in the Statement of Comprehensive Income.  Management took the decision to reduce Other Income by €181,000 and reduce the Share of loss of equity accounted investees by the same amount.

1    Segmental Reporting

Operating segments

The Group comprises of the following reporting segments:

1.     US Activities: In America, CCE develops and designs and also builds, owns and operates (BOO) biogas projects generating energy from organic waste.  The company also develops Californian offset projects.  CCE currently owns the Jerome and Twin Falls facilities which produce sustainable energy  generated by using agricultural methane from dairy farms.

2.     Africa Activities: CCE Africa manages investment of public and private finance into clean energy projects.  CCE has five offices across Africa and an office in London which provides consulting services, finance and develops clean energy projects across Africa.  Currently this segment operates an investment advisory mandate to manage a debt facility for Green Africa Power (GAP).  

3.      REDH (CCE): The REDH (CCE) segment comprises aspects of the Group's overheads allocated to the management and development of the REDT energy storage business.

4.      Other: This segment contains all remaining Group costs in addition to the Group's remaining carbon business.

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

		US Activities	Africa  Activities	REDH (CCE)	Group	Eliminations	Total
		H1 2014	H1 2014	H1 2014	H1 2014	H1 2014	H1 2014
		(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
		€'000	€'000	€'000	€'000	€'000	€'000
Segment revenue		2,413	808	25	1,611	(14)	4,843
Segment gross margin		1,248	480	25	739	0	2,492
Other Income - gain on disposal		84	-	-	-	-	84
Other Income - deferred income		139	-	-	-	-	139
Segment administrative expenses		(1,338)	(654)	(451)	(858)	-	(3,301)
Restructuring charges		-	-	-	-	-	-
Impairment of development costs		-	-	-	-	-	-
Impairment of investment		-	-	-	-	-	-
Segment result		133	(174)	(426)	(119)	-	(586)
							-
Unallocated income - gain on disposal
Share-based payments							(55)
Impairment of receivables							(85)
Results from operating activities							(726)
Finance income							8
Finance expense							(371)
Share of profit of equity accounted investees							36
Taxation							46
(Loss) from discontinued operation (net of income tax)							(1,007)
Loss  for the period

		Restated US Activities	Restated Africa  Activities	Restated REDH (CCE)	Restated Group	Restated Total
		FY 2013	FY  2013	FY  2013	FY  2013	FY  2013
		(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
		€'000	€'000	€'000	€'000	€'000
Segment revenue		3,263	2,929	61	6,052	12,305
Segment gross margin		1,748	1,348	61	3,812	6,969
Other Income - gain on disposal		68	-	-	-	68
Other Income - deferred income		276	-	-	-	276
Segment administrative expenses		(2,672)	(1,275)	(46)	(4,995)	(8,988)
Restructuring charges		-	-	-	(783)	(783)
Impairment of development costs		(90)	-	-	-	(90)
Impairment of investment		-	-	-	(3)	(3)
Segment result		(670)	73	15	(1,969)	(2,551)
Unallocated income - gain on disposal						1,309
Share-based payments						(359)
Impairment of receivables						(109)
Results from operating activities						(1,710)
Finance income						169
Finance expense						(1,447)
Share of loss of equity accounted investees						(603)
Taxation						(84)
(Loss) from discontinued operation (net of income tax)						(72)
Loss for the period						(3,747)

		Restated US Activities	Restated Africa  Activities	Restated REDH (CCE)	Restated Group	Restated Total
		H1 2013	H1 2013	H1 2013	H1 2013	H1 2013
		(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
		€'000	€'000	€'000	€'000	€'000
Segment revenue		1,506	1,729	31	1,830	5,097
Segment gross margin		1,028	878	31	565	2,502
Other Income - gain on disposal		43	-	-	-	43
Other Income - deferred income		145	-	-	-	145
Segment administrative expenses		(1,453)	(730)	(24)	(2,613)	(4,820)
Restructuring charges		-	-	-	-	-
Impairment of development costs		-	-	-	-	-
Impairment of investment		-	-	-	-	-
Segment result		(237)	148	7	(2,048)	(2,130)
						-
Unallocated income - gain on disposal						547
Share-based payments						-
Impairment of receivables						-
Results from operating activities						(1,583)
Finance income						175
Finance expense						(683)
Share of loss of equity accounted investees						(578)
Taxation						(68)
(Loss) from discontinued operation (net of income tax)						(72)
Loss for the period						(2,809)

2    Profit/(loss) per share

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

	H1 2014	H1 2013	FY 2013
	(unaudited)	(unaudited)	(audited)
	€ cents	€ cents	€ cents
	per share	per share	per share
Basic (loss)/ profit profit per share
From continuing operations	(0.48)	(1.41)	(1.89)
From continuing and discontinued operation	(0.48)	(1.45)	(1.93)
Diluted (loss)/ profit per share
From continuing operations	(0.48)	(1.41)	(1.89)
From continuing and discontinued operation	(0.48)	(1.45)	(1.93)
(Loss)/ profit used in calculation of basic and diluted loss per share-no dilutive effects	€'000	€'000	€'000
From continuing operations	(1,007)	(2,737)	(3,675)
From continuing and discontinued operation	(1,007)	(2,809)	(3,747)
Weighted average number of shares used in calculation
Basic	208,127,166	194,064,665	194,316,128
Diluted	208,127,166	194,064,665	194,316,128

	H1 2014	H1 2013	FY 2013
	(unaudited)	(unaudited)	(audited)
Weighted average number used in calculation (basic and diluted):	Number	Number	Number
Number in issue at start of period	208,127,166	189,678,093	189,678,093
Effect of new shares issued in the period	-	4,638,035	4,638,035
Weighted average of basic shares at end of period	208,127,166	194,316,128	194,316,128

3    Other income

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Net gain on disposal of investment		-	547	547
Net gain on disposal of subsidiary		-	-	762
Net gain on disposal of fixed asset		84	43	68
		84	590	1,377

4    Share based payments

During the period, the Group operated share-based incentive plans called the Long-Term Incentive Plan (the "LTIP") and the Camco 2006 Executive Share Plan.  The expense recognised in the period in respect to the plans is set out below.

 

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Long-Term Incentive Plan		-	-	-
Camco 2006 Executive Share Plan		55	-	359
		55	-	359

The expense in relation to options currently granted under the plans is being recorded in 2013 and 2014.  No further expenses associated with these options is expected to be incurred in 2015 or beyond.

5    Prepayments and accrued income

		H1 2014 (unaudited)	H1 2013  (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Prepayments		350	292	164
Accrued income - CDC accruals		208	-	265
Accrued income - US Carbon from Jerome Facility and Twin Falls Facility		548	406	503
Accrued income - other		736	764	520
		1,842	1,462	1,452

6    Trade and other receivables

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Trade receivables		445	912	611
Other receivables		435	399	535
Cash on deposit against bank guarantee		-	-	222
		880	1,311	1,368

7    Cash and cash equivalents

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Cash on deposit		1,824	5,037	3,492
Cash held for restricted use*		1,175	3,264	980
Cash and cash equivalents		2,999	8,301	4,472

* Included within cash and cash equivalents is a debt reserve balance of €1,175,000 (FY 2013: €980,000; H1 2013: €812,000) in relation to the Jerome facility.

At H1 2013, the balance also included €2,318,000 held in an Escrow account subject to the completion of the acquisition of the Twin Falls Facility.

8    Loans and borrowings

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
Non-current liabilities		€'000	€'000	€'000
Secured loans *		10,057	10,737	9,884
		10,057	10,737	9,884
Current liabilities
Secured loans *		327	481	492
		327	481	492
Total Secured loans		10,384	11,218	10,376

* The loans are secured are all held by and secured against the assets and operations of the Jerome Facility.

9    Trade and Other Payables

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Trade payables and non CDC accruals		2,633	1,683	2,917
Other accruals - CDC accruals		860	4,837	1,245
		3,493	6,520	4,162

10  Deferred Income

		H1 2014 (unaudited)	H1 2013 (unaudited)	FY 2013 (audited)
		€'000	€'000	€'000
Non-current liabilities
Deferred income - grant		3,929	4,407	4,024
		3,929	4,407	4,024
Current liabilities
Deferred income - grant		279	292	276
Deferred income - other		144	15	158
		423	307	434

11  Post Balance Sheet Events

On 15 July 2014, the Company announced that it raised €1.25 million through the issue of 25,000,000 new ordinary shares at 4.0 pence (approximately €0.05) per share to new and existing investors ("Placing").  In addition, the Company raised an additional €0.65m through the issue of 13,007,947 ordinary shares at 4.0 pence (approximately €0.05) per share through an open offer to existing shareholders ("Open Offer").

 

END

 

 

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