Interim Results

RNS Number : 0466M

Camco International Ltd

12 September 2012

Camco International Limited

("Camco" or the "Company")

Interim Results 2012

Camco International Limited (AIM: CAO), a global developer of clean energy projects and solutions to reduce emissions today announces its results for the six months to 30 June 2012.

Scott McGregor, CEO of Camco said:

"Camco's business has developed well during the year, returning to profit and generating cash.

"In H1 we continued to deliver on our strategy of developing and owning clean energy assets with success in North America and Asia. With proven project development expertise built up over 20 years, Camco is well positioned to deliver on our strategic goal of becoming a leading developer and owner of clean energy projects."

"Clean energy projects will provide the Company with stable revenue streams from power production complementing our existing carbon business which we have successfully restructured to deliver returns even in a low carbon price environment and combined create long-term shareholder value."

FINANCIAL HIGHLIGHTS for the period ending 30 June 2012

· Adjusted net cash⁽¹⁾ of €11.7 million increased from year end representing 5.0 pence per share (31 Dec 2011: €8.0 million; 30 June 2011: €14.9 million)

· Additional 3.1 pence per share of net cash⁽²⁾ within Camco South East Asia

	H1 2012	FY 2011	H1 2011
	€'000	€'000	€'000
Revenue earned in the period (excluding carbon price fair value adjustment)	12.2	10.2	7.1
Carbon price fair value adjustment	(2.1)	(21.7)	5.2
Revenue (including carbon price fair value adjustment)	10.1	(11.5)	12.3
Gross Profit	7.6	(16.1)	9.1
Administrative expenses	(6.5)	(13.4)	(6.4)
Profit from continuing operations	1.1	(29.6)	2.6

2012 OPERATIONAL HIGHLIGHTS

· North America

o 4.5 MW clean energy biogas plant operational, completed on time and ahead of budget

o Grant of approximately US $6m from US Treasury received in August 2012

· South East Asia

o 2 MW biogas plant acquired in August 2012

· China

o Carbon portfolio of CERs restructured to provide value at any carbon price

o €39.4m of discounted future gross cash flows based on the forward price curve as at 30 June 2012

· Africa

o Awarded US $4.7m contract with project partner Rex to bring solar power to off-grid communities in rural Tanzania, (value to Camco of US $1.1m)

· UK

o Non-core advisory business sold for an initial consideration of €3.8 million

Notes

(1) Adjusted net cash is calculated as follows:

	H1 2012	FY 2011	H1 2011
	€'000	€'000	€'000
Cash and cash equivalents	16,101	14,369	14,865
Less cash restricted for sole use in construction of biogas project in North America	(456)	(2,231)	-
Less unsecured loans	(3,904)	(3,858)	-
Less bank overdraft (discontinued operations)	-	(232)	-
Adjusted net cash	11,741	8,048	14,865

Adjusted net cash per share (pence)	5.0p	3.6p	6.3p

(2) Net Cash held by Camco South East Asia Limited "CSEA"):

	H1 2012	FY 2011	H1 2011
	€'000	€'000	€'000
Net cash attributed to Camco	7,310	7,971	8,693

Net cash attributed to Camco per share (pence)	3.1p	3.5p	3.7p

Adjusted net cash in note (1) above does not include net cash held by Camco South East Asia Limited ("CSEA") which Camco accounts for as a joint venture. Camco currently owns 60.1% of CSEA. The balances in Note 2 above reflect Camco's percentage share of the net cash in CSEA.

(3) H1 2012 refers to the unaudited 6 month period to 30 June 2012 or as at 30 June 2012, FY 2011 refers to the audited 12 month period to 31 December 2011 or as at 31 December 2011, and H1 2011 refers to the unaudited 6 month period to 30 June 2011 or as at 30 June 2011

Enquiries:

Camco	+44 (0)20 7121 6100
Scott McGregor, Chief Executive Officer
Jonathan Marren, Chief Financial Officer

Singer Capital Markets (Camco Nominated Adviser and Broker)	+44 (0)20 2305 7500
James Maxwell

Kreab Gavin Anderson (Investor Relations)	+44 (0) 20 7074 1842
Ken Cronin

Citigate Dewe Rogerson (PR Advisor)	+44 (0) 20 7638 9571
Chris Gardner / Malcolm Robertson

Financial Review for the period to 30 June 2012

Camco has had a successful first half of 2012 finishing with increased adjusted net cash of €11.7m compared to €8.0m at the beginning of January 2012.

Revenue earned (excluding carbon price fair value adjustment) increased to €12.2m compared to €7.1m (H1 2011) and €10.2m (FY 2011).

The restructuring of the carbon portfolio achieved during the period resulted in the downwards carbon price fair value adjustment for the period of €2.1m being lower than it would have been pre-restructure and the board anticipates this effect to continue in future periods as volatility in the carbon price persists.

In total, revenue (including carbon price fair value adjustment) was €10.1 million compared to €12.3m (H1 2011) and negative €11.5m (FY 2011).

Our 4.5 MW clean energy biogas plant in Jerome, Idaho was ramping up during the period and therefore reflect a limited contribution to revenue in H1 2012. That plant is now fully operational and is anticipated to contribute significantly more to the segmental result in the second half.

The carbon business contributed revenue of €10.2m excluding the carbon price fair value adjustment (H1 2011: €6.4m). Looking ahead to the second half of the year and into 2013, we expect to record more revenue from our 2012-20 carbon portfolio as our projects become operational with a corresponding increase in accrued income in accordance with our accounting policies. As cash is received from carbon contracts as they deliver credits through to 2020, this accrued income balance will reduce. We may also choose to enter into structured forward sales of credits, which will have the effect of converting accrued income into cash at that point.

Carbon operating expenditure was reduced to €1.9m (H1 2011: €2.7m), which we anticipate reducing further in the second half and beyond.

Overall administrative expenses during the period were €6.5m compared to €6.4m (H1 2011) and €7.0m in the second half of 2011 (€13.4m (FY 2011)). We will continue to keep a tight control over costs in order to preserve cash for investment in project development activities.

Profit from continuing operations for the period was €1.1m compared to €2.6m (HY 2011) and a loss of €29.6m (FY 2011).

Cash and cash equivalents increased by €1.7m to €16.1m with adjusted net cash increasing by €3.7m to €11.7m at the period end from FY 2011. Adjusted net cash excludes cash restricted for sole use in construction of projects and debt secured against a project which will be amortized over the life of that project. The increase in cash takes account of the sale of the UK advisory business, final amounts spent on the North America clean energy biogas plant and net cash flows from operating activities.

Operational Review

North America

In the US, Camco's 4.5 MW clean energy biogas plant became fully operational during the period. The project was completed on time and ahead of budget. The project also received a grant of approximately US $6m from US Treasury in August 2012, the majority of which will be used to repay a loan which was used to fund part of the construction of the project.

The company will continue to develop its portfolio of biogas projects across North America and looks forward to making further announcements as projects come on-line.

Our US team has continued to develop our agricultural carbon portfolio for use in the California market, which will be the second largest after the EU ETS when it begins in 2013. Camco continues to lead the agricultural biogas sector in the US, with 2.5m tonnes now under management and the largest number of "Livestock Gas Capture/Combustion" projects registered under the Climate Action Reserve (CAR) standard.

South East Asia

The team is now developing a pipeline of projects that will generate clean energy using local regulatory incentives. As part of this strategy the team acquired a 2 MW biogas development project in August 2012 to recover biogas containing methane from palm oil mill effluent. Construction of the project is expected to be completed in early 2013. The team is pursuing further development of biogas and energy efficiency projects.

In H1 we completed 13 carbon project registrations and are aiming to complete registration of the remaining projects in time for the registration deadline at the end of this year.

Camco's South East Asia's net cash balance as at 30 June 2012 (within its joint venture) was €7.3m (not included within Group cash balance).

China

Our team in China has been working hard on developing and registering its portfolio of carbon projects in time for the 2012 registration deadline. We are also exploring opportunities to build on our carbon project success and develop new clean energy projects in the region.

Our team has now successfully registered 96 carbon projects and will pursue the registration of the remainder of its projects by the end of 2012. The team has also delivered 17.9m tonnes to 30 June 2012.

Camco's China carbon portfolio of CERs is structured to provide discounted future gross cash flows of €39.4m based on the forward price curve as at 30 June 2012 (see below).

Africa

Camco has six offices in Africa pursing clean energy and carbon reduction projects. Recent successes included a contract win in Tanzania, where Camco and Rex were awarded US $4.7m to bring solar power to off-grid communities in rural Tanzania, the contract value to Camco being US $1.1m

Other

As announced at the time of our 2011 results, the restructuring of Camco's carbon portfolio in H1 2012 was a significant event and aligns it with current market conditions.

The following tables outline CER discounted future gross cash flows as at 30 June 2012 (the date of the last review) based on the forward curve at that date. A price sensitivity analysis is also included to show how movements in the forward price curve will impact this value.

CER Carbon Portfolio Discounted Future Gross Cash Flows as at 30 June 2012*

Sensitivity to carbon price	CER Carbon price	Pre 2012 Discounted Future Gross Cash Flows	Post 2012 Discounted Future Gross Cash Flows	Total Discounted Future Gross Cash Flows
		€m	€m	€m
	-€ 2	-0.3	18.9	18.6
	-€ 1	1.9	26.6	28.5
	30 June 2012 CER forward curve	3.8	35.5	39.4
	€ 1	5.8	42.7	48.4
	€ 2	7.7	49.7	57.4
	€ 4	11.5	63.8	75.2

* see notes below for assumptions

Forward curve as at 30 June 2012:

Futures Contract	Dec-12	Dec-13	Dec-14	Dec-15	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20
ECXprice per CER	€3.66	€3.96	€4.18	€4.40	€4.55	€4.63	€4.78	€4.92	€5.15

Since 30 June 2012, the forward curve has reduced and as at 31 August 2012 was as follows:

Futures Contract	Dec-12	Dec-13	Dec-14	Dec-15	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20
ECXprice per CER	€2.80	€3.14	€3.35	€3.46	€3.49	€3.49	€3.56	€3.64	€3.84

Finally, our non-core UK Advisory business was sold in early 2012 for initial consideration of £3.25m (€3.8m) to allow the Company to focus on its core markets.

We were also pleased to welcome Jonathan Marren to the role of Chief Financial Officer shortly after the period end.

Outlook

Over the last half year the Company has laid the groundwork to further expand its clean energy business in each of its regions. Clean energy opportunities in North America, Asia and Africa are now the Company's core focus and we anticipate an expansion of our clean energy project portfolio.

In North America, Asia and Africa this utilizes two trends: the growth in regulatory incentives, feed-in tariffs and grants available; and the continuing reduction in clean tech technology costs. Camco is excellently positioned to benefit from these trends in each of its regions. Our technical expertise, project development prowess and established local experts have placed us in the lead in these markets.

Our existing Asian carbon portfolio will deliver value to shareholders as it matures over the coming years. In North America, we hold a leading position in that carbon market. We expect our North American presence to expand as opportunities grow in an active compliance market after initial auctioning of allowances commences later this year. New regional carbon markets in Australia, Africa and China, commencing shortly, will provide Camco with great opportunities to expand its carbon development business alongside its clean energy development business.

Notes

CER Carbon Portfolio Discounted Future Gross Cash Flow assumptions

The following assumptions have been made calculating the discounted future gross cash flows of contracts:

· Forward curve as at 30 June 2012

· Discount rate of 10%

· The figures shown are carbon future gross cash flows and do not take into account verification (third party audit) costs of delivering the carbon credits and operating expenses, which will appear in the accounts as cost of sales and administrative expenses respectively, or certain developer fees that may be received by the Company, which also appear in the accounts as revenue, and do not represent a forecast profit figure for the portfolio

· Since the figures are based solely on cash forecasts from the delivery of carbon credits, no additional value is priced in for the optionality embedded in certain contracts; the option value of a contract may exceed its discounted future gross cash flow value

· No value is given for post-2020 production credits

· Includes €4.5m of contracts costs

Consolidated Statement of Financial Position

at 30 June 2012


		30 June 2012 (unaudited)	30 June 2011 (unaudited)	31 December 2011 (audited)
		€'000	€'000	€'000
Non-current assets
Property, plant and equipment		17,794	3,837	15,988
Goodwill on acquisition		433	1,959	433
Other intangible assets		-	283	-
Intangible assets - carbon in specie		591	-	644
Investments in associates and joint ventures		12,891	9,765	13,152
Other investments		-	226	3
Deferred tax assets		127	181	132
		31,836	16,251	30,352

Current assets
Work in progress - carbon development contracts		3,337	5,790	3,199
Prepayments and accrued income	3	16,014	47,537	16,844
Trade and other receivables	4	8,968	5,366	4,387
Cash and cash equivalents	5	16,101	14,865	14,369
Assets classified as held for sale		-	2,208	4,620
		44,420	75,766	43,419

Total assets		76,256	92,017	73,771

Current liabilities
Loans and borrowings	6	(10,271)	(10)	(4,138)
Trade and other payables	7	(19,851)	(23,630)	(19,381)
Tax payable		(243)	(208)	(322)
Liabilities directly associated with assets classified as held for sale		-	(350)	(1,891)
		(30,365)	(24,198)	(25,732)

Non-current liabilities
Loans and borrowings	6	(10,785)	(4,075)	(15,360)
Deferred tax liabilities			(79)	-
		(10,785)	(4,154)	(15,360)

Total liabilities		(41,150)	(28,352)	(41,092)

Net assets		35,106	63,665	32,679

Consolidated Statement of Financial Position (continued)

at 30 June 2012


	30 June 2012 (unaudited)	30 June 2011 (unaudited)	31 December 2011 (audited)
	€'000	€'000	€'000
Equity attributable to equity holders of the parent
Share capital	1,896	1,892	1,892
Share premium	75,565	75,542	75,542
Share-based payment reserve	411	717	559
Retained earnings	(43,806)	(12,586)	(44,916)
Translation reserve	1,156	(2,288)	(155)
Own shares	(116)	(357)	(243)

Non-controlling interest	-	745	-

Total equity	35,106	63,665	32,679

Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2012


		6 months to 30 June 2012	6 months to 30 June 2011	12 months to 31 December 2011
Continuing operations	Note	(unaudited) €'000	(unaudited) €'000	(audited) €'000
Revenue:
Earned in the year		12,176	7,101	10,195
Carbon price fair value adjustment		(2,065)	5,188	(21,654)
Revenue		10,111	12,289	(11,459)

Cost of sales		(2,535)	(3,198)	(4,638)
Gross profit		7,576	9,091	(16,097)

Other income - net gain on disposal of investment		495	-	578
Administrative expenses		(6,509)	(6,354)	(13,356)
Restructuring charges		-	-	(236)
Results from operating activities		1,562	2,737	(29,111)

Financial income		661	610	2,217
Financial expenses		(537)	(571)	(1,749)
Net financing income		124	39	468

Share of loss of equity accounted investees		(533)	(125)	(670)
Profit/(loss) before tax		1,153	2,651	(29,313)
Income tax		(43)	(77)	(328)

Profit/(loss) from continuing operations		1,110	2,574	(29,641)


Discontinued operation
Gain from discontinued operation (net of income tax)	1	-	446	370
Profit/(loss) for the period		1,110	3,020	(29,271)

Other comprehensive income
Exchange differences on translation of foreign operations		605	(1,398)	735

Total comprehensive income for the period		1,715	1,622	(28,536)

Profit/(loss) for the period attributable to:

Equity holders of the parent		1,110	3,020	(29,271)
Non-controlling interest		-	-	-
Profit/(loss) for the period		1,110	3,020	(29,271)

Total comprehensive income attributable to:

Equity holders of the parent		1,715	1,622	(28,536)
Non-controlling interest		-	-	-
Total comprehensive income for the period		1,715	1,622	(28,536)

Basic profit/(loss) per share in € cents
From continuing operations	2	0.59	1.38	(15.85)
From continuing and discontinued operations	2	0.59	1.62	(15.65)

Diluted profit/(loss) per share in € cents
From continuing operations	2	0.59	1.38	(15.85)
From continuing and discontinued operations	2	0.59	1.62	(15.65)

Consolidated Statement of Changes in Equity

for the 6 months to 30 June 2012

	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 2012	1,892	75,542	559	(44,916)	(155)		(243)		32,679		-	32,679

Total comprehensive income for the period
Profit for the period	-	-	-	1,110	-		-		1,110		-	1,110

Other comprehensive income
Reclassification from cumulative exchange reserve arising on disposal of subsidiaries					706				706			705
Foreign currency translation differences	-	-	-	-	605		-		605		-	605

Total comprehensive income for the period	-	-	-	1,110	1,311		-		2,421		-	2,431

Transactions with owners, recorded directly in equity Contributions by and distributions to owners
Share-based payments	-	-	6	-	-		-		6		-	6
Issuance of shares	4	23	-	-	-		(27)		-		-	-
Own shares	-	-	(154)	-	-		154		-		-	-

Total contributions by and distributions to owners	4	23	(148)	-	-		127		6		-	6

Total transaction with owners	4	23	(148)	-	-		127		6		-	6

Balance at 30 June 2012	1,896	75,565	411	(43,806)	1,156		(116)		35,106		-	35,106

Consolidated Statement of Changes in Equity (continued)

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/ expense
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

Gain from disposal of shares in subsidiary	-	-	-	39	-	-	39	-	39
Acquisition& settlement of non-controlling interest	-	-	-	-	-	-	-	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 year ended 31 December 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 year
Profit for the year	-	-	-	(29,271)	-	-	(29,271)	-	(29,271)

Other comprehensive income
Foreign currency translation differences	-	-	-	-	735	-	735	-	735

Total comprehensive income for the year	-	-	-	(29,271)	735	-	(28,536)	-	(28,536)

Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payments	-	-	21	-	-	-	21	-	21
Issuance of shares	36	681	-	-	-	(717)	-	-	-
Own shares	-	-	(635)	-	-	635	-	-	-

Total contributions by and distributions to owners	36	681	(614)	-	-	(82)	21	-	21

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	36	681	(614)	-	-	(82)	21	-	21

Balance at 31 December 2011	1,892	75,542	559	(44,916)	(155)	(243)	32,679	-	32,679

Consolidated Statement of Cash Flow

for the 6 months to 30 June 2012


Continuing and discontinued operations		6 months to	6 months to	12 months to
		30 June 2012	30 June 2011	31 December 2011
		(unaudited)	(unaudited)	(audited)
	Note	€'000	€'000	€'000
Cash flows from operating activities
Cash generated by operations	(a)	(1,214)	2,342	(3,732)
Income tax paid		(57)	-	(50)
Net cash from operating activities		(1,271)	2,342	(3,782)

Cash flows from investing activities
Proceeds from sales of investments		3,879	-	1,314
Payment for acquisition of joint venture		-	-	-
Acquisition of property, plant & equipment		(1,342)	(3,298)	(14,327)

Net cash from investing activities		2,537	(3,298)	(13,013)

Cash flows from financing activities
Proceeds from the issue of share capital		28	36	36
Proceeds from new loan		603	4.034	19,227
Repayment of borrowings Interest paid		(123) (149)	-	- (98)
Payment of finance lease liabilities		-	(5)	(23)

Net cash from financing activities		359	4.065	19,142

Net increase in cash and cash equivalents		1,625	3,109	2,347
Cash and cash equivalents at 1 January		14,270	11,907	11,907
Effect of exchange rate fluctuations on cash held		206	(151)	16

Cash and cash equivalents held*		16,101	14,865	14,270

* Cash and cash equivalents for 31 December 2011 and 30 June 2011 include cash from discontinued operations.

Notes to the Consolidated Statement of Cash Flow

	6 months to	6 months to	12 months to
	30 June 2012	30 June 2011	31 December 2011
	(unaudited)	(unaudited)	(audited)
	€'000	€'000	€'000
(a) Cash flows from operating activities

Profit for the period	1,100	3,020	(29,271)

Adjustments for:
Depreciation	191	176	313
Amortisation of intangible assets Carbon price fair value adjustment Impairment loss on CDC assets	- 2,065 341	168 (5,188) -	337 21,654 1,968
Share of loss of equity accounted investees Gain on increase of control from associate to JV Gain on sale of investment	533 - (495)	125 - -	670 (1,704) (578)
Share-based payment transactions	6	65	117
Income tax expense	43	31	13
Finance cost	392	447	918
Finance income	(596)	(620)	(513)
Foreign exchange loss/(gain) on translation	(41)	107	733
Interest received	24	27	50
Interest paid	(5)	(5)	(10)
Impairment loss on development costs	-	-	1,556
Operating cash flows before movements in working capital	3,558	(1,669)	(3,747)

Changes in working capital
(Increase)/decrease in CDC assets	(478)	265	886
Decrease in intangible assets	53	2,199	1,386
(Increase)/decrease in prepayments	(142)	504	2,056
(Increase)/decrease in accrued income	(1,292)	2,591	9,215
Decrease/(increase) in trade and other receivables	280	(70)	(1,106)
Decrease in trade and other payables	(3,168)	(1,500)	(12,434)
( Decrease)/increase in tax provision	(25)	-	12

Cash generated by operations	(1,214)	2,342	(3,732)

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 2012 to 30 June 2012 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 2011 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 2011. 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 2011.

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 2011. 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 2011 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.

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 reporting segments:

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

2. Projects: The Clean Energy Project Development 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	Projects	Eliminations	Total
	6 months to	6 months to	6 months to	6 months to
	30 June 2012	30 June 2012	30 June 2012	30 June 2012
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	€'000	€'000	€'000	€'000
Revenue	10,184	1,992	-	12,176
Fair value adjustment	(2,065)	-	-	(2,065)
Total segment revenue	8,119	1,992		10,111
Segment gross profit	6,262	1,314	-	7,576
Segment administrative expenses	(1,930)	(2,696)	-	(4,626)
Segment result	4,332	(1,382)	-	2,950
Net gain on disposal of investment				495
Unallocated expenses				(1,877)
Share-based payments				(6)
Restructuring charges				-
Results from operating activities				1,562
Net finance income				124
Share of loss equity-accounted investees				(533)
Taxation				(43)
Profit for the period from continuing operations				1,110
Discontinued operation				-
Profit for the period				1,110

1 Segmental Reporting (continued)

	Carbon	Projects	Eliminations	Total
	6 months to	6 months to	6 months to	6 months to
	30 June 2011	30 June 2011	30 June 2011	30 June 2011
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	€'000	€'000	€'000	€'000
Revenue	11,567	722	-	12,289
Inter-segment revenue	-	882	(882)	-
Total segment revenue	11,567	1,604	(882)	12,289
Segment gross profit	7,960	1,131	-	9,091
Segment administrative expenses	(2,696)	(1,635)		(4,331)
Segment result	5,264	(504)	-	4,760
Unallocated expenses				(1,958)
Share-based payments				(65)
Restructuring charges				-
Results from operating activities				2,737
Net finance income				39
Share of loss equity-accounted investees				(125)
Taxation				(77)
Profit for the period from continuing operations				2,574
Discontinued operation				446
Profit for the period				3,020

	Carbon	Projects	Eliminations	Total
	12 months to	12 months to	12 months to	12 months to
	31 December 2011	31 December 2011	31 December 2011	31 December 2011
	(audited)	(audited)	(audited)	(audited)
	€'000	€'000	€'000	€'000
Revenue	8,544	1,651	-	10,195
Re-measurement of past revenue	(21,564)			(21,564)
Inter-segment revenue		1,572	(1,572)	-
Total segment revenue	(13,110)	3,223	(1,572)	(11,459)
Segment gross profit	(17,985)	1,888	-	(16,097)
Segment administrative expenses	(5,242)	(4,780)	-	(10,022)
Other income-gain on sale of investment		578		578
Segment result	(23,227)	(2,314)	-	(25,541)
Unallocated expenses				(3,217)
Share-based payments				(117)
Restructuring charges				(236)
Results from operating activities				(29,111)
Net finance expense				468
Share of loss of equity accounted investees				(670)
Taxation				(328)
Loss for the period from continuing operations				(29,641)
Discontinued operation				370
Loss for the period				(29,271)

2 Profit/(loss) per share

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

	30 June 2012	30 June 2011	31 December 2011
	(unaudited)	(unaudited)	(audited)

	€ cents	€ cents	€ cents
	per share	per share	per share
Basic profit/(loss) profit per share
From continuing operations	0.59	1.38	(15.85)
From continuing and discontinued operation	0.59	1.62	(15.65)

Diluted profit/(loss) per share
From continuing operations	0.59	1.38	(15.85)
From continuing and discontinued operation	0.59	1.62	(15.65)


Profit/(loss) used in calculation of basic and diluted loss per share-no dilutive effects	€'000	€'000	€'000
From continuing operations	1,110	2,574	(29,641)
From continuing and discontinued operation	1,110	3,020	(29,271)

Weighted average number of shares used in calculation
Basic	188,602,755	185,925,243	186,990,087
Diluted	189,354,218	185,925,243	186,990,087

	30 June 2012	30 June 2011	31 December 2011
	(unaudited)	(unaudited)	(audited)
Weighted average number used in calculation-basic:	Number	Number	Number

Number in issue at start of period	189,178,093	185,618,253	185,618,253
Effect of own shares held	(1,409,549)	(2,772,141)	(3,460,610)
Effect of shares issued in the period	60,773	741,746	2,941,690
Effect of share options exercised	773,438	2,337,385	1,890,754

Weighted average of diluted shares at end of period	188,602,755	185,925,243	186,990,087

Weighted average number used in calculation-diluted:	Number	Number	Number

Number in issue at start of period	189,178,093	185,618,253	185,618,253
Effect of own shares held	(1,409,549)	(2,772,141)	(3,460,610)
Effect of shares issued in the period	60,773	741,746	2,941,690
Effect of share options exercised	773,438	2,337,385	1,890,754
Dilutive effect of share options granted	751,463	-	-

Weighted average of diluted shares at end of period	189,354,218	185,925,243	186,990,087

3 Prepayments and accrued income

	30 June 2012 (unaudited) €'000	30 June 2011 (unaudited) €'000	31 December 2011 (audited) €'000
Prepayments	705	2,739	722
Accrued income - CDC accruals	14,922	43,236	15,939
Accrued income - other	387	1,562	183
	16,014	47,537	16,844

4 Trade and other receivables

	30 June 2012 (unaudited) €'000	30 June 2011 (unaudited) €'000	31 December 2011 (audited) €'000
Trade receivables	1,063	3,232	1,856
Other receivables	7,905	2,134	2,531
	8,968	5,366	4,387

5 Cash and cash equivalents

	30 June 2012 (unaudited) €'000	30 June 2011 (unaudited) €'000	31 December 2011 (audited) €'000
Cash on deposit*	14,434	14,865	11,165
Cash held for restricted use**	1,667	-	3,337

Cash and cash equivalents	16,101	14,865	14,502

* included within cash on deposit as at 31 December 2011 is a balance of €133,000 relating to discontinued activities

** Included within cash held for restricted use is a debt reserve balance of €974,000 (€946,000) and €456,000 (€2,231,000) provided by the lender for sole use in the construction of the biogas project in North America as at 30 June 2012 (31 December 2011)

6 Loans and borrowings

	30 June 2012 (unaudited) €'000	30 June 2011 (unaudited) €'000	31 December 2011 (audited) €'000
Non-current liabilities
Finance lease liabilities*	-	7	5
Secured loans **	10,785	4,068	15,360
	10,785	4,075	15,365

Current liabilities
Secured bank overdraft*	-	-	232
Unsecured loans	3,904	-	3,858
Secured loans **	6,367	-	280
Finance Lease liabilities*	-	10	7
	10,271	10	4,377

* These relate to discontinued activities

** These loans are secured against grant proceeds that are to be received in AgPower Jerome LLC, and also the assets and operations of the biogas project in the US

7 Trade and other payables

	30 June 2012 (unaudited)	30 June 2011 (unaudited)	31 December 2011 (audited)
Trade payables and non CDC accruals	2,486	4,572	4,807
Other accruals - CDC accruals	7,849	9,836	7,668
Payment on account received	4,310	7,710	6,426
Deferred income	5,206	1,512	480
	19,851	23,630	19,381

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

CER Portfolio Volume as at 30 June 2012

To Deliver	Pre 2012 CDM Production (m tonnes)	Post 2012 CDM Production (m tonnes)
Contracted	14.8	70.3
Registered	14.7	35.4

	Pre 2012 CDM	Post 2012 CDM
Issued to date	17.9	-

For both pre and post 2012 contracts, the Company earns a percentage of the market price for credits delivered, secured either indirectly through the purchase and resale of in specie carbon credits or directly as cash commission received on their sale. This has enabled the Company to extract value from contracts in a low carbon price environment.

All volumes stated are those in which Camco has such a commercial interest, rather than solely projects under management, and are based on actual issuances and risk adjusted forecasts. It is likely the majority of credits produced pre 2012 will be delivered into the market during 2013 for use within Phase III of the EU ETS.

The Company also has contract rights over 13.6m CERs. These are where the Company has the right to propose an off-take arrangement, in most cases first right of refusal. During the 6 months to 30 June 2012 the Company has converted contract rights of 2.4m tonnes into portfolio volumes.

JV CER Portfolio Volume as at 30 June 2012

Additionally the Company has a CER portfolio held through its Camco Southeast Asia of 14.3m tonnes for delivery into post 2012 markets.