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| 02-11-09 | AFX UK Focus |
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LONDON, Nov 2 (Reuters) - Alkane Energy PLC:
Energy UK worth £300,000 ((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More |
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| 02-11-09 | RNS |
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RNS Number : 7310B Alkane Energy PLC 02 November 2009
2 November 2009 Alkane Energy plc ('Alkane' or 'the Group') Alkane Signs Tolling Contract with GDF SUEZ Alkane Energy plc (AIM: ALK), the profitable alternative energy company which owns and operates environmentally friendly power generation plants using coal mine methane (CMM) as fuel, is pleased to announce a 12 month tolling contract with energy supply company GDF SUEZ Energy UK. Under the tolling contract Alkane will assign 7MW of excess capacity to GDF SUEZ, provided by its sites at Markham and Shirebrook. The agreement will generate revenues for Alkane of approximately £300,000. Tolling is a method of maximising the economic value of these two sites by utilising the Group's excess grid and engine capacity. Under the tolling contract, Alkane will effectively rent the capacity to GDF SUEZ in return for a standard fee. Using natural gas as the fuel, GDF SUEZ will determine the engine running regime and be responsible for the running costs of the production. In addition Alkane has entered into a 12 month sales agreement with GDF SUEZ for output of circa 2MW from our CMM reserves at Shirebrook. Commenting on the contract, Neil O'Brien, Chief Executive of Alkane Energy said: "We are very pleased to be working with GDF SUEZ and look forward to developing a long term relationship. We remain committed to further enhancing the potential of our assets and will continue to evaluate other opportunities to further improve the quality of our earnings." Enquiries:
Alkane Energy plc
Steve Goalby, Finance Director
Hudson Sandler
Altium
Corporate Finance - Adrian Reed Corporate Broking - Chloe Tel: 0161 831 9133
This information is provided by RNS The company news service from the London Stock Exchange END
CNTMMBPTMMTJBPL More |
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| 16-09-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 1194Z
Alkane Energy PLC
16 September 2009
16 September 2009
Alkane Energy plc
("Alkane", "the Group" or "the Company")
Unaudited interim results for the half year to 30 June 2009
Alkane Energy plc (AIM: ALK) the profitable alternative energy company that owns and operates power generation plants using coal mine methane as fuel, today announces its unaudited interim results for the six months to 30 June 2009.
Financial Highlights
* Revenue up 9% to £2.85m (2008: 2.60m)
* EBITDA up 26% to £1.40m (2008: £1.10m)
* Strong operating cash flow
* Receipts from sale of Pro2 currently £5.16m
* PBT before exceptional non cash accounting movements relating to the sale of Pro2 was £0.79 million (H1 2008: £0.87 million)
Operational Highlights
* Good progress towards achieving target of 50MW capacity
* Proceeds from sale of Pro2 funding expansion programme
* Development of new natural gas for standby facilities
* New project pipeline progressing well
Commenting on the interim results, Chief Executive Officer, Neil O'Brien, said:
"It has been a very encouraging six months as we remain on track to reach our medium term target of 50MW of installed coal mine methane capacity. Our strong balance sheet, high cash generation and proceeds from the disposal of Pro2 provide a sound base to progress further."
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive Officer 020 7796 4133 (today), then 01623 827927
Steve Goalby, Finance Director 020 7796 4133 (today), then 01623 827927
Altium Capital Limited
Adrian Reed - Financial Advisory 0161 831 9133
Chloe Ponsonby - Corporate Broking 020 7484 4040
Hudson Sandler
Nick Lyon 020 7796 4133
Hugo Jenkins
OPERATING AND FINANCIAL REVIEW
Introduction
Alkane is pleased to announce its unaudited interim results for the six months ended 30 June 2009. The first half of 2009 has been a busy and constructive period for the Group. The disposal of our German subsidiary, Pro2, has provided Alkane with the financial resources to accelerate the Group's investment programme in our core Coal Mine Methane ('CMM') business. Alkane's flexible low cost operating model gives us significant competitive advantage over other energy generators and we continue to invest in profitable projects even in these difficult economic times.
The Group's entire minority interest in Pro2 was sold on 1 March 2009. The total receipts are expected to be £6.63 million of which £5.16 million was received in this half year; the balance is due within 18 months on loan repayment schedules and the clearance of an escrow account. The capital receipts from the disposal and continued strong operating cash flow have allowed us to accelerate the expansion of the Group's operations and £4.76 million has been invested in new projects during the six months to June 2009. This investment programme is a key feature of our strategy as we strive to reach our medium term target of 50MW of installed CMM capacity.
The following table shows our progress towards the 50MW target:
CATEGORY
Current installed Projects being Pipeline projects under construction Total
capacity commissioned
MW MW MW MW
Electricity Generation sites 11 6 7.5 24.5
Gas supply sites (equivalent 6 - 0.5 6.5
MW)
Total 17 6 8 31
During the first half the output from the Group's UK sites was 39.3GWh (H1 2008: 40.8GWh). Output levels were slightly down due to a drop in production at our Bevercotes site where, as previously announced, lower gas volumes have resulted in the move of some capacity to other operating sites. Also during the period we withdrew from the Group's only overseas site at Joarin in Germany. Following a reduction in gas flows at the site and due to a lack of scale in Germany the decision was made to redeploy the power generation plant back to the UK where higher rates of return are available.
Financial
The first half saw revenue increase from £2.60 million (H1: 2008) to £2.85 million this year representing a 9% increase. The Company benefitted from forward electricity contracts entered into in 2008 and achieved a 21% increase in average selling price to £59.5/MWh (H1 2008: £49.3/MWh). Over the past 18 months market electricity prices have been volatile, and have fallen considerably from the peaks reached in 2008. Unless there is a significant upturn in market prices, our average selling price in 2010 will be lower than this year. Output in the UK in the period was 39.3GWh (2008: 40.8GWh). The decision to exit Joarin resulted in a revenue loss of £0.13 million compared to the same period last year. Gas sales in the period were 1.7 million therms (H1 2008: 1.8 million). The average gas selling price moved up by 16% to 29.4p/therm (H1 2008: 25.3p/therm).
The Group adopts a flexible but prudent policy on forward contracting for electricity sales, ensuring that there is an even spread of rolling renewals over any twelve month period to limit Group exposure to individual low price periods. The Group has contracts in place for the next twelve months covering 58% of our current installed capacity at an average price of £48/MWh. Our development and capital expenditure programmes are carefully managed to reflect these external factors.
An important characteristic of the Group is the strong cash flow generated by the Alkane business model, demonstrated by EBITDA from continuing operations for the first half of £1.40 million (H1 2008:£1.10 million). The 2009 figure shows EBITDA from continuing operations running at 49% of revenue (H1 2008: 42%). This cash flow is one of the major sources of finance for our investment programme in new plant in the UK.
Following the disposal of Pro2, there are a number of exceptional, non-cash, accounting movements related to the Group's holding in Pro2 and certain loans made to Pro2 which were sold or rescheduled as part of the disposal process. The profit before tax for the six months to June 2009 before these exceptional items was £0.79 million (H1 2008: £0.87 million). The fall in profit before tax is due to a rescheduling of depreciation charges so that costs relating to major overhauls are now depreciated over a shorter period than the plant itself. Total depreciation in H1 2009 was £0.59 million compared to £0.28 million in H1 2008.
Earnings per share from continuing operations in the first half amounted to 0.45p (H1 2008: 1.08p). Excluding the impact of the Pro2 exceptional items described above, earnings per share were 0.85p (H1 2008: 0.92p)
As at 30 June 2009, the Group had no net debt and cash balances of £3.51 million, the majority of which has been committed to funding future growth in the Group's CMM portfolio.
Operations
The UK operations have performed creditably after a difficult start to the year. Output levels in the UK were slightly down due to a drop in gas production at our Bevercotes site where we have reduced capacity to 2.7MW.
The other UK sites have performed well. As previously indicated, the Group withdrew from its one German site, from where the 1.35MW engine has been redeployed for use in the UK. Current installed capacity, as set out above, totals 17MW.
The cash receipts from the Pro2 disposal plus the Group's strong operating cash flow has allowed the Group to push ahead with the rollout programme with £4.76 million invested in projects during the six months to June 2009. The projects currently being commissioned, set out above, refers to the Group's new Bilsthorpe and Shirebrook sites. The new site at Bilsthorpe is currently operating at 3.1MW; maximum capacity at this site is 4.65MW dependent upon future operating performance. It was first drilled in January of this year and started exporting to the electricity network from June. This project was delivered ahead of schedule and on budget and is one of our fastest ever construction phases. Shirebrook has been a further project success. Until recently it had been a 'gas only' site for the Group. After drilling a new access pipe, output has been restored to the site and we have upgraded facilities to operate our own electricity generators.
The new project pipeline, with sites under construction set out above, is progressing extremely well. The Group has drilled and is gas testing at three sites in Yorkshire, Nottinghamshire and Staffordshire. Whilst there is still a large amount of administration and construction work to complete, we are hopeful that all three sites will be exporting electricity within 9 to 18 months.
The Group's recent excellent performance on new projects shows the strength of our project portfolio. Nonetheless, there are unavoidable uncertainties within the business in respect of land acquisition and planning and also in respect of the level and life span of gas reserves. One example of this is that the Group has yet to find economically viable gas reserves within our South Wales licence area, however work continues to identify commercially viable reserves.
The Group continues to work on a number of additional projects which will provide us with a portfolio of potential new sites for 2010 and beyond.
Strategy
At the start of 2009, we set ourselves a target of reaching, within the medium term, 50MW of installed CMM capacity. The table above shows that we are already making excellent progress towards this strategic target, with capacity set to rise to 31MW as the projects currently under construction are commissioned. The Group remains committed to delivering on this target from within our current CMM licence portfolio and from the existing resources available to the Group. The Board firmly believe that the first half of 2009 has been a major step forward in delivering on the potential of the Alkane Group.
Alkane also continues to look at other opportunities to improve the quality of earnings of the Group. Work has started on creating an 8MW portfolio of natural gas fired standby facilities using surplus capacity at Shirebrook and Markham. When available, Alkane will be able to provide these facilities to utilise our valuable grid and generating capacity to provide electricity, generated from mains natural gas, at times of peak demand and associated electricity pricing. The Group has a highly flexible engine fleet and expertise in remote management facilities which enable us to support this new operating model and allow us to extend the life of a site beyond the CMM reserve period.
The Group continues to research other areas of activity for Alkane to deploy our expertise and asset management skills. As stated with our full year results, we are committed to maximising the value of our current CMM operations whilst looking at additional complementary and proven technology areas to expand the Group.
People
As previously announced, Cameron Davies is retiring as an executive director on 31 October 2009. I am pleased to confirm that Cameron has agreed that upon his retirement he will take on the role of non-executive director, thus ensuring that the Group continues to benefit from his knowledge and experience. Also as previously announced, David Oldham is to retire as Technical Director on 31 July 2010. We are pleased to have appointed Neil Shailer to the non-Board role of managing director of the CMM business, and he is taking over the day-to-day operations in an orderly handover from David.
Outlook
2009 is benefiting from stable capacity and strong pricing from forward contracts entered into in 2008, alongside the shift change in the speed of development of the new project pipeline. With new capacity already on line we expect to see a rise in output in the second half. While pricing volatility is likely to lead to lower power prices in 2010, an increase in output would provide an offsetting factor.
Our balance sheet is robust with no net debt and a business model which generates strong operating cash flows. Together with the funds from the disposal of Pro2 this has allowed us to undertake the largest ever investment programme for the Group, the benefit of which we will start to see during the rest of this year and in the years to come.
Subject to any unforeseen operating changes, we remain confident of meeting City expectations for the full year.
John Lander
Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 6 months ended 30 June 2009
For the six For the six For the year
months ended months ended ended
30 June 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Revenue 2,845 2,604 5,191
Cost of sales (952) (826) (2,093)
Gross profit 1,893 1,778 3,098
Administrative expenses (1,142) (915) (1,862)
Non-recurring costs 3 - (72) (108)
Return on operations 751 791 1,128
Other operating income 54 30 63
Proceeds from surrender of - - 350
leases
Impairment of gas assets - - (200)
Profit on activities before 805 821 1,341
finance income/(costs)
Finance income 65 139 294
Exchange (loss)/gain arising (365) 145 495
from financing
Finance costs (85) (87) (182)
Net finance (costs)/income (385) 197 607
Profit before tax 4 420 1,018 1,948
Tax (charge)/credit 5 - (21) 60
Profit for the period from 420 997 2,008
continuing operations
Discontinued operations:
Net profit on disposal of 6 767 - -
associate
Share of loss/(profit) of - (475) 383
associate
Profit for the period 1,187 522 2,391
attributable to equity holders
of the parent
Other comprehensive income
Exchange differences on - 122 814
translation of foreign
operations
Exchange difference on - 109 433
long-term loan
Exchange difference (927) - -
transferred to profit or loss
on disposal of foreign
operation
Total comprehensive income for
the period
attributable to equity holders 260 753 3,638
of the parent
Earnings per share
From continuing operations:
Basic, for profit for the 7 0.45p 1.08p 2.17p
period attributable to equity
holders of the parent
Diluted, for profit for the 7 0.45p 1.07p 2.15p
period attributable to equity
holders of the parent
From continuing and
discontinued operations:
Basic, for profit for the 7 1.28p 0.57p 2.59p
period attributable to equity
holders of the parent
Diluted, for profit for the 7 1.26p 0.56p 2.56p
period attributable to equity
holders of the parent
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 June 2009
30 June 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
NON-CURRENT ASSETS
Property, plant and equipment 8 6,953 5,291 5,932
Gas assets 9 6,566 3,754 4,477
Investments accounted for using the - 3,495 -
equity method
13,519 12,540 10,409
CURRENT ASSETS
Inventories 188 101 144
Trade and other receivables 3,980 3,019 5,334
Other financial assets - 350 350
Cash and short-term deposits 3,507 2,133 1,826
7,675 5,603 7,654
Assets held for sale 6 - - 3,322
7,675 5,603 10,976
TOTAL ASSETS 21,194 18,143 21,385
CURRENT LIABILITIES
Trade and other payables (1,663) (2,282) (2,799)
Financial liabilities (652) (412) (402)
Provisions (17) (6) -
(2,332) (2,700) (3,201)
NON-CURRENT LIABILITIES
Financial liabilities (1,965) (1,625) (1,507)
Provisions (1,346) (1,459) (1,399)
(3,311) (3,084) (2,906)
TOTAL LIABILITIES (5,643) (5,784) (6,107)
NET ASSETS 15,551 12,359 15,278
EQUITY
Share capital 464 463 464
Share premium 72 33,318 72
Cumulative translation adjustment - 235 927
Other reserves 8,544 107 8,531
Retained earnings 6,471 (21,764) 5,284
TOTAL EQUITY 15,551 12,359 15,278
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2009
Attributable to equity holders of the parent
Issued Share Translation Other Retained Total
capital premium of foreign reserves(1) earnings equity
operations
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2009 464 72 927 8,531 5,284 15,278
Total comprehensive income and - - (927) - 1,187 260
expense for the period
Share-based payment - - - 13 - 13
At 30 June 2009 (Unaudited) 464 72 - 8,544 6,471 15,551
At 1 January 2008 460 33,259 113 107 (22,395) 11,544
Total comprehensive income and - - 122 - 631 753
expense for the period
Issue of share capital 3 59 - - - 62
At 30 June 2008 (Unaudited) 463 33,318 235 107 (21,764) 12,359
At 1 January 2008 460 33,259 113 107 (22,395) 11,544
Total comprehensive income and - - 814 - 2,824 3,638
expense for the period
Share-based payment - - - 5 - 5
Cancellation of share premium - (33,274) - 8,419 24,855 -
Issue of share capital 4 87 - - - 91
At 31 December 2008 (Audited) 464 72 927 8,531 5,284 15,278
(1) Other reserves comprise share-based payments of £125,000 (30 June 2008: £107,000; 31 December 2008: £112,000), and a distributable reserve of £8,419,000 (30 June 2008: nil; 31 December 2008: £8,419,000) created following cancellation of the share premium account.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2009
For the six For the six For the year
months ended months ended ended
30 June 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Operating activities
Profit before tax from 420 1,018 1,948
continuing operations
Adjustments to reconcile
operating profit to net cash
flows:
Depreciation and impairment of 589 281 1,261
property, plant and equipment
and gas assets
Share-based payments expense 13 - 5
Proceeds from surrender of - - (350)
leases
Finance income (65) (139) (294)
Finance expense 85 87 182
Movements in provisions (36) (57) (123)
Decrease/(increase) in trade 1,271 29 (377)
and other receivables
Increase in inventories (44) - (43)
(Decrease)/increase in trade (78) 17 (25)
and other payables
Income tax refunded 19 9 16
Net cash flows from operating 2,174 1,245 2,200
activities
Cash flows from investing
activities
Proceeds from sale of 3,161 - -
investment in associate
Proceeds from surrender of - - 350
leases
Interest received 129 198 401
Dividends received - - 182
Purchase of property, plant (2,911) (855) (1,784)
and equipment
Purchase of gas assets (1,845) (429) (1,230)
Net cash flows used in (1,466) (1,086) (2,081)
investing activities
Cash flows from financing
activities
Issue of share capital - 62 92
Proceeds from sale and finance 957 402 402
leaseback
Sale and finance leaseback (249) (153) (355)
rentals
Interest paid (85) (87) (182)
Net cash flows from/(used in) 623 224 (43)
financing activities
Net increase in cash and cash 1,331 383 76
equivalents
Cash and cash equivalents at 2,176 2,100 2,100
beginning of period
Cash and cash equivalents at 11 3,507 2,483 2,176
close of period
NOTES TO THE ACCOUNTS
1. CORPORATE INFORMATION
The interim condensed consolidated financial statements of the Group for the six months ended 30 June 2009 were authorised for issue in accordance with a resolution of the directors on 15 September 2009.
Alkane Energy plc is a public limited company incorporated and domiciled in England whose shares are publicly traded. The Company's registered number is 2966946.
The principal activities of the Group are described in Note 4.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
Basis of preparation
The interim condensed financial statements are unaudited and do not constitute statutory financial statements within the meaning of section 435 of the Companies Act 2006.
The comparative figures for the year ended 31 December 2008 were derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. Those accounts received an unqualified audit report which did not contain statements under section 498(2) or (3) (accounting records or returns inadequate, accounts not agreeing with records and returns or failure to obtain necessary information and explanations) of the Companies Act 2006.
The interim condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. This report should be read in conjunction with the Group's Annual Report and Accounts 2008, which have been prepared in accordance with IFRSs as adopted by the European Union.
Accounting policies
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those presented in the Group's Annual Report and Accounts for the year ended 31 December 2008.
The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. There have been no significant changes in the bases upon which estimates have been determined compared to those applied at 31 December 2008, and no change in estimate has had a material effect on the current period. All significant estimates and judgments have been disclosed in the Group's Annual Report and Accounts for the year ended 31 December 2008. Actual results may differ from these estimates.
These condensed consolidated interim financial statements have been prepared on the basis of IFRSs in issue that are effective at the Group's annual reporting date as at 31 December 2009.
3. NON-RECURRING COSTS
The following table is an analysis of non-recurring costs:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
£'000 £'000 £'000
Costs of corporate transactions - 72 108
4. SEGMENT INFORMATION
Operating segments
The directors consider that there is only one operating segment being the extraction of gas from coal measures for power generation and burner tip use. The disclosures for this operating segment have already been given in these financial statements.
Seasonality of operations
There is no significant seasonal nature to the Group's business of the extraction and use of gas.
5. TAXATION
There is no tax charge for the current period. The tax charge of £21,000 for the six months ended 30 June 2008 and tax credit of £60,000 for the year ended 31 December 2008 relate to our site in Germany and comprise advance payments to the German tax authorities net of a refund received that relates to prior years.
6. SALE OF ASSOCIATE
On 2 March 2009 the Group completed the sale of its 38% equity interest in Pro2 Anlagentechnik GmbH for a consideration of EUR3,600,000. The net profit on disposal is £767,000.
The economic effective date for the sale is 1 January 2009. Calculation of the net profit on disposal is therefore based on the net assets of Pro2 Anlagentechnik GmbH at 31 December 2008.
£'000
Book value of net assets at 31 December 2008 2,617
Goodwill 705
Assets held for sale at 31 December 2008 3,322
Sale proceeds received 3,212
Loss on disposal before costs (110)
Cost of disposal (50)
(160)
Release of translation reserves from equity 927
Net profit on disposal 767
Alkane has placed EUR720,000 from the consideration into an escrow account to act as collateral against any warranties or other claims. Subject to no claims, the sum in escrow will be released to Alkane in 2010.
The shareholder loan of EUR1,960,000 made to Pro2 Anlagentechnik GmbH has been treated as follows:
EUR1,000,000 was sold at face value on 2 March 2009. The balance is repayable in two instalments, EUR460,000 on 31 December 2009 and EUR500,000 on 31 December 2010. Repayment of these instalments is dependent on the continuing success of Pro2 Anlagentechnik GmbH. There are no indications that the instalments will not be recovered when due.
The EUR2,000,000 outstanding balance of the EUR3,000,000 working capital loan made to Pro2 in 2005 was repaid in full on 10 February 2009.
7. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit for the period from 420 997 2,008
continuing operations
Profit attributable to equity 1,187 522 2,391
holders of the parent
No. No. No.
Basic weighted average number of 92,883,878 92,146,067 92,488,613
ordinary shares
Dilutive effect of share options 952,106 977,006 765,596
Diluted weighted average number of 93,835,984 93,123,073 93,254,209
ordinary shares
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.
8. PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the six months ended 30 June 2009, the Group acquired assets with a cost of £1,494,000 (six months ended 30 June 2008: £1,542,000; year ended 31 December 2008: £2,801,000). There were no disposals during the period (six months ended 30 June 2008: nil; year ended 31 December 2008: nil).
Sale and finance leaseback
During the six months ended 30 June 2009, the Group entered into a new lease agreement for two items of plant with a total cost of £969,000.
9. GAS ASSETS
Acquisitions and disposals
During the six months ended 30 June 2009, the Group acquired assets with a cost of £2,204,000 (six months ended 30 June 2008: £581,000; year ended 31 December 2008: £1,666,000). There were no disposals during the period (six months ended 30 June 2008: nil; year ended 31 December 2008: nil).
10. CAPITAL COMMITMENTS
At 30 June 2009, the Group had the following capital commitments contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment £1,382,000 (30 June 2008: £133,000; 31 December 2008 £1,142,000);
Acquisition of gas assets £263,000 (30 June 2008: £334,000; 31 December 2008: £284,000).
11. ADDITIONAL CASH FLOW INFORMATION
Analysis of net funds
1 January 2009 Cash flow Exchange rate 30 June 2009
differences
Audited Unaudited
£'000 £'000 £'000 £'000
Cash at bank and in hand 1,826 1,727 (46) 3,507
Liquid resources 350 (350) - -
Cash and cash equivalents 2,176 1,377 (46) 3,507
Sale and finance leaseback (1,909) (753) 45 (2,617)
Net funds 267 624 (1) 890
Securities 305 509 (29) 785
Adjusted net funds* 572 1,133 (30) 1,675
1 January 2008 Cash flow Exchange rate 30 June 2008
differences
Audited Unaudited
£'000 £'000 £'000 £'000
Cash at bank and in hand 1,750 349 34 2,133
Liquid resources 350 - - 350
Cash and cash equivalents 2,100 349 34 2,483
Sale and finance leaseback (1,788) (249) - (2,037)
Net funds 312 100 34 446
Securities 443 (115) - 328
Adjusted net funds* 755 (15) 34 774
1 January 2008 Cash flow Exchange rate 31 December 2008
differences
Audited Audited
£'000 £'000 £'000 £'000
Cash at bank and in hand 1,750 76 - 1,826
Liquid resources 350 - - 350
Cash and cash equivalents 2,100 76 - 2,176
Sale and finance leaseback (1,788) (47) (74) (1,909)
Net funds 312 29 (74) 267
Securities 443 (138) - 305
Adjusted net funds* 755 (109) (74) 572
*This includes the effect of securities paid on finance lease transactions that are closely related to those items.
12. RELATED PARTY TRANSACTIONS
Transactions entered into and trading balances outstanding with related parties are as follows:
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
£'000 £'000 £'000
(a) Sales of goods and
services
* Associate1 - 23 230
* A-TEC Anlagentechnik GmbH2 - 141 48
- 164 278
(b) Purchases of goods and
services
* Associate1 - 1,351 1,525
* A-TEC Anlagentechnik GmbH2 - 97 174
- 1,448 1,699
(c) Period-end balances 30 June 2009 30 June 2008 31 December 2008
arising from sales/purchases
of goods/services
Unaudited Unaudited Audited
£'000 £'000 £'000
Receivables from related
parties:
* Associate1 - 23 48
* A-TEC Anlagentechnik GmbH2 - 10 14
Payments to related parties:
* Associate1 - 1,354 1,532
* A-TEC Anlagentechnik GmbH2 - 10 12
Outstanding balances arising from the sale and purchase of goods and services between related parties are unsecured and interest free.
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2009 2008 2008
Unaudited Unaudited Audited
(d) Key management compensation £'000 £'000 £'000
Salaries and other short-term 363 267 562
employee benefits
Long-term benefits 29 23 42
Share-based payments 13 - 5
405 290 609
(e) Loans to associate 30 June 30 June 31 December 2008
2009 2008
£'000 £'000 £'000
Unaudited Unaudited Audited
At 1 January 3,847 3,086 3,086
No longer classed as a related (3,847) - -
party1
Interest charged - 85 195
Interest received - (143) (307)
Exchange difference - 220 873
At period end - 3,248 3,847
The loans to associate relate to Pro2 Anlagentechnik GmbH which was a 38.01% associate undertaking up to 31 December 2008 (see note 6).
1Up to 31 December 2008 Pro2 Anlagentechnik GmbH was a 38.01% associate company. Effective from 1 January 2009, the investment in Pro2 Anlagentechnik GmbH was sold.
2Achim Wrsdrfer, a director and shareholder of Pro2 Anlagentechnik GmbH, an associate company up to 31 December 2008, is also a director of A-TEC Anlagentechnik GmbH.
13. GENERAL NOTE
Copies of this interim report will be sent to registered shareholders and further copies will be available from the Company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR CKPKPABKDQCD
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I've just read that again.
This press release is referring to the plan to use alkane's generators to burn grid gas isn't it? So that's an additional £300 on the bottom line really isn't it? These sites will still be generating from CMM as well. Bob More | View thread (3) | Respond | Login to Vote up | Login to Vote down |
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| 02-11-09 | ||||
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"Lkane is cash generative and has a hidden asset that is potentially worth the current market capitalisation, the UK CMM licences,"
Good point that. More | View thread (3) | Respond | Login to Vote up | Login to Vote down |
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| 02-11-09 |
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Hoodless says:
Alkane Energy (ALK, 18p, £16.72m) Has signed a tolling agreement, a form of sub-contract energy generation, with GDF Suez. The agreement will see excess generation capacity of 7MW generate revenues around £0.3m using natural gas supplies. The company has also signed an agreement for 2MW of Shirebrook’s coal mine methane (CMM) generation with the same company. ALkane is cash generative and has a hidden asset that is potentially worth the current market capitalisation, the UK CMM licences, but is being hit by lower electricity prices than previously fixed in the short term. We remain confident for the longer term and believe Alkane’s expertise and licences are worth considerably more than the current share price – we repeat our BUY recommendation last iterated on 16/09/09 at 23.75p. More | View thread (3) | Respond | Login to Vote up | Login to Vote down |
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| 27-09-09 |
HOLD
Re: Pros and Cons
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Already on-line??????
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They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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