Aggregated Micro Power Holdings PLC – Year End Update
Aggregated Micro Power Holdings plc (AIM: AMPH), trading as AMP Clean Energy, the specialist provider of distributed heat, power and renewable fuels, announces a year-end update in respect of the year ended 31 March 2019.
We have achieved strong out-performance in both Urban Reserve and IncubEx but we have had a difficult year in Wood Fuels. However, we expect the Wood Fuels business to achieve satisfactory levels of profitability going forward.
Wood Fuels
The business has been impacted by significantly warmer weather during the financial year and particularly during February and March.
During the year, the Wood Fuels business has also undergone a transformative restructuring to bring all operations into a single management and brand platform which has further consolidated its market leading position. This will result in significant non-recurring costs from depot closures, office relocations, redundancies and stock revaluations; all of which has been expensed through the profit and loss account although a portion may be allocated to prior period restatements.
As a consequence, the Group is expected to generate revenues and income of £50m and a statutory EBITDA loss in the region of £1.3m.
Project Development
Development fee receipts should be ahead of expectations due to the strong progress made in developing flexible generation sites for Urban Reserve. As at 31 March 2019, we have submitted planning applications for 13 sites amounting to 49.7 MWs. So far, ten sites (37.5 MWs) have received planning approval and the remaining three sites are expected to be decided upon shortly. In aggregate, this will provide a shovel ready portfolio of circa 50 MWs.
We are confident of increasing our future development estimates to 100 MWs per annum, being double that we previously indicated. If achieved, Urban Reserve should generate development fees of £5m per annum.
In light of the increased opportunity from Urban Reserve, we are currently looking at a variety of SPV financing options with infrastructure funds and strategic investors.
IncubEx
AMP has a 29% stake in IncubEx(a) which reports on a calendar year basis. Its results for the last calendar year showed gross revenues of over €12m and this figure was significantly ahead of forecast. In conjunction with Nodal Exchange, IncubEx launched a suite of North American Environmental products in November and volumes have exceeded expectations during the first few months from launch.
Outlook
The Company re-affirms its revenue and EBITDA expectations in respect of the year to 31 March 2020.
Richard Burrell, Chief Executive of Aggregated Micro Power Holdings plc, said:
“After a difficult year in Wood Fuels, we truly believe we have a firm grasp on this business and expect it to achieve satisfactory levels of profitability going forward. We are delighted with the out-performance in both Urban Reserve and Incubex.”