Rurelec PLC – Interim Results

Rurelec PLC – Interim Results

Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, today announces its unaudited interim results for the six months ended 30 June 2019.

Financial Highlights:

  • Post tax (loss) / profit - £0.45 million loss (2018: £1.11 million profit)
  • Profit / (loss) per share - 0.08 pence loss (2018: 0.20 pence profit)
  • Net asset value per share - 4.3 pence (2018: 4.7 pence)
  • Net cash inflow before loan repayments - £1.06 million (2018: £0.24 million)                 

Operational and Post Half-Year Highlights: 

  • The main factor behind the change in operating profitability from £0.52 million profit for 2018 to £0.43 million loss for 2019 is that the 2018 results included the £1.25 million one-off gain on the sale of the Peruvian operations completed in the first half of 2018.
  • Post half-year receipt of the final amounts due from the disposal of Peruvian operations.
  • A 26% reduction in administrative expenses from £0.73 million to £0.54 million.
  • A significant improvement in cashflow - net cash inflow before repaying term loans increased from £0.24 million to £1.06 million.
  • A reduction in Group receivables from £18.49 million to £15.50 million due to debt repayments by the Argentinian operations and foreign exchange movements.
  • Significant reduction in current liabilities from £2.41 million to £0.92 million due to a £1.37 million reduction in borrowings and a £0.12 million reduction in trade payables.
  • Energia del Sur S.A.("EdS"), the Argentinian operating business, settled outstanding secured group debts in full, remitting £1.13 million of secured debt repayments (2018: £1.08 million) and £0.40 million of unsecured debt repayments (2018: £nil).
  • A major reduction in Group borrowings from £1.52 million to £0.15 million driven by the repayment of secured debt principal and interest owed to Bridge Properties (Arena Central) Ltd ("BPAC").
  • Commensurate with the fall in indebtedness, the interest costs of the Group fell to £50k (2018: £75k).
  • Chile -The Rurelec Board continues to explore options for the Chilean operations and the Group's two 128 MW Turbines.  

Commenting on the results, Simon Morris and Andy Coveney, Rurelec's Executive Directors, said:

"The Board continues to pursue measures to restore value to the Company and its shareholders through prioritisation of receiving cash receipts from the power generation plant in Argentina, selling or developing its assets in Chile and reviewing options for its turbine assets, whilst pursuing cost savings at the head office in London."   

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