Helius Energy plc Interim Report 2009 by ijk77032

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									                                              Helius Energy plc
InterIm fInancIal r port for the half year to 31 march 2009
our ComPany

The Helius Group is at the forefront of these developments by
delivering sustainable energy from Biomass. Using its extensive
knowledge of renewable energy markets and Biomass energy
technologies, Helius Energy is developing both large (over 60MWe)
and smaller (over 5MWe) GreenSwitch® Biomass powered electricity
generation plants.

These plants will be operated by the Group and located at carefully selected sites to serve
markets with immediate and growing demands for energy and where sustainable
feedstock and the associated infrastructure, is readily available.




                                   our strategy

                                   Helius Energy plc was established to install and operate
                                   Biomass fired renewable electricity plants and to take advantage
                                   of associated business opportunities in accordance with our Earth to
                                   Energy® strategy. This delivers a sustainable business and includes
                                   integrated biomass feedstock supply chains and co-product utilisation.
                                   Such developments will help to meet the Government’s targets for
                                   renewable energy and climate change mitigation. To achieve our
                                   strategy Helius has assembled a skilled management team with
                                   significant knowledge and expertise in the energy, manufacturing,
                                   biomass, engineering and agribusiness sectors.

                                   We are targeting sites where the availability of the feedstock is
                                   optimised. For our larger projects this means access to appropriate
                                   transport links while our GreenSwitch® plants are designed to make
                                   use of readily available feedstock to generate electricity and heat for
                                   both onsite use and export to local markets and the electricity grid.
                                   Our award winning GreenFields® technology also integrates with
                                   processes such as brewing, distilling and food processing to
                                   maximise the potential of valuable process co-products for energy
                                   and other uses.
                                                     01 HigHligHts
                                                     02 CHairman’s statement to members
                                                     04 Condensed Consolidated inCome statement
                                                        – unaudited
                                                     05 Consolidated balanCe sHeet – unaudited
                                                     06 Condensed Consolidated CasH flow statement
                                                        – unaudited
                                                     07 Condensed Consolidated statement of CHanges
                                                        in equity – unaudited
                                                     09 notes to tHe unaudited Condensed
                                                        Consolidated finanCial statements
                                                     12 general information




HigHligHts

Secured site at the Port of Bristol for a large
Biomass Power Plant
Planning permission granted for a Biomass
project at Rothes in Morayshire
Submitted application for S36 consent
and deemed planning for a 100MWe plant
at the Port of Bristol
Delivered profits of £19k for the six months
ended March 2009




                       Helius Energy plc interim financial report for the half year to 31 March 2009   01
CHairman’s statement to members




                                                                     barClay forrest,
                                                                     interim non-executive chairman




Helius is fortunate in today’s difficult market to have a strong
cash position, no debt and a pipeline of renewable projects
which will deliver long term shareholder value.


While imports of sustainable                                         I am delighted to report our interim results for
biomass fuels will play an                                           the six months ending 31 March 2009. Since
important role in many biomass                                       our last annual report, in which we reported the
projects, the UK has a large                                         successful sale of our first project to RWE Innogy,
untapped biomass supply.                                             resulting in profits of £30 million and a net cash
                                                                     position of £24 million, we have continued to make
The UK Biomass Strategy (2007)                                       progress in developing a pipeline of renewable
estimates that there are currently                                   energy projects.
>18 million dry tonnes of UK
biomass available each year.*
                                                                     In October 2008 we secured a lease and option on
A recent study by ADAS for                                           a site at the Port of Bristol where we have submitted
the NNFCC (2008) concluded                                           a S36 application for consent to the Department of
that 14.7 million oven dry tonnes                                    Energy and Climate Change for the construction
(ODT) of biomass is currently                                        of a 100MWe Biomass power plant.
produced in the UK, with the
potential for an additional                                          In December 2008 we received the Scottish
15.7 million ODT each year.**                                        Green Energy award for Best Environmental Initiative
                                                                     for our GreenFields® process. In January 2009 planning
IEA Bioenergy Task 40 (2007)
                                                                     consent was granted for a 7.2MWe GreenSwitch®
estimates that more than
                                                                     Biomass power plant at Rothes in Morayshire and we
30 million ODT of biomass is
                                                                     have made good progress in negotiating the agreements
available in the UK from existing
                                                                     necessary to build, fuel and operate the plant.
land use.†
The Forestry Commission                                              February 2009 saw the Energy White Paper enter
estimates that there are more than                                   the statute books. Biomass projects will now receive
400,000 hectares of neglected                                        1.5 Renewable Obligation Certificates (ROCs)
woodlands in England.‡                                               per MWe generated; rising to 2 ROCs if the plant
                                                                     produces heat, and the ROC regime has been
See page 12 for references.                                          extended to 2037.




02                 Helius Energy plc interim financial report for the half year to 31 March 2009
For the six months ending March 2009 the Group                  Looking ahead we will:
reported a profit of £19k, compared with a loss of               continue to work on delivering the projects
£1.2 million for the corresponding period last year.               in Bristol and Rothes;
This profit includes £0.5 million of revenues attributable
                                                                 secure additional sites for future renewable
to the transitional services agreement we have with
                                                                  energy projects; and
RWE Innogy, interest of £0.3 million earned on our
cash balances, and reduced administration costs                  further develop our GreenFields® business to ensure
of £0.8 million compared with £0.9 million for the                we see the financial benefits of the work we have
corresponding period last year (before shared-based               done to date.
payment costs). We reported £16.8 million of net
cash, a reduction of £7.1 million due to payments               Helius is fortunate in today’s difficult market to
to creditors of £5.5 million, a large part of which             have a strong cash position, no debt and a pipeline
was linked to the costs incurred in the sale of the             of renewable projects which will deliver long term
Stallingborough project to RWE Innogy last year,                shareholder value. I would like to thank the growing
and investment in current projects of £1.5 million              list of shareholders for their continued interest and
reflecting our continued focus on our project pipeline.         ongoing support of Helius Energy plc.


We said at the time of our preliminary results
announcement in January 2009 that the Group
intended to fully review its Board structure and
resourcing. Alex Worrell, who made an important
contribution to Helius as Non-Executive Chairman,
                                                                barClay forrest
notified the Board of his resignation to pursue other
                                                                interim non-executive chairman
interests. The Company has appointed recruitment
consultants to search for a new Non-Executive Chairman
and, until a replacement is found, I will be acting as
Interim Non-Executive Chairman. We have added
to our team with the appointment of a Feedstock
Director, an Implementation Director and our
own legal counsel.




                                   Helius Energy plc interim financial report for the half year to 31 March 2009        03
Condensed Consolidated inCome statement – unaudited
for tHe six montHs ended 31 marCH 2009

                                                                                      Six months      Six months            Year
                                                                                           ended           ended          ended
                                                                                        31 March        31 March   30 September
                                                                                            2009            2008           2008
                                                                           Notes               £               £               £

Continuing operations

Revenue                                                                                 553,760              —               —

Cost of sales                                                                           (56,276)         (1,245)             —

Gross profit/(loss)                                                                     497,484          (1,245)             —

Other administrative expenses                                                          (825,548)      (894,693)     (1,924,693)

Share-based payment costs                                                                        —    (187,445)       (325,960)

Total administrative expenses                                                          (825,548)     (1,082,138)    (2,250,653)

Sale of Helius Alpha Ltd                                                                         —           —      33,593,672

Operating (loss)/profit                                                                (328,064)     (1,083,383)    31,343,019

Finance income                                                                          346,939         39,883          43,752

Finance expenses                                                                                 —    (125,842)       (712,987)

Profit/(loss) before tax                                                                 18,875      (1,169,342)    30,673,784

Tax                                                                                              —           —               —

Profit/(loss) for the period                                                             18,875      (1,169,342)    30,673,784

Basic profit/loss per share attributable to
equity holders of the parent company (pence)                                    2           0.02          (1.66)          42.54

Diluted profit/loss per share attributable to
equity holders of the parent company (pence)                                    2           0.02          (1.66)          38.22

The above condensed consolidated income statement should be read in conjunction with the accompanying notes.




04               Helius Energy plc interim financial report for the half year to 31 March 2009
Consolidated balanCe sHeet – unaudited
as at 31 marCH 2009

                                                                                      31 March         31 March     30 September
                                                                                          2009             2008             2008
                                                                                             £                £                £

non-current assets

Property, plant and equipment                                                       2,122,305        2,654,374          651,304

Loans and receivables                                                             14,254,000                  —     14,254,000

Total non-current assets                                                          16,376,305         2,654,374      14,905,304

Current assets

Trade and other receivables                                                         1,886,925          120,319        2,013,262

Cash and cash equivalents                                                         16,834,035           580,132      23,949,171

Total current assets                                                              18,720,960           700,451      25,962,433

Total assets                                                                      35,097,265         3,354,825      40,867,737

Current liabilities

Trade and other payables                                                             (977,941)        (659,737)      (6,533,939)

Total current liabilities                                                            (977,941)        (659,737)      (6,533,939)

Non-current liabilities

Loan                                                                                   (76,129)     (2,322,848)         (76,489)

Total non-current liabilities                                                          (76,129)     (2,322,848)         (76,489)

Total liabilities                                                                  (1,054,070)      (2,982,585)      (6,610,428)

net assets                                                                        34,043,195           372,240      34,257,309

Total capital and reserves attributable to equity holders of the parent company

Issued capital                                                                      5,389,490        3,636,379        5,622,479

Merger reserve                                                                      1,850,225        1,850,225        1,850,225

Convertible debt reserve                                                                     —           82,672              —

Retained earnings/(deficit)                                                       26,803,480        (5,197,036)     26,784,605

Total equity                                                                      34,043,195           372,240      34,257,309

The above consolidated balance sheet should be read in conjunction with the accompanying notes.




                                    Helius Energy plc interim financial report for the half year to 31 March 2009            05
Condensed Consolidated CasH flow statement – unaudited
for tHe six montHs ended 31 marCH 2009

                                                                                        Six months      Six months            Year
                                                                                             ended           ended          ended
                                                                                          31 March        31 March   30 September
                                                                                              2009            2008           2008
                                                                             Notes               £               £               £

Operating activities

Profit after tax                                                                           18,875      (1,169,342)    30,673,784

Depreciation                                                                                 9,193          6,038         14,372

Finance income                                                                           (346,939)        (39,883)       (43,752)

Finance expense                                                                                    —     125,842         712,987

Share option costs                                                                                 —     187,445         325,960

Profit on sale of subsidiary                                                                       —           —     (33,593,672)

Loss before changes in working capital and provisions                                    (318,871)      (889,900)     (1,910,321)

Decrease/(increase) in trade and other receivables                                        126,337           6,327       (491,617)

(Decrease)/increase in trade and other payables                                        (5,556,358)       144,059       1,215,851

Net cash absorbed in operating activities                                              (5,748,892)      (739,514)     (1,186,087)

Investing activities

Purchase of property, plant and equipment                                         3    (1,480,193)     (1,381,736)    (3,385,519)

Cash on sale of subsidiary                                                                         —           —      26,745,600

Interest received                                                                         346,939         39,883          43,752

Net cash (used in)/from investing activities                                           (1,133,254)     (1,341,853)    23,403,833

Financing activities

Share issue                                                                                        —           —       2,009,000

Share buyback                                                                     4      (232,990)      (233,563)       (256,463)

Loan stock issued net of fees                                                                      —     750,000         826,489

Interest paid and finance expenses                                                                 —      (78,750)      (571,413)

Loan repayment                                                                                     —           —      (2,500,000)

Net cash from financing activities                                                       (232,990)       437,687        (492,387)

Net (decrease)/increase in cash and cash equivalents                                   (7,115,136)     (1,643,680)    21,725,359

Cash and cash equivalents at the beginning of the period                              23,949,171       2,223,812       2,223,812

Cash and cash equivalents at the end of the period                                    16,834,035         580,132      23,949,171

The above condensed consolidated cash flow statement should be read in conjunction with the accompanying notes.




06                 Helius Energy plc interim financial report for the half year to 31 March 2009
Condensed Consolidated statement of CHanges in equity – unaudited
for tHe six montHs ended 31 marCH 2009

                                 Convertible             Share           Share           Merger         Retained
                                debt reserve            capital       premium            reserve        earnings           Total
2008                                       £                 £               £                 £               £              £

Changes in equity

At 1 October 2007                     55,713         712,524        3,157,418        1,850,225      (4,215,139)      1,560,741

Profit for the year                        —                —               —                —      30,673,784      30,673,784

Total recognised income
and expense for the year                   —                —               —                —      30,673,784      30,673,784

Issue of share capital                     —         148,898        1,860,102                —                —      2,009,000

Share buyback                              —           (7,148)       (249,315)               —                —       (256,463)

Share-based payments                       —                —               —                —         325,960         325,960

Issue of convertible debt option,
net of issue costs                    26,959                —               —                —                —         26,959

Cancellation of convertible
debt reserve                         (82,672)               —               —                —                —        (82,672)

Balance at 30 September 2008               —         854,274       4,768,205        1,850,225      26,784,605       34,257,309



                                 Convertible             Share           Share           Merger         Retained
                                debt reserve            capital       premium            reserve        earnings           Total
2008                                       £                 £               £                 £               £              £

Changes in equity

At 1 October 2007                     55,713         712,524        3,157,418        1,850,225      (4,215,139)      1,560,741

Loss for the period                        —                —               —                —      (1,169,342)      (1,169,342)

Total recognised income
and expense for the year                   —                —               —                —      (1,169,342)      (1,169,342)

Issue of share capital                     —              250            2,750               —                —          3,000

Share buyback (note 4)                     —           (6,526)       (230,037)               —                —       (236,563)

Share-based payments                       —                —               —                —         187,445         187,445

Issue of convertible debt option,
net of issue costs                    26,959                —               —                —                —         26,959

Balance at 31 March 2008              82,672         706,248       2,930,131        1,850,225      (5,197,036)        372,240




                                    Helius Energy plc interim financial report for the half year to 31 March 2009           07
Consolidated statement of CHanges in equity – unaudited Continued
for tHe six montHs ended 31 marCH 2009

                                   Convertible            Share           Share           Merger       Retained
                                  debt reserve           capital       premium            reserve      earnings         Total
2009                                         £                £               £                 £             £            £

Changes in equity

At 1 October 2008                           —         854,274        4,768,205       1,850,225      26,784,605    34,257,309

Profit for the year                         —                —               —                  —       18,875        18,875

Total recognised income
and expense for the year                    —                —               —                  —       18,875        18,875

Issue of share capital                      —                —               —                  —           —             —

Share buyback                               —          (10,130)       (222,859)                 —           —       (232,989)

Balance at 31 March 2009                    —         844,144       4,545,346        1,850,225      26,803,480    34,043,195




08              Helius Energy plc interim financial report for the half year to 31 March 2009
notes to tHe unaudited Condensed Consolidated finanCial statements

aCCounting PoliCies
1. Basis of PreParation
This interim financial report has been prepared using accounting policies that are consistent with those used in the
preparation of the full financial statements to 30 September 2008 and those which management expects to apply
in the Group’s full financial statements to 30 September 2009.

The comparative financial information for the year ended 30 September 2008 does not constitute the Group’s
statutory accounts for that year but is derived from those accounts. Statutory accounts for the period ended
30 September 2008 have been delivered to the Registrar of Companies. The auditors have reported on those
accounts. Their audit report was unqualified, did not include references to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2)
or 237(3) of the Companies Act 1985. This interim financial report has neither been audited nor reviewed pursuant
to guidance issued by the Auditing Practices Board.




                                 Helius Energy plc interim financial report for the half year to 31 March 2009   09
notes to tHe unaudited Condensed Consolidated finanCial statements
Continued
aCCounting PoliCies
2. earnings Per share
The calculation of the loss per share is based on the following data:
                                                                                    Six months    Six months            Year
                                                                                         ended         ended          ended
                                                                                      31 March      31 March   30 September
                                                                                          2009          2008           2008
                                                                                             £             £               £

Profit/(loss)
Profit/(loss) used in calculating basic and diluted profit/(loss)
per share for the period                                                                18,875   (1,169,342)    30,673,784
Number of shares
Weighted average number of ordinary shares for the purpose
of basic profit/(loss) per share                                                    85,076,666   70,601,468     72,102,817
Effect of employees share options                                                    8,134,604           —       8,134,604
Weighted average number of ordinary shares for the purpose
of basic profit/(loss) per share                                                    93,211,270   70,601,468     80,237,421




10             Helius Energy plc interim financial report for the half year to 31 March 2009
aCCounting PoliCies
3. ProPerty, Plant and equiPment
During the six months ended 31 March 2009 the Company has purchased plant and equipment totalling
£1.5 million (six months ended 31 March 2008: £1.4 million).

4. share caPital
During the six months ended 31 March 2009 the Company has bought back 1,013,000 shares totalling £233,000
(six months ended 31 March 2008: 652,600 shares totalling £234,000).

5. events after the Balance sheet date
On the 23 April Alex Worrall resigned as Non-Executive Chairman.

On the 28 April Michelle Morris resigned as an Executive Director.




                                 Helius Energy plc interim financial report for the half year to 31 March 2009   11
general information

direCtors                                                                        registered offiCe
John Barclay Forrest OBE (Non-Executive Director,                                South Tees Business Centre
Interim Non-Executive Chairman as of 23 April 2009)                              Puddlers Road
Alex Worrall FCCA (Non-Executive Chairman                                        Middlesborough TS6 6TL
– resigned 23 April 2009)
John Seed (Executive Managing Director)                                          soliCitors
Alan Lyons ACMA (Executive Financial Director)                                   Pinsent Masons
Dr Adrian Bowles (Executive Technical Director)                                  Citypoint
Christopher Corner BSc (Executive Commercial Director)                           1 Ropemaker Street
Demetri Pappadopoulos (Non-Executive Director                                    London EC2Y 9AH
– resigned 21 January 2009)
Michelle Morris (Executive Director                                              auditors
– resigned 28 April 2009)                                                        BDO Stoy Hayward LLP
                                                                                 1 Bridgewater Place
ComPany seCretary                                                                Water Lane
Alan Lyons                                                                       Leeds LS11 5RU
South Tees Business Centre
Puddlers Road
Middlesborough TS6 6TL




referenCes for Page 2; CHairman’s statement to members

 * DTI, Department for Transport, Defra (2007) UK Biomass Strategy.

** Kilpatrick, J. (2008) Addressing Land Use Issues for Non-Food Crops, in Response to Increasing Fuel and Energy Generation Opportunities, ADAS
   for National Non-Food Crops Centre.

 † Perry, M. & Rosillo-Calle, F. (2007) INTERNATIONAL ENERGY AGENCY (IEA) BIOENERGY TASK40 ON: ‘Sustainable International BioEnergy Trade:
   Securing supply and demand’ – Country Report for United Kingdom, Imperial College London for IEA Bioenergy Task 40 (Report T40UK4/07).

 ‡ Presentation by Rod Leslie, of the Forestry Commission to the REA Bioenergy Conference 2007. Reported in article ‘Renewable heat supply needs work’
   by Richard Crowhurst in Enagri Issue No. 20 (November 2007).


12                  Helius Energy plc interim financial report for the half year to 31 March 2009
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registered offiCe
Helius Energy plc
South Tees Business Centre
Middlesbrough TS6 6TL
United Kingdom
Tel: +44 (0)1642 438540

grimsby offiCe
Administrative Centre
Europarc Innovation Centre
Innovation Way                                      ®

Grimsby DN37 9TT
United Kingdom

                             Switching on the Green Light®
london offiCe
                             Earth to Energy®
15 Old Bailey
London EC4M 7EF              GreenSwitch®
United Kingdom               GreenFields®
                             Helius® and the Helius e-mark
enquiries@heliusenergy.com   are all Registered Trade Marks
www.heliusenergy.com         of Helius Energy plc

								
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