Renewable Energy Holdings plc, the AIM quoted investor in, and operator of, European wind power, announced its preliminary results for the year ended 31 December 2011.
Subsequent to the year end, the Board of Directors has reached the decision that it would be in the best interests of shareholders to dispose of all of the Company’s assets and return the net proceeds to them by way of a cash distribution, or such other return of capital that is deemed most efficient at the time, having taken necessary advice.
Management has conducted a rigorous review of REH’s assets, in order to determine the most appropriate sale process to adopt, in each case to maximise shareholder value in the shortest possible time.
Poland – created an electronic data room which contains all pertinent documentation evidencing the efficacy of REH’s fully permitted 30MW wind project.
Wales – planning application for an 81MW wind project has been completed and it is REH’s intention that it will be submitted to the planning authorities during the second or third quarter of 2012. Subject to the granting of the permits, this is a first class project of significant size and value, and during the planning review period, it will be pre-marketed to qualified buyers.
Carnegie Wave Energy- REH will seek a strategic investor to take all of REH’s shareholding in Carnegie Wave Energy (25.8% as at 31 December 2011) and will work closely with the management in Carnegie in doing so.
Cost controls continued to be in place throughout 2011, with £1m savings on an annualised basis.
Commenting on the results, Mike Proffitt, Chief Executive of REH, said:
“With the continued difficult capital environment setting the context for the business, the Board explored every avenue for achieving value for its shareholders and it is my view, that the realisable value of the Company’s assets significantly exceeds its current market capitalisation. Accordingly, a return of those funds to shareholders after an orderly sell down of assets is the best course of action in light of the current market conditions.”
He continued: “We will seek a strategic investor to take all of our holding in Carnegie Wave Energy (“Carnegie”) and we will work closely with the management in Carnegie in doing so.”
” The Board continues to have confidence in the CETO Wave Energy Technology and the potential value it can return to the Company’s shareholders. Whilst we do not believe that the current Carnegie share price reflects the true value of the technology, in order to comply with International Financial Reporting Standards as adopted by the European Union, the Company has impaired the Balance Sheet carrying value of its investment to the market price on the 31 December 2011. This impairment has resulted in a non-cash expense of £12.1m recognised in the Consolidated Income Statement.”
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Offshore WIND staff, May 02, 2012; Image: carnegie