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Annual Results

Active Energy losses widen

15 June 2016 07:36

Active Energy posts an operating loss of $3,412,643 for the year ended 31 December (2014 $1,260,724).

The group also had to absorb finance costs of $1,437,162 (2014: $1,077,420) and a share of losses attributable to our joint venture arrangements in Canada amounting to $619,262 (2014: $372,984), which it expects to be recovered when that business begins operations and makes profits in the future.

Pre-tax losses rose to $5.5m from $2.7m last time.

The group said a 40% increase in wood chip for MDF revenue to $24.378 million enabled it to maintain revenues (2014: $23.324 million) despite discontinuing woodchip for biomass activity in 2014. Gross profit for the year was $1.985 million (2014: $2.731 million).

Chief executive Richard Spinks said, "This has been a transformational period for Active Energy with our core business, AEG WoodFibre, providing a cornerstone for the development of our diversified operations. We have made great strides across the business and have created an exciting vertically integrated corporate structure that we believe has the ability to generate significant shareholder value.

"We have invested in increasing capacity at AEG WoodFibre, which could increase revenue in 2016 to circa US$50 million. We have also further capitalised on our teams' unique expertise, industry knowledge and networks to advance the AEG CoalSwitch JV, whose fibre based coal replacement fuel has the potential to transform the provision of coal energy.

"Following tests by the University of Utah, we confirmed CoalSwitch's product's ability to closely replicate the qualities of coal, a true breakthrough in the task of the global obligations in reducing carbon emissions and the reliance on coal.

"The interest shown by potential end users, including power stations and utilities, has been extremely positive, leading to us to focus business development activities on a shortlist of key opportunities, including in Alberta, where CoalSwitch has the capability of dramatically increasing the value of the Alberta's low value and ageing Aspen stands, currently not commercial in any other use. With progress also made within AEG Timberlands in Alberta, which we expect to update the market on shortly, we believe we are entering an exciting period with significant milestones, which should have an important impact on the business and begin to show significantly stronger returns for our investors."

Story provided by StockMarketWire.com

Related Company: AEG

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