Kedco cuts full-year losses, looks to continue growing

published 3 December 2012

Renewable energy group Kedco on Monday unveiled its preliminary results for the full year ended June 30th 2012.

The company announced losses before taxes and from continuing operations of €1.6m, versus the previous fiscal year's restated loss of €5.3m.

Meantime, the top-line expanded to reach €10.1m, far ahead of 2011's equivalent figure €936,000.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The outfit delivered significant cost savings through the exit from non-core and non-profitable business segments, creating a leaner, more efficient business structure with the focus purely on the renewable energy power generation business, management explained in a statement.

Administrative costs, for example, were cut to €0.95m from €3.6m in the previous fiscal year.

The group also reduced its annual interest charge by approximately €1.5m, while at the same time eliminating €10.8m in debt via a debt-for-equity swap and the sale of its Latvian subsidiary, SIA Vudlande.

Even so, the company's net loss fell in a less pronounced manner - to €2.5m from €4.5m a year ago - as discontinued operations added to the red ink to the tune of €870,000.

In addition to all of the above, during the period in question Kedco also managed to raise new financing, proceed with its expansion plans and pursue the acquisition of Reforce, with the latter expected to close imminently.

Its acquisition target is a project developer with 60 active projects and a capacity in excess of 40MW at various stages of development in the UK and Ireland. Furthermore, Kedco highlighted that Reforce has a strong and experienced management team with over 10 years' experience across 500MW+ of renewable energy projects.

Lastly, and amongst some of the key features of Kedco's business plan for the next twelve months are: starting construction of the 12MW Enfield Biomass project, in London; to start the installation of the second stage of the 4MW Newry Biomass which will be fully commissioned by end of the 2013; to obtain planning permission for the 8MW Clay Cross Biomass project.