Energy firm sees losses widen

KEDCO, the Cork-based alternative energy specialist, has reported a widening in full-year losses to €4.53 million.

The AIM-listed “waste- to-energy” group generated revenues of over €11.1m in the 12 months to the end of June. That was up from €9m for the previous year. However, the total loss was also up, from €3.42m in 2010.

Kedco’s earnings per share for the year were unmoved at 2c. The company said until such time as it generates sufficient cashflow from its projects, the preservation of cash and securing additional finance “remain a priority”.

“We’ll continue our disciplined reduction of non-core and non-profitable assets. Whilst the company’s strategy is to build, own and operate biomass power-generating plants, once a site has been secured and planning has been obtained, we would be in a position, if we so chose, to monetise either part or all of any project,” interim chief executive/finance director Gerry Madden said.

He added that economic conditions remain “uncertain” and restricted credit markets “could continue to have an impact on the availability of finance”.

Operational highlights for the year included reaching agreement with Ulster Bank on a £9.44 million (€11m) lending facility for completion, development and commissioning of its four megawatt biomass electricity and heat-generating plant in Newry and the signing of a joint venture partner on the project.

Tenders are also being prepared for the construction of its £45m biomass wood gasification plant in North London, while sites have been identified for future developments.