Energy group in hunt for funding

Renewable energy group Kedco is looking for fresh funding to continue developing its biomass power plants.

The Cork-headquartered, AIM-listed company reported interim results for the six months to Dec 31, 2011, which showed pre-tax losses at the company decreased to e370,000 (first half 2010: €1.4m) due to overhead cost reductions.

The company reported a gross profit of €1.06m (€1.3m in first half 2010), reduced due to a decrease in the market price of sawn timber plus a decision to hold finished goods in inventory until Q1 2012.

Kedco generated an operating profit of e400,000 (first half 2011: loss e450,000) and positive operating cash flows e600,000 (e10,000) before working capital changes.

Interim chief executive and finance director, Gerry Madden, said the company’s strategy remained to build, own, and operate biomass power-generating plants.

“The current pipeline of identified projects remains very strong and following the completion of the financing of the Newry project, the company is now looking to secure additional funding during 2012 in order to continue to develop our pipeline of projects, and we are currently exploring a number of options in relation to how this funding will be secured.

“As we move on in 2012, the board has a clear focus and determination to create shareholder value through execution of our project pipeline. To date in 2012 all of these projects are progressing well,” he said.

Mr Madden said that following a strategic review in Mar 2011, the company refocused its business portfolio on core activities and delivered cost savings by exiting non-core and non-profitable business activities.

“We successfully executed this strategy throughout 2011 and the company is now leaner and more efficient as a result. We will continue to pursue this strategy through 2012,” he added.