Energy firm to accelerate growth after posting pre-tax loss of €1m

Cork-headquartered energy infrastructure firm, REACT Energy is looking to accelerate its growth by bringing current projects on stream at a quicker rate and making more acquisitions.

Earlier this month, the AIM-listed firm announced the €2.8m acquisition of Cambridge-based biomass plant developer GGES. It said the move positions it as the main consolidator in the UK’s thriving small-to-mid- sized energy infrastructure market.

REACT has over 15 biomass plants in Ireland — and another four in Britain — either already operational or at some point in the planning process.

Yesterday, on the back of the firm’s half-year financial results, CEO Gerry Madden said that the company has the expertise to put in place the finance structures needed to grow and the ability to complete long-term energy supply contracts.

“We will build on the progress we have made over the last number of months and expect to further accelerate the growth rate of the enlarged group,” he added.

REACT yesterday reported a pre-tax loss of €1.01m for the six months to the end of December; marginally down on a figure of €1.04m for the corresponding period the previous year. Revenue amounted to €142,241; down from €1.76m a year earlier.

Management said that it remains focused on consolidating its market leading position in the UK and will continue to focus on its funding requirements — including raising additional project debt and equity and securing additional funds.

REACT has also said that it is actively looking for “a select number” of further bolt-on acquisitions in the UK, with it already having proposed raising up to €1.5m, via the issue of secured loan notes, to fund such a move.