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26 May 2009

Helius Energy plc

Interim results for the Half Year to 31st March 2009

Helius Energy plc, ('Helius' or 'the Group') which was established to install and operate biomass fired renewable electricity generation plants, today is pleased to announce its financial statements for the half year to 31 March 2009.  

Key financial highlights

• Profit before tax of £18,875 (H1 2007/08 loss of £1,169,342)

• Profit includes £0.5 million of revenues attributable to the transitional services agreement with RWE Innogy

• Earnings per share of £0.02 (H1 2007/08 loss per share of 1.66 pence)

• £16.8 million of net cash 

Key operational highlights

• Secured site at the Port of Bristol for a large Biomass Power Plant

• Planning permission granted for a Biomass project at Rothes in Morayshire

• Submitted application for S36 consent for a 100MWe plant at the Port of Bristol

Commenting on the results, Helius Energy Interim Non-Executive Chairman, Barclay Forrest, said:

'Helius is fortunate in today's difficult market to have a strong cash position, no debt and a pipeline of renewable projects which will deliver long term shareholder value. Looking ahead, our Bristol and Rothes projects are on schedule and we expect to announce a third large site for a renewable energy project before the end of the year.' 

For more information please contact:

Helius Energy plc	Tel: 020 7554 1400
John Seed, Managing Director
Alan Lyons, Finance Director
Matrix Corporate Capital LLP	Tel: 020 3206 7000
Louis Castro
Anu Tayal
Kreab Gavin Anderson	Tel: 020 7554 1400
Ken Cronin
Robert Speed
Kate Hill
Alex Gowlland

Notes to Editors:

Helius Energy plc was established to install and operate Biomass fired renewable electricity plants and to take advantage of associated business opportunities in accordance with its Earth to Energy© strategy. This delivers a sustainable business and includes integrated biomass feedstock supply chains and co-product utilisation. Such developments will help to meet the Government's targets for renewable energy and climate change mitigation. To achieve its strategy, Helius has assembled a skilled management team with significant knowledge and expertise in the energy, manufacturing, biomass, engineering and agribusiness sectors. 

Helius is targeting sites where the availability of the feedstock is optimised. For its larger projects this means access to appropriate transport links while its GreenSwitch© plants are designed to make use of readily available feedstock to generate electricity and heat for both onsite use and export to local markets and the electricity grid. Its award winning GreenFields© technology also integrates with processes such as brewing, distilling and food processing to maximise the potential of valuable process co-products for energy and other uses.

Chairman's Statement

'Helius is fortunate in today's difficult market to have a strong cash position, no debt and a pipeline of renewable projects which will deliver long term shareholder value.'

I am delighted to report our interim results for the six months ending 31 March 2009. Since our last annual report, in which we reported the successful sale of our first project to RWE Innogy, resulting in profits of £30 million and a net cash position of £24 million, we have continued to make progress in developing a pipeline of renewable energy projects.

In October 2008 we secured a lease and option on a site at the Port of Bristol where we have submitted a S36 application for consent to the Department of Energy and Climate Change for the construction of a 100MWe Biomass power plant.

In December 2008 we received the Scottish Green Energy award for Best Environmental Initiative for our GreenFields® process. In January 2009 planning consent was granted for a 7.2MWe GreenSwitch® Biomass power plant at Rothes in Morayshire and we have made good progress in negotiating the agreements necessary to build, fuel and operate the plant. 

February 2009 saw the Energy White Paper enter the statute books. Biomass projects will now receive 1.5 Renewable Obligation Certificates (ROCs) per MWe generated; rising to 2 ROCs if the plant produces heat, and the ROC regime has been extended to 2037.

For the six months ending March 2009 the Group reported a profit of £19k, compared with a loss of £1.2 million for the corresponding period last year. This profit includes £0.5 million of revenues attributable to the transitional services agreement we have with RWE Innogy, interest of £0.3 million earned on our cash balances, and reduced administration costs of £0.8 million compared with £0.9 million for the corresponding period last year (before shared-based payment costs). We reported £16.8 million of net cash, a reduction of £7.1 million due to payments to creditors of £5.5 million, a large part of which was linked to the costs incurred in the sale of the Stallingborough project to RWE Innogy last year, and investment in current projects of £1.5 million reflecting our continued focus on our project pipeline.

We said at the time of our preliminary results announcement in January 2009 that the Group intended to fully review its Board structure and resourcing. Alex Worrell, who made an important contribution to Helius as Non-Executive Chairman, notified the Board of his resignation to pursue other interests. The Company has appointed recruitment consultants to search for a new Non-Executive Chairman and, until a replacement is found, I will be acting as Interim Non-Executive Chairman. We have added to our team with the appointment of a Feedstock Director, an Implementation Director and our own legal counsel.

Looking ahead we will:

• continue to work on delivering the projects in Bristol and Rothes;

• secure additional sites for future renewable energy projects; and

• further develop our GreenFields® business to ensure we see the financial benefits of the work we have done to date. 

Helius is fortunate in today's difficult market to have a strong cash position, no debt and a pipeline of renewable projects which will deliver long term shareholder value. I would like to thank the growing list of shareholders for their continued interest and ongoing support of Helius Energy plc.'

Barclay Forrest

Interim Non-Executive Chairman

Condensed Consolidated Income Statement - Unaudited

For the six months ended 31 March 2009

		Six months	Six months	Year
		ended	ended	ended
		31 March	31 March	30 September
		2009	2008	2008
	Notes	£	£	£
Continuing operations
Revenue		553,760	-	-
Cost of sales		(56,276)	(1,245)	-
Gross profit/(loss)		497,484	(1,245)	-
Other administrative expenses		(825,548)	(894,693)	(1,924,693)
Share-based payment costs		-	(187,445)	(325,960)
Total administrative expenses		(825,548)	(1,082,138)	(2,250,653)
Sale of Helius Alpha Ltd		-	-	33,593,672
Operating (loss)/profit		(328,064)	(1,083,383)	31,343,019
Finance income		346,939	39,883	43,752
Finance expenses		-	(125,842)	(712,987)
Profit/(loss) before tax		18,875	(1,169,342)	30,673,784
Tax		-	-	-
Profit/(loss) for the period		18,875	(1,169,342)	30,673,784
Basic profit/loss per share attributable to  equity holders of the parent company (pence)	2	0.02	(1.66)	42.54
Diluted profit/loss per share attributable to equity holders of the parent company (pence)	2	0.02	(1.66)	38.22

The above condensed consolidated income statement should be read in conjunction with the accompanying notes.

Consolidated Balance Sheet - Unaudited

As at 31 March 2009

	31 March	31 March	30 September
	2009	2008	2008
	£	£	£
Non-current assets
Property, plant and equipment	2,122,305	2,654,374	651,304
Loans and receivables	14,254,000	-	14,254,000
Total non-current assets	16,376,305	2,654,374	14,905,304
Current assets
Trade and other receivables	1,886,925	120,319	2,013,262
Cash and cash equivalents	16,834,035	580,132	23,949,171
Total current assets	18,720,960	700,451	25,962,433
Total assets	35,097,265	3,354,825	40,867,737
Current liabilities
Trade and other payables	(977,941)	(659,737)	(6,533,939)
Total current liabilities	(977,941)	(659,737)	(6,533,939)
Non-current liabilities
Loan	(76,129)	(2,322,848)	(76,489)
Total non-current liabilities	(76,129)	(2,322,848)	(76,489)
Total liabilities	(1,054,070)	(2,982,585)	(6,610,428)
Net assets	34,043,195	372,240	34,257,309
Total capital and reserves attributable to equity holders of the parent company
Issued capital	5,389,490	3,636,379	5,622,479
Merger reserve	1,850,225	1,850,225	1,850,225
Convertible debt reserve	-	82,672	-
Retained earnings/(deficit)	26,803,480	(5,197,036)	26,784,605
Total equity	34,043,195	372,240	34,257,309

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

Condensed Consolidated Cash Flow Statement - Unaudited

For the six months ended 31 March 2009

		Six months	Six months	Year
		ended	ended	ended
		31 March	31 March	30 September
		2009	2008	2008
	Notes	£	£	£
Operating activities
Profit after tax		18,875	(1,169,342)	30,673,784
Depreciation		9,193	6,038	14,372
Finance income		(346,939)	(39,883)	(43,752)
Finance expense		-	125,842	712,987
Share option costs		-	187,445	325,960
Profit on sale of subsidiary		-	-	(33,593,672)
Loss before changes in working capital and provisions		(318,871)	(889,900)	(1,910,321)
Decrease/(increase) in trade and other receivables		126,337	6,327	(491,617)
(Decrease)/increase in trade and other payables		(5,556,358)	144,059	1,215,851
Net cash absorbed in operating activities		(5,748,892)	(739,514)	(1,186,087)
Investing activities
Purchase of property, plant and equipment	3	(1,480,193)	(1,381,736)	(3,385,519)
Cash on sale of subsidiary		-	-	26,745,600
Interest received		346,939	39,883	43,752
Net cash (used in)/from investing activities		(1,133,254)	(1,341,853)	23,403,833
Financing activities
Share issue		-	-	2,009,000
Share buyback	4	(232,990)	(233,563)	(256,463)
Loan stock issued net of fees		-	750,000	826,489
Interest paid and finance expenses		-	(78,750)	(571,413)
Loan repayment		-	-	(2,500,000)
Net cash from financing activities		(232,990)	437,687	(492,387)
Net (decrease)/increase in cash and cash equivalents		(7,115,136)	(1,643,680)	21,725,359
Cash and cash equivalents at the beginning of the period		23,949,171	2,223,812	2,223,812
Cash and cash equivalents at the end of the period		16,834,035	580,132	23,949,171

The above condensed consolidated cash flow statement should be read in conjunction with the accompanying notes.

Condensed Consolidated Statement of Changes in Equity - Unaudited

For the six months ended 31 March 2009

	Convertible	Share	Share	Merger	Retained
	debt reserve	capital	premium	reserve	earnings	Total
2008	£	£	£	£	£	£
Changes in equity
At 1 October 2007	55,713	712,524	3,157,418	1,850,225	(4,215,139)	1,560,741
Profit for the year	-	-	-	-	30,673,784	30,673,784
Total recognised income  and expense for the year	-	-	-	-	30,673,784	30,673,784
Issue of share capital	-	148,898	1,860,102	-	-	2,009,000
Share buyback	-	(7,148)	(249,315)	-	-	(256,463)
Share-based payments	-	-	-	-	325,960	325,960
Issue of convertible debt option, net of issue costs	26,959	-	-	-	-	26,959
Cancellation of convertible debt reserve	(82,672)	-	-	-	-	(82,672)
Balance at 30 September 2008	-	854,274	4,768,205	1,850,225	26,784,605	34,257,309

	Convertible	Share	Share	Merger	Retained
	debt reserve	capital	premium	reserve	earnings	Total
2008	£	£	£	£	£	£
Changes in equity
At 1 October 2007	55,713	712,524	3,157,418	1,850,225	(4,215,139)	1,560,741
Loss for the period	-	-	-	-	(1,169,342)	(1,169,342)
Total recognised income and expense for the year	-	-	-	-	(1,169,342)	(1,169,342)
Issue of share capital	-	250	2,750	-	-	3,000
Share buyback (note 4)	-	(6,526)	(230,037)	-	-	(236,563)
Share-based payments	-	-	-	-	187,445	187,445
Issue of convertible debt option, net of issue costs	26,959	-	-	-	-	26,959
Balance at 31 March 2008	82,672	706,248	2,930,131	1,850,225	(5,197,036)	372,240

	Convertible	Share	Share	Merger	Retained
	debt reserve	capital	premium	reserve	earnings	Total
2009	£	£	£	£	£	£
Changes in equity
At 1 October 2008	-	854,274	4,768,205	1,850,225	26,784,605	34,257,309
Profit for the year	-	-	-	-	18,875	18,875
Total recognised income   and expense for the year	-	-	-	-	18,875	18,875
Issue of share capital	-	-	-	-	-	-
Share buyback	-	(10,130)	(222,859)	-	-	(232,989)
Balance at 31 March 2009	-	844,144	4,545,346	1,850,225	26,803,480	34,043,195

Notes to the Unaudited Condensed Consolidated Financial Statements

ACCOUNTING POLICIES

1. Basis of Preparation

This interim financial report has been prepared using accounting policies that are consistent with those used in the preparation of the full financial statements to 30 September 2008 and those which management expects to apply in the Group's full financial statements to 30 September 2009. 

The comparative financial information for the year ended 30 September 2008 does not constitute the Group's statutory accounts for that year but is derived from those accounts. Statutory accounts for the period ended 30 September 2008 have been delivered to the Registrar of Companies. The auditors have reported on those accounts. Their audit report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985. This interim financial report has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. 

2. Earnings Per Share

The calculation of the loss per share is based on the following data:

	Six months	Six months	Year
	ended	ended	ended
	31 March	31 March	30 September
	2009	2008	2008
	£	£	£
Profit/(loss)
Profit/(loss) used in calculating basic and diluted profit/(loss) per share for the period	18,875	(1,169,342)	30,673,784
Number of shares
Weighted average number of ordinary shares for the purpose of basic profit/(loss) per share	85,076,666	70,601,468	72,102,817
Effect of employees share options	8,134,604	-	8,134,604
Weighted average number of ordinary shares for the purpose of basic profit/(loss) per share	93,211,270	70,601,468	80,237,421

3. Property, plant and equipment

During the six months ended 31 March 2009 the Company has purchased plant and equipment totalling £1.5 million (six months ended 31 March 2008: £1.4 million).

4. Share capital

During the six months ended 31 March 2009 the Company has bought back 1,013,000 shares totalling £233,000 (six months ended 31 March 2008: 652,600 shares totalling £234,000).

5. Events after the Balance Sheet date

On the 23 April Alex Worrall resigned as Non-Executive Chairman.

On the 28 April Michelle Morris resigned as an Executive Director.

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