Helius Energy announces £6m share issue plan

Group business correspondent

Tuesday 19 February 2013

HELIUS Energy, the renewables specialist, has unveiled plans to raise £6.26 million through a share issue, to help fund new biomass projects in Bristol and Southampton.

AIM-listed Helius, which counts Stagecoach co-founder Ann Gloag among its investors, has also earmarked the funds to shore up working capital and expand its portfolio of biomass-fuelled plants across the UK.

The portfolio includes the Rothes-based CoRDe Project, now being commissioned, which will a generate power for 9000 homes from by-products from the whisky-making process.

Speyside distillers Diageo, Pernod Ricard and BenRiach are involved in the scheme. Helius said yesterday it proposed to raise £5.2m via a firm placing alongside an open offer targeting £1.06m, at 12p per ordinary share in both cases. It also confirmed it had agreed to capitalise outstanding debt of about £500,000 under the £1m facility provided last year by backer Angus MacDonald. News of the share issue came as Helius unveiled a pre-tax loss of £10.8m for the 12 months to September 30, 2012. The loss reflects impairments of £9.9m related to delays in the development of a renewable electricity plant in Stallingborough, Lincolnshire, the rights for which Helius sold to renewables group RWE Innogy in 2008. The impairment contributed to an operating loss of £11.6m, though the firm said it had made "significant cost reductions following restructuring in 2011". In its full-year results, which saw revenue rise to £309,713 – up from £148,308 in the year to September 2011 – Helius said it was "aware that RWE had received a revised planning consent for the plant in July 2012", but conceded there remains "no clarity over the timing or cost of construction". It added: "The directors consider that this provides objective evidence of the uncertainty surrounding the receipt of contractual cash flows and as a result have impaired the balance of £8.8m in the financial statements to nil, although the company intends to continue to seek clarity from RWE Innogy on the future plans for the project and will work to secure future value for Helius.". Helius said it was working with several banks, including Lloyds Banking Group and Royal Bank of Scotland, and equity partners to fund a £300m biomass plant at Avonmouth, Bristol port, though the 100MW facility has been held up as the company awaited confirmation from the UK Government on banding support under the Renewables Obligations legislation for 2013 to 2017. The project to develop a 100MW plant in Southampton is at the planning stage. Shares in Helius Energy dipped slightly to 14.5p.

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Helius Energy announces £6m share issue plan

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