Helius Energy, the listed renewables specialist, says its biomass plant at Rothes in the Highlands is on track to start commercial operations within the next month.

The company, whose backers include Stagecoach co-founder Ann Gloag, says it hopes to finalise financing of its second project at Avonmouth later in the year.

Helius was reporting a pre-tax loss of £699,000 in the year to March 31, against £644,000 the previous year, while administrative costs were cut by 28% to £652,000, and cash grew from £4.3 million to £4.7m following a placing to raise a net £5.6m of working capital.

It said the Rothes plant, which will convert distillery by-products into energy for 9000 homes, "remains on time with the reliability tests having been finished and performance trials in progress". The plant generated its first electricity in January and was formally accredited under the Renewables Obligation scheme two months ago.

Helius said contracts were being finalised for the construction, fuel supply and electricity offtake for the Avonmouth project. The planning process for the group's third plant at Southampton is also in progress.

Chief executive Dr Adrian Bowles said the generation of revenues from Rothes "demonstrates the ability of the company to develop, finance and deliver its projects". The shares, which listed at 24p three years ago and began the year at 15.75p, were unchanged at 9.5p, valuing the firm at £17.4m.