REG - OPG Power Ventures - Trading update and Update on Annual Accounts

OPG Power VenturesAnnouncement

22/09/2023 10:15

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RNS Number : 3812N  OPG Power Ventures plc  22 September 2023

22 September 2023

 

OPG Power Ventures plc

("OPG", the "Group" or the "Company")

 

Trading update, Update on Annual Accounts and Suspension of shares from
trading on AIM

 

OPG Power Ventures plc (AIM: OPG), provides the following trading update and
an update in relation to its audited annual report and financial statements
for the year ended 31 March 2023 ("FY23 Accounts").

 

Macro Outlook

 

In the current financial year, the macro environment has improved with
international coal prices having softened significantly and the electricity
demand trend remaining healthy due to an improvement in economic activity. The
Government of India, in order to reduce dependence on imported coal, has
opened the mining sector to private players and traders. In the long term,
this will lead to an influx of cheaper Indian coal in the domestic market.

 

During the current fiscal year, cumulative electricity demand has increased by
nearly 9 per cent y-o-y. Due to this consistent growth in power demand and in
the absence of any major increase in capacity additions, India is still
dependent upon coal-based generation. The lower-than-expected addition in FY24
from the renewables sector will lead to an increase in Plant Load Factors of
thermal power plants in the country.

 

Trading Update

 

As announced in the trading update on 20 June 2023, the Company reported total
generation for FY23 of 1.5 billion units and repayment of Non-Convertible
Debentures totalling £19.7 Million (₹2 Billion) in May 2023. The Company's
FY23 financial results are expected to be in line with market expectations.

 

With a continual downward trend in coal prices, the industry and the Company
are seeing significant growth and OPG expects materially increased generation
and revenue in FY24 with plant load factors expected to increase to
approximately 58%.  In addition to the Long Term Power Purchase Agreement
with Tamil Nadu State utility for 74 MW, the Company secured a contract in
September 2023 with another State utility up to 280 MW at an attractive tariff
which is valid for five months during H2 FY24.

 

OPG is pleased to announce that as at 31 August 2023 the Group had cash and
cash equivalents of £42.4 million and gross debt of £23.8 million. Due to
realisation of receivables, net cash as at 31 August 2023 was £18.6 million,
compared with net debt of £9.3 million as at 31 March 2023.

 

The numbers mentioned in this section are unaudited.

 

Update on FY23 Accounts

 

The Company is required under AIM Rule 19, to publish its FY23 Accounts, by 30
September 2023. There has been a delay in the financial reporting close
process for the FY23 Accounts and as a result the audit has been delayed.
 The annual audit for FY23 is still ongoing and the Company currently expects
the audit to be completed and the FY23 Accounts to be published by 31 October
2023.

 

As a result of the delay to the audit process, the Company's ordinary shares
will be suspended from trading on AIM with effect from 7.30 a.m. on Monday 2
October 2023, pending publication of the FY23 Accounts.  The temporary
suspension from trading on AIM will be lifted once the FY23 Accounts have been
published.

 

Notwithstanding the suspension of trading in the Company's ordinary shares,
with effect from 2 October 2023, the Company will continue to make
announcements as and when there are any developments that require announcement
in accordance with its obligations under the AIM Rules and other applicable
regulation.

 

Change of Name of Nominated Adviser and Broker

 

The Company also announces that its nominated adviser and broker has changed
its name to Cavendish Securities plc (formerly Cenkos Securities plc)
following completion of its own corporate merger.

 

Certain information contained in this announcement would have been deemed
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time, until
the release of this announcement.

 

For further information, please visit www.opgpower.com or contact:

 

 OPG Power Ventures PLC                                     Via Tavistock below
 Ajit Pratap Singh

 Cavendish Securities Plc (Nominated Adviser & Broker)      +44 (0) 20 7220 0500
 Stephen Keys/Katy Birkin

 Tavistock (Financial PR)                                   +44 (0) 20 7920 3150
 Simon Hudson / Nick Elwes

 

 

 

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