REG - Parkmead Group (The) - Wind Power Acquisition

ParkmeadAnnouncement

01/02/2022 07:00

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RNS Number : 2275A  Parkmead Group (The) PLC  01 February 2022

1 February 2022

 

The Parkmead Group plc

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

 

Parkmead acquires Wind Power company as it continues renewable energy drive

 

Parkmead, the independent energy group, is pleased to announce that it has
acquired the entire issued share capital of Kempstone Hill Wind Energy Limited
("Kempstone Hill"), a company owning a 1.5MW onshore wind farm in Scotland
(the "Acquisition").

 

The total consideration comprises £3.29 million in cash. In addition,
Parkmead will assume a project loan of approximately £990k.

 

Highlights

 

·    Kempstone Hill owns a 1.5MW onshore wind farm in Scotland, which
provides power for up to 1,000 homes

·    The wind farm has an attractive inflation-linked, Feed-in Tariff for
the life of the project through until 2036

·    Electricity is sold through a power purchase agreement which provides
exposure to rising wholesale electricity prices

·    This acquisition significantly increases Parkmead's presence in
renewable energy and electricity markets

·    For the financial year to 30 September 2021, Kempstone Hill generated
revenue of £0.38 million and an adjusted EBITDA of £0.23 million

·    As 1 October 2021, Kempstone Hill held approximately £300,000 in
cash

Strategic Rationale

 

Parkmead's focus has been to build a robust and balanced European energy
business, which the Board has been actively looking to further enhance in
cleaner and renewable energies. The acquisition of this wind farm sits well
within the Board's strategy and increases the Group's presence in this rapidly
growing sector. Furthermore, the Board believes that, as an established wind
farm already connected to the grid, the Group will benefit from Kempstone
Hill's established relationships and expertise as it looks to advance the
opportunities within the Group's existing renewable energy developments.

 

The Acquisition is immediately revenue and cash flow enhancing. Cost synergies
have been identified and Parkmead has also identified potential upside
opportunities.

Details of the Acquisition

 

The total consideration comprises £3.29 million in cash, which includes both
the consideration for the issued share capital of Kempstone Hill and the
repayment of an existing director's loan. In addition, Parkmead will assume a
project loan of approximately £990k. The economic date of the transaction is
1 October 2021. As at 1 October 2021, Kempstone Hill held £0.3 million in
cash and had gross assets of £1.76 million.

 

 

Tom Cross, Executive Chairman, commented:

 

"This important acquisition continues our clear and focused strategy to build
a balanced energy group.

 

Kempstone Hill provides another revenue-generating asset to Parkmead, which
has a long-life and a very steady stream of cash flow. This operational wind
farm is complementary to our earlier stage, high-upside renewable energy
projects.

 

The energy industry is experiencing rapid change and the Parkmead team is
growing our Company through these challenges and adding exciting opportunities
in renewable energy. We will continue to build a portfolio of high-quality
energy projects through acquisitions, organic growth and the active management
of our assets across all energy sectors."

 

Enquiries:

 

 The Parkmead Group plc                           +44 (0) 1224 622200
 Tom Cross (Executive Chairman)
 Ryan Stroulger (Chief Financial Officer)

 finnCap Ltd  (NOMAD and Broker to Parkmead)      +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Andrew Burdis - ECM

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

About Parkmead

 

The Parkmead Group is an independent, UK and Netherlands focused energy
business. Its shares are listed on the AIM market of the London Stock Exchange
(AIM: PMG). The Group currently produces natural gas from a portfolio of four
fields across the Netherlands and holds significant additional oil and gas
interests. Parkmead is also developing renewable energy opportunities within
its portfolio.

 

For further information please refer to Parkmead's website at
www.parkmeadgroup.com

 

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