REG - SIMEC AtlantisEnergy - Annual Financial Report and Notice of AGM

SIMEC Atlantis EnergyAnnouncement

26/07/2023 07:00

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RNS Number : 1658H  SIMEC Atlantis Energy Limited  26 July 2023

26 July 2023

 

SIMEC Atlantis Energy Limited

("SAE Renewables", "SAE" or the "Company")

 

 

Final results for the year ended 31 December 2022 and notice of the AGM

 

 

SAE announces its final results for the year ended 31 December 2022. A
complete version of the 2022 Annual Report and Accounts ("2022 Annual Report")
can be found here:
http://www.rns-pdf.londonstockexchange.com/rns/1658H_1-2023-7-25.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1658H_1-2023-7-25.pdf)

 

The 2022 Annual Report, a notice of Annual General Meeting ("AGM") and a Proxy
Form, have been posted to shareholders, and copies are available on the
Company's website at www.saerenewables.com (http://www.saerenewables.com)

 

The Company's shares were temporarily suspended from trading on AIM on 3 July
2023, as the Company was not able to publish and post the 2022 Annual Report
by 30 June 2023. As a result of this announcement, restoration to trading of
the Company's shares is expected to take effect at 7:30am this morning.

 

The AGM will be held at the offices of Ashurst LLP, London Fruit & Wool
Exchange, 1 Duval Square, London, E1 6PW at 11:00am on 11 August 2023.

 

Financial Highlights

 

·      Group losses for the year fell to £11.1 million (2021: £74.1
million). The improvement in results was driven by a £5.0 million reduction
in operating expenses coupled with a £2.0 million improvement in the Uskmouth
sustainable energy park valuation compared to the recognition of £53.1
million of non-cash impairment provisions in 2021, and a reduction of £7.4
million in depreciation and amortisation expenses. The Group also recognised a
£2.4 million loss on sale of the Advanced Tidal and Engineering services
division.

 

·      Group revenue fell from £9.3 million in 2021 to £8.5 million in
2022. This reflected the completion of the Japanese consulting contract in
2021 and the impact of the sale of Green Highland Renewables in 2021 offset by
an improvement in the performance of MeyGen and income from the sale of metals
and consumables at the Uskmouth power station.

 

·      Power sales from the MeyGen tidal power project were £3.9
million, a rise of £2.3 million from 2021 reflecting the successful
deployment of two turbines in March and September 2022.

 

·      Total expenses for the year were £11.6 million, down from £16.6
million in 2021.The reduction in expenses reflects the completion of the
restructuring of the Group during 2022 with average headcount falling from 81
to 22 full time employees and lower costs incurred on MeyGen operations.

 

·      Group total equity at 31 December 2022 of £5.7 million (2021:
£16.7 million)

 

·      Attention is drawn to the Report on the Audit of the Financial
Statements: Material Uncertainty Related to Going Concern, paragraph 8 of the
financial statements.

 

 

 

Post Year End Events

 

·      On 28 March 2023 the Atlantis Future Energy PLC debenture holders
voted to accept the deferral of the principal repayment of £4.97 million from
31 March 2023 until 31 March 2024. The coupon increased from 8% to 10% per
annum for the period from 1 April 2023.

 

·      On 23 May 2023 Uskmouth Energy Storage Limited ("UESL") gave
formal notice of their exercise of the option to take a lease of land at the
Group's Uskmouth site for one of the UK's largest battery energy storage
projects (230 MW/460 MWh), subsequent to which, in June 2023, UESL entered
into the 30-year lease, the Group satisfied the charge held over all of the
undertaking property and assets of SIMEC Uskmouth Power Limited, and, on 24
July 2023 the Group received the final instalment of £4.0 million of the
development premium from UESL.

 

·      On 20 June 2023 the Atlantis Ocean Energy PLC debenture holders
voted to accept the deferral of the principal repayment of £4.95 million from
30 June 2023 until 30 June 2024. The coupon increased from 8% to 10% per annum
for the period from 1 July 2023.

 

·      On 11 July 2023, the Group received a demand from the European
Union commission ("EU") for the repayment of historical grant monies totalling
£1.1 million due within two weeks of receipt of the demand letter. This claim
from the EU was first raised in 2021 and this latest letter is part of the
continuing correspondence with them on this matter. The Group continues to be
of the view that there are grounds to dispute any clawback of this grant and
has not paid the requested amount to the EU.

 

 

Duncan Black, Chairman of SAE Renewables, commented:

 

"Following the significant restructuring of the business in the first part of
2022, I am pleased to report that during 2022 and into the current year we
have seen the Group make solid progress on its key projects. Key highlights
have been the execution of the lease agreement and receipt of the final
instalment of the £10 million upfront premium on our first battery energy
storage system project at Uskmouth, strong operating performance at MeyGen
Phase 1A, and the award of a 28 MW Contract for Difference for MeyGen Phase
2."

 

Graham Reid, Chief Executive Officer of SAE Renewables, commented:

"The business has made significant progress since the beginning of 2022, and I
am incredibly proud to have led the committed and dedicated team who delivered
this change, ensuring that we are in a strong position to deliver an exciting
future for our Company and our shareholders.

 

We have worked across the business to set clear objectives and focus on four
strategic priorities:

 

·      Create a streamlined business, which can identify, respond, and
deliver opportunities for the Company.

·      Significantly reduce costs and improve efficiency, aligned around
two business areas: tidal stream and battery energy storage systems.

·      Maximise the return on our assets at Uskmouth and MeyGen.

·      Dispose of non-core businesses.

 

We have made significant gains against these priorities, with the business
streamlined and focused on delivery."

 

For further information, please contact:

 

 SAE Renewables                                           +44 (0)7739 832 446

 Sean Parsons, Director of External Affair

 Strand Hanson Limited (Nominated and Financial Adviser)  +44 (0)20 7409 3494

 Richard Johnson

 Rory Murphy

 David Asquith

 Zeus Capital Limited (Broker)                            +44 (0)20 3829 5000

 Louisa Waddell

 Simon Johnson

 

Notes to Editors

SAE Renewables is a global developer, owner and operator of sustainable energy
projects. The Group holds equity positions in the world's flagship tidal
stream project, MeyGen, and the Uskmouth sustainable energy park that will
initially house battery energy storage projects.

 

https://www.saerenewables.com/ (https://www.saerenewables.com/)

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