Renewable Energy Generation (WIND) continues to benefit from its partnership with BlackRock. The key event of last year was the sale of its 12-megawatt (MW) Goonhilly wind farm to the US fund manager. That crystalised a £9.5m gain, boosting the bottom line, but at the expense of the group's capacity, which fell from 51.15MW to 34.7MW. That explains the decline in revenues and operating losses of £4.5m - more than triple last year's figure.
The company sold two more projects to BlackRock this month, the cash from which will be ploughed back into the development pipeline. The group has planning permission for wind projects worth 25MW of capacity, which are being prepared for construction.
Political opposition against wind turbines is intensifying, particularly in England. At the same time, the national grid operator reckons 13GW of onshore wind capacity is required for the UK to meet its 2020 targets on renewable energy generation - of which 5GW remains to be built. In response, chief executive Andrew Whalley is diversifying away from wind by building a 18MW bio-fuelled power plant. That will help expand the capacity of the bio-power division to 100MW by 2017.
Broker Cenkos expects pre-tax profits of £2.3m in the current financial year, giving EPS of 2.2p.
| RENEWABLE ENERGY GENERATION (WIND) | ||||
|---|---|---|---|---|
| ORD PRICE: | 67p | MARKET VALUE: | 69m | |
| TOUCH: | 67-68p | 12-MONTH HIGH: | 80p | LOW: 64p |
| DIVIDEND YIELD: | 3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 71p | NET DEBT: | 16% | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 6.2 | -3.5 | -2.9 | 2.0 |
| 2011 | 9.8 | -3.0 | -2.6 | 2.0 |
| 2012 | 12.1 | -2.0 | -1.7 | 2.0 |
| 2013 | 13.4 | 5.8 | 6.3 | 2.0 |
| 2014 | 11.6 | 2.9 | 3.7 | 2.2 |
| % change | -13 | -51 | -41 | +10 |
Ex-div: 11 Dec Payment: 06 Jan | ||||
