Renewable Energy Generation (WIND) expects to exceed its three-year target of investing £100m in renewable projects by end-2012. The wind and bio-power generating specialist is beginning to benefit from that investment programme, too, after operating activities generated a positive net cash flow for the first time. Moreover, and despite uncertainty over government spending on renewable energy, the forced retirement of a fifth of UK power stations by 2015 should boost demand for renewable energy - leaving the shares looking attractive.
In June, a 10MW project in Yorkshire was completed - on time and slightly below budget. While a further six MW of capacity is expected in November, with the completion of a wind farm in County Durham. Work is well advanced on the four MW onshore Orchard End wind farm as well - due for completion by March. At the period-end, the group boasted 51.15MW of capacity from wind projects with a further 10MW under construction and another 36MW nearing construction. Meanwhile, the increased use of waste cooking oil-driven diesel engines, to provide back-up power, helped reduce cash losses at the bio-power unit from £1.01m to £244,000.
Cenkos expects a pre-tax losses of £1.1m for 2013, giving a loss per share of 1.1p (1.3p loss per share in 2012).
| RENEWABLE ENERGY GENERATION (WIND) | ||||
|---|---|---|---|---|
| ORD PRICE: | 49p | MARKET VALUE: | £50.6m | |
| TOUCH: | 48-49p | 12-MONTH HIGH: | 53p | LOW: 44p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | na | |
| NET ASSET VALUE: | 64p | NET DEBT: | 25%* | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 3.50 | -0.90 | -1.00 | 4.0 |
| 2009 | 5.60 | -2.40 | -2.00 | 2.0 |
| 2010 | 6.20 | -3.50 | -2.89 | 2.0 |
| 2011 | 9.82 | -2.98 | -2.56 | 2.0 |
| 2012 | 12.1 | -1.96 | -1.74 | 2.0 |
| % change | +23 | - | - | - |
Ex-div: 5 Dec Payment: 9 Jan *Includes £8.58m of restricted cash | ||||
