Helius Energy, the renewable energy firm behind the CoRDe biomass plant in Moray, has recorded a 29% drop in shares as it announced it was seeking additional funding to meet its working capital requirements.
The announcement came as part of the company’s interim results statement for the six months to March 31.
The company reported a decrease in its pre-tax losses on last year, down to £674,000, despite a 25% drop in revenues to £110,000 and increased administrative costs.
A £65,833 payment from Helius’ share of profits from the 7.2MW Rothes biomass plant offset the negative trend by lowering its cost of sales by 9%.
The £60million Scottish plant, opened in July last year, has to date generated 32,158MWh of electricity and received 67,221 tonnes of draff, and 208,385 tonnes of pot ale for processing, Helius said in a statement.
But it also added it is yet to secure full financing for its Avonmouth 100MW biomass energy project in Bristol, which led to the 29% drop of the AIM-listed firm’s shares to 6.00 pence.
It warned earlier this year that if it failed to secure full funding by the end of June, it could struggle to pay its liabilities in the normal course of business.
Currently, the company holds a cash balance of £1.1million, down from £4.7million a year earlier.
“The Rothes project is in commercial operation and generating profits, demonstrating our ability to develop and operate projects,” said Adrian Bowles, chief executive of Helius Energy.
“We continue to make progress with the financing of the Avonmouth project.
“We still hope to reach financial close but, as disclosed in the full-year results announcement in respect of the financial year ended September 30, 2013, the delay means that the company needs to secure further corporate funding in the near future to meet its working capital requirements.”
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