AEG acquires North Carolina project and losses narrow on lower finance costs

Biomass-focused development and sale company Active Energy Group PLC (LON: AEG) books significant operational and financial progress during the first half of 2019.

Despite the progress, the Company still posted a loss from continuing operations of US 1.833 million, down from $2.268 million, and an operating loss of $1.543 million, narrowing from $1.683 million year-on-year during the first half. This progress was led by the Group’s finance costs being cut almost in half, and H1 revenues jumping from nothing, to $99,830, on-year.

AEG made good progress but spent the first half of 2019 focusing on the acquisition of its Lumberton commercial hub in North Carolina, which will aid in the development of its forest-to-energy supply chain.

Further, the Group sent samples of its CoalSwitch fuel alternative and biomass black pellets to prospective US and EU clients – in forestry, renewable and agricultural sectors – for a testing programme.

AEG comments

Chief Executive Michael Rowan, said,

“We have acquired the Lumberton site and have a defined plan for the commercialisation of CoalSwitch contemporaneously with additional products. Our ambition remains for [AEG] to become a profitable producer of second-generation biomass fuels, focusing on the pellet market. Our production designs are modular, and we are designing efficient operations that are scalable to increase manufacturing volumes to potential market demands. With first production imminent,the company is looking forward to the future with increasing confidence.”

Investor notes

The Company’s share price dropped 20.37% or 0.11p to 0.43p per share 25/09/19 12:32 BST. The Group’s p/e ratio and dividend yield are unavailable, their market cap is £5.47 million.

There have been recent renewable energy updates from; Velocys PLC (LON: VLS), AFC Energy plc (LON: AFC), John Laing Environmental Assets Group Ltd PLC (LON: JLEN), SIMEC Atlantis Energy (LON: SAE), Aquila European Renewables Income Fund (LON: AERI), PowerHouse Energy Group (LON: PHE) and SIMEC Atlantis Energy (LON: SAE).

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.