| Thu 12 Feb 2009, 15:00 | | IPS - IPSA Group Plc - Date of announcement of audited results and |
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IPS
IPSA
IPS - IPSA Group Plc - Date of announcement of audited results and
operating update
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code: IPSA ISIN: GBOOBOCJ3F01
JSE Share Code: IPS ISIN: GBOOBOCJ3F01
("IPSA" or "the company")
Date of announcement of audited results and operating update
IPSA Group PLC ("IPSA" or "the Company") announces that it proposes to release
on 20 March 2009 its audited results for the year ended 30 September 2008. The
Company is taking this opportunity to provide shareholders with an operating
update.
Possible disposal of gas turbines
Given the current financial climate, negotiations in relation to the sale of the
four Fiat Avio 501D gas turbines previously intended for its Coega project near
Port Elizabeth, South Africa ("the Turbines") since the announcements made on 24
October 2008 and 4 December 2008 have proved more protracted than the Board
initially anticipated. The Company confirms that it remains in discussions
which may lead to the sale of the Turbines and the form of any such disposal is
currently being considered. As before, however, the Company emphasises that any
such sale may or may not proceed to completion.
Newcastle co-generation plant
The Company`s cogeneration plant in Newcastle, KwaZulu Natal, continues to
produce steam for use by its onsite industrial customers, increasing output
during January following commencement of supply to Lanxess CISA Pty Limited.
Long term commercial production of electricity is expected to follow when a
satisfactory Power Purchase Agreement ("PPA") is signed. The facility has been
tendered under Eskom`s Medium Term Power Purchase Programme (the "MTPPP") along
with proposed additional capacity. The MTPPP intends to acquire 3,000 MW of
capacity at prices between ZAR 650 and 1050 MWh for a period of 6 years with a
maximum term under the MTPPP PPA of 8 years. The deadline for award of PPAs
under the tender is currently 31st March 2009. Negotiations to put in place
long term debt finance for the business based on the steam and electricity
contracts are on-going.
Short term financing
IPSA is a development company and like all development companies it relies on
the availability of external financing, principally through the debt markets.
The current lending climate is making the job of the Directors far harder than
previously anticipated, especially since the end of the Company`s last financial
year on 30 September 2008.
In the absence of bank lending the Company has received loans of approximately
GBP1,081,000 to date from Independent Power Corporation PLC ("IPC"), a company
controlled by Peter Earl (Chief Executive Officer of IPSA), of which Jimmy West
(Non-Executive Director of IPSA) is Chairman and Elizabeth Shaw (Chief Operating
Officer of IPSA) is also a director.
The Company is in the process of arranging finance to meet its most recent
interest payment, which was due on 2nd January 2009, of approximately GBP330,000
in respect of its senior secured bank loan. IPC has indicated its provisional
willingness to consider making available a further loan to IPSA for this
purpose. We are very grateful for IPC considering further support at a time
when external credit is otherwise hard to obtain.
The Board expects to provide a more detailed update on the status of the
activities outlined above in the full year results announcement, which is
anticipated to be on 20 March 2009. Shareholders will be updated on any
material developments prior to that date, if appropriate.
For further information contact:
Peter Earl, CEO, IPSA Group PLC: +44 (0)20 7793 5615
Elizabeth Shaw, COO, IPSA Group PLC: +44 (0)20 7793 5615
John Llewellyn-Lloyd / Sunil Sanikop,
Noble & Company Ltd: +44 (0)20 7763 2200
(Nominated Adviser and Joint Broker)
Allan Piper, Tavistock Communications
(UK PR Advisers): +44 (0)20 7920 3150
Dino Theodorou / Melissa Harris, PSG Capital
(Pty) Limited +27 (11) 797 8400
(South African Sponsors)
Sugitha Naidoo, College Hill
(South African PR Advisers) +27 (11) 447 3030
Or visit IPSA`s website: www.ipsagroup.co.uk
Date: 12/02/2009 15:00:08 Produced by the JSE SENS Department.
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