| Wed 30 Sep 2009, 8:00 | | IPS - IPSA Group Plc - Trading Update |
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IPS
IPSA
IPS - IPSA Group Plc - Trading Update
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share: Code IPSA & ISIN GB00BOCJ3F01
JSE Share: Code IPS & ISIN GB00BOCJ3F01
("IPSA" or "the company")
TRADING UPDATE
The Company today releases the following update to shareholders before its year
end at close of business today:
1. Newcastle combined heat and power plant
Following our announcement on 23rd July 2009 advising shareholders of the delay
in concluding a power purchase agreement with Eskom in accordance with its
Medium Term Power Purchasing Programme ("MTPPP") tender, the Company has
initiated discussions with a number of private sector parties regarding power
offtake arrangements that would allow the Newcastle plant to restart
operations. South African news reports also indicate increasing concern about
possible power cuts towards the end of the current year and early next.
However, no firm agreement for the sale of power has yet been concluded.
2. Siemens Westinghouse 501 DU turbines
Further to the 23rd July 2009 announcement, the Company is continuing in its
efforts to dispose of the turbines. Independent Power Corporation PLC ("IPC"), a
company controlled by Peter Earl, chief executive of IPSA and IPC, is in
discussions on a number of proposed Government sponsored projects where, subject
to financing being available, the turbines could be deployed in a relatively
short time frame. Other fast track projects are also being considered.
Shareholders will be informed of any significant developments.
3. Standard Bank loan
As previously communicated to shareholders, the Company`s loan from Standard
Bank ("The Bank") is set to mature on 2 October 2009, at which date the total
indebtedness to the Bank will be approximately ?15.8 million. As the Bank is
aware, the Company will be unable to make this payment before the sale of one or
more of the turbines referred to above. The Bank has reserved its position but
has taken no action to enforce security and has indicated that for the moment it
supports the actions management is taking to resolve the situation. The Company
is grateful for the Bank`s continuing support and is taking all steps within its
power to realise sufficient assets to ensure repayment in full as soon as
possible.
In addition, the loan balance due to IPC is approximately ?800,000. This
comprises loans which are payable on demand and are on commercial terms.
For further information contact:
Peter Earl, CEO, IPSA Group PLC: +44 (0)20 7793 5615
Elizabeth Shaw, COO, IPSA Group +44 (0)20 7793 5615
PLC:
John Llewellyn-Lloyd / Sunil +44 (0)20 7763 2200
Sanikop, Noble & Company Ltd:
Dino Theodorou, PSG Capital (Pty.) +27 11 797 8400
Limited:
Sugitha Naidoo, College Hill (South +27 11 447 3030
African PR Advisers):
or visit IPSA`s website www.ipsagroup.co.uk
30 September 2009
Date: 30/09/2009 08:00:03 Produced by the JSE SENS Department.
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