| Wed 2 May 2012, 9:00 | | IPS - IPSA Group Plc - Trading Update |
|
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
IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power
generation capacity in Southern Africa, announces a trading update on the
sale process of its two remaining turbines and on operations at its Newcastle
plant.
Lezayre Holdings Limited ("Lezayre") has re-iterated its intention to
complete the purchase of the two remaining Siemens Westinghouse 701 DU gas
turbines ("the Turbines") by 30th June 2012, by which date it is expected
that the environmental evaluation will be completed on the project for which
the Turbines are intended to be employed.
Newcastle Cogeneration Pty. Limited ("Newcogen"), IPSA`s wholly-owned
operation in Newcastle, KwaZulu Natal, has traded consistently over the last
12 months, selling approximately 46,000 MWh of electricity and 57,000 tonnes
of steam. Although output is still below full capacity, the plant is cash
generative. As indicated in the Company`s interim results announcement, the
group is developing a number of enhancement programmes to add additional
capacity by mid-2012 in order to improve results by maximizing revenues from
the existing MTPPP contract.
The Company confirms that its working capital position remains extremely
tight. Further to the announcement on 2 February 2012, the Company`s
principal creditors, Standard Bank plc and TurboCare SpA, continue to
withhold their approval of a formal extension of the turbine sale and
purchase contract with Lezayre. During the financial year ended 31 March
2012 the Company repaid some USD37m to Standard Bank PLC and to TurboCare
SpA, being the sales proceeds from the sale of two Turbines plus the USD2m
deposit monies received from Lezayre. However, without the continued support
of all its creditors, additional working capital would be required by the
Company in order to settle overdue indebtedness prior to completion of the
sale of the remaining two Turbines.
For further information contact:
Phil Metcalf, CEO, IPSA Group PLC +44 (0)20 7793 5600
John Llewellyn-Lloyd / Harry Stockdale, Execution Noble & Company Ltd +44
(0)20 7456 9191
Riaan van Heerden,PSG Capital (Pty) Ltd +27 (0)21 887 9602
Harry Ansell / James Joyce W H Ireland Ltd +44 (0)20 7220 1666
London
2 May 2012
Date: 02/05/2012 09:00:06 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
