Active Energy shares surge on solid interim results

International timber processing, forestry management and renewable energy business Active Energy announced its interim results for the six months to 30 June on Monday, with an 11% increase in revenue to $13.41m and a 50% increase in gross profit to $1.84m.

The AIM-traded firm said this was a result of improved purchasing conditions and stable prices, with work underway to increase output capacity by 33% to approximately 4,000 tonnes per day by Q4 2016.

Looking ahead, the company’s full year revenue was anticipated to reflect a “significant” year-on-year increase as its growth trajectory continued.

It had a strengthened balance sheet post period end, with a placing raising £2.05m before expenses to fund expansion of the core AEG WoodFibre operations.

“We have over the past three years succeeded in establishing a multi-divisional business with huge potential,” said Active Energy CEO Richard Spinks.

“We have invested heavily in our WoodFibre business which is now yielding positive results, allowing us to further develop our other business opportunities at TimberLands and CoalSwitch, highlighted by the significant improvement in our financial performance, and continuing investment into these new business areas.”

Spinks said with additional capital raised in August, the company was executing its investment plan which will see a further increase in capacity, output and revenue for the full year 2016.

“This remains primarily from the WoodFibre division in Ukraine and will be augmented when AEG CoalSwitch and TimberLands begin to operate.

“Most importantly, we have now established teams of people, with proven track records to expand the woodchip operations, progress our Canadian and European timber operations and commercialise our proven coal replacement product, which we believe could transform the carbon based energy market,” he explained.

“With a number of significant milestones attained and next steps identified, notably in the near-term, I believe these are truly exciting times for the company as we look to rapidly accelerate our growth and build shareholder value, across our synergistic operating divisions.”

At 1013 BST, shares in Active Energy Group were up 9.09% at 3p.