Plutus PowerGen's losses narrow as revenues rise

AIM listed energy investment company Plutus PowerGen’s full year losses narrowed as revenues increased.

For the year ended 30 April, the first full year since the reverse takeover of Plutus Energy, revenue increased to £887,500 from £87,500 in 2015. This was due to nine management contracts won from Rockpool Investments, which is expected to generate £1.35m a year.

Administrative expenses increased by 18% to about £1.26m.

Operating losses reduced significantly by 70% to £380,088 while losses before tax dropped to £407,776 from £1.3m the previous year.

Basic and diluted loss per share from continuing operations was 0.07p, down from 0.32p in 2015.

To fund new sites, the company is in the process of launching a bond to be listed on the ICAP Securities and Derivatives Exchange (ISDX) to raise up to £4m. The proceeds from the bond will help the company building its next three to four 20MW FlexGen or SolarFlex sites, which the company will own an 80% stake.

Chief executive Phil Stephens, said: “We will build upon the foundations we have laid to bring capacity on-stream, and see a great opportunity in exploring the potential for energy storage.

“The on-going energy market reviews present a couple of icebergs for us to steer around, but we believe that the gaps between these icebergs are sufficiently large, and are confident that our steady hand on the tiller will steer us through, given the compelling and growing need for reliable, flexible stand-by generation.”

Shares in Plutus PowerGen were up 12.77% to 1.32% at 0748 BST.