Infinis powers to strong showing with debut results – The Herald

Scott Wright
>>Group business correspondent
>>
>>INFINIS, the renewable energy group chaired by former SSE boss Ian
>>Marchant, has seen its share price rise by nearly four per cent after
>>delivering its first results since joining the stock market in November.
>>
>>The company cited the strong performance of its wind farms and landfill gas
>>operations, as well as lower overheads, as results came in ahead of
>>expectations.
>>
>>Turnover rose by 7.3 per cent to £242.5 million, and there was an 18.3 per
>>cent rise in underlying EBITDA (earnings before interest, tax, depreciation
>>and amortisation) to £148.4 million, before exceptional items.
>>
>>But pe-tax earnings slid to £27.8 million for the year ended March 31, down
>>from £2.9 million.
>>
>>The accounts show the company narrowed net debt by 1.5 per cent to £555.6
>>million, and booked exceptional items of £39.4 million due to costs
>>relating to the flotation and refinancing. Costs relating to the initial
>>public offering came in at £37.1 million, which included fees of £16
>>million for external advisors, and bonuses for directors and staff.
>>
>>Infinis, which aims to boost offshore wind capacity to between 130
>>mega-watts (MW) and 150 MW by 2017, consolidated its previous facilities
>>for 10 separate wind farms totalling £255 million into a single £296
>>million syndicated loan.
>>
>>Mr Marchant said the new facility has “significantly reduced complexity,
>>increased flexibility and, most importantly, reduced interest costs”.
>>
>>Mr Marchant, who pocketed £655,000 in his final three months at SSE last
>>year, praised staff at Infinis for delivering record results in the year it
>>went public.
>>
>>He said: “The flotation was achieved despite regulatory pressures and a
>>difficult political backdrop.
>>
>>”The political landscape around UK energy policy continues to be
>>challenging but I believe that by focusing on affordable, reliable and
>>clean electricity production, Infinis is well positioned for the coming
>>years.”
>>
>>Meanwhile, the company said the forthcoming referendum on Scottish
>>independence resulted in no change to its risk profile.
>>
>>It noted the level of support for renewables in the event of a Yes vote was
>>”unclear”, and warned revenues from wind farms could fall given its
>>exposure to the Scottish market.
>>
>>But it pointed out the Scottish Government has “indicated its strong
>>support for renewable energy”, and added: “‘RUK (remainder of UK) would
>>still have obligations to meet its 2020 EU targets for renewable energy
>>with Scotland being an obvious source given its strong wind resource.”
>>
>>Infinis is proposing a final dividend of 6.63p per share.
>>
>>Shares in Infinis, which floated at £2.60 per share, closed up 9p at 237.5p.
>>