Final results for the year ended 31 December 2022 and notice of the AGM

SIMEC Atlantis Energy Limited

(“SAE Renewables”, “SAE” or the "Company")

 Final results for the year ended 31 December 2022 and notice of the AGM

SAE announces its final results for the year ended 31 December 2022. A complete version of the 2022 Annual Report and Accounts (“2022 Annual Report”) can be found here: http://saerenewables.com/investor-relations/company-documents/.

The 2022 Annual Report, a notice of Annual General Meeting (“AGM”) and a Proxy Form, have been posted to shareholders, and copies are available on the Company’s website at www.saerenewables.com

The Company’s shares were temporarily suspended from trading on AIM on 3 July 2023, as the Company was not able to publish and post the 2022 Annual Report by 30 June 2023. As a result of this announcement, restoration to trading of the Company’s shares is expected to take effect at 7:30am this morning.

The AGM will be held at the offices of Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square, London, E1 6PW at 11:00am on 11 August 2023.

Financial Highlights

  • Group losses for the year fell to £11.1 million (2021: £74.1 million). The improvement in results was driven by a £5.0 million reduction in operating expenses coupled with a £2.0 million improvement in the Uskmouth sustainable energy park valuation compared to the recognition of £53.1 million of non-cash impairment provisions in 2021, and a reduction of £7.4 million in depreciation and amortisation expenses. The Group also recognised a £2.4 million loss on sale of the Advanced Tidal and Engineering services division.
  • Group revenue fell from £9.3 million in 2021 to £8.5 million in 2022. This reflected the completion of the Japanese consulting contract in 2021 and the impact of the sale of Green Highland Renewables in 2021 offset by an improvement in the performance of MeyGen and income from the sale of metals and consumables at the Uskmouth power station.
  • Power sales from the MeyGen tidal power project were £3.9 million, a rise of £2.3 million from 2021 reflecting the successful deployment of two turbines in March and September 2022.
  • Total expenses for the year were £11.6 million, down from £16.6 million in 2021.The reduction in expenses reflects the completion of the restructuring of the Group during 2022 with average headcount falling from 81 to 22 full time employees and lower costs incurred on MeyGen operations.
  • Group total equity at 31 December 2022 of £5.7 million (2021: £16.7 million)
  • Attention is drawn to the Report on the Audit of the Financial Statements: Material Uncertainty Related to Going Concern, paragraph 8 of the financial statements.

 Post Year End Events

 

  • On 28 March 2023 the Atlantis Future Energy PLC debenture holders voted to accept the deferral of the principal repayment of £4.97 million from 31 March 2023 until 31 March 2024. The coupon increased from 8% to 10% per annum for the period from 1 April 2023.
  • On 23 May 2023 Uskmouth Energy Storage Limited (“UESL”) gave formal notice of their exercise of the option to take a lease of land at the Group’s Uskmouth site for one of the UK’s largest battery energy storage projects (230 MW/460 MWh), subsequent to which, in June 2023, UESL entered into the 30-year lease, the Group satisfied the charge held over all of the undertaking property and assets of SIMEC Uskmouth Power Limited, and, on 24 July 2023 the Group received the final instalment of £4.0 million of the development premium from UESL.
  • On 20 June 2023 the Atlantis Ocean Energy PLC debenture holders voted to accept the deferral of the principal repayment of £4.95 million from 30 June 2023 until 30 June 2024. The coupon increased from 8% to 10% per annum for the period from 1 July 2023.
  • On 11 July 2023, the Group received a demand from the European Union commission (“EU”) for the repayment of historical grant monies totalling £1.1 million due within two weeks of receipt of the demand letter. This claim from the EU was first raised in 2021 and this latest letter is part of the continuing correspondence with them on this matter. The Group continues to be of the view that there are grounds to dispute any clawback of this grant and has not paid the requested amount to the EU.

Duncan Black, Chairman of SAE Renewables, commented:

“Following the significant restructuring of the business in the first part of 2022, I am pleased to report that during 2022 and into the current year we have seen the Group make solid progress on its key projects. Key highlights have been the execution of the lease agreement and receipt of the final instalment of the £10 million upfront premium on our first battery energy storage system project at Uskmouth, strong operating performance at MeyGen Phase 1A, and the award of a 28 MW Contract for Difference for MeyGen Phase 2.” 

Graham Reid, Chief Executive Officer of SAE Renewables, commented:

“The business has made significant progress since the beginning of 2022, and I am incredibly proud to have led the committed and dedicated team who delivered this change, ensuring that we are in a strong position to deliver an exciting future for our Company and our shareholders.

We have worked across the business to set clear objectives and focus on four strategic priorities:

  • Create a streamlined business, which can identify, respond, and deliver opportunities for the Company.
  • Significantly reduce costs and improve efficiency, aligned around two business areas: tidal stream and battery energy storage systems.
  • Maximise the return on our assets at Uskmouth and MeyGen.
  • Dispose of non-core businesses.

We have made significant gains against these priorities, with the business streamlined and focused on delivery.”

For further information, please contact:

SAE Renewables
Sean Parsons, Director of External Affairs
+44 (0)7739 832 446
Strand Hanson Limited
(Nominated and Financial Adviser)
Richard Johnson
Rory Murphy
David Asquith
+44 (0)20 7409 3494
Zeus Capital Limited (Broker)
Louisa Waddell
Simon Johnson
+44 (0)20 3829 5000

Notes to Editors

SAE Renewables is a global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development.