Renewable Energy Holdings
REH:AIM
REH Website

Current Projects;

Bryn Posteg Landfill Site
Currently producing 2MW, output being sold to EDF. A recent re-negotiation of the PPA has seen an increase from 52.10 per Mwh to 104.61 per Mwh.
The site is due to be expanded in 2009 by tapping into new cells which are currently being filled. This has the potential to more than double output to between 5 and 6MW.

Kesfeld and Kirf Windfarms
These 2 sites currently produce 40.5MW. Expansion of 6.9MW at Kesfeld will come online during 2008, bringing the combined output of the sites to 47.4MW. The PPA in place is with RWE at 83.5 per Mwh / 20 years. These sites have an estimated value of 34million.

Polish and Welsh Windfarms are under construction/negotiation.

CETO Revolutionary Wave Energy Device
Whilst still under development the company has established two strategic partnerships, one with EDF for the Northern Hemisphere and one with Carnegie for the Southern Hemisphere. Carnegie has agreed to purchase the rights to use the CETO technology for 4.75million, 750000 of this was recognised in the preliminary results, plus a licence fee of 2% of total investment for each project and an Annual Royalty of 2.5% of net earnings. EDF has invested 3million in REH as a company and has entered into a collaboration agreement with the company which gives them rights to JV the commercial roll-out of CETO in the Northern Hemisphere. Each JV will pay a 3% licence fee to the company. These deals mean that REH will have very little capital expenditure on CETO since its development is all but completed yet still receive substantial recurring revenues as Carnegie and EDF begin to develop CETO projects around the world. CETO still however remains the 100% owned intellectual property of REH. A full scale trial of CETO III is scheduled to be completed by the end of 2009, followed by a commercial roll-out across both hemispheres.

Key Dates;
1st September 2008 Half Year Results

Superb Preliminary Results;

Cash Pile of 7 million. Based on exisiting cash burn of 2.5million per year (1.5million loss due to Contribution from Carnegie) REH will have enough cash to see it through to 2010.
REH has also managed to secure a 91million pound loan from Standard Chartered which I have to emphasise is no small thing in the current credit environment which to me suggests the due diligence performed by Standard must have revealed enough confidence in REHs future business to offer them a loan facility worth 3 times REHs market cap.
27million of this loan has already been drawn upon to finance the expansion of REHs wind farms, notably Kesfeld and Kirf.
REH are targeting 150MW of wind capacity by 2010, spreading project risk by locating wind farms in Germany, Poland and Wales. Negotiations to purchase a 69MW wind farm in Wales are at an advanced stage, it is likely this will be funded by further drawing upon the loan facility provided by Standard Chartered. News of the completion of this deal and more detailed information about the load factors, availability and cost of the project will be important and could help push the shares higher. Construction has also begun at the groups Polish windfarm, more details will be released soon.
The board does seem to play down the value of its wind assets and concentrate its reporting on it Patented CETO Wave Technology.
Wayne Keast has been appointed non-executive director. Former Econergy Director, he helped to bring Econergy forwards in similar fields, left after Consensus made a bid for Econergy. Appointment here could be a pre-curser to a bid from The Consensus group, owned by the Tchenguiz family.

It appears to me from the general CFO and CEO comments that the hard work has been over the last 3 years and that shareholders can now look forwards with greater earnings visibility and potential for greater profits as exisiting wind projects contribute revenue and new projects come online which coupled with CETOs revenue earning potential makes for a great investment.

Renewable Energy Holdings plc (AIM: REH), the AIM quoted developer and operator of proven and innovative renewable energy technologies, is pleased to announce its preliminary results for the twelve months ended 31 December 2008.


Financial Highlights

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Revenue increased by 38% to 5.31 million (2007 restated: 3.83 million)
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Loss before tax reduced by 7% to 1.99 million (2007 restated: loss 2.13 million), (Following new accounting policy)
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CETO development payments of 2.79 million (2007: 0.75 million) made by Carnegie Corporation
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Group ended the year with cash balances of 6.5 million (2007: 7.1 million), following German project debt repayment of 2.6m during the year
*

New accounting treatment of CETO development payments from Carnegie Corporation, as announced on 27 February 2009, mean reported revenues in 2008 will be lower by the amount of the CETO license payments from Carnegie during the period of 2.79 million. This technical change in treatment advised does not however impact the funds invested in CETO's development under the CETO licensing arrangements with Carnegie and therefore the progress of CETO towards commercial realisation.


Operational Highlights

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40.5MW installed wind power capacity in Germany at two sites
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Full year production from the 8MW project at Kirf, Germany
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Landfill gas in Wales business increased turnover by 83% to 0.51 million (2007: 0.28 million) from an increase in volume of electricity and a power purchase agreement
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A pipeline of commercial sites for CETO in the Northern Hemisphere have been identified by REH and its partner EDF Energies Nouvelles SA
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100 MW of new projects in Poland and Wales making encouraging progress
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Management team strengthened with appointment of Paris Mouratoglou, Chairman of EDF Energies Nouvelles SA as a NED and recruitment of a Business Development Director, Senior Project Engineer and a Science & Intellectual Property Manager

We'll have 45.2MW online come the end of Q2 this year too which is a reasonable level of capacity given REH's market cap.

They've said that the Polish W/F will be "Fully Permitted" in H1 2010, and the Welsh W/F "Fully Permitted" in H2 2011 (They've actually said a half earlier in each case but allowing for the usual delays etc you can have with WindFarm construction) which is "Fully Permitted" means online then by 2012 we should have a company with just under 150MW of Wind generating capacity, a sizeable revenue generator especially given that these farms are going to generate (According to the results) 5x as many MWH as current capacity. Which if we take the same revenue figures today equates to 5x circa 5 million which = 25 Million per annum in wind revenue. Ex landfill gas and CETO!

Under the heading Current Year in the results I think the wording suggests REH is looking, maybe not concretely, into buying up some wind assets or half-developed projects that have run out of financing on the cheap as a result of the credit crunch, given REH's relatively strong position and SCB financing facility.

We've got net assets of 29 Million which also looks strong against the current market cap.

IMO REH should weather this recession and emerge in 2 or 3 years as a very profitable and valuable Renewable energy player.

8.35p to buy currently, seems to be a overhang as that is below mid, good
price to buy in or top up as i have done for small as not sure it's the bottom
but think the shares are worth double figures after the recent disposal news.

8.18p to buy, i wont buy more, i have too many already but the next offer
on L2 is 9.5p, this overhang represents a great chance to get cheap stock.

Confident that purchases at that price will make 20% when the overhang
clears, still a chance it could get lower unless Singer is happy to sit at
8.25p offer and sell down their line of stock.

Wow singer is really forcing this down now, now a full 1.75p cheaper
than the next mm at 7.75p offer (9.5p next).

They have a real distressed seller it would seem, on the disposal news
they could not buy this quick enough at 10p+.

I glad i didnt average down but my purchase price of 8.95p the other
day is looking grim on paper but it wont be a problem when they clear
singers seller, will wait for signs of a clearing seller then i will probably
get the average down a little.

Looking much better today, only 25k max online and the reason for that has
just showed with a 500k buy at 9p wiping out a massive chunk of the overhang.

Lowest to buy last week was 7.6p, will be a nice profit for those who took it
as it looks to be heading back to double figures.

lol.

Funny was it mitzy.

Check out moneyam trades, Singer last week picked up 1,661,559 block of
shares for 7p and have sold them all on, thats why they could afford to keep
dropping the price down when loads of buys were coming in last week below
8p but that is now clear and the price should get back over double figures
again.

Down with this sort of thing.

You watching all those large blocks changing hands then mitzy !

I make that over 15% !

Ive been / still using advfn thread as its a tad more active. Glad to see we have some holders here!

I've got REH's NAV at 22,395,902 on 06.09.10

Quite exact because it takes ER of AUD into account.

Looking for financing of Poland otherwise we're dead in the water here and the board will keep chomping down their excessive pay packages and eroding shareholder value. If we can get Poland financed at attractive terms during Q1 2011 we'll be looking good, any later and we'll be in trouble.

Carnegie stake is the only reason I'm in here, but I am in for a lot, around 0.5% of REH. Should be updating my research note on REH on my website soon: GDPC Research
Current file was prior to the German wind farm sale, I was only circa 300'000 too negative on their valuation at sale!

Best of luck to all LT holders