The group's subsidiary Novera Energy Europe also began generating positive cash flow in July and became profitable in the current half laying the foundation for the Novera Group as a whole to achieve positive cash flow by year end.
However, the group's first half results were affected by lower than expected production at the company's Arpley facility, the delays in completing the new financing arrangements with Fortis Bank and adverse exchange rates.
The end result was that Novera's net profit after tax for the first half of 2003 was a loss of $2.6m. Combined with an expected profit in the second half of $1.1m the company is looking at a full year loss of $1.5m.
On the positive side the company announced the completion of almost half of its planned 2003 expansion program in the UK, although delays in securing the critical financing package meant the first stage 8MW of capacity made no real contribution to first half revenue.
"The first half saw the achievement of several critical milestones in Novera Energy's continuing growth strategy, including the financial partnership with Fortis Bank and the addition of the first 8MW of our 18MW expansion program," said Novera Energy chairman, David Scaysbrook.
The company also today announced the sale of its interest in the Yabmana wind farm development site in South Australia. Yabmana has been sold to a major government owned generator. The total sale price for the development rights was $2.25m, of which Novera Energy is entitled to 50%.
