Business
Trading Update March 2016
Trading Update March 2016.
About this update from Active Energy Group Plc
[{"type":"text","content":"\n \nRNS Number : 1265T Active Energy Group PLC 24 March 2016 \n\n24 March 2016\nActive Energy Group Plc\n(\"Active Energy Group\" or the \"Group\" or the \"Company\" or \"AEG\")\nTrading Update March 2016\nOn 7 December 2015, Active Energy Group Plc (AIM: AEG.L), the AIM-listed supplier of timberland management and development services, industrial wood fibre and Biomass coal replacement fuels, announced that, despite strong trading by its AEG WoodFibre division in the fourth quarter, it anticipated that the Group would incur a loss for the full year. \nThe Board provides below an update on trading in each of its divisions ahead of the release of AEG's preliminary results for the year ended 31 December 2015, which is anticipated in early June 2016.\nAEG WoodFibre:\nAEG WoodFibre's trading concluded strongly in Q4:2015 and the division has continued to trade well in 2016, maintaining margins, although on volumes of approximately 23,500 tonnes per month, compared to approximately 27,000 tonnes per month in Q4:2015, primarily as a result of poor weather in January. The Board continues to anticipate that the division's new softwood production line will commence operating in Q2:2016, which will further enhance its operating capacity.\nAEG TimberLands:\nSince the announcement on 7 December 2015, AEG has continued to negotiate with a fourth Métis Settlement and to commission at the Group's expense further due diligence on behalf of potential investors. \nHowever AEG TimberLands' joint venture has continued to experience delays in its dealings, including matters related to the Alberta Government. The Board is trying to resolve these issues, but the delays have meant that forestry operations have been postponed beyond Q1:2016. As a result of the delays in the commencement of operations, approximately US$0.6 million of AEG expenditure relating to this division in 2015, which the Board had planned to capitalise, will now be charged to the profit and loss account. \nA further announcement concerning AEG TimberLands will be made when appropriate.\nAEG CoalSwitch:\nThe Group announced on 7 March 2016 that the University of Utah's Clean and Secure Energy Institute had concluded that AEG CoalSwitch's technical and commercial viability for use as a standalone fuel, or co-fired in high concentrations with coal in traditional coal-fire...