Kibo Energy, the renewable energy-focused development company, said on Thursday that following from the losses incurred in the current financial period, it had sought funding to address a liquidity crunch.
In its financial results for the 12 months ended December 31, 2022, the group said after the losses sustained in the reported period, coupled with the net current liability position the group found itself in as at December 2022, these indicated that a material uncertainty existed, which might cast significant doubt on the group’s ability to continue as a going concern.
"This is largely attributable to the short-term liquidity position the group finds itself in as a result of the significant capital required to develop projects that exceeds cash contributed to the group by the capital contributors,“ it said.
Ireland-based Kibo has energy projects in Africa and the UK and is technically insolvent, as total current liabilities of £4.2 million (R100m) far exceeded total current assets of £391 107.
The group reported a significant financial loss for the year amounting to £10.9m.
“In response to the net current liability position, to address future cash flow requirements, detailed liquidity improvement initiatives have been identified and are being pursued, with their implementation regularly monitored in order to ensure the group is able to alleviate the liquidity constraints in the foreseeable future,” it said.
The group also reported total revenues increased to £1.03m compared to 2021’s £3 245. Headline loss per share was £0.0009 for the reported period and there had been no dividends declared or paid during the current financial period. Even in 2021, the group did not declare a dividend.
Kibo reported a £7m impairment loss mainly on Mast Energy Developments plc (Bordersley), Mbeya Coal in Tanzania and Mabesekwa Coal in Botswana to power projects as a result of the continuing global shift to move toward renewable energy and disregard fossil fuel assets, coupled with the group’s execution of its renewable energy strategy during the 2022 financial period.
The group said one of its highlights for the 2022 financial year was the joint venture agreement to develop a portfolio of waste to energy projects in South Africa with Industrial Green Energy Solutions, which would initially develop a phased 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW.
“A 20-year conditional power purchase agreement has been secured for initial 2.7 MW phase,” it said.
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