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Cindrigo Holdings Limited, a developer of clean baseload energy solutions, has released its unaudited interim results for the six-month period ended 30 June 2024.
Strategic Acquisitions and Shifts
The Company has made significant progress in its expansion strategy with two notable acquisitions:
- Kaipolan Energia Oy: Cindrigo has acquired 100% of this Finnish company, which operates a 110MW heat and energy plant in Kaipola, Finland. Following the acquisition, Cindrigo’s stake was adjusted to 90%. This acquisition is a key part of the Company's strategy to enhance its clean energy portfolio.
- Geothermal Licences in Germany: The Company has signed a Term Sheet to acquire 85% of three geothermal licences located in Germany's Upper Rhine Valley. These assets, supported by substantial government subsidies, are expected to provide significant income and replace the previously abandoned Slatina 3 Project in Croatia.
The Slatina 3 Project was halted due to political licensing issues, despite a £5 million investment. This shift in focus to more promising projects reflects the Company’s strategic realignment in response to regulatory challenges.
New Funding
In April 2024, Cindrigo secured an additional €1.5 million from its principal shareholder, Danir AB, to fund the acquisition and refurbishment of the Kaipola plant. This funding will support the Plant’s refurbishment and integration into the Company’s portfolio, aligning with its growth objectives.
Financial Overview
For the six-month period ended 30 June 2024, Cindrigo reported a significant loss of £7,864k, compared to a loss of £964k in the same period in 2023. The increase in loss is attributed to:
- £4,470k impairment: Related to the Slatina 3 Project in Croatia due to licensing issues.
- £2,357k in fees: Spent on arrangement and breaking fees for loan renegotiations.
- £82k in legal, regulatory, and public group costs and £418k in professional and consultancy fees.
As of 30 June 2024, the Company’s financial position includes borrowings of £11,142k, which encompasses two new loans totaling £4,012k. Trade and other payables have risen to £4,121k, mainly due to a deferred consideration payable of £3,279k for the acquisition of a new subsidiary.
Outlook
Cindrigo has achieved a significant milestone with the acquisition of Kaipolan Energia Oy, which holds a 50-year lease on the Kaipola Plant. The Plant, currently undergoing minor repairs, is expected to commence operations in Q4 2024 and is projected to generate over €10 million in EBITDA once fully operational.
