Parkmead Group (AIM:PMG) cheered the removal of the UK’s effective ban on new wind projects, highlighting that the move promises to unlock a range of new renewable energy opportunities.
In London, the small-cap share rose around 13% to trade at 15.07p, valuing the business at around £16.5 million.
The ‘balanced’ UK energy company, which today reported full year results, through the Kempstone Hill wind farm in north-east Scotland generated 2,570MWh of electricity during the year and continues to focus on growing this part of its business.
Meanwhile, it told investors it is advancing talks to sell its portfolio of oil and gas assets.
“Parkmead has a valuable long term asset in its UK offshore oil licences and its UK ring fence tax loss pool,” executive chair Tom Cross said in the results statement.
“The company is in ongoing discussions as it seeks to deliver shareholder value from this asset.”
Cross added: “Parkmead continues to benefit from its balanced portfolio, and in particular its exposure to the UK renewables market which the new UK Government sees as a key area for growth.
“We welcomed the removal of the de facto ban on onshore wind energy developments across England which may unlock a range of investment opportunities.”
“The group's robust financial position provides Parkmead with a distinct advantage as we seek to further enhance shareholder value through acquisition opportunities across the group."
Financial results
Parkmead reported a post-tax profit of £4.90 million for the financial year ending June 2024, versus last year’s reported £42.30 million loss. Earnings per share were reported at 4.52 pence.
Revenue for the year amounted to £5.70 million, down from £14.80 million in FY23, primarily due to lower average realised gas prices but higher volumes helped maintain a gross margin.
The group’s net assets grew by 33.33% to £19.60 million, and cash reserves stood at £9.50 million.
"We have delivered another year of strong operational results, which has led to a healthy profit for the Group and earnings of over four pence per share,” Tom Cross commented.