Timber and biomass group Active Energy Group PLC (LON:AEG) reduced losses and increased margins in 2016 and is upbeat on future prospects.
For the 12 months to end December, the group generated revenue of US$19.2mln (2015: US$24.4million) and the loss before tax reduced to US$2.3million, compared to 5.5million in 2015.
Gross margins improved on the back of a strong first half performance to US$14.63 a tonne (2015: US$8.87 a tonne) and overheads reduced by 43%, the company said.
Chief executive Richard Spinks, said: "I believe we are at an exciting point in the development of the group as we look to capitalise on what we believe is an excellent opportunity in Newfoundland and Labrador, where our immediate priority is to finalise the proposed Forestry Management Agreements and Crown Timber Licences, as well as commercialise our biomass fuel, CoalSwitch TM."
He also noted that having taken the decision to divest the firm's wood chip operations in Ukraine, this would open other opportunities for the company.
Last month, AEG signed an in-principle deal for a Crown timber licence and forest management with the Province of Newfoundland and Labrador in Canada relating to two Forest Management Districts covering 1.2mln hectares.
The timber licence and proposed 20-year forestry management deal is intended to harvest and utilise up to 140,000 solid cubic metres of wood annually from the Forestry Management Districts 17 and 18 within the Province.