React Energy losses widen as search for funding continues

24th Jun 2015 09:10

React Energy has reported an increase in losses as it continues to try to raise capital.The Ireland-based energy infrastructure company on Wednesday published both its full-year results for the year to 30 June 2014 and its half-year results for the six months to 31 December 2014.Full-year losses before tax jumped to €15.2m for the year to 30 June 2014 from €2.6m previously, while revenues fell to €650,029 from €2.66m.Losses continued to widen during the first half ended 31 December 2014, rising 53.7% to €1.3m. However, revenues rose to €153,985 from €36,267.React said 2014 was a very difficult time for the group with "incorrect and financially damaging" technology choices in its biomass projects, it said.Last month, React made a petition to the High Court in Ireland to appoint an examiner with the aim to put together a scheme of arrangement with creditors which will allow the companies to trade as sustainable businesses post the examinership, it announced at the time.The decision followed the suspension of funding discussions with a strategic investor which resulted from a dispute with the landlord of its Enfield site.On Wednesday, the group said it believes progress towards securing finance has been made and expects it will exit the examinership progress and have adequate resources to continue to operate.It added, however: "There can be no assurance that the company will be able to raise capital needed to fund its operations or implement management's plans."