HELIUS ENERGY PLC
4th November 2014
Helius Energy plc
("Helius" or the "Company")
Board Changes and Corporate Update
As part of the strategic review announced on 16th September 2014, Helius announces that it has undertaken a comprehensive review of its structure to reduce its operating cost base whilst ensuring that it remains capable of achieving financial close of its Avonmouth project, supporting the Helius CoRDe project at Rothes in Scotland and continuing to develop its further pipeline of projects.
Following that review, Dr Adrian Bowles and Christopher Corner have agreed to step down as Chief Executive and Commercial Director respectively. Both have resigned as directors of Helius and its group companies with effect from 3rd November 2014. Adrian and Chris have each entered into a consultancy agreement with the Company under which they will provide support to the Helius Group where required until at least the end of February 2015. Such arrangements permit the Company to realise significant cost savings whilst retaining their extensive experience and knowledge for the benefit of the Avonmouth project, Helius CoRDe and other projects.
Helius Chairman , John Seed, will take-on the role of Executive Chairman in the short term. Chief Operating Officer, William Ingram Hill, and Chief Financial Officer, Alan Lyons, will jointly lead the Company through the next stage of its development.
As well as these changes at Board level, the Company is consulting in respect of a redundancy programme to ensure maximum efficiency of its cost base, with the intention that the combined cost savings, after restructuring costs, will provide the Company with working capital to February 2015. The Company will work with CoRDe in respect of the timing of the first cash dividend to be paid by the CoRDe project, and it will target a group cost structure under which management service income and future dividends from CoRDe will be sufficient to cover the Company's cost base going forward. The Company's cash position remains tight and, in the event that the Company is unable to secure financing for the Avonmouth Project or to match its cost structure to CoRDe dividend receipts, it is likely that the Company will need to raise additional financing.
The Company continues to explore its options to maximise value from its projects and to work with a club of banks, HM Treasury and Macquarie (as its financial advisor) to fund its Avonmouth project.
John Seed, Chairman of Helius, said "We are extremely grateful to Adrian Bowles and Chris Corner for the huge contribution they have made to Helius since its foundation and for their continued support as we take the Company forward. The past year has been extremely challenging for the energy sector. Our priorities remain to finalise funding and commence construction of our Avonmouth project as soon as possible and to continue efficiently to operate the Helius CoRDe plant in Rothes in order to maximise first dividends from that project. We believe the newly structured team, led by Alan and Will, will be well placed to deliver these priorities".
For more information please contact:
Helius Energy plcTel: +44 (0) 20 7723 6272
William J. Ingram Hill, Chief Operating Officer
Alan Lyons, Chief Financial Officer
Numis Securities LtdTel: +44 (0) 20 7260 1000
Jamie Lillywhite (as Nominated Adviser)
James Black (as Corporate Broker)
Citigate Drewe Rogerson Tel: +44 (0) 20 7638 9571
Chris Gardner
Malcolm Robertson
This information is provided by RNS
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