Audited Results for the year ended 30 September 2009

31 March 2010

IPSA, the AIM and Alt^X dual listed independent power plant developer with operations in southern Africa, today announces its audited results for the year ended 30 September 2009.

Key points for period include:

• Group after tax loss of £5.5m (2008 loss £4.5m);
• Decision taken to sell all four gas turbines;
• Delay in obtaining PPA under Eskom MTPPP tender leads to suspension of steam sales.

Key points since the year end include:

• Conditional sale of one gas turbine to IPC, a company controlled by Peter Earl;
• Issue of £650,000 of loan notes due January 2011, plus warrants;
• Standstill agreement with major creditors Standard Bank and TurboCare to January 2011 and marketing agreement in respect of the turbines;
• Chairman to step down at AGM.

Commenting, Stephen Hargrave, Chairman of IPSA, said:

"The financial year ended 30 September 2009 was an extremely difficult one. I would like to thank the operating team at the plant in Newcastle for their hard work and faith in the future of power generation in South Africa, as well as the directors in London, who have showed determination and tenacity in the face of difficult times. As with last year, financing remains our top priority for the coming year and significant risks still remain. However, the recent Loan Note issue provides us with working capital to enable us to progress the coal-fired developments in the Eastern Cape in addition to securing the sale of the turbines and the PPA for Newcastle."

Commenting, Peter Earl, CEO of IPSA, said:

"There is little positive to say about the year ended 30 September 2009.  However, in the coming twelve months the Company is focussing its efforts on completing the sale of the four gas turbines and on developing the coal-fired capacity in the Eastern Cape, in addition to securing the long-awaited PPA for our plant at Newcastle.

The recent marketing agreement with TurboCare SpA and Standard Bank PLC, which provides for the marketing of the gas turbines as well as a formal standstill arrangement, is an important development that puts us in a good position to sell our turbines from a position of strength.

I am sorry to see the departure of Stephen Hargrave as Chairman, but I join my colleagues in thanking him for his contribution in leading our boardroom debates over the past four and a half years."

Notice of AGM and posting of results 

A further announcement will be made detailing the location, time and date of the Company's Annual General Meeting.

Copies of the Annual Report and Accounts will be sent to shareholders by 31 March 2010, and made available on the Company's website www.ipsagroup.co.uk.

For further information contact:

Or visit IPSA's website: www.ipsagroup.co.uk 

The financial information contained in this announcement does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006 in respect of 2009 accounts or Section 240(3) of the Companies Act 1985 in respect of 2008 accounts. This announcement was approved by the Board on 29 March 2010. Statutory Accounts of the Company in respect of the financial year ended 30 September 2009, upon which the Company's auditors have given a report which was unqualified with an emphasis of matter in regard to going concern, have been delivered to the Registrar of Companies.

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