KKB AG annual results 2014 – Diversification and growth with renewable energies

KKB successfully extended and diversified its activities in 2014. National companies were established in Italy, Germany and Norway and new power plants acquired. The wind energy sector started to contribute to production. Revenues increased by 35% to CHF 15.3 million. The operating result (EBIT) of CHF 3.9 million could be maintained at previous year’s level despite significant build-up of the organisation and market entry costs.

The KKB group consistently pursued its growth strategy in 2014 and strengthened its market position in decentralised and renewable electricity production in five countries. The consolidated net earnings in 2014 rose 33% to CHF 14.7 million from the previous year’s figure of 11.1 million. The expansion of the solar-energy sector in France and Italy as well as new wind-power acquisitions in Germany contributed to this growth. Furthermore, the first two hydro power stations were acquired in Norway at the end of 2014. Hydro power accounted for 55% of the turnover, while solar energy contributed 30% and wind power 15%.

Operating result (EBIT) remained at the previous year’s level of CHF 3.9 million. The EBIT margin stood at 26.2% (35% in 2013). The entire KKB Group generated a positive result of CHF 1.1 million after taxes and before minority interests (2 million in 2013). The favourable annual result enables KKB to maintain the dividend at the previous year’s level. The Board of Directors is proposing a dividend of CHF 0.20 per share to Kleinkraftwerk Birseck AG’s General Assembly, which will be held on May 26, 2015.

In 2014 CHF 26 million were invested in the construction of KKB’s own production facilities while CHF 9.6 million were spent on the purchase of existing power plants. This development activity is weighted towards the wind and solar energy sectors. The balance sheet total grew to CHF 196.2 million during the year from the previous year’s 108 million. At the end of 2015 the KKB Group held current assets of CHF 16.4 million (6.7 million in 2013).

The successfully completed capital increase in 2014 enabled a rise in equityby CHF 82.7 million. In addition to payments in kind and loan conversions, CHF 17.6 million in new cash were invested, of which CHF 9.6 million came from financial investors. This brought the equity ratio to 38.3% from 33% in 2013.

Further capital increase planned

At the 2015 General Assembly, KKB intends to obtain approval for a further capital increase with up to 4.44 million new shares corresponding to an increase in equity of a maximum of CHF 40 million. The registered shares will be issued at a price of CHF 9 each. The proposed capital increase should generate new cash for investment in renewable energy and thereby ensure the expansion of a diversified portfolio covering five countries (Switzerland, Germany, France, Italy and Norway) and three technologies (hydro, sun and wind).