LONDON (ShareCast) - (Sharecast News) - UK and Netherlands-focussed energy company Parkmead reported strong momentum from increased gas prices in its preliminary results on Friday, with revenue for the year totalling £3.6m, down from £4.1m year-on-year.
The AIM-traded firm said there was a 33% increase in the second half compared to the first half, however, reflecting the "strong recovery" in gas prices from the Covid-19 pandemic lows.

Its gross profit increased 39% to £1.8m for the year ended 30 June, which the board put down to the "robustness" of its gas assets, and continued improvements in efficiency.

The company's gross margin expanded to 49% from 31%, as the firm said it was "well-capitalised", reporting cash balances of £23.4m at year-end.

Parkmead said it had benefited from the strong climb in energy prices recently, and was 100% unhedged.

It noted that, from lows of around €5.00 per MWh in July 2020, prices had rebounded strongly, with Dutch TTF prices reaching around €75.00 per MWh in November.

Parkmead said revenue generation had been "excellent" since the end of its financial year, with €3m generated in the first four months of the 2022 period, up 355% year-on-year.

The company said its Netherlands assets remained "very low cost" to operate, and were uninterrupted by lockdown restrictions introduced by the Dutch government.

A non-cash impairment charge of £10.9m was recorded in the firm's results, which it said related to the relinquishment of the Platypus licence at the pre-development stage.

Parkmead said it was maintaining "strict financial discipline", with "very low" operating costs.

"I am pleased to report an important year of progress for Parkmead, despite the year being significantly disrupted by the Covid-19 pandemic," said executive chairman Tom Cross.

"The substantial rise in gas prices post year-end is also creating strong momentum for the group.

"We intend to capitalise on this by further balancing the group's operations to include other energies."

Cross said the "innovative" royalty deal the company completed in July enhanced its gas interests in the Netherlands, and added "significant value" to Parkmead.

"This growth step adds to our portfolio of high-quality energy projects delivered through acquisitions, organic growth and active asset management.

"The successful divestment of non-core land areas is a testament to the team's ability to ensure value is generated from its assets.

"Parkmead has already identified a number of possible locations for renewable energy opportunities within the group's high-graded onshore acreage."

The company was "carefully evaluating" further potential gas, oil and renewable energy acquisitions, Tom Cross said, that would complement its existing business.

"Parkmead is well positioned for the future. We have excellent UK and Netherlands regional expertise, strong financial discipline, and a growing portfolio of high-quality assets.

"The group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led, growth strategy to secure opportunities that maximise future value for our shareholders."

At 0954 GMT, shares in the Parkmead Group were down 12.13% at 41.3p.

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