Renewable Power & Light issued interim results for the six months to 30 June today, however events subsequent to the period end have caused the Company great difficulty and bashed the share price.

Renewable Power & Light which was only established in 2006 as an independent producer of renewable power, announced in July that Safari Group, its principal palm oil supplier, would be unable to perform under the existing terms of its contract due to increases in the cost of Palm Oil over the contractual supply price, which in turn undermines Renewable Power & Light’s own business plan.

The company commenced legal action against Safari which it has now been advised is not actually worth pursuing.

Although alternative feedstock supplies are being pursued the statement did not say how soon they would or could be obtained.

The notes to the accounts disclosed that in the period to June $964,807 was paid “for the provision of senior management and business development services” to a company wholly owned by David Lewis the CEO whose contract of employment was terminated last week along with those of Dominic Colvin, Senior Vice President, Business Development.

Renewable Power & Light recorded a loss before tax of US$6.27 million (2006: US$0.2 million) mainly due to administrative expenses.

Net cash at the half year was US$29.8 million (cash and cash equivalents) (2006: US$315,000) with an additional US$20.1 million of cash raised in mid July as part of a secondary placement

The outlook could well be somewhat opaque while Renewable Power & Light “prioritises” the review of all potential feedstock supply opportunities and the recruitment of both a permanent President and Chief Executive Officer and Senior Manager of sourcing operations.

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