UK-listed cash shell Aura Renewable Acquisitions plc, whose objective is to invest in the global renewable energy sector supply chain and thereby build shareholder value, has announced its interim results for the six months ended 30 June 2023, as it continues to seek out a suitable target in the renewable energy space.
Aura Renewable Acquisitions raised net proceeds of £1,005,000 when it joined the Standard Segment of the Main Market of the London Stock Exchange in April 2022 and, since the IPO the business has continued to incur minimal overheads while it looks for a suitable acquisition target. This is reflected in the net loss before taxation for the six-month period of £69,598 (2022: £164,065 (loss)), and that at 30 June 2023 the company had retained cash and bank resources of £723,127.
Aura was established to acquire and then act as the holding company for targeted businesses operating in the global renewable energy sector supply chain, particularly participants in the wind, solar, biomass, hydropower, carbon capture, waste management, smart grids and green hydrogen supply chain, and their sub-sectors.
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The board said this week that it has continued to investigate a number of potential acquisition and investment opportunities during the year-to-date, in the UK and overseas, which could offer the scale and scalability required to achieve significant growth in this crucially important market sector.
Aura also continues to engage regularly with the board’s extensive financial networks to maintain its profile and promote its expansion strategy with the board’s extensive introducer base.
Challenges created by war in Ukraine, high interest rates
Chairman Croft admitted that economic and political uncertainty caused by persistent inflation, high interest rate rises and continuing hostilities in Eastern Europe have continued to depress capital market activity and new issues during 2023, although M&A is more buoyant across markets.
“The growing awareness of what is now seen as the clear, present and irrefutable danger of global warming on populations, habitats and landscapes underpins our business strategy and economic rationale,” Crofts argued. “Fortunately, there is a growing if sometimes inconsistent shift by national governments to focus on sustainable renewable energy.”
Against a background of general uncertainty and unquestioned need, Croft said that Aura Renewables Acquisitions’ closely targeted and considered approach to its first acquisition is correct, aiming to identify a transformational target that can create a meaningful contribution in the renewable energy space.
“There can be no doubt that the renewable energy sector will offer exciting opportunities for acquisitive and organic growth for the foreseeable future, and we are committed to ensure that the company and its stakeholders will share in these opportunities,” Croft explained. “Within our team we have both the skills and experience to capitalise on the opportunities that are expected to arise in the renewable energy sector supply chain.”
Aura Renewable Acquisitions’ strategy
Aura Renewable Acquisitions’ strategy is dependent to a significant extent on its ability to identify sufficient suitable acquisition opportunities and to execute these transactions at a price and on terms consistent with its strategy. In particular, in order to qualify for re-admission to the Official List following an acquisition, the expected aggregate market value of the issued Ordinary Shares on such re-admission would have to be at least £30 million.
However, it is possible that the board might decide to seek admission to the AIM Market at the time of its first acquisition, where no such size constraints exist, rather than re-join the Official List.
