XL TechGroup company AgCert International announces a pre-close trading update
12 December 2005
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, advises that XL TechGroup company, AgCert International plc (“AgCert”), has today announced a trading update prior to its 31 December year end. This trading update covers its operational performance in the modification of animal waste management systems and the subsequent build up of greenhouse gas emission reduction Offset (“Offset”) inventory.
The Board of AgCert is pleased to announce that it has made substantial progress in both its operations and regulatory approvals. Highlights include:
- AgCert has completed 221 sites as at 9 December compared to 74 at 10 September, representing a 300% increase. 128 sites were completed in the last eight weeks.
- The United Nations appointed Clean Development Mechanism (“CDM”) Executive Board approved the registration of two of its projects in Brazil (1) and Mexico (1). The formal acceptance (registration) of a validated project as a CDM project activity under the Kyoto Protocol is the prerequisite for the subsequent verification, certification and issuance of Certified Emission Reductions (“CERs”).
- AgCert received 24 Letters of Approval (“LOAs”) for modification of animal waste management systems, primarily for swine but also for dairy.
Below is a summary of AgCert's operational performance with reference to its key performance measures.
| Performance measure |
10 September 2005 |
9 December 2005 |
| Arrangements for sites ( Brazil, Mexico, Chile, Argentina) | >1,000 | >1,300 |
| Sites in progress | 352 | 244 |
| Build time | 16 to 20 weeks | 12 to 15 weeks |
| Completions | 74 | 221 |
| Capital cost per CER | €1.20 | €1.22 |
| CER annual production rate for completed sites | 0.4 million | 1.2 million |
| Prompt start qualifying farms | 471, of which, 372 farms meet company criteria | 471, of which, 372 farms meet company criteria |
| Total credit reserve (from farms started) | 23 million tonnes CO 2e (1) | 25 million tonnes CO 2e |
| PDDs submitted | 18 | 30 |
| PDDs registered | 0 | 2 |
| Letters of approval | 7 ( Mexico) | 15 ( Mexico) 9 ( Brazil) (2) |
| EUA prices | € 23.83 | €21.60 (3) |
- Credit reserve, from farms started, is lower than previously reported due to a new operational definition of Farm Start that does not consider site pre-assessment as the commencement of construction activities.
- Eight Brazilian LOAs are conditional
- Source: PointCarbon
The Board of AgCert anticipates that its first CERs will be certified, ready for delivery, by the end of Q1 2006. AgCert expects to be able to produce an amount of Offsets sufficient to meet contracted deliveries, subject to completing the remaining final steps of regulatory approval.
AgCert has strengthened its existing operational and financial reporting structures during the last three months to facilitate a more cohesive management structure and information system. The Directors of AgCert believe this has contributed to a better operating performance.
Bill Haskell, Interim CEO, AgCert International said: “I am very pleased with the progress we have made over the last three months. We have managed to address the execution issues successfully and the results are coming through in our key performance indicators. We have also made significant regulatory progress and the prospects for AgCert look increasingly positive.”
Dr John Scott, CEO of XL TechGroup, said: “AgCert's trading update today provides further validation of our confidence in its business. We are delighted with the progress being made and we are optimistic about their future prospects. We remain committed shareholders and we look forward to a substantial increase in the value of our holding over the longer term.”
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