Australian Power And Gas Company Limited (ASX:APK) Half Yearly Accounts

Sydney, Mar 3, 2010 AEST (ABN Newswire) - Australian Power and Gas Company Limited (ASX:APK) present the financial report of the company and its subsidiaries (the Group) for the half-year ended 31 December 2009. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

1. Directors

The names of the directors of the company in office during or since the end of the half-year to the date of this report are:

Mr Ian McGregor     ChairmanMr James Myatt      Managing directorMr Michael Hogg     Non-executive directorMr Richard Poole    Non-executive director

Directors have held office for the entire period unless otherwise noted.

2. Review of operations and operating result

The Group continued to develop its energy retailing customer base. A further 20,000 (unaudited figure) net customer accounts were transferred during the half-year, bringing active customer accounts to 120,000 (unaudited figure) as at 31 December 2009. Revenue during the reporting period was A$60,793,000, up 108% from A$31,517,000 recorded in the prior period.

Operating expenses for the half-year totalled A$54,471,000, up from A$34,234,000 in the previous half-year, and reflect the changing scale of the Group's business. The main categories of expenses were:

- costs of sales of A$43,049,000 including the benefit of hedging contracts;
- employee benefits expense of A$3,482,000; and
- administration expenses of A$7,940,000.

Depreciation and amortisation of A$3,143,000 mainly related to the expensing of customer acquisition costs.

Finance costs of A$1,711,000 were lower due to reductions in facility costs achieved.

The net profit after income tax was A$1,102,000 whereas the previous period's result was a loss of A$5,647,000.

Capitalised costs of customer acquisition as at 31 December 2009 totalled A$4,491,000, net of amortisation.

Customer acquisition costs relating to customers on term contracts are amortised over the estimated life of the contract. Financial facility costs capitalised totalled A$1,991,000, net of amortisation, and are amortised over the period of the relevant agreements.

The number of full time employees as at 31 December 2009 was 44. Full time staff are primarily engaged in the management of the operating processes or customer acquisition support functions.

The Group had cash and cash equivalents of A$4,701,000 at 31 December 2009, excluding amounts held as security for guarantees issued to suppliers of A$3,060,000.

3. Dividends

No dividends were paid or provided during the half-year to 31 December 2009.

4. Auditor's independence declaration

The auditor's independence declaration is included on page 18 of the half-year financial report.

5. Rounding of amounts

The Company is of the kind referred to in the Australian Securities and Investment Commission Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the directors' report and the half-year financial report have been rounded to the nearest thousand dollars, unless otherwise indicated.

Signed in accordance with a resolution of directors made pursuant to s306(3) of the Corporations Act 2001.

Directors Declaration

The directors declare that:

(a) in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and

(b) in the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the directors

Ian McGregor
Chairman
26 February 2010

For the complete Australian Power & Gas Company Limited's Half Yearly Accounts, please click the link below:

http://www.abnnewswire.net/media/en/docs/62386-ASX-APK-585213.pdf

Contact

Andrew Butler Australian Power & Gas Tel: +61-2-8908-2711 Mob: +61-419-818-801