REWS (Renewable Energy Waste Solutions plc) files 2018 accounts

In July REWS (Renewable Energy Waste Solutions) plc filed its accounts for the period ending December 2018.

Back in August 2018 REWS were anticipating bringing their waste recycling facility online by the end of 2018, allowing it to start generating the revenue it needed to repay the £2.8 million it had borrowed from investors.

Bad news is that hasn’t happened (or not as at June 2019 when the accounts were published).

Good news is that REWS has borrowed another £10 million. Well, good assuming it eventually gets its facility online, naturally. Otherwise good news becomes much worse news.

The directors describe 2018 as “exciting but challenging”. Due to “delays in the delivery of some key electrical components” the date for bringing its facility for turning waste into renewable energy was pushed back from the end of 2018 to “the latter part of quarter 2 in 2019”. This is also the month before the company’s first 2 year bonds became repayable.

As with the last fundraise, about a quarter of the money REWS raised via its bonds was paid out in issue costs, which would include the commission it paid to its introducers. The accounts show unamourtised issue costs grew to about £3.4 million against a total of £13.2 million outstanding to creditors.

REWS raised funds via 2 year bonds paying 8-12% per year and 4 year bonds paying 10-12% per year. A relatively small amount in bonds paying 20% per year (£159k) will mature in 2019.

Its published net assets now stand at minus £3.6 million and its auditors have noted the material uncertainty over whether the company will continue as a going concern, which will depend on whether it can belatedly get its rubbish power plant up and running, and generating returns of up to 12% per year after costs. (Including the cost of paying a quarter of funds raised out in issue costs.)

Its next accounts are due in June 2020.

10 thoughts on “REWS (Renewable Energy Waste Solutions plc) files 2018 accounts

  1. Are there courses in how to be an Introducer?? They seem to have ‘introduced’ many normally same people into crazy schemes where the victims hand over wads of never to be seen again hard earned money.

    I too am one of these many victims and I always regarded myself as a cynical non-believer ;in anything!)

    I would love to attend a course in which a presumably normal person is changed into a creature that can persuade and lead the victim towards severe financial loss and then ‘disappear’ when the true madness of that scheme is revealed and the money gone.

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  2. Then you will need to join all the government bodies supposedly there to help us – and do not do a thing even when given months of notice – smell the coffee – they just wait and watch – then deny – you are too good for that – so going forward like me – cos now I have very little choice – look after what you have left and number one – YOU! – I will not believe a thing I am told from now on.

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  3. “They didn’t get the correct planning for the facility they have built, so there is a problem” Is that correct? I’ve received their sorry we are deferring your interest payment email a week ago but it was right at the last minute of the payment day with assurances of further contact in 4 working days. Which hasn’t happened so far. I note the “introducers” mention as above and i have spoken to my introducer and they seemed assured that REWS have a plan to sort their issues out. Whats ineteresting to me, is that having been a project manager you can only question their risk analysis and contingency planning to mitigate the risks as mentioned in the article above. In particular they don’t have Goverment backing financially but are relying on the EA to agree to allow their project to continue. Ouch! Like you guys, I await the breathtaking news on their deferment plans and a bondholders meeting!

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  4. JA – See the Dudley Council Planning Portal. The ref is P19/0720
    The have retrospective approval just in, but with a whole lot of conditions attaching. They had to go through this in March because they built something the previous planning applicants 2/3 years ago didn’t ask for.

    You’ve got William McClintock on the board, so you’d have thought they would get the property angle right first time. Unfortunately Mr McClintock is tied up in other problems:
    https://www.opalesque.com/674795/Deloitte_sues_hedge_fund_manager_Jeremy_Leach_over479.html
    And a number of the roads that this leads to, look dangerously unpromising I am afraid. I do hope you get paid OK.

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  5. I would like to know if the Bondholder is entitled to cash in the bond if the company wishes to change the conditions of investing, such as making the holder hang on for four years instead of two and having to wait at least an extra six months before the first interest is paid. REWS make no such offer but could a bondholder enforce it.

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  6. You might try googling ‘it was unlawful for the majority bondholders to aid the coercion of the minority by voting for a resolution which would destroy the minority’s economic rights under their bonds.’
    This judgement in 2012 seems to suggest that the proposed REWS vote is unlawful, but not sure where you would go from there.

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  7. I am a small bond holder of REWS. Could anyone help with the following questions:

    1. is the proposed REWS vote lawful?
    2. Does REWS look a real business run into difficulties or simply a finance scam?
    3. Does introducer have any responsibility if REWS wind-up?
    4. Do we have to contact FCA?
    5. is there a dedicated discussion board like this for bond holders?

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  8. 1. is the proposed REWS vote lawful? Answer – Yes. I have put this REWS and they have taken advice that the ruling I mentioned above does not apply. I imagine they wouldn’t stick their neck out if this wasn’t true. Therefore the proposed vote is lawful.

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