From NOT A LOT OF PEOPLE KNOW THAT
SEPTEMBER 27, 2021
By Paul Homewood
h/t Lez
Beware inexperienced investments!
Holders of “mini-bonds” issued by Future Renewables Eco, a wind farm funding firm, are braced to lose greater than half their investments after it collapsed into administration on Sept 17.
It owned 10 wind generators throughout Britain and was funded by 750 bondholders who ploughed £24m into the corporate between 2015 and 2017.
They had been as a consequence of vote on Sept 18 on whether or not the corporate needs to be wound up or positioned in administration, however the firm’s bosses stated early voting recommended an administration was inevitable. The firm stopped paying curiosity in May of this 12 months.
One investor invested greater than £150,000 of his inheritance within the bonds, which paid as much as 9.5pc per 12 months.
He stated: “I was a fool. I searched for an ethical investment. I have grandchildren and I wanted it to build up the capital and support the wind industry.”
He thinks Future Renewables was too optimistic about how a lot cash could possibly be comprised of promoting the electrical energy to the grid, a key a part of its marketing strategy.
https://www.telegraph.co.uk/money/consumer-affairs/invested-150000-inheritance-wind-farms-fear-gone-good/
I actually can not perceive individuals who make investments a lot cash in any single firm, regardless of how enticing it might look. I think they had been duped by the excessive charges of curiosity on provide, which actually ought to have set alarm bells ringing.
But I've no sympathy by any means with anyone who prioritises “ethical investment” over monetary commonsense.
A fast have a look at the Annual Accounts of this firm exhibits its complete enterprise mannequin was doomed to fail. The very first thing to note is that the newest set of accounts are for June 2018, filed in February 2019. Clearly the corporate has been in hassle for a very long time.
Those Accounts present how a lot they've relied on subsidies for his or her earnings:
Feed in Tariffs and ROCs account for 72% of turnover, figuring out at £91.60.MWh. In distinction, electrical energy gross sales solely earned £35.02/MWh
As you will notice, they chalked up a lack of £1986K, earlier than revaluation features taken on the acquisition of one other wind farm in the course of the 12 months.
A look on the P&L exhibits that the corporate was successfully bankrupt three years in the past:
With turnover of £593K and working prices of £982K, the corporate clearly was not viable. And that's earlier than curiosity payable to bondholders of £2457K. Bondholders, by the way in which, had been owed £15 million on the time.
The firm solely managed to remain afloat in 2018 by borrowing £4 million from bondholders that 12 months.
Unfortunately buyers like this man have been fooled by the lies put about by the wind trade and renewable foyer, who've deceived the general public into pondering that wind energy is reasonable and environment friendly.
As the Future Renewables Eco’s bondholders at the moment are discovering out to their price, it's nothing of the type.
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