Powerhouse Energy Group plc (AIM: PHE), the UK technology company pioneering integrated technology that converts non-recyclable waste into low carbon energy, is pleased to announce its unaudited half year report for the six months ended 30 June 2023.
Highlights
Management and Business Strategy
- Appointment of new Non-Executive Chairman (Antony Gardner-Hillman) and three Non-Executive Directors (David Hitchcock, Tony Gale and Prof. Karol Kacprzak) with Paul Emmitt as Acting Chief Executive Officer.
- Acquisition of the remaining portion of Engsolve shares (51.61%) to complete the 100% ownership of Engsolve and integration into the Powerhouse Group.
- Announced new Business Strategy in the Annual Report to develop revenue streams through provision of engineering services and being actively involved in developing capital projects using project finance methodology.
Commercial Development
- Framework Services Agreement signed with Petrofac for provision of engineering services on request.
- Completed acquisition of 100% of the shareholding in Protos Waste to Hydrogen No1 Ltd, the special purpose vehicle for the Waste to Hydrogen development at Protos. PHE is managing the project and working with Petrofac to finalise details prior to procurement of plant and equipment.
- Established representation in Northern Ireland with view to developing capital project in Ballymena.
- Signed heads of agreement on a joint venture with Hydrogen Utopia International plc (LON: HUI) at Longford, replacing project at Lanespark, Tipperary.
- Progressing prospects in south-east Asia and
Australasia.
Technology and Innovation
- Entered into lease and took possession of self-contained building in Bridgend, Wales for establishment of the Powerhouse Technology Centre, expected to open in Q1 2024.
- Feedstock Testing Unit in manufacture by Mitchell Dryers to be installed in the Powerhouse Technology Centre. Anticipated operational by Q1 2024.
- European patent on temperature control in kiln formally allowed to go forward for registration.
- Collaboration with University of Manchester on computerised fluid dynamics and new methods of hydrogen separation from syngas.
Financial Performance
- Revenues for the half year of £nil (H1 2022: £353k).
- Gross Profit for period £nil (H1 2022: £79.9k).
- £4.90m cash at bank at 30 June 2023 (30 June 2022: £7.54m).
- lacing to raise £1m before expenses on 21 August 2023, supplementing the Group’s resources.
The Group’s revenues and gross profit for the half year ended 30 June 2023 decreased compared to the same period in 2022 due to the Company changing strategy and acquiring Engsolve Ltd (Engineering Services Supplier) and Protos Waste to Hydrogen No.1 Ltd (Waste to Energy Project). These acquisitions formed part of the Company’s future strategy and changed the transactions between these companies from third party supplies and third party sales to intragroup transactions which were therefore eliminated from the consolidation.
Statement from Tony Gardner-Hillman, Non-Executive Chairman of Powerhouse Energy Group Plc
“PHE took a major step forward in 2023 with a new business strategy and a new board to deliver it whose members have committed to the Company and are expanding its activities to secure its future. I welcome David Hitchcock, Tony Gale and Karol Kacprzak as new board members and thank Paul Emmitt and Hugh McAlister for their ongoing support. I also welcome the Engsolve team and look forward to the positive contribution they will make to PHE. Keith Riley has just announced his resignation from the board and as Acting CEO. My thanks to Keith were set out in the Company’s announcement on that topic on 06 September 2023.
The profit and loss statement in this half year report does not, in my view, reflect the true trading potential of the Company. Following the acquisition of the Protos SPV, the revenues reported last year in servicing the Protos project have now been internalised, and so are reported as a cost. Meanwhile the acquisition of Engsolve occurred late in the period, so minimal benefit from Engsolve revenues is recognised in these accounts.
Good progress has been made on the development of the Powerhouse Technology Centre. The board held its July board meeting there. The building is now ready, and the Feedstock Testing Unit is well into manufacture. I look forward to the Centre being operational early next year and believe it will become a cornerstone in PHE’s ability to promote its technology and know-how. The Centre will also help to support the Company’s investments in capital projects, which are now moving forward in Northern Ireland and the Republic of Ireland as well as Protos. Considerable interest in PHE’s offering is also being expressed in south-east Asia and Australia.
There is much work to be done. We need to ensure the integration of Engsolve, and PHE must grow its presence in the provision of engineering services as well getting other commercial projects underway. The changes implemented during the first half of this year will enable this to happen. We look forward to updating investors on our progress as we continue through the year.”
For more information, contact:
Powerhouse Energy Group Plc
Antony Gardner-Hillman +44 (0) 7733 146326
WH Ireland Limited (Nominated Adviser)
James Joyce
James Bavister
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
