REG - Clean Power Hydrogen - 2023 Full Year Results
19/04/2024 07:00
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RNS Number : 2283L Clean Power Hydrogen 19 April 2024
19 April 2024
Clean Power Hydrogen plc
("CPH2", the "Company" or the "Group")
Financial Results for the Financial Year ended 31 December 2023
Clean Power Hydrogen plc (AIM: CPH2), the UK-based green hydrogen technology
and manufacturing company that has developed the IP-protected Membrane-Free
Electrolyser ("MFE"), is pleased to announce its results and report for the
year ended 31 December 2023 (the "Period").
Highlights
· Solid progress towards the commercial roll out of CPH2's MFE
technology on back of a revamped engineering team, providing new insights and
reassessment:
o Successfully ran the entire MFE110 system proving the differentiated
technology works at scale.
o Successful functional testing of the control programme for the MFE110,
enabling automatic operation and shutdown.
o Improvements and modifications to key components including stacks,
cryogenic heat exchanger and other measures enhancing safety;
o Rigorous testing of the MFE110 has identified upgrades, informing valuable
enhancements for the MFE220 design.
· Year-end net asset position of £21m, of which £8.5m was in cash
or current asset investments (term deposits).
· £2.8m investment in research & design in the twelve months
to December 2023.
· Entered ten-year licensing agreement with Fabrum Solutions Ltd, a
New Zealand based advanced technology developer and manufacturer, with
non-exclusive rights to manufacture and sell membrane-free electrolysers in
New Zealand and Australia.
· In advanced discussions with several potential partners for both
new licences and orders.
· Awarded three ISO certifications confirming CPH2's commitment to
the highest standards of health and safety, sustainability and quality
management measures within our organisation:
o ISO 45001 for Occupational Health and Safety
o ISO 14001 for Environmental Management Systems
o ISO 9001 for Quality Management Systems
Outlook
· Factory Acceptance Testing for the MFE110, the Company's first
scaled membrane free electrolyser, underway with a completion date expected in
the next three months.
· Completion and delivery of the MFE220, CPH2's 1MW system for its
longstanding customer Northern Ireland Water, expected within the next twelve
months.
Jon Duffy, CPH2 CEO commented:
"2023 has been a year of further progress for CPH2, both operationally and
technically. Our focus has centered on developing our unique technology for
commercialisation, ensuring safety and scalability through rigorous testing of
the MFE110. The successful running of the entire MFE110 system, producing
separated hydrogen and oxygen gases, stands as a key milestone for CPH2,
proving our differentiated technology works at scale.
I would like to thank our shareholders who have been patient and supportive as
we approach the final stages of testing. I firmly believe that our methodical
and focused approach to ensuring the technology is both safe and scalable
means that we are well positioned to take meaningful strides once
commericialisation is achieved. Collaborating closely with our license
partners and customers, this year marks another encouraging step toward our
ambitious goal of achieving 4GW of annual production by the end of 2030.
I extend heartfelt thanks to our team for their hard work, dedication and
enthusiasm over the past year and look forward to a positive year ahead."
Annual Report
The Annual Report will be available on the Company' website today
(https://www.cph2.com (https://www.cph2.com/) ) and hard copies are expected
to be posted to Shareholders on 10 May 2024.
For more information, please contact:
Clean Power Hydrogen plc via Camarco
Jon Duffy, Chief Executive Officer
James Hobson, Chief Financial Officer
Cavendish Capital Markets Limited - NOMAD & Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
Camarco PR + 44(0) 20 3757 4980
Billy Clegg
Owen Roberts
Lily Pettifar
To find out more, please visit: https://www.cph2.com (https://www.cph2.com/)
Overview of CPH2
CPH2 is the holding company of Clean Power Hydrogen Group Limited ("Clean
Power") which has almost a decade of dedicated research and product
development experience. This experience has resulted in the creation of
simple, safe and sustainable technology which is designed to deliver a modular
solution to the hydrogen production market in a cost-effective, scalable,
reliable and long-lasting manner. The Group's strategic objective is to
deliver the lowest LCOH in the market in relation to the production of green
hydrogen. CPH2 is listed on the AIM market and trades under the ticker
LON:CPH2.
Chairman's Statement
I am delighted to present the Annual Report of Clean Power Hydrogen plc
("CPH2" or the "Company") for the year ended 31 December 2023.
The past 12 months have formed a year that encapsulated significant progress
and challenges for CPH2. Our technology, which remains at the heart of what we
do, was a key focus as we continued to progress the commercial roll out of our
ground-breaking Membrane-Free Electrolyser ("MFE"). This focused approach to
getting our technology right has put us in a strong position as we enter 2024
and look to target the growing hydrogen market with our unique product.
As we completed CPH2's first full year as a listed entity, what drives us
remains the belief that green hydrogen is a significant solution to reducing
carbon intensity across a multitude of industries including the transport
sector. It is fair to say that the global focus on this has not abated during
the year and importantly from a UK Government perspective, there is strong
support for our operations. Indeed, this support was felt recently as we had
the pleasure of hosting political leaders including Minister for Energy
Efficiency and Green Finance, Lord Callanan, and the Rt Hon Edward Miliband,
Labour MP for Doncaster North and Shadow Secretary of State for Energy
Security and Net Zero.
The green hydrogen market, a truly emerging economy in itself, has battled its
own headwinds in the past year. While the IEA pointed to the potential annual
low-emission hydrogen production of 38 million tonnes in 2030 being 50% above
its 2022 estimate, only 4% of this potential production has taken final
investment decision ("FID"). Practical challenges with green hydrogen projects
have been widely reported due to technology not being fully robust prior to
site deployment, electrolyser reliability and performance issues, as well as
commissioning challenges. It is times like these that Government support is
crucial in getting projects moving and it has been encouraging to see the US
Hydrogen Production Tax Credit, the EU Important Projects of Common European
Interest and the UK Low Carbon Hydrogen Business Model address this to some
extent.
The strategic position of CPH2 and its technology in the hugely exciting
hydrogen market is also a reason to be positive. Our patented and
containerised technology offers a mobile and licensable solution that can fit
within a huge range of industry solutions. As we sit at the edge of
commercialisation, we remain very optimistic of our future and ability to grow
into this nascent market.
Board and Senior Management
In completing our first full year as a listed Company, I take this opportunity
to recognise and thank my fellow Directors for their work over the year. We
retain a strong, active and engaged Board, collectively sharing a passion for
CPH2 to reach its full potential within the hydrogen economy. With this, our
focus on Environmental, Social and Governance ("ESG") has been of particular
importance and we continue to work closely with local communities, educational
establishments and charities.
Our Senior Management Team has been strengthened during the period, notably in
early 2023 we appointed Chief Technology Officer ("CTO"), Paul Cassidy, whose
extensive chemical engineering and licensing knowledge has been a significant
catalyst in the successful development of CPH2's Membrane Free Electrolyser
during the year. We continue to take the governance of our Company extremely
seriously and strive to improve with every challenge and opportunity that
arises.
Outlook
While the past year has been one of good progress, we have also experienced challenges around commercialising our technology. As many who have followed the sector will understand, the complexities of commercialising unique and innovative design are vast but it is encouraging to see that significant progress has been made. The revamped engineering team has injected experience and professionalism into the Company, transforming the quality of engineering output. The levels at which the team have tirelessly worked at overcoming challenges, successfully progressing CPH2's MFE electrolyser in the year have been truly impressive.
As we look to the future, I know that CPH2 sits in an extremely strong position, poised to realise the significant value within the Company. As we continue on our path to commercialisation and beyond, I would like to thank everyone for their efforts in the past year and to our shareholders who have supported us throughout the period.
Christopher Train
Chair
Chief Executive's Review
The past year has seen significant progress both operationally and technically for CPH2. Our key focus has been on developing our technology for commercialisation in a safe and scalable manner.
Technology
The catalyst for strong progress and advances on the technology during the
year has undoubtedly been the revamped engineering team. During the year the
engineering function has been rebuilt into a stronger, more experienced and
professional team. This approach has led to a substantial improvement and a
methodical approach to identifying solutions to the challenges faced. This has
proved to be transformational for our progress on the technology path, and I
am continually encouraged and more confident in our path forwards as a result.
Throughout the period, there has been extensive testing of the electrolyser
units. In November 2023, we successfully ran our development unit, the MFE110,
producing separated hydrogen and oxygen gases at its expected capacity,
proving the IP-protected technology works at scale. The MFE110 contains 125kW
stacks, the same sized stacks which will be used for the MFE220, our
commercial 1MW containerised system. As we reported, however, we ceased the
full Factory Acceptance Testing ("FAT") when it became apparent that we needed
to upgrade the control mechanism and the venting procedures.
Since then, we have been working in conjunction with various third-party
experts (including Lagan MEICA Limited and Cepha Controls Limited) and
registered bodies to ensure that we not only have a successful FAT on the
MFE110 but that we also build in all necessary controls and designs into our
commercial flagship product, the MFE220.
While we had originally hoped for a successful FAT at the start of Q2 2024, we
now expect this to be completed within the next three months. I am both
cognisant and sympathetic to our stakeholders who have been awaiting the FAT,
however I firmly believe that our methodical and focused approach to getting
our technology right means that we are extremely well positioned to push
forward in a meaningful way once commercialisation is achieved.
In the latter stages of 2023, we began work on getting our two proprietary
technology components, the stacks and the cryogenic heat exchanger, CE marked.
We anticipate these being certified by the end of Q2 2024. We continue to
ensure that our technology is protected by both patents and Intellectual
Property ("IP"), , applying for new patents in multiple jurisdictions.
We are committed to developing a safe, sustainable product and our priority
going forward continues to be delivering our MFE technology, reaching
commercialisation.
Operational
Earlier in the year we were awarded three ISO certifications for Occupational Health and Safety (ISO 45001), Environmental Management Systems (ISO 14001), and Quality Management Systems (ISO 9001). The certificates prove our dedication to upholding the highest standards of health and safety, sustainability, and quality management measures in the business.
Commercial update
We are in a strong position commercially, with the Company's pipeline and
order book expected to grow further following the successful commercialisation
of our technology. We continue to work in tandem with our licence partners and
customers. Through our differentiated commercial strategy we are aiming for
3GW of annual production through licensing and 1GW of production through
manufacturing at CPH2 facilities. Our unique and patented technology allows us
to expand production quickly, utilising partners, with limited capital outlay
through such deals.
During the reporting period, CPH2 achieved a significant milestone by entering
into a ten-year licensing agreement with Fabrum, an energy company
specialising in cryogenics. Under this strategic agreement, Fabrum gains
rights to manufacture MFEs at their facility in Christchurch, New Zealand.
Additionally, the licensing deal extends to a non-exclusive sales licence for
both Australia and New Zealand. Fabrum can market and distribute these
electrolysers in these regions, contributing to the adoption of green hydrogen
technology.
Fabrum will manufacture electrolysers either in response to CPH2 orders or
independently for their own sales. This adaptability ensures efficient
production and timely delivery to meet market demands.
CPH2 also has a licensing agreement with KCA Deutag for the manufacture of MFE
units in their Bad Bentheim facility in Germany. They will produce for orders
from CPH2 as well as their own customers. Following the initial two-year
period, they will also be able to manufacture in Oman, and sell exclusively to
certain countries in the Middle East up to 2GW over a ten-year period. They
will also manufacture and sell, on a non-exclusive basis, to their customers
in Germany, Scotland, Denmark, and Azerbaijan up to 150MW per annum.
We are in advanced discussions with a number of potential partners for both
new licences and orders.
People
Our people remain central to the future success of the business. During the
year we have focused on growing our engineering and production capabilities
under the excellent guidance of Paul Cassidy, who joined in March 2023 as CTO,
and Arash Selahi, COO. There is a strong emphasis on promoting a positive
health and safety culture at every level of the organisation, with a strong
emphasis on open communication and engagement. During 2023 there was 0.5 days
in lost time incidents. We are at the cutting edge of green hydrogen
production and are proud of the expertise and knowledge we hold within the
business backed up by a culture of innovation, passion, inclusiveness, and
sincerity.
Market
The outlook for green hydrogen remains exceptionally promising, with an
estimated $1.7 trillion in global investments into electrolysers over the next
27 years. Global warming and energy security are still two of the most
pressing issues we face, and with the need to reach net-zero targets becoming
ever-closer, our technology is well positioned alongside the wider sector to
help reach these goals.
The global consulting business, McKinsey and Company, predict that clean
hydrogen demand could reach 585 million tonnes per annum by 2050. This is
testament to why getting our technology right now is far more important than
ever.
CPH2 occupies a distinctive position to meet the growing demand for reliable,
affordable, and sustainable fuel and we are committed to making a positive
impact to benefit all. Our strategic aim is to have 4GW of annual production
by the end of 2030. Our patented technology means we can licence our
production to third parties. Of the 4GW, we expect 1GW will be manufactured by
CPH2 and 3GW will be manufactured under licence.
Outlook
2024 will be a truly transformational year for CPH2 as we look to commercialise our technology. The upcoming Factory Acceptance Test of the MFE110, has become an important milestone for our stakeholders. Following this, the focus will shift to the completion of the MFE220 orders already under contract. Once we have demonstrated that our MFE technology operates effectively, we will look to commercialise our technology, building the customer order book and focusing on scaling production. That is when our dual model of production and licensing will start to prove itself. We will only scale at a pace that is truly sustainable.
Looking to this year, 2024 will be about building solid foundations to include supply, engineering, production, finance, sales and marketing. The long-term possibilities for CPH2 are too significant to risk on short-term expediency. To put McKinsey's demand projection of 585 million tonnes of clean hydrogen annually into context - that is the equivalent of over 3.5 million 1MW electrolysers.
I would like to thank our incredible team at CPH2 for their hard work, dedication and enthusiasm over the past year and look forward to a positive year ahead. I would also like to thank our shareholders for supporting our vision to improve the world we live in and make tangible steps towards net-zero.
Jon Duffy
Chief Executive Officer
Technology Review
Introduction
Technologically, we have made extensive progress throughout the period,
overseen by Paul Cassidy, who joined as CTO in March 2023. Paul's wealth of
knowledge and track record of scaling up technologies from the laboratory to
implementation at a commercial scale has been an asset to the CPH2 team and by
challenging the previously held collective understanding of the technology,
this has led to critical assessment and improvements in many areas. The
appointment of Paul has seen CPH2 build a stronger, more experienced
engineering team with excellent industry experience and professional
standards, accelerating our internal engineering procedures, commissioning
processes and safety standards.
A diversity of new experience and new ideas within our engineering team has
led to new R&D innovations and opportunities for efficiencies, enhancing
our technology pathway. Throughout the period, we have improved the product
design programme with a better understanding of levels of safety. The revamped
team also identified potential issues and bottlenecks in relation to the
balance of plant which the Company was not previously aware of, all of which
have been or are being resolved. By encouraging innovative and collaborative
thinking, we have created a stronger, more robust electrolyser design which
underscores our confidence in the technology and the potential of its future.
Progress during the year
Tangible progress has been made throughout the year, with our entire MFE110
system successfully running from September to November 2023, producing
separated hydrogen and oxygen gases. The MFE110 contains 125kW stacks, the
same sized stacks that will be used for the MFE220. The efficient operation of
these stacks has inspired further opportunities for improvements to the
balance of plant design to support higher performance for the stacks and
ultimately more output.
The ongoing commissioning process has given extensive operability and design
feedback which has led to the redesign of some components. This process has
been conducted in a methodical way and gives us confidence in our ability to
fully commercialise the MFE.
Although the November 2023 operation proved that the technology route is sound
and confirmed the design of key equipment, the level of manual intervention by
the operators was greater than a commercial product could sustain, which is
intended to operate autonomously. After the testing, a work programme was
undertaken to revisit the control system to minimise manual intervention and
improve the automated shutdown functions.
Post period end, we completed the functional test of the control programme for
the MFE110. This control programme is installed in the Programmable Logic
Controller ("PLC") which automatically operates the MFE110 and controls
elements such as start-up, normal operation, shutdown, and emergency shutdown.
The revision of the control programme, and particularly the safety shutdown
programme logic, has addressed the issue which originally caused the pausing
of the MFE110 FAT in November 2023, and successful completion of the logic
control has allowed the Company to progress to the final stages towards FAT
test of the MFE110.
During the year a work programme was undertaken to improve the quality and
repeatability of stack manufacture through adjusting the manufacturing method.
This has resulted in fewer quality failures and greater repeatability in
achieving essential quality parameters. This has been conducted alongside a
programme to gain CE certification for the stacks.
In regards to developments in safety, the Hazard and Operability Study
("HAZOP") and Layer of Protection Analysis ("LOPA") has been revisited by
independent party and implemented findings. The implemented changes to the
control system of the electrolyser described above ensures compliance with
international functional safety standards IEC-61508 and IEC-61511.
A siting study and consequence analysis for the electrolyser has been
conducted by an independent third party and the findings have been
incorporated into CPH2 safety guidelines.
On the MFE220, the design of the system is being finalised and orders have
been placed for remaining equipment. A new container layout has been developed
for the MFE220 to assist with improved operability, access and ease of
shipping.
The design of cryogenic heat exchanger has been optimised for the MFE220 to
improve thermal performance, mechanical robustness, and consistency in
manufacture. A CE marking process of the cryogenic heat exchanger component is
also being undertaken.
Outlook
Technology is at the heart of what we do. We are striving to deliver the
unique Membrane-Free Electrolyser which produces green hydrogen in a simple,
safe, and sustainable manner, and at any scale. Looking ahead, our focus is on
completing the MFE110 FAT proving our ability to deliver a robust,
industry-ready commercial product. The MFE110 FAT is a component level
demonstration of the MFE220 commercial product which will be delivered to our
first customer within the next twelve months.
Upon commercialisation of our MFE technology, we will continue to invest in
R&D, enhancing the operational efficiencies of CPH2 technology through
updates to key stacks and cryogenic heat exchanger components. We will
continue to invest in R&D related to safety and progress engineering
through roll out of build packs for our licensees.
Financial Review
Introduction
During the course of 2023, CPH2 made significant progress in advancing the
Company's technology towards a commercial offering. The Group finances were
carefully managed to enable the technology to develop at pace, yet the overall
spend of the organisation was otherwise controlled to conserve its resources
whilst the Company is pre-revenue.
Recognising the importance of ensuring resources are focused and not diluted
was also a theme in 2023. Where possible we have aligned our activities
aroundCPH2's core focus. During the year, we negotiated the exit of a contract
for delivery of a MFE110 loan electrolyser and a 1MW MFE220 to a customer in
Paraguay, upon the Company's decision to focus its engineering and
installation resources on its current partners and its long-standing customer
Northern Ireland Water. As stated in the Chief Executive's Review a conscious
decision was made to pause entering into new customer contracts while we focus
on moving the technology to being commercially ready.
For the 2023 financial year, administrative expenses of £5.4m increased
moderately by £0.6m from the previous year (2022: £4.8m), reflecting 12
months of post IPO expansion (2022: 10 months). Whilst there was a focus
recruiting more experienced engineering staff this was moderated by CPH2's
expected staff turnover and undertaken in a controlled manner.
Operating loss before tax was £5.4m for the 2023 financial year (2022:
£3.8m), reflecting the moderate increase in administrative expenses mentioned
above, as well as the one-off exceptional credit of £1m in the comparative
year, due to a share-based credit as well as expensed IPO costs as reported
last year.
R&D tax credits from the 2023 financial year onwards will be recognised in
the year which the credit remains applicable to, whereas up until 2022 R&D
tax credits have been recognised only on receipt. This has resulted in the
2023 financial year including a R&D tax credit for expenditure incurred in
the 2022 financial year (2022: £0.5m) already received and a R&D tax
credit accrued for expenditure incurred in the 2023 financial year.
Capitalised development costs for the year ended 31 December 2023 increased by
£2.0m (2022: £4.2m) and there was an increase of £1.6m in spend on plant
and equipment (2022 £0.3m) of which £1.0m was in relation to expenditure
towards a demonstrator electrolyser. Deferred income has reduced by £0.8m to
£1.8m as at 31 December 2023 (2022: £2.6m) on return of certain customer
deposits as mutually agreed.
Cash
We remain in a solid financial position with £8.5m cash and term deposits as
at 31 December 2023 (Dec 2022: £15.3m). The net operating cash spend was
£3.6m for the year, a 50% reduction compared to the previous year (2022:
£7.2m) reflecting a focus on progress with the technology and cost control.
Cash spend on investment in development work and patent applications was
£2.8m.
Outlook
CPH2 is in a solid financial position with £8.5m in cash and term deposits,
and £1.2m liquid investments at 31 December 2023. As we progress our
technology in the fastest route to commercialisation, we will continue to
ensure that the financial resources are diligently managed and focused on the
Company's core priorities.
James Hobson
Chief Financial Officer
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
£'000 £'000
Administrative expenses excluding exceptional items (5,423) (4,765)
Exceptional net credit - 986
Total administrative expenses (5,423) (3,779)
Operating loss (5,423) (3,779)
Finance income 345 216
Finance expense (49) (55)
Loss before taxation (5,127) (3,618)
Taxation 1,012 174
Loss for the financial year (4,115) (3,444)
Other comprehensive (expense)/income
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences 9 (19)
Fair value decrease in respect of investments (438) (3)
Total comprehensive expense for the year (4,544) (3,466)
Basic and diluted earnings per share (pence) (1.54) (1.35)
Consolidated Statement of Financial Position
AS AT 31 DECEMBER 2023
31 December 2023 31 December 2022
£'000 £'000
Assets
Non-current assets
Intangible assets 7,614 5,476
Property, plant and equipment 2,642 1,387
Fair value through OCI investments 1,059 1,497
Other receivables 120 120
11,435 8,480
Current assets
Inventories 3,155 2,363
Trade and other receivables 1,449 3,239
Current asset investments 6,000 13,500
Cash and cash equivalents 2,468 1,790
13,072 20,892
Total assets 24,507 29,372
Liabilities
Current liabilities
Trade and other payables (1,037) (844)
Deferred income - (1,858)
Lease liabilities (128) (121)
(1,165) (2,823)
Non-current liabilities
Deferred income (1,780) (641)
Lease liabilities (609) (737)
(2,389) (1,378)
Total liabilities (3,554) (4,201)
Net assets/(liabilities) 20,953 25,171
Equity
Called up share capital 2,682 2,654
Share premium account 27,707 27,638
Merger reserve 3,702 3,702
Currency translation reserve (6) (15)
Accumulated loss (13,132) (8,808)
Total equity 20,953 25,171
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2023
Called up share capital Share premium account Merger reserve Foreign currency reserve Accumulated loss
£'000 £'000 £'000 £'000 £'000 Total
equity
£'000
Balance as at 31 December 2021 9 5,545 - 4 (5,910) (352)
Loss for the financial year - - - (3,444) (3,444)
Other comprehensive expense - - - (19) (3) (22)
Total comprehensive expense for the year - - - (19) (3,447) (3,466)
Share based payments - - - - 549 549
Capital reorganisation 1,843 (5,545) 3,702 - - -
Issue of share capital 802 27,638 - - - 28,440
Total contributions by owners 2,645 22,093 3,702 - 549 28,989
Balance as at 31 December 2022 2,654 27,638 3,702 (15) (8,808) 25,171
Loss for the financial year - - - - (4,115) (4,115)
Other comprehensive expense - - - 9 (438) (429)
Total comprehensive expense for the year - - - 9 (4,553) (4,544)
Share based payments - - - - 229 229
Issue of share capital 28 69 - - - 97
Balance as at 31 December 2023 2,682 27,707 3,702 (6) (13,132) 20,953
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
Note £'000 £'000
Cash flow from operating activities
Loss for the financial year (4,115) (3,444)
)
Adjustment for:
Depreciation and amortisation 413 249
Loss on disposal - 5
Share based payments 229 (1,416)
Foreign exchange 11 (25)
Net finance income (296) (161)
Taxation credit (1,012) (174)
Changes in working capital:
Increase in inventories (155) (281)
Decrease/(increase) in trade and other receivables 2,116 (2,361)
(Decrease)/increase in trade and other payables (526) 293
Cash used in operations (3,335) (7,315)
Income tax received 686 143
Net cash used in operating activities (2,649) (7,172)
Cash flows from investing activities
Current asset investments withdrawn/(made) 7,500 (13,500)
Purchase of property, plant and equipment (1,595) (292)
Purchase of intangible assets (2,850) (4,316)
Purchase of investments - (1,500)
Net cash generated from/(used in) investing activities 3,055 (19,608)
Cash flows from financing activities
Issue of share capital (net of costs) 97 28,440
Interest received 345 216
Related party loan repaid - (382)
Interest paid (49) (55)
Payment of lease liabilities (121) (129)
Net cash generated from financing activities 272 28,090
Net increase in cash and cash equivalents 678 1,310
Cash and cash equivalents at the beginning of the year 1,790 480
Cash and cash equivalents at the end of the year 2,468 1,790
Notes to the Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2023
1 Summary of significant accounting policies and general information
Clean Power Hydrogen plc is a public company incorporated in the United
Kingdom and quoted on the Alternative Investment Market ("AIM"). The
registered address of the Company is Unit D Parkside Business Park, Spinners
Road, Doncaster, England, DN2 4BL.
The summary accounts set out above do not constitute statutory accounts as
defined by Section 434 of the UK Companies Act 2006. The summarised
consolidated statement of financial position at 31 December 2022, the
summarised consolidated income statement and other comprehensive income, the
summarised consolidated statement of changes in equity and the summarised
consolidated cash flow statement for the year then ended have been extracted
from the Group's 2022 statutory financial statements upon which the auditor's
opinion is unqualified and did not contain a statement under either sections
498(2) or 498(3) of the Companies Act 2006.
The summary accounts are based on the Group financial statements have been
prepared in accordance with UK adopted international accounting standards
("IFRS") and in accordance with the requirements of the Companies Act 2006.
Going concern
In assessing the Group's ability to operate as a going concern, the Board have
prepared cash flow forecasts for the period to 31 December 2025 in relation to
likely future cash flows in a base case scenario, an upside scenario and a
downside scenario. The base case scenario assumes expected likely future
operations but with conservative assumptions on new sales orders. The upside
scenario considers likely future operations but with moderate growth in new
sales.
The downside scenario explores the scenario where a fundamental technology
issue is found, that would result in delay of at least twelve months to find a
solution. If such an issue arose the Group would aim to take a number of
coordinated actions designed to reduce cash burn whilst having sufficient
capabilities to resolve the issue, including selective disposal of assets, a
cost reduction programme and other commercial actions.
The forecasts for each of the scenarios show that the Company and the Group
will be able to operate within the level of cash reserves. The Directors
therefore have a reasonable expectation that the Company and Group have
adequate resources to continue in operational existence for a period of 12
months from the date of approval of these financial statements and consider
the going concern basis to be appropriate.
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. END FR SFLFMAELSESLRecent news on Clean Power Hydrogen
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