REG - Powerhouse Energy Gp - Half Year Report for six months ended 30 June 2024
19/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240919:nRSS7759Ea&default-theme=true
RNS Number : 7759E Powerhouse Energy Group PLC 19 September 2024
19 September 2024
Powerhouse Energy Group plc
("Powerhouse", "PHE", the "Group" or the "Company")
Half Year Report for the six months ended 30 June 2024
Powerhouse Energy Group plc (AIM: PHE), the UK technology company pioneering
integrated technology that converts non-recyclable waste into low carbon
energy together with a revenue generating engineering consulting division
(Engsolve), is pleased to announce its unaudited half year report for the six
months ended 30 June 2024.
Highlights
Corporate
· Business strategy refined to focus on licensing fees, royalties and
engineering services revenues which include potentially providing third party
testing of waste streams at the Brackla Technology Centre once fully
commissioned.
· Appointment of David Hitchcock as Non-Executive Chairman.
· Appointment of new Nominated Adviser and separate Broker (post
period end).
Commercial Development
· Progressing projects with Australian based, National Hydrogen
Limited (National H2).
· The Ballymena, NI project continues to progress. Lease terms have
been agreed and associated legal documentation is being drafted to set out
terms in a signed contract.
· Pre-permit work at Longford, Ireland, is progressing through our JV
with Hydrogen Utopia, at minimal cost to Powerhouse.
· Engsolve integration into the Group is now complete.
· Continuing to work with Altec Energy, in Thailand, with a number
of potential opportunities identified.
· Protos is now a low priority project with Powerhouse having an
option on a site in the Protos Plastics Park subject to an ongoing annual fee.
Technology and Innovation
· Entered into lease to assume further office space in Bridgend, to
accommodate the expansion of both Powerhouse and Engsolve personnel to meet
strategic requirements.
· Feedstock Testing Unit (FTU) partially complete with kiln and gas
clean-up systems installed.
· Grant of GB Patent Application No GB1910309.2; "Treatment of
waste producing recirculated combustible", and resolution of a challenge to
one of our issued patents.
· Other patent applications have advanced in Europe and other
territories.
· The Chester based Test Unit is being relocated to Bridgend to be
containerised as a future project.
Financial Performance
· Revenues for the half year of £385.7k (H1 2023: nil).
· Gross Profit for period £98.2k (H1 2023: nil).
· £2.7m cash at bank at 30 June 2024 (30 June 2023: £4.9m).
The Group's revenues and gross profit for the half year ended 30 June 2024
increased compared to the previous year's figures due to the acquisition (and
consolidation) of the remaining stake in Engsolve.
Outlook
· Completion of the FTU is expected in late Q4 2024 enabling the
Company to accelerate the development of commercial applications for its
technology.
· Further innovation and product offerings are being developed.
Including a proposal to provide gasification technology into the Sustainable
Aviation Fuel ("SAF") arena.
· In order to increase awareness and drive further revenue,
Engsolve has engaged an experienced industrial sales originator to identify
new client and project opportunities.
Statement from David Hitchcock, Non-Executive Chairman of Powerhouse Energy
Group Plc
"PHE started 2024 with positive momentum, a new business strategy which played
to the Company's strengths, and a stable strong knowledgeable executive team
and board committed to growing the business.
We have a pipeline of potential opportunities that our CEO Paul Emmitt and CFO
Ben Brier are progressing in line with our commercial validation process with
a view to advancing them whilst minimising any costs incurred to Powerhouse.
Our Engsolve team have also been very active and have contributed greatly to
the Group, bringing new revenue streams into the Company whilst continuing to
provide support to PHE to deliver its strategy; fully justifying the decision
that we took last year to acquire the remaining interest in Engsolve.
The installation of the Feedstock Test Unit at the Powerhouse Technology
Centre is a huge milestone for the Company and is progressing to schedule with
the kiln and gas clean-up package already in place; and the ancillary sections
being connected at time of writing. I look forward to the Centre being fully
operational in Q4 and believe it will become a cornerstone in PHE's ability to
further advance as well as promote its technology and know-how. The Centre
will undoubtedly also help to support the Company's investments in capital
projects in Northern Ireland and the Republic of Ireland where progress has
been slower than anticipated, but which are now moving forward. We are also
very pleased with the considerable interest being expressed in PHE's offering
in south-east Asia and Australia. We were also delighted with the progress
that has been made on patent applications / resolutions, further validating
the engineering work that has been undertaken into getting the Company to this
point as we drive towards commerciality.
The second half of the year promises to be an exciting one for PHE as we look
forward to advancing the projects from our pipeline of opportunities. In
addition to this, having a fully operational technology centre will
undoubtedly help provide even greater impetus to our pipeline whilst further
innovating the services that we can provide customers.
I would like to take this opportunity to thank all our stakeholders for their
continued support and look forward to providing further updates in due
course."
For more information, contact:
For more information, contact:
Powerhouse Energy Group Plc +44 (0) 203 368 6399
Paul Emmitt, CEO
Strand Hanson Limited (Nominated & Financial Adviser) +44 (0) 207 409 3494
Ritchie Balmer / James Harris / Rob Patrick
SP Angel Corporate Finance LLP (Broker) +44 (0) 20 3470 0470
Stuart Gledhill / Adam Cowl
Tavistock (Financial PR) +44 (0) 207 920 3150
Simon Hudson / Nick Elwes / Saskia Sizen powerhouse@tavistock.co.uk (mailto:powerhouse@tavistock.co.uk)
About Powerhouse Energy Group plc
Powerhouse Energy has developed a process technology which can utilise waste
plastic, end-of-life-tyres, and other waste streams to convert them
efficiently and economically into syngas from which valuable products such as
chemical precursors, hydrogen, electricity, heat and other industrial products
may be derived. PHE's process produces low levels of safe residues and
requires a small operating footprint, making it suitable for deployment at
enterprise and community level.
PHE also incorporates Engsolve Ltd, which is a revenue generating business who
offer Engineering Services across all sectors with speciality services in the
development of new technologies and clean energy.
For more information see www.phegroup.com (http://www.phegroup.com)
Consolidated Statement of Comprehensive Income
(Unaudited) (Unaudited) (Audited)
Group Group Group
Six Months Six Months Year
Ended ended Ended
30 June 30 June 31 Dec
Note 2024 2023 2023
£ £ £
Revenue 1 385,711 - 180,959
Cost of sales (287,550) - (118,294)
Gross Profit 98,161 - 62,665
Engineering Project Costs (528,261) (368,154) (799,909)
Administrative expenses (733,981) (979,432) (1,109,150)
Acquisition costs - (31,457) (31,457)
Share of associate - 67,302 76,206
Operating loss (pre-exceptional items) (1,164,081) (1,311,741) (1,801,645)
Exceptional Items:
Fair Value Gain on Equity Investment - 282,150 270,381
Loan Reversal - 453,017 -
Operating (Loss) (post exceptional items) (1,164,081) (576,574) (1,531,264)
Net finance income/(cost) (5,358) - (6,200)
(Loss) before taxation (1,169,439) (576,574) (1,537,464)
Income tax credit/(charge) 109,817
(Loss) after taxation (1,169,439) (576,574) (1,427,647)
Total comprehensive (loss) (1,169,439) (576,574) (1,427,647)
Total comprehensive (loss) attributable to:
Owners of the Company (1,169,439) (576,574) (1,427,647)
Non-controlling interests - - -
(Loss) per share from continuing operations (pence) 3 (0.03) (0.01) (0.04)
The figures as presented are not strictly comparable with the prior year
period as the comparative figures are non-consolidated, with the Group only
coming into effect in 2023 following the acquisition of the remaining interest
in Engsolve.
The notes numbered 1 to 5 are an integral part of the half year financial
information.
Statement of Consolidated Financial Position
(Unaudited) (Unaudited) (Unaudited) (Audited)
Group Company Group Group
As at As at As at As at
30 June 30 June 30 June 31 December
Note 2024 2024 2023 2023
£ £ £ £
ASSETS
Non-current assets
Intangible fixed assets 3,115,983 2,542,401 3,155,337 3,106,865
Tangible fixed assets 1,595,074 1,170,190 456,672 1,159,636
Investments in subsidiary undertakings - 1,109,986 1 -
Investments in associated undertakings - - - -
Total non-current assets 4,711,057 4,822,577 3,612,010 4,266,501
Current Assets
Loans receivable - - - -
Stock -
Trade and other receivables 145,320 234,011 250,620 325,834
VAT Recoverable 170,565 - 333,223 -
Corporation tax 168,527 168,527 - 168,527
Cash and cash equivalents 2,729,465 2,107,936 4,897,457 4,348,887
Total current assets 3,213,877 2,510,474 5,481,300 4,843,248
Total assets 7,924,934 7,333,051 9,093,310 9,109,749
LIABILITIES
Current liabilities
Creditors: amounts falling due within one year (457,154) (919,086) (801,221) (506,258)
Total current liabilities (457,154) (919,086) (801,221) (506,258)
Total assets less current liabilities 7,467,780 6,413,965 8,292,089 8,603,491
Creditors: amounts falling due after more than one year - - - (122,475)
Net assets 7,467,780 6,413,965 8,292,089 8,481,016
EQUITY
Shares and stock 2 24,097,059 24,097,059 22,900,856 23,940,856
Share premium 60,934,261 60,934,261 61,291,710 61,220,809
Merger relief reserve - - - -
Accumulated deficit (77,563,540) (78,617,355) (75,900,477) (76,680,649)
Total surplus 7,467,780 6,413,965 8,292,089 8,481,016
The figures as presented are not strictly comparable with the prior year
period as the comparative figures are non-consolidated, with the Group only
coming into effect in 2023 following the acquisition of the remaining interest
in Engsolve.
The notes numbered 1 to 5 are an integral part of the half year financial
information.
Consolidated Statement of Cash Flows
(Unaudited) (Unaudited) (Audited)
Group Group Company
Six months Six months Year ended
Ended Ended 31
Note 30 June 30 June December
2024 2023 2023
£ £ £
Cash flows from operating activities
Operating (loss) (1,164,081) (576,574) (1,531,265)
Adjustments for:
- Share based payments - - 40,000
- Amortisation 9,340 4,810 16,997
- Depreciation 20,265 2,633 41,885
- Goodwill impairment - - (712,751)
- Loan Impairment - (453,017) -
- Share of associate - (67,302) (76,206)
- Fair Value Gain on Equity Investment - (282,150) (270,381)
- Loan Interest Charge - - -
- Tax Paid (39,785) - (58,710)
- Other none cash movements - (13,635) -
Changes in working capital:
- Decrease/(Increase) in trade and other receivables 9,950 (14,278) 646,745
- Increase/(decrease) in trade and other payables (102,711) 521,915 62,514
- Tax credits received - - 166,318
Net cash used in operations (1,267,022) (877,598) (1,674,854)
Cash flows from investing activities
Dividends received from associate - - -
Cash for investment in Engsolve - (572,896) (575,761)
Cash acquired on acquisition - 466,771 472,580
Loans advanced - - -
Purchase of intangible fixed assets (18,458) - (48,207)
Purchase of tangible fixed assets (455,702) (1,512) (671,415)
Net cash used in investing activities (474,160) (107,637) (822,803)
Cash flows from financing activities
Proceeds from issue of shares 156,203 - 1,000,000
Payments of principal under leases (29,083) - (30,153)
Net finance costs (5,360) (205) (6,200)
Net cash flows used in financing activities 121,760 (205) (963,647)
Net (decrease) in cash and cash equivalents (1,619,422) (985,440) (1,534,010)
Cash and cash equivalents at beginning of period 4,348,887 5,882,897 5,882,897
Cash and cash equivalents at end of period 2,729,465 4,897,457 4,348,887
The figures as presented are not strictly comparable with the prior year
period as the comparative figures are non-consolidated, with the Group only
coming to effect in 2023 following the acquisition of the remaining interest
in Engsolve.
The notes numbered 1 to 5 are an integral part of the half year financial
information.
Statement of Changes in Equity
Ordinary Share capital Share premium Merger relief Accumulated
£ Deferred shares account reserve deficit Total
£ £ £ £ £
Balance at 1 Jan 2023 (audited) 19,787,071 3,113,785 61,291,710 - (75,323,903) 8,868,663
Transactions with equity participants:
- Shares issued on exercise options - - - - - -
- Shares issued on exercise warrants - - - - - -
- Share issues in year - - - - - -
Share based payment - - - - - -
Share issue costs - - - - - -
Total comprehensive loss - - - - (576,574) (576,574)
Balance at 30 June 2023 (unaudited) 19,787,071 3,113,785 61,291,710 - (75,900,477) 8,292,089
Transactions with equity participants:
- Shares issued in year 1,040,000 - - - - 1,040,000
Share based payments - - (70,901) - 70,901 -
Reserve transfer - goodwill impairment - - -
Total comprehensive loss - - - - (851,073) (851,073)
Balance at 31 Dec 2023 (audited) 20,827,071 3,113,785 61,220,809 - (76,680,649) 8,481,016
Share based payment - - (286,548) - 286,548 -
Shares issued on exercise warrants 156,203 156,203
Total comprehensive (loss) - - - - (1,169,439) (1,169,439)
Balance at 30 June 2024 (unaudited) 20,983,274 3,113,785 60,934,261 - (77,563,540) 7,467,780
The following describes the nature and purpose of each reserve within equity:
Deferred shares: Represents the combined
total of all deferred shares (0.5p, 4p and 4.5p).
Share premium: Amount subscribed for
share capital in excess of nominal value.
Merger relief reserve: Amount subscribed for share capital in
excess of nominal value where merger relief applies.
Accumulated deficit: Accumulated deficit represents the
cumulative losses of the Company and all other net gains and losses and
transactions with shareholders not recognised elsewhere.
The notes numbered 1 to 5 are an integral part of the half year financial
information.
Notes (forming part of the half year Group financial information)
1. Summary of significant accounting policies
The following accounting policies have been applied consistently in dealing
with items which are considered material in relation to the financial
information.
1.1. Basis of preparation
This half year consolidated financial information is for the six months ended
30 June 2024 and has been prepared in accordance with International Accounting
Standard 34 "Interim Financial Statements". The accounting policies applied
are consistent with International Financial Reporting Standards ("IFRS")
issued by the International Accounting Standards Board (IASB) as adopted for
use in the United Kingdom and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS (except as otherwise stated). The
accounting policies and methods of computation used in the half year financial
information are consistent with those of the previous financial year and
corresponding half year reporting period (save that, as mentioned above, prior
year comparative figures are non-consolidated, with the Group only coming to
effect in 2023 following the acquisition of the remaining interest in
Engsolve) and with those expected to be applied for the year ending 31
December 2023.
The Group does not consider any new and amended standards that became
applicable for the current reporting period to have any impact on the Groups
results.
The unaudited results for period ended 30 June 2024 do not constitute
statutory accounts within the meaning of Section 435 of the Companies Act
2006. The comparative figures for the period ended 31 December 2023 for the
Company are extracted from the audited financial statements which contained an
unqualified audit report and did not contain statements under Sections 498 to
502 of the Companies Act 2006.
This half year financial statement will be, in accordance with the AIM Rules
for Companies, available shortly on the Company's website.
1.2. Going concern
The Directors have considered all available information about future events
when considering going concern. The Directors have prepared and reviewed cash
flow forecasts for 12 months following the date of these Financial Statements.
The projections show that the Group will have sufficient funding to be able to
continue as a going concern on the basis of its cash balances as at 30 June
2024.
The half year financial statements do not include the adjustments that would
result if the Group were unable to continue as a going concern.
1.3. Functional and presentational currency
This half year financial information is presented in £ sterling which is the
Group's functional currency.
1.4. Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are
initially measured at cost and subsequently measured at cost less any
accumulated impairment losses. The investments are assessed for impairment at
each reporting date and any impairment losses or reversals of impairment
losses are recognised immediately in the profit and loss account.
A subsidiary is an entity controlled by the company. Control is the power to
govern the financial and operating policies of the entity so as to obtain
benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in
which the Company holds a long-term interest and where the company has
significant influence. The Company considers that it has significant influence
where it has the power to participate in the financial and operating decisions
of the associate.
Entities in which the Company has a long-term interest and shares control
under a contractual arrangement are classified as jointly controlled entities.
1.5. Revenue
The Group provides engineering services for the application of the DMG
technology, the intellectual property that the Group owns. Revenue from
providing services is recognised in the accounting period in which services
are rendered. For fixed-price contracts, revenue is recognised based on the
actual service provided to the end of the reporting period as a proportion of
the total services to be provided to the extent to which the customer receives
the benefits. This is determined based on the actual labour hours spent
relative to the total expected labour hours.
Where a contract includes multiple performance obligations as specified by the
work scope, the transaction price will be allocated to each performance
obligation based on the estimated expected cost-plus margin.
Estimates of revenues, costs, or extent of progress toward completion of
services are revised if circumstances change. Any resulting increases or
decreases in estimated revenues or costs are reflected in profit or loss in
the period in which the circumstances that give rise to the revision become
known by management.
In the case of fixed-price contracts, the customer pays the fixed amount based
on a payment schedule. If the services rendered by the Group exceed the
payment, a contract asset is recognised. If the payments exceed the services
rendered, a contact liability is recognised.
If a contract includes an hourly fee, revenue is recognised in the amount to
which the Group has a right to invoice.
2. SHARE CAPITAL
0.5 p Ordinary shares 0.5p Deferred 4.5 p Deferred shares 4.0 p Deferred shares
shares
Balance at 1 January 2024 4,165,414,135 388,496,747 17,373,523 9,737,353
Shares issued 31,240,606 - - -
Balance at 30 June 2024 4,196,654,741 388,496,747 17,373,523 9,737,353
The deferred shares have no voting rights and do not carry any entitlement to
attend general meetings of the Company. They carry only a right to participate
in any return of capital once an amount of £100 has been paid in respect of
each ordinary share. The Company is authorised at any time to effect a
transfer of the deferred shares without reference to the holders thereof and
for no consideration.
3. Loss per share
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December
2023 2023 2023
£ £ £
Total comprehensive (loss) (1,169,439) (576,574) (1,427,648)
Weighted average number of shares 4,168,693,536 3,957,414,135 4,025,227,834
Basic loss per share in pence (0.03) (0.01) (0.04)
Diluted loss per share in pence (0.03) (0.01) (0.04)
4. SHARE BASED PAYMENTS
The expense recognised for share-based payments during the year is shown in
the following table:
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December
2024 2023 2023
£ £ £
Share based payment charge/(credit) recognised in Income Statement
Expense arising from equity-settled share-based payment transactions:
- Share options for Directors and employees - - -
- Shares issued for third party services - - 40,000
Total share-based payment in Income Statement - - 40,000
Share based payment charge recognised in Share Premium
- Warrants for third party services 155,091 - 78,735
- Warrants lapsed in Jan 24 (419,138) - (7,834)
Total share-based payment in Share Premium Account (264,047) - 70,901
Total share-based payment charges/(credits) recognised - - 110,901
Other share-based payment movements
Exercise of options by Directors and employees - - -
Exercise of warrants for third party services - - -
Share Options Lapsed in April 24 (22,500)
Total share-based payment (22,500) - -
The were no liabilities recognised in relation to share based payment
transactions.
5. EVENTS AFTER THE REPORTING PERIOD
On 7 August 2024 the Company announced it had appointed SP Angel Corporate
Finance LLP to act as sole Broker to the Company.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR LPMLTMTBBBAIRecent news on Powerhouse Energy
See all newsREG - Powerhouse Energy Gp - Director’s Dealing
AnnouncementREG - AIM - AIM Notice - 28/03/2025
AnnouncementREG - Powerhouse Energy Gp - Result of Retail Offering and TVR
AnnouncementREG - Powerhouse Energy Gp - £1.25m Placing, Options Grant, Retail Offer & TVR
AnnouncementREG - Powerhouse Energy Gp - Retail Offer
Announcement