Proton Motor Power Systems Annual Loss Widens But Excited By Backlog

(Alliance News) - Proton Motor Power Systems PLC on Tuesday reported a sharply wider annual loss ...

Alliance News 23 June, 2020 | 12:40PM
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(Alliance News) - Proton Motor Power Systems PLC on Tuesday reported a sharply wider annual loss in 2019.

In 2019, the designer, developer and producer of fuel cells and fuel cell electric hybrid systems recorded a pretax loss of GBP191.7 million, sharply higher from a GBP29.5 million loss the year before.

Proton Motor recorded a GBP183.9 million fair value loss on embedded derivatives in 2019, sharply higher than the GBP19.9 million charge in 2018.

Revenue slipped to GBP769,000 from GBP822,000.

"Proton Motor Power Systems has made further progress this year in proving its technology, building on its strategic co-operations and sales pipeline. Further investment in our manufacturing capability has put us in a stronger strategic position to capitalise in the marketplace and to deliver financial performance," the company said.

Proton Motor continued: "We have strengthened our organisation to be able to deliver complete power supply solutions. A marked strengthening of industry and consumer demand for alternative sources of energy has been evident in the period under review. Proton Motor's technology offer is maturing to be commensurate with this demand and is in line with the continuing commercialisation process of the group."

The company said this is shown by its "substantial" order intake in the first quarter.

"The potential sales order pipeline is strong as at the date of this report, with Proton Motor submitting quotes for potential order values of a magnitude higher than that received in the first quarter of 2019," Proton added.

At the end of April, the company had order backlogs of GBP6.2 million.

Separately, it has agreed to increase the existing loan facilities with SFN Cleantech Investment Ltd and Falih Nahab by EUR3.6 million each.

The loan facility with SFN has therefore been increased to EUR20.2 million and the loan facility with Falih Nahab has been increased to EUR44.7 million.

Proton noted Nahab, through SFN, is a substantial shareholder in the company.

"The undrawn portions of the existing facilities and the additional facilities are expected to allow the company to satisfy its working capital needs until at least June 2021. However, it should be noted that the company does not currently expect to generate net free cash by that time and therefore it is likely to require additional funding," Proton added.

Shares in Proton Motor Power Systems were up 0.8% in London on Tuesday at 54.44 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Proton Motor Power Systems PLC 68.50 GBX -0.72 -

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