EQTEC PLC – Interim Results

EQTEC PLC – Interim Results

EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects today announces its unaudited interim results for the six months ended 30 June 2019.

 

Operational Highlights

·        Business Strategy updated and refined to focus on three key verticals

1.       Recovery of clean energy from biomass

2.       Industry specific elimination of waste streams

3.       Elimination of waste streams

·       Conditional MOU signed with COBRA Instalaciones Y Servicios and Scott Bros. Enterprises Limited to jointly develop the proposed 25MW Billingham Energy waste gasification and power plant

·      Framework agreement signed with Phoenix Biomass Energy Inc. (“Phoenix”) to jointly develop biomass gasification power projects in the US, with five projects already identified, including North Fork and NAPA

·        Agreement with Phoenix to acquire a 19.99% ownership of North Fork Community Power LLC (“NFCP”) for the development of a 2MW biomass project in North Fork, California for a consideration of US$2.5m to be satisfied by the supply of certain items of the existing equipment currently held at EQTEC’s Newry site

 

Financial Highlights

·        Revenues of €1.56m (HY 2018: €0.55m)

·        Loss for the period of €1.96m (HY 2018 Loss: €1.87m)

·        Debt restructuring and placing announced in June 2019

–  Debt for equity swap for, in aggregate, approximately £2.70m of existing debt, resulting in a reduction of approximately 60% in the Group’s debt obligations

–  Raised £0.75m with new and existing shareholders

–  Implementation of a cost reduction programme to reduce cash costs through to July 2020

·        Net current assets at period end €0.53m (31 December 2018: net current liabilities of €2.65m)

·        Net assets at period end €15.80m (31 December 2018: €11.87m)

 

Post 30 June 2019 highlights

·        David Palumbo appointed to the Board in August 2019 and appointed as CEO in September 2019

·        Dr Yoel Aleman appointed to the Board as Chief Technical Director in August 2019

·        Cash cost reduction initiatives, including certain cash salary reductions for Directors and senior managers of the Company, currently being implemented

·        Equipment Sale and Services Contract with NFCP signed, with a sales value of €2.2m to EQTEC, payable in stages according to a schedule of certain agreed milestones, with the first payment being €880,000 on NFCP’s financial close

·        NAPA Project SPV to be relocated to an adjacent site to accommodate a larger 2MW capacity power plant, with planning having already been resubmitted in July 2019.  Planning permits are expected to be in place in Q1 2020 and construction and installation is intended to start immediately after receipt

·        SI Capital appointed as sole broker

 

The Chairman’s Statement and the unaudited interim results for the six months ended 30 June 2019, which are contained below and form part of this announcement, include further important information and disclosures.  The announcement should be read in its entirety.

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