Proton Motor Power Systems plc (AIM: PPS), the designer, developer and producer of fuel cells and fuel cell electric hybrid systems with a zero carbon footprint, announces its audited results for the year ended 31 December 2020.
Highlights - Financial:
- Sales in 2020 of £1.893m, when compared to the 2019 sales figure of £0.769m, saw an annual increase of 146%. Sales performance included deliveries to the stationary, mobile and maritime sectors.
- Excluding the impact of the embedded derivative together with exchange losses, the operating loss in 2020 was £7.128m (2019: £7.151m) which was in line with the Company's budgeted expectations. The movement relating to the embedded derivative is a non-operating, non-cash item, required by IFRS financial reporting, which is based on gauging the potential effects of partial convertible interest on loan financing.
- Cash burn from operating activities decreased during the year to £4.7m (2019: £6.4m) despite the increased level of activities to deliver the sales pipeline. Cash flow is the Company's key financial performance target and the objective remains to achieve a positive cash flow in the shortest time possible. Current contracts are quoted with up-front payments reducing reliance on working capital as the Company continues to invest in its manufacturing capability. The cash position at 31 December 2020 was £2.739m (2019: £1.028m).
- As separately announced today, in aggregate, a further €11.9m loan facility has been agreed with SFN Cleantech Investment Ltd and Mr. Falih Nahab to ensure operational financing for the Company into 2022.
Highlights - Operational:
- In Q1 2020, Proton achieved a record quarterly order intake of £5.8m. Total order intake in 2020 amounted to £7.3m. At the date of this announcement, there is a production backlog at sales value amounting to £6.8m. This backlog will result in deliveries of varying configurations of fuel cell systems to customers both in 2021 and 2022.
- 76% of order intake in 2020 and up to the date of this announcement is derived from the stationary sector with other orders being spread across the mobile, maritime and rail sectors.
- The Company entered into a framework agreement with APEX Energy Teterow GmbH to produce ten containerised 100kW fuel cell systems. Apex is constructing Europe's largest grid connected hydrogen plant, planned to deliver more than 300,000 kg of hydrogen per year. Proton's containerised fuel cell systems will provide electricity from the stored hydrogen in future installations at industrial sites and residential complexes.
- Having implemented from the onset all recommended protective measures at its factory in Puchheim, to date Proton has not been affected by COVID-19 and there have been less than five isolated cases of COVID-19 amongst the Company staff. Whilst our staff have to maintain social distancing and other recommended measures to protect themselves against the virus, our factory in Puchheim remains fully open and our production capacity is unaffected, thus being able to focus on manufacturing and delivering the above mentioned order intake. Other effects such as material supply bottlenecks have not been significantly experienced to date.
- On 7 December 2020, the Company announced that it had received the Green Economy Mark Award from the London Stock Exchange.
Dr. Nahab, CEO of Proton, commented: "Although faced with highly challenging trading conditions in 2020, the Company has made significant progress. In the year ahead, we are focused on further progressing the maturity of the Group's technology offer, ramping up production capacity and exploiting the current potential order intake and sales pipeline.
Furthermore, it is anticipated that the significant strengthening of political commitment to hydrogen, as evident in 2020, will contribute to further accentuating the demand for hydrogen related products, such as the fuel cell."