TIDMPPS
RNS Number : 0180O
Proton Power Systems PLC
30 September 2019
30 September 2019
Proton Power Systems plc
("Proton" or the "Company")
Unaudited Interim Results for the six months to 30 June 2019
Proton 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 unaudited interim results for
the six months ended 30 June 2019.
The highlights of the first half of 2019 are detailed in the
Chairman's report which is set out below.
For further information:
Proton Power Systems plc
Dr Faiz Nahab, CEO
Helmut Gierse, Chairman
Sebastian Goldner, COO/CTO
Roman Kotlarzewski, CFO Tel: +49 (0) 173 189
Manfred Limbrunner, Director Sales 0923
and Marketing
www.protonpowersystems.com
Shore Capital
Nominated adviser and broker
Antonio Bossi / David Coaten Tel: +44 (0) 20 7408
4050
www.shorecap.co.uk
About Proton Motor Fuel Cell GmbH
Proton Motor has more than 20 years of experience in Power
Solutions using CleanTech technologies such as hydrogen fuel cells
and fuel cell hybrid systems with a zero carbon footprint. Based in
Puchheim near Munich, Proton Motor offers complete fuel cell and
hybrid systems from a single source - from the development and
production through the implementation of customized solutions. The
focus of Proton Motor is on back-to-base, for example, for mobile,
marine and stationary solutions applications. The product portfolio
consists of base-fuel cell systems, standard complete systems, as
well as customized systems.
Proton Motor serves IT, Telecoms, public infrastructure and
healthcare customers in Germany, Europe and Middle East with power
supply solutions for DC and AC power demand. In addition to power
supply, Proton Motor also offers solutions for Solar Systems as
well as Solar Energy Storage.
Proton Motor Fuel Cells GmbH is wholly owned subsidiary of
Proton Power Systems plc. The Company has been quoted on the AIM
market of the London Stock Exchange since October 2006 (code:
PPS).
Chairman's report
We are pleased to report our unaudited results for the six
months ended 30 June 2019.
Proton Power has made further progress in the period with
delivery of commercial contracts in proven technology, strategic
co-operations and building our 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. We have strengthened our organisation to be able to
deliver complete power supply solutions. We add value to our
clients through our fuel cell expertise and with our system and
solution know-how.
Highlights HY1 2019:
-- The automated stack assembly machine, funded by a EU project,
which can produce annually up to 5,000 fuel cells was delivered in
Q2 2019. This will further reduce our product cost and will allow
us to meet increasing demand and bring our technology quicker to
the market.
-- In Q1 2019 Proton Power and Skoda Electric a.s. in the Czech
Republic signed a letter of intent with the objective of entering
into a cooperation to develop, sell and service fuel cell electric
buses using Proton's modular HyRange(R) systems. The first
prototype buses shall be brought into operation for European bus
operators.
-- In April 2019 Proton Power announced the agreement of a 50:50
profit sharing Cooperation Agreement with MTSA Technopower B.V. to
design, manufacture and sell large power systems based on hydrogen
fuel cell stacks, ranging between 0.5 MW and 10 MW.
-- In Q1 2019 Proton Power received a confirmed order from ebe
EUROPA in Memmingen, Germany, for 15 hydrogen powered fuel cells of
60kW of generating capacity each. The ultimate customers are four
city councils in Germany (Frankfurt am Main, Mainz, Muenster and
Wiesbaden). The total value of the order is EUR4.1 million, with
secured payment conditions including a further eight years
warranty.
-- In May 2019 Proton Power received a confirmed order for a
value of EUR630K to provide a 150kw fuel cell package. This is to
participate in a project in line with the Paris agreement to reduce
CO2 emission through the use of renewable energies for production
of hydrogen and the provision of further power through Hydrogen
Fuel cells, in order to avoid overloading the power grid.
-- Subsequent to the period end in August 2019, Proton Power
announced that it has entered into a joint venture agreement with
Schäfer Elektronik GmbH ("Schäfer Elektronik") whereby the two
companies will integrate Proton's larger industrial fuel cells with
Schäfer's power electronics, battery and a hydrogen storage systems
in one integrated plug and play power unit. This unit will provide
in excess of 1 MW of power to supply electric vehicle charging
stations and will be available either as standalone unit or as grid
connected unit, which would also be able to support the local grid
if required.
-- Financial Results: Sales were lower in the first half of 2019
at GBP269k compared to the first half 2018 sales figure of GBP506k,
which included delivery in the first half of 2018 of an additional
order from Deutsche Bahnbau in line with the cooperation agreement
signed in 2015. Excluding the impact of the embedded derivative
together with exchange losses, the operating loss in the first half
of 2019 was GBP2,750k vs. GBP2,193k in the first half of 2018 which
is in line with our budgeted expectations.
Certain elements of accrued interest on the loan financing to
the group is convertible to equity at a predetermined price per
share. According to IFRS 9 this convertible interest is regarded as
an embedded derivative, which must be valued at fair value with the
resulting valuation movement being passed through the Profit and
Loss statement. This valuation is carried out by an external
independent valuation appraiser. Due to the substantial increase in
the share price as at 30 June 2019 in comparison to 31 December
2018 the fair value charge to the Profit and Loss for the first
half of 2019 amounts to GBP 332.9m compared to the annual charge of
GBP19.9m for 2018. This charge is non-operational and does not
represent any payment obligation.
-- Due to the volume of incoming orders in the first half of
2019, the company has an order backlog at sales value of GBP5.1m,
including ongoing 8 years of warranty income.
-- Cash burn from operating activities has increased during the
period to GBP2,945k vs. GBP1,029k in the first half of 2018. Cash
flow is our key financial performance target and our objective is
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 we continue to invest in our
manufacturing capability. The cash position at 30 June 2019 was
GBP930k vs. GBP841k at 30 June 2018.
Company history:
In the expansion, realignment and constant development of its
core technologies, Proton Power has consistently demonstrated deep
market awareness. Proton Power has survived in the CleanTech Fuel
Cell technology business when many companies failed in 2008
following the financial crash. In terms of technology design,
Proton Power's CleanTech technology has always remained true to its
vision and has driven innovation forwards into the new hydrogen
world.
The Company began as Magnet Motor, starting fuel cell
development in 1994 and opening its factory in 1998. The technology
and application roadmap went from the world's first fuel cell
powered fork lift truck to a fuel cell ship. After that we
developed the triple hybrid Skoda bus in 2008. Containerised power
solutions completed the application portfolio. All those
applications are powered by our own fuel cell stacks, with a robust
design for a long lifetime. The Company established operations in
the Munich area and was one of the first German designer and
manufacturer of fuel cells. International growth is now planned by
looking for good partners with the same vision.
The ongoing "Dieselgate" situation and the COP21 targets present
the industry as a whole, but in particular the automotive industry,
with a huge challenge and fuel cells are expected to provide part
of the solution.
Global fuel cell market:
The global fuel cell market was valued at US$3.83 billion in
2015 and this is expected to reach a market size of US$8.99 billion
by 2021, with a CAGR of 15.28 % between 2015 and 2021.
Source:
www.profsharemarketresearch.com/global-fuel-cell-market-news/
The following market segments have been identified by Proton
Power as key target markets:
Stationary for businesses and people
This market includes back up power for telecoms and data centre
installations.
Mobility
Hydrogen Battery Hybrid zero emission vehicles. This market
includes city buses, airport vehicles, trucks, off-road vehicles to
fork lift trucks.
Maritime
Building on our success with the tourist ship in Hamburg, we now
plan to sell the know-how capability to partners to evolve this
market.
Rail
Through the initial operation of the first fuel cell train by
Alstom we see increasing interest from this sector.
Product status and manufacturing capacity
In 2017 the Group initiated a new development program to design
the fourth generation of fuel cell systems. This new lighter weight
and higher integration single stack modular designs cover power
ranges from 2 up to 16 kW in 2 kW steps in the lower power class
(PM200) and from 15 to 75 kW in 7.5 kW steps in the upper power
class (PM400). Both power classes are available not just for
stationary, but also for logistic, automotive, rail and maritime
applications.
With these fourth-generation fuel cell stacks and systems the
Group has set up strategic partnerships with electrical drive train
manufacturers and vehicle OEMs. The systems can be used in
combination with a battery and a hybrid drive train to power
electric driven light and heavy duty vehicles or inner city buses.
We also expect growing demand in the near future from truck
manufacturers for municipality maintenance vehicles. Additionally,
operation of our fuel cells as Range Extenders is possible. A Range
Extender, based on a hydrogen fuel cell, is used to support a
battery powered system. The benefits are a significant increase in
their range of operation, increase of payload, possibility for
multi shift operation (refilling instead of charging) support for
air-conditioning or heating devices with zero emissions. The Group
has carried out extensive testing in vehicles which proves the
benefit of range extension based on the combination of a battery
and a fuel cell system.
Also offered are multi stack systems for power demands beyond
100 kW for larger trucks, trains, ships and larger stationary
applications.
In 2017, in order to meet the worldwide increase in demand for
fuel cell systems, the Group initiated a program to ramp up
manufacturing capabilities in order to be able to produce up to
1,000 fuel cells per year. In the second step, an automated fuel
cell manufacturing line was installed in Q2 2019, to increase
manufacturing capacity further up to 5,000 fuel cells per year.
I personally thank all our customers who believe in us, our
committed employees and our shareholders who have the vision to
invest in our mission.
Consolidated income statement
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
Note 2019 2018 2018
GBP'000 GBP'000 GBP'000
Revenue 269 506 822
Cost of sales (288) (490) (906)
Gross (loss) /profit (19) 16 (84)
Other operating income 207 25 198
Administrative expenses (2,938) (2,235) (5,129)
Operating (loss) (2,750) (2,193) (5,015)
Finance income 1 1 3
Finance costs (2,078) (1,752) (4,596)
(Loss) for the period before
embedded derivatives (4,827) (3,944) (9,608)
Fair value (loss) on embedded
derivatives (332,892) (1,093) (19,891)
(Loss) for the period attributable
to shareholders (337,719) (5,036) (29,499)
(Loss) per share (expressed
as pence per share)
Basic 6 (52.30) (0.08) (4.6)
Diluted 6 (52.30) (0.08) (4.6)
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------ ------------ ----------------
(Loss) / Profit for the period (337,719) (5,036) (29,499)
------------ ------------ ----------------
Other comprehensive (expense)
/ income
------------ ------------ ----------------
Items that may not be reclassified
to profit and loss
------------ ------------ ----------------
Exchange differences on translating
foreign operations (10) 1 1
------------ ------------ ----------------
Total other comprehensive income
/ (expense) (10) 1 1
------------ ------------ ----------------
Total comprehensive (expense)
for the year (337,729) (5,035) (29,498)
------------ ------------ ----------------
Consolidated balance sheet
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------ ------------ ----------------
Assets
------------ ------------ ----------------
Non-current assets
------------ ------------ ----------------
Intangible assets 55 90 72
------------ ------------ ----------------
Property, plant and equipment 1,274 994 1,203
------------ ------------ ----------------
Fixed asset investments 7 0 7
------------ ------------ ----------------
1,336 1,084 1,282
------------------------------------- ------------ ------------ ----------------
Current assets
------------ ------------ ----------------
Inventories 2,096 1,181 1,437
------------ ------------ ----------------
Trade and other receivables 424 287 408
------------ ------------ ----------------
Cash and cash equivalents 930 769 841
------------ ------------ ----------------
3,450 2,237 2,686
------------------------------------- ------------ ------------ ----------------
Total Assets 4,786 3,321 3,968
------------ ------------ ----------------
Liabilities
------------ ------------ ----------------
Current liabilities 2,407 1,175 1,768
------------ ------------ ----------------
Borrowings 143 470 177
------------ ------------ ----------------
2,550 1,645 1,945
------------------------------------- ------------ ------------ ----------------
Non-current liabilities
------------ ------------ ----------------
Borrowings 63,319 52,042 58,098
------------ ------------ ----------------
Embedded derivatives on convertible
interest 371,324 19,633 38,432
------------ ------------ ----------------
434,643 71,675 96,530
------------------------------------- ------------ ------------ ----------------
Total Liabilities 437,193 73,320 98,475
------------ ------------ ----------------
Net liabilities (432,407) (69,999) (94,507)
------------ ------------ ----------------
Equity
------------ ------------ ----------------
Capital and reserves attributable
to equity shareholders
------------ ------------ ----------------
Share capital 9,764 9,728 9,728
------------ ------------ ----------------
Share premium account 18,488 18,382 18,362
------------ ------------ ----------------
Merger reserve 15,656 15,656 15,656
------------ ------------ ----------------
Reverse acquisition reserve (13,862) (13,862) (13,862)
------------ ------------ ----------------
Share option reserve 949 1,306 1,262
------------ ------------ ----------------
Foreign translation reserve 10,390 9,912 9,891
------------ ------------ ----------------
Capital contributions 1,217 1,208 1,226
------------ ------------ ----------------
Accumulated losses (475,009) (112,329) (136,791)
------------ ------------ ----------------
Total equity (432,407) (69,999) (94,507)
------------ ------------ ----------------
Consolidated statement of changes in equity
Share
Reverse Based Capital
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share Share Merger Acquisition Payment Translation Contribution Retained Total
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Capital Premium Reserve Reserve Reserve Reserve Reserve Earnings Equity
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
1 January
2018 9,722 18,362 15,656 (13,862) 1,635 9,345 1,208 (106,728) (64,661)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share based
payments
credit - - - - (329) - - - (329)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Proceeds
from share
issues 6 20 - - - - - - 26
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Currency - - - - - - - - -
translation
differences
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Transactions
with owners 6 26 - - (329) - - - (303)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Loss for
the period - - - - - - - (5,036) (5,036)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Other
comprehensive
income:
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Currency
translation
differences - - - - - 566 (565) 1
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Total
comprehensive
income for
the period - - - - - 566 (565) 1
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
30 June 2018 9,728 18,382 15,656 (13,862) 1,306 9,911 1,208 (112,329) (69,999)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
1 July 2018 9,728 18,382 15,656 (13,862) 1,306 9,911 1,208 (112,329) (69,999)
---------------
Share based
payments
credit - - - - (44) - - - (44)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Proceeds - - - - - - - - -
from share
issues
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Currency - - - - - - - - -
translation
differences
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Transactions
with owners - - - - (44) - - - (44)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Loss for
the period - - - - - - - (24,463) (24,463)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Other
comprehensive
income:
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Currency
translation
differences - - - - - (23) 22 - (1)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Total
comprehensive
income for
the period - - - - - (23) 22 (24,463) (24,464)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
31 December
2018 9,728 18,382 15,656 (13,862) 1,262 9,891 1,226 (136,792) (94,507)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Reverse Based Capital
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share Share Merger Acquisition Payment Translation Contribution Retained Total
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Capital Premium Reserve Reserve Reserve Reserve Reserve Earnings Equity
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
1 January
2019 9,728 18,382 15,656 (13,862) 1,262 9,891 1,226 (136,792) (94,507)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share based
payments
credit - - - - (313) - - - (313)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Proceeds
from share
issues 36 106 - - - - - - 142
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Currency - - - - - - - - -
translation
differences
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Transactions
with owners 36 106 - - (313) - - - (172)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Profit for
the period - - - - - - - (337,719) (337,719)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Other
comprehensive
income:
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Currency
translation
differences - - - - - 499 (9) (498) (10)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Total
comprehensive
income for
the period - - - - - 499 (9) (498) (10)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
30 June 2019 9,764 18,488 15,656 (13,862) 949 10,390 1,217 (475,009) (432,407)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share premium account
Costs directly associated with the issue of the new shares have
been set off against the premium generated on issue of new
shares.
Merger reserve
The merger reserve of GBP15,656,000 arose as a result of the
acquisition of Proton Motor Fuel Cell GmbH during 2006. The merger
reserve represents the difference between the nominal value of the
share capital issued by the Company and their fair value at 31
October 2006, the date of the acquisition.
Reverse acquisition reserve
The reverse acquisition reserve arose as a result of the method
of accounting for the acquisition of Proton Motor Fuel Cell GmbH by
the Company. In accordance with IFRS 3 the acquisition has been
accounted for as a reverse acquisition.
Share option reserve
The Group operates an equity settled share-based compensation
scheme. The fair value of the employee services received for the
grant of the options is recognised as an expense. The total amount
to be expensed over the vesting period is determined by reference
fair value of the options granted. At each balance sheet date the
Company revises its estimate of the number of options that are
expected to vest. The original expense and revisions of the
original estimates are reflected in the income statement with a
corresponding adjustment to equity. The share option reserve
represents the balance of that equity.
Consolidated statement of cash flows
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------ ------------ ----------------
Cash flows from operating activities
------------ ------------ ----------------
(Loss) / Profit for the period (337,719) (5,036) (29,499)
------------ ------------ ----------------
Adjustments for:
------------ ------------ ----------------
Depreciation and amortisation 154 117 249
------------ ------------ ----------------
Interest income (1) (1) (3)
------------ ------------ ----------------
Interest expense 2,171 1,841 3,883
------------ ------------ ----------------
Share based payments (313) (303) (373)
------------ ------------ ----------------
Movement in inventories (659) (267) (523)
------------ ------------ ----------------
Movement in trade and other
receivables (16) 504 6
------------ ------------ ----------------
Movement in trade and other
payables 639 1,112 (145)
------------ ------------ ----------------
Movement in fair value of embedded
derivatives 332,892 1,093 19,891
------------ ------------ ----------------
Exchange rate movements (93) (89) 713
------------ ------------ ----------------
Net cash used in operations (2,945) (1,026) (5,801)
------------ ------------ ----------------
Cash flows from investing activities
------------ ------------ ----------------
Purchase of intangible assets (5) (26) (29)
------------ ------------ ----------------
Purchase of property, plant
and equipment (265) (42) (343)
------------ ------------ ----------------
Interest received 1 1 3
------------ ------------ ----------------
Net cash used in investing
activities (269) (67) (376)
------------ ------------ ----------------
Cash flows from financing activities
------------ ------------ ----------------
Proceeds from issue of loan
instruments 3,149 3,054 6,257
------------ ------------ ----------------
Proceeds from issue of new
shares 142 26 26
------------ ------------ ----------------
Repayment of short term borrowings (34) 0 (49)
------------ ------------ ----------------
Net cash generated from financing
activities 3,257 3,080 6,234
------------ ------------ ----------------
Net increase in cash and cash
equivalents 43 1,983 57
------------ ------------ ----------------
Effect of foreign exchange
rates 46 (2,014) (11)
------------ ------------ ----------------
Opening cash and cash equivalents 841 795 795
------------ ------------ ----------------
Closing cash and cash equivalents 930 769 841
------------ ------------ ----------------
Notes to the interim report
1. Basis of preparation
The 31 December 2018 consolidated financial statements of Proton
Power Systems plc were prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) as adopted by the European Union
and with those parts of the Companies Act 2006 applicable to those
companies under IFRS. They were also prepared under the historical
cost convention and in accordance with IFRS interpretations
(IFRICS) except for embedded derivatives which are carried at fair
value through the income statement and on the basis that the Group
continues to be a going concern. The condensed consolidated interim
financial statements have been prepared in accordance with the
accounting policies adopted in the 31 December 2018 statutory
audited financial statements. No new accounting standards have been
adopted by the group since preparing its last annual report.
The Group has chosen not to adopt IAS 34 (Interim Financial
Statements) in preparing these financial statements therefore the
interim financial information is not in full compliance with
IFRS.
The financial information for the half year ended 30 June 2019
set out in this interim report is unaudited and does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The Group's audited statutory financial statements for the
year ended 31 December 2018 have been filed with the Registrar of
Companies. The independent auditor's report on those financial
statements was unqualified and did not contain statements under
Section 498(2) or (3) of the Companies Act 2006.
Until such time as the Group achieves operational cash inflows
through becoming a volume producer of its products to a receptive
market it will remain dependent on its ability to raise cash to
fund its operations from existing and potential shareholders and
the debt market.
In preparing the consolidated financial information, Proton
Motor Fuel Cell GmbH has been deemed to be the acquirer and the
Company, the legal parent, has been deemed to be the acquiree.
Under IFRS 3 "Business Combinations", the acquisition of Proton
Motor Fuel Cell GmbH by the Company has been accounted for as a
reverse acquisition and the consolidated IFRS financial information
of the Company is therefore a continuation of the financial
information of Proton Motor Fuel Cell GmbH.
Goodwill arising on consolidation represents the excess of the
cost of acquisition over the Group's interest in the fair value of
the identifiable assets and liabilities of a subsidiary, associate
or jointly controlled entity at the date of acquisition. The cost
of an acquisition is measured as the fair value of the assets
given, equity instruments issued and liabilities incurred or
assumed at the date of exchange. Goodwill is initially recognised
as an asset at cost and is subsequently measured at cost less any
accumulated impairment losses. Goodwill is reviewed for impairment
at least annually, or more frequently where circumstances suggest
an impairment may have occurred. Any impairment is recognised
immediately in income statement and is not subsequently
reversed.
On disposal of a subsidiary, the attributable amount of goodwill
is included in the determination of the profit or loss on
disposal.
2. Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom
equal the related actual results. Estimates and judgements are
continually evaluated and are based on historical experience and
other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial period are discussed below.
Recognition of development costs
Self developed intangible assets are recognised where the Group
can estimate that it is probable that future economic benefits will
flow to the entity.
Impairment of goodwill
The carrying value of goodwill must be assessed for impairment
annually, or more frequently if there are indications that goodwill
might be impaired. This requires an estimation of the value in use
of the cash generating units to which goodwill is allocated. Value
in use is dependent on estimations of future cash flows from the
cash generating unit and the use of an appropriate discount rate to
discount those cash flows to their present value.
Classification and fair value of financial instruments
The Group uses judgement to determine the classification of
certain financial instruments, in particular convertible loans
advanced during the year. Judgement is applied to determine whether
the instrument is a debt, equity or compound instrument and whether
any embedded derivatives exist within the contracts.
Judgements have been made regarding whether the conversion
feature meets the "fixed for fixed" test in each instrument. In the
case of each instrument it is deemed it is not met on the basis
that the loan is in Euros and shares are in Sterling.
The Group uses valuation techniques to measure the fair value of
these financial instruments. In applying these valuation
techniques, management use estimates and assumptions that are, as
far as possible, consistent with observable market data. Where
applicable market data is not observable, management uses its best
estimate about the assumptions that market participants would make.
These estimates may vary from the actual prices that would be
achieved in an arm's length transaction at the reporting date.
3. Segmental information
An operating segment is a group of assets and operations engaged
in providing products or services that are subject to risks and
returns that are different from those of other operating segments
for which discreet financial information is available and is
regularly reviewed by the Chief Operating Decision Maker
("CODM").
Based on an analysis of risks and returns, the Directors
consider that the Group has only one identifiable operating
segment, green energy.
All non-current assets are located in Germany.
4. Share based payments
The Group has incurred an expense in respect of share options
and shares issued to directors as follows:
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------ ------------ ----------------
Share options (313) (329) (373)
------------ ------------ ----------------
Shares 27 26 26
------------ ------------ ----------------
(286) (303) (347)
------------ ------------ ----------------
5. Taxation
Due to losses within the Group, no expenses for tax on income
were required in either the current or prior periods.
6. Profit / (Loss) per share
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period.
Unaudited Unaudited Audited
At 30 At 30 At 31
June June December
2018 2017 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- ----------- ----------- ----------- ----------- -----------
Basic Diluted Basic Diluted Basic Diluted
----------- ----------- ----------- ----------- ----------- -----------
(Loss) / Profit
attributable
to equity holders
of the company (337,719) (337,719) (5,036) (5,036) (29,499) (29,499)
----------- ----------- ----------- ----------- ----------- -----------
Weighted average
number of ordinary
shares in issue
(thousands) 646,001 646,001 644,378 644,378 644,378 644,378
----------- ----------- ----------- ----------- ----------- -----------
Effect of dilutive - - - - - -
potential ordinary
shares from
share options
and convertible
debt (thousands)
----------- ----------- ----------- ----------- ----------- -----------
Adjusted weighted
average number
of ordinary
shares 644,378 644,378 644,378 644,378 643,975 643,975
----------- ----------- ----------- ----------- ----------- -----------
Pence Pence Pence Pence Pence Pence
per share per share per share per share per share per share
----------- ----------- ----------- ----------- ----------- -----------
(Loss) / Profit
per share (pence
per share) (52.3) (52.3) (0.8) (0.8) (2.1) (2.1)
----------- ----------- ----------- ----------- ----------- -----------
Diluted loss per share is calculated by adjusting the weighted
average number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares. The Company has one
category of dilutive potential ordinary shares, share options;
however these have not been included in the calculation of loss per
share because they are anti-dilutive for these periods.
The adjustment to the weighted average number of shares used in
the calculation of diluted loss per share reflects share options in
issue where the exercise price exceeds the average market price of
shares in the period.
No interim dividend has been proposed or paid in relation to the
current or prior interim period.
A copy of the interim report is available from the Company's
website at www.protonpowersystems.com
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 or visit www.rns.com.
END
IR BSGDCIUDBGCR
(END) Dow Jones Newswires
September 30, 2019 02:00 ET (06:00 GMT)
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