TIDMPPS
RNS Number : 4416W
Proton Motor Power Systems PLC
18 August 2020
Proton Motor Power Systems plc
("Proton Motor" or the "Company")
Unaudited Interim Results for the six months to 30 June 2020
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 unaudited
interim results for the six months ended 30 June 2020.
The highlights of the first half of 2020 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 0923
Manfred Limbrunner, Director
Sales and Marketing www.protonpowersystems.com
investor-relations@proton-motor.de
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,
fuel cell and 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 solution 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, SPower also offers solutions for Solar Systems as well as a
new product line for Solar Energy Storage.
Proton Motor Fuel Cells GmbH is a wholly owned subsidiary of
Proton Motor 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 2020.
Overview:
Proton Motor Power Systems plc (formerly Proton Power Systems
plc) has made further progress this year in proving its technology,
building on its strategic co-operations and sales pipeline. We have
strengthened our organisation to be able to deliver complete power
supply solutions. Inspite of the COVID-19 backdrop a further
strengthening of industry and consumer demand for alternative
sources of energy continues to be evident in the period under
review. Proton Motor's technology offer continues to mature to
remain aligned with this growing demand and supports the continuing
commercialisation process of the group. This is evidenced by the
record order intake in Q1 2020; the potential sales order and
production pipeline is strong as at the date of this report.
Highlights and Financial Results 1HY 2020:
-- In Q1 2020 Proton Power achieved a record quarterly order
intake of GBP5.8m. Order intake in 2020 to the date of this report
amounts to GBP6.5m [including the recently announced first order
recently received from Shell New Energies]. At the date of this
report this results in a production backlog at sales value
amounting to GBP6.4m. This backlog will result in deliveries of
varying configurations of fuel cell systems to customers both in
2020 and 2021.
-- 80% of order intake in 2020 to the date of this report is
derived from the stationary segment with other orders being spread
across the mobile, maritime and rail segments.
-- During the first half of 2020, we also received orders from
E-Trucks Europe for refuse collection trucks and from Vonovia SE
for stationary systems and we entered into a framework agreement
with APEX Energy Teterow GmbH for ten containerised 100kW fuel cell
systems.
-- Having implemented from the onset all recommended protective
measures at its factory in Puchheim, to date Proton has not been
affected by COVID-19 as there has not been a single case 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 experienced to date.
-- Sales in the first half of 2020 at GBP1,101k, when compared
to the first half 2019 sales figure of GBP269k, have seen a
substantial annual increase of 309%. Sales performance included
deliveries to the stationary, mobile and maritime segments.
-- Sales in the first half of 2020 at GBP1,101k exceed the full
year sales figure of GBP769k achieved in 2019, i.e. already an
increase of 43.1% over the full year 2019.
-- Excluding the impact of the embedded derivative together with
exchange losses, the operating loss in the first half of 2020 was
GBP2,830k vs. GBP2,750k in the first half of 2019 which is in line
with our 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 has increased during the
period to GBP4.0m vs. GBP2.9m in the first half of 2019 reflecting
the increased level of activities to deliver our sales pipeline.
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 2020 was
GBP337k vs. GBP930k at 30 June 2019.
Company history:
In the expansion, realignment and constant development of its
core technologies, Proton Motor has consistently demonstrated deep
market awareness. Proton Motor has survived in the clean tech fuel
cell technology business when many companies failed in 2008
following the financial crash. In terms of technology design,
Proton Motor's clean tech 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 these
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 designers and
manufacturers of fuel cells
Global fuel cell market:
The 2019 global fuel cells market size was valued at
approximately USD 10.48 billion, according to a study conducted by
the market research company Grand View Research. The upward trend
in fuel cell demand is foreseen to continue throughout 2020 and
beyond. Expecting a CAGR of 15.5 % during the years 2020-2027, the
market size will exceed USD 33 billion in 2027.
Source:
www.grandviewresearch.com/industry-analysis/fuel-cell-market
Increasing political commitment to hydrogen as an energy
source:
European Union (EU)
The EU originated European Clean Hydrogen Alliance (ECH2A) was
announced as part of the New Industrial Strategy for Europe, which
was launched on 8 July 2020 within the context of the hydrogen
strategy for a climate-neutral Europe .
The European Clean Hydrogen Alliance aims at an ambitious
deployment of hydrogen technologies by 2030, bringing together
renewable and low-carbon hydrogen production, demand in industry,
mobility and other sectors, and hydrogen transmission and
distribution. With the alliance, the EU wants to build its global
leadership in this domain, to support the EU's commitment to reach
carbon neutrality by 2050.
https://www.ech2a.eu/
Proton Motor has been participating in the ECH2A founding
process.
Proton Motor is already participating in the EU REVIVE project.
REVIVE stands for 'Refuse Vehicle Innovation and Validation in
Europe'. The project has been running from the beginning of 2018
and will continue for 4 years until the end of 2021. The objective
of REVIVE is to significantly advance the state of development of
fuel cell refuse trucks, by integrating fuel cell powertrains into
15 vehicles and deploying them across 8 sites in Europe. It aims to
deliver substantial technical progress by integrating fuel cell
systems from three suppliers into a mainstream DAF chassis, and
developing effective hardware and control strategies to meet highly
demanding refuse truck duty cycles.
There is also the EU JIVE project. The JIVE (Joint Initiative
for hydrogen Vehicles across Europe) project seeks to deploy 650
new zero emission fuel cell buses and associated refuelling
infrastructure across five countries. JIVE is running for six years
from January 2017 and is co-funded by a EUR32 million grant from
the FCH JU (Fuel Cells and Hydrogen Joint Undertaking) under the
European Union Horizon 2020 framework programme for research and
innovation. The project consortium comprises 22 partners from seven
countries.
Federal Republic of Germany
On 3 June 2020 Germany's coalition government presented a EUR130
billion (GBP114 billion) fiscal stimulus package worth 4 per cent
of German gross domestic product over two years.
This package includes the following elements with regard to the
role of hydrogen:
-- The 'national fuel cell strategy' will support the hydrogen
industry with EUR7 billion. The goal is to make Germany a global
champion in the hydrogen industry and to export it on a global
basis. By 2030, Germany plans to install 30 Gigawatt of
electrolysers to produce green hydrogen from offshore and onshore
alternative energy. Additionally, the German government is seeking
to support the shift from fossil energy to hydrogen in all types of
industrial processes.
-- The automotive (supplier) industry will receive a bonus
programme worth EUR2 billion in the years 2020 and 2021 to invest
into R&D for new technology.
-- Subsidies worth EUR1.2 billion for public and private
operators of buses and commercial vehicles with alternative power
units.
Strategic segments:
Within the context outlined above, the following market segments
continue to be identified by Proton Power as key target
markets:
Stationary
This market includes applications for the supply of fuel cell
based back-up power, e.g. in the areas of emergency or
uninterruptible power supply, residential energy autonomy, grid
stabilisation and energy storage and BEV supercharging. Specific
applications include back up power supply for telecommunication
towers, data centre installations, and replacing diesel
generators.
Mobility
Hydrogen Battery Hybrid zero emission vehicles. This market
includes city buses, airport vehicles, trucks, off-road vehicles
and fork lift trucks.
Maritime
Building on our success with the tourist ship in Hamburg, we are
receiving further orders within the maritime sector.
Rail
Through the initial operation of the first fuel cell train by
Alstom we see increasing interest from this sector and Proton Motor
has already received and order out of the rail sector for the
development and supply of a fuel cell system with 180 kW installed
fuel cell power, which will be delivered to a customer during the
1(st) quarter of 2021.
Group activity
Due to the successful product launch of the new fourth
generation Stack Modules the group has been focusing on selling
fuel cell systems with an installed fuel cell power of 30 kW up to
180 kW for mobile, stationary, maritime and rail applications. In
addition, quotes for complete emergency power supply systems up to
25 kW electrical power output continue to be offered.
In addition, quotes for complete emergency power supply systems
up to 25 kW electrical power output continue to be offered.
With these fourth-generation fuel cell stacks and systems the
Group has set up strategic partnerships with electrical drive train
manufacturers and industrial partners. The systems can be used in
combination with a battery to a hybrid drive train for electric
driven light duty vehicles, inner city buses or industrial power
supply solutions. We also expect growing demand in the near future
from truck manufacturers for municipality maintenance vehicles.
For our partner APEX Energy Teterow GmbH (APEX), the Group has
designed a fuel cell package, integrated into a container, with an
installed fuel cell power of 180 kW. The system will be used inside
a hydrogen power plant. The hydrogen will be produced on-site via
renewable energy. The fuel cell package from Proton Motor will
convert the hydrogen into electrical energy and feed this into the
AC grid. Additionally the heat generated will be used to heat a
nearby production hall. The complete container was shipped on-site
at the beginning of May 2020. The fuel cell package consists of
five parallel fuel cell systems which are controlled by a master
controller. A Stack Module 37.5 is integrated into each fuel cell
system. Following this initial order, Proton Motor signed a
framework agreement with APEX to deliver 10 more of these fuel cell
systems in the next 2 years.
Proton Motor has commenced with the development of its next
generation, fifth, Stack Module which is now ready for volume
production, to be ready for the anticipated world-wide increase in
demand for fuel cells. Therefore the automated fuel cell
manufacturing line was installed in May 2019, with the objective of
increasing manufacturing capacity up to 215 MW fuel cell power per
year. With further investment the automated line capacity can be
uplifted to 176 GW fuel cell power per year.
Furthermore the Group has designed a multi stack system for
power demands beyond 100 kW for larger trucks, trains, ships and
larger stationary applications. The first multi stack system,
consisting of three Stack Modules 37.5, has been produced and is
currently under testing. Two of these systems will be used inside a
mobility related application and will be delivered at the beginning
of 2021.
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.
Helmut Gierse
Non-Executive Chairman
Consolidated income statement
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
Note 2020 2019 2019
GBP'000 GBP'000 GBP'000
Revenue 1,101 269 769
Cost of sales (775) (288) (1,185)
---------------- ------------ ----------------
Gross profit / (loss) 326 (19) (416)
Other operating income 28 25 267
Administrative expenses (3,185) (2,938) (7,001)
---------------- ------------ ----------------
Operating loss (2,831) (2,750) (7,150)
Finance income 2 1 3
Finance costs incl. exchange
differences (7,438) (2,078) (657)
(Loss) for the period before
embedded derivatives (10,267) (4,827) (7,804)
---------------- ------------ ----------------
Fair value (loss) on embedded
derivatives (210,919) (332,892) (183,899)
---------------- ------------ ----------------
(Loss) for the period attributable
to shareholders (221,186) (337,719) (191,703)
================ ============ ================
(Loss) / Profit per share (expressed
as pence per share)
Basic 7 (32.9) (52.3) (29.2)
Diluted 7 (32.9) (52.3) (29.2)
(Loss) / Profit per share (expressed
as pence per share) excluding
embedded derivative
Basic 7 (1.5) (0.8) (1.2)
Diluted 7 (1.5) (0.8) (1.2)
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
------------ ------------ ----------------
(Loss) / Profit for the period (221,186) (337,719) (191,703)
------------ ------------ ----------------
Other comprehensive (expense)
/ income
------------ ------------ ----------------
Items that may not be reclassified
to profit and loss
Exchange differences on translating
foreign operations (113) (10) 2
------------ ------------ ----------------
Total other comprehensive income
/ (expense) (113) (10) 2
------------ ------------ ----------------
Total comprehensive (expense)
for the year (221,299) (337,729) (191,705)
============ ============ ================
Consolidated balance sheet
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 29 55 31
Property, plant and equipment 1,451 1,274 1,406
Right-of-use assets 388 0 478
Fixed asset investments 11 7 11
------------ ------------ ----------------
1,879 1,336 1,926
Current assets
Inventories 2,580 2,096 2,408
Trade and other receivables 284 424 240
Cash and cash equivalents 337 930 1,028
------------ ------------ ----------------
3,201 3,450 3,676
------------ ------------ ----------------
Total Assets 5,080 4,786 5,602
============ ============ ================
Current Liabilities
Trade and other payables 1,859 2,407 3,049
Lease debt 106 0 188
Borrowings 865 143 837
------------ ------------ ----------------
2,830 2,550 4,074
Non-current liabilities
Borrowings 75,852 63,319 64,869
Lease debt 289 0 299
Embedded derivatives on convertible
interest 433,250 371,324 222,331
------------ ------------ ----------------
509,391 434,643 287,499
------------ ------------ ----------------
Total Liabilities 512,221 437,193 291,573
------------ ------------ ----------------
Net liabilities (507,141) (432,407) (285,971)
============ ============ ================
Equity
Capital and reserves attributable
to equity shareholders
Share capital 9,996 9,764 9,970
Share premium account 18,825 18,488 18,704
Merger reserve 15,656 15,656 15,656
Reverse acquisition reserve (13,861) (13,862) (13,861)
Share option reserve 948 949 968
Foreign translation reserve 12,887 10,390 10,437
Capital contributions 1,233 1,217 1,151
Accumulated losses (552,825) (475,010) (328,996)
------------ ------------ ----------------
Total equity (507,141) (432,407) (285,971)
============ ============ ================
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
2019 9,728 18,382 15,656 (13,861) 1,262 9,891 1,226 (136,792) (94,508)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share based
payments
credit - - - - (314) - - - (314)
Proceeds
from share
issues 36 106 - - - - - - 142
Currency - - - - - - - - -
translation
differences
Transactions
with owners 36 106 - - (314) - - - (172)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Loss for
the period - - - - - - - (337,719) (337,719)
Other
comprehensive
income:
Currency
translation
differences - - - - - 498 (9) (499) (10)
Total
comprehensive
income for
the period - - - - - 499 (9) (499) (10)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
30 June 2019 9,764 18,488 15,656 (13,861) 948 10,389 1,217 (475,009) (432,407)
======== ======== ======== ============ ======== ============ ============= ========== ==========
Balance at
1 July 2019 9,764 18,488 15,656 (13,861) 948 10,389 1,217 (475,009) (432,407)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share based
payments
credit - - - - 20 - - - 20
Proceeds
from share
issues 206 216 - - - - - - 422
Currency - - - - - - - - -
translation
differences
Transactions
with owners 206 216 - - 20 - - - 442
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Profit for
the period - - - - - - - 146,014 146,014
Other
comprehensive
income:
Currency
translation
differences - - - - - 48 (66) - (19)
Total
comprehensive
income for
the period - - - - - 48 (66) 146,013 145,994
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
31 December
2019 9,970 18,704 15,656 (13,861) 968 10,437 1,151 (328,996) (285,971)
======== ======== ======== ============ ======== ============ ============= ========== ==========
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
2020 9,970 18,704 15,656 (13,861) 968 10,436 1,151 (328,995) (285,971)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Share based
payments
credit - - - - (20) - - - (20)
Proceeds
from share
issues 26 122 - - - - - - 148
Currency - - - - - - - - -
translation
differences
Transactions
with owners 26 122 - - (20) - - - 128
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Profit for
the period - - - - - - - (221,185) (221,185)
Other
comprehensive
income:
Currency
translation
differences - - - - - 2,450 82 (2,645) (113)
Total
comprehensive
income for
the period - - - - - 2,450 82 (223,830) (221,298)
-------- -------- -------- ------------ -------- ------------ ------------- ---------- ----------
Balance at
30 June 2020 9,996 18,826 15,656 (13,861) 948 12,888 1,233 (552,826) (507,141)
======== ======== ======== ============ ======== ============ ============= ========== ==========
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
2020 2019 2019
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss) / Profit for the period (221,186) (337,719) (191,703)
------------ ------------ ----------------
Adjustments for:
Depreciation and amortisation 275 154 462
Loss on disposal of property,
plant and equipment 0 0 59
Impairment of investment 0 0 7
Interest income (2) (1) (3)
Interest expense 2,509 2,171 4,500
Share based payments (20) (313) (294)
Movement in inventories (172) (659) (971)
Movement in trade and other
receivables (44) (16) 168
Movement in trade and other
payables (1,190) 639 1,281
Movement in fair value of embedded
derivatives 210,919 332,892 183,899
Exchange rate movements 4,929 (93) (3,843)
------------ ------------ ----------------
Net cash used in operations (3,982) (2,945) (6,438)
------------ ------------ ----------------
Cash flows from investing activities
Purchase of intangible assets (8) (5) (4)
Purchase of property, plant
and equipment (120) (265) (579)
Investment in associate company 0 0 (11)
Interest received 2 1 3
------------ ------------ ----------------
Net cash used in investing
activities (127) (269) (591)
------------ ------------ ----------------
Cash flows from financing activities
Proceeds from issue of loan
instruments 3,617 3,149 6,158
Proceeds from issue of new
shares 147 142 564
New obligations of lease debt 0 0 594
Repayment of obligations under
lease debt (93) 0 (107)
Repayment of short term borrowings 0 (34) -
------------ ------------ ----------------
Net cash generated from financing
activities 3,671 3,257 7,209
------------ ------------ ----------------
Net increase in cash and cash
equivalents (438) 43 180
Effect of foreign exchange
rates (253) 46 7
Opening cash and cash equivalents 1,028 841 841
------------ ------------ ----------------
Closing cash and cash equivalents 337 930 1,028
============ ============ ================
Notes to the interim report
1. Basis of preparation
These interim 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 2019 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 2020
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 2019 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
2020 2019 2019
GBP'000 GBP'000 GBP'000
Share options 20 (313) 261
Shares 26 27 27
------------ ------------ ----------------
(46) 286 288
============ ============ ================
5. Finance costs including exchange differences
Unaudited Unaudited Audited
At 30 June At 30 June At 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Interest 2,509 2,171 4,500
Exchange (gain) on shareholder loans 0 (93) (3,843)
Exchange loss on shareholder loans 4,929 0 0
----------- ----------- ---------------
7,438 2,078 657
=========== =========== ===============
6. Taxation
Due to losses within the Group, no expenses for tax on income
were required in either the current or prior periods.
7. 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.
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.
Unaudited Unaudited Audited
At 30 At 30 At 31
June June December
2020 2019 2019
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 (221,186) (221,186) (337,719) (337,719) (191,705) (191,705)
Weighted average
number of ordinary
shares in issue
(thousands) 671,451 671,451 646,001 646,001 656,118 656,118
Effect of dilutive - - - - - -
potential ordinary
shares from
share options
and convertible
debt (thousands)
Adjusted weighted
average number
of ordinary
shares 671,451 671,451 646,001 646,001 656,118 656,118
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) (32.9) (32.9) (52.3) (52.3) (29.2) (29.2)
(Loss) per share
(pence per share)
excluding embedded
derivative (1.5) (1.5) (0.8) (0.8) (1.2) (1.2) (1.5) (1.5) (0.8) (0.8) (1.2) (1.2)
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 QVLBFBVLEBBZ
(END) Dow Jones Newswires
August 18, 2020 03:01 ET (07:01 GMT)
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