Powerhouse Energy Group PLC (AIM:PHE) said its first-half results showed the year started with positive momentum off the back of a new business strategy that plays to the company's strengths.
The company, which focuses on converting non-recyclable waste into low-carbon energy, has refined its business strategy to emphasize licensing fees, royalties, and engineering services revenue, with David Hitchcock appointed as chairman to lead the new direction.
Events in the half included the installation of a new kiln and gas clean-up systems as part of its Feedstock Testing Unit at its Brackla Technology Centre, a five-year framework agreement with Australia's National Hydrogen, and the progress on the Ballymena project in Northern Ireland as lease terms were agreed and legal documentation underway.
Additionally, pre-permit work in Ireland is advancing through Powerhouse's joint venture with Hydrogen Utopia, with Powerhouse also exploring opportunities in Thailand with Altec Energy and Engsolve, the company's engineering consulting division, now fully integrated into the group.
The Protos Plastics Park project is a low priority, though Powerhouse retains an option on a site.
Hitchcock said: "We have a pipeline of potential opportunities that our CEO Paul Emmitt and CFO Ben Brier are progressing in line with our commercial validation process with a view to advancing them whilst minimising any costs incurred to Powerhouse."
He said the Engsolve team have brought new revenue streams into the company while continuing to provide support to PHE to deliver its strategy, meaning group revenue of £385,700 was reported for the first half of 2024, versus nil the year before.
Cash at the bank stood at £2.7 million as of June 30, following the making of a gross profit of £98,200 for the half, with a pre-tax loss of £1.2 million.
"The installation of the Feedstock Test Unit at the Powerhouse Technology Centre is a huge milestone for the company and is progressing to schedule with the kiln and gas clean-up package already in place; and the ancillary sections being connected at time of writing," Hitchcock said.
"I look forward to the Centre being fully operational in Q4 and believe it will become a cornerstone in PHE's ability to further advance as well as promote its technology and know-how."
He said the Centre also help support the capital projects across the Irish Sea, where he acknowledged that progress "has been slower than anticipated, but which are now moving forward".
"The second half of the year promises to be an exciting one for PHE as we look forward to advancing the projects from our pipeline of opportunities. In addition to this, having a fully operational technology centre will undoubtedly help provide even greater impetus to our pipeline whilst further innovating the services that we can provide customers."