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Transport

Proton Power revenues dropped in 2015, but outlook emphasises significant new orders

Proton Power chairman Ian Peden said the group has very strong technical and financial base for the long term.

Proton Power Systems Plc (LON:PPS) shares dipped around 6% as the fuel cell group released results for 2015.

The company said sales in the twelve months to December 31 fell to £684,000, from £1.4mln in 2014, as a result of the ‘phasing’ of orders from Siemens.

Nevertheless PPS told investors there’s “clear momentum” in its business and it has seen increased enquires and the sales pipeline. Significant orders were won in the year, it added, with the pipeline for 2016 due to deliver £1.8mln of sales.

Moreover it highlighted a £1.3mln order for emergency power solutions, secured after year end and due for this year.

It is the most significant order in the company’s 21 year history, it the company expects the order will be the basis of future orders and consistent year-on-year revenues. The framework order is to be rolled out of a seven year period.

Proton Power chairman Ian Peden said the group has very strong technical and financial base for the long term.

“Hydrogen related businesses globally are currently estimated at $58 billion and this market is estimated to grow dramatically in the future,” Peden said.

“The group is ready and strategically positioned to roll out solutions to the world markets.

“For over 20 years we have focused on stationary, mobile and maritime solutions and we look to the future with great confidence."

Proton Power reported that operating losses narrowed to £4.5mln, compared to 2014’s £6.1mln loss. Total losses amounted to £9.1mln, versus a £10.1mln loss in 2014.

During 2015 the company secured €7.2mln of loan funding, and its borrowings amounted to £21.1mln at the end of 2015. Cash burn for 2015 was £4.45mln, reduced from £4.75mln in the preceding year. The company had £614,000 of cash and equivalents at December 31.

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