PowerHouse Energy Group PLC (LON:PHE) is heading in the right direction after recently joining the ranks of AIM’s revenue-earning firms.
In its results statement covering the first half of the year, the waste-to-energy technology developer said the board is confident that PowerHouse’s recent engagement in paid engineering and external research and testing for customers is leading to a position where a significant proportion of the operational costs and company overhead will be covered.
At the same time, management is carefully managing expenditures and is budgeting to match expenditures against expected revenues.
Administrative expenses in the first half of the year declined to £865,189 from £1.16mln the year before, which, in the absence of any revenues during the reporting period, meant the loss before tax matched the administrative expenses numbers.
Since the end of June, PowerHouse has started its first paid engineering consultancy work. The revenue is expected to be recognised in the forthcoming accounting period.
The company is in discussions with customers in the UK and internationally to sell its DMG process with capacities of between 25 and 40 tonnes per day of non-recyclable plastic and tyre waste and to generate energy in the form of hydrogen, syngas for industrial consumption and community power.
The pipeline of UK sales opportunities has been augmented by the signature of the 10 site collaboration contract with Peel Environmental.
The pipeline of other opportunities includes waste management companies, local councils and now industrial users who want to replace the natural gas currently used in their processes with syngas (synthetic gas) generated from their waste, PowerHouse said.
Cash and cash equivalents at the end of June stood at £139,868, down from £252,628 a year earlier.