Quadrise Fuels International PLC (LON:QFI) told investors that it has started to see the effects of the rapidly developing global response to the coronavirus (COVID-19) pandemic, though it noted that the only definitive impact was the delay to a pilot trial project for a client’s site in Morocco.
Posting first-half results for the 6 months to December 31, 2019, the company said that its London based staff are working remotely with “little, if any” impact on normal activities and similarly business development activities continue remotely, supported by in-country agents and representatives.
It added that it has given notice to break its London office lease on September 28, in line with contract terms, which the company says will allow more flexible, significantly less expensive and ‘better suited’ facilities.
Moreover, the company noted that these changes, including the reduction in short-term travel and others costs under review, will collectively benefit the cashflow of the business.
Mike Kirk, Quadrise Fuel's chairman commented: "Quadrise continued to progress a range of business development and project opportunities in the period, underlining the advantages of our strategy of pursuing a diversified range of projects.
“We are particularly excited by the progress made in Morocco where we have an agreement to undertake a pilot trial which could lead to paid-for engineering studies, with commercial revenues expected to follow the successful conclusion of these trials.
“We have already taken action to mitigate the impact of the Covid-19 restrictions imposed by the client and we and the client look forward to commencing the on-site activities as soon as it is safe for us to do so.”
He added: “We have also responded promptly to reduce our costs in the light of the potential impact of the Covid-19 pandemic on the business, including giving notice to break the lease at our current London offices to seek much more flexible and cost-effective options that meet our business needs.”
The firm, which has innovative technology for processing petroleum-based fuels, in its financial results for the six months ended 31 December reported a £3.1mln loss – including £700,000 of production and development costs, and £1.1mln of admin expenses, plus a £900,000 warrant charge.
It had £3.8mln of cash reserves at the end of December. The company said that it expects to have enough cash to pursue its business development and project activities until the end of 2020, whilst the expected travel savings arising from the coronavirus response leaves the company “very confident” that it would be able to extend that period up to the end of the first quarter of 2021.