TIDMPPS
RNS Number : 2235D
Proton Motor Power Systems PLC
20 June 2023
20 June 2023
Proton Motor Power Systems plc
("Proton", the "Company" or the "Group")
Final Results
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 audited results
for the year ended 31 December 2022 (the "Financial Year").
Chairman's statement
Proton Motor Power Systems plc ("Proton Motor") has made further
progress this year in proving its technology, building up capacity
and sales pipeline. We have strengthened our organisation to be
able to deliver complete power supply solutions. Whilst industry
and consumer demand for alternative sources of energy continues,
the period under review was impacted by the effects of the Russian
invasion of Ukraine. Proton Motor's technology offer continues to
mature to remain aligned with this growing demand and supports the
continuing commercialisation process of the group.
Highlights
-- Total order intake in 2022 of GBP2,653k (2021: GBP2,800k),
having started the year with five new orders in January - February
2022, we saw a quieter summer period as a result of the Ukraine
invasion.
-- At the year end the production backlog was GBP2,950k (2021:
GBP2,514k). Fulfilment of this backlog will result in deliveries of
varying configurations of fuel cell systems and also service
maintenance charges to customers both in 2023 and 2024.
-- 59% of order intake in 2022 (2021: 49%) was derived from the
stationary segment, with other orders primarily from the mobile
segment. Notable orders announced throughout the year included:
o further order from E-Trucks Europe for nine HyRange 43
hydrogen fuel cell systems, together with the corresponding
maintenance agreement; and
o a significant order from GKN Hydrogen for 15 S8 stationary
fuel cell systems.
-- Sales in 2022 were GBP2,088k (2021: GBP2,771k), representing an annual change of -25%.
-- The operating loss in 2022 was GBP10,542k vs. GBP9,121k in
2021 (excluding the effect of embedded derivative in 2021). The
increased loss resulted principally from further investment in the
technical development area, in staff and infrastructure.
-- Cash burn from operating activities has increased during the
period from GBP8,726k in 2021 to GBP9,207k, in-line with increased
investment in staff and technology development and in preparation
for our move to new premises. Cash flow is the Group's key
financial performance target and our objective is to achieve
positive cash flow in the shortest timeframe 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 as at 31 December 2022 was GBP2,579k
(31 December 2021: GBP2,152k).
-- A fifteen-year lease agreement has been signed for modern
premises which will permit enhanced and efficient production
throughflows and provide space to substantially expand the Group's
manufacturing, testing and development capacity. The new premises
comprises over 13,500 square metres of useable space, of which over
10,500 square metres can be dedicated to production, testing and
development with the remainder of the space being devoted to office
usage. This represents a seven fold increase in the amount of space
available for production when compared to the Company's current
premises.
-- In 2022, Proton's fuel cell system HyRange(R) won the Prize
for Energy 2022 from the federal state of Hesse.
Post year end
-- Order intake for the 5 months ended May 2023: GBP2,552k (5
months ended May 2022: GBP1,517k).
-- At the end of May 2023, the production backlog had a sales
value of GBP4,317k (May 2022: GBP3,200k). The fulfilment of this
backlog will result in deliveries of varying configurations of fuel
cell systems and also service maintenance charges to customers both
in 2023 and 2024.
-- Following the year end, existing loan facilities have been
increased by a further EUR14,500k to ensure operational and
investment financing into 2024 with a view to accelerating the
investment programme in the face of increasing demand.
Outlook
In the year ahead we are focused on substantially expanding
production and development capacity in order to match increasing
market demand.
The Board would like to thank all our customers who believe in
us, our team of committed employees and our shareholders who have
the vision to invest in our mission.
Dr. Nahab, CEO of Proton, commented: "In the year ahead, we will
be focused particularly on ramping up production capacity in the
new premises and exploiting the current potential order intake and
sales and production pipeline.
Posting of accounts and notice of AGM
Notice of the Company's annual general meeting, to be held on 30
June 2023 at 9.30 a.m. BST/10.30 a.m. CET at Proton Motor Fuel Cell
GmbH, 7, Benz Street, 82178 Puchheim, Germany, has been sent to
shareholders. The Company's audited annual report for the year
ended 31 December 2022 will be posted to shareholders shortly and a
downloadable version of the annual report and AGM notice will be
available on the Company's website,
www.protonmotor-powersystems.com .
For further information:
Proton Motor Power Systems
Plc
Dr Faiz Nahab, CEO
Helmut Gierse, Chairman
Roman Kotlarzewski, CFO +49 (0) 173 189 0923
Antonio Bossi, Non-Executive
Director
Investor relations: www.protonpowersystems.com
investor-relations@proton-motor.de
Allenby Capital Limited
Nominated Adviser & Broker +44 (0) 20 3328 5656
James Reeve / Vivek Bhardwaj
Celicourt
Communications
+44
(0)
20
PR 8434
Adviser 264
Mark
Antelme
/
Philip
Dennis
Strategic report
Business review
Proton Motor Power Systems plc and subsidiaries' ("the Group's")
principal activity is the development of hydrogen fuel cells and
fuel cell hybrid systems through its German subsidiary Proton Motor
Fuel Cell GmbH ("PM").
A fuel cell is a device that converts the chemical energy of a
fuel and an oxidant into electricity, with only warm water as a by-
product. In principle, it functions like a combustion engine, but
without any harmful emissions and does not require recharging as
long as an ongoing fuel source, such as hydrogen, is available. It
also emits heat which can be used for example to support heating of
passenger buses or buildings. This increases the system efficiency
significantly.
Fuel cell engines are widely regarded as a potential alternative
to internal combustion engines, power from fossil fuels and battery
technology. Fuel cell engines produce no noxious gases and pure
hydrogen fuel cells produce no harmful emissions such as carbon
dioxide. There is a number of types of fuel cell, classified by the
type of electrolyte used, including alkali, molten carbonate,
proton exchange membrane ("PEM"), phosphoric acid, and solid oxide.
Proton Motor has selected a PEM-based fuel cell as the Directors
believe that, based on the PEM's start/stop capability, dynamic
operation and life time, it is the only technology able to meet the
overall criteria which the Group has specified for its intended
commercial applications.
Proton Motor Power Systems plc ("Proton Motor") has made further
progress this year in proving its technology, building up capacity
and its sales pipeline. The Group sees a strong trend in the market
for a transition from pure battery-driven vehicles to hybrid
systems (fuel cells and batteries), particularly for larger
vehicles such as buses and trucks. The Group has significant
know-how in fuel cell stacks and hybridisation. Over the years,
different applications provide good examples of Proton Motor's in
depth know-how. These include: the Deutsche Bahn back-up power
solutions; the containerised 100kw power solution for the renewable
energy campus at APEX; the fuel cell based power genset
HyShelter(R) 240 for Shell Hydrogen; the HyRail fuel cell system
for a rail milling machine for the Austrian company Linsinger; a
TriHyBus in Czech Republic; the HyRange(R) 43 fuel cell system for
garbage collecting trucks; and a number of different maritime
projects, including the ZEUS project with Fincantieri.
The Group also continues to see an increase in the potential
order sizes from the market. To be prepared for this, Proton Motor
will be expanding its production capacity to several thousand
stacks, fuel cell systems and turnkey solution per year. To
facilitate this, Proton has signed a lease agreement for an
additional production site, near to its headquarters in Puchheim.
Production at the new facility is expected to commence in 2024.
The Group has always recognised the commercial importance and
value of protecting its intellectual property ("IP") and,
therefore, the need to protect it wherever possible by way of
patents and trademarks. The Group's key IP portfolio comprises a
mixture of granted patents, patent applications, trademarks,
confidential information and know-how.
The Group undertakes comprehensive business planning to define
long-term strategic objectives and goals. Annual budgets and
operational plans are prepared utilising financial and
non-financial Key Performance Indicators ("KPIs"). Business
performance is measured by KPIs which include monitoring of actual
against budget and rolling forecasts, and R&D project status.
These are reported to the Board on a monthly basis. It is difficult
to disclose non-financial key performance indicators which are not
commercially sensitive, such as the number of fuel cells produced
and the fuel cell production cost per kW of output.
The Company began as Magnet Motor, opening its factory in 1980.
The technology and application roadmap went from the world's first
triple hybrid forklift truck to a fuel cell ship. After that PM
developed the triple hybrid Skoda bus in 2008. Containerised power
solutions completed the application portfolio. All those
applications are powered via our own fuel cell stacks, with a
robust design for a long lifetime. The Company established
operations close to Munich area and was one of the first German
designers and manufacturers of fuel cells.
View to the future
The world is committed to protecting the environment. Cities and
governments, pushed by the European Commission, must reduce
inner-city pollution drastically. Society and economy have to
switch to renewable energy sources such as wind and solar. These
energy sources are only available on a fluctuating basis and
therefore the need for a long time storage solution is needed, and
hydrogen is the only possibility. In this regard the fuel cells
will ramp up as the ideal consumers for emission free power and
energy supply. China fights against smog in its big cities. After
Dieselgate in the US and Europe, electric vehicles with batteries
are on the move. All this is generating a market for clean
transport and energy. Based on that development, the world market
for fuel cell products and solutions is more active than ever.
Beside pure battery solutions, hydrogen fuel cells are in focus.
Corporations such as Toyota, Hyundai, and Daimler are pushing the
technology forward. Fuel cells provide benefits such as fast
refuelling and long range of operation. Hydrogen is reproducible
and can make use of surplus energy from wind and solar power.
Europe has put major funding programmes in place to set up a
hydrogen infrastructure. The same is now happening in Japan, Korea
and China. The Chinese government is fully committed to fuel cell
technology with major regulatory and funding support.
Proton Motor has profound experience in applications in heavy
duty vehicles such as buses and trucks, , stationary power
solutions, ships, rail machines and material handling applications.
With just over 100 staff members it is relatively small but
regarding IP and experience a powerful company. Proton Motor has
developed and continues to develop its own fuel cell stacks.
Systems are designed from first simulation, prototype up to final
solution for volume manufacturing. Proton Motor is cooperating with
German and European based companies in the field of fuel cell
technology.
Market drivers
The Board views that growth in the fuel cell market will be
determined by the following factors:
-- The ongoing depletion of fossil fuel reserves;
-- United Nations Framework Convention on Climate Change
("UNFCCC") COP legalisation on climate change;
-- Strengthening competitiveness on cleantech technology in
Europe and making Europe more independent from Asia
-- Current and future air quality regulation;
-- Growing industrial and consumer demand for alternative sources of energy;
-- The potential long term competitiveness of the auto and transportation industries;
-- Energy security concerns;
-- Limitations of purely battery powered propulsion systems;
-- Renewable energy storage systems industrial buildings and private residences;
-- Discussions regarding hydrogen as an energy storage for green energy (power to gas);
-- A growing global demand for transportation;
-- Increasingly urgent demands for healthy breathable air in
urban centres and for action to mitigate the adverse aspects of
climate change;
-- The growing availability and the compelling economics of cleaner fuels; and
-- Increasing political commitment to hydrogen on an EU, national and regional level.
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. 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 engines 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 139
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
Germany is a prime market for the Proton Group. On 3 June 2020
Germany's coalition government presented a EUR130 billion (GBP114
billion) fiscal stimulus package 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.
United Kingdom
-- UK (November 2020): 5GW of low carbon H2 production by 2030
& GBP240m in to a Net Zero Hydrogen Fund (part of the UK
government's 10-point plan for a Green Industrial Revolution).
Identification of Target Market segments
According to a study conducted by the market research company
Global Market Insights the 2021 global fuel cells market size was
valued at approximately USD 3.0 billion, The upwards trend in fuel
cell demand is foreseen to continue. Expecting a CAGR of 10.1 %
during the years 2022-2030, the total market size will exceed USD
8.6 billion in 2030 ( Fuel Cell Market Size | Industry Share
Report, 2022-2030 (gminsights.com) ).
Proton Motor has identified the following broad market
segments:
-- Stationary applications
-- Automotive applications
-- Rail
-- Maritime
More specifically these include:
-- Solutions for renewable energy storage systems based on hydrogen;
-- grid independent or grid isolated power supply.
-- power supply systems for emergency power systems (e.g. for
critical infrastructure or datacentre)
-- heavy and light duty vehicles (e.g. trucks, city busses)
-- Ships and boats
-- rail machines and passenger trains
-- off-road applications (e.g. material handling, construction machines)
For this reason the Group has structured its operational
business units into the same four segments.
Proton Stationary
This market includes back up power for critical infrastructure,
telecoms and data centre installations. Buildings and the storage
of renewable energy in hydrogen are also becoming an interesting
growing market as evidenced by the installation of the autonomous
ecosystem in Switzerland which included one of our fuel cells.
Stationary fuel cell units can replace diesel generators in
telecoms, data centres and ecological houses. The benefits for the
end user are that fuel cell units require less maintenance than the
old polluting generators that are prone to algae build-up in the
diesel tank, which causes high maintenance cost. It is also
possible to monitor the Proton Motor system remotely, which again
saves time and manpower.
Proton Mobility/Rail
This market includes city buses, airport vehicles, trucks,
off-road vehicles and other heavy duty vehicles such as fork lift
trucks. The mobility sector sees many future challenges with
emission free to automated driving with the vehicle becoming a
power source itself. Proton Motor is participating in the EU REVIVE
project. REVIVE stands for 'Refuse Vehicle Innovation and
Validation in Europe'. The project has been started in 2018 and
will run until mid 2024. 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.
Proton Motor is also participating in the EU StasHH Project. The
consortium operating together as "StasHH" (Standard-Sized
Heavy-Duty Hydrogen) comprises 11 fuel cell module suppliers, 9
original equipment manufacturers and 5 research, test, engineering
and/or knowledge institutes and will standardise physical
dimensions, flow and digital interfaces, test protocols and safety
requirements of the fuel cell modules that can be stacked and
integrated in heavy duty applications like forklifts, buses,
trucks, trains, ships, and construction equipment. The consortium
receives EUR7.5 million funding from the European Union, through
the "Fuel Cells and Hydrogen Joint Undertaking" (FCH JU), in order
to kickstart the adoption of fuel cells in the heavy duty sector.
The total budget for the StasHH mission is EUR15.2 million.
Further mobile applications of the Proton Motor technology will
be seen in the public transport and logistics arena. Proton Motor
was the first company to develop a hybrid range extender
battery/fuel cell engine. This technology permits the usage of both
systems in an optimised way with long lifetime expectation. In the
meantime, the range extender concept is adopted by the industry
especially for heavy duty vehicle applications.
The ongoing "Dieselgate" situation and the COP targets present
the industry as a whole but in particular the automotive, industry
with a huge challenge.
Proton Maritime
Building on the success with our tourist ship in Hamburg, Proton
Motor sells the know-how capability to partners to evolve this
market. The Group delivered the first feasibility study for an
underwater vessel. Proton Motor, again, clearly demonstrates
capability within the technology.
Proton Motor is participating in a Bavarian funded project
Ma-Hy-Hy together with the main partner Torqeedo. Torqeedo, part of
the Deutz Group, is a leader in electric mobility on water offering
electric and hybrid drives from 0.5 to 100kW for commercial and
recreational use. The project has the target to develop a marine
hydrogen hybrid system building kit, which will be able to deliver
fuel cell powers between 30 and 120 kW and variable hydrogen
storage capacity. The project will complement Torqeedo's existing
Deep Blue Hybrid portfolio of marine drive systems.
Power Solutions are becoming tailor-made
CleanTech Power Solutions will become more diverse and more
flexible. That is why at Proton Motor we are making our offering of
products and services bespoke to customer requirements based on our
standard suite of CleanTech products aimed at each market sector in
a scalable modular approach. As power requirements increase our
approach allows users to simply add additional modules all
controlled from our unique software. This shift towards modular
standardisation results in accelerated deployment in our target
markets with simplification and cost reduction.
Group activities
With the successful setting up of the production lines for the
fourth generation PM400 Stack Modules, the HyModule(R) S8 systems
and the HyFrame(R) systems, the Group has been focusing on selling
fuel cell systems with an electrical power output from 8 kW up to
150 kW for mobile, stationary, maritime and rail applications. The
Group has increased production of its HyModule(R) S8 and HyFrame(R)
units, due to regular order income from several customers,
including GKN Hydrogen, Umstro and Wilo.
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 connected to a hybrid drive train for
electric driven light duty vehicles, trucks, inner city buses or
industrial power supply solutions. We also expect growing demand in
the near future from manufacturers of municipality maintenance
vehicles. Also, the fourth-generation fuel cell stacks will be used
for rail and maritime applications.
As part of the EU funded project REVIVE, in which Proton Motor
has been a member of the project consortium since 2019, a fuel cell
system for integration into a garbage truck has been designed. A
Stack Module PM400-144 is being integrated into the HyRange(R) 43
fuel cell system. The integration into the truck is being carried
out together with the vehicle manufacturer, ETrucks, from Belgium.
The first system was delivered in 2020. Since then, ETrucks have
repeatedly ordered HyRange(R) 43 fuel cell systems in two designs.
One design for mounting under the driver's cabin and the second is
for mounting on the roof. In total, ETrucks has ordered 21
HyRange(R) 43 systems, 11 of which have been delivered to date.
Since mid-2022, the HyShelter(R) 240 system commissioned by
Shell has been in normal operation and was handed over to the
operator. In April 2023, Shell ordered an additional two
HyShelter(R) 240 systems which will be delivered in 2024.
The Group's HyFrame(R) systems are also being used in Hydrogen
solutions by the German company Wilo. Since April 2023, three
HyFrame(R) S36 fuel cell systems have been in operation in the
H2Powerplant of Wilo at the Wilo headquarters in Dortmund.
After the successful installation of the production line for the
HyModule(R) S8 fuel cell system at the Group's headquarter in
Puchheim, in 2022 a first production line for HyFrame(R) fuel cell
systems were installed. In October 2022, the Group signed a rental
agreement for a new production facility in Fürstenfeldbruck, near
to Proton Motor's Puchheim headquarter. The new site will be mainly
used for the production and commissioning of fuel cell stacks,
systems and containerized turnkey solutions. The start of
production at the new facility is planned to commence in 2024. The
automated fuel cell stack production will be integrated in the new
facility. With this new site, Proton will expand its production
capacities to several thousand stacks, fuel cell systems and
turnkey solutions per year.
Operational Strategy
Sales and growth strategy
Proton Motor is seeking to ramp up capacity to achieve organic
growth through its own sales and production capacity and is also
seeking to achieve growth by offering licensing partnerships, which
will allow manufacture of the complete system locally by a
licensing partner. Furthermore, Proton Motor is seeking mutually
beneficial cooperations with suitable partners within joint
ventures and other such undertakings.
Proton Motor is targeting mid-size technology companies as well
as large multinationals as cooperation partners. The Group is
specifically looking for partners with market access for its
applications and solutions. These partners should already be active
in the market for electric power supply solutions or be planning to
address those markets. Adding a fuel cell is often seen as the key
to solving critical problems associated with pure battery or diesel
powered products.
The Group will offer solutions for all four target markets:
stationary, automotive, rail and maritime. The Group will also
continue its focus on further developing fuel cell stacks and
systems.
The sales process always starts with consulting, simulation,
packaging study, integration, testing and final roll out with
service support. Proton Motor can act as turnkey supplier for a
complete solution with all the necessary know-how under one roof. A
one-stop CleanTech Power Solution provider. To have its own fuel
cell stack gives a complete product offering from stack to final
application which the Directors see as necessary to supply
customers with a complete and optimised solution. The benefits for
customers are obvious. Know-how and solutions are available for a
fast integration process, saving time and money for our customers.
The Group has signed cooperation agreements with companies, which
provide the planning and integration part of a project.
The Group sees growing market demand for safe, secure and clean
power world-wide. Data centre demand will be significant in the
coming years. The combination of the fuel cell series with a UPS
and the optimisation of both systems will help to boost sales in
the near future. The newly designed product with capabilities to be
integrated and controlled via a smart grid will also have great
potential.
Manufacturing strategy
To date, the Group's HyStack(R) fuel cell modules and fuel cell
hybrid systems have been produced in relatively small volumes, on a
project-by-project basis, largely utilising a combination of
semi-automated processes and manual assembly. In order to meet our
manufacturing goals and achieve the market demand, the Directors
have: identified target markets and commercial applications;
-- established further key commercial partnerships within these target markets;
-- designed the Group's fuel cells and fuel cell hybrid systems
to meet the engineering requirements for volume manufacturing;
-- switched over to a new and more cost effective stack
generation which will lead to a decrease in production costs;
-- established quality control procedures;
-- installed professional commercial test benches to ensure high
quality standards for the Group's fuel cells and fuel cell
engines;
-- built up a new electrical infrastructure for continuous testing;
-- reviewed, risk assessed and secured supplier and component manufacturing relationships;
-- identified second source suppliers and addressed new suppliers for critical components;
-- identified and assessed major commercial factors, such as
cost, availability, robustness and durability of components;
and
-- secured and properly documented necessary regulatory and
operational approvals for each application.
Competitive advantages
The Directors are confident that the Group's technology brings
the following distinct combination of characteristics to the power
systems market:
-- zero harmful emissions;
-- lower fuel consumption than comparable commercial alternatives;
-- silent operation;
-- standard fuel cell stack for use in multiple applications;
-- modular fuel cell systems for easy customer adoptions;
-- a reliable, robust and durable technology; and
-- successful integration of fuel cell technology into a hybrid system.
Principal risks and uncertainties
The management of the business and the execution of the Group's
strategy are subject to a number of risks. The Board reviews these
risks, as outlined in the Corporate Governance Statement, and puts
in place policies to mitigate them.
s172(1) statement
The disclosures required for s172 reporting can be found in the
respective section of the financial statements.
Outlook
The Group's principal objective is to expand volume
manufacturing initially through the investment in our new premises
and beyond that with industrial partners based on licence
agreements and mutually beneficial cooperations, such as joint
ventures. This will enable the Group to achieve a more economically
competitive unit cost for its fuel cells and fuel cell hybrid
systems. Also the Group will utilize the sales channels of its
industrial partners to address various markets and ensure growth of
sales volume. The Directors believe that the advanced stage of
commercialisation of the Group's technology, coupled with the
Group's preferred partnerships, will enable the business to
establish itself firmly as a leading, global, fuel cell, fuel cell
hybrid system provider.
I would like to personally thank all our customers who believe
in us, our team of committed employees and our shareholders who
have the vision to invest in our mission.
Dr. Faiz Nahab Date: 19 June 2023
Chief Executive Officer
Consolidated income statement
for the year ended 31 December 2022
2022 2021
Note as restated
GBP'000 GBP'000
Revenue 4 2,088 2,771
Cost of sales (2,089) (2,346)
Gross (loss)/ profit (1) 425
Other operating income 604 501
Administrative expenses (11,057) (10,047)
Operating loss (10,454) (9,121)
Finance income 9 - 3
Finance (costs) / income 10 (8,450) 3,222
---------------------------- ---- -------- --------------------
(Loss) for the year before
embedded derivatives (18,904) (5,896)
---------------------------- ---- -------- --------------------
Fair value gain on embedded
derivatives 22 - 320,910
(Loss) / Profit for the
year before tax 5 (18,904) 315,014
---------------------------- ---- -------- --------------------
Tax 8 - -
(Loss) / Profit for the
year after tax (18,904) 315,014
(Loss) / Profit per share
(expressed as pence per 2021
share) 2022 as restated
Basic 11 (1.2) 20.4
Diluted 11 (1.2) 20.2
---------------------------- ---- -------- --------------------
Loss per share excluding
embedded derivative
(expressed as pence per
share)
Basic 11 (1.2) (0.4)
---------------------------- ---- -------- --------------------
Diluted 11 (1.2) (0.4)
---------------------------- ---- -------- --------------------
Consolidated statement of comprehensive income
for the year ended 31 December 2022
2022 2021
as restated
GBP'000 GBP'000
------------------------------------------- --- --- -------- ------------
(Loss) / Profit for the
year (18,904) 315,014
Other comprehensive (expense)
Items that may not be reclassified
to profit and loss
Exchange differences on translating
foreign operations (959) (586)
------------------------------------------------ --- -------- ------------
Total other comprehensive
(expense) (959) (586)
------------------------------------------- --- --- -------- ------------
Total comprehensive (expense)
for the year (19,863) 314,428
------------------------------------------- --- --- -------- ------------
Attributable to owners
of the parent (19,863) 314,428
------------------------------------------- --- --- -------- ------------
Consolidated Statement of Financial Position
as at 31 December 2022
Group
2022 2021
Note as restated
GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 12 149 78
Property, plant and equipment 13 2,037 1,918
Right-of-use assets 14 452 111
Fixed asset investments 15 - 11
---------------------------------------- ---- ----------------- ------------------
2,638 1,819
Current assets
Inventories 16 2,302 1,835
Trade and other receivables 17 946 1,624
Cash and cash equivalents 18 2,720 2,152
---------------------------------------- ---- ----------------- ------------------
5,968 5,611
--------------------------------------- ---- ----------------- ------------------
Total assets 8,606 7,430
---------------------------------------- ---- ----------------- ------------------
Liabilities
Current liabilities
Trade and other payables 19 4,657 4,498
Lease debt 20 215 111
Borrowings 21 466 517
---------------------------------------- ---- ----------------- ------------------
5,338 5,126
Non-current liabilities
Lease debt 20 252 8
Borrowings 21 103,007 83,956
103,259 83,964
--------------------------------------- ---- ----------------- ------------------
Total liabilities 108,597 89,090
---------------------------------------- ---- ----------------- ------------------
Net liabilities (99,991) (81,660)
---------------------------------------- ---- ----------------- ------------------
Equity
Equity attributable to equity
holders of the parent company
Share capital 24 11,040 11,023
Share premium 20,717 20,390
Merger reserve 15,656 15,656
Reverse acquisition reserve (13,861) (13,861)
Share option reserve 2,728 2,187
Foreign translation reserve 12,509 11,745
Capital contribution reserve 289,497 289,434
Accumulated losses
At 1 January 2022 (418,234) (732,390)
(Loss) / Profit for the year
attributable to the owners (18,904) 315,014
Other changes in retained earnings (1,139) (858)
---------------------------------------- ---- ----------------- ------------------
Total equity (99,991) (81,660)
---------------------------------------- ---- ----------------- ------------------
Statement of Financial Position - Company
as at 31 December 2022
Company
2022 2021
Note As restated
GBP'000 GBP'000
Assets
Current assets
Trade and other receivables 17 254 366
Cash and cash equivalents 18 9 20
---------------------------------------- ---- ---------------- ---------------
263 386
--------------------------------------- ---- ---------------- ---------------
Total assets 263 386
---------------------------------------- ---- ---------------- ---------------
Liabilities
Current liabilities
Trade and other payables 19 751 780
Lease debt - -
Borrowings - -
--------------------------------------- ---- ---------------- ---------------
751 780
Non-current liabilities
Lease debt - -
Borrowings 21 103,007 83,956
103,007 83,956
--------------------------------------- ---- ---------------- ---------------
Total liabilities 103,758 84,736
---------------------------------------- ---- ---------------- ---------------
Net liabilities (103,495) (84,350)
---------------------------------------- ---- ---------------- ---------------
Equity
Equity attributable to equity
holders of the parent company
Share capital 24 11,040 11,023
Share premium 20,717 20,390
Capital contribution reserve 288,291 288,291
Merger reserve 15,656 15,656
Share option reserve 2,728 2,187
Accumulated losses
At 1 January 2022 (421,897) (735,366)
(Loss) / profit for the year
attributable to the owners (19,849) 313,741
Other changes in retained earnings (181) (272)
---------------------------------------- ---- ---------------- ---------------
Total equity (103,495) (84,350)
---------------------------------------- ---- ---------------- ---------------
Consolidated S t atement of Changes in Equity
for the year ended 31 December 2022
Reverse Share Foreign Capital
Share Share Merger Acquisition Option Translation Contribution Accumulated Total
Group Capital Premium Reserve Reserve Reserve Reserve Reserve Losses Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2021 10,598 19,574 15,656 (13,861) 949 11,038 1,215 (732,390) (687,221)
Share based
payments 4 284 - - 1,238 - - (272) 1,254
Proceeds from
share issues 421 532 - - - - - - 953
Derecognition
of embedded
derivative
- as restated - - - - - - 288,291 - 288,291
Transactions
with owners -
as restated 425 816 - - 1,238 - 288,291 (272) 290,498
Profit for the
year - - - - - - - 315,014 315,014
Other
comprehensive
income:
Currency
translation
differences - - - - - 707 (72) (586) 49
Total
comprehensive
income for
the
year - as
restated - - - - - 707 (72) 314,428 315,063
Balance at 31
December 2021
- as restated 11,023 20,390 15,656 (13,861) 2,187 11,745 289,434 (418,234) (81,660)
Balance at 1
January 2022 11,023 20,390 15,656 (13,861) 2,187 11,745 289,434 (418,234) (81,660)
Share based
payments 13 217 - - 541 - - (180) 591
Proceeds from
share issues 4 110 - - - - - - 114
Transactions
with owners 17 327 - - 541 - - (180) 705
Loss for the
year - - - - - - - (18,904) (18,904)
Other
comprehensive
income:
Currency
translation
differences - - - - - 764 63 (959) (132)
Total
comprehensive
income for
the
year - - - - - 764 63 (19,863) (19,036)
Balance at 31
December 2022 11,040 20,717 15,656 (13,861) 2,728 12,509 289,497 (438,277) (99,991)
Statements of Changes in Equity - Company
for the year ended 31 December 2022
Capital Share
Share Share Contribution Merger Option Accumulated Total
Company Capital Premium Reserve Reserve Reserve Losses Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2021 10,598 19,574 - 15,656 949 (735,366) (688,589)
Share based payments 4 284 - - 1,238 (272) 1,254
Proceeds from share
issues 421 532 - - - - 953
Derecognition of embedded
derivative
- as restated - - 288,291 - - - 288,291
-------- -------- ------------- -------- -------- ----------- --------------
Transactions with
owners - as restated 425 816 288,291 - 1,238 (272) 290,498
Profit for the year - - - - - 313,741 313,741
Total comprehensive
expense for the year
- as restated - - - - - 313,741 313,741
-------- -------- ------------- -------- -------- ----------- --------------
Balance at 31 December
2021 - as restated 11,023 20,390 288,291 15,656 2,187 (421,897) (84,350)
======== ======== ============= ======== ======== =========== ==============
Balance at 1 January
2022 11,023 20,390 288,291 15,656 2,187 (421,897) (84,350)
Share based payments 13 217 - - 541 (181) 590
Proceeds from share
issues 4 110 - - - - 114
-------- -------- ------------- -------- -------- ----------- --------------
Transactions with
owners 17 327 - - 541 (181) 704
Loss for the year - - - - - (19,849) (19,849)
Total comprehensive
expense for the year - - - - - (19,849) (19,849)
-------- -------- ------------- -------- -------- ----------- --------------
Balance at 31 December
2022 11,040 20,717 288,291 15,656 2,728 (441,927) (103,495)
======== ======== ============= ======== ======== =========== ==============
Share premium
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 arises as a result of the
acquisition of Proton Motor Fuel Cell GmbH and represents the
difference between the nominal value of the share capital issued by
the Company and its fair value at 31 October 2006, the date of the
acquisition.
Reverse acquisition reserve
The reverse acquisition reserve (Group only) arises 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 two equity settled share-based compensation
schemes. The fair value of the employee services received for the
grant of the share awards/options is recognised as an expense. The
total amount to be expensed over the vesting period is determined
by reference to the fair value of the share awards/options granted.
At each balance sheet date the Company revises its estimate of the
number of share awards/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.
Capital contribution reserve
The captial contribution reserves include a balance of
GBP288,291,235 in relation to the gain on release of an embedded
derivative held by the shareholders in December 2021. The waiver of
a conversion feature on loan instruments, and subsequent
derecognition of embedded derivative, was considered to constitute
a transaction with owners in their capacity as owners and as such
the gain was presented in equity. See Note 22 for further
detail.
Consolidated Statement of cash flows
for the year ended 31 December 2022
Group
Year ended 31
December
2022 2021
as restated
GBP'000 GBP'000
Cash flows from operating
activities
Profit / (Loss) for the
year (18,904) 315,014
Adjustments for:
Depreciation and amortisation 666 641
Interest income - (3)
Interest expense 3,629 1,498
Share based payments 361 966
Movement in inventories (466) (45)
Movement in trade and other
receivables 678 (1,276)
Movement in trade and other
payables 159 109
Movement in fair value of
embedded derivatives - (320,910)
Effect of foreign exchange
rates 4,821 (4,720)
------------- ------------
Net cash (used in) / generated
from operating activities (9,056) (8,726)
============= ============
Cash flows from investing
activities
Purchase of intangible assets (102) (44)
Purchase of property, plant
and equipment (779) (633)
Interest received - 3
------------- ------------
Net cash used in investing
activities (881) (674)
============= ============
Cash flows from financing
activities
Proceeds from issue of loan
instruments 10,656 7,962
Proceeds from issue of new
shares 114 1,241
Repayment of other borrowings (51) (297)
New obligations of lease
debt - 21
Repayment of obligations
under lease debt (191) (202)
Net cash generated from
financing activities 10,528 8,725
============= ============
Net increase/(decrease)
in cash and cash equivalents 591 (675)
Effect of foreign exchange
rates (23) 88
Opening cash and cash equivalents 2,152 2,739
------------- ------------
Closing cash and cash equivalents 2,720 2,152
============= ============
Statement of cash flows - Company
for the year ended 31 December 2022
Company
Year ended 31
December
2022 2021
as restated
GBP'000 GBP'000
Cash flows from operating
activities
Loss for the year (19,849) 313,741
Adjustments for:
Impairment of investment 10,585 8,877
Interest income (7) (12)
Interest expense 3,574 1,476
Share based payments 590 966
Movement in trade and other
receivables 112 (156)
Movement in trade and other
payables (29) 415
Movement in fair value of
embedded derivatives - (320,910)
Effect of foreign exchange
rates 4,821 (4,720)
-------- ----------------------
Net cash (used in) / generated
from operating activities (203) (323)
======== ======================
Cash flows from investing
activities
Capital contribution to
subsidiaries (10,585) (8,877)
Interest received 7 12
-------- ----------------------
Net cash used in investing
activities (10,578) (8,865)
======== ======================
Cash flows from financing
activities
Proceeds from issue of loan
instruments 10,656 7,962
Proceeds from issue of new
shares 114 1,241
Repayment of short-term
borrowings - -
-------- ----------------------
Net cash generated from
financing activities 10,770 9,203
======== ======================
Net increase/(decrease)
in cash and cash equivalents (11) 15
Effect of foreign exchange
rates - -
Opening cash and cash equivalents 20 5
-------- ----------------------
Closing cash and cash equivalents 9 20
======== ======================
Notes to the consolidated financial statements
1. General information
Proton Motor Power Systems plc ("the Company") and its
subsidiaries (together "the Group") design, develop, manufacture
and test fuel cells and fuel cell hybrid systems as well as the
related technical components. The Group's design, research and
development and production facilities are located in Germany.
The Company is a public limited liability company incorporated
in England and Wales, and domiciled in the UK. The address of its
registered office is: c/o Womble Bond Dickson (UK) LLP, 4 More
London Riverside, London, England, SE1 2AU. The Company was
admitted to the AIM Market of the London Stock Exchange on 31
October 2006 and its shares are quoted on this exchange.
Directors
The Directors who held office during the year and up to the date
of approval of this announcement were as follows:
Dr. Faiz Nahab Chief Executive (1,3)
Helmut Gierse Chairman(2)
Antonio Bossi Non-Executive Director(5)
Ali Naini (appointed 31 May 2023)** Non-Executive Director
Sebastian Goldner Chief Technical Officer and Chief Operations
Officer
Roman Kotlarzewski Chief Financial Officer and Company
Secretary(4,6)
Manfred Limbrunner Director Governmental Affairs and Funding
(1) Chairman of the Remuneration Committee.
(2) Chairman of the Audit Committee.
(3) Chairman of the Nominations Committee.
(4) Member of the Remuneration Committee.
(5) Member of the Audit Committee.
(6) Member of the Nominations Committee.
** Ali Naini was appointed as a director on 31 May 2023. His
base remuneration was set at GBPnil
2. Summary of significant accounting policies
The Board approved this announcement on 19 June 2023. The
financial information included in this announcement does not
constitute the Group's statutory accounts for the years ended 31
December 2022 or 31 December 2021. Statutory accounts for the year
ended 31 December 2021 have been delivered to Companies House. The
statutory accounts for the year ended 31 December 2022 will be
delivered to Companies House accordingly.
Basis of preparation
The consolidated financial statements of the Group and the
financial statements of the Company have been prepared in
accordance with UK adopted international accounting standards
(IFRS) and with those parts of the Companies Act 2006 applicable to
those companies reporting under IFRS.
The consolidated financial statements and the financial
statements of the Company have been prepared under the historical
cost convention and in accordance with IFRS interpretations (IFRS
IC) 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.
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. The Group has historically been dependent on the
continuing financial support of its main investors, SFN Cleantech
Investment Ltd and Mr Falih Nahab to meet its day-to-day working
capital requirements. The Group has loans with SFN Cleantech
Investment Ltd of EUR2.4m and EUR32.3m and also a loan facility
with Mr. Falih Nahab of EUR56.9m. The repayment date for all loans
is 31 December 2025. As such the loans are held as non-current
borrowings in the financial statements.
Subsequent to the 2022 year end the following changes to the
existing loan facilities were made:
Lender: Facility at Drawn down Increase Facility at
31 December as at of facility the
2022 31 December date of this
2022 report
---------------- ------------- ------------- ------------- --------------
SFN Cleantech EUR32.3m EUR29.7m EUR nil EUR32.3m
Investment *(GBP28.7m) *(GBP26.3m) *(GBP28.7m)
Ltd
SFN Cleantech EUR2.4m EUR2.4m EUR nil EUR2.4m
Investment *(GBP2.0m) *(GBP2.0m) *(GBP2.0m)
Ltd
Mr. Falih Nahab EUR56.9m EUR54.7m EUR14.5m EUR71.4m
*(GBP50.4m) *(GBP48.5m) *(GBP12.9m) *(GBP63.3m)
---------------- ------------- ------------- ------------- --------------
Total EUR91.6m EUR86.8m EUR14.5m EUR106.1m
*(GBP81.1m) *(GBP76.8m) *(GBP12.9m) *(GBP94.0m)
---------------- ------------- ------------- ------------- --------------
*all loan facilities are denominated in EURO. Balances
translated at year end rate to Group presentation currency of
British Pound in the table above for information purposes only.
The Group will, at the date of sign off of the accounts, have in
place committed facilities from SFN Cleantech Investment Ltd and Mr
Falih Nahab of up to EUR106.1m which will become repayable at the
end of 2025. Cash flow forecasts demonstrate that the undrawn
portions of these committed facilities enable the Company and the
Group to meet its cash requirements for the period up to at least
June 2024. The Company and Group are also able to defer
discretionary spend during this period to provide further cash flow
headroom, should this be required.
At this point in time there has been no indication of
circumstances which would lead to either or both SFN Cleantech
Investment Ltd and Mr Falih Nahab withdrawing this support beyond
June 2024. Both SFN Cleantech Investment Ltd and Mr Falih Nahab
have confirmed their intention to fund further investment through
the sale of shares in the Company.
Due to the variability of the value of shareholding in the
Company and lack of knowledge of other assets held, material
uncertainty exists which may cast significant doubt upon the Group
and the Company's ability to continue as a going concern. The
Directors firmly believe however that the Group and Company remain
a going concern on the grounds that both SFN Cleantech Investment
Ltd and Falih Nahab have continued to support both entities
throughout recent years, as well as funding having been agreed by
SFN Cleantech Investment Ltd and Falih Nahab for at least the next
12 months.
The financial statements do not include the adjustments that
would result if the Group or Company was unable to continue as a
going concern.
3. 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. See Note 12.
Determining residual values and useful economic lives of
intangible fixed assets and property, plant & equipment
The Group depreciates property, plant & equipment and
amortises intangible fixed assets over their estimated useful
lives. The estimation of the useful lives of assets is based on
historic performance as well as expectations about future use and
therefore requires estimates and assumptions to be applied by
management.
Judgement is applied by management when determining the residual
values of property, plant & equipment and intangible fixed
assets. When determining the residual value management aim to
assess the amount that the Group would currently obtain for the
disposal of the asset, if it were already of the condition expected
at the end of its useful economic life.
The carrying amount of group intangible fixed assets at the
reporting date was GBP78k (2020: GBP64k) and the carrying amount of
group property, plant & equipment at the reporting date was
GBP1,619k (2020: GBP1,484k).
Inventory provisions
In accordance with IAS 2 the Group regularly reviews its
inventory to ensure it is carried at the lower of cost or net
realisable value. The management constantly reviews slow moving and
obsolete items arising from changes in the product mix demanded by
customers, reductions in overall volumes, supplier failures and
strategic resourcing decisions. Obsolescence provisions are
calculated based on current market values and future sales of
inventories. If this review identifies significant levels of
obsolete inventory, this obsolescence is charged to the income
statement as an impairment. The total inventory provision included
in the balance sheet at the reporting date was GBP77k (2020:
GBP12k).
Share-based payments
Non-market performance and service conditions are included in
assumptions about the number of options that are expected to vest.
The total expense is recognised over the vesting period, which is
the period over which all of the specified vesting conditions are
to be satisfied. At the end of each reporting period, the Group
revises its estimates of the number of options that are expected to
vest based on the non-market vesting conditions. It recognises the
impact of the revision to original estimates, if any, in the income
statement, with a corresponding adjustment to equity.
Prior year restatements
In late 2022, the Financial Reporting Council (FRC) submitted a
request for further information on the Group's Annual report and
financial statements for the year ended 31 December 2021. The
review conducted by the FRC was a limited scope review and was
based solely on the Group's published Annual report and financial
statements. It does not provide any assurance that the Annual
report and financial statements are correct in all material
respects.
Following completion of this review, the Directors in
conjunction with external advisors and the Audit Committee, have
concluded that the subdivision of ordinary shares should have been
treated as an issue of shares without a corresponding change in
resources and therefore a retrospective adjustment should have been
processed as outlined in IAS 33. Furthermore, the treatment of
non-vested shares, which have no performance conditions, should
have been treated as options for the purpose of diluted EPS as per
IAS 33.48.
As a result, the comparative basic and diluted EPS disclosures
within the Consolidated income statement, and note 11, have been
restated for 2021.
The FRC review also scrutinised the treatment of the gain on
derecognition of the embedded derivatives, which was recognised in
full through the income statement. The embedded derivatives related
to conversion features attached to convertible interest on
long-term borrowings from SFN Cleantech Investment Limited and Mr.
Falih Nahab. Given SFN and Mr Nahab are also majority shareholders,
upon review, the Directors have concluded that the waiver of
conversion feature, and subsequent derecognition of embedded
derivative, constituted a transaction with owners in their capacity
as owners. As such an element of the gain should have been
presented in equity rather than through the income statement.
As a result, the comparative Consolidated income statement,
Statements of changes in equity, and all relevant notes have been
restated for 2021. The value of reclassified gain is outlined in
note 22.
4. Segmental information
The Group has adopted the requirements of IFRS8 'Operating
segments'. The standard requires operating segments to be
identified on the basis of internal financial information about
components of the Group that are regularly reviewed by the Chief
Operating Decision Maker ('CODM') to allocate resources to the
segments and to assess their performance. The CODM has been
identified as the Board of Directors. The Board considers the
business from a product/services perspective.
Based on an analysis of risks and returns, the Directors
consider that the Group has only one identifiable operating
segment: green energy. All property, plant and equipment is located
in Germany.
Revenue from external customers
2022 2021
GBP'000 GBP'000
United Kingdom 39 149
Germany 1,232 913
Rest of Europe 768 1,705
Rest of the World 49 4
2,088 2,771
Sales to GKN Hydrogen, Wilo SE and Kion Group represented 43.1%
of the Group's revenue in 2022 (2021: Linsinger and Shell
42.5%).
The results as reviewed by the CODM for the only identified
segment are as presented in the financial statements.
5. Loss for the year before tax
2022 2021
as restated
GBP'000 GBP'000
Loss on ordinary activities before taxation is
stated
after charging
Depreciation and amortisation 665 641
Hire of other assets - operating leases exempt
from IFRS 16 79 84
Pension contributions 92 85
Foreign exchange losses 4,821 -
after crediting
Gain in write-back of embedded derivatives - (320,910)
Amortisation of grants from public bodies (475) (408)
Foreign exchange gains - (4,720)
======= ============
6 . Auditors' remuneration
2022 2021
GBP'000 GBP'000
Audit services
Fees payable to the Company's auditor for the audit
of the parent company and consolidated financial
statements 33 25
Fees payable to the Company's auditor and its associates
for other services:
Other services 3 9
36 34
7. Staff numbers and costs
The monthly average number of persons employed by the Group
(including Directors) during the year, analysed by category, was as
follows:
2022 2021
Development and construction 62 59
Administration and sales 45 45
107 104
The aggregate payroll costs of these persons were as
follows:
2022 2021
GBP'000 GBP'000
Wages and salaries 5,716 5,094
Share based payments 700 1,319
Social security costs 1,096 954
Other pension costs 92 85
7,604 7,452
There are no staff, or direct wages specific to the Company.
Share based payments charge to the non-executive and executive
Directors of the Company is GBP111k (2021: GBP154k).
Share based payments
The Group has incurred an expense in respect of shares and share
options during the year issued to employees as follows:
2022 2021
GBP'000 GBP'000
Share options (130) (64)
Share awards 721 1,318
Shares 109 65
700 1,319
At 31 December 2022 the Group operated a single share option
scheme ("SOS"). The SOS allows the Company to grant options to
acquire shares to eligible employees. Options granted under the SOS
are unapproved by HM Revenue & Customs. The maximum number of
shares over which options may be granted under the SOS may not be
greater than 15 per cent of the Company's issued share capital at
the date of grant when added to options or awards granted in the
previous 10 years. The exercise of options can take place at any
time after the second anniversary of the date of grant. Options
cannot, in any event, be exercised after the tenth anniversary of
the date of grant.
All share-based employee remuneration will be settled in equity.
The Group has no legal or constructive obligation to repurchase or
settle options. Share options and weighted average exercise price
are as follows for the reporting periods presented:
2022 2021
Weighted Weighted
average average
exercise exercise
Number price Number price
000's GBP 000's GBP
Opening balance 39,612 0.046 46,197 0.048
Exercised - 0.000 - 0.000
Forfeited (16,605) (0.020) (6,585) (0.042)
Closing balance 23,007 0.070 39,612 0.046
The fair values of options granted were determined using the
Black-Scholes valuation model. Significant inputs into the
calculation include a weighted average share price and exercise
prices. Furthermore, the calculation takes into account future
dividends of nil and volatility rates of between 50% and 98%, based
on expected share price. Risk-free interest rate was determined
between 0.640% and 5.125% for the various grants of options. It is
assumed that options granted under the SOS have an average
remaining life of 28 months (2021:28 months).
The underlying expected volatility was determined by reference
to the historical data, of the Company. No special features
inherent to the options granted were incorporated into the
measurement of fair value.
At 31 December 2022 the Group also operates a Key Person Stock
Award Scheme whereby key staff members can build up an entitlement
to target amounts of shares over a period of three to ten years,
with the vesting condition that the employees are still employed at
the time the entitlement vests. After three years amounts of shares
subject to predetermined thresholds can be drawn annually. The
remaining full entitlement can be drawn after ten years.
The fair values of awards granted were determined using the
Black-Scholes valuation model. Significant inputs into the
calculation include a weighted average share price and exercise
prices. Furthermore, the calculation takes into account future
dividends of nil and volatility rates of 50%, based on expected
share price. Risk-free interest rate was determined between 0.021%
and 1.313% for the various grants of awards.
The number of Ordinary 0.5p (2021: 1p) shares issued under the
scheme in the year having vested was 2,425,000 (2021: 400,000). The
total number of outstanding awards yet to vest at reporting date is
18.08m Ordinary 0.05p shares (2021: 21.05m Ordinary 0.5p shares).
The weighted average of time to vest for outstanding awards is 4.0
years (2021: 5.2 years) and weighted average fair value of
outstanding awards is GBP0.28 (2021: GBP0.32).
8. Tax
2022 2021
GBP'000 GBP'000
Corporation tax - -
The tax on the Group's loss before tax differs from the
theoretical amounts that would arise using the weighted average tax
rate applicable to losses of the Companies as follows:
2022 2021
as restated
GBP'000 GBP'000
Tax reconciliation
(Loss) / profit before tax (18,904) 315,014
Expected tax (credit)/charge at 19% (2021: 19%) (3,592) 59,853
Effects of different tax rates on foreign subsidiaries (578) (457)
Expenses not deductible for tax purposes 690 285
Income not taxable for tax purposes - (60,973)
Tax losses carried forward 3,480 1,292
Tax charge - -
9. Finance income
2022 2021
GBP'000 GBP'000
Interest - 3
- 3
10. Finance costs
2022 2021
GBP'000 GBP'000
Interest 3,629 1,498
Exchange loss/ (gain) on shareholder
loans 4,821 (4,720)
------- -------
8,450 (3,222)
======= =======
11. 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 year.
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 two
categories of dilutive potential ordinary shares, share options and
non-vested shares in the Key Person Share Award scheme. However,
dilutive share options have not been included in the calculation of
loss per share because they are non-dilutive for this period given
their exercise is dependent upon a particular future event.
11. Loss per share 2022 2021 - as restated
Basic Diluted Basic Diluted
GBP'000 GBP'000 GBP'000 GBP'000
Loss before embedded derivative (18,904) (18,904) (5,896) (5,896)
---------- ---------- --------- ---------
Fair value gain / (loss) on embedded
derivatives - - 320,910 320,910
Gain / (Loss) attributable to equity
holders of the Company (18,904) (18,904) 315,014 315,014
---------- ---------- --------- ---------
Weighted average number of Ordinary
shares in issue (thousands) 1,550,521 1,550,521 1,541,111 1,541,111
Effect of dilutive potential Ordinary
shares from convertible debt (thousands) - 18,075 - 21,050
Adjusted weighted average number
of Ordinary shares (thousands) 1,550,521 1,568,596 1,541,111 1,562,161
Pence Pence Pence per Pence per
per share per share share share
Gain/(loss) per share (pence per
share) (1.2) (1.2) 20.4 20.2
(Loss) per share before embedded
derivatives (pence per share) (1.2) (1.2) (0.4) (0.4)
===== ===== ===== =====
The comparative for 2021 has been restated as outlined in note
2.
12. Intangible assets - Group
Copyrights,
trademarks
and other
intellectual
property Development
Goodwill rights costs Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 2,126 298 - 2,424
Exchange differences - (18) - (18)
Additions - 44 - 44
Transfers - - - -
Disposals - - - -
-
-------- ------------- ----------- -------
At 31 December 2021 2,126 324 - 2,450
At 1 January 2022 2,126 324 - 2,450
Exchange differences - 18 - 18
Additions - 102 - 102
Transfers - - - -
Disposals - - - -
-
-------- ------------- ----------- -------
At 31 December 2022 2,126 444 - 2,570
Accumulated Amortisation
At 1 January 2021 2,126 234 - 2,360
Exchange differences - (14) - (14)
Charged in year - 26 - 26
Disposals - - - -
At 31 December 2021 2,126 246 - 2,372
At 1 January 2022 2,126 246 - 2,372
Exchange differences - 15 - 15
Charged in year - 34 - 34
Disposals - - - -
At 31 December 2022 2,126 295 - 2,421
Net book value
At 31 December 2022 - 149 - 149
At 31 December 2021 - 78 - 78
At 1 January 2021 - 64 - 64
Self-developed intangible assets in the amount of GBP102k (2021:
GBP44k) are recognised in the reporting year, because the
prerequisites of IAS 38 have been fulfilled.
Amortisation and impairment charges are recognised within
administrative expenses.
As self-developed intangible assets are not material to the
Group financial statements no impairment test has been
performed.
There are no individually significant intangible assets.
The company does not hold any intangible assets.
13 . Property, plant and equipment - Group
Leasehold Technical Office Self-constructed
property equipment & other plant &
improvements & machinery equipment machinery Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 680 1,519 851 151 3,201
Exchange differences (40) (91) (51) (9) (191)
Additions 41 93 104 395 633
Transfers - 183 - (183) -
Disposals (2) (73) (78) - (153)
At 31 December 2021 679 1,631 826 354 3,490
At 1 January 2022 679 1,631 826 354 3,490
Exchange differences 37 90 45 20 192
Additions 177 92 304 206 779
Transfers - 191 - (191) -
Disposals - - - - -
At 31 December 2022 893 2,004 1,175 389 4,461
Accumulated Depreciation
At 1 January 2021 452 850 415 - 1,717
Exchange differences (28) (55) (30) - (113)
Charge for year 65 186 169 - 420
Disposals (2) (73) (78) - (153)
At 31 December 2021 487 908 476 - 1,871
At 1 January 2022 487 908 476 - 1,871
Exchange differences 29 58 33 - 120
Charge for year 47 210 176 - 433
Disposals - - - - -
At 31 December 2022 563 1,176 685 - 2,424
Net book value
At 31 December 2022 330 828 490 389 2,037
At 31 December 2021 192 723 350 354 1,619
At 1 January 2021 228 669 436 151 1,484
The company does not hold any property, plant and equipment.
14 . Right-of-use assets - Group
Land and Plant
buildings and machinery Total
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 584 74 658
Additions - 21 21
At 31 December 2021 584 95 679
---------- -------------- -------
At 1 January 2022 584 95 679
Additions 429 110 539
Disposals - (74) (74)
---------- -------------- -------
At 31 December 2022 1,013 131 1,144
Accumulated Depreciation
At 1 January 2021 334 39 373
Charge for year 167 28 195
At 31 December 2021 501 67 568
At 1 January 2022 501 67 568
Charge for year 169 29 198
Disposals - (74) (74)
At 31 December 2022 670 22 692
Net book value
At 31 December 2022 343 109 452
At 31 December 2021 83 27 111
At 1 January 2021 250 35 285
The company does not hold any right-of-use assets.
15. Fixed asset investments
2022 2021
Shares in associate undertaking
- Group GBP'000 GBP'000
Cost
At beginning of year 18 18
Additions - -
At end of year 18 18
Impairment
At beginning of year 7 7
Charge for the year 11 -
At end of year 18 7
Net book value
At end of year - 11
2022 2021
Company GBP'000 GBP'000
Shares in Group undertaking
Cost
At beginning of year 98,401 89,524
Additions 10,586 8,877
At end of year 108,987 98,401
Impairment
At beginning of year 98,401 89,524
Charge for the year 10,586 8,877
At end of year 108,987 98,401
Net book value
At end of year - -
On 31 October 2006 the Company acquired the entire share capital
of Proton Motor Fuel Cell GmbH, a company incorporated in Germany.
The cost of investment comprises shares issued to acquire the
Company valued at the listing price of 80p per share, together with
costs relating to the acquisition and subsequent capital
contributions made to the subsidiary.
Following a review of the Company's assets the Board has
concluded that there are sufficient grounds for its investment in
the subsidiary undertakings to be subject to an impairment review
under IAS 36. In arriving at the charge in the year of GBP10,586k
(2021: GBP8,877k) the Board has determined the recoverable amount
on a value in use basis using a discounted cash flow model.
16. Inventories
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Work in progress 211 157 - -
Consumable stores - - - -
Raw materials 2,091 1,678 - -
2,302 1,835 - -
The cost of goods sold during 2022 is GBP2,089k (2021:
GBP2,346k). It includes GBP106k (2021: GBP77k) impairment loss for
slow moving inventories and goods anticipated to be sold at a
loss.
17. Trade and other receivables
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Trade receivables 401 811 - 179
Other receivables 425 479 - 33
Amounts due from Group companies - - 225 126
Prepayments and accrued income 120 334 29 27
946 1,624 254 366
The Directors consider that the carrying amount of trade and
other receivables approximates to their fair values.
In addition some of the unimpaired trade receivables are past
due as at the reporting date. The age of financial assets past due
but not impaired is as follows:
Group
2022 2021
GBP'000 GBP'000
Not more than three months (all
denominated in Euros) - -
The Directors consider that trade and other receivables which
are not past due or impaired show no risk of requiring
impairment.
18. Cash and cash equivalents
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank and in hand 2,720 2,152 9 20
2,720 2,152 9 20
The Directors consider that the carrying amount of cash and cash
equivalents approximates to their fair values.
19. Trade and other payables
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Trade payables 441 505 - -
Other payables 3,455 3,130 13 203
Amounts due to Group companies - - 468 259
Accruals and deferred income 761 863 270 318
4,657 4,498 751 780
The Directors consider that the carrying amount of trade and
other payables approximates to their fair values.
20. Lease debt
The company implemented IFRS 16 'Leases' as of 1 January
2021.
A summary of the lease debt maturity is shown below:
Group
Total
Principal Interest 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Less than 1 year 237 (22) 215 111
Between 2 and 5 years 266 (14) 252 8
Over 5 years - - - -
503 (36) 467 119
========= ======== ======= =======
The carrying value of assets held under lease within
right-of-use assets is GBP452k (2021: GBP111k). The balances relate
to the Benzstrasse 7, Puchheim, Germany property lease and a number
of vehicle leases held in Proton Motor Fuel Cell GmbH.
21. Borrowings
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Bank overdraft 466 517 - -
Loans
Current - - - -
Non-current 103,007 83,956 103,007 83,956
Current and total borrowings 103,473 84,473 103,007 83,956
Included within non-current borrowings as at year end are
amounts of GBP38,595k (2021: GBP30,320k) due to SFN Cleantech
Investment Limited which includes a principal loan of EUR29.7m
(2021: EUR23.6m) and accrued interest thereon. The principal loan
attracts interest of EURIBOR+3% per annum (2021: 3%).
Also included within non-current borrowings as at year end are
amounts of GBP2,420k (2021: GBP2,235k) due to SFN Cleantech
Investment Limited which includes a principal loan of EUR2.3m
(2021: EUR2.3m) and accrued interest thereon. The principal loan
attracts interest of EURIBOR+2% per annum. Interest is to be rolled
up and repaid at the termination of the loan agreement.
Further included within non-current borrowings as at year end
are amounts of GBP61,992k (2021: GBP51,401) due to Mr Falih Nahab,
a brother of Dr Faiz Nahab, a director of the Company. This balance
includes principal loan advances of EUR54.7m (2021: EUR48.7m) and
accrued interest thereon. The principal loan attracts interest of
EURIBOR+3% per annum (2021: 3%). Subsequent to the year end it was
agreed to extend this loan facility by a further EUR14.5m, from
EUR56.9m to EUR74.1m.
The loans are all secured on the assets of the Group.
The redemption date of all loans is 31 December 2025. As such
the loans are held as non-current borrowings.
The debt has been measured at amortised cost.
22. Embedded derivatives on convertible interest
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Embedded derivatives on convertible
interest - - - -
At the end of 2020, embedded derivatives with a value of
GBP609.2m relating to conversion features attached to convertible
interest on long-term borrowings were held in the statement of
financial position. Due to waivers signed by SFN Cleantech
Investment Limited and Mr. Falih Nahab on the convertible interest,
the embedded derivative was no longer applicable at the end of 2021
and thus was derecognised.
As noted in note 2, the derecognition has been restated in the
comparative Consolidated income statement and Statements of changes
in equity. Having previously been recognised in full through the
income statement the Directors have concluded that an element of
the gain should have been presented in equity as the transaction
constituted a transaction with owners in their capacity as owners.
In line with IFRS 13, the embedded derivative was revalued to fair
value as at the date of waiver using the same methodology as the
valuation at 31 December 2020, resulting in a GBP320.9m gain in the
income statement. The remaining GBP288.3m gain on derecognition was
subsequently recognised in equity, as shown in the Consolidated and
Company statement of changes in equity.
23. Deferred income tax - Group
Deferred tax assets are recognised for tax loss carry-forwards
to the extent that the realisation of the related benefit through
future taxable profits is probable. The Group has not recognised
deferred income tax assets of GBP30,482k (2021: GBP25,690k) in
respect of losses amounting to GBP14,735k (2021: GBP10,291k) and
EUR106,285k (2021: EUR95,053k).
24. Share capital
The share capital of Proton Motor Power Systems plc consists of
fully paid Ordinary shares with a par value of GBP 0.005 (2021:
GBP0.005) and Deferred Ordinary shares with a par value of GBP 0.01
(2021: GBP0.01 ) . All Ordinary shares are equally eligible to
receive dividends and the repayment of capital and represent one
vote at the shareholders' meeting of Proton Motor Power Systems
plc. Deferred Ordinary shares have no rights other than the
repayment of capital in the event of a winding up. None of the
parent's shares are held by any company in the Group.
During 2022, 712,127 Ordinary shares of 0.5p each were issued
each at a prices of 14.5p and 9.13p per share in settlement of
Directors' annual fees for the period ended 31 December 2022.
The number of shares in issue at the balance sheet date is
1,552,017,675 Ordinary shares of 0.5p each (2021: 1,548,740,548
Ordinary shares of 0.5p each ) and 327,963,452 (2021: 327,963,452)
Deferred Ordinary shares of 1p each (2021: 1p each).
Proceeds received in addition to the nominal value of the shares
issued during the year have been included in share premium, less
registration and other regulatory fees and net of related tax
benefits.
2022 2021
Deferred Deferred
Ordinary ordinary Ordinary ordinary
shares shares shares shares
No. No. No. No.
'000 GBP'000 '000 GBP'000 '000 GBP'000 '000 GBP'000
Shares authorised, issued and
fully paid
At the beginning of the year 1,548,740 7,743 327,963 3,280 731,828 7,318 327,963 3,280
Share issue 852 4 - - 142 1 - -
Share issue - under share award/option
schemes 2,425 13 - - 400 4 - -
Share issue - conversion on
loan interest - - - - 42,000 420 - -
Share subdivision - - - - 774,370 - - -
1,552,017 7,760 327,963 3,280 1,548,740 7,743 327,963 3,280
25. Commitments
Neither the Group nor the Company had any capital commitments at
the end of the financial year, for which no provision has been
made. In addition to the lease debt which is recorded on the
Group's balance sheet as per Note 20, there are also various short
term and low value leases which are accounted for as operating
leases. Total future lease payments under non-cancellable operating
leases are as follows:
2022 2021
Land and Land and
buildings Other buildings Other
Group GBP'000 GBP'000 GBP'000 GBP'000
Operating leases payable:
Within one year - 346 11 229
In the second to fifth years inclusive - 2 - 17
After more than five years - - - -
- 348 11 246
Post year end a fifteen-year lease agreement with has been
signed for modern premises permitting for enhanced and efficient
production throughflows to secure space to substantially expand its
manufacturing, testing and development capacity. Lease terms
include a monthly cost of GBP107k following a 10 month rent-free
period. The rights and obligations of the lease agreement transfer
to Proton in April 2023 at which time the property will be
recognised in line with IFRS 16.
26. Related party transactions
During the year ended 31 December 2022 the Group and Company
entered into the following related party transactions:
Group Company
Year ended 31 Year ended 31
December December
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
(Expenses) / Income
SFN Cleantech Investment Limited
effective loan interest (1,200) (452) (1,200) (452)
Falih Nahab effective loan interest (2,314) (993) (2,314) (993)
SFN Cleantech Investment Limited
other loan interest (60) (30) (60) (30)
SFN Cleantech Investment Limited
credit arising on convertible interest
waiver - 315,703 - 315,703
Falih Nahab credit arising on convertible
interest waiver - 293,498 - 293,498
At 31 December 2022 the Group and Company had the following
balances with related parties:
Group Company
Year ended 31 Year ended 31
December December
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Amounts due (to) / from
SFN Cleantech Investment Limited
borrowings (see Note 21) (38,595) (30,320) (38,595) (30,320)
SFN Cleantech Investment Limited
bank guarantee (2,039) (1,933) - -
SFN Cleantech Investment Limited
loans to SPower GmbH (2,420) (2,235) - -
Falih Nahab borrowings (See Note
21) (61,992) (51,401) (61,992) (51,401)
Due to the waivers of convertible interest by SFN Cleantech
Investment Limited and Mr. Falih Nahab the embedded derivative on
convertible interest is no longer applicable at the end of 2021 and
thus GBP609.2m was reversed in the income statement and equity.
During the year the Company made capital contributions to Proton
Motor Fuel Cells GmbH of GBP10,585,000 (2021: GBP8,877,000) and to
SPower GmbH of GBPnil (2021: GBPnil).
27. Risk management objectives and policies
The Group's activities expose it to a variety of financial
risks:
-- foreign exchange risk (note 28);
-- credit risk (note 29); and
-- liquidity risk (note 30).
The Group's overall risk management programme focuses on the
unpredictability of cash flows from customers and seeks to minimise
potential adverse effects on the Group's financial performance. The
Board has established an overall treasury policy and has approved
procedures and authority levels within which the treasury function
must operate. The Directors conduct a treasury review at least
monthly and the Board receives regular reports covering treasury
activities. Treasury policy is to manage risks within an agreed
framework whilst not taking speculative positions.
The Group's risk management is co-ordinated at Proton Motor Fuel
Cell GmbH in close co-operation with the Board of Directors, and
focuses on actively securing the Group's short to medium term cash
flows by minimising the exposure to financial markets.
28. Foreign currency sensitivity
The Group operates internationally and is exposed to foreign
exchange risk arising from various currency exposures, primarily
with respect to the Euro and Sterling.
The Group does not hedge either economic exposure or the
translation exposure arising from the profits, assets and
liabilities of Euro business.
Euro denominated financial assets and liabilities, translated
into Sterling at the closing rate, are as follows:
Year ended 31 Year ended 31 December
December 2022 2021
EUR'000 GBP'000 EUR'000 GBP'000
Financial assets 4,791 4,248 4,835 4,063
Financial liabilities (123,404) (109,410) (107,161) (90,052)
Short-term exposure (118,613) (105,162) (102,326) (85,989)
The following table illustrates the sensitivity of the net
result for the year and equity with regard to the parent Company's
financial assets and financial liabilities and the Sterling/Euro
exchange rate. It assumes a +/- 9.11% change of the Sterling/Euro
exchange rate for the year ended 31 December 2022 (2021: 7.97%).
This percentage has been determined based on the average market
volatility in exchange rates in the previous 12 months. The
sensitivity analysis is based on the parent Company's foreign
currency financial instruments held at each balance sheet date.
If the Euro had strengthened against Sterling by 9.11% (2021:
7.97%) then this would have had the following impact:
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
Net result for the year (9,580) (6,853)
------------ ------------
Equity (9,580) (6,853)
============ ============
If the Euro had weakened against Sterling by 9.11% (2021: 7.97%)
then this would have had the following impact:
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
Net result for the year 9,580 6,853
------------ ------------
Equity 9,580 6,853
============ ============
Exposures to foreign exchange rates vary during the year
depending on the value of Euro denominated loans. Potential foreign
exchange gains and losses are largely accounting entries given the
difference in loan denomination and presentational currency and
therefore do not result in cash gains and losses. Nonetheless, the
analysis above is considered to be representative of Group's
exposure to currency risk.
29. Credit risk analysis
Credit risk is managed on a Group basis. Credit risk arises from
cash and deposits with banks, as well as credit exposures to
customers, including outstanding receivables and committed
transactions. For banks and financial institutions, only
independently rated parties with a minimum rating of 'A' are
accepted. If customers are independently rated, these ratings are
used. Otherwise, if there is no independent rating, risk control
assesses the credit quality of the customer, taking into account
its financial position, past experience and other factors.
Individual risk limits are set based on internal or external
ratings in accordance with limits set by the Board.
No credit limits were exceeded during the reporting period, and
management does not expect any losses from non-performance by these
counterparties. The Directors do not consider there to be any
significant concentrations of credit risk.
The Group's maximum exposure to credit risk is limited to the
carrying amount of financial assets recognised at the balance sheet
date, as summarised below:
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Cash and cash equivalents 2,720 2,152 9 20
Trade and other receivables 946 1,624 29 238
Short-term exposure 3,666 3,776 38 258
The Group continuously monitors defaults of customers and other
counterparties, identified either individually or by group and
incorporates this information into its credit risk controls. Where
available at reasonable cost, external credit ratings and/or
reports on customers and other counterparties are obtained and
used. The Group's policy is to deal only with creditworthy
counterparties.
The Group's management considers that all the above financial
assets that are not impaired for each of the reporting dates under
review are of good credit quality, including those that are past
due.
None of the Group's financial assets are secured by collateral
or other credit enhancements.
In respect of trade and other receivables, the Group is not
exposed to any significant credit risk exposure to any single
counterparty or any group of counterparties having similar
characteristics. The credit risk for liquid funds and other
short-term financial assets is considered negligible, since the
counterparties are reputable banks with high quality external
credit ratings.
30. Liquidity risk analysis
Prudent liquidity risk management includes maintaining
sufficient cash and the availability of funding from an adequate
amount of committed credit facilities. The Group maintains cash to
meet its liquidity requirements.
The Group manages its liquidity needs by carefully monitoring
scheduled debt servicing payments for long-term financial
liabilities as well as cash-outflows due in day-to-day business.
Liquidity needs are monitored in various time bands, on a
day-to-day and week-to-week basis, as well as on the basis of a
rolling 30-day projection. Long-term liquidity needs for a 180-day
and a 360-day lookout period are identified monthly.
As at 31 December 2022, the Group's liabilities have contractual
maturities which are summarised below:
Within 6 to 12 1 to 5
6 months months years
GBP'000 GBP'000 GBP'000
Trade payables 441 - -
Other short term financial liabilities 4,216 - -
Lease debt - 215 252
Borrowings - 466 103,007
This compares to the maturity of the Group's financial
liabilities in the previous reporting period as follows:
Within 6 to 12 1 to 5
6 months months years
GBP'000 GBP'000 GBP'000
Trade payables 505 - -
Other short term financial liabilities 3,993 - -
Lease debt - 111 8
Borrowings - 517 83,596
The above contractual maturities reflect the gross cash flows,
which may differ to the carrying values of the liabilities at the
balance sheet date. Borrowings and embedded derivatives on
convertible loans have been combined as they relate to the same
instruments. Contractual maturities have been assumed based on the
assumption that the lender does not convert the loans into equity
before the repayment date.
31. Financial instruments
The assets of the Group and Company are categorised as
follows:
As at 31 December 2022 Group Company
Non-financial Non-financial
assets assets
/ financial / financial
assets assets
not in not in
scope scope
Loans of IAS Loans of IAS
and receivables 39 Total and receivables 39 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Intangible assets - 149 149 - - -
Property, plant and equipment - 2,037 2,037 - - -
Right-of-use assets - 452 452 - - -
Fixed asset investments - - - - - -
Inventories - 2,302 2,302 - - -
Trade and other receivables 946 - 946 254 - 254
Cash and cash equivalents 2,720 - 2,720 9 - 9
3,666 4,940 8,606 263 - 263
================ ============= ======= ================ ============= =======
As at 31 December 2021 Group Company
Non-financial Non-financial
assets assets
/ financial / financial
assets assets
not in not in
scope scope
Loans of IAS Loans of IAS
and receivables 39 Total and receivables 39 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Intangible assets - 78 78 - - -
Property, plant and equipment - 1,619 1,619 - - -
Right-of-use assets - 111 111 - - -
Investment in subsidiary - 11 11 - - -
Inventories - 1,835 1,835 - - -
Trade and other receivables 1,624 - 1,624 366 - 366
Cash and cash equivalents 2,152 - 2,152 20 - 20
3,776 3,654 7,430 386 - 386
The liabilities of the Group and Company are categorised as
follows:
As at 31
December
2022 Group Company
Financial Financial
liabilities liabilities
valued valued
at fair Liabilities at fair Liabilities
Financial value not within Financial value not within
liabilities through the scope liabilities through the scope
at amortised the income of IAS at amortised the income of IAS
cost statement 39 Total cost statement 39 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trade and
other
payables 4,657 - - 4,657 751 - - 751
Lease debt 467 - - 467 - - - -
Borrowings 103,473 - - 103,473 103,007 - - 103,007
-
108,597 - - 108,597 103,758 - - 103,758
============ ============ =========== ======= ============ ================== =========== =======
As at 31
December
2021 Group Company
Financial Financial
liabilities liabilities
valued valued
at fair Liabilities at fair Liabilities
Financial value not within Financial value not within
liabilities through the scope liabilities through the scope
at amortised the income of IAS at amortised the income of IAS
cost statement 39 Total cost statement 39 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trade and
other
payables 4,498 - - 4,498 780 - - 780
Lease debt 119 - - 119 - - - -
Borrowings 84,473 - - 84,473 83,596 - - 83,596
-
89,090 - - 89,090 84,736 - - 84,736
============ ============ =========== ======= ============ ================== =========== =======
Fair values
Management believe that the fair value of trade and other
payables and borrowings is approximately equal to book value.
IFRS 13 sets out a three-tier hierarchy for financial assets and
liabilities valued at fair value. These are as follows:
-- Level 1 - quoted prices (unadjusted) in active markets for
identical assets and liabilities;
-- Level 2 - inputs other than quoted prices included in Level 1
that are observable for the asset or liability, either directly or
indirectly; and
-- Level 3 - unobservable inputs for the asset or liability.
32. Capital management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern, provide returns
for shareholders and benefits to other stakeholders and to maintain
a structure to optimise the cost of capital. The Group defines
capital as debt and equity. In order to maintain or adjust the
capital structure, the Group may consider: the issue or sale of
shares or the sale of assets to reduce debt.
The Group routinely monitors its capital and liquidity
requirements through leverage ratios consistent with industry-wide
borrowing standards. There are no externally imposed capital
requirements during the period covered by the financial
statements.
Group Company
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
Total liabilities 108,597 89,090 103,758 84,736
Less: cash and cash equivalents (2,720) (2,152) (9) (20)
Adjusted net debt 105,877 86,938 103,749 84,716
33. Ultimate controlling party
The Directors consider SFN Cleantech Investment Ltd to be the
Ultimate Controlling Party at the date of approval of the financial
statements. Dr. Faiz Nahab, Chief Executive, is connected to SFN
Cleantech Investment Ltd.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR FFFVIRDIALIV
(END) Dow Jones Newswires
June 20, 2023 02:00 ET (06:00 GMT)
Proton Motor Power Systems (LSE:PPS)
過去 株価チャート
から 4 2024 まで 5 2024
Proton Motor Power Systems (LSE:PPS)
過去 株価チャート
から 5 2023 まで 5 2024