Powerhouse Energy LON:PHE the waste-to-energy company published its results this week to the end of December 2023.
The Cottingley-based company has been in the doldrums for most of 2023, with its share price dropping as low as 0.23p. However, in the second quarter of the year things started turning around for the AIM-listed company, and shares opened today (4th June) at 1.8075p. On the last trading day of May Powerhouse’s shares were at 2p, 770% ahead of its low point. The Armchair Trader pointed out in March that the Yorkshire power firm was due a rally, and Powerhouse has not flattered to deceive.
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As reported, Powerhouse started moving through the gears after it changed direction from power-generation to focus on licensing fees, royalties and engineering services revenues and secured a contract through its subsidiary Engsolve to build and install its first commercial production train for Bridgend-based TrimTabs. The TrimTabs deal followed a JV with Irish non-recyclable-plastics-to-hydrogen company Hydrogen Utopia International [LON:HUI] and a design contract with Australia’s National Hydrogen Ltd for multiple hydrogen-based projects across Australia, Italy, Switzerland, and Hong Kong.
Subsequent to this publication’s last article, Powerhouse announced that the 2.5 tonne-a-day kiln it was building for its feedstock testing unit in Bridgend had been completed and shipped by AGICO of China, and was due to arrive end-May, beginning-June, with a view to getting all the unit’s components assembled and ready by 4Q24. The company hoped to expedite that target date.
Patents for Powerhouse technology secured
On the bureaucratic side, Powerhouse also secured patents for its recirculating syngas technology in the UK and had seen off a challenge in the European courts from GetGo Recycling against a similar patent application in Europe.
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The patents are very important for Powerhouse, as if its testing is validated in Bridgend it can legitimately claim to have developed a novel solution to dealing with non-recyclable plastic waste – a significant global issue – and convert the problem into a low-carbon energy solution, solving another problem of securing sustainable energy security.
Vast improvement in overall losses
The company is still loss-making, posting a GBP1.8m operational loss for 2023, an improvement on the GBP2.1m it reported in 2022. However, overall losses were GBP1.42m in 2023, which was a massive improvement on the GBP46.2m overall loss it made in 2022, albeit 2022’s figures being skewed by impairment charges. It has also been eroding its bank balance with cash-in-hand down from GBP5.9m in 2022 to GBP4.3m at the end of 2023. Revenues were also down 52% to GBP181,000.
Over one-year Powerhouse’s shares are up 177.3%, and over the year-to-date have improved 401.4%. The renewable energy company’s shares have ranged between 0.23p and 2.25p over a 52-week period and the company has a market cap of GBP75m.
Powerhouse’s CEO, Paul Emmitt said in a statement this morning: “Despite being a challenging year, the company made excellent progress in 2023. Our business model of joint venture arrangements with project development partners, giving Powerhouse more control, and providing greater upside opportunity for our shareholders we believe is already gaining traction and bearing fruit.”
He continued: “This year will be an exciting one for Powerhouse and we look forward to providing updates on our project pipeline as they progress but also on the Technology Centre once it is fully operational as well as proving up our technology in a commercial context.”
It could well be an exciting year for Powerhouse and its shareholders, for now all eyes turn to the testing rig being assembled in Bridgend.
