UK Coal Annual Report and Accounts 2011

RNS Number : 1945C

UK Coal PLC

27 April 2012

UK COAL PLC

Annual Report and Accounts 2011

For RNS purposes graphs and page numbers have been omitted.

Chairman's statement

Results for 2011

For the first time in four years UK Coal delivered a profitable year, with overall pre-tax profits of GBP58.0m, compared to the loss of GBP124.6m for 2010 and cumulative losses from 2008 to 2010 of GBP269m. This improved performance is in line with our Recovery Plan, with an increase in revenue from improved production, stock reductions and realised sales price, and from our initial steps in addressing our cost base.

Net bank debt fell to GBP55 million at 31 December 2011 against GBP141m in 2010. This reflects the realisation of value from our property portfolio, with sales of GBP67m achieved at prices slightly ahead of book values.

Recovery Plan

In my statement last year I set out an assessment of UK Coal's business performance as I had found it on becoming Chairman in November 2010. Shortly afterwards, we announced the detailed priorities for the first steps of our Recovery Plan, which has delivered a profit in 2011. We have made some significant progress during the year:

i. We were very clear that our highest priority was to improve the safety of our mining operations and made initial good progress. Our All Accident Rate for 2011 improved by around 20%. A fatality in September further accelerated our efforts, through our Critical Safety Review, on the changes that are needed around behaviours and working practices.

ii. Our property business, Harworth Estates, performed well with net receipts from property disposals of GBP65m in the year.

iii. We made substantial progress in addressing high, and unaffordable, workforce costs and the future service cost of the Group's defined benefit pension schemes. Service costs have been halved. Labour agreements reached during the year are expected to hold per capita employment costs broadly at 2010 levels until the end of 2013.

iv. We started work on balancing long term security of sales contracts with more flexibility around market conditions.

v. Good progress was made in improving financial and operational controls across all areas of the business. We continue to fight inefficiency and high costs, although much remains to be done.

vi. We started work on rebuilding the management of the Company with significant new appointments to our mining team in the second half of the year.

vii. At year end, net bank debt, excluding restricted funds, was reduced from GBP141m to GBP55m. Total net debt, excluding restricted funds but including loan prepayments, has reduced from GBP242m to GBP139m.

viii. By the end of 2011 we had completed the re-building of the Board, with the appointment of four new Non-Executive Directors since late 2010. These appointments have contributed a fresh outlook and new determination to the Board.

Current progress

While there were significant achievements made in 2011, difficulties at Daw Mill from late 2011 highlighted how much remains to be done to put the UK Coal mining business on a stable footing.

We highlighted in April last year that the Company once again faced a potential three-month "face gap" at Daw Mill, following the four-month face gap in 2010 which cost the Company the majority of the GBP100m raised in October 2009. Our mining team developed a two-part mitigation strategy to avoid a 2011 face gap.

At the end of 2011, the element of mitigation which relied on extending the 32s face at Daw Mill failed as a result of combined geological, workforce and management problems. Work started in January 2012 on the second part of the mitigation strategy which was to commence the next face early. The ramp-up of this face was very slow, taking three months in Q1 2012.

The high fixed cost structure inherent in our deep mines and a two week cash conversion cycle coupled with poor operational performance has an immediate impact on the Group's financial position. The current structure, whereby all mines are in the same corporate entity, can quickly result in one mine putting the entire Group at risk.

The problem of operational vulnerability is compounded by the level of our pension deficit and debt to customers and banks. The pension deficit, under the principles used by the Trustees to determine future funding, has almost doubled from around GBP250m at the last valuation in 2009 to approximately GBP430m.

As a result, the Company has recently announced its intention to restructure the Group to isolate the operating risk of each deep mine from the Group as a whole and mitigate future financial uncertainty arising from operations at Daw Mill or other mines. It was also announced that a consultation process has begun regarding the early closure of Daw Mill in 2014, subject to the option to retain Daw Mill under a new structure and operating model.

2012 restructuring

Our proposal to parties with an economic interest in UK Coal would entail a more formal separation of mining and property interests, each with an appropriate capital structure. The plan is intended to isolate the operating and financial risk of each deep mine from the Group as a whole and to address the funding and debt structure of the Group.

We have continued constructive discussions with our principal banking partners, Lloyds Banking Group, together with Barclays Bank, the Pension Funds, our customers, the Department for Energy and Climate Change and the Coal Authority. We are in the process of tabling our detailed plan to these parties.

Our intended plan involves a substantial reduction of the pension, and other, liabilities of UK Coal. Under this plan, the Board believes that the value inherent in the mining business can be properly exploited for the benefit of all stakeholders. A minority equity stake in the mining business, together with an interest in the future cash stream from the realisation of the property portfolio, would be offered in consideration for the reduction of pension scheme and, potentially, other stakeholder liabilities.

The Board believes that there is potential value to be realised from our substantial brownfield property portfolio through the development process. It is proposed that the property company would take over the bank debt of the Group and an agreed liability as part of a compromise of the pension scheme. Our proposal is that equity funding, which will be ring fenced to the property business, will need to be raised for the period of time required to pay down bank debt whilst the development process releases this value.

The Board believes that this plan is the only practicable way to create a sustainable structure for the Group. We recognise that this will require significant co-operation and support from all of those with an economic interest in the Group. Without this support there would be a significant risk to the Group, and, in particular, to the continuation of the mining business. We hope to be able to report on the result of our negotiations at our AGM in June.

Outlook

The reliance on coal in the current energy mix continues. During this recent winter, mild as it was, coal generated around half of the electricity needed in the UK. The proposed introduction of the carbon support price may reduce the demand for coal, but coal remains a key factor in keeping energy bills as low as possible.

In the short and medium term, as the UK manages the transition to a cleaner energy future, in a way that also maintains an affordable price for electricity, coal continues to be part of the energy mix. With over 100 years of reserves left in the UK, it is important that we continue to use coal mined in the UK rather than relying solely on imported coal.

We have two immediate over-riding priorities:

i. To operate the business safely and successfully, delivering the continuing targets of our recovery plan and in particular to improve production at Daw Mill where the recovery of 32s face still has to be achieved and the equipment transferred to 33s on a timely basis.

ii. To set out and negotiate, with our very wide range of stakeholders, a new structure for the Group to enable it to continue into the medium and longer term.

UK Coal has made significant progress on achieving the objectives set at the beginning of the year. I believe we now have a realistic and practical solution for taking the Group forward and would like to thank all those at UK Coal who have contributed to this progress.

Jonson Cox

Chairman

27 April 2012

Company Information and AdvisErs

Ceramic Fuel Cells Key Figures Q4 2011

Ceramic Fuel Cells Key Figures

(at previous day's close)
Market Cap.	86.87	m
Shares In Issue	1,263.63	m
Prev. Close	7.13
PE Ratio	-
Dividend Yield	-	%
EPS - basic	-1.21	p
Dividend PS	-	p
Dividend Cover	-
Cash Flow PS	-0.91	p
Return On Equity (ROE)	-75.45	%
Operating Margin	-966.65	%
PEG Factor	-
EPS Growth Rate	-	%
Dividends PS Growth Rate	-	%
Net Debt	-2.84	m
Gross Gearing	21.73	%
Quick Assets	8.54	m
Net Working Capital	5.91	m
Intangibles / Fixed Assets	0.01	%
Turnover PS	0.11	p
Pre-Tax Profit PS	-1.04	p
Retained Profit PS	-1.04	p
Cash PS	0.61	p
Net Cash PS	0.34	p
Net Tangible Asset Value PS *	1.38	p
Net Asset Value PS	1.38	p
Spread	0.25 (3.57%)

Directors Shareholdings Ceramic Fuel Cells Limited 9 December 2011

Director/PDMR Shareholding

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TIDMCFU RNS Number : 6605T Ceramic Fuel Cells Limited 09 December 2011 9 December 2011 Ceramic Fuel Cells Limited Directors Shareholdings Ceramic Fuel Cells Limited (AIM / ASX: CFU) announces that certain directors of the Company have subscribed for additional ordinary shares in the Company ("Shares") as part of the recently completed Rights Issue and Offer. The Shares were subscribed for at a price of seven pence (or 10.8 Australian cents) per Share. The details of the changes in directors' direct and indirect interests in Shares are set out below: Director New Shares New total Shares Percent of issued capital Mr Jeff Harding 601,852 12,826,852 0.94 ----------- ----------------- ---------------- Mr Brendan Dow 75,000 1,800,170 0.13 ----------- ----------------- ---------------- Mr Roy Rose 91,666 458,332 0.03 ----------- ----------------- ---------------- Mr John Dempsey 100,000 500,000 0.04 ----------- ----------------- ---------------- Dr Roman Dudenhausen 125,000 625,000 0.05 ----------- ----------------- ---------------- Dr Peter Binks 2,500 12,500 0.00 ----------- ----------------- ---------------- For further information please contact: Ceramic Fuel Cells Andrew Neilson Tel: +613 9554 2300 Email: investor@cfcl.com.au Nomura Code Securities (AIM Nomad) Tel: +44 (0) 207 776 1200 Juliet Thompson, Chris Golden www.nomuracode.com About Ceramic Fuel Cells Limited: Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to generate highly efficient and low-emission electricity from widely available natural gas. Ceramic Fuel Cells is developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom, GdF Suez in France and EWE in Germany. Ceramic Fuel Cells has also sold hundreds of BlueGen gas-to-electricity generators to major utilities and other foundation customers in Germany, France, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia and the USA. Ceramic Fuel Cells recently won the 2010-11 Dupont Design for a Sustainable Future innovation award and the Microgeneration UK 2011 Technical Innovation Award. The company is listed on the London Stock ExchangeAIM market and the Australian Securities Exchange (code CFU). Register to receive email alerts of CFCL announcements and industry news, at www.cfcl.com.au/register This information is provided by RNS The company news service from the London Stock Exchange END

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PRELIMINARY RESULTS CERAMIC FUEL CELLS LIMITED 12 MONTHS ENDED 30 JUNE 2011

RNS Number : 0826N

Ceramic Fuel Cells Limited

26 August 2011

Friday 26 August 2011

Ceramic Fuel Cells Limited, (AIM / ASX: CFU) a leading developer of high efficiency and low emission electricity generation products for homes and other buildings, today announces its preliminary results for the year ended 30 June 2011.

The full results are available at www.cfcl.com.au.

Highlights in the period and year to date:

Building Sales

-- Orders for 206 BlueGen(R) units: moving from field trials to commercial sales

-- Order for up to 200 integrated mCHP products confirmed

-- 16 energy utility customers

-- Plus commercial sales channels in four markets

BlueGen(R) Product Approvals

-- UK: first and only fuel cell product approved under MCS and eligible for the UK Feed-in Tariff

-- Australia: approved for installation as an ordinary gas appliance

Increasing Sales Revenue

-- 81 percent increase from last year, to AUD 3.6 million in FY11

Manufacturing & Supply Chain

-- Volume plant operating in Germany

-- Unit costs falling

Sales

Supportive market settings in Western Europe

-- Energy policy is evolving quickly in 2011 in several markets

-- Germany is phasing out nuclear power, creating a significant opportunity for low emission energy products

-- More reliance on intermittent renewable power also increases the need for flexible and controllable distributed power generation

-- Ceramic Fuel Cells is focusing current resources to build sales in existing markets

-- As revenue and scale grows, the Company will enter new markets - e.g. North America

-- Large sales potential in many global markets: enquiries from Asia (especially China), Middle East, South Africa, Central and Eastern Europe, Russia, North America and South America (Brazil)

BlueGen(R) sales

-- BlueGen modular power and heat generator provides power and hot water

-- The Company continues to increase sales of BlueGen units to energy companies and other foundation customers

-- Orders for 206 BlueGen units: up from 51 at the same time last year

-- Highlights:

-- In July 2011 the Company's first BlueGen distributor in Germany, sanevo Lizenz-GmbH & Co. KG (sanevo), placed an initial order for 100 BlueGen units to be delivered in the first year, with a target minimum order of 500 units for delivery in the second year and a target of 2000 units over years three and four. This is the Company's largest BlueGen order to date.

-- Follow on order for 25 units from Ausgrid in Australia, to be installed in Newcastle as part of Australia's largest Smart Grid project.

-- 39 customers in nine countries

BlueGen(R) Distribution

Ceramic Fuel Cells has made sales of BlueGen units directly to early customers, but in larger volumes the Company's strategy is to sell BlueGen units through a network of distributors and to outsource the sale, installation and service of BlueGen units.

During the financial year the Company secured distribution agreements in several important markets:

-- Germany: in July 2011 the Company appointed sanevo as its first BlueGen distributor in Germany. Provided sanevo orders agreed minimum numbers of BlueGen units during 2012 to 2014, sanevo has exclusive rights to distribute BlueGen to commercial and residential customers in the German States of Baden-Wurttemberg and Bavaria, and in Austria. Ceramic Fuel Cells retains full rights to sell BlueGen units to utilities and energy service companies. Based in Offenbach, near Frankfurt, sanevo has gained experience and reputation in marketing and selling innovative small scale power and heating products in Germany through more than 120 qualified sales partners.

-- The Netherlands: in July the Company also appointed Zestiq B.V as its first BlueGen distributor in The Netherlands. Zestiq is part of the consortium of innovative companies which in April installed a BlueGen in a 17th century canal house "De Groene Bocht" in the centre of Amsterdam. Zestiq and its partners will market and sell BlueGen units to small commercial and residential customers in The Netherlands. The units will be installed and maintained by the service company of Eneco, Eneco Installatie Bedrijven.

-- United Kingdom: in May 2011 the Company appointed RES On-Site Limited, part of the RES Group, as a non-exclusive distributor in the United Kingdom. RES On-Site will target the commercial microgeneration energy market throughout the UK. RES On-Site holds MCS (Microgeneration Certification Scheme) installer accreditations in a wide range of technologies and is adding the microCHP accreditation to this and so will provide installation and after-sales service for BlueGen products.

-- Australia: the Company is working with distributors Hills Holdings Limited and Harvey Norman Commercial division, to market BlueGen units to commercial customers such as Governments and Councils, commercial buildings, hotels, property developers, architects and schools and educational facilities.

BlueGen(R) Product Approvals

During the financial year the Company's operations and engineering teams invested significant time and resources in having BlueGen approved under regulatory regimes in several markets.

-- Germany: BlueGen received full CE safety approval in April 2010. This allows BlueGen products to be installed in homes and buildings in Europe. This is a full "type" approval for all BlueGen products - not just a "prototype" approval for field trial units. In Germany BlueGen was approved by BAFA in August 2010, meaning BlueGen customers are eligible to receive the CHP bonus payable on all electricity generated by BlueGen.

-- United Kingdom: the Government introduced a feed in tariff in April 2010. To be eligible for the feed in tariff, all microgeneration products must be certified under the Microgeneration Certification Scheme ("MCS").

During the June quarter BRE Global, an independent, third-party approvals organisation, completed the technical assessment of BlueGen and confirmed that the Company has met all of the requirements under the MCS standard.

On 25 August the Company announced that BlueGen has received final MCS product and factory accreditation. BlueGen is the first fuel cell product to receive MCS certification and be eligible for the UK feed in tariff.

BlueGen customers are now able to use their BlueGen to export electricity into the National Grid and earn revenue during the process. The feed in tariffs are 10.5 pence per kilowatt hour of electricity generated, plus an additional 3.1 pence per kilowatt hour of electricity exported to the grid.

-- Australia: in August 2011 BlueGen was certified by the Australian Gas Association (AGA) for installation as a gas appliance in Australia. After rigorous testing and evaluation for compliance, AGA has certified the BlueGen to a new safety standard for fuel cell appliances. BlueGen is the first product to comply with this new standard in Australia.

BlueGen is now certified as a "Type A" gas appliance, which allows BlueGen units to be installed by a licensed and trained plumber / gasfitter as for any other typical gas appliance in Australia. BlueGen has also been certified for both indoor and outdoor installations. Previously the installation of BlueGen was restricted as a "Type B" appliance, meaning that the respective State Technical Regulator was required to inspect and approve each installation.

In Australia there is currently no feed in tariff for fuel cell products. The Company is continuing to lobby State Governments on this, and in the meantime BlueGen is being marketed to commercial customers who can use all the power on-site.

-- North America: the Company is working towards receiving safety approval for a version of BlueGen modified to meet North American requirements. The Company is making good progress and approval is expected by the end of the year.

Integrated mCHP product (power, hot water and space heating)

In parallel with the BlueGen product, the Company's Gennex(R) fuel cell module is also used in integrated micro combined heat and power (mCHP) units in Germany, France and the United Kingdom. In these products, Ceramic Fuel Cells supplies the core Gennex fuel cell module and related components to a local appliance manufacturing partner, which integrates the fuel cell module with a boiler into an integrated product to provide power, hot water and space heating for homes.

The Company has received an order for up to 200 mCHP units from German energy service provider EWE. This is the largest order the Company has received, with total revenue of up to EUR 4.9 million over two years. EWE plans to install a total of 55 integrated units by 31 December 2011. Subject to these units meeting agreed performance targets, and to further funding approval from the German Government, the Company expects EWE will then order a further 145 units for delivery in 2012.

In France, the Company is developing the next generation of an integrated mCHP unit for the French market in partnership with BDR Thermea. This unit is undergoing testing for CE approval, and will then be operated with GDF-Suez.

The Company has also developed and will shortly deploy two integrated mCHP units in the UK that represent the next generation of an integrated product for the UK market. This development is being undertaken in partnership with E.ON UK. In December 2010 E.ON UK also ordered three BlueGen units. The Company is in ongoing discussions with E.ON UK about further sales and the next stage of product deployment.

Product Performance

As at 25 August 2011, 90 BlueGen and integrated mCHP units are installed at sites in Europe, Japan, USA and Australia. In aggregate, these units have been operating for more than 300,000 hours (the equivalent of more than 34 years of collective operation).

All of these BlueGen and integrated units have achieved starting electrical efficiency of 60 percent or more, demonstrating repeatable high performance in many different real world conditions. Over time the electrical efficiency gradually reduces and the thermal output of the fuel cell stack increases. Electrical efficiency is also affected by how the BlueGen unit is operated: efficiency will be lower if the power output of the unit is modulated or reduced.

The Company is taking several steps to mitigate the risk of variable product performance in early BlueGen units. As part of the BlueGen-net system, the Company has developed a sophisticated on-line system for monitoring the performance of each BlueGen unit and integrated mCHP product. This system automatically detects when the unit is performing outside pre-set parameters and allows the Company's product support engineers to remotely diagnose faults and in some cases correct faults remotely, without the cost of a site visit. Through this system the Company is building up a rich database on the real world performance of the units, which feeds back into ongoing improvements in the design, manufacturing and installation of the products.

The Company also continues to make progress to improve the lifetime and robustness of the fuel cell system, including 'cycling' the unit on and off, and this work will continue in order to deliver a consistent and commercially acceptable level of performance.

Marketing

The Company has invested in additional resources and product related marketing activities to support the deployment of products and increase sales.

-- www.bluegen.info: a new 'global' multi-language BlueGen website informing potential customers about the benefits of BlueGen and showcasing real-life examples;

-- www.bluegen.net: providing existing customers remote monitoring and performance reporting capabilities through a web-based portal; and

-- Developing new marketing collateral and interactive tools promoting the features and benefits of BlueGen for the Company's strategic markets.

The Company's BlueGen product has recently been recognised by several international awards:

-- In May 2011, BlueGen won both the 2010-11 'CEO Award' - Dupont Australia and New Zealand's most prestigious innovation award - as well as the 'Design for a Sustainable Future' award, one of seven categories at the biennial DuPont Australia & New Zealand Innovation Awards.

-- In June 2011 the Company also won the Microgeneration UK 2011 Technical Innovation Award for its BlueGen product.

Manufacturing and Supply Chain

During the financial year the Company entered into a volume supply agreement with HC Starck for the supply of fuel cell components. Over the last few months the Company has been working with HC Starck to ensure that they can increase their production capacity to meet our forecast demand for cells, whilst maintaining our high quality standards. As part of this work the Company has assigned several of its senior technical staff to work at HC Starck's plant in Germany, to help them meet the required cell performance standards. This work is continuing.

The Company is also in ongoing discussions with HC Starck about the investment required by them to increase production capacity to meet the Company's future demand requirements. In order to mitigate the risk of relying on a single supplier of cells, the Company continues to make fuel cell components at its pilot manufacturing site in Melbourne.

During the year the Company has also focused on reducing the unit costs of the BlueGen product. The costs of components used to make BlueGen units are sensitive to economies of scale. In recognition of this, the Company is seeking to move from ordering components in lots of 100, to lots of 1,000 in order to reduce unit costs. This is expected to reduce the current BlueGen product cost by approximately 20 per cent. Increasing economies of scale are not without some risk as many processes are required to change to accommodate volume increases, however the Company works closely with its supply chain partners to mitigate this risk.

The Company is increasing production of fuel cell stacks and the assembly of BlueGen units at the Company's plant in Heinsberg, Germany. We have commenced hiring additional staff to ramp up production there and are putting in place appropriate senior management to manage these increasing production levels.

During June 2011 the Heinsberg plant was audited and certified by Kiwa Gastec under the CE Surveillance Audit programme. The objective of this programme is to ensure that the Company is manufacturing the BlueGen product in compliance with the CE approval previously granted.

New Directors

The Board recently appointed two additional non-executive directors to add financial and operational expertise as the Company scales up its operations.

In May the Board appointed German-based Dr Roman Dudenhausen, who has extensive experience in strategic advice, marketing and innovation in the German energy industry. Based in Essen, Dr Dudenhausen is CEO and co-founder of conenergy ag, a leading independent service provider to the German energy Industry. Dr Dudenhausen is also a director of electric vehicle maker mia electric Gmbh.

In early July the Board also appointed Ms Janine Hoey as a non-executive director and member of the Audit Committee. Ms Hoey has had extensive experience in commercial, operations and finance roles in the clean energy and airline industries over the last 20 years. Based in Melbourne, Ms Hoey currently holds an executive role with Pacific Hydro Pty Ltd as the General Manager Group Operations and Commercial.

Financial Results

Year to 30 June 2011 (unaudited FY11 results)

-- Revenue from Operations: AUD 3.6 million (increase of 81 percent from FY10)

-- Net operating cash outflow: AUD 19.2 million (increase of 10 percent from FY10)

-- Operating costs: AUD 27 million (increase of 25 percent from FY10)

-- Net loss: AUD 21.1 million (increase of 8 percent from FY10)

-- Cash balance at 30 June 2011: AUD 19 million

Revenue

The Group's business revenues increased during the period by 81 percent to AUD 3,681K (GBP 2,293K). Revenue in the current year is derived primarily from the sale of BlueGen and integrated mCHP units whereas last year the majority of revenue was derived from payments from partners under product development agreements.

The number of units recognised in revenue this year was 61 compared to 9 units last year.

Other Income

Other Income in the current year was AUD 4,284K (GBP 2,669K). This primarily related to funds received by the Company in the settlement of a legal action taken against the Group's former treasury advisor.

Expenses

Research and Product Development expenses were AUD 15,127K (GBP 9,424K) which includes the manufactured cost of units that were recognised in revenue and also a provision for warranty claims. Expenditure on R&PD project activities increased during the year by AUD 1,589K (GBP 990K) with a focus on increasing the performance and lifetime of the fuel cell stack.

General and Administration expenses were AUD 10,281K (GBP 6,405K) which was an increase of AUD 1,362K (GBP 849K) over last year. This increase arose primarily from an increase in depreciation and amortisation charge of AUD 1,100K (GBP 685K) relating to the commencement of production in the German plant from the start of the year. In addition to this the expense relating to the employee share scheme increased by AUD 228K (GBP 142K).

Sales and marketing expenses were AUD 1,640K (GBP 1,022K) which was AUD 694K (GBP 432K) lower than last year. Sales and support activities were restructured during the year to focus on the German, Netherlands and UK markets.

A foreign exchange loss on translation of AUD 2,094K (GBP 1,305K) arose during the year relating to the translation of cash balances held in foreign currencies back to Australian dollars. The Australian Dollarappreciated 17.7 percent against the pound sterling and 6.1 percent against the euro across the year.

Net Loss After Tax

The net loss for the year was AUD 21,176K (GBP 13,193K), an increase of AUD 1,525K (GBP 950K) over the prior year.

The main reasons for the increased loss are outlined above and can be summarised as:

                                            GBP                               AUD ('000)   Equivalent   Higher sales revenue        1,648        1,027   Higher sundry income    principally from a    legal settlement           4,030        2,511   Reduced foreign exchange    loss on   translation in the    current year               1,262        786   Offset by:   Increased operating    expenses                   5,538        3,450   Impairment charge    recovered last year        2,927        1,824   

The net loss represents a loss of 1.82 cents per share (1.13 pence) compared to 1.91 cents (1.19 pence) last year.

Cashflow and Balance Sheet

The Group's net cash outflow from operations for the year was AUD 19,300K (GBP 12,024K), an increase of 12 percent over last year. As the Group commences the commercial rollout of its BlueGen product its level of working capital requirement is increasing. Inventory at year end has increased from AUD 1,081K (GBP 673K) in the prior year to AUD 5,131K (GBP 3,197) this year as a result of holding component parts to produce BlueGen units (and holding fully completed units).

Cash outflow from investing activities was AUD 1,360K (GBP 847K) which was AUD 2,519K (GBP 1,569K) lower than last year. This reduction reflects the completion of the building programme at the plant in Germany.

Cash inlow from financing activities amounted to AUD 28,962K (GBP 18,043K). This arose from the issue of equity that raised a net AUD 28,886K (GBP 17,996K).

At 30 June 2011 the Group had cash of AUD 19,057K (GBP 11,873K) which was held on deposit with banks. Of this amount AUD 3,204K (GBP 1,996K) was pledged as security for bank guarantees and is unavailable for use by the CFCL Group.