Ceramic Fuel Cells Limited Half Year Accounts

TIDMCFU

RNS Number : 7589Y

27 February 2013

Wednesday 27 February 2013

Ceramic Fuel Cells Limited [AIM / ASX: CFU] - a leading developer of high efficiency and low emission power products for homes and other buildings - today released its interim financial results for the six months ended 31 December 2012 along with its Directors' report and review of operations.

Highlights of the Half-Year

   --           Strong political support in Germany & the UK 

-- North-Rhine Westphalia (NRW) introduces a capital subsidy scheme - the Company expects this to reduce the installed cost of a BlueGen unit to commercial customers in NRW by around EUR 10,000. Confirmation from NRW expected within the next 4 weeks

-- UK Government increases the feed-in tariffs applying to mCHP units like BlueGen from December 2012

-- The Company targets the significant UK social housing market- appoints the energy services company iPower as distribution channel for this market.

   --           Sales of 90 units completed - 34% increase over the equivalent period in 2011. 

-- Total cumulative orders received exceed 600 units. The Company is expanding its sales resources in Europe whilst also realigning its operational activities to reduce overhead costs.

-- Investment in marketing is being increased to support projected sales growth in Germany, UK and Benelux.

   --           BlueGen receives a number of prestigious awards in Germany 
   --           Unrestricted cash balance at 31 December 2012 was AUD 8.6 million  (GBP 5.8 million) 

During the first half of the fiscal year the company has made a number of significant changes to realign its corporate structure and operating activities to reduce overhead costs and to focus on the German, UK and Benelux markets. Sales volumes were up by 34% compared to the equivalent period in 2011. Revenue in the current period was AUD 2.6 million (GBP 1.7 million).

Ceramic Fuel Cells CEO Bob Kennett said "We see both strong political support for our technology and considerable market opportunities in our key European markets. We are positioning the Company to take advantage of the capital subsidy scheme for mCHP announced in the German state of North Rhine Westphalia, and the increase in the feed-in tariff in Britain which are both expected to be strong drivers of sales".

BlueGen delivers an electrical efficiency of up to 60 percent - the highest in the world. When the heat from BlueGen is used to produce hot water, total efficiency increases to up to 85 percent. The BlueGen product is the first and currently the only fuel cell m-CHP product to receive certification under the Microgeneration Certification Scheme (MCS) and be eligible for the UK feed in tariff.

Financial Results

 
         Six month period 
                      to:    31 Dec 2012      31 Dec 2011 
                           ---------------  --------------- 
                               AUD     GBP      AUD     GBP 
                                 m       m        m       m 
 Revenue from operations       2.6     1.7      3.3     2.2 
 Net operating cash 
  outflow                    (9.1)   (6.1)   (12.4)   (8.4) 
 Net loss                   (12.6)   (8.5)   (12.5)   (8.4) 
 Cash balance at 
  31 December                  8.6     5.8     19.5    13.1 
 

The Directors' Report and Financial Report for the half year are available at www.cfcl.com.au.

ENDS