RNS Number : 7010R
Ceramic Fuel Cells Limited
30 October 2013
30 October 2013
Cashflow Report for the September Quarter
Ceramic Fuel Cells Limited (AIM/ASX: CFU), today released its quarterly cashflow report for the period ended 30 September 2013.
The Cashflow Report is available at www.cfcl.com.au
Highlights
-- Sales volume - 49 units sold this quarter -- Increased number of German states providing subsidies -- Direct sales team generating greater volumes of sales leads in Germany and the UK -- Cash position at 30 September 2013 AUD 4.1m (GBP 2.5m)
Operational Review
Introduction
CFU makes small scale generators that use proprietary fuel cell technology to convert natural gas into electricity and heat for homes and small commercial buildings. CFU has commercialised its technology into products and is now focused on selling these products to commercial customers in Europe.
Market Developments and Sales
As announced on 10 October 2013, The Government in the German state of Hesse has announced a funding program to support micro combined heat and power (mCHP) installations. The level of subsidy per unit is comparable to that of the North Rhine Westphalia programme at circa EUR13,000 per installed mCHP unit.
The Company is also pleased to announce that The Government in the German state of Saxony has announced a EUR3m (AUD 4.3m, GBP 2.6m) funding programme for fuel cell products. Under the programme up to 75% of the product and installation costs will be funded. The programme will be in place until the end of 2014.
CFU remains confident that other German states will soon be announcing programmes to support clean energy. These subsidies are in addition to the German Federal Government feed-in tariff for mCHP products.
As a result (and as previously announced to the market), in response to the opportunities these subsidies provide, the Company has expanded its direct sales channels in both Germany and the UK. These direct sales teams are generating a greater volume of sales leads and product interest and the Company is confident that these will translate into an increasing number of sales.
On 10 October 2013 the Company announced that the second tranche of 40 mCHP units under the Soft-Pac project will be installed in the third quarter of this financial year. The Company is pleased with the interest shown in its "BlueGEN for free" sales initiatives and is in the process of finalising arrangements with a financier.
CFU is pleased to advise that it was awarded a tender to supply 10 BlueGENs and 2 mCHP units to the Local Gas and Heating Institute's "Innovation City Ruhr". These units will be installed in the city of Bottrop, in North Rhine Westphalia, over the coming months.
The Company believes that these orders are the initial signs of the impact of both subsidies becoming available and the investment that the Company has made in its sales resource gaining traction.
Sales volume during the first quarter of the year was 49 units. This compared to 48 units in the previous quarter and 47 units in the same quarter last year.
A summary of the Company's sales performance since FY11 is as follows:
Unit sales booked to revenue
---------------------------------------------
Quarter Qtr unit FY unit
sales sales
------ ---------------- --------- --------
FY11 61
------------------------ --------- --------
FY12 169
------------------------ --------- --------
September 2012 47
----------------------- --------- --------
December 2012 43
----------------------- ---------
March 2013 9
----------------------- ---------
FY13 June 2013 48 147
------ ---------------- --------- --------
FY14 September 2013 49 49
------ ---------------- --------- --------
Financial Review
September Quarter Cash Flows
Net operating cash outflow for the September quarter was AUD 5.8m (GBP 3.5m). This compares to the previous quarter's pre-tax receipt, net operating cash outflow of AUD 6.2m (GBP 3.7m) and AUD 6.6m (GBP 4.0m) in the third quarter of FY 2013.
The Company lodged its tax return for FY2013 in early October 2013 which included circa $4m (GBP 2.4m) of research and development activities for which it expects to receive a tax credit and resultant refund. Indications are that it will receive this refund in November. This is the second tax refund for research and development activities claimed by the Company following on from the receipt of AUD 5.2m (GBP 3.1m) in June 2013. It is anticipated that going forward claims will be made annually in early October subject to Australian taxation legislation remaining the same.
Net investing cash flows for the quarter were an outflow of AUD 0.3m (GBP 0.2m).
Net financing cash flows for the quarter were an inflow of AUD 0.06m (GBP 0.04m).
Cash on hand at 30 June was AUD 4.1m (GBP 2.5m).
In its Annual Report, the Company advised shareholders that it would maintain a focus on fundraising and strong cash management. It also stated that in order to meet its sales targets and to continue with its research and product development programme, a capital raising will be necessary.
For more information please contact:
Ceramic Fuel Cells Limited
Clifford Ashby (Australia) Tel. : +61 (3) 9554 2300
Email : investor@cfcl.com.au
Bob Kennett (UK) Tel : +44 (0) 7764 200 661
Email : investor@cfcl.com.au
Ludmila Fuhrmann (Germany) Tel : +49 (0) 2452 153 752
Corporate Communications Email : investor@cfcl.com.au
Manager
Arden Partners Plc (AIM Nomad)
Steve Douglas Tel : +44 (0) 121 423 8900
Australian media enquiries
Richard Allen Tel. : +61 (0) 3 9915 6341
Oxygen Financial Public Email : richard@oxygenpr.com.au
Relations
UK media enquiries
David Sturken Tel. : +44 (0) 207 379 5151
Maitland Email : dsturken@maitland.co.uk
German media enquiries
Sebastian Mewissen Tel. : +49 211 430 7926
Hering Schuppener Consulting Email : smewissen@heringschuppener.com
About Ceramic Fuel Cells Limited:
Ceramic Fuel Cells 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 has sold its BlueGen gas-to-electricity generator to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia, and the USA. Ceramic Fuel Cells is now focusing on markets in Germany, the United Kingdom and Benelux and is developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom and EWE in Germany.
The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).
www.cfcl.com.au
www.bluegen.info
This information is provided by RNS
The company news service from the London Stock Exchange
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