Ceramic Fuel Cells Limited (ASX/AIM: CFU), today released its quarterly cashflow report for the September 2014 quarter.

RNS Number : 5382V

Ceramic Fuel Cells Limited Cashflow Report for the September Quarter

29 October 2014

Ceramic Fuel Cells Limited (ASX/AIM: CFU), today released its quarterly cashflow report for the September 2014 quarter.

Summary of the Quarter

   --      Sales volume - 23 units sold this quarter. 

-- Significantly expanded CFU's distribution and installation network in Germany, enabling much greater potential for market penetration.

-- Fundraising - issued equity of A$0.62M (GBP0.34M) and convertible notes of A$0.38M (GBP0.21M) under the Investor Agreement (as announced to the market on 24 March 2014).

-- Announcement of pro-rata Renounceable Rights Issue with offer of Options - on 29 September theCompany announced a 3 for 5 Rights Issue at an offer price of $0.009 (0.9 cents) per share and the granting of one option for every two New Shares subscribed for at an exercise price of $0.011 (1.1 cents) per share exercisable on or before 30 October 2015.

-- Installed two units in China - The Company installed its first 2 BlueGEN units in China at a company, listed on the Hong Kong Stock Exchange, which is focussed on the energy sector. Both units are currently running at greater than 60% electrical efficiency.

-- Operational costs - these continue to be managed at a level that is 20% below those of 7 months ago.

   --    Cash position at 30 September 2014 - A$1.44M (GBP0.79M). 

Operational Review

Overview

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 fully commercialised its technology into products, and in addition to selling these products to commercial customers in Europe, is focussing on developing a product that can undertake thermal cycling.

The research and product development team continues to refine the product in order to improve both its robustness to thermal cycling events and the unit's ability to continuously power modulate across the entire operating range. In-house validation testing of enhanced stack technology has demonstrated successful thermal and power cycling under a range of operating conditions. Significant progress continues to be made to fully validate and deliver these refinements into production. A limited number of stacks with enhanced thermal and power cycling performance have commenced being produced in our Heinsberg facility for early introduction to selected customer sites.

Market Developments and Sales

During the September quarter 23 BlueGEN units were sold which is less than the previous September quarter's 49 units. This reduction in unit sales is likely to be due to the restructuring that took place in February/March 2014 when it was decided to reduce the direct sales force in Germany and concentrate resources on appointing distributors and installers to do the direct selling as well as concentrate on large, project-based sales. The Company has previously acknowledged that this level of sales will not sustain the business and continues to focus its limited sales resources on large, project-based sales. Development of these large-scale projects is progressing and the Board remains confident that a number of these targeted projects will be converted into orders in the near future. It is also anticipated that bringing a number of these to a successful conclusion will demonstrate clear market potential for this type of contractual structure.

As mentioned in previous announcements the Company acknowledges that, whilst there is the basis to significantly increase sales volumes through project-based schemes, there is also the opportunity to secure the business' future viability through actively pursuing strategic partnerships with a number of key distribution partners in Europe, Asia and North America. In addition to distribution partners, the Company has been approached to develop larger capacity units for certain markets. Such developments require additional resources and discussions continue with a number of organisations to secure the appropriate financial support. These activities may lead to the Company becoming a multiple product business.

A summary of the Company's sales performance by quarter since FY11 is as follows:

Please click link to see graph

http://www.rns-pdf.londonstockexchange.com/rns/5382V_-2014-10-28.pdf

Monthly sales for the 15 months to 30 September 2014 were as follows:

Please click link to see graph

http://www.rns-pdf.londonstockexchange.com/rns/5382V_-2014-10-28.pdf

Sales by geographical sales force for the 3 months to 30 September 2014 were as follows:

Please click link to see graph

http://www.rns-pdf.londonstockexchange.com/rns/5382V_-2014-10-28.pdf

During the September quarter two installation partners in Germany sold three units each, a further two sold two units each, and one partner in the Netherlands sold two units. The remainder were single unit sales. CFCL sold its first unit to Poland during the quarter.

Financial Review

September Quarter Cash Flows

Net operating cash outflow for the September quarter was A$4.59M (GBP2.52M). During the quarter, receipts from customers amounted to A$0.60M (GBP0.33M) and operating expense cash outflow was A$5.34M (GBP2.94M). The quarter's net operating cash outflow compares to the June 2014 quarter's net operating cash outflow of A$2.95M (GBP1.62M). The operating expense cash outflow for the two quarters was similar, however, the customer receipts in the June quarter were significantly higher due to the receipt of the proceeds from the 45 unit Ameland sale. March 2014 quarter's operating cash outflow was A$8.06M (GBP4.43M), December 2013 quarter's outflow was A$1.22M (GBP0.67M) and September 2013 quarter's outflow was A$6.03M (GBP3.32M). December 2013 quarter's net operating cash outflow was materially reduced by the receipt of a tax refund of A$4.02M (GBP2.21M) for research and development expenditure for FY2013, hence the operating cash outflow before the tax receipt was A$5.24M (GBP2.88M). It is anticipated that a research and development tax refund of approximately A$4.10M (GBP2.26M) will be received for FY2014 in the last quarter of CY2014.

The Board continues its strategic review of the Company's financial and operational needs along with its pursuit of joint venture possibilities with partners who are willing to pay for the Company's technology or can add significant synergies to the Company's operations.

Net investing cash flow for the quarter was an outflow of A$5K (GBP3K). The outflow was for the acquisition of plant and equipment.

Net financing cash flow for the quarter was an inflow of A$0.62M (GBP0.34M). Of the gross amounts, A$0.62M (GBP0.34M) was received from the issue of shares under the Investor Agreement and A$0.38M (GBP0.21M) from the issue of an unsecured convertible note under the same agreement. The capital raise expenses disclosed in the Appendix 4C relate mainly to the June quarter's Share Placement and the cost of issuing shares under the Investor Agreement.

Cash on hand at 30 June 2014 was A$5.31M (GBP2.92M).

Cash on hand at 30 September 2014 was A$1.44M (GBP0.79M).

Ceramic Fuel Cells Limited Cashflow Report for the June Quarter 2012

RNS Number : 3304I

Ceramic Fuel Cells Limited

24 July 2012

Tuesday 24 July 2012

Cashflow Report for the June Quarter

Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of small generators that use fuel cell technology to convert natural gas into electricity and heat for homes and other buildings, today released its quarterly cashflow report for the period ended 30 June 2012.

The cashflow report is available at www.cfcl.com.au.

Key Points

-- Revenue for FY12 is expected to be approximately AUD 6.7m (GBP 4.4m), an increase of 82 percent on FY11 revenue.

-- In total CFCL has received orders for 639 products (375 BlueGen units plus 264 integrated mCHP units). This is a 108 percent increase from the order book as at 30 June 2011.

-- During the June quarter we booked to revenue sales of 76 units, bringing the total sales for FY12 to 169 units.

-- In the month of June the Company shipped 42 units, the largest number of units shipped to date in a single month.

-- Net operating cash outflow for the June quarter was AUD 7.3m (GBP 4.8m). This is higher than previous quarters due to the timing of customer payments and increased production levels and inventory. We have reduced operatingcosts and we expect cash outflow to reduce significantly in the September quarter.

-- Cash on hand at 30 June was AUD 8.8m (GBP 5.8m). We are pursuing several options to raise capital, including a Rights Issue and Overseas Offer, announced today.

Commentary

In June the Company had its highest sales month so far, delivering 42 units to customers. Payment for these sales is expected in the September quarter.

Receipts from customers for the June quarter was lower than the March quarter which included payment from E.ON UK for all of the 45 BlueGen units ordered in November 2011. The Company delivered 15 of these units to E.ON UK in the March quarter and 30 in the June quarter. Earlier in the June quarter the Company also increased purchases of components to make BlueGen units, to be held in inventory and then delivered to customers.

These factors have led to a net operating cash outflow of AUD 7.3m (GBP 4.8m) for the June quarter, compared to AUD 4.9m (GBP 3.2m) in the March quarter.

The overall net cashflow for the June quarter after investing and financing activities was an outflow of AUD 7.8m (GBP 5.1m). This included AUD 0.4m (GBP 0.2m) for capital expenditure payments in relation to work on the large scale furnace in Germany. As reported in the shareholder update of 12 July, we expect this furnace to be operational during August 2012 without any more significant capital costs.

For the full financial year to 30 June 2012, cash receipts from customers were AUD 6m (GBP 3.9m), which was a 79 percent increase on FY11.

Revenue for FY12 is expected to be approximately AUD 6.7m (GBP 4.4m), an increase of 82 percent on FY11 revenue. (This is an increase of AUD 200k on the revenue estimate of AUD 6.5m in the shareholder update released on 12 July.) During the June quarter we booked to revenue sales of 76 units, bringing the total sales for FY12 to 169 units, compared to 61 units in FY11.

While revenue has grown strongly, it needs to increase faster to fund operating costs. We have reduced operating costs, including by reducing consultants' fees and reducing casual and contract staff, in line with our manufacturing strategy to progressively outsource assembly activities. We have also sharply reduced component purchases, and deferred or cancelled existing purchase orders.

As a result of these cut backs, we expect net cash outflow to be significantly lower in the September quarter.

As at 30 June 2012 the Company held cash of AUD 8.8m (GBP 5.8m). This includes AUD 2.2m pledged as security for bank guarantees, leaving unrestricted cash of AUD 6.6m (GBP 4.4m).

As announced in the shareholder update on 12 July, we are pursuing several options to raise additional capital to enable the Company to continue to fund its operations. These measures include a Rights Issue to Australian and New Zealand holders and an Overseas Offer to UK and European shareholders announced today. (Please refer to the separate announcement for further details.)

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

Half Yearly Report 18/02/11 RNS Ceramic Fuel Cells Limited

RNS Number : 4688B

Ceramic Fuel Cells Limited

18 February 2011

18 February 2011

Ceramic Fuel Cells Limited

Half Year Accounts

Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of high efficiency and low emission power products for homes, today released its interim financial results for the six months ended 31 December 2010.

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

A company presentation, and a link to a webcast interview with Managing Director Brendan Dow, are also available at www.cfcl.com.au.

For further information please contact:


Ceramic Fuel Cells
Andrew Neilson Tel: +613 9554 2300
Email: investor@cfcl.com.au

Nomura Code Securities (AIM Tel: +44 (0) 207 776
Nomad) 1200
Juliet Thompson, Chris Golden

Australia Media enquiries
Richard Allen, Oxygen Financial Tel: +613 9915 6341
Public Relations

UK Media enquiries Tel: +44 (0) 7786 116
Mark Way 991
Email: Mark.W@harvardamerica.com


About Ceramic Fuel Cells Limited:

Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to provide 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 more than 60 BlueGen gas-to-electricity generators to major utilities and other foundation customers in Europe, Japan, Australia and the USA. Ceramic Fuel Cells is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU). www.cfcl.com.au

Register to receive email alerts of CFCL announcements and industry news, at www.cfcl.com.au/register

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END