Changing strategy and acquisitions hit results at low carbon energy business
Powerhouse Energy Group (PHE), which has today released its unaudited half year report for the six months ended 30 June 2023 has reported zero revenues (H1 2022: £353,000) and zero gross profits (H1 2022: £79,900).
The group explains this is due to its changing strategy and acquisition of Engsolve Ltd (Engineering Services Supplier) and Protos Waste to Hydrogen No.1 Ltd (Waste to Energy Project).
These deals formed part of the Bingley-headquartered company’s future strategy and changed the transactions between these firms from third party supplies and third party sales to intragroup transactions which were therefore eliminated from the consolidation.
Powerhouse is developing technology to convert non-recyclable waste into low carbon energy.
Tony Gardner-Hillman, non-executive chairman, said: “The profit and loss statement in this half year report does not, in my view, reflect the true trading potential of the company.
“Following the acquisition of the Protos SPV, the revenues reported last year in servicing the Protos project have now been internalised, and so are reported as a cost.
“Meanwhile the acquisition of Engsolve occurred late in the period, so minimal benefit from Engsolve revenues is recognised in these accounts.”
As previously reported, Powerhouse has entered into a lease and taken possession of a building in Bridgend, Wales, to establish the Powerhouse Technology Centre, expected to open in quarter one 2024. A Feedstock Testing Unit will installed in the centre.
Gardner-Hillman added: “Good progress has been made on the development of the Powerhouse Technology Centre. The board held its July board meeting there.
“I look forward to the centre being operational early next year and believe it will become a cornerstone in PHE’s ability to promote its technology and know-how.
“The centre will also help to support the company’s investments in capital projects, which are now moving forward in Northern Ireland and the Republic of Ireland as well as Protos. Considerable interest in PHE’s offering is also being expressed in south-east Asia and Australia.”
The group has also today confirmed that, for personal reasons and with immediate effect, Keith Riley has stepped down as acting chief executive officer and as a director of the company.
Paul Emmitt, chief operating officer, has agreed to become acting chief executive officer and it has also been agreed in principle that Riley will continue his relationship with the company as a consultant.
Gardner-Hillman said: “On behalf of the whole board I thank Keith warmly for his tireless work for Powerhouse. We respect Keith’s decision, after so many years of devoting himself to business, to shift his focus.
“Under his full-time leadership as acting CEO the company has made considerable progress and the foundations of a sustainable and prosperous future have been laid.”
