Greentech firm writes off £40m
Powerhouse Energy has written off £40m of goodwill in its accounts as a result of its changed strategy and an acknowledgement of over-optimistic forecasts.
The reduction in the balance sheet value “has no implication on the ongoing business”, the company told shareholders in an update.
Keith Riley, who stepped in as acting chief executive last year, said: “In 2022 we commenced a transition in the company’s business strategy that will start to be realised in 2023.
“This will be to recognise market demand and to provide the company with a continuing revenue stream and enable its capital projects to be developed as the necessary elements come into place.”
He acknowledged that “2022 was a frustrating year for those wishing to see construction starting” on a facility incorporating Powerhouse technology.
In May, Powerhouse Energy – which has devised technology to turn non-recyclable waste into low carbon energy – took full ownership and control of the Protos plastics to hydrogen scheme at the Protos site, near Chester.
Powerhouse’s 2022 financial results, published today, showes a £2.1m operating loss before £44.3m of impairments. The company held £5.9m cash at the year end.
