30th Apr 2014 15:40
LONDON (Alliance News) - Ceramic Fuel Cells Ltd, the natural gas and renewable fuels technology company, said Wednesday that it only sold 15 units in the third quarter, in what it said was a "disappointing" trading performance after improving sales momentum earlier in the year.
The company develops fuel-cell technology generators to convert natural gas into electricity and heat for homes and other buildings. In addition to selling these products to commercial customers in Europe, it also is focussing on developing a product that can undertake thermal cycling.
Ceramic Fuel Cells said Wednesday that it sold only 15 of its BlueGEN units in the three months to end of March, bringing the total number of units sold in the first nine months of the year to 139.
"This was a disappointing result following the increase in sales momentum over the previous half-year," the company said in a statement.
The group said that, as a result, it has reviewed its sales and marketing strategy, and has reduced its direct sales force in order to concentrate on larger, project-based sales in both the UK and Europe. It said the benefits of this restructure will be realised over the coming months.
"Development of these large scale projects is progressing, and the board is confident that a number of these targeted projects will be converted into orders in the near future," the company added.
The company said it has since seen an increase in sales activity during April. It said it received a signed works order for the delivery of the remaining 40 units to the Dutch island of Ameland, with half of these to be supplied in late May and the remainder in late June.
During the third quarter, the company received an order for 100 BlueGEN units, for delivery within the next twelve months, from the German company Avilos GmbH.
The group said it increased its cash position in the quarter, which stood at around GBP1.26 million as at March 31.
Last month, the company said it was disappointed that a major deal with Synergy International OU in Estonia fell apart in February, after Synergy failed to make necessary payments.
The group said Wednesday that it is still in talks with Synergy. However until the situation is resolved, no sales to Synergy have been taken into account when estimating future sales, production volumes and cash flow needs.
Shares in Ceramic Fuel Cells closed 6.3% lower at 0.773 pence Wednesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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