30th Nov 2015 08:11
LONDON (Alliance News) - Intelligent Energy Holdings PLC Monday said its pretax loss narrowed in the last financial year after reporting a huge rise in revenue, driven by its power generation and distribution business in India receiving a boost from a major contract.
The energy technology group reported a GBP54.4 million pretax loss in the year ended September 30, narrowing slightly from the GBP59.6 million loss reported a year earlier after a huge rise in revenue was offset by its gross margin being squeezed.
The company generated GBP78.2 million in revenue during the financial year compared to only GBP13.6 million a year earlier, but its gross profit dropped to only GBP2.3 million from GBP3.7 million.
Intelligent Energy said the majority of its revenue was made in the second half of the financial year and said its mix of revenue by division "changed materially" year-on-year as the Distributed Power and Generation division, which generates revenue by supplying power to telecom tower sites in India, booked USD72.2 million of the company's total revenue compared to only GBP5.0 million a year earlier.
That division signed a landmark deal with GTL Ltd in the year, whereby Intelligent Energy will acquire GTL's energy management business, providing efficient and economic energy to over 27,400 telecom towers in India. That deal is expected to close in the first quarter of 2016 and is worth GBP1.20 billion in revenue over a ten-year period.
To put that deal into perspective, the company currently supplies power to only 10,000 tower sites under a separate deal signed with GTL back in 2014.
The Motive division, which was the company's main earner a year ago, generated GBP5.9 million in revenue from its fuel cell systems, which was down from GBP8.6 million a year ago.
The Consumer Electronic division had a "very disappointing" year, generating only GBP100,000 in revenue in the year, which the company said was "not in line with the original internal expectations". A year ago, the division was not generating any revenue.
Research, development and administrative costs all fell in the year, partially offset by its operating costs experiencing a slight lift.
Intelligent Energy shares were down 4.2% to 86.19 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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