19th May 2015 08:40
LONDON (Alliance News) - Intelligent Energy Holdings PLC Tuesday reported a wider pretax loss for the first half of its financial year as an increase in staff numbers and higher research and development costs offset a rise in revenue.
The company, which is still in the process of developing its fuel cell technology for several applications, reported a pretax loss of GBP27.3 million for the six months to end-March, compared with a GBP22.1 million loss a year earlier, as R&D costs rose to GBP10.3 million from GBP8.3 million and administration costs rose to GBP6.1 million from GBP4.0 million.
However, revenue grew strongly to GBP27.4 million from GBP3.5 million, after its distributed power and generation business got power management contracts in India that are currently generating about GBP10 million a month in revenue under interim agreements.
Intelligent Energy signed an initial contract with GTL in India last August to provide power for 10,000 telecom towers, recognising about GBP4 million a month in revenue. The deal was extended in April to over 26,000 telecom towers for about GBP10 million a month in revenue.
"We look forward to updating the market shortly on further progress towards the finalisation of this long term transaction," the company said, adding that it's on track to hit its target of 125,000 to 135,000 sites in the medium term.
The company is also developing its technology for the auto market, and signed a fourth joint development agreement with an Asian car manufacturer in the half. Its unit focused on developing the technology for consumer electronic devices, meanwhile, focused on integrating the intellectual property assets acquired when Intelligent Energy bought the portable fuel cell and disposable fuel cartridge assets of Société Bic in February.
Intelligent Energy said it still expects to have to raise more money to fund its growth plans, including through extending commercial collaboration opportunities and non-equity financing structures. "As an element of this plan, the company is currently engaged in discussions with strategic industrial partners and other investors," it said without elaborating.
Intelligent Energy shares were down 2.0% at 74.50 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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