24th Apr 2006 07:00
Ceramic Fuel Cells Limited24 April 2006 Ceramic Fuel Cells Limited (the "Company") Third Quarter Cash Flow Statement Quarter ended 31 March 2006 Management Comments The net cash inflow for the March quarter was A$82.020m principally arising fromfinancing activities. The net operating cashflow for the quarter resulted in acash outflow of A$2.60m which was an improvement from the two previous quartersdue to increased receipts from customers. During the period the Company completed a placement of 175m ordinary shares toUK and European institutional investors, raising A$87.5m (£37.2m). In additionto this, 7.7m shares were placed to existing shareholders raising a furtherA$3.867m. The Company's shares were admitted to trading on the AIM Market of theLondon Stock Exchange and commenced trading on 2 March 2006. Expenses ofA$6.382m in relation to these two placements were paid during the period. Receipts from customers during the quarter were A$0.765m and relate principallyto the Company's field trial programme of its Combined Heat and Power (CHP)demonstration units. The Company expects to receive further revenues from thesetrials with its utility and other partners and intends to deploy its new NetGendemonstration units in field trials during 2006. The company is continuing to develop and commercialise its fuel cell technologyand these activities resulted in a net operating cash outflow for the quarter ofA$2.60m. During the period the Company made interest payments on its convertible notes ofA$0.159m and notes with a face value of A$2.8m were converted to equity. TheCompany has issued a notice of redemption to the holders of the outstandingconvertible notes and will repay all notes still outstanding as at 9 June 2006.The face value of notes outstanding as at 24 April 2006 is A$3.830m The Company's cash position at the end of the quarter was A$89.342m. For further information, contact: Andrew NeilsonLegal and Commercial Manager (Company Secretary)Phone +61 (0) 3 9554 [email protected] Aamir Quraishi/Charles GoodfellowLibertas CapitalPhone +44 (0) 20 7569 9650 Consolidated statement of cash flows for the Quarter ended 31 March 2006 (the"Current Quarter") ------------ ------------Cash flows related to operating activities Current quarter Year to date (9 months) A$'000s A$'000s ------------ ------------ 1.1 Receipts from customers 765 940 1.2 Payments for (a) staff costs (Note 1) (1,907) (6,253) (b) advertising and marketing (Note 2) (328) (621) (c) research and development (Note 3) (834) (2,109) (d) leased assets - - (e) other working capital (704) (2,718) 1.3 Dividends received - - 1.4 Interest and other items of a similar 275 503 nature received 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - Net GST Received / (Paid) 122 481 - Sundry income received 11 35 ------------------------ ------------ ------------ Net operating cash flows (2,600) (9,742) ------------------------ ------------ ------------ Notes 1. Staff costs includes all company labour and associated headcount costs, and therefore incorporates all Research & Development (R&D) staff, Sales & Marketing (S&M) staff and General & Administrative (G&A) staff. 2. Advertising and marketing excludes all S&M staff costs (as per note 1 above). 3. Research and development costs includes all R&D costs as defined in Note 1(e) to the Financial Statements for the half-year ended 31 December 2006, but excludes all R&D staff costs (as per note 1 above). ------------ ------------ Current quarter Year to date (9 months) $A'000s $A'000s ------ ------------------------ ------------ ------------ 1.8 Net operating cash flows (brought forward) (2,600) (9,742) ------ ------------------------ ------------ ------------ Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) - - (b) equity investments - - (c) intellectual property - - (d) physical non-current assets (75) (166) (e) other non-current assets - - 1.10 Proceeds from disposal of: (a) businesses (item 5) - - (b) equity investments - - (c) intellectual property - - (d) physical non-current assets - 65 (e) other non-current assets - - 1.11 Loans to other entities - - 1.12 Loans repaid by other entities - - 1.13 Other - - ------------------------ ------------ ------------ Net investing cash flows (75) (101) ------ ------------------------ ------------ ------------ 1.14 Total operating and investing cash flows (2,675) (9,843) ------ ------------------------ ------------ ------------ Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, 91,367 91,367 etc. 1.16 Proceeds from sale of forfeited shares - - 1.17 Proceeds from borrowings (convertible - 8,200 notes) 1.18 Repayment of borrowings (insurance (124) (187) premiums) 1.19 Dividends paid - - 1.20 Other - Convertible notes issue costs - (532) Other - Interest paid on convertible (159) (453) notes Other - Interest paid on insurance (7) (10) premiums funding Other - Share issue costs (6,382) (7,240) ------------------------ ------------ ------------ Net financing cash flows 84,695 91,145 ------------------------ ------------ ------------ Net increase (decrease) in cash held 82,020 81,302 ------------------------ ------------ ------------ 1.21 Cash at beginning of quarter/year to date 4,583 5,301 1.22 Exchange rate adjustments on foreign 2,739 2,739 currency cash balances ------ ------------------------ ------------ ------------ 1.23 Cash at end of quarter 89,342 89,342 ------ ------------------------ ------------ ------------ Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities ------------ Current quarter A$'000s ------------ 1.24 Aggregate amount of payments to the parties included in 186 item 1.2 1.25 Aggregate amount of loans to the parties included in - item 1.11 ------ ------------------------ ------------ 1.26 Explanation necessary for an understanding of the transactions Directors' Fees: Cash payments for directors' fees totalled $186k. Share issue costs: Share issue costs at item 1.20 includes year to date cash payments of $249k to a director-related entity. ------------------------ Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows: Convertible Notes: During the quarter convertible notes with a value of $2,800,000 were converted into equity, thereby reducing the Company's liabilities by the same amount. These conversions resulted in the issue of a further 5,600,000 ordinary shares. Share issue costs: During the quarter shares to the value of $142k were issued to a director-related entity. 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest: NIL Financing facilities available Add notes as necessary for an understanding of the position. (See AASB 1026paragraph 12.2). ------------- ------------- Amount available Amount used A$'000s A$'000s ------------- ------------- 3.1 Loan facilities - - 3.2 Credit standby arrangements - - ----- ----------------------- ------------- ------------- Reconciliation of cash ------------- -------------Reconciliation of cash at the end of the Current Previousquarter (as shown in the consolidated quarter quarterstatement of cash flows) to the related itemsin the accounts is as follows. A$'000s A$'000s ------------- ------------- 4.1 Cash on hand and at bank 472 223 4.2 Deposits at call 21,032 179 4.3 Bank overdraft - - 4.4 Other - Investments 67,838 4,181 ----- ---------------------- ------------- ------------- Total: cash at end of quarter (item 89,342 4,583 1.23) ----- ---------------------- ------------- ------------- Acquisitions and disposals of business entities ----------------- ------------------ Acquisitions Disposals (Item 1.9(a)) (Item 1.10(a)) ----------------- ------------------ 5.1 Name of entity Not applicable Not applicable 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business Compliance statement 1 This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Australian Corporations Act 2001 (Cth)Australia (except to the extent that information is not required because of note2) or other standards acceptable to ASX. 2 This statement does give a true and fair view of the matters disclosed. Notes 1. The quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flowsapply to this report except for the paragraphs of the Standard set out below. • 6.2 - reconciliation of cash flows arising fromoperating activities to operating profit or loss • 9.2 - itemised disclosure relating to acquisitions • 9.4 - itemised disclosure relating to disposals • 12.1(a) - policy for classification of cash items • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information 3. Accounting Standards. ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa topic, the Australian standard on that topic (if any) must be complied with. ENDS Ceramic Fuel Cells Ltd (CFCL) is a publicly listed company (ASX/AIM code: CFU)and world leader in developing solid oxide fuel cells. CFCL's fuel cells havethe potential to meet significant market demand in Europe, UK and Asia forclean, efficient and reliable electricity for use on site and sale back into thepower grid. With 100 skilled staff and extensive patented technology, CFCL is pursuing partnerships for manufacture, production and use of its fuel cells indelivering electricity in homes, offices and industry around the world. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ceramic Fuel Cells