19th Jul 2007 07:00
Acta S.p.A.19 July 2007 19 July 2007 Acta S.p.A. Trading Update Acta, the AIM-listed catalyst developer, released the following update on itsprogress prior to entering its close period at the end of the first half. Financial Review First half revenues have been more than double the whole of 2006 and in linewith market forecasts. Operating costs have been below expectations in the firsthalf. The receipt of £5.65m net of associated costs from the investmentannounced on 12 July 2007 would provide cash resources until 2010 at currentutilisation rates. Commercial and Operational Progress Acta has made good commercial progress in the first half. New Non DisclosureAgreements have been signed and repeat orders have been shipped to key targetcustomers. Total shipments were significantly higher than in the whole of 2006.Acta is making excellent progress in expanding its activities beyond fuel cellcatalysts: the new ammonia electrolyser offers a unique and exciting solution tothe problems of hydrogen supply for existing fuel cell technologies andencouraging trials are taking place in a battery application. Customer trialscontinue to expand and it is hoped that these will be converted into anannounceable Joint Development Agreement in the second half. Scale up of thepilot plant remains on schedule and within budget. Technical Progress Acta has made important technical progress towards its 2007 milestones. Thesuccessful public demonstration of the world's first ethanol powered fuel cellvehicle at the Shell Eco-marathon was a tangible confirmation of the technicalpotential of the system. The launch of the ammonia electrolyser catalyst hasbeen followed by further development work, for which a second ammoniaelectrolysis patent application will be made this summer. The new HYPERMEC3-Series anode for fuel cells offers improved performance and durability of upto 3,000 hours. Acta has also made important progress in improving the structureof its Alkaline Membrane Fuel Cells, screening other key components such asmembranes and ionomers and filing a further three patent applications concerningits own technology, including one in early July. Finally, Acta has been pleasedto start work with Edinburgh University on the project to explore the conversionof CO2 into alcohols, as funded by the Carbon Trust. Sumitomo Corporation Investment and Institutional Placing On 12 July 2007 Acta announced that Sumitomo Corporation, its Asian marketingpartner, is to invest £4.6m for around 10% of the Company. This investment,supported by a further placing with institutional investors, is a tremendousendorsement of Acta's commercial and technical progress outlined above, furtherreinforced by the extension of the Sumitomo marketing agreement for a 10-yearperiod. Paolo Bert, Chief Executive, commented: "Acta has made considerable progress in the first half in its strategy todevelop multiple applications for its technology. We have had encouragingresponses from a wide range of target customers. The strength of our technologyand the recent investment in the business leaves us ideally placed to take fulladvantage of the opportunities presented by our high growth markets and weexpect to deliver key commercial milestones in the second half of the year." For further information, please contact: Acta S.p.A:Toby Woolrych, Chief Operating Officer Tel: +44 (0) 20 7360 4900 Smithfield Consultants:Katie Hunt / Will Henderson Tel: +44 (0) 20 7360 4900 Numis:David Poutney / Alex Ham Tel: +44 (0) 20 7260 1000 - Ends - Notes to Editors: Acta S.p.A. Acta, which was admitted to AIM in October 2005, is a manufacturer ofplatinum-free catalysts for the portable electronics and renewables markets.Acta uses patented manufacturing processes to make uniquely active catalysts,branded HYPERMEC, which are able to perform as effectively as expensive platinumcatalysts. Acta's catalysts offer customers technical usage benefits,significant cost savings and allow for the first time the use of ethanol, whichis a safe and environmentally friendly fuel. Products in the target portableelectronics market include laptop computers and mobile phones, and in therenewables market include electricity supply, automotive power and hydrogengeneration. Further information Sumitomo Investment On 12th July Acta announced a £4.6m investment by Sumitomo Corporation togetherwith a further £1.15m placing with UK institutions. At the same time Acta andSumitomo entered into a new Marketing Agreement with an initial fixed termextended to ten years and provisions contemplating collaboration in futureventures in the Asian region. Completion of the first half of the investment bySumitomo and the institutional placing (approximately 60% of the fund raising)is expected during the second half of September 2007 following EGM approval. Thesecond tranche of the Sumitomo investment is due to be completed six monthsthereafter. Completion of the fund raising is, in each case, subject to thefulfilment of certain administrative matters and there being no breach ofwarranty. Ammonia electrolyser In January 2007 Acta announced that it had developed a novel catalyst whichcould produce hydrogen from ammonia at room temperature by electrolysis. Thiselectrolyser was demonstrated in February at the world's largest fuel cellexhibition in Tokyo. The ammonia electrolyser is a breakthrough because ammoniais a very widely available and practical fuel for carbon-free motoring. Use ofammonia avoids the critical problems of hydrogen storage and transportationcurrently faced by fuel cell developers. The new electrolyser releases thehydrogen for use in a fuel cell using a fraction of the electrical input and ata much lower temperature than any other process. The Acta development thereforemakes possible for the first time the on-board supply of hydrogen for automotivefuel cells from a practical fuel source. Increased production output Acta's pilot plant is installed and now being commissioned. Publicly announcedtargets for production capacity will give the business increasing ability tomeet future customer orders. Targets for June 2007 have already been met andprogress towards December 2007 targets is on plan. Launch of HYPERMEC 3-Series anode Acta launched in May a new anode that, when used with the existing K14 cathode,offers higher performance and better durability than the 2-Series anode itreplaces. Customer trials are in progress with the new catalyst. Shell Eco-Marathon Demonstration Acta announced in May that it had supplied catalysts for the world's firstdirect ethanol fuel cell vehicle, which was demonstrated at the ShellEco-marathon in France. The successful demonstration has received considerablepublicity within the market and demonstrates the potential of Acta's uniquecatalysts. CO2 to alcohol programme Acta announced in March that the Carbon Trust had awarded £175,000 to Acta andthe University of Edinburgh to investigate the conversion of CO2 to alcohol. Ifsuccessful, this would be a fundamental advance in the quest to reduce emissionsof greenhouse gases. Significant interest has been expressed already by a numberof large international OEMs in the outcome of this project. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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