Intelligent Energy losses widen

Intelligent Energy posts after-tax losses of GBP67.3m for the six months to the end of March compared with GBP21.4m a year ago.

Revenue for the half year was GBP43.9m (2014/15: £27.4m). £40.9m of revenue was recorded in DP&G (2014/15 £23.7m) representing an expansion of the interim power management contract with GTL to cover 27,000 telecom towers in India, compared to 10,000 such towers in the comparator period.

£3.0m of revenue was delivered from the Motive division (2014/15: £3.6m). Revenue was derived from OEM joint development and public body funded project related activity only, with the expectation that this will develop in future periods into further licencing and royalty opportunities, some of which are already contracted as options or agreed royalties based on the volume of production at the time. This latter aspect of Motive's revenue stream is expected to be variable and difficult to predict in terms of when such opportunities, which are expected to be material in revenue and margin terms, might occur.

In the half year, R&D expenditure amounted to £10.6m (2014/15: £10.3m). R&D costs mainly comprise staff costs, outsourced services and material costs related to fuel cell research and development, covering both air cooled and evaporatively cooled technology.

Chief executive Dr. Henri Winand said: "It has been a difficult time for everyone associated with Intelligent Energy and we have taken some hard decisions for the long term future of the Company. However, we have successfully raised the funds needed to complete the necessary restructuring of the business, and support our refocused strategy. The Board strongly recommends that all shareholders vote to support this at the forthcoming General Meeting.

"With a refocused strategy to capitalise upon the demand for small to medium sized applications to power off-grid devices and a materially reduced and sustainable cost base, there is a path in place toward building a viable long term business."