Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Fuel cell developer Proton Power Systems swung to a steep first-half loss, mostly owing to a loss on the value of a derivatives related to its loan financing.
Losses for the six months through June amounted to £337.7m, compared to losses of £5.0m on-year, and included a £332.9m loss on the value of the embedded derivative.
Proton Power Systems said that certain elements of accrued interest on loan financing to the group was convertible to equity at a predetermined price per share.
According to IFRS 9 the convertible interest was regarded as an embedded derivative, which must be valued at fair value, with the resulting valuation movement being passed through the profit and loss statement.
Sales fell to £269k, down from £506k on-year, which included delivery in the first half of 2018 of an additional order from Deutsche Bahnbau.
Excluding the impact of the embedded derivative together with exchange losses, the operating loss in the first half was £2.75m, compared to £2.19m on-year, which the company said was in line with its budgeted expectations.
'Proton Power has made further progress in the period with delivery of commercial contracts in proven technology, strategic co-operations and building our sales pipeline,' chairman Helmut Gierse said.
'Further investment in our manufacturing capability has put us in a stronger strategic position to capitalise in the marketplace and to deliver financial performance.'
'We have strengthened our organisation to be able to deliver complete power supply solutions. We add value to our clients through our fuel cell expertise and with our system and solution know-how.'