30 October 2013
Market Announcement
Cashflow Report for the September Quarter
Ceramic Fuel Cells Limited (AIM/ASX: CFU), today released its quarterly cashflow report for the period ended
30 September 2013.
• Sales volume - 49 units sold this quarter
Highlights
• Increased number of German states providing subsidies
• Direct sales team generating greater volumes of sales leads in Germany and the UK
• Cash position at 30 September 2013 AUD 4.1m (GBP 2.5m)
Introduction
Operational Review
CFU makes small scale generators that use proprietary fuel cell technology to convert natural gas into electricity and heat for homes and small commercial buildings. CFU has commercialised its technology into products and is now focused on selling these products to commercial customers in Europe.
Market Developments and Sales
As announced on 10 October 2013, The Government in the German state of Hesse has announced a funding program to support micro combined heat and power (mCHP) installations. The level of subsidy per unit is comparable to that of the North Rhine Westphalia programme at circa €13,000 per installed mCHP unit.
The Company is also pleased to announce that The Government in the German state of Saxony has announced a €3m (AUD 4.3m, GBP 2.6m) funding programme for fuel cell products. Under the programme up to 75% of the product and installation costs will be funded. The programme will be in place until the end of 2014.
CFU remains confident that other German states will soon be announcing programmes to support clean energy. These subsidies are in addition to the German Federal Government feed-in tariff for mCHP products.
As a result (and as previously announced to the market), in response to the opportunities these subsidies provide, the Company has expanded its direct sales channels in both Germany and the UK. These direct sales teams are generating a greater volume of sales leads and product interest and the Company is confident that these will translate into an increasing number of sales.
On 10 October 2013 the Company announced that the second tranche of 40 mCHP units under the Soft-Pac project will be installed in the third quarter of this financial year. The Company is pleased with the interest shown in its "BlueGEN for free" sales initiatives and is in the process of finalising arrangements with a financier.
CFU is pleased to advise that it was awarded a tender to supply 10 BlueGENs and 2 mCHP units to the Local Gas and Heating Institute's "Innovation City Ruhr". These units will be installed in the city of Bottrop, in North Rhine Westphalia, over the coming months.
Ceramic Fuel Cells Limited
ABN : 055 736 671
Website : www.cfcl.com.au
The Company believes that these orders are the initial signs of the impact of both subsidies becoming available and the investment that the Company has made in its sales resource gaining traction.
Sales volume during the first quarter of the year was 49 units. This compared to 48 units in the previous quarter and 47 units in the same quarter last year.
A summary of the Company's sales performance since FY11 is as follows:
Unit sales booked to revenue
|
|
Quarter
|
Qtr unit sales
|
FY unit sales
|
FY11
|
|
|
61
|
FY12
|
|
|
169
|
FY13
|
September 2012
|
47
|
147
|
FY13
|
December 2012
|
43
|
147
|
FY13
|
March 2013
|
9
|
147
|
FY13
|
June 2013
|
48
|
147
|
FY14
|
September 2013
|
49
|
49
|
September Quarter Cash Flows
Financial Review
Net operating cash outflow for the September quarter was AUD 5.8m (GBP 3.5m). This compares to the previous quarter's pre-tax receipt, net operating cash outflow of AUD 6.2m (GBP 3.7m) and AUD 6.6m (GBP
4.0m) in the third quarter of FY 2013.
The Company lodged its tax return for FY2013 in early October 2013 which included circa $4m (GBP 2.4m) of research and development activities for which it expects to receive a tax credit and resultant refund. Indications are that it will receive this refund in November. This is the second tax refund for research and development activities claimed by the Company following on from the receipt of AUD 5.2m (GBP 3.1m) in June 2013. It is anticipated that going forward claims will be made annually in early October subject to Australian taxation legislation remaining the same.
Net investing cash flows for the quarter were an outflow of AUD 0.3m (GBP 0.2m). Net financing cash flows for the quarter were an inflow of AUD 0.06m (GBP 0.04m). Cash on hand at 30 June was AUD 4.1m (GBP 2.5m).
In its Annual Report, the Company advised shareholders that it would maintain a focus on fundraising and strong cash management. It also stated that in order to meet its sales targets and to continue with its research and product development programme, a capital raising will be necessary.
Page 2 of 3
For more information please contact:
Ceramic Fuel Cells Limited
Clifford Ashby (Australia) Tel.
Email
Bob Kennett (UK) Tel
Email
: +61 (3) 9554 2300
: [email protected]
: +44 (0) 7764 200 661
: [email protected]
Ludmila Fuhrmann (Germany) Corporate Communications Manager
Tel
Email
: +49 (0) 2452 153 752
: [email protected]
Arden Partners Plc (AIM Nomad)
Steve Douglas Tel : +44 (0) 121 423 8900
Australian media enquiries
Richard Allen
Oxygen Financial Public Relations
Tel. Email
: +61 (0) 3 9915 6341
: [email protected]
UK media enquiries David Sturken Maitland
Tel. Email
: +44 (0) 207 379 5151
: [email protected]
German media enquiries
Sebastian Mewissen
Hering Schuppener Consulting
Tel. Email
: +49 211 430 7926
: [email protected]
About Ceramic Fuel Cells Limited:
Ceramic Fuel Cells is a world leader in developing fuel cell technology to generate highly efficient and low- emission electricity from widely available natural gas. Ceramic Fuel Cells has sold its BlueGen gas-to-electricity generator to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia, and the USA. Ceramic Fuel Cells is now focusing on markets in Germany, the United Kingdom and Benelux and is developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom and EWE in Germany.
The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code
CFU). www.cfcl.com.au
www.bluegen.info
Page 3 of 3
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Appendix 4C
Quarterly report for entities admitted
on the basis of commitments
Rule 4.7B
Introduced 31/3/2000. Amended 30/9/2001
Name of entity
CERAMIC FUEL CELLS LIMITED
ABN Quarter ended ("current quarter")
82 055 736 671 30 SEPTEMBER 2013
Consolidated statement of cash flows
Cash flows related to operating activities
1.1 Receipts from customers
1.2 Payments for
(a) staff costs 1
(b) advertising and marketing 2
(c) research and product development 3
(d) leased assets
(e) other working capital
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest paid
1.6 Income taxes
1.7 Other
- Net GST/VAT received/(paid)
- Government grants received/(repaid)
- Sundry income received
Net operating cash flows
Notes
1. 'Staff costs' includes all labour and associated headcount costs, and therefore incorporates all Research
& Product Development (R&PD) 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 product development' costs includes all R&PD costs as defined in Note 1(e) to the Financial Statements for the year ended 30 June 2013, but excludes all R&PD staff costs (as per note 1 above).
Ceramic Fuel Cells Limited - Quarterly Cash Flow Report for the quarter ended 30 September 2013 Page 1
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
|
Current quarter
$A'000
|
Year to date
(3 months)
$A'000
|
1.8 Net operating cash flows (carried forward)
|
(5,834)
|
(5,834)
|
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
(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
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other - Security deposits decreased (increased)
Net investing cash flows
1.14 Total operating and investing cash flows
|
-
-
- (318)
-
-
-
-
-
-
-
-
-
|
-
-
- (318)
-
-
-
-
-
-
-
-
-
|
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
(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
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other - Security deposits decreased (increased)
Net investing cash flows
1.14 Total operating and investing cash flows
|
(318)
|
(318)
|
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
(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
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other - Security deposits decreased (increased)
Net investing cash flows
1.14 Total operating and investing cash flows
|
(6,152)
|
(6,152)
|
Cash flows related to financing activities
1.15 Proceeds from issues of shares
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings - convertible loan notes
1.18 Repayment of borrowings - finance lease
1.19 Dividends paid
1.20 Other - Financial assets: Net proceeds/(Net payments) 1
Other - Share issue costs
Other - Convertible loan note issue costs
Other - Interest received
Other - Interest paid on borrowings (convertible notes) Other - Interest paid on borrowings (finance lease)
Net financing cash flows
|
-
-
339 (80)
-
-
- (59)
19 (138) (17)
|
-
-
339 (80)
-
-
- (59)
19 (138) (17)
|
Cash flows related to financing activities
1.15 Proceeds from issues of shares
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings - convertible loan notes
1.18 Repayment of borrowings - finance lease
1.19 Dividends paid
1.20 Other - Financial assets: Net proceeds/(Net payments) 1
Other - Share issue costs
Other - Convertible loan note issue costs
Other - Interest received
Other - Interest paid on borrowings (convertible notes) Other - Interest paid on borrowings (finance lease)
Net financing cash flows
|
64
|
64
|
Net increase (decrease) in cash held
1.21 Cash at beginning of quarter/year to date
1.22 Exchange rate adjustments on foreign currency cash balances
1.23 Cash at end of quarter
|
(6,088)
10,010
146
|
(6,088)
10,010
146
|
Net increase (decrease) in cash held
1.21 Cash at beginning of quarter/year to date
1.22 Exchange rate adjustments on foreign currency cash balances
1.23 Cash at end of quarter
|
4,068
|
4,068
|
1. The net proceeds from/(payments for) the disposal and purchase of the company's investments are at item 1.20
Ceramic Fuel Cells Limited - Quarterly Cash Flow Report for the quarter ended 30 September 2013 Page 2
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A'000
1.24 Aggregate amount of payments to the parties included in item 1.2 81
1.25 Aggregate amount of loans to the parties included in item 1.11 -
1.26 Explanation necessary for an understanding of the transactions
Item 1.24 - Directors' fees.
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
NIL
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 1026 paragraph 12.2).
3.1 Loan facilities
3.2 Credit standby arrangements
Ceramic Fuel Cells Limited - Quarterly Cash Flow Report for the quarter ended 30 September 2013 Page 3
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Acquisitions and disposals of business entities
5.1 Name of entity
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 with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ....................................... Date: [30] October 2013
Print name: Alasdair Locke
Director
Ceramic Fuel Cells Limited - Quarterly Cash Flow Report for the quarter ended 30 September 2013 Page 4
Notes
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.
6.2 - reconciliation of cash flows arising from operating 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 International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
Ceramic Fuel Cells Limited - Quarterly Cash Flow Report for the quarter ended 30 September 2013 Page 5