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98889 - In relatin to your 10.39 post I would refer you back to my 06.05 post where in relation to consultancy I said 'I use that term to include testing.' Therefore with all due respect referring to paid trials is on point.
Hi Stokey,
The discussion is about "Consultancy fees can/cannot cover operation cost". Paid trial is good for us, but this is not the topicthat we are talking here?
98889 - No I did not if you look at the Annual Report and Accounts for the year ending 2018 on page 4 under post ear end final bullet point it states there that they did paid trials. Just because PHE did not issue a RNS about it does not mean that there were no field trials or other work.
Ok, so for the h1 results in September 2019, you cannot say
" It is clear from that post that the consultancy services do NOT only refer to the PROTOS site but to work for other clients"
You mixed the "future income " with h1 2019 results.
So far, phe has only announced 400k ish from w2t , and even that, the payment may be in stages.
Announcement of further 10 sites of peel plus 24 domestic customets was made in August 2019? So i am not sure if the payment can arrive to phe before h1 2019.
Ok, so for the h1 results in September 2019, you cannot say
" It is clear from that post that the consultancy services do NOT only refer to the PROTOS site but to work for other clients"
You mixed the "future income " with h1 2019 results.
So far, phe has only announced 400k ish from w2t , and even that, the payment may be in stages.
Announcement of further 10 sites of peel plus 24 domestic customets was made in August 2019? So i am not sure if the payment can arrive to phe before h1 2019.
98889 - Whether consultancy work will show up in the H1 results depends on when they were recieved. Any income received before 30 June 2019 will show up in the results published in September. Otherwise they will show up in the year end results in June of next year.
Exactly as predicted, you will refer to consultancy income that is not protos.
I think you have got the timing mixed?
Consultancy income from not protos site, will notreflect in September. September next year, may be.
98889 - Thank you for your post of 18.23 yesterday. I would refer you to LongTerm74's post of 13.45 of Monday. It is clear from that post that the consultancy services do NOT only refer to the PROTOS site but to work for other clients. It is therefore possible that the consultancy fees, I use that term to include testing, will cover operational costs as there are 24 domestic customers and it is probable that some consultancy services ill be needed by most if not all of them.
Longterm74
I agree with your post at 13.45. it reflects my understanding of what DR said at the AGM. One item he confirmed was that the plant side of things would be modular but not containerised. Small point but one of importance regarding set-up.
Wolves
Hi Stokey,
Re: "the consultancy is supposed to cover operational costs. "
I hope for the same, but i don't think it will be to the year end.
1, the design for a little site like protos, 4 months max, or from my experience, 3months top.
2, it cannot be to the year end or else that means the protos design cannot be completed before year end. Then how are we going to start construction.
3, if i were the client and this company takes 6or7months to do the consultancy work, ... they will not win the second contract
If anyone say, but there are 10 others site from peel that perl pay consultancy fees. This will not be the case too as the fees hasnot landed to phe yet. Phe so far has the contract (fees) only for protos , around 400k ?
Phe may make profit from the consultancy cost of 4 months and that 400k may be able to cover6 to 8 months ofoperation cost - this may happen.
98889 - Further to your 15.31 post I do not recall any specific period being mentioned but would expect to be referring to year end position. The H1 results in September would give an indication of whether this would be the case.
the consultancy is supposed to cover operational costs.
Is this "operation costs" refers to a particular period, or was it full financial year plus other costs
LongTerm74 - I see that your assessment in your 13.45 post is inline with my thinking. As I understand what DR said at the AGM the consultancy is supposed to cover operational costs. I wonder what the market has priced in?
The H1 results will be much improved from previous but it is extremely unlikely it will show positive cash flow. David was very clear with his presentations/communications that PHE will be cash flow positive when they have 3 units up and running. My calculations show they need about 2.5 units up and running to be cash flow positive.
I'm expecting to see significant reduction in ongoing cost. This, in part, due to Keith leaving the business (a package worth £240k) and for a reduction in costs for events, etc. David has made it very clear on several occasions that he has been on a massive cost cutting exercise.
I'm expecting to see revenue booked in H1 (although it is possible some or all of it could creep into H2) from the consultancy and engineering efforts. This will be from the consultancy work David mentioned from Spain and from the work on the first site at Protos where W2T have a contract to pay PHE for consultancy and engineering (see RNS). There could also be income booked in H1 from the testing of potential feed stocks for the two dozen or so potential units to be deployed. H1 may also show tax credits for research & development although these may only show in the full annual accounts.
I'm very pleased with David's style of leadership and his focus of getting the first unit delivered. The accounts may take a little bit of time to show the true result.
Hopefully, positive
PHE will publish the interim results for the 2019 FY towards the end of September. If they show breakeven or better then we might see a spike in the share price. DR has been saying that PHE will wash its face. However, if they show a loss then the SP might take a hit. What is everyone else expecting from the H1 result?