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(Alliance News) - Powerhouse Energy Group PLC on Wednesday said its loss narrowed in the first half on equity investment gains and a loan reversal, despite revenue falling to nothing.
The Bingley, England-based hydrogen-from-waste-plastic producer also said Keith Riley has decided to step down as acting chief executive with immediate effect due to "personal reasons".
In the six months that ended June 30, pretax loss narrowed to GBP576,574 from GBP899,367 a year earlier.
This was despite revenue falling to nothing from GBP352,713, and incurring new engineering project costs of GBP368,154 in the half-year period.
It recorded a fair value gain on equity investment of GBP282,150 and a loan reversal of GBP453,017, both from nothing a year earlier, while administrative expenses narrowed to GBP979,432 from GBP1.1 million.
"The profit and loss statement in this half year report does not, in my view, reflect the true trading potential of the company. Following the acquisition of the Protos SPV, the revenues reported last year in servicing the Protos project have now been internalised, and so are reported as a cost. Meanwhile the acquisition of Engsolve occurred late in the period, so minimal benefit from Engsolve revenues is recognised in these accounts," said Non-Executive Chair Tony Gardner-Hillman.
"There is much work to be done. We need to ensure the integration of Engsolve, and PHE must grow its presence in the provision of engineering services as well getting other commercial projects underway. The changes implemented during the first half of this year will enable this to happen. We look forward to updating investors on our progress as we continue through the year."
Cash at bank on June 30 stood at GBP4.9 million from GBP7.5 million a year earlier.
Meanwhile, Chief Operating Officer Paul Emmitt has agreed to become acting CEO, replacing the departing Riley, who will remain as a consultant to ensure an orderly transition during the recruitment process for a permanent CEO.
Powerhouse Energy said a further announcement will be made in "due course as the progress progresses".
"Under his full-time leadership as acting CEO the company has made considerable progress and the foundations of a sustainable and prosperous future have been laid," said Non-Executive Chair Gardner-Hillman.
"We are very pleased that Keith will remain with us as a consultant so that we retain access to his immense knowledge of the company and its business sector."
Shares in Powerhouse Energy were down 4.6% to 0.55 pence each in London on Wednesday afternoon.
By Greg Rosenvinge, Alliance News reporter
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