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LONDON (Alliance News) - Fuel cell system developer Proton Power Systems PLC Tuesday said it hopes to take advantage of interest in China, despite its losses increasing in the first half, as it was hurt by a fair value loss on embedded derivatives
The company reported a total loss of GBP6.4 million for the six months to June 30, compared with a GBP3.0 million loss a year earlier, as the company posted a GBP3.8 million fair value loss on embedded derivatives compared with just GBP191,000 in the previous year.
With the exception of the fair value loss on the embedded derivative, the loss was in line with the management expectations, it said.
Revenue, however, rose 60% to GBP869,000 from GBP543,000.
Proton said it has continued to improve the operational performance of is fuel cell stack portfolio with significant reduction in cost per kilowatt for its PM400 fuel cell stack.
Additionally, it said it is seeing significant interest for all its solutions in a number of market segments, and it now plans to expand volume manufacturing with industrial partners based on licensing agreements. Proton said it is currently in discussion with an Asia-based original equipment manufacturer.
Looking ahead, the group said it hopes to take advantage of significant interest in China which is developing rapidly as a market for fuel cell applications, due to damaging pollution and air quality problems in major cities like Beijing.
"Continuous cost reductions, driving down the cost per kilowatt will be our platform for growth and the success of our technology in the markets around the world," Chairman Ian Peden said in a statement.
"Together with our strategic partnership plan, we are on-track to be a leading global fuel cell, fuel cell hybrid system, fuel cell/UPS and wind/solar power storage system provider," he added.
Proton Power Systems shares were quoted down 0.7% at 7.20 pence Tuesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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