(Alliance News) - Quadrise Fuels International PLC said Monday its interim loss widened due to higher administrative costs and a one-off warrant charge.
Quadrise develops MSAR, which it promotes as a low-cost alternative to heavy fuel oil.
For the six months tot the end of December, Quadrise reported a pretax loss of GBP3.1 million, widened from GBP1.7 million the same period the year before.
This was due to higher administration expenses of GBP1.1 million from GBP739,000, and a charge of GBP881,000, as 40.2 million share warrants were issued to three different investors over the period.
Quadrise does not currently produce revenue.
During the period, Quadrise signed an agreement with a Morocco-based unnamed chemicals and mining group to conduct a pilot trial for MSAR, as well as provide engineering studies for larger trials in one of the client's facilities.
Although all work and testing for the trial have been completed, and equipment is in place in Morocco, the trial has been delayed due to the ongoing Covid-19 pandemic.
To make up for this, Quadrise has brought forward the engineering studies for the next phases of the overall programme, however payment for the studies is dependent on the success of the pilot trial.
"Quadrise continued to progress a range of business development and project opportunities in the period, underlining the advantages of our strategy of pursuing a diversified range of projects. We are particularly excited by the progress made in Morocco where we have an agreement to undertake a pilot trial which could lead to paid-for engineering studies, with commercial revenues expected to follow the successful conclusion of these trials," said Chair Mike Kirk.
"We have already taken action to mitigate the impact of the Covid-19 restrictions imposed by the client and we and the client look forward to commencing the on-site activities as soon as it is safe for us to do so," Kirk added.
Shares in Quadrise Fuels International were down 4.5% at 1.60 pence on Monday afternoon in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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