Member Info for swazers

Why Powerhouse Energy? Leading the market– localised energy recovery and industrial gas production from wastes.

Pipeline of prospects in Australasia and SE Asia. Engsolve clients include:• Blue Chip Energy and commodity companies• Independent technology developers• Project developers• multiple sectors.

Business Strategy.

Continuous and re-occurring revenues from the provision of services to external clients.Investment in capital project

development through SPVs Share sale of SPV whole or part to provide development premium dividends from capital project SPVoperations Participation in operations as appropriate.

PHE has tested a range of wastes and holds all results in its proprietary PERMS model(Powerhouse Energy RapidModelling system)

PHE’s knowhow lies in the understanding of how waste feedstocks behave, and how to apply feed rates, residence time and temperature ranges to optimize production of the end products.

Due to the high temperatures involved, the material is converted into a gas and solid residues, which are carbon-rich

drop out and are recovered.

The Technology. DMG® is an advanced conversion technology (ACT) during which feedstock is heated in the absence of oxygen. The material cannot burn, its molecular structure is broken down.

Powerhouse is ideally placed to serve and benefit from the global demand-led areas of opportunity. Energy market - $1978 billion by2030 Pollution reduction – EU Action Plan: 'Towards Zero Pollution for Air, Water and Soil' Climate change - $23 trillion by2030.

What does #PHE do?

Offers its innovative Distributed Modular Generation (DMG®) product platform for the advanced thermal treatment of waste streams, converting them to synthesis gas, and can be adapted for various applications around the world Design non-recyclable waste regeneration facilities to produce electricity, heat, and gases such as hydrogen and methane whilst removing carbon from the system Provides associated engineering and testing services and customer support DMG® is trademarked and there are patents both approved and pending Operates an R&D facility based at the University of Chester’s EnergyCentre at Thornton, Cheshire Powerhouse Technology Centre at Bridgend to open in early 2024

Operating Gearing Ratio: 0.65 With a moderately high operating gearing ratio, PHE is reliant on generating more consistent

revenue to cover fixed operating costs.

Equity Ratio: 0.55The company’s equity ratio indicates a stable financial position, with a solid asset base that is primarily funded through equity

Leverage Ratio (Total Debt/EBITDA): NegativeAs the company remains unprofitable, the leverage ratio remains negative. However, this is typical for a company still in the commercialization phase.

Interest Coverage Ratio: 1.8 The company’s interest coverage ratio remains low, indicating a need for more robust cash flow

generation to comfortably meet its financial obligations.

What's Going on Under the Hood? Debt-to-Equity Ratio: 0.45 Powerhouse Energy has maintained a conservative level of debt, which positions the company well for future growth but underscores the need for equity or external funding to sustain operations.

Sentiment Analysis: Analyst Ratings: Limited analyst coverage reflects uncertainty around the stock, though recent revenue generation provides some optimism. Market Sentiment: Investor sentiment is mixed, balancing the potential of PHE’s technology with concerns over cash burn and project execution.

Strategic Developments: The company has made progress in advancing its DMG® technology, but challenges in scaling and commercializing the technology remain. PHE has secured partnerships and continues to work on funding its ongoing projects, though financial sustainability is a critical concern.

Valuation Metrics: Price-to-Book Ratio: 2.8, indicating that the stock is trading at a premium relative to its book value, likely reflecting investor expectations of future growth.

Profit: The company achieved a gross profit of £98.2k in the first half of 2024, though profitability is still distant as operational costs remain high. Cash Position: PHE's cash reserves fell to £2.7 million as of June 2024, down from £ 4.9 million in June 2023, reflecting ongoing investments in technology and infrastructure.

The recent half-year report highlighted the company’s first recorded revenues from its ongoing projects, a promising step toward commercial viability.

While early-stage revenue and strategic partnerships have provided a sense of optimism around PHE, investor sentiment is cautious. Concerns about the company’s ability to scale and execute its strategy have kept the stock in a volatile range. However, with the growing global focus on sustainable energy, the company’s long-term potential remains attractive to speculative investors.