Ceramic Fuel Cells Regulatory News (CFU)

30 Oct 2006 07:01

Ceramic Fuel Cells Limited30 October 2006 30th October 2006 TRADING UPDATE FOR QUARTER ENDED 30 SEPTEMBER 2006 Ceramic Fuel Cells Limited ("CFCL") announces its trading update for the quarter ended 30 September 2006. FINANCIALS Quarterly Cash Flow Report Ceramic Fuel Cells Limited, (AIM / ASX: CFU) a world leading manufacturer ofsolid oxide fuel cells and provider of enabling technology for micro-combinedheat and power (m-CHP) units and distributed generation, has released its cashflow report for the quarter ended 30 September 2006. This is available on thecompany's website: www.cfcl.com.au and also as set out below. -ENDS- For further information please contact: Andrew Neilson +61 419 950 771Brendan Bilton +44 (0) 7798 554 191Ceramic Fuel Cells investor@cfcl.com.au Nick Denton / Sara Gelfand / Sarah Macleod +44 (0) 20 7357 9477Hogarth Partnership Aamir Quraishi / Charles Goodfellow +44 (0) 20 7569 9650Libertas Capital NOTES TO EDITORS About Ceramic Fuel Cells Limited Ceramic Fuel Cells Limited (CFCL, www.cfcl.com.au) is a world leader indeveloping solid oxide fuel cell (SOFC) technology which can provide reliable,energy efficient, high-quality, and low-emission electricity from widelyavailable natural gas and renewable fuels. CFCL is developing SOFC products forsmall-scale on-site micro combined heat and power (m-CHP) and distributedgeneration units that co-generate electricity and heat for domestic use. CFCL is now at an advanced stage of development, and is moving swiftly towardscommercialization. Since 1992, CFCL has developed its own fuel cells andcomplete fuel cell 'stacks', and has also succeeded in creating the highlyengineered "balance of plant" that surrounds the fuel cell stack and controlsthe inputs (fuel, air and water), outputs (heat and electricity), timing, andtemperature controls. CFCL is currently demonstrating prototype units in field trials with EWE (thefifth-largest German multi-service energy company) and Powerco (New Zealand'ssecond largest electricity and gas distribution company). In June 2006, CFCLsigned a contract with EWE to supply ten CFCL NetGenTM units for further fieldtrials as part of a collaborative project to develop commercial-ready m-CHPproducts for the European market. CFCL has extensive R&D, testing and manufacturing facilities in Melbourne,Australia. CFCL will build a fuel cell manufacturing facility in Europe, withplans to begin large scale production in 2008-09, making CFCL a leader inpreparing for volume manufacturing. The Company will also construct a plant inEurope to produce high quality ceramic powders, which are a key component ofsolid oxide fuel cells, using the Company's patented technology. The powderplant is scheduled to be commissioned in Q1 2007. With over 100 skilled staff and extensive patented technology (50 patents in 28patent 'families' to date), CFCL is pursuing partnerships for manufacture,production and use of its fuel cells in delivering electricity to the domesticEuropean and Asian markets. CFCL was formed in 1992 by Australia's CSIRO (Commonwealth Science and IndustryResearch Organisation) and a consortium of leading energy and industrialcompanies. A UK subsidiary was established in 2004. The Company is based inMelbourne, Australia and Chester, United Kingdom. It is publicly listed on boththe AIM Stock Exchange, London (floated March 2006), and on the Australian StockExchange (floated July 2004). The company's code on both exchanges is CFU. Rule 4.7B Appendix 4C Quarterly report for entities admitted on the basis of commitments Introduced 31/3/2000. Amended 30/9/2001 Name of entityCERAMIC FUEL CELLS LIMITED ABN Quarter ended ("current quarter")------------------- ------------------82 055 736 671 30 SEPTEMBER 2006------------------- ------------------ Consolidated statement of cash flows ------------ ------------Cash flows related to operating activities Current quarter Year to date $A'000 (3 months) $A'000 ------------ ------------ 1.1 Receipts from customers 130 130 1.2 Payments for (a) staff costs 1 (2,467) (2,467) (b) advertising and marketing 2 (224) (224) (c) research and development 3 (776) (776) (d) leased assets - - (e) other working capital (824) (824) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 1,002 1,002 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - Net GST Received/(Paid) 161 161 - Export Market Development Grant received - - - Sundry income received - - ------------ ------------ Net operating cash flows (2,998) (2,998) ----- ----------------------- ------------ ------------ Notes 1. 'Staff costs' includes all company labour and associated headcountcosts, and therefore incorporates all Research & Development (R&D) staff, Sales& Marketing (S&M) staff and General & Administrative (G&A) staff. 2. 'Advertising and marketing' excludes all S&M staff costs (as per note 1above). 3. 'Research and development' costs includes all R&D costs as defined inNote 1(e) to the Financial Statements for the year ended 30 June 2006, butexcludes all R&D staff costs (as per note 1 above). ------ ---------------------- ------------ ------------ Current quarter Year to date $A'000 (3 months) $A'000 ------ ---------------------- ------------ ------------ 1.8 Net operating cash flows (carried (2,998) (2,998) ------ forward) ------------ ------------ ---------------------- Cash flows related to investing activities 1.9 Payment for acquisition of: (a)businesses (item 5) - - (b)equity investments - - (c)intellectual property - - (d)physical non-current assets (1,413) (1,413) (e)other non-current assets - - 1.10 Proceeds from disposal of: (a)businesses (item 5) - - (b)equity investments - - (c)intellectual property - - (d)physical non-current assets - - (e)other non-current assets - - 1.11 Loans to other entities - - 1.12 Loans repaid by other entities - - 1.13 Other - - ------------ ------------ Net investing cash flows (1,413) (1,413) ------------ ------------ 1.14 Total operating and investing cash flows (4,411) (4,411) ------ ---------------------- ------------ ------------ Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, - - etc. 1.16 Proceeds from sale of forfeited shares - - 1.17 Proceeds from borrowings - - 1.18 Repayment of borrowings - - 1.19 Dividends paid - - ------------ ------------ 1.20 Other - Financial assets: Net proceeds/ (3,095) (3,095) (Net payments) Other - Share issue costs - - ------------ ------------ Net financing cash flows (3,095) (3,095) ------ ---------------------- ------------ ------------ Net increase (decrease) in cash held (7,506) (7,506) 1.21 Cash at beginning of quarter/year to date* 11,367 11,367 1.22 Exchange rate adjustments on foreign (81) (81) currency cash balances ------------ ------------ 1.23 Cash at end of quarter 3,780 3,780 ------ ---------------------- ------------ ------------ • Under Australian equivalents to International Financial ReportingStandards (AIFRS), the company's investments are no longer classified as cash orcash equivalents, but as available-for-sale financial assets. Hence 'Cash atbeginning of quarter/year to date' has been reduced by $74,749k (being the valueof investments as at 30 June 2006) to reflect this revised definition. The netproceeds/(payments) from the disposal and purchase of the company's investmentsare to be found at item 1.20 above. Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities ------------- Current quarter $A'000 ------------- 1.24 Aggregate amount of payments to the parties included in 33 item 1.2 ------------- 1.25 Aggregate amount of loans to the parties included in - item 1.11 -------------------------------- ------------- 1.26 Explanation necessary for an understanding of the transactions ------------------------------------------- Directors' Fees Cash payments for directors' fees totalled $33k for the quarter and for the year to date. ------------------------------------------- Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows -------------------------------------------- NIL -------------------------------------------- 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest -------------------------------------------- NIL -------------------------------------------- Financing facilities available Add notes as necessary for an understanding of the position. (See AASB 1026paragraph 12.2). ------------- ------------- Amount available Amount used $A'000 $A'000 ------------- ------------- 3.1 Loan facilities - - ------------- ------------- 3.2 Credit standby arrangements - - ----- ----------------------- ------------- ------------- Reconciliation of cash ------------------------- ------------ -------------Reconciliation of cash at the end of the Current quarter Previous quarter *quarter (as shown in the consolidatedstatement of cash flows) to the relateditems in the accounts is as follows. $A'000 $A'000------------------------- ------------ ------------- 4.1 Cash on hand and at bank 595 159 ------------ ------------- 4.2 Deposits at call 3,001 11,025 ------------ ------------- 4.3 Bank overdraft - - ------------ ------------- 4.4 Other - Security deposits 184 183------------------------- ------------ ------------- Total: cash at end of quarter (item 3,780 11,367 1.23) ------------------------- ------------ ------------- * Refer above comment regarding investments now being excluded from thedefinition of cash and cash equivalents. Acquisitions and disposals of business entities ----------------- ------------------ Acquisitions Disposals (Item 1.9(a)) (Item 1.10(a)) ----------------- ------------------ 5.1 Name of entity Not applicable Not applicable ----------------- ------------------ 5.2 Place of incorporation or registration ----------------- ------------------ 5.3 Consideration for acquisition or disposal ----------------- ------------------ 5.4 Total net assets ----------------- ------------------ 5.5 Nature of business ----------------- ------------------ Compliance statement 1 This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Corporations Act (except to the extentthat information is not required because of note 2) or other standardsacceptable to ASX. 2 This statement does give a true and fair view of the matters disclosed. Sign here: .................................. Date: 30 October 2006 Print name: David Carruthers Director Notes 1. The quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flowsapply to this report except for the paragraphs of the Standard set out below. • 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss• 9.2 - itemised disclosure relating to acquisitions• 9.4 - itemised disclosure relating to disposals• 12.1(a) - policy for classification of cash items• 12.3 - disclosure of restrictions on use of cash• 13.1 - comparative information 3. Accounting Standards. ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock Exchange