1 May 2020 07:00
1 May 2020
Quadrise Fuels International plc
("Quadrise", "QFI", the "Company" and together with its subsidiaries the "Group")
Further Statement re Covid-19
Update on Business Development Activities and Funding Position
Following the adoption of proactive measures taken in early March 2020 to protect the Group's employees and business, QFI has continued to make progress in its business development and research activities.
When the Company announced its interim results on 30 March 2020, it was confirmed that initiatives to reduce costs had enabled the Company to extend its period of operation on current funds to 31 March 2021. The Company is now pleased to announce that a total of over £0.5m in cost savings and reduced financial commitments have been achieved, which will enable the Company to continue to operate through to mid Q2 2021, based on existing funds. This provides the Company with a significant cash runway before new funding is required.
Savings have been made through a variety of actions; reducing the overall costs of the board, consultant cost reductions, revisions to the office lease, and furloughing of certain members of staff. We are also seeking to access to other UK Government support schemes where this is appropriate.
Our equipment and MSAR® fuel for the first phase pilot plant trial in Morocco are now on site and the joint project team remains in regular contact to progress the second phase activities for the trials on the client's larger commercial units. When we can gain safe access to the site, we will be able to commence the pilot trial and further progress the FEED study. The expected successful outcome of the pilot trial, and submission of the FEED study, will release payment for phase 2 in advance of the commercial trial agreements.
We have received extensive information from the client in South America and the techno-economic studies are being finalised, prior to being shared with Freepoint Commodities and the client.
In the marine sector, discussions with the two scrubber-equipped major shipping companies are continuing, alongside our continued investigations into the physical bunker supply business with stakeholders.
In the Kingdom of Saudi Arabia, we are continuing to follow-up via Al Khafrah following the recent meeting in Riyadh at the Head Office of the power company. The next stage is a meeting with the management team from the western province where the trial would be held. Whilst our preference for this key meeting would be face to face, we are reviewing other alternatives with Al Khafrah to maintain momentum during Ramadan.
We remain in regular contact with our other clients and relevant agents, but at this stage there is nothing material to report on those activities beyond that disclosed in the interim results.
Quadrise's London office has been closed since mid-March, with all staff working efficiently from home. Using collaborative working systems adopted and used regularly since 2019. this transition has worked very smoothly for both internal meetings and meetings with clients and other stakeholders. Our research and operational support facility in Essex, ("QRF"), continues to operate as staff live locally, commute by car or foot, and can socially distance safely whilst working there. Emulsion production and testing at QRF continues to support business development, patent applications and general MSAR® research development and innovation initiatives.
Mike Kirk, Chairman of QFI, said:
"We are pleased that we have been able to deliver a material extension to our cash runway, which will now take us to mid Q2 2021. This provides us the opportunity to progress our business development opportunities in earnest for over one-year - an increase of around 5 months to that forecasted at the beginning of 2020.
Despite the current restrictions, we are continuing our activities to very good effect; with material progress in the second phase of work in Morocco; the techno-economic studies with the client in South America and discussions on multiple opportunities in the marine sector.
Although the oil market is significantly disrupted at this time, we do not believe our clients are basing their medium to long-term plans on the current pricing environment and so we remain confident of the opportunities to progress our projects to commercialisation, which will underpin any future funding needed in the period up to mid Q2 2021."
For additional information, please contact:
Quadrise Fuels International Plc +44 (0)20 7031 7321
Mike Kirk, Chairman
Jason Miles, Chief Executive Officer
Nominated Adviser
Cenkos Securities plc +44 (0)20 7397 8900
Ben Jeynes
Katy Birkin
Joint Brokers
Peel Hunt LLP +44 (0)20 7418 8900
Richard Crichton
David McKeown
Joint Brokers
Shore Capital Stockbrokers Limited +44 (0)20 7408 4090
Toby Gibbs
Fiona Conroy
Public & Investor Relations
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
Ntobeko Chidavaenzi
The information communicated within this announcement was deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 prior to the release of this announcement. Upon the publication of this announcement, this inside information is now considered to be in the public domain.