Proton Motor Power : Annual Report of Proton Motor Power Systems PLC 2022

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Annual Report & Financial Statements Registered number 05700614

31 December 2022

Contents

PART I - Contents

Strategy and information

Chairman's statement	2
Strategic report	4
Directors' report	8
Shareholder information	12
PART II - Governance and Corporate Social
Responsibility
Board of Directors	14
Corporate Governance and Corporate
Social Responsibility statement	15
Nominations committee report	20
Remuneration committee report	21
Audit and internal control report	23
PART III - Financial Statements
Independent auditors' report to the
members of Proton Motor Power
Systems plc	24
Consolidated income statement and
statement of comprehensive income	27
Group and Company statements of
financial position	29
Group and Company statements of
changes in equity	31
Group and Company statements of cash
flows	33
Notes to the consolidated financial
statements	35

OUR VISION

Proton Motor Fuel Cell GmbH is a pioneer in hydrogen technology with 20 years of experience. We have set ourselves the goal of designing, manufacturing and assembling sustainable energy solutions for the world of tomorrow in the mobile, maritime, stationary and rail transport sectors, as well as continuously developing them further.

With our Cleantech Competence, we enable our customers to develop energy-sustainable products and use modern technologies.

OUR PROMISE

Our focus in the production of hydrogen fuel cell technologies is on sustainable production to contribute to a better and greener future.

Thus, we aim to improve our understanding of the climate impact of our products and operations, reduce our carbon footprint for products and businesses, and lower our waste and energy consumption. We are constantly doing our best to reduce pollution by recycling, reusing and extending the life of our products and materials.

Fuel Cells

Proton Motor Power Systems PLC ANNUAL REPORT AND ACCOUNTS 2022

HIGHLIGHTS 



KEY STATISTICS

£2.653m

Total order intake 2022

£2.659m

Sales value production backlog

18%

Further investment in technical area, in staff & infrastructure

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+10%

Growth in order intake derived from the	Overview	FRONT END
stationary segment
New lease
agreement signed
providing substantially more production	Report
and development space ahead of
increasing demand in hydrogen fuel	Strategic
market segments

Governance

Financial Statements

Additional Information

ACCOUNTS 2022

1

Chairman's statement 



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EDPI 1143

We are pleased to report our results for the year ended 31 December 2022.

OVERVIEW:

Proton Motor Power Systems plc ("Proton Motor") has made further progress this year in proving its technology, building up capacity and sales pipeline. We have strengthened our organisation to be able to deliver complete power supply solutions. Whilst industry and consumer demand for alternative sources of energy continues, the period under review was impacted by the effects of the Russian invasion

of Ukraine. Proton Motor´s technology offer continues to mature to remain aligned with this growing demand and supports the continuing commercialisation process of the group.

HIGHLIGHTS:

• Total order intake in 2022 of £2,653k (2021: £2,800k), having started the year with five new orders in January - February 2022, we saw a quieter summer period as a result of the Ukraine invasion.
• At the end of April 2023 the production backlog had a sales value of £2,659k. (2021: £3,200k). The fulfilment of this backlog will result in deliveries of varying configurations of fuel cell engines and also service maintenance charges to customers both in 2023 and 2024.
• 59% of order intake in 2022 (2021: 49%) was derived from the stationary segment, with other orders primarily from the mobile segment. Notable orders announced throughout the year included:
  o Further order from E-Trucks Europe for nine HyRange 43 hydrogen fuel cell engines, together with the corresponding maintenance agreement.
  o A significant order from a German customer for fifteen S8 stationary fuel cell engines.
• Sales in 2022 were £2,088k (2021: £2,771k), representing an annual change of -25%.
• The operating loss in 2022 was £10,542k vs. £9,121k in 2021 (excluding the effect of embedded derivative). The increased loss resulted principally from further investment in the technical development area, in staff and infrastructure
• Cash burn from operating activities has increased during the period from £8,726k in 2021 to £9,207k, in-line with increased investment in staff and technology development and in preparation for our move

to new premises. Cash flow is the Group's key financial performance target and our objective is to achieve positive cash flow in the shortest time possible. Current contracts are quoted with up-front payments reducing reliance on working capital as we continue

to invest in our manufacturing capability. The cash position as of 31 December 2022 was £2,579k (31 December 2021: £2,152k)

2

• A fifteen-year lease agreement has been signed for modern premises permitting for enhanced and efficient production throughflows to secure space to substantially expand its manufacturing, testing and development capacity. The new premises comprise over 13,500 square metres of useable space, of which over 10,500 square metres can be dedicated to production, testing and development with the remainder of the space being devoted to office usage. This represents a seven fold increase in the amount of space available for production when compared to the Company´s current premises. The rights and obligations of the lease agreement transit to Proton in April 2023.
• Following the year end, existing loan facilities have been increased by a further €14,500k to ensure operational and investment financing into 2024 with a view to accelerating the investment programme in the face of increasing demand.
• In 2022 Proton´s fuel cell engine HyRange® won the Prize for Energy 2022 from the federal state of Hesse.

POST YEAR END

• Order intake for the 5 months ended May 2023: £2,552k (5 months
  ended May 2022: £1,517k)

At the end of May 2023, the production backlog had a sales value of £4,317k. (May 2022: £3,200k). The fulfilment of this backlog will result in deliveries of varying configurations of fuel cell systems and also service maintenance charges to customers both in 2023 and 2024.

OUTLOOK

In the year ahead we are focused on further progressing the maturity of the group technology offer, ramping up production capacity and exploiting the current potential sales pipeline.

I personally thank all our customers who believe in us, our team of committed employees and our shareholders who have the vision to invest in our mission.

Helmut Gierse
Non-Executive Chairman	Date: 19 June 2023

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Overview

FRONTEND

Strategic Report

Governance

Financial Statements

Additional Information

ACCOUNTS 2022

3