21 September 2016
Intelligent Energy Holdings plc
Strategy update and Notification of Analyst and Investor event
Intelligent Energy ('IE' or the "Company"), the energy technology group, is pleased to provide the following strategy update.
Since the appointment of Martin Bloom as Group Chief Executive Officer in June 2016, Martin has both carried out an extensive review to identify the right strategy to take the Company forward, and started implementing that strategy.
The objective is to grow shareholder value and the Company believes the most appropriate way to achieve this goal is by simplifying and commercialising the business and driving revenue growth by focusing on near term sales opportunities.
The core UK business is now focused on Air Cooled (AC) fuel cell commercial opportunities with a power requirement of sub 1W to 20kW. It is the intention to grow the business from the restructured base in FY 16/17 and reduce cash burn from the current run rates over the course of the forthcoming financial year.
Four important developments have been carried out as part of the new strategy to focus IE on commercial outcomes:
1. Instigation of a much more focused approach. The implementation of a change of culture across the business and the creation of a more focused executive decision making body will speed the process from the laboratory to the market.
2. Creation of a new Product Delivery function. This will accelerate the market deployment of the Company's technologies and take those technologies which are closest to market to the point of manufacture.
3. Simplification of the Company systems. Over the last few months IE has been reviewing its processes and systems with a view to streamlining and simplifying the way the newly resized business operates. Going forward, the Company will adhere to a continuous improvement programme to ensure it remains operationally aligned to delivering the new strategy.
4. Strengthening of the Commercial team. This has included the recruitment of people with a different skill set and a track record in delivery, and also includes increasing its resources in Japan and China which are potentially lucrative markets.
The Company will move to a strategy of selling its core stack products and systems to customers, while only co-developing projects under a JDA model in selective cases where it makes sense to do so. The Company believes there is demand for its fuel cell stacks and modules and the Company will target markets where its technology can be incorporated into commercial products.
Analyst and investor event
IE is today hosting an event for analysts and investors at its headquarters in Loughborough.
The event will consist of both presentations by the executive and operational management and demonstrations of IE's technology. The presentations will be led by Group Chief Executive Officer Martin Bloom who will present on the new strategy of the business.
A copy of the presentation being delivered will be available shortly on the IE website. No new material financial information will be disclosed at the event.
A substantial amount of work has been carried out to largely complete the business restructuring announced in April 2016, and to identify the appropriate strategy to take IE forward following the difficult times to date.
While there is a great deal of work required to successfully execute the strategy, the Board believes that the strategy outlined today is the best available approach to grow shareholder value.
Intelligent Energy Holdings plc
Martin Bloom, Group Chief Executive Officer
John Maguire, Chief Financial Officer
+44(0) 1509 271 271
Stifel Nicolaus Europe Limited
+44(0) 207 710 7600
James Macey White
+44(0) 207 353 4200
This information is provided by RNS