EuroSite Power Reports Second Quarter 2017 Financial Performance
In addition to continuing to build a positive cash position we have also closed new orders including two additional OSU contracts plus a capital sale project for a 410kW solution, our first such deal. We also commissioned a further system and strengthened our team.

Revenue and Gross Profit growth continues to deliver positive EBITDA cash flow

WALTHAM, Mass., Aug. 15, 2017 -- EuroSite Power Inc. (OTCPK: EUSP, the "Company") an On-Site Utility solutions provider, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and leisure centers in the United Kingdom (UK) and Europe, reported second quarter revenues increased to $793,658 compared to $640,437 for the second quarter in 2016, an improvement of 24%. Gross margin excluding depreciation also improved to 42.9% producing a gross profit excluding depreciation of $340,592, up from the 34.4% and $220,071 reported for the same period in 2016. Together this enabled the Company’s UK subsidiary to achieve a positive operating EBITDA cash flow for the second quarter running.

“The second quarter saw the UK operation consolidate the performance achieved in the first quarter” said Paul Hamblyn, Managing Director. “In addition to continuing to build a positive cash position we have also closed new orders including two additional OSU contracts plus a capital sale project for a 410kW solution, our first such deal. We also commissioned a further system and strengthened our team.”   

Commenting on the Company’s results Dr. Elias Samaras, Chief Executive Officer said “We continue to meet the goals we set ourselves for 2017. The measures taken last year to help improve margin together with bringing into operation the two larger systems at Doncaster Dome and Celtic Manor are now bearing fruit. The UK operating subsidiary continued its cash positive performance while the reduction in US corporate costs, resulting from deregistering our stock and other changes, all contributed to delivering a positive Non-GAAP adjusted EBITDA on consolidation of $45,627. To arrive at the start of the third quarter with a positive position means the outlook is good”.

Revenue growth, positive cash flow and eradication of convertible debt

  • Revenue increased by 24% to $793,658 (£619,915) for the second quarter as compared to $640,437 (£446,718) for quarter ended June 30, 2016. At functional GBP level revenues increased 39%, continuing the growth reported in the first quarter this year
  • The Company achieved an adjusted Non-GAAP EBITDA cash flow for the second quarter of 2017 of $45,627 compared to a loss of $246,890 for the same period in 2016
  • UK operating subsidiary achieved a positive EBITDA cash flow for the quarter totalling £77,269 ($98,758) compared to a negative cash flow of £80,476 ($102,856) in Q2 2016. This represents a swing of 196% or £157,745 ($201,614)
  • Repaid in full the final outstanding $300,000 convertible debenture

Financial and operational performance

  • Gross profit including depreciation for Q2 2017 increased to $187,012 compared to $103,345 for the same period in 2016, an improvement of 81%
  • Gross margin including depreciation improved to 23.6% for the period, compared with 16.1% for the same period of 2016, an increase of 7.5 percentage points
  • Gross profit excluding depreciation for the second quarter 2017 increased to $340,592 compared to $220,071 in the comparable prior year period, a 55% improvement
  • Gross margin excluding depreciation improved for Q2 2017 to 42.9% as compared to 34.4% in the same period of 2016, an 8.5 percentage point improvement
  • GAAP diluted loss per share (EPS) was $0.002 for the second quarter of 2017 as compared to a loss of $0.01 for the same period in 2016
  • Liquidity and cash position at June 30, 2017 remains strong at $3,876,949
  • Total energy production increased by 35% to 12,714 MWh for the period ended June 30, 2017 as compared to the same period in 2016
  • Total energy production for the first half of 2017 was 26,052 MWh a 34% improvement on the same period last year and equating to 68% of the entire energy production achieved during the whole of 2016
  • Decommissioned the 100kW system at Dunstable Leisure Center following the customer’s decision to redevelop the site and terminate the contract
  • Operational fleet capacity at June 30, 2017 was 34 systems at 31 sites totalling 3,934kW. This compares to 31 systems at 29 sites totalling 3,178kW at the end of June 2016
  • Current contracted backlog 8 systems, 1,139kW

New business development

  • Closed two On-Ste Utility agreements with Medway Council for systems at their Strood and Medway Park Leisure Centers. This will add a further 195kW to our fleet and generate around $3,169,575 (£2,479,910) of revenue through the lifetime of the contracts
  • Awarded contract by Guildford Borough Council to design, install and maintain a 410kW CHP system in England’s largest sport complex, Guildford Spectrum. This is our first capital sale project valued at $602,207 (£471,174)
  • New Head of Business Development started June 1, 2017
  • Expanded target sectors to include manufacturing and are developing new sales channels with both sales agents and strategic partners
  • Seeking partners to broaden offer and enhance cross selling opportunities to both new and existing customers


  • Management continue to have confidence in increased energy production, revenue growth and gross profit as a result of increased fleet size and improved availability
  • Underlying energy price changes are likely to help sustain improved gross margin
  • Weaker third quarter EBITDA cash flows expected due to impact of lower thermal demand during the summer
  • Outlook for fourth quarter now looks stronger due to performance to date and planned operational dates for newly won contracts
  • Management now more confident of UK operating company achieving a positive cash flow for the year
  • Brexit remains a risk both in terms of general business confidence and inflationary pressure
  • Acquisition strategy continues to identify targets

Future News Releases

The Company would like to remind investors that in order to simplify and streamline news provided all future financial results and news will only be published on the Company’s website ( 

The Company will also be providing regular monthly updates to investors. Starting in September and published on around the 20th of each month these regular updates will provide investors with a snapshot of the Company’s activities.  

Anyone wishing to receive notice of a news release should subscribe to the email alerts service provided within the Company’s investors pages (

Alternative Reporting Standard

The Company now files its financial statements under the Alternative Reporting Standard (ARS). Quarterly financial reports are prepared in accordance with US GAAP, are generally provided within 45 days of period end (90 days for fiscal year end results) and are reported to maintain the OTC Pink Limited Information tier.

Following corporate reorganisation and de-registration of the Company’s common stock, with effect from January 1, 2017 foreign exchange gains/losses are reported in the cumulative translation adjustment (CTA) account on the Company’s balance sheet. 

Fiscal year end financial reports for the operating company, EuroSite Power Limited are audited by a PCAOB registered firm and the Company provides current information for the purposes of SEC Rules 144(c)(2) and 10b-5 using the OTC Disclosure & News Service.

On-Site Utility

EuroSite Power sells the energy produced from an onsite energy system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility solution customers only pay for the energy produced by the system and receive a guaranteed discount rate on the price of the energy. All system capital, installation, operating expenses and support are paid by EuroSite Power.

About EuroSite Power

The Company provides institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by conventional energy suppliers – without any capital or start-up costs to the energy user. More information can be found at


This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company’s website and in financial statements held by OTC markets for the fiscal year ended December 31, 2016. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.


Investor Contact:                                                                                                                   Media Contact:
Dr Elias Samaras                                                                                                                     Paul Hamblyn
EuroSite Power Inc.                                                                                                                 EuroSite Power Inc.
+44 844 693 2848                                                                                                                    +44 7920 859 540                                                                             


Source: EuroSIte Power Inc.



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