EuroSite Power Reports Third Quarter 2017 Financial Performance
UK operation continues to deliver positive EBITDA cash flow
“The steps we took earlier this year to diversify our offer paid dividends in the third quarter as we saw strong revenue growth off the back of recent turnkey project wins. At the same time, we continued to enjoy underlying growth in energy revenue because of our larger operating fleet."

MACCLESFIELD, UK, Nov. 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 third quarter revenues increased to $736,474 compared to $459,114 for the third quarter in 2016, an improvement of 60%. Gross profit excluding depreciation and impairment for the third quarter 2017 also increased to $285,261 compared to $150,603 for the same period last year, driven both by the improvement in revenue and, gross margin excluding depreciation which increased from 32.8% for the third quarter 2016 to 38.7% for the same quarter this year. Operating EBITDA cash flow at the Company’s UK subsidiary was also positive for the third quarter 2017.

“Despite the challenges normally associated with lower energy demand throughout the summer months the UK operating company still managed to deliver a cash positive position.” said Elias Samaras, Chief Executive Officer, when commenting on the Company’s results. “The consolidated results for the first nine months of the year now show a slight negative cash position but with the winter months ahead and some recent sales successes I am confident we can achieve our primary goal of being cash positive for the year”. 

Speaking about the third quarter results Paul Hamblyn, Managing Director of the UK operating company added “The steps we took earlier this year to diversify our offer paid dividends in the third quarter as we saw strong revenue growth off the back of recent turnkey project wins. At the same time, we continued to enjoy underlying growth in energy revenue because of our larger operating fleet. Importantly our business development activity also scored success with two new contract wins”.    

Strong revenue growth, positive operating cash flow and additional new contract wins

  • Total revenue increased by 60% to $736,474 (£562,675) for the third quarter 2017 as compared to $459,114 (£349,615) for the same period last year

  • Energy revenue increased by 40.8% to $646,590 (£494,003) for the quarter ending September 30, 2017 as compared to $459,114 (£349,615) for the third quarter 2016

  • Turnkey revenue increased 100% to $85,957 ($65,672) for the third quarter of 2017 because of preliminary works being completed on two turnkey projects

  • UK operating subsidiary achieved a positive EBITDA cash flow for the quarter totalling £3,890 ($5,092) compared to a negative cash flow of £128,046 ($168,150) in Q3 2016. This represents a swing of 103% or £131,936 ($173,242). Overall the cumulative EBITDA cash position for the first 9 months of 2017 is £130,023 ($170,185) compared to a loss of £253,789 ($333,278) in 2016

  • The Company achieved an adjusted Non-GAAP EBITDA loss for the nine month period to September 30, 2017 of $14,630 compared to a loss of $846,818 for the same period in 2016

  • Liquidity and cash position at September 30, 2017 continues to remain strong at $3,914,995

  • GAAP diluted loss per share (EPS) was $0.00 for the third quarter of 2017 as compared to a loss of $0.01 for the same period in 2016

  • The Company secured orders for a 100kW turnkey project for the Salt Ayre Leisure Centre in Lancaster and a further On-Site Utility solution for the Celtic Manor Resort in Newport

Financial and operational performance

  • Overall gross profit including depreciation for Q3 2017 increased to $129,313 compared to $38,842 for the same period in 2016, an improvement of 233%

  • Overall gross margin including depreciation improved to 17.6% for the period, compared with 8.5% for the same period of 2016, an increase of 9.1 percentage points

  • Overall gross profit excluding depreciation and impairment for the third quarter 2017 increased to $285,261 compared to $150,603 in the comparable prior year period, an 89% improvement

  • Overall gross margin excluding depreciation and impairment improved for Q3 2017 to 38.7% as compared to 32.8% in the same period of 2016, a 5.9 percentage point improvement

  • Gross margin excluding depreciation on energy revenue increased from 32.8% for the third quarter 2016 to 41.1% for the same period this year

  • Income statement includes a $20,401 impairment charge related to termination of the Dunstable Leisure Centre contract.A further impairment charge of at least $20,401 will appear in the fourth quarter results with the CHP unit being returned to inventory to provide spares

  • Total energy production increased by 33% to 10,009 MWh for the period ended September 30, 2017 as compared to the same period in 2016

  • Total energy production for the first nine month of 2017 was 36,061 MWh a 34% improvement on the same period last year. This represents 95% of the entire energy production achieved during the whole of 2016

  • Brought into operation the 70kW system at Newmarket Leisure Centre, the third system under contract to Abbeycroft Leisure

  • Operational fleet capacity at September 30, 2017 was 34 systems at 32 sites totalling 3,903kW. This compares to 32 systems at 30 sites totalling 3,509kW at the end of September 2016

  • Temporarily decommissioned the 101kW solution installed at Wentworth Clubhouse while the building undergoes refurbishment. This system will remain off until April 2018 with the decommissioned period being added to the overall contract duration

  • Current contracted backlog 9 systems, 1,295kW

  • Successfully trialled new, more robust engine for the Company’s fleet of Tecogen CHP units. Manufactured by Origin Engines and sourced in cooperation with Tecogen, these new engines are specifically engineered for industrial use and will be rolled out across the Company’s fleet as part of our normal planned replacement programme

  • Agreed with TEDOM to replace under warranty the Liebherr engine at The Dome, Doncaster with a new MAN engine in order to improve long-term reliability and enhance energy production

    New business development

  • Closed new On-Ste Utility agreement with the Celtic Manor Resort for a 125kW system to be installed at their main Golf Clubhouse. Once installed this will bring total capacity at the resort to 525kW and generate an additional $1,833,309 (£1,400,670) of revenue through the lifetime of the contract

  • Awarded contract by Unify Group to design, install and maintain the first of a number of schemes currently under negotiation. This 101kW CHP system will be installed at the Salt Ayre Lesire Centre in Lancaster and represents the Company’s second turnkey project valued at $242,896 (£185,576)

  • Sales pipeline continues to grow including a number within new sectors such as manufacturing and tertiary education

Outlook and risks

  • Overall outlook for fourth quarter remains strong due to financial and operational performance to date

  • The outlook for the performance of the operational fleet remains good but new start-ups are expected to slow due to extended equipment lead times and delays in achieving construction approvals for some projects

  • Turnkey project gross margin could come under pressure as resourcing constraints may require increased outsourcing to maintain delivery programmes

  • Overall the management continue to be confident of the UK operating company achieving a positive cash flow throughout 2017

  • UK government Enhanced Capital Allowance tax incentive expected to net £119,565 ($156,496) for year ending 2016 and further £32,126 ($42,049) for 2015 once tax returns have been filed prior to year-end

  • Further operational savings expected as a result of filing a Foreign Certificate of Withdrawal to the Commonwealth of Massachusetts. The Company continues to be incorporated in Delaware

  • Brexit remains a risk both in terms of general business confidence and inflationary pressure

  • In preliminary discussions to form a Joint Venture to exploit new opportunities in both Cyprus and Greece

  • 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 financial results and news are only published on the Company’s website ( 

The Company also aims to provide regular updates to investors. Normally published on around the 20th of each month these regular updates provide investors with a snapshot of the Company’s activities together with and news.  

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.

Source: EuroSIte Power Inc.


For further information: Dr Elias Samaras Chief Executive Officer +44 (0)844 693 2848

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